Full text of Commercial and Financial Chronicle : January 24, 1963, Vol. 197, No. 6232, Section 1

View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

THE

Volume 197

AND

LEADING

New York

Number 6232

INFORMATIVE

MOST

PUBLICATION

THE

FINANCIAL

FIELD

7, N. Y., Thursday, January 24, 1963

ESTABLISHED

Price $1.50

1839

In 2 Sections

Copy

Section 1

—

EDITORIAL;

constructing their own preview of the year, 1963,
astute businessmen will, we believe, first of all

most

seek

some

rational conclusion about, what the. coming

ised in

Washington.

In the

name

our usual custom, THE 'CHRONICLE features in
today's ANNUAL REVIEW AND. OUTLOOK ISSUE the
individual opmions of the country's leading industrialists,

come

hankersand

Presideht^has

financiers; also government officials; as
probable trend of\. business in the current year.
These forecasts, written especially for THE CHRONICLE,

during the

provide the reader with' up4o4he-minute official views

of promoting business

^activity, employment and "growth" the

forward with proposals of expenditures,

coming fiscal year which exceed any in our history, in¬

wards

even

billion

planned that

way

of the

one

huge

prospective

The

years.

the World War years.

$12

deficit

was,

the indicated

statements

course

during the

of business in all industries.

LUTHER

HON.

demand for the nation's

course,

and

consumers

While

government.

certain road to

improvement

surpluses in the future

years

justment,

Any 'thought that all this obvious unorthodoxy might
troublesome

our

payments, and • thus

itures

our

cow

of the great

jump over the

thetical tables

average

ices

things in store for American business would

hurry to bring their funds here for investment.
are

ment

tures

presented to show how much of the

available

him

(Continued

on page

continued

over

For

At the govern¬

Luther H.

appear

some

move

resources.

'I,

The level

unemployment is much too high, and the trend

of business investment in
been

plant and equipment has

disappointing.

J The current increase in economic activity stems

hWe lev¬

primarily from growing

(Continued

on page

26)

State,

Municipal
and Public

Housing,

State and

Municipal

Lester, Ryons & Co.

Securities
'(ASC,s"

Underwriters

1
,

NewVork

Securities

BOND DEPARTMENT

San

MEMBERS

MIDWEST STOCK
P. O. Box 710, New York 8, N. Y.

EXCHAN6Ej£z^

FIRST NATIONAL CITY BANK
L

•

770-2661

135 So. La Salle Street

Y» -{

■■

£•;

;

... •

Inquiries Invited
r-ti-

Bond Dept. Teletype: 571-0830 4

Net Active Markets Maintained
To Dealers, Banks and

T. L. Watson & Co.

Southern f
'
* ;/--~ ' '

—

Pershing A Ce.

7-'7 Members

' '7-/7

New York Stock Exchange

Inquiries Invited

7\7.;7

Commission Orders Executed On All
Canadian Exchanges

;

BANK

IVERSIFIED

maintaining

are

market In

prices in Canadian funds.

was

basis

distributed
of

this

CALIFORNIA

one

The stock

November

Shell

Shell
five Shell Oil.

CANADIAN DEPARTMENT

stock either at net New York prices or
at

shareholders

American Stock Exchange

MANHATTAN

Class A Common Shares

Canadian Securities
Block

THE

Shell Oil Co. of Canada,

Brokers

ESTABLISHED 1832

Oil

Co*

1
on

the

Canada for each

Teletype 212-571-1213
25

BROAD STREET

company

California Securitiee

Correspondent

Chicago 3, III. FRanklin 2-1166

";v

Municipal Bond Division

77.777,7777

New York

<g>o(Uhu>e4t

Diego,' Santa- Anaj Santa Monica,

• ^

TWX: 212-571-1414

first

11,

dale, Hollywood, Long Beach, Oceanside,
Pasadena, Pomona, Redlands, Riverside,

■.v>; CHEMICAL BANK NEW YORK TRUST COMPANY 7 ;

770-2541

So. Hope Street, Los Angeles
,

Corporate & Municipal
,

628

7 777.: 77 ■ 77 7 Cv California 7 -v. 7:7777 7|;7
Members New York Stock Exchange 777
Associate Member American Stock Exchange
•,
•.
Members Pacific Coast Exchange
'
'•
I;• f. ' j
J; • •
•,•,
5, 777•
Offices in Corona del Mar, Encino, Glen-

Distributors * Dealers

Chemical

9ISECT

VIRES TO MONTREAL

Goodbody

NEW YORK 4, N. Y.

MEMBERS
BRIDGEPORT

•

PERTH AMBOY

NEW YORK

Dqmituox Securities

AND TORONTO

nomic growth has not been satisfactory.

Hodges

U. S. Government,

phones:

time now, the overall pace of

ANNUAL REVIEW AND OUTLOOK ISSUE
Public

1961.

nation's economic

level, defense expendi¬
continued to rise -— as did .-'state and local

outlays

But, while the

basically strong.

The American economy should continue to

long-term

Business investment

at record levels, and

upward in 1963 but at a slower pace than in 1
and at a level well below full employment of the

outlays, buttressed by increasing expenditures for
highway construction..

75)

now

displayed some additional momentum in
period, the rate of advance was still

whole

the previous

its

economy

the fall

goods expend¬

over

than 1%.

stantially less than the improvement for 1962

model

new

activity is

economy

showing much

not

upward trend.

Hypo¬

man's income heretofore going into taxes will

henceforth

our

quarter, but spending on serv¬

and in anticipation

moon,

were

improvement

foreigners would be delighted to

the

little

Economic

expenditures

Nondurable

cars.

standing in the international world, is dismissed

with the assertion that
see

balance

only

being bolstered by heavy

1961

over

And most of this advance has been in the

physical volume of output, since prices have risen

re¬

was

purchases

This will bring the year's total

annual rate.

$554 billion, representing an increase

of 7%.

•

after j seasonal ad¬
little changed.

production,

immediately

Consumption

July,

from

National Product in the last

flecting the fact that industrial

were

payrolls

rise,

continued to be

•

private industry showed little

budgetary surpluses in the future., Those
are to come; so the theory goes,
of the greatly increased activity in American

the

In general, how¬

income

total

rebuilding.

inventory policy

quarter of 1962 is expected to exceed $560 billion

the main stimulus coming from

ing higher, with

need

The figure for Gross

output, while not requiring full capacity, was mov¬

"was'

reason

and in

ever; business
conservative.

At the close of last year,

and is according to the Keynesian New

industry and trade in the months and

the excess in steel stocks

disappeared, and retail stocks of autos were

low

HODGES

Secretary of Commerce

Frontiersmen, therefore not only harmless but the only

summer

In the final quarter,

begin herewith—

had

Eisenhower

later

the

The

And almost boast¬
fully it seems, the Administration envisages a deficit
that, according even to its optimists, will be second only
to the then-regarded as "awesome" deficiency of up¬
cluding

eled off in the final quarter, and the most recently
reported'plans point to a slight dip in expenditures u
in the first quarter' of 1963, after seasonal adjust¬
ment, Housing outlays; in the. closing, months of
1962 averaged somewhat lower than in the third
quarter, although nonfarm private housing starts
late in the year were higher than they had been

As,is

or would bring, without the benefit
of the "stimulation" and general "assistance" now prom¬

bring,

jnonths thay

Grporatioti

Co.

STOCK' EXCHANGE

2 BROADWAY

1 NORTH LA SALLE ST.

NEW YORK

CHICAGO

Exchange Place, New York 5, H. Y.

Teletype 571-0880
:

Area Code 212 ;

Electronic Industry
MUNICIPAL BOND DEPARTMENT

WHitehaU 4-8161
\

BANK OF AMERICA
N.T.AS.A.
SAN FRANCISCO

•

LOS ANGELES

The Commercial and Financial Chronicle
2

The Security I Like Best...

Brokers, Dealers only

For Banks,

This
an

Pacific Intermountain

"HANSEATIC"

Associate Member
Stock

American

>,,

parts,

York 4

1231, 32, 33, 34

f
Chicago
•
Los Angeles
Philadelphia
•
San Francisco

Boston

Wire Service

Wide

in April, of

emphasis

Although

Ltd.

N.Y.

61 Broadway,

Telephone: BOwling Creep 9-2895
This

not

orders

offer

for

solicitation

acquisitions

ness, depreciation necessarily genesti- erates a sizab evolume of cash,
$110 million (in. amounting; ra the case of P. I E.

out: of

million

trai^ed

total

mated

National

1962

Carloading

Members

and

continually under

•

eranted

£*£« ru|

and

Carloading,
this year,

million in

expected to
gains

revenue

possibly

20%

some

interesting to note,

before

that

joining the P. I. E. family,

National Carloading had

Co!

Exchange
Exchange

Stock
Stock

212 571-1425

HAnover 2-0700

Birmingham, Ala.

Mobile, Ala.
Direct wires to

'■

branch offices

our

;.v,; ijr&

■

V:;.'

'{■ j

JAPANESE

SECURITIES

MDUMwMlg}
Securities Co., Ltd.

compiled

X NEW YORK OFFICE:

g^ounUmin

149 Broadway, New York 6, N.Y.
-*

~.~y.

Telephone: BEekman 3-3622-3

•

ordination in matching des'^n for,.

detrex chemical

over

million anticipated in 1962.

the $33
It

too,

impressive

York

American

New Orleans, La. -

20 cents.- Moreover, w i t h
a bathroom ana bearoom.
marked gain in earnings expected ;; One accounting practice which
in ^.the'eui-reiit ^ear^; another inX^pfbals.Jto me is the use of John
crease in disbursements is a dis- P. Maguire & JCo,'for handling of
tinct possibility. / ! ,/ >
Its accdijhts receivable thus elimi-^
V. 'In the meantime, the present nating the necessity for the comindicated annual rate of 80 cents pany- to - operate an' expensive
provides a 5% return. Considerar credit and collection department,
tion is being given to a listing of Credit Tisks for this:-reason are:
the stock on the New York Stock reduced to a minimum and cash

token, National

same

V5':';I(

C 19 Rector St., New York 6, N. Y.

mented with a year end extra of

million

$10

only

By the

score

.........,,

from perhaps $12 million

1962

1960.

$16

nearly

;;

New

v: Members

vision 6f the Fieidcrest peo-

to a healthy $5.8 million m 1961.

for

•"

Steiner, Rouse &

year),,they are expected No new major financing is anticiIn fact, man- pated in 1963. Dividends, recently
to
grow rapidly.
anv, form
is
not allowed.
The
agement believes that revenues increased to 15, cents quarterly
y
.
.
from Pacific and Atlantic could from
12% cents, were supple,, ^***7 «;ap»oneerxn the coclimb

—f'v)>.<'.

Franchises for Karastan car-

full

the

*!'•. £•"" ji'X

have contributed only about

for

particular securities

any

rev-

■

.■'*"/

anrule

excel-

with

field

from these two

$45

freight

potentials.

1963,

The Nomura Securities Co.,

:;f^idgley, Analyst, Mason Brothv,ers' Oakland, Calif. (Page 2)

With

Van V.**

Fiddcrest Mills, Inc.

Bought—Sold—Quoted

1962,-the company has placed considerable

cluding

Monthly Stock
Digest, and otif other reports
that give you a pretty clear
picture of the Japanese :
economy as a whole.

' ;

Shippers in 1959, and

National Carloading

may

our

gains appear^x

in recent , yearsdeading mail order and retail
have beert very modest and only . chains, including Sears Roebuck,
av:small improvement in ^these/Montgomery^ ;Ward0 and
J. • C.,
ratios can make for a substantial 1 Pentiey. The company also mantiimprovement in earnings.
facttfre$ electric' blanket ''shells''
At the close of -1961, current for 'others,'*"fnctudin^v'
assets Amounted to $10.0 million house-,
^.
- '
against $7.9 million- of current.
since its organization in 1953
liabilities.. The 1.7 million'.comVJFieldcrest has" held tight reigns
mon
shares outstanding
(23% nn itQ mArpbflndi«inX onflpfc!
A*
closely held) is preceded by close
its domestics will be*sold
to $12 million in long terra debt. .;exclus'ively b
one
store Jn an
In the nature of the trucking busi- area
Xjthe sales personnel
profit- margins

-With the acquisition of Pacific

enues

IN JAPAN

share last year.

proaching $2 a share in 1963.i-In: of Fieldcrest and St. Marys. In
thi& connection it is well to\ notek addition,,;' the"company; sells ac
The that in the nature of the business, broad - line of such domestics to

even

lent

for

'■

«'•'

truck

nominally- to revenues.

forwarding,!;a

Opportunities Unlimited

Further sttrsictrvG

to be in prospect for 1963.

combined,
contribute' only-

but

and Atlantic

Telephone: 363-2000

World.

City

(

(Page 2)

;

additional cost savings in the bur-

distributes

and

activities-

Exchange

60 Broad St., New

maintains

motor

;

Teletype: 212-571

the

the Pacific Coast.

also

these

•

■

Analyst,

York

carried throughout

division

leasing
.

New

freight

are

company

; : CORPORATION :

haps $1.70

TJnftedP States but -predorrti-*

nantly

forwarding geoning freight forwarding, busi-'
■
■
in ness and in the context of a faterms of motor freight revenues ivorable operating economy, it is
bath rugs and; shower curtains,
and sixth in freight forwarding, possible to envisage earnings ap- marketed under their trade names

the

Established 1920

Kordich,

r u n o

Hirsch

-ranking "r fourth

Operations

Hanseatic

, %

position

and

industries,

Express Co«

currently occupies

company

important

trucking

Remember, when it's

•

earnings;

saw

climb to $1.24 in 196i, and to pet-

Co.. New York City
Hirsch &

Analyst,

nationwide facilities.

Call

rates,

higher

with

Louisiana Securities

;

highly experienced trading
organization and extensive
wire system offers you

Over-the-Counter.

Alabama &

Participants and

±
x
.
_'
..Pacific Iiitermountain Express Co.

V —B
BRUNO KORDICII

in the Overthe-Counter field, our large

Thursday, January 24, 1963

Their Selections

security.

participate and give their reasons for favoring a particular
K

Over 40 years

Write

advisory field from all sections of the country

in the investment and

Experience Pays...

Week's

This
Forum

in which, each week, a different group of experts

A continuous forum

"Over-ihe-Counter"

'fa

(290)

i industries
BOUGHT

—

SOLD

—

QUOTED

Exchange.
The Astock _is t now - balances. are held at minimum
traded in the Over-the-Counter adequate levels.
Members
However. P. I. E. is applying its , Market.
■
" •
Midwest Stock Exchange
^
Of the 2,270,000 shares of comL
Detroit
Stock Exchange
own business techniques in moves
Market prices for Pacific Inter- mon stock outstanding I am ad1051 Penobscot Building
to revitalize this enterprise, ;Sig- mountain
froin^$jj) vised that Apioskeag Company of
nificant success is already evident last, year but are stilL unde?, the Bostoh
y ; DETROIT 26, MICH.
~ 7
owns-d,560,000 shares and
962-3855
313 222-5012
since National: Carloading Js eur- -peaks, of the previous'years When
Fur^h(^management:i advisory
Branch Office
Bay City, Mich.;
rently operating in the black and earnings were lower and the out- seryft;es to-Fietdcresf at an atiTOalshould be; an important contrib- look not-.nearly, as
>^ht.; .T h e.
,f/Ioth of 4 %-Df company's
utor to earnings m coming years
Jm^ net (sales, ; An additional -, 125,400
Profit margins from the freight estimated 1963 earnings assume
.
manaeement
forwarding, operations ,*s h o u I d added significance; in light of the
T .
•
Mi, ,
.
■■w'v',
widen-: perceptibly
with > the relatively -liberal appraisals ac'
growth in volume." Tn large mdas-'corded: many other trucking and : ®8, ,60(),
1 1
hands ofure, this reflects the fact that the freight forwarding operations. In others besides management.
.
company now plays a dual role as conclusion, the common ; stock of y Under aggressive management,
LAMB0RN & CO., Inc.
a common carrier and as a freight 'Pacific
Intermountain is ^ recom- sales have increased from $64.9
99
WALL STREET;
forwarder, and the rapid expan- -mended-as an attractive specula- million in 1957 -to $77.1 million
NEW YORK 5, N. Y.
sion of the latter phase
of the ^ve vehicle for. capital enhance- in .1961, and have had a further
business is permitting important ment providing at the same time a
15% increase in first half of 1962.
a

distinctly

with losses

operating record

poor

M0RELAND & CO.

reported consistently,

;

fWlif..

UuvvU

•

APPEAL
PRINTING CO., INC.
St., New York 6, N. Y.

" <

Telephone: WOrth 4-3033
74th

J889—Our

Year—1963

Talcott's

better; joint

through
Even

profit

now,

The

value

of Talcott's

freight forwarding

about

Service to American business and

from

of client Sales volume processed

annually
billion

dollar

stantial

well

now

mart.

over

A very

the

sub¬

part of this growth has

resulted from referrals of custom¬
ers

by Investment Men who desire
assist

these

customers

growth or financing problems. We
are

always ready fo cooperate in

any way.

1962.

All

freight

chor-o

iry

share in

cents

1 qr9

1962

Talcott

offides

Snd

subsidiaries

m
principal cities in the
States, Canada and Puerto Rico

Analyst,
?

than

;

fairly
over

strong
a

reflecting

partly

quisitions.

Its

revenue

period

series

earnings

years,

ac¬

earnings 'are

justifies
The

why

opinion,

•

record,

endorsement,

1.13
DIgby 4-2727

company's

prices

connected
opera-

certain kinds of domes-

prices

for carpet wools were the princi-

;

tic blankets and increased

issue

history

costs

pal causes for^ lower earnings in

dates

The current com-; I960.; In the first half of 1962,
in fact, quite erratic.
However •pany was organized in 1953 to however, earnings were 54 cents
considerable
progress
has beenltake
overs the Fieldcrest Mills;compared with 23 cents in the
demonstrated since the poor earn- division of Marshall Field, Inc.
f 1961 like period. Normally about
ings
performance witnessed
in
The company manufactures a 60% of the company's sales and
1960, when earnings plummeted broad range of household' textile} earnings come in the second half
to $0.61 a share, as a result of products,
consisting of regular °f tbe yeaT.' Therefore, conservaheavy
expenses
of Integrating' and, electric
blankets, : towels, >tive estimates place the full 1962
freight forwarding activities into ? sheets, bedspreads, ivoven rugs results between $1.30-$1.40 per
has" beCTi

Tndiflerent"

operations

solicitation

bae^ 60

The

years.

„

offer to buy,

any

as an

-1

offer

share.-- ;

also

including

sell,

security referred to herein.)

dividend basis of 70 cents a share
:
-

National

Bureau
Established 1913

Incorporated

The stock is now on an annual

coordinated

fashions

bath

circumstances to he construed

The^eompany

carpets.

styles and markets

together! line

X*
no

and

revamp-f and

generally. J

(This is under

one

Refined.— Liquid

—

Exports—Imports—Futures

0.70

I960

1961

with relocation of certain

reasons,

the

Raw

,0.84

10 tions, reduction of manufacturers'

around

two

SUGAR

$0.63

fact its stock

currently available

en¬

these

been:-"

1.25
'

times

joyed

merchandiser plus the

;

during

have

^r:

Quahty;of this long estab-

lished manufacturer of high style-v. Non-recurring
is

growth

per

adjusted,

Oakland, Californm

•

years,

Y.VMIDGLEYy>f- V'1957--_-_—--±_L
Mason Brothers, v!i X /
11958

Fieldcres) Mj||

cents

than

has

Intermountain

" .VAN

could

to better

benefits of this program,

located

-vVV 4,:":

♦

earnings

told,

forwarding

Earnings

satisfactory dividend return,

from

share in 1963. ,611

Pacific

ing

Other

;

amount

may

this year,

the overall business and

United

margins

conceivably climb from
a

industry is reflected in the growth

2.2%

1.6%

Financing

use

equipment, terminals and sales

force.

SERVICE t

■!.

savings

billion dollar
»

—

s^nt^V^le^

130 Cedar

•

showing a return of around 5%.
It is traded in the .Over-theCounter Market.

Over-the-Counter Quotations
Services for 49 Years
46 Front Street, New York
CHICAGO

4, N. Y.

SAN FRANCISCO

Number 6232

197

Volume

The Commercial and Financial Chronicle

(291)

CONTENTS
24, 1963

Thursday, January

B.S.
; Articles
By Robert lis Johnson,** Director. ofResearch, Paine, WebberA
\ .'\

£--i

'■

i;;

••

.•-.«•;?*. > »*

.> VV.

C*2:

V',

■-*

Recently, the Dow..- Jones; Indus-f ? dual investors are selling." Then
trial Average Has, hovered around when the • public
hegin^s. buying,

*WE MAKE MORE'

' V'V

\Vhy theStockMarket Rise arid Optimism for This

650.

This

less' stock

approximately; 85

below its recorcl closing the institutions ale; stilL. buyirfg? 2
high of 734.91
'
^
(2) There's been a substantial^
wimiKiiiianiiiniiiiiiiiiinillfiiriU'ifiii)1
.".V
<:' i--T:"

;A points
\

W •

i in

?ont£.Dec?;^i8£
1961;

;

reduction

Follow¬

ing the easing

uninsured

ically,
the

mand f

!; 1 gained

Robert b. Johnson

abbutj

points

time, sirice we've

■

this extent
In

this

seen

long

far

investors.

The public has

approached re-entry
ket with some

"The Wall Street Journal"

ever,

observed

recently

tion with which I

(an

observa-

hearUly agree):

However, if

investors

dual
•;

may

tion.

there's

f volume

•

nomic

of- very

favorable

significance: I've
,

Cent

In addi-

noticed

trading. markets,

There's

another

significant

with

market: there

are

has

aW.

the

DELHI TAYLOR

a ; rather
realistic to

should get

v v

equities immediately available

;

REVIEW
.

THE TjURN OF THE YEAR

Starting

1970 87

.an

annual rata of 6%.

ing

the

stocks

by institutional investors..

Thev

And,

now

For

development

the

example,
have

plans

uninsured

shown

are

stage,

pension

steady

in-

in their stock purchases.

crease

buyers

AND

In the SECOND

found

J.F.ReiIIy&Co.,Inc;

drafting- today's

tracts, there

labor

con-

increasing ten-

Of today's

issue will be

every

sion

bought by uninsured pen.

advanced

plans

.million to $2 billion.

figures
The

provided

possibility

from

$900

(These

are

"'the" SEC.)

squeeze

the supply of stocks appears rea-

sonable

(1)

Tax

aver-

Electronic

Electronic Int'l Cap.;; Ltd.

;_„j:

pecially

pension

the

primarily buyers.
keep

growing,

Notes_l_^-_-__-i_____—-

News About Banks and

Securities Now in Registration--—-—

Prospective

(3) since the second quarter o{
1962,

prices

become

Security

...

Salesman's

(es-

funds)

are

As the funds

generally

they

——————

The

COMMERCIAL and

i v

;

Diredt Wires to

Cleveland

;

Los Angeles;

San Francisco

St. Louis

Washington

9
6

-—2

.-112

About 25% - of the total petrochemical business (Jersey and
Shell are leaders in this field),
(6) Financial strength. In re-

Reg. U. S. Patent Office

WILLIAM B. DANA COMPANY, PUBLISHER

' (5) Diversification. Many comPani^s have boosted, their; margins;
£oing into petr.o-chemicals—

on page

J' }1 •.

FINANCIAL CHRONICLE

Published Twice. Weekly

dec

Continued

^ " I! 1,1^''

<*) Increased efficiency of
operat.on Labor costs,^as a perc.enJ?Se of avenues, have been

keep buying—even when indivi-

••

Exchange Place, N. Y.

Philadelphia

Corher.;2---i2—-—18

State of Trade and Industry (The)
Tax-Exempt Bond Market-—- .—2
Washington arid You

Chicago

Offerings-—-——2—-108

Security

Teletype 212 571-0610'
;

-—-101

Security I Like. Best (Tbe)2——--—-w—-22——

(price instability has. been

have

4 '

Governments i:-22w—^.19
Securities---^—i—23

io% annually.

firnl[

■

Public

sMackie, Inc.
:

foreign countries has increased by

>•

HA 2-9000

———

Singer, Bean.

■'

Bankers——i 22——— 18

Ohservationsr;-^«-_.i__—^2-2-2-—

?.'

_110

—

Capital

• •,,

Reporter
Utility

Denver

Control Data

Mutual.Funds*.'A22U;M2'2-v2»24.--2,-*-AW-A»'ii*-■- 22

Our

•—

V,;V-%

(Editorial) -1

Indications of Current Business Activity2-2i.---—100
Market.
2 arid You2,<The)-i2»222r^2l^22^
;b?;

petroleum ;demand; fn '

Chicago

—•

Marrud Inc.
f,

Reductions"

NSTA

YOV

From Washington Ahead: of the News^——
-

'Los Angeles ;

(Doming Events in the; Investment •Fiejd(-v^v>^^2.i.U2.2
Commentary.' 21-2™
2
.w- 2
16
Dealer-Broker Investment Recommendations-^222
8
Einzig: -'Possible World-Wide Effect of U. S.
;<r

(Accord-

•

the New York Stock

Bank and Insurance Stocks_^„_

Chicago
r'

1 f

Dl 4-4970

•

Connecting Wires*

New York

stock and* bond* issue in

As We See It..^

25 Park place, New York 7,

CLAUDE

N. Y.

WILLIAM DANA
<

'■f-

-'"•Mr

•

BEIBERT, Treasurer
;

Thursday,

Utilities

GEORGE J. MORRISSEY, Editor

January

24,

1963
(.J,,1 v-,-2'.

>-,r •••-•-

Southern Gulf

REctor 2-9570 to 9570

SEIBERT, President.

the oil industry now accounts for

the basis of:

Institutional investors

Direct

Regular Features

gfe systems has already; been dis-' ^

...

stocks

Exchange during 1962.

denwttf Use pensions as a fnnge, one of the
major' contributing
benefit/ Thus, the-voiume of new
forces
behind
investor • disennioney flowing into these funds
chantment with oil stocks.)
has increased substantially. For
:
.

example, between 1956 and 1961,

Broadway, N. Y. 8
208 S. LaSalle St.,

SECTION

which dealings occurred

Petroleum^ De£artihferit,.

counted.)

INC.

^il ''*'V'-cl'!'V^VS >1 -i'f' 1't

page

usual tabular record of the high and low

our

prices, by months, of

major impact of the compact
and the extension of natural

car

of -today?s ANNUAL
OUTLOOK ISSUE,;we present the
cover

Government,' Industry and
regarding the outlook for business in 1963.

Finance

additional institutional

.v.

CAPITAL

Manhattan^

to * Ihe * Chase

Bank's

increasing

-|| TELEX,
•

;opinions• of leaders in

/(2)1 Consumption an^ the

age

.».(

UNITED NUCLEAR

{;

2 55
1—2 55

•

\■

World has increased at

for trading. Why? Because of the

absorption

'' ■'...

*>,«,

to; Be

continued to increase earnings—

to; the ;

relative scarcity

•

FLORIDA GAS

there could be

-'"ri

1963 Economy ■
Roger Babson 53

BUSINESS AND FINANCE SPEAKS AFTER

de-

indications that

Bearish Outlook

ELECTRONICS INTL

..previous-high point-bri "the
might be exceeded'in 1963.; '

point I think: history; •
respect

(1) Leading oil companies, have

re-

whenever

volume

declined,

Lumpkin 12
1963

Al-

despite pessimistic forecasts of a
clined. But, when prices increased few years ago. In fact, profit^ in
trading volume also increased.
: 1962 probably were; the highest in
prices

Pierce

stocks are
s^m^.pf their-" •
former broad appeal. Why? Here
are s^x possible reasons: t
j

eco-

JEL

between

525,;

recently. A point of

news

Telephone: WHitehall 4-655}

Morris Schapiro- Expects Faster Earnings
Growth;
For! California Banks__--_-L_;»2L«__i_J_v-:_i2_-lli

offer better-than-average investhient opportunities for 1963. One
°f my personal fayorites.^^he.^^
petroleum indu^try.: Many oil

increasing

been; an

Harold Schreder."Sees* 1,060 D-j Average by

range"

There are several .industry
groups which, in my opinion, may

First, the easing of the Cuban
:

69 WALL STREET, NEW YQRK

;

Why has the market gone up?
us.

;

^i;Marcus;;'Nadler4_-j^2-I2--2—2;>22--—2--i—'77

I would, think

become much

crisis relieved all of

F&VDrahIevBriDkirig^6ut!|^^

DJIA

aggressive in their buying."

Slower, Says Chase Manhattan Bank^_i _2
;<P^tee.2.XM^ULhattan Bank

public

such

tax cut this year,

"When this fact is more, generally

recognized by1 the public, indivi-

and

encompasses,
broad range, it seems

the

West Europe's. Economic Growth Rate

;

mean

735

geetion
me

1961 and the

admlttedjy,

though>

the mar-

apprehension. How-

• •

Obsohte Securities Dept^

1962—i.e., in terms, ot tte

appro'xiraateiy

buymg has been by inslitu-

tional

Prospects_„_______——Reuben E. Slesinger 25
Basis for

de-

yeah could

this would

DJIA,

the

2 J-

Consumer Is Not at Fault for Sluggish

satisfy

the

net
let'seller.

CO.,Tnc.22>rTra U, Co.bleigh

TheoretV

BRIDQE PARTNER!

Recession and Subsequent

R ec o very -—2-

Several technicians sugges't that

l0w 0f

short time.

major

;

Prospects'for

•

funds

investors',

between the high of

rise of

thus

recovery

the market this

been

sucnt a

*.,

•

it s

order

equities,

for

must be

k e t; re-;

mar

100

then,

institutional

publicly of-

fered during that period.,

ap¬

trading

I- sessions,

issues

stock

new

THAN YOUR

t
-t.

■

Vcsl 12^.'121-1
' Ted;M. • Levine • 10
v
Improving Quality; Earnings and Stock Price
;
Trend-.-.
-—-—,—*M... Richard. Sussjhan 10

$1,2> biUiom' Of
pension

;

Brutal Competition Faces Area Developers in 1963

Ji nearly four times the $600 million

proximately
25

the

bought $1.1 billion. Together, this

unusually
rapid ~ recov-

e ry.

CRAZY BIDS

•

Mergers for Portfolio Investment'
* c* * :
' Hans • Jacobson"

Montgomery Ward 35

ijfar?V»,»*•• A• • .v' r
issues
brought ■;

example,

bought

a n

;

new

For

stocks,

late/ in
October, the

rparket staged
v-

panies

crisis
'

market.

■ i

first half of 1962, investment com¬

Cuban

the

»*'.->

'
r

•

'it

Railroad

Timing

available, because

yearv---j--^T^„i..v»ci^»2TR(obert'B. Johnsop

and News

1' i^Jacksow&'Curtis,'New-YorkC&y l'-: vi'

S-'-'+ic

J-,-1

Every Thursday (general news and advertising issue) and every
Monday
(complete
statistical
issue — market
quotation ' records,
corporation news, bank clearings, state and city news, etc.). Other
v

Office: 135 South La Salle St., Chicago 3,

111. (Phone STate 2-0613),

;

rights reserved. Reproduction in whole or in part
written permission Is strictly prohibited.

without

For many year$ toe
have

specialized in

Second class postage paid at New York,

PREFERRED STOCKS

2Z
United

other

Founded 1868

SUBSCRIPTION RATES

MONDAY AND THURSDAY EDITIONS (104 issues per year)
In

Union

Spencer Trusk & Co.

-2

States, U.

per year; in Dominion
countries $87.00 per year.
v
.....

r'<THURSDAY EDITION ONLY (52 issues
.In

members of Pan American
of Canada $83.00 per year;

S. Possessions and

$80.00

per

;

United States, U. S. Possessions and members of Pan American
$20.00 per year; in Dominion of Canada $21.50 per year;
countries $23.50 per year.

;

BROAD

ST., NEW YORK 4, N. Y.

2
Bank

and

OTHER PUBLICATIONS

Quotation

Record

Postage extra).

•

■

—

Monthly,

$45.00

-•
t

TELETYPE 212-5714)785

Note—On

account

remittances

Albany

Boston

Nashville

Newark

Chicago

Schenectady

INCORPORATED

other

New York Stock Exchangs

TELEPHONE HAnover 24300

•

Union

Members

WM V. FRAHKEL t CO.

year)

Glens Falls
Worcester

made

for

the

foreign

in New York

fluctuations

subscriptions

funds.

and

>
the

per

rate

year

categories

comparison

with $2.88 for 1961.

all

service.

management
net

think

drug

and American Stock

appear

different

quite

31, earned $1.83 vs. $1.70 on sales
of nearly $3.5 billion — up more

years

for

—

combines

are

Members New York Stock

business

Sears Roebuck: For the
months* period ended Oct.

(a)
nine

Abbott

(a)

•/.

companies ' in

major

Order

reasons:

growth

1962,

two

Mail

attractive

out¬

than the "widows

ophans" issue of

possible that the
be increased

may

closing
prospective earnings.
some of the smaller; less-profit¬
pects for 1963 and beyond.
able stores and opening newer,
Among
the
more
attractive
(a) Citizens Utilities, nation¬
companies in this group, I would
larger stores. However, there ap¬
wide in its geographical scope,
include:

achieved

of the

one

declines

age

secondary offering
*

the

broader area of utility
largest percent:-; stocks
generally, there are several
all • industry issues
which, to me, represent
groups.
At present, they're sell¬
unusually
attractive investment
ing at levels which appear to me
opportunities. There are two com¬
t<> be reasonable and .attractive
panies in particular that I think
with respect both to current and
offer especially attractive pros¬
fered

earnings. This provides for taxes

and

company today

decline, ethical drug stocks suf¬

(2) The probability of additionlosses in foreign exchange—

This,

third reason for optimism with

respect to drug companies.

and

has

rate

lites—and this makes AT&T look

at $5.80

gether J With

(a) duPont: This is one of

the market price in

—

year.

The

in communications satel¬

ago.

ulative

earnings growth.

well

and

basis, Plough, Inc., ap¬
improved products, to- especially in Latin America.
pears interesting
and I would
effective cost con(3) The Revenue Act of 1962
trols, leading chemical companies win affect undistributed foreign estimate, earned last year about
$1.35, as compared with $1.20 for
should be able to show additional
new

Tele¬

,«v-

•,-y

AT&T

electronics

the

that,

some

have

those

ex-

i
latter first, in
summary:
(D There's been a marked
slowdown in the number of new
drugs introduced, as a result of
the more critical appraisal of new
drug applications by the FDA
(and, secondarily, the substantial
additional cost of the extra paperwork involved)*

long-term

there was greater price stability which, together with economies of larger volume, produced
probable gains of between 10%

whether it may

has

Lrf'flobr a^tte^lattCT YirstC01In

was

uptrend, they've been more volatile than

have

whether

reve-

earnings have

definite

American

standing advances in the fields of

insur¬

look at it realistically,

Now,

$18.4 billion in 1950 and $4.3 bilmaintained

ance,

probably

JWos^and^Cons for Drug Stocks

approximately
$33
billion,
as
compared
with
approximately
lion in 1939. While

technological advances

course,
-

(a)

concerning

point and in

fact

reluctant to share my enthusiasm
for drug companies. Nevertheless,

growth. Volume last year

competence: I think Cyanamid, at cial Security, or just what form

which I feel there

nearly unbroken record of

im¬

we may

medical

and

we'll

the

portunities this year.
For more
than 20 years, this group has had
nue

individually

government

sig-

op-

half that

was

these levels, may be Undervalued; it may take, I don't know:
But
I think it unwise to ignore the
in view of its growth potential,

indus-

be excellent investment

may

country.

additional

that,

°£ the companies in this group
been less clear and, as a resut'
o£ my associates are

trial group in

Here

50%. Of

another

industry in terms of earnings

1961. It is quite

phone and General Telephone.

135

by health

this

ago

years

number.

too, is indicative of management

of 4%.

are

year.

about

are

plans

ceeded the increase in sales. This,

ih^L956. Of particu-

excess

there

we'll

significance to investors look-

Chemicals

people

million people covered

ing

yield in

million

some

exceed

* A Thir^S^ustrial group that I
for above - average, income^ like *is the^Drug, Industry/- Now I
shares of Jersey ait preseht f«:icei?^r^^nize ;'thlSS?'Ci th&r/jpast; ■ two

lar

its

multiples

this

are

previous record high of $809 million achieved

investor

ice consistently has outperformed

are,

in each

the

results,

illustration

from these

profit contributions

the

share. For

full year, it is possible that
earnings not only surpassed 1961

com¬

expan¬

confidence, Arizona Public Serv¬

adding at the rate of

—

believed

net income equaled
or

communication

growing by leaps and

are

volume,

For the first nine months

basis.

for

and

introduction

phone techniques, by means

which

sion).

com¬

we've

single

growth" utilities in Texas equaled

dividend

$1.80 from $1.60. One of the plication of growth.
*
v
(3) Regardless of how

...

States

that I like in

company

utes about one-third of total sales

runs

wide

addition,

recent

I 'Au{

(b) Standard Oil Co. (New Jersey): Last year Jersey set new
records for crude production
refinery

data
of

could

Now, the two major companies

In the oil group, Texaco is

favorite for capital appreciapotentials

the

this

Arizona Public/ Service's

Which, inferably, stand to benefit

Health plans in the United

(2)

about

ld bave been around $2.75 vs.

without

competence

would

ago,

years

have been regarded as superficial

bounds

peer

illnesses

minor

many

few

world

munications.
seen

think

revolutionize

$9.25. industry.

teria6 TmrttisTuggestfmm1: ^.31 for the year preceding. Di'
vidends recently were increased

agement

which,

satellite.

star

(aside: not

well-publicized "super-

of the

one

tncmpuorg
opportunity,
this

ment

share3 of dupQnt appear to me to

Texaco: Statistically, Texaco has outperformed consistently
all its competitors in each of the
,

divldend>

FncTude^ faVOrit6S iD
v
(a)
/

their children to doctors for treat¬

orbiting of the Tel-

10 largest, privately-

held utilities

$6.90

company

todajr

investment

medication. Today's mothers take}

dramatic. implications * in

the

Pprobably

long time. I am suggesting, never-

that

ever-increasing amount of

the

the successful

record matched only by

enues—a

five

for

^0yer-capacity. It stiU.exists;
and may continue to exist for a
stocks

receiv¬

are

the verge of major

technological breakthroughs; I'm
thinking particularly, of course,
of

Children today

(1)

think we're

panies and data processing com¬
the
companies . . . or unworthy oLme^ical attention..
years through 1961
in¬
panies' combine toVOffet* ^'facility creased fivefold. Last
year the
and Lucite paint, This suggesits there is being laid
which will transmit quantities of
company
should
have
earned
Gn operations aione, duPont last a base for what I feel may be¬ data via
telephone lines. This, in $1.30 a
share, which w;ould reflect
earned approxi- come a most unusual growth
itself, is a breakthrough.
a
20% increase over results for
and, including the curve for many companies in this
Delrin pipe

theless,

emphasized

has

Management

the other

•

side:

favorites in the chemical group, ing

look

Thursday, January 24, 1963

in* namely, Communications. Here, I

are

of their

foreign subsidiaries.

Now,

...

VITAL

INVESTMENT
ANALYSIS

segment of the,utiHty industry—
I

San Francisco
Los Angeles

;

Volume

$1.60.

197

Number 6232

However—and

this

important point—this
possible

that

in earnings

crease

The Commercial and Financial Chronicle

is
in¬

BANK AND INSURANCE

be possi¬

may

.■

ble. If this is
true, then the shares

today

appear

This Week

real

represent

'■jy-i-<-V

■;'J

value.

For

investors

primarily

THE MARYLAND

inter¬

should

afford

consider

opportunity

several

the

Railroad

well as thus far this yearhas

amount

been

dend^

increasing
the part of

of interest

by the

stocks. In part, I think, this
interest reflects the hope that the

Administration may recognize the
for

substantial

revisions

legislation governing operation of
the

nation's

railroads.

Recently,

Congress repealed the 10%
eral

excise

tax

Fed¬

passenger

fares.

Moreover, steps have been

taken

toward

feather

the

elimination

bedding

practices.

ICC has indicated

pedite

rail

flected

consolidations,

its

The

desire to

recent

ex¬

re¬

action

connection with merger and con¬
trol questions.

Among the issues which might
be

considered

basis of

yield

$54 million. The

comparison

Atchison,

Topeka

of size

Casualty,

Insurance

recorded

you—Ii think

1962. The company has been under-capitalized in relation to
premium volume, despite the sale of stock in 1958 and a policy of
holding premium volume down over the past two years. Through

is, in

the

Formed

and

referable.

com¬

PALO
of

California,

ALTO, Calif.

Formation

—

lin P.

according

III and Frank¬

Johnson, Jr., principals.

Draper & Johnson Investment

news

780

Welch
in

Road,

has

Mr.

been

conjunction

with dent,

serving

Draper,

Presi¬

formerly associated with

was

of the company's first place¬

Draper, Gaither & Anderson, Palo

The new

Alto, since that company's found¬

Bay Area financial

ing. Mr. Johnson, Vice-President
& Treasurer was formerly a pro¬

ment

equity capital.

firm headed

stock invest¬
$250,000 in Illumitronic
a common

Systems

Corp.
&

duction
Steel

Illumitronic

and

Johnson

Everett

with

Corporate

Layman,

Inland

Secretary is

Jr.,

San

Francisco attorney.

licensed

executive

Co.

Statistics

Selected

Maryland Casualty
Net

Underwriting

Written

Profit

Per Share Data

;

Premiums

(Millions)

Margin

$119.0

—6.1%

125.2

—0.9

2.72

132.0

—1.3

2.95

Adjusted

Income

Total

Investment

Price

Earnings

Dividends

Range

$-0.33

$1.50

$39-25

3.48

1.50

45-29

2.16

$2.57

1.50

44-31

136.9

1.1

3.18

3.82

1.50

3.40

2.96

1.70

1962'L4u

111.1

1.1

2.61

3.01

1.42

for trading
With

50-37

im¬

reasons

40-32

—0.4

53-41

•

Nine

;

months.

Northern Insurance

any

-Per Share Data-

Premiums

success.

Underwriting

Total

Net

Profit

Investment

Adjusted

(Millions)

Margin

Income

Earnings

Dividends

A major name in the underwriting

ratios

Price

1957....

$2.85

$1.73

$1.40

$40-31

1958.._

39.5

0.1

3.06

2.42

1.40

49-36

45.1

2.9

2.68

2.75

1.50

53-39

I960—

55.7

—3.2

3.24

0.53

1.50

48-37

rienced

1961...

53.9

—1.0

3.48

1.50

60-41

1962*

Department

42.3

—9.0

1.12

56-35

higher
be

may

$41.1

0.7%

Why?

Because what

think

Nine

months.

1.47

—2.23

Mr.

Annual

Johnson

Investment

Minneapolis,

Minn.,

before

Outlork

Jan.

16,

1963.'

trend

towards

within

mergers

which has heightened in recent years, is

the

insurance

Active primary trading markets in

industry,

likely to continue

or ac¬

•>.

Comparison &■ Analysis for 1962
Bulletin

tion in the

of common

range

stocks,,

history of the fire and casualty industry in the proposed

A wire

system to 32 offices and

coast

Fireman's Fund—American Insurance merger. The purchase of the

correspondents

stock of Merchants Fire

for broad dealer and institution¬

also of

by United States Fidelity & Guaranty

was

major significance. A number of other mergers within the

al coverage—at less cost

Request

York

Stock

without

blocks

Exchange

Stock

American

experience

Long

Laihd, Bissell S Meeds
Members New

wide

corporate bonds, preferred stocks
and convertible securities

already seen the offer by
Maryland Casualty to acquire Northern Insurance and the offer
by General Accident to purchase the stock of Camden Fire. Ad¬
The past year witnessed the beginning of the largest combina¬

STOCKS!

celerate in 1963. The present year has

ditional mergers are in prospect.

10 N. Y. CITY

BANK

expe¬

Trading,

issue

The
by

large,

Merger Trend Continues Strong in the Insurance Industry

talk

field

Range

industry

thinks

important.

120

rily

William H. Draper

Draper

138.9

relatively

people

Members

selected capital placements prima¬

Coast

Engineering Corp. of Sunnyvale.

equitable to both

panies.

opinion, about

ince/earnings

Meeting,

or¬

ment Act of 1958, and will make

1959—

sell

Fifth

have

stocks,

under the Small Business Invest¬

* '

The terms of the proposed merger appear

1961—_

'(30 Stocks which characteristic-

the

Draper & Johnson

part of a larger and stronger organization, while Maryland
Casualty will gain valuable diversification in its premium writings.
come

1960

marketplace

cases

common

have sold their insurance business to others.

ment

leave

prospects.

*From

group

three

management

which in most

companies which have either'been merged by larger

the proposed merger, the Northern Insurance stockholder will be¬

(2) Price/earnings ratios reflect

other

moves,

un*

of the

ganizations

announced

Written

llyj,

number of these

relatively

indicates, is primarily

they're.

determinant of

what

see a

will

year

to be highly profitable to the holder of the

Co.,

The

90%

assets

name

are

which: I'ditlike

portant:

1950's, but fell into the red in 1960 and 1961,
large underwriting loss through the first nine months

1959____

concluding,; there

company

doubtedly

regular

company,

proven

and had

1958

(1)

its

profitable underwriting results

1957

Conclusion

operations to another

likely to be duplicated by several. The present

in each year of the

Pacific and Union Pacific.

with

insurance

writer of liability coverages whereas Northern's premium con¬
centration is in the fire and other property lines.

ville; Norfolk & Western; South¬

casualty

Northern

Springfield Insurance

the 27th largest fire and casualty

considerably smaller with premium volume of

similar ratio. Maryland

Fe; Illinois Central; Kansas

points

and

City Southern; Louisville & Nash¬

ern

of action taken by the management of

insurance underwriter with premium Of $138.9. million; in;. 1961,
while Northern is

the

Insurance.

tfye

relatively high current

are:

Santa

attractive

proper

Maryland Casualty ranks
i

stock divi¬

CasuaItyvThe offer is contingent upon approval
authorities and acceptance by stockholders repre¬

senting 80% of the shares of Northern

investors in many of the stronger
rail

exchange of stock. The exchange would be

share for share basis after the payment of a 5%

companies

critical to survival

ari ideal solution to their underwriting problems. If not, the

fire

Company through

m.ore

in withdrawing from the business through the sale of its

The Directors of Northern Insurance
Company of New York have
recently approved a proposal of acquisition by Maryland Casualty

issues. In the final weeks of 1962
there

CASUALTY-NORTHERN INSURANCE

MERGER—

achieving above-average
yield on their investments, 1963

smaller

operating costs becomes

in these competitive times for insurance underwriters^ The man¬

course

ested in

need

desire to reduce

Rail Issues

-"-as

industry also took place among the

agements of numerous smaller companies, unable to compete ef¬
fectively because of the higher costs of operation inheren t in low
volume production, will undoubtedly look to the merger route

Insurance Stocks

—

(309),;

the

substantial

year

Exchange

handling large
existing,

disturbing

street markets

BROADWAY, NEW YORK 5, N. Y.

Telephone: BArclay 7-3500
Bell

Teletype 212 511-1170

...

Specialists in ' Bank Stocks "

;

Overseas offices in

Paris,

London,

National and Grindlays
Bank Limited

<<'

KENYA

•

UGANDA

•

PAKISTAN

•

trading
Call

problem

may

write David

Kidder, Peabody

ZANZIBAR

CFY< ON

ADEN * SOMALIA

your

help.

can

be,

our

D. Lynch,

Manager, Dealer Relations Department. (212)770-7375

Branches in
INDIA

what

22368-y

Bankers to the Government in
•

matter

experience

'vv*yj-

MINERVA LONDON

Telex Nos.

and

Hong Kong

LONDON, E.C.2

Telegraphic Address

ADEN

WM V. FRANKEL & CO.

Aires

INCORPORATED

Head Office
26 BISHOPSGATE,
y

Buenos

•

BURMA

EAST AFRICA

Founded 1865

Philadelphia

Boston

Co.

Members New York, American, Boston,

- Baltimore - Washington,
Midwest and Pacific
Exchanges
•
20 Exchange PI., New York 5
Philadelphia Chicago Los Angeles San Francisco

Coast Stock

AND THE KHODES1AS

•

The Commercial and Financial Chronicle

(310)

Tennessee Gas

the

Bonds Offered

and

Chicago,

are

proceeds,

;

re¬

high

approximately+

Down; Spin holding; It was the No. 4 holding
1962.The folks in only a year earlier, toting up to
the balance will be applied to the
^ fuhd business also Were pick^ 2^ % of the entire portfolio.

$50,000,000 Tennessee Gas

items off-the^rackr^nd

Transmission^ first mortgage /pipe; P01/^01/1 -°P * a proceeds qf which
'jng back

Match;
1,, 1983 at JOO.95% to, yield ap-, toinera^
m.^onr^ction/

line bonds, 4 % % series 4ue

"Jump

bririg-^

lot of merchandise too.:

^ 'Edward

Boston* hased/;,.Fidelity/

Howard

Woolworth prove

f; bargain? June ^ next year

and

put Meanwhile, be grateful

that yours is.an easier way to
make a hvmg' •
.

The*■pdmiriick/Yund/folk^Ulstfv^
were

-showing

change of

Johnson, 2nd, PresW and vtaste:' fFor

with the ; ^ent
settlement.

stay on
fundmen

counter

Will

Johnson?

AUan Sherman, daddy of American - As for Hunt Foods, the fund his
^ singers, wasnT the only -one sold off the entire 32,300-share

^wifh

down whorhad

autos
Will

road?

the

crowd

My Son, the Stock Picker

tobaccos win

lose old ones? Will

friends

up-and-down

the

new

the

to he 4rawn

Trustee

the

fering for public sale a new: is¬
of

}; 1

&; Co. Inc., $7,000,00(1 wiU be deposited

joint managers of an

JOSEPH c: POTTER

•!/>

underwriting group which is of¬
sue

ranging * from

prices

100.93% to 100%.

Weld & Co., New York,

Halsey,' Stuart

100%; and at sinking fund

compliment, but any fund worthy
charge must be.
■

of the load

Will the steels and

prices ranging from 105.83%

: demption

Stone & Webster Securities Corp.
and White,

at regular redemp¬

company

tion

MUTUAL FUNDS

they
the option of

Otherwise,

redeemable

are

Transmission

1968.

Thursday, January 24, 1963

cost prior to

lower interest

March

Ju I1C Jb UI1QS XvGpOri/' •

pace *

rei

they diversified Investment Fund

thing,

One

seem to have "kicked" the tobacco "porta that at the- close Of the fis-

company's recent rate
proximately- 4.80%. \
CapitaI Fund> and his colleagues habit, selling off 10,000 shares of cal
year on Nov
SO tota! net asThe bonds aye not refundable at
:
Headquartered in; Houston^ the woye^wappingiu^ously4ast;year;:;vKeyholds "Tobacco !^in >the ^final ^sets Avere $99,350,566 or $8.54 A
company and (two of its -sifbsidLC >ThraM afithe ;clpse ef'•the; fiscal quarter' of last yearv
President; ;sharC. "This compares* with $108,-,

■

aries

and

own

Wellington

pipe line

operate

systems for. the

year on

Nov. 30; 1961, the leading Gardner D. Stout, aside from not-

xiaturafga^.-;Tenn€co:Corp:>:;'haitoe/ab<fl^ks.%Hy .th$'^?^

saleof

318,034 of assets and $9.69 a share

transmission and/group in their; portfolio was.fi- ing. that Dominick's tobacco had
pointed

earlier,

year
-

its the latest fiscal year that category put that autos and trucks had gone
%
subsidiaries, is engaged in the pro- wasn't even among Fidelity's top from;zero to 3.8%.
^
Domlnick Fund, Inc. reports total
duction, refining and marketing, 10,
it skidded from 9.2% .of the'
Hesult is that Dominick now has ne^ asse^sa^ the-end Of 1962 were
$36,386,302, equal to $20.23 per
of petroleum and petroleum prod- totafto a mere. 2,2%"*.
v.;;
~
, - •; 16,85(1 rshares -of;General
Motors,
share.
A
y ea r
earlier assets
ucts and in certain ether activities:
jc Consumer. goods,
s^copd^ank^^poQ /Ghrysler qnd 9,700 . Mack amounted to
$44,877,315, or $25.61
/The multipie-jline natural ;v'gas"/: ■; ,/'/
a share.
At Sept, 30, 1962, assets

together'with

subsidiary,

A Name to Remember

When Investing

of Texas
—

the

Fund

Balanced

continental

York

a'. ''r

-I;Vi'-' :"V';V-

dealer

-V.Y

'/•Ml:/

Gulf

earlier, with 4.5%, soared to stone Co. of Boston reminds

year

extends

into

or/ across

states and includes approximately

•

Philadelphia 3, Pa.

the final quarter included Chrys-

issues consist of Amer- the best-acting equity

among the /Industries; Radio Corp. of Amer-"

* Like many other funds, the Fi(off 44%).
Water & Power, General Tire &
delity folks entered the buoyant-4/So the .stock pickets h^ve.good Rubber; and R. J/Reynolds To¬
new year with a radically altered reason to shop around. After all, bacco.

Newcomers among its 10

one

the

standout

stocks

for

& C0., Chrysler, Consolidated Ci- ot the. most buffeted was Chrysler, the; final I quarter - of 1962: it

.ac- -

■

^ ^ Monroe Auto Equipment,^^Certaid- / fiojial, ;ai % a/suggestion that he Electric. It eliminated Superior
Air1^t—S aS Teed Products and Polaroid^hich;-stayed;too long.^ To many/ of OiL/ ;Sigifificaht Increases ;in/ its^
^

"p?1

the No^ 5

was

S': Ind

^
*

Treasurer

earUe?"
-

holding

The people at Fidelity,

•

-ihese^people the bad jbehayior^of investments'

year

stopped

at Howard Johnson,

Now bmith, Houston Co* restaurant,

FUNDAMENTAL

food,

WAYNE,

INVESTORS,

name

stocks

selected for possibilities of growth
in income and capital

Ind,
ft.

of Lt

tion. It is the ability of fundmen General Electric and Texas' Into take a c°ld> objective view of struments were announced. There

motor

lodge,

the

stocks that separates them from

frozen

the boys.

chain which had

cream

:Th^ fii^viti5:-;beginnings
New /England,'
Houston/ & Co., They; came put;with 45,700-shares;
—

/Philips Gloeilampei^b^iekeii and

m
was

.were significant reductions in
Baltimore Gas & Electric, N. V.,

'far frprn. a djsasteri Actually;

;tlnitcd ytilities^.

Lincoln; Bank; Tqwer,: has^^bebn of
fhe^tock^whi^bowed omthe^-aside; from /Chrysler, such bow- •<
changed to Smith,; Houston & Co., /Big Board last. year. <
stocks -.as United Aircraft, Stand- Fidelity

tiori^and^IByard^
vep

H. Smith ate principals.

ice

•-'

*
Fund;

Capital

/./^
Inc,re-.

.axdOilofCaliformaTJersey Stand* ports;that at the end bf She fiscal
Texaco, General year on Nov. 30- total &t assets •.

muaicftJ

in Gohsolidated Edi-/

Chrysl6r during yearS past has Eon' RCA- Nevada Power' E,ec"
who" are ^ barred it from future consider^ .tronic; Associates/ Socony Mobil,

grow;th-minded, incidentally have

the years.

gar, Xerox and Amerada. The five Any fund
salesman who gets quired asu neW 'hdldirigs >" 5,000
casualties were Crown# Cork & /ardund has^^ met the/ prQsp^trWhqi/riiares,^^ of/
J\ferathon^^it; /lQ,00Q,
Seal," Hunt / Foods, & Industries, owns Steel and can get quite emo- Avcb/ ^idhd >* l5,000T-**Wtstinghou^e

•

WarA

over

;

largest holdings were W. R. Grace many years was Big Steel and one Energy Fund reports that during

niversai Dai6S inc.

WAVPRnQQ

common

•

the fourth-slot, iWith^.7%:v Com-/That company; has figured out that ler, Monsanto, Chemical, Litton

line-up.
v'

Wellington Company,. Inc.r

Investing in

us.

New holdings acquired during

The

ll,340 miles of pipe lines,

or write to

'iJ-

of the

Key-

system,;/ which in- *can Telephone & Telegraph, In-. 30 Bow-Jones industrials in 1962 ica, Jones & Laughlin and U. S.
eludes;/underground gas storage ternational Telephone & Tele-»was Chrysler (up 51 %) and the Steel. The fund eliminat ed
areas
in Pennsylvania - anct Newgraphand Rochester Telephone.
dreariest issue was U. S. Steel Carter P r o d u c t s, Shawinigan
States,

possibilities.

for prospectus

shelf

/Mexico, and extends into the
northeastern section of the United'

rent income, and profit

Ask your investment

back* ait 1962 is in order,

a'nd/Lduislana^itteittdi^

seeking conservation of
capital, reasonable cur¬

lOok^1;? ^*5'5'74y'ot)9' 01

/hopefully* A

begins ihgasi

pany

Electric and

J
.

General

ished the year on

Motors

fin-

the plus side.

per

On the other hand, take American

Yes, take American

Tobacco.

amounted to

share,

equal

$136,025,456,
against

$10.64

share,

$7.65

$160,035,792,
a

year,

earlier.

*
*
*
"^General, American .Investors^
issue in the Dow. Last year it fell IncZ reports net assets at the end
nearly 42%, a slide exceeded only of 1962 were $57,918,143, equal to

Tobacco

somebody,

—

please.

1961 it was the "second best-acting

DIVERSIFIED

INVESTMENT FUND,*

by/SteCl,"
Calling

A balanced investment

> -

-" '

fickle is

person

$28.63 per-share pf common stock.

never

The

amount

common

per

In bonds, preferred stocks and
common

stocks.

iA'^Vn'

A
v/v/-

listed

DIVERSIFIED GROWTH
STOCK FUND, V
Investing for long term growth

The

diversified, closed-end investment company
' '

<:'x

1'' '-*■

'l!"jv/

the New York Stock

»j

'*r?' u

►

Z? f

.vV

PUTNAM FUND

Exchange

V;V- ■

t'"
*

33 RD

g ;

(jeorge

< -><i

•

of^Boston
I

.rlv"

"A BALANCED FUND"

[possibilities in securities of companies|
in many fields of scientific and
economic

THE

ANNUAL REPORT

development.

PUTNAM

M !l

for the year

ended December Gl,<1962

available upon

request

,"W"

;

■/"' '■'>;

BROADWAY. NEW YORK 6. N. Y.

•

/:^
---/'. S

-A -

New York

Los Angeles

Elintnth, N«w icmy

,-S

idiUlliiUilmMttiiiudilil

•'

fund

Prospectuses

Putnam Fund

litcorporsted
PfHtminUtr »t Pyfcef

-f

Request

Distributors, Inc.

POST OFFICE SQUARE, BOSTON

Hugh W. Long and Company

^ Emphasizing possible long-term Capital Growth

■

-v/v-/ 'vf-v:Z'-'1'/■■/•■ .i/'A;,;'

GROWTH

Chicago

San Francisco V

/"•';

Cleveland
St. Louis
Washington
Pompano Beach, Fla.

Number 6232

197

Volume

Sept;

toas $24.64 On

The Commercial and Financial Chronicle

(311)

'A,

30, 1962, and

$32.60 at the close of 1961.

total.

1960

four

General Public Service Corp.

Dec. 31 of $76,140,181,

$6.12

OWEN ELY

the rapid growth

ac¬

earnings

creeping

amount,

eral Power Commission's

upwards

$82,527,058, or $6.80

were

1960

the

nearly

that its trend

for

which

are

to the 25-32 range.

Burns Named

lies

now

slightly, above the Institute's.

Electric Utilities Recorded Good Gains in 1962

issues, the price-

ratios

forecast,

A once considerably lower than the
Institute's, has now been revised

equal to

At the close of 1961

share.

assets

times

stocks rather than again pursuing

should

cording to the Institute. The Fed¬

re-?

ports net assets, at market value,
on

Annual output

approach 2.3 trillion kwh

By AF-GL

/ ■;V;?A A

,Thus, the "industry should'reElectric utilities enjoyed a banner ducted ^tnd ^allowance;:also made- main iri a "&rb\vtli Curve*'- Indef- BOSTON, Mass.—William Russell
Burns,
Jr.
has
joined
Albert
-Fund, Inc. reports that it ended
year in 1962, aided by the business foranyincrease in;the number of initely
sOfar .as* revenues
are
Frank-Giienther rLaw,
11962 with total net assets of $79,; IncJ Vand
recovery, good appliance" sales, ; Condon shares butstandihgv ;| .| concerned v(as^ming normal Ccor
X

•

Mutua 1

InstitutionalrInvestors

740,632,

$232.70

has? been; appointed manager of
'
Apaft frbm ^peeiaL accounting nomjq conditions)'; and the pros:*;
-A y-Yr.Athe Boston?of4:
tax and account- gains, * the industry showed -good /pects also; seem favorable for net.' r
ing A developments ^hjchx/gave £rbwthin-1962. > Sales of kilowatt- Earnings.
Further
substantial

share, against favorable weather for- air^ condi-

^72,931,941 and $278.80

share a. tioning, and

earlier.

year

new

good ^dr^Cnd/filip/ hoursrgainedi 8% :over 1961; resi- economies should be obtainable in

earnings -a
Investment
-

Trust

Boston. re4

One

■

example

the

year-end

ports .that at Nov. 30 net assets earnings bonuses was the
were
$66,151,396,
or
$10.70
a Public Service
ElectHdj
share.

fiscal

year's

$10.29.

showed

earnings

$3.74

ended

November

30,

were

9% and

1962

and

weather conditions

trie Institute,

Carbide.

Interstate-

and

Gas"

'
•

*/-?/:>:•. ■<'/#'':

n v-

».

Massachusetts
Fund

total
,

net

that

reports
year

; assets

$540,893,815,

the

$7.38

year

might also

/share

use

were

are

item

$43,098,971, compared with" $46,-

power

WaS

R.Burns, Jr.;

♦

teases--

the grates for

use ^L5-Scents- per

ing to

use

earnings.

■

Com¬

AF-GL's Boston office is at 10
Post Office

Square.

headquarters

The agency's

are

New

York

City and other branch offices are
located in Philadelphia', Chicago,
San Francisco and Los Angeles.

the 2% funds obtainable

to|arbund; promote construction of generatkwh; which isvwell ingr plants! wliich- would furnish

OOO homes

M. H. Silver

subsidized

cheap,

electricity

for

com-

000 six

Based

0ver,

seven years

More-

ago.

almost one-fifth of all new

homes

last

built

Public electric

Opens

Michael H. Silver has opened of¬

fices at 39-Broadway, New York
City, to £ngage in a securities
business/"
u
!
.

entirely heated by elec- Government is planning to build a

to tricity compared with about ?50,-'

expected to include the

1962

Fidelity

director of ad¬
vertising and public relations>;

-electric 'heat*, -by the-REAsfrom 'thetTreasury^to

it below the average U. S. residen-

cents

informal ruling of the

associated

Research

pany in Boston

William

Management

to another> Promoting

area

additional savings,

£^
with

from

t^^>iwh^-,There-,are''powvSomei'.1^00t-../ih9ustrieai1q|c^}$o»,oi^.dwtse>:th€!i

535,836 at the end of the last fiscal Service Oommission In
year and $57,155,194 on Nov. 30,
1961.

transferring blocks of

on®

volts

flqw;: through for tialrrate 6L afibutv 2.45 .cents, ipCr the RE As to sell t(£tnijnieipalitieSf

However many other

panies

assets

the

depreciation,

increased

been

,1962, end of the fiscal year, and
$3.90.
$15.15 on Nov. 30, 1961. At Nov.
net

that, -since

been done, earnings would have

compared with $13.86 on May 31,

total

(500,000

which should permit

cases)

some

promoting electric heating, some , nents at Washington are; attempt-

tjie? ii^estmenfycr^dit.v:H

of i$14.18 ^Canadian) 6nr?Nov/>30,

1962,

vpnr

liberalized

per

lines

mission

]?a

one

tax savings resulting ;from

ports net basset ' value

from union demands. Also, the
utilities are? announcing ;plans for
construction of high voltage trans-

the company uses flow through of ing> has been, reduced

Scudder Fund of Canada, Ltd/re¬

30,

thb

It. had been assumed

earlier,
❖

residential sales

of them for the first time. In many

992 and value per share of $9.38
a

Washington

thrmicrhniif

share,
compared with assets of $582,008,or

of fewer employees in re-

Nov. 30

amounted

use

\ su
^ g°° showing was
he increased sale of appliances
There we rtways adverse facpany normalized the tax sayings
Moreover, many elec, tors to .contend with, but they do
resulting from the so-called -3%'^c "tiUties, In-order to,bolster not seem serious enough at this
Investment
credit
another • tax their tvmter , sales and offset the time to penalize stockholders exconcession made by the Govern- summer peak resulting from air- cept perhaps imsome individual
ment last summer, and retroactive conditioning business, are actively cases.
The public power proposummer

Investors C Growth

end of the fiscal

the

the steps to aid business. The com-

y;1V'v: /"••/

;

■

depreciation guidelines issued Ihis; ^

Carbon; Were eliminated.
v

Stock

share, growing out ofthe so-called

Holdings of Borax; Ltd.,

Colorado
United

Union

labor functions, permitting

many

although lation to output and fully offsetwill, of course ting higher wage rates resulting

reports that during $3:21 for calendar year 1961. The
piay an important rQle in air-conthe final quarter of 1962 major
,iate$t; figure ref tected *,a[ 3^^end. ditiondng;sales^Kwh sales arp ex^i
portfolio changes were h" i g h-v adjustment for tax reduction re-: ■
pected to-gain more than 7% and.
lighted - by acquisitions Of 30,000 suiting from the u$e Of-rtew <3epre-^ revenues about
6.6%, according to
shares ! of /Collins ; Radio,
3,120 ciation schedules for the gas plant, the* estimates of the Edison Elecshares of Rohm & Haas,' 10,600
equivalent to about 13 cents a
Stauffer Chemical and 5*200

generating electricity through big-

excellent,

appears

Lazard Fund

commer-

up 6.7% reached almost $11 bilji0n.
The"
outlook
for
1963

com-

pared with $3.59 for the 12 months also

of the first to appear-—which

one

May 31, 1962, value per share was

dential

ircpor^ *>f - ciaf and/industrial 7.6%. Reven- ger. plants,vlower, cost of Cpal, etc/
Oasr-. .tiespt the investor-owned utilities*; Computers are rapidly taking over

heat,

installed

year

while

three

years

national grid of transmission lines,
if

the

investor-owned

utilities

don't do the job first,
Reflation

questlons

mav

also raise

average'

The

some

rate

New^York, ago less than one-tenth used this return on' rate base for the init4s expected that; the utilities jn Vmethod. Many of the older homes«vestor-oWned^ electric ; utilities is
this state wilt-use flow ^through, are also being converted to elec-u ?
a
•>
; /* ■,
^

Thus

Consolidated Edison,

i96g#mings .had

Kidder, Peabody

including

cents

the

for
-

Kidder,

Peabody .& Co., members of the
New

York

other

Stock? Exchange

shqwing

average

out of

sL ! e*apsc seeping up to around
Sn TnTleTot

°«. gas
;

utiUties have acted

their

°.w" ,,nl latlV6', ""f"® pr°m°"

t .l^ng^anger forecasts^ of.
sales.vtional cuts in rates for househeatandearningscontinuefavorable. It ing, waterheating, etc. >It is 'posajpeaqy js generally assumed that the in- sible, that some commissions may
-

gains

will -double

riugtry

although

deeade,

about, every order that consumers be given the
forecasts benefit of the new 3% investment

most

earlier 12

month^ periods inAbq^discouttt; this somewhat; By 1980 • credit. However> where utilities
-latestinterim,:,statements-^the^ ,12
investor-owned electric utili-' are still earning a below-average

exchanges,
the

months ended September^ for

thpse^t:Ue's»v^{exciudirig^-N.\Hawaii'^'V'and;*return;"':theV:new accountihg rules j
reporting quarterly, and 12 months
|Alasfea)^^ iare-^expected - to have :a • and; tax; windfalls? may permit I
ended. October or November tot
generating capability of some 493 them to "catch up with the pro* i
^ose Vw— issue monthly state- miiiion kw or over 3^ times the cession." Perhaps investors should
ipents. This rate of gain compared
' - '
*
•- •
■ be analyzing'the outlook for these

appointment
of

share earnings of about,8% pyer

leading;

announce

.'-'hu*

The electric utilities had

been

and

new

credit.
—

one

:by

Appoints Dempsey
PHILADELPHIA, Pa.

trTc hcatingAbout

whose

John

Dempsey

Manager of

Pennsylvania
Municipal

with

Department in

years

their

year-end»accounting

Phila¬

fov

delphia office,

1956-61." With the^favorable

many

Fid el it y

adjustments

„

•

(

for

the

Established 1928

I
"

■

^T/Z^nnHp^l'^ndej^iterLi

companies, the gain ,in

earnings

INC.

of 5% over the

average

r Lii mj

calendar

FUND

RESEARCH

}
i

-Philadelphia
Trust

Build-

ling. He
V:

year

proximate 9

John P. Dempsey

supported

was

previously Manager of the Pennsylvania Municipal trading Dept.
Mr.

ciated

Dempsey

with

1962 might be expected to

has

Kidder,

been

asso¬

Peabody > &

Co. since 1950.

Edison
net

10%;

Electric

income

Net income

and

estimate

Institute

9.4%

is, of

ap¬

this
of

Ji-fVAND. J^fANAGEMENt,' INC.'

is.

the

placing

course,

ELECTRONICS|

not qui

equivalent to share earnings

preferred

dividends

TELE VB S Q ON-

above1196

must

FUND, INC.

57™ CONSECUTIVE

67 Wall Street, N. Y. 5, N. Y. :

Telephone: IIAnover 2-1170

DIVIDEND|

;

Principal Under writer for s

The Directors of Television-

Electronics
declared

A mutual fund investing in "growth"
/ stock's. Sold only through registered in-

per

PIONEER

Fund, Inc. have
dividend of 3^ /

ENTERPRISE FUND

share from earned in¬

;

Common Stock Investment Fund
An

investment

seeking --'.i
for its shareholders possibilities of long-term
growth of capital
and

;

company

vestment dealers. Ask your dealer
free

prospectus or mail this ad to v/;

/ CALVIN

reasonable current income.
.

Prospectus

upon

request

for ;;

BULLOCK, LTD. J

Established 1894

ONE WALL

STREET,

;

NF.W^ YORK_5

payable

come,

Lord, Abbett & Co.;f§p
New York

—

Atlanta

—

Chicago

,Los Angeles

—i~

San Francisco

ADDRESS.

28, 1963, to shareholders

record" February 1,
1963. Dividend reinvestment;

date:

February 1, 1963.

January 17, 196 3

Chester D.
NAME.

INC.

February

•

120 S. La Sella Stree!, Chi

Tripp
President

:ago

j
•

I FUND

Prospectus available from:

RESEARCH AND I

MANAGEMENT, INC.

I
I

67 Wall Street • New York

5, N. Y.

3, lllinsb

The Commercial and Financial Chronicle

(312)

The State of TRADE and
Continued from page

total)." This
cars

that week's

included in

529

was

increase of

There

freight

general

year

and

systems

originating

10%

in 1961.

more.

increase

to-year
Truck Tonnage 3.2 % Above

Birmingham

Sales Rise 9%

Up Fractionally in Latest Week

output of the com¬

\t V*/'1

'' 1'

1"v■

Edging slightly higher, the

A'l.V '.)•

•

Vf.

tj,

Business Failures Down in

Commercial and industrial fail¬

after hitting

six-week high

casualties

when the toll

ago

than

occurred

year

to 396

came

sales

store

country-wide basis as taken from

gen¬

the Federal Reserve Board's index

an overall gain of 9%
reached for the week ended Jan. 12, com¬
the highest point in the past two pared with the like period in 1962.

commodity

Monday,

weeks

but continued

month-ago
reported

and

below both

Bradstreet,

Inc.

Many small increases in whole¬
sale

quotations

and

somewhat
noted

were

steel

the

corresponding period

1962-

lead,,

and silver.

sales

•

11%
in

;

According to the Federal Re¬

upturns

rye,

gained

1963,

department

System,

serve

wheat,

period ended

12,

over

registered,

were

stronger

for

scrap

In the four-week

levels, Jan.

year-ago

Dun

price reported

Jan. 21,

level,

Latest Week

ures,

wholesale

eral

Department

Store

Over Last

Year's Week

while

The unusual year-

Nationwide. Department

Wholesale Commodity Price Index

7.4%

five of 315 in the
prior week, turned
type traffic in the current week other points registered gains of down to 286 in the week ending
compared with 57 one year ago more than 10%. Only two truck¬ Jan.
17, reported Dun & Bradand 54 in the corresponding week ing centers showed decreases of
street, Inc.
Considerably fewer
railroad

prices at the whole¬
i %

sale level.

kwh.,

1,253,000,000

reflecting decreases

58.1%,

the

last parable 1962 week.

tonnage

Birmingham reflected an over-all

this increase

trend of food

643,000,000

was

than

Thursday, January 24, 1963

week's total of 17,467,000,000 kwh.,

at; 24 localities,

ago

Output

above the total

for

survey

increased

Institute.

kwh.

from the 1962 level. Terminals at

class

were

showed

week

with 10 points

thie 1961 week.

above

terminal

The

from

19.1%

cars

over-all throughout the country; : :

5.5% above the corre¬

1,636

carriers

mon
..

sponding week of 1962 and an in¬
crease

INDUSTRY

sales

New

York

City

store

for the

week ended Jan.
attributed to the ice and
12, were 1%
in 1961 when there were 340. Also,
The Daily Wholesale Commod¬ less than the same
that plagued the city at this
period in 1962.
business mortality was off 22%
ity Price Index moved up to 269.28 The New York City newspapers
Intercity truck tonnage in the time last year. At that time it was
from the pre-war level of 367 in
week
ended Jan.
12
was
(1930-32 = 100) on Monday, Janu¬ strike by the printers' Big Six
3.2% indicated that twp to three days of
the comparable week of 1939.
ahead of the volume in the cor¬ operation were lost due to adverse
ary 21, from 268.86 a week earlier. commenced 2 a.m.
Saturday, Dec.
Most of the week's downswing Off fractionally from
270.39 on 8, 1962, and despite
responding week of 1962, the weather.
it, retail sales
was
concentrated
in
casualties the comparable day last month, in New York
American Trucking Associations
City department
can

Year-Ago Level

announced.

Truck

snow

tonnage

was

26.2% ahead of the volume for the

Compared with'the immediately with

preceding week, all 34 metropoli¬
tan

previous week of this

year.

areas

This

registered

increased

liabilities

which

earlier

week

topping

dropped

$100,000,

still

but

from

exceeded

the index fell considerably below

stores

put

its

weeks

until

tonnage. Wide variations in ton¬ their
last
week-to-week gain is attributable
year's level
of 34.
nage changes for the week would
to the
New Year's holiday ob¬
Smaller failures involving losses
seem
to be due to holiday ob¬
under
served in the earlier week and is
$100,000
changed
little,
previous
The

over

th s

ment

However, the longshoremen strike

and

new

Weekly
order

and

ship¬

data

362

this

Output Up

The

7.4%

Over

Last Year

weekly survey of 34 metropolitan

The

amount

short

far

size

similar week

toll

dropped

These findings are based on the

the

occurring in the
1962.

manufacturers

among

from

wholesalers

63,

frorri

among

42,

and

among construction contractors to

electric

energy

from

57.

Retail
their

purchases

zip

contrast

these

than 400 truck terminals of1

com¬

cording

to 29 from 21.

While .wholesaling

the

Electric

Edison

and service failures

equalled their

1962

concerns

levels, fewer

cumbed than

SPECIALISTS IN

FOR

in the

Bad

•

DEALERS

tinued

hurt

other

hand,

& NEW ISSUES

decline

There

EXCHANGE PLACE

—

casualties

States. to,;27

was

England

other

six

slight

the

14.

48.

New
the

southern

has

11%
the

centers.

homes

re¬

Fourton to Be

Delafield Partner
Effective Feb. 1, Leslie E. Fourton
will be admit¬
ted

toll

Wall St.,

York

and

building

S t o

materials

ran

formerly

Leslie

tail

trade

volume

the

reported

re¬

Carl M. Loeb,
'•

week

street,

fewer
year

concerns

year-ago, according

inched

ago.

business

casualties

to 51 from

49 in the

previous week but did

J.C. HE 5-9400-02

reach

J.C. HE 5-0420-1

not

quite

similar week last year.

Teletype: 201 432-6627; 201 432-6628

the

Wholesale

Inc.

varied

levels
Canadian

reported

the

Food Price

Index

Stone

estimates

comparable

1962

ages:

by the following percent¬
Middle Atlantic —6 to —2;

New

England —5

tain —2

tral

—1

+ 10;

with

Rhoades & Co.

■*/">;•

•'

♦

•
*■

COLORADO

SPRINGS,

Colo.

Apostolas has become

associated

with

Johnson,, Lowry

Co., Mining Exchange. Bldg. He

was

to —1; Moun¬

formerly with Copley & Co.

+ 2; East.South Cen¬
to:

+3;

West

Joins David Means

North

+3 to. +7; Pacific +6 to

East

Central

North

+12; West Sbiith Central +12 to
+16; South Atlantic +13 to +17,

Index, compiled by Dun & Bradstreet, Inc., dipped .0.5% .to $5.89
on1

This

Jan. 22.

Underwriters •-+

the lowest

was

level since the first week of No¬

ESTABLISHED 1929

vember,
MEMBERS
New York Stock Exchance
American Stock Exchange
Midwest Stock Exchange
Commodity Exchange, Inc.

$5.94
As

and

down

0.9%

BANGOR, Me.—Paul H. Blinkinsop

has been added to the staff of

David G. Means, 6 State Street.

from

well, the index remained sub¬

Mutual
+

CORPORATE, MUNICIPAL & FOREIGN SECURITIES

At wholesale markets this week,

ham,

eggs and steers were quoted

bination

120

i 'EL CO.j jj) New York 5, N.Y.
iJ

Broadway

Telephone

Teletype: 212
Emanuel, Deetjen
Viale

Magno.

Milan,

571-1667

Digby 9-0777
Cable

Address:

EMANSTOCK

Italy

Emanuel,
10

Avenue

Lausanne,

Deetjen
de

S.A.
Gare

Switzerland

Emanuel,

Deetjen
Roots

Nassau,

■

Co.

Bahamas

six

thie

higher

cost at wholesale for

flour, rye, lard,
The

■.

Dun

cocoa

Ltd.

pound

and hogs.

Bradstreet,

raw

Inc.

foodstuffs

and meats in general use.
a

It is not

cost-of-living index, a: Its chief
function is tp . shojw+the,general.
-

+..

: y "

PRIMARY MARKETS

Bank and Insurance Stocks •

Christiana Securities Co.

i+. Unlisted Securities

declines

Wholesale Food Price Index rep¬
resents the sum total of the price

>' '*

BIdg.

these

»,,<!, -riO'.u\

.k*:' ~-v

com¬

outweighed - by : a* narrows margin

per
S.A.
21

The

Management Companies

;

appreciably lower, and mild dips
were
registered
in
prices for
wheat, oats and lambs.

Fund

$6.15.

UNDERWRITERS—BROKERS—DEALERS

Dealers ++ Distributors

Corporates and Municipals

;»

the similar date last year.

stantially below the 1961 level of

—

George P.

After
five
relatively
steady
weeksl, the Wholesale Food Price

Emanuel, Deetjen & Co.

Incorpo¬

With Johnson, Lowry

to spot es¬

Regional

from

Central

Slightly Ubwer This Week

den,

E. Fourton

Co.

dollar

officer of Hay-

even

however,

Mr.
was

rated and priori thereto was
total

Ex¬

Fourton

timates .collected by Dun & Brad-*

had

cities

as many

ranged from 4 to 6% higher than

change.

last year.

The

the New York

declines as ^ reporting
gains. Hardware, garden supplies,

with

New#

Gityf

members

see-saw

106

•DelafieTd, 45

reporting

higher; than in

moved

Delafield

in¬

Activity

part-

h i p

n e r s

boost

moderate

and white

followed

goods

retail

'++'.<

shoppers called for apparel

prevailed.

for

ago

principal

to the week's forward movement.

creases

totalled

year

continued

considerable

January > weeks,

the

Cleveland,

average

than

country's

absence

though

spread

the

Even

four-week

the

can

severe

similar week

retail activity
a

the

gains

geographic•re¬

ran

preceding week. The Middle

failing than

Members New York Security Dealers Association

DEPT.: N.Y. BA 7-4300-12

ac¬

from

dip

from

major

gions, failures
Atlantic

N^J.gy

CASHIER'S DEPT.: N.Y. BA 7-6740-44

suffered

Auto buying

gave

con¬

from 87 "and the Pacific edged to
68 from 64. All; except two
areas,

Established 1919

TRADING

had

North Central States plunged
cpurse, With hbbut"

Atlantic

S.WIEN&CO. INC.

regions

29 frohi 72 and in the South

JERSEY CITY 2,

others.

storms in the

pace

year.

strikes

news

registered

sales

ap¬

plagued

tremendous

gions which

While

counted largely for the week-toweek

East

weather

and

been

strike.

One

week.

to what the sales

transactions

over

comparable week last

weekend

some areas

ice

although

16,

with slower z^est than in the first

geographic

Two

PHILIPPINE SECURITIES

BANKS. BROKERS

agd in other

year

industry arid trade groups.

UNLISTED SECURITIES
>

suc¬

ended

maintained

still

some

week

volume

year-ago.

timated at 18,110,000,000 kwh., ac¬

lost

the
Jan.

flects

some-impressive

last

have

the

strike

Wednesday,

were

only speculate

Moderates

conducted ..by the ATA De¬ distributed by the electric
retailing
casualties
light downturns,
partment of Research and Trans¬ and power industry for the week continued to rise, to 142 from 132,
port Economics. The report re¬ ended Saturday, Jan, 19, was es¬ and commercial service climbed

handled

day.

would

preciable margin

areas

tonnage

Upsurge in Consumer Buying

fell

unavailable this week.
Electric

249

are

effect of depressing

volume at Eastern and Gulf ports.

against

However, these smaller

casualties

Note:

yearly lumber production,

of, the past few weeks.

still has the

Editor's

246

week ago.

Lumber Data Unavailable

significant improvement
findings

numbering

years.

year-to-year increase is

level

1962

servances.

consistent with the pattern found

corresponding

274.45 for the similar

Wi LklBD, BlSSELL;ISljAEEDSil
Members New York and American Slock Exchanges

120

BROADWAY, NEW YORK 5, N. Y.

Telephone BArclay 7-3500
WILMINGTON, DEL.
SALISBURY, MD.
DALLAS, TEX.

Bell Teletype 212-571-1170

;

PHILADELPHIA, PA. NEW HAVEN, CONN.

SALEM, N. J.

DOVER, DEL.

ZURICH, SWITZERLAND

197

Volume

Number 6232

The Commercial and Financial Chronicle

unusual

Consumer Is Not at Fault

(313)

laws

changes

11963,

nificant

increases

outlays, and

For Sluggish 1963

charge

causing

Dr. Slesinger

uneasiness.

economy's

the

sluggishness

and

He postulates a $2 billion

GNP rise for each 1% over-all tax reduction;

Now,
G.

policy aimed directly at the consumer as though he is responsible for
sluggish

our

economic growth.

The economist

the forecaster attempt¬

about

sectors.

the picture.

increase of

major components of

between

state

and

local

units.

State

and

preview

business

for

the

course

ensuing

annual

increase of about

This

year.

con¬

increase of

increase

and

number

increase

un¬

that

fis¬

first category, we include the vast

for

forecast

circum¬

these

comes

be¬

pre¬

carious under¬

taking.

for both

But,

the

attempt

will

of purchases by consumers

array

business under

stances

Dr. R. E.

Slesinger

replacement and

vestment purposes,

factors

made

in¬

new

including such

purchases of producers'

nonetheless. It may be well to be¬

durable equipment, new construc¬

little retrospect. The

tion inclusive of residential build¬

gin with

year4 1962 will set new highs
maapy £reas;
the

year

show

omy

particularly

At best, the

econ¬

enjoyed a modicum of pros¬

perity, but

the

ex¬

gain

outlays. The net

category. In general, the putlobk

services

top, of

sluggishness in business activity.
begin with the Gross Na¬

tional Product—the market value
of all the goods and services pro¬

duced—the estimate that is fore¬

1963

for

seen

$568 billion.
:

interesting to note this situa¬

approximately

and

G. N. P.

has

of this

sector.

must

Again,

posed:

purchases government

the

question

where

does

the

funds

get

the
it

goods and services will prob¬ spends for goods and services? To
ably increase by about $4 billion the extent that fiscal policy em¬
as

the

national

gets phasizes

government

increased

spending

and

specifically involved in try¬ is associated with transfering pur¬
ing to reach the goal of full em¬ chasing power, the major effect

ployment with fiscal policy
significant

tool.

Thus,

the

is more in the re-distributioil of

purchasing

com¬

about

$7 billion,

aggregate

$125

reaching

billion

Federal

rather than; in

power

of much of a net flow

goods and services.

new

al¬

Failure of Business Spending
To Rise
...

And

now we come to the third

sector of G.

domestic

for

P., gross private

investment,

between

accounting

and

14%

G. N. P., but by far the most sig¬

nificant

especially

component

fluctuations

spending currently re¬

this

area

the

goods

be¬

and

corresponding

help

summarize

these components of

G. N. P. and

how

will line

probably

they

for 1962 and their

for

possible future

1963.

apparent

from

quick

full

glance at the figures in the table,

employment level. Indeed when it

1963 should be much the same as

is analyzed in

inade¬

income

and

spending

is
not
the
of the current uneasiness in

cause

business.

the

repetition

al¬

announced

ready for early 1963 by the Fed¬
Administration

inject
the
A

spending

concern

not

into

in January.

stream

itself with the real
power,

activity.

source

namely busi¬

The speed-up of

benefit, for example, does

create

best

trying
power

fundamental issue should

purchasing

veteran

purchasing

power;

only transfers purchasing
around among those who

power

have different marginal pro¬

may

pensities to consume and to save.
Some question may be raised as

1962 in

all the data
nor

depth, it is not

even

not yet available

are

cheerful

to assume

that the

about

1962

$556-557

N. P.

billion.

might

2.5

over

when

about

complete, it is reasonably safe membered

will

how

will

long

willing

consumers

current

consume

aggregate. In fact, there is levels. Increasing evidence ap¬
at all.. Although little especially to be boundingly
pears of the reluctance of con¬

optimistic

very

that

population,

sumers

incur

million during the year.

instalment

especially in view of their

debt,

increase uncertain

expected

re¬

too,

income

future

pectancies.

forecast

does

not

call

for

much gain. In fact, thete may be
more

uneasiness

the

economy

ter

1962,

about $560

reaching

rate

on an

too, will probably show little im¬

pattern.

provement,

perhaps

billion

two.
Overall Outlook

this

stage

that

iyfe?''#■&■ *r.i

li'.'

falls behind in its long run growth

Public Spending Has

Not

Now, as to government spending
there —the second largest component of

Before looking at how some of might be a more positive program G. Nil P. An increase of about $7
specific components of the undertaken by: the government to billion is expected here,, too. Gov¬
Gross National Product may be induce a higher level of activity. ernment
spending for national
expected to behave in 1963, let The current forecast is made on accounting purposes is not the
us look at the overall picture.
In the assumption that there will be same as governmental budgetary
I

outlays

Sector

Govt,

$358

Net Change;.

$365

purchase of goods & Services

118
77

Net

exports of goods & services

since

transfer

included

they

are

ernmental units

and

nearer

Only 10

;

payments

the

former

the

$556

$570

♦

•

iw.

v" \ *■'•»

v" ,J-A!
(J,. \ ' ^

Cash and Due from Banks

»'

jj'-tV

....

U. S. Government Securities

.s■-<-1

•

: XV"

.........

State/ Municipal and Other Securities
Loa n s

31,1962
t&

RESOURCES

$150,002,771
84,564,139

66,742,703

249,799,878

•»

Accrued Income Receivable

Banking Premises and Equipment;

Other Assets

...

1,890,621

......

6,282,362
937,424

$560,219,868
LIABILITIES

Deposits

Deferred Credit due Federal Reserve Bank

$481,921,308

17,936,887

Reserve for Unearned Income

...

Reserve for Federal and State Taxes

Dividend Payable In January 1963

5,123,297

2,610,644

...

Income

573,375

Other Liabilities

8,632,712

Capital Funds:

Capital Stock (Par Value $12.50)

$13,031,250
' 22,000,000

•

Surplus
Undivided Profits
Total

Capital Funds

...

„

*•

8,390,425

latter.

years

government

the

getting
Federal

43,421,675

$560,219,898

ago state

nearer

total.

'"1+14''-v

tional

THE

CONNECTICUT

and local

expenditures

AND

TRUST

BANK

COMPANY

were

approximately half that of the
Total

Spending by state and local gov¬

+ 7/.

125

Gross private domestic; investment

not

although

Forecast

(In Billions of Dollars)

Consumption expenditures-.,-.—.,

are

1963

1962
Probable

$499,858,195

the

vVV'-"-..

Pushed GNP Growth

G. N. P. and Components, by Major Sectors

part of gross private domestic

annually investment.
//y ( .xpft'iif
adjusted basis. The second quarter,
billion

DECEMBER

industries

Service

Condition

Statement

ex¬

Hence, the estimated increase of Thus, on a per capita and real should show better relative gains
some
$10 to 12 billion is only basis, the outlook for 1963 is much than either durable or non-dur¬
about 2 %^ar lower than the his¬ less optimistic than the $14 billion
able goods industries. The $7 bil¬
torical rate and much belowr the increase at first suggests.
lion gain may be expected to be
rate of growth necessary to absorb
In terms of the year itself, it divided
about
$3^ billion for
the ever increasing labor force. is likely that G. N. P. will increase
services, two for non-durables,
In addition, it is likely that the
by between one-half and 1% per and IV2 billion for durables. It
price
level will rise; ; between quarter, with a better showing for should be noted that consumer
1 and 2% in 1963, thus wiping out the last quarter. It is unlikely that
purchases of new homes does not
most
of
the
apparent gain, in the first quarter of 1963 will be
appear under this category in na¬
G.
N.
P.
Thus, in real terms, much different than the last quar¬ tional income
accounts, but rather
1963's

exert

highs. The

new

that

consumer

ness

will

This estimate is far below

balance

net

exports

The accompanying summary

table

* '

the

foreign trade

imports.
r

then,
of

quacy

setting

are

answer,

eral

but not for transfer

government,

of the sensitive represents

many

for 1963 seems tp be one,

the aggregate

This becomes important in view

purchases of goods

and services includes all levels of

tween

gain of between 4 and 5%.

outlays

Government

indicators were not in the buoyant

this

sluggish in its rate of growth
in spite of a steady increase in

approximately $3 billion.
Government

from

pressure

tion

ventories.

will mot; be recorded: in

business; annals

in¬

hi. ing, and changes in business

of; the economy^ Yet,

prosperous one.

It is

The

Federal

flects two big influences, aside marginal influences on the totality
in
connection
with
public
from the normal costs of operat¬ of business : activity. The maj or
policy directed at alleviating the
for a host of items covering dur¬
ing the traditional governmental types of expenditure in this cate¬
able
goods, semi-durable items, Sluggishness in the economy. The services. One is defense, national gory include outlays for construc¬
record shows less than full em¬
tion (residential, agricultural, and
non-durables, and services. Under
security,
and
associated
items
ployment
and
general business
gross private domestic investment,
Continued on page 83
which have shown a steady in¬
outlays are listed for investment uncertainty even though consumer

gencies and so
a

net

been

cal policy, and so 1963 can be

—

much in total G. N. P. data. In the

decade.

use

in 1963.

year

contin¬

last

the

Again, it is important to note

is
of

considerations

—

many

the

increasing

score

most 22% of total national spend¬
of G. N. P. we may consider three
is significant sectors, namely per¬ prices of the existing level of purr- ing. This percentage compares to
confronted with a great deal of sonal consumption expenditures, chasing. Consumer outlays have a low of less than eight in 1929, of
been very important in keeping
u ncertainty
':V ;;
gross private domestic investment,
about 15 in 1939 when the govern¬
the economy from showing a net
and "iffyness."
and
ment was exercising the obligation
government
purchases
of
drop in "recent years. In. fact, each of
The outlook
goods and services. A fourth ele¬
"pump priming" that it had
for 1963 is
ment
net export of goods and year produces a new record" in assumed in the 1930's, and about
consumer purchases, 1962 showing
clouded
with
services
does not amount to
15% after World War II.

ing

approximately 2% will bined total increase is estimated the creation

units

about

probably be divided fairly evenly

terms of the

local units have been demonstrat¬

Federal

Personal

will

$63 billion for the Federal Gov¬ spending as a contra-cyclical
tool,
ernment and $55 billion for the and it is
apparent that there will

to the specifics of the

second

probably

possible $10 pected

$7; billion is expected here. The

Government spending.
more

nate

private domestic investment for 1963 is estimated at approximately
the. 1962 figure and that GNP has been sluggish despite increased

Once

sumption expenditures still domi¬

that gross

notes

for the

rate

Consumers Are Not the Culprit

singles out business

crease

division

mid-year. $3-4 billion

should

the final quarter,

activity as the real source of purchasing power; and questions public

quarter

$565 billion, with

projects a $10-$12 billion GNP increase

changes for the year.

the G. N.

approaching 90%. For 1962, the

be expected to ing

may

billion increase to be expected for

1962 to $568 billion in 1963 assuming no unusual tax or Gov¬

over

ernment spending

government

war. But, exist¬
ing governmental fiscal and mone¬

third

business

tax

sig¬

drastic change in

Thus,

Analysis of this year's economic prospects absolves consumers from
the

exert more influence by

•:-it:"-'

the

the tenor of cold

tary policies

_By -Reuben E. Slesingeiy Pro/essor of Economics, University of
Pittsburgh, Pa.

;

Erospects

unusually

na¬

government; today they are

MAIN OFFICE:
Member F.D.I.C.

HARTFORD 15.

CONNECTICUT I;

Member Federal Reserve

System

Creating

Betiid
Tomorrow

The Commercial and Financial Chronicle

(314)

Continued from page 1
/

V-

/'»/}

1,1

y'•!

A>.

«■"

HON.

•

I*,",

faster pace.

■-I *

;'s.V J

t* tf

<i'-'V :« ■

for

in-

new

are

services.

>vev

exhibited in

toward

and business loans

are

Favorable response to the federal income tax reduce

tion.

Y^ight.;

loadings

philosophical- strricture

gaining. There

More modern industrial

and

reduction

corporate exactions will be

facilities'will also increase

our

and

productivity arid permit - larger labor and, business in-

industry.

markets.

-T*

\We. will need the additional incentive from tax.reduc¬
tion in the

new

But

year.

importantly we need the

continuing stimulus which lower•: faxes; will give us to
generate more sales, expanding job opportunities, and,
better profits on a long-term basis,
*
;
,

'The

Hon. Emanuel Celler

//ri tremendous impact

the

sound stimulus to. business

our

CongresrWiU be

new

surer

HON, HARRY F. BYRD

ness

U. S. Senator from Virginia

Chairman,

Finance

Senate

/,—
v

whether

they

;/ -

There is only one reason for high
federal

their

expenditures.

all-time high,

penditures
If

expenditures

at
ex-

+'■

are

but federal

higher—by

are

federal

Taxes

/ HON, HAROLD D. COOLEY
u.

justified, but to reduce taxes in

a( deficit

situation

would

debt

billion.. Interest

running

proximately $10 billion

$300

at.

ap-

War

are

reaching

now

Harry F. Byrd

without tax reduction. Businessmen know

than accomplishment of this objective while
Chairman of the Senate Finance Committee.
:

predicated

balanced

justifiable

federal

levels,

with

income

citizen,

planned/

government continues
be

could sup¬

present conditions while the
a

deficit

spending basis would

totally irresponsible. If expenditures

tax

were

cut

first,

reduction would certainly follow.

Expenditures

impairment of

could

and

should

reduced

without

essential and proper federal function.'
In the two fiscal years since
July 1, 1961, they will have

13V2%.

In view of the situation

vinced

that

should

precede

sharp
any

How

long

can

stands, I
in

federal

the

answers

Federal

con¬

these questions:

Government

spend,

borrow at the present rate?

Are

firmly

expenditures

major reduction in tax rates. The

alternative lies in the

and

When will

permanent

the

tax,

....

come?

was

farm

is not expected to

1963

prevailing in 1962/ The

last

•

some

With

the

general

slightly higher level

rise

that of pop¬

anticipate

can

well"

mean

demand fori

income'.

consumer/

agriculture;/

expected that

••

In--

some

gross/fatria

♦

i^/^

experienced in

Hon-A. J* Eiiender

1962,/hut,''

jthe;

the

all

.sources

:ipate /a

prospects

•/ Last

;

Hon. H. D. Cooley

■

;

/;. was

programs;

non-

adopted by the

Little change in the volume of
crop sales is anticipated.
On the legislative
side, attention will be centered

permanent feed

grains

program

re¬

place that expiring at the end of 1963, proposed
changes
in the cotton
program, and possibly the dairy problem.
The

new year

will

see a

tion

pickup in efforts

to broaden

area

facilities

serve

set at 18.1*

was

acres;

Price

supports have not;

readily see that with a re-;
duction of almost two million aeries asharp drop" in "farmv
/income for; cotton will occur iu. the latter part of^ 1963:

■J when

steadily-growing i need,

and

new

at the

crop

same

we:cam

is marketed

level

even

last year.

price, supports

However, if-

new

are:

legisla-:

r.tion. becomes* effective for the-/ JL963! crop: the Income*
picture may change materially/
;

(

The record level of exports
experienced in JL961
1962

record level of food and fiber exports,

set at 16.3 million

been/announced but

expected increase in farm marketings next year
largely in I livestock and livestock -products.

the national acreage allotment

year

•

primarily

/ / million/acres,:and. price support levels at 82 % of parity.
/ / This year because, of a
buildup:in.supplies,- the allotment-

Congress in 1961 and 1962 to bring feed grains and wheat
supplies into better balance with demand.
The

can expect .that

legisiation.:

;

the effectiveness of farm

prices. will remainthey ,were last .year; A .question ,mark hangs,
/Oyer, cotton because of /the pressure for new

./about

continuing -rise in domestic food
consumption reflecting population growth," an extension

I of the current

grain/'prices.-

that will be.,a; little below anticipated;
demand^ fpr rice; will /be/

Because ; the

/relatively strong. we

for

because of. a crop

/;> disappearance.

of .tho per capita^ income of the

population.

feed

v-pressure, qu

/ Wheat prices 'may /also/be /slightly .higher, than support-

.of/.;.
,/

of persons liv-

Slight * upW^rid

•

derived from other than;

can-'expect * to: see

/// / With the iricreased/number of llvestoriik; to be. fed and.
: / a
feeding rate that/ls^constantly, increased we/can rintic-;

situation,,

of'solving

1961./Incidentally, this,
i953. v /
/ •
i

level of income is the highest/since'

In/1963, with respect to the. inajor conmiQdities: we
a slight easing of/beef
cattle prices^
/because; of an -expected increased slaugLhter, .The same!
-1 outlook prevails for; poultry and" jeggs. and for/ hogs/''
;

:
> ; /, •
; * ";r
;j
:
Total- farm income still is: running; $2
billion; to $5
billion a year below the income of 10 years
ago/; 'n •/
On the bright side of the
agricultural picture for 1963
are

Agriculture and Forestry

$12,8 billion realized in 1962 and

•

1953;/;:;' 1

opportunities outside the traditional farming
field. This will include
development of outdoor recrea¬

deficit basis?

breaking point

•

ing bri^farms/ including income frbm non-farm sources,

rural
we

Since

income

short

part-time in town,

will

reductions

falls

Per capita income

/. ; and

any

risen $11.1 billion

the farm

is less than 60%
us

; -

under

known

members of his family working full //
or

This is the kind of tax reduction all of

cut taxes

still

-rising farm costs will increase somewhat with the result,
that • net farm income will "be -aboqtl'ihe same as^

the level - of

■?. farm sources, such as the farmer or

port. It would stimulate confidence at home and abroad,
and this is seriously needed. It is a
goal worthy of the
But to

From Louisiana

standing

rate

last year

cteased

public debt reduction.

effort of every

which, may

a/ net -income

irom

slight lift

$1^73./MoreYthari/rine-tlrird^^^ri

budgets /with

and

have

population -from"

But constructive tax reform arid, solid tax reduction*
be

Senator

the

same

than' that

capita. personal income for the farm

me • more

expenditures

disparity between farm and nonfarm

desirous than I am; for; constructive
tax reform and solid tax reduction; Nothing could
please

must

we can expect some

growth.

further

•

earnings. The 1961 net income figure j
of $12.8 billion breaks dawn to a per/:

No one is ■ more

than

i:The 4rend; Represents air^improve-/
but

chronic deficit financing is not sound fiscal policy.

This would represent

ment

There was a heavy deficit last year. There will be a
hugo deficit this year, Another deficit next year is prob¬
or

farm people. It Is aS

niir

I//come in 1963 will be slightly higher

Agriculture

nation's::fariners should. realize

farmers
Sen.

accumulated total of $36 billion; /

able, with

ulation
economy

-1961-62; ;Jthe bestr inepme; years >our:/

federal deficits since the end of the

Korean

about the

around; $13/billion: in f 1963 if^ growing; conditions across
the country match the productivity, of recent.years,;/ /'
;

Net K

year.

exceeds

our
fr»

a«

mestically in 1963 will increase

Congressman from North Carolina

-/ Chriirmari,/ House .Committee

The

td be paid with interest.
federal

our

of'

prosperity

underdeveloped',
cities in rural America,'
great

Consumption of farm products do¬

simply

charge the cut into the federal debt
The

sprightly, fashion,

although

changes

heights.

re-.

income win be about the same
y

this,combination, I would not be surprised
general ecqnomic growth should soar to new

our

duced first, perhaps a tax cut could
be

iri;

billions.
were

•

In 1963, with

federal taxes; and that jreason is high

ers

Department ol Agriculture forecasts that total
demand,'
supply and prices for agricultural products and farm

plan" that* may be charted
^ the. natioa by some central authority. We. have ^an
economy that is distinguished by its exceptional diversi¬
fication supported by seemingly unlimited natural re^
sources.. On. the, whole, we .are a highly imaginative
people, full of .vigor and these. factors are unbeatable.

be made within the bounds of

can

fiscal responsibility.

The outlook for agriculture in
be greatly different from/ that

ithout any so-called master

will; be a major subject before the' <5onarid the Country this year; but thri question- wUi,

if; f a r'ni

—-

'/specific commodities.

will go forward

npnnlp

to city people,

ecpuragement to busi¬

There

Chairman, Committee

and industry.

/ T believe

Committee

Tax reduction
gress

is usually, unfortunately,

basic' iri the

HON. ALLEN J. ELLENDER

gress

r»itv

incline end

we may be that'1963 will be the beginning
and. will embark into untried and new frontiers first,
long period of rapid' economic; growth and rising/,
only with .reluctance and second, only under; the strong
prosperity for the American people,
whip lash of the Administration. A conservative Con-

the

;

formm-c
to our farmers +V10+ as
that,
national policy, we remedy this situation.'

conservative at the last

'agriculture

because of the low income of

confidence will develop.

The

feeiin|g?

upon the health and

total~ economy.

jmnnr4.anf
important

J think it will c°htinue in that, direction. More Investors
will /venture into the stock market. A strong feeling of

economy

market for the industries of

JMore_ funds mil be avanable for new

The stock inarket has already indicated

releaise the tax brake

sooner

Yof Wie Commercial and Financial Chronicle,,
sl/thought- •
U.ful1 and select group, thrit the a gricultural
ecorioriiy has'

equipment: and machinery. Personal income
already
high, will he greatly expanded and will be* used to en¬
hance consumer purchases which in turn will further
accelerate, the; economic machinery. There will be greater
income to the government.

and improve our, ability to compete in world '

couldn't generate optimism, they wouldn't be farmers.

comes,

\ They are. too often without .any. other incentive^.
In conclusion, it should be
ernphasized to the readers

Thisjis considered

brackets

4 *

fleet" optiiriism for: 1983^ ,This

in S rill

efficiency is npt in

by. business,
tion program which .the President will , recommend to '
government, and labor to be quite
the'Cohgress is imperative-i-to expand consumer buying
power still further arid to increase the incentive for /; essential, for sustaining a sound peace
time econpmy. Reduction'in taxes
business to invest in hew arid more modern plant and

equipment, and in inventories.

made Ameri¬

one

*!'i'l'"',:'^yearren^,-*ppir-.of;fatovf^miiie$vWQ}^d-;prQ^^ly:-r^

widened support for tax reduc-

problem and

^Sremendpu^/grovrib |in productive

agriculture both

technical

and

;/ I940 one farm worker supplied^ood and fiber for about
5 iri persons Novir hri supplies 27,; /and /the' end of this
-

peak:/ Steel

new

loans

needed
■

/"fqrce^iif ^"dropped^

breaking records. Construction is/

putpyt- increased//Freight

enterprise system

■Bj//

locally initiated and propelled, with

providing

to grazing and tree farming..

crops

/ In'the; last 69 years the percentage of the national labor

it, all i ■MMBH■

will get back into* the:
was

from

of the jnost
shining examples of free enterprise will not end in 1963.

/;/ ,/••.

•/:-"/

Thursday, January 24, 1963/

The technological revolution, which has
can

early post-war years. Auto 'sales-

moving

thesustained/ higher rate of/growth
is capable.
/ ' V"

to; achieve

of which our free

reach

future.

rosy

are

But these are not enough.
we

will

1963

the

the effect of these incentives in the new year..
Further, aqtion is necessary if;

see

economy

I understand

planning*.for .a.

expansion rate that

vestment and. liberalized depreciation allowances, and we

should

our

ahead quite fast. They have been greatly
the. statesmanlike qualities manifested

Cuban crisis. As
are

Important steps have already been taken to stimulate ; /;/ I think
business investment through the; taK* credit

land

These efforts will be

government

that

by President Kennedy in the recent

/"/•''.

•

move

encouraged

expected to increase sufficiently to give us full employ¬
ment. So we must stimulate the private economy to move
ahead at

confident

ready to

cannot be

economy

our

shifts of

high levels. Business executives and factory owners are

of our manpower and material resources.

demands upon

Government

enough to propel the economy to

been strong

have not

full employment

CELLER

U. S. Congressman From New York

and government .demand./ But together, these

consumer

EMANUEL

will be maintained

modities

will

alike.

1963, although not all
We

well

may

see

and

com-

increased

exports of soybeans, food fats and oils. Wheat and feed

grains, however, will likely show decreases because of

improved supply conditions abroad
rate

cotton

economic
are

growth in
about

the

and

major nations.
same

the

slower

Exports of

1962,

but

new

legislation could change this.
,

Public

Law

480

1962 about 70%

the rice, 24%
oils that
In

modities

are

wheat, 23% of the

corn,

fiscal

44% of

of the cotton, and 29% of edible vegetable

were

general

exports will continue high. In

of the

exported moved under this program.
stocks of agricultural com¬

carry-over

expected

down

total

with

change in individual commodities. The feed grain

some

carry-

Number 6232.. i;; The Commercial and Financial Chronicle

Volume; 197

new equipthe Kennedy;- Administration took a step
I in this; direction but it was/ a
short, halting step; We
The economic climate for 1963 remains to be made: it
:
should grant such, tax relief unrestrained by the antique

by about 14 million tons, the same as

U. S. Senator From New York

expected to be lower. However,

of wheat are

Stocks

it' is anticipated that stocks of cotton (will increase
inaterially over last year^;as will stocks of dairy^products

dairy products w)ll offset this saving

stocks of cotton and

somewhat^

„v(

materially cut storage
government.^However, increased

the

and interest costs to

waves

i/ticipatipg^h the ownership" of; the plant Misemploy*
them "by systems of profit-sharing and restricted stack

crashing against the national security
of the United States. It

listless, hesitant

little br be increase in pet barnv ^

is boom amid

options. We should think about

and act upon a whole
variety of measures, both governmental and non-govern-

economy.

the circumstances,

Under

what is

^entai;"fwhich/ would

wise policy?

HON. ORVILLE L. FREEMAN
.

Secretary Of Agriculture

diate

ciation

home

bushels to 1.3 billion

this

urged

idea alone.

was" favored

The
i

relatively

continued

product-feed prices ratios will result in

livestock

total

during the 1962-63 marketing year
1902/ cro&s whicir wa$ hel4 :down by the:
!l962r Feed Grain^Program. This should result % ahbther
reduction in the carrover, possibly by as much as the 14
^million tons in 1961-62.

■.

•

by, the

with

United

full

our

continue

cross-section

return

who

reasonable

and

profit

American people. Help

of the

specifically,

government

next July.

These declines may be
creases,
'

see

both feet

products; But het declines in! carryover/stocks

believe -that with

pected to further reduce Commodity Credit Corporation
investment. This

reduced by $380

was

1961-62 fiscal year.

are

expecting

Continued

-V.

DETROIT, MICHIGAN

•

Farmers

have just

completed another good year for

earnings income—realized net farm

rose

Statement of Condition,.December 31,

RESOURCES

pect it to stay close to this improved level in 1963. Per

Cash

capita personal income of farm people from all sources

Prices

and net income per farm were at record highs in 196?,

farmers and

cash

! State and
/
•'

receipts

from

were

around 1 to 2 percent above 1961.

••

mostly
This
and

increased

slightly lower

.*■

Other Real Estate Loans^*

high rate of Government payments

—.

food
use

and

other

farm products

expendi¬

2,636,128.76

^ $504'714'842 26

1963, with

Surplus.,»f•

about 1^ percent—

Reserve for

quantities

are

expected

take

agricultural

commodities

year,

ii-.

near-record

this

9,000,000.00
7,766,334.42

2,111,970.87

Contingencies.

•;

/.?:•!*,

v'sr,;'r

sJ.
•

As-'.r---..;.!
J} \
>J

27,878,305.29
$504,714,842.26
,.«V.

;

'*>

■

(•!

•

f- r>g{

$19,071,228.47 Book Value Assets pledged
r

TOTAL LlABILmEB
w

....

-V-V

frti

&■'i''X.

i:''

Vv-X

"K}1

« rri

assigned to secure liabilities

and for other purposes including deposits of the State of Michigan

al¬

^.^QDOfOOdoe';;^
-

•,

Total Capital Account...............

expected to continue rising in 1963, but

markets

Undivided Profits.

by less than the gain of 5 percent from 1961 to 1962.

Foreign

-$46$,294,548.46u«'•8,541,988.31

Deposits* ..;..,*,»4>'»• *.»V,*{*-;•';>•;«

are

4,510,140.85

879,153.23

OtherLlabilitiesv^»4:*^t«r«*>;M^*'**v
:Cpmmon;Stbck;!^;;*i!*i'.;;:^;w

about in line with population growth. Consumer incomes
after taxes

$184,805,636.65

LIABILITIES
-v

of farm products up

farm income." But

A further increase is expected in consumer

for

3,630,987.62

TOTAL RESOURCES.

(

Other Assets.

duction expenses.

tures

;

Furniture and Fixtures

26,548,856.31
12,046,286.68

this increase may be offset by a further rise in farm
pro¬

domestic

100,000.00

]y',( *

3,000,000.00

Banking Premises.

level of farm product prices.

further small gain in gross

89,433,2^2,57.

.-.V.

TotalLoansandDiscountSiv,.r..«r.»

40,313,708.471

•

540,000.00

Federal Funds Loaned.,;..,..

little change in cash receipts from marketings

and maintenance

indicate

average

•

.Real,Eslate'loans CF.H.A.TitleNo. 2)..*.

products.

suggests some decline in average livestock prices

However)

Other Bonds and*. Securitiesi

Other loans ta Individuals and: llrm*,.U)»c
.

than in 1962, due

marketings of livestock

$271,809,227.33

....

Municipal,Bonds..'*!.«

Stock of Federal Reserve Bank.,...,..

•

Small changes are indicated for 1963. The volume.of farm

marketings is expected to total

*..

^ *h':.
5,068.22, .
220,748,159.31

;c';:;.Collaterqlioansvr»0,.,^«;»;^*»;«v*'

fv'

marketing in 1962

Hand, Doe froinvQHisr &onks...

Total Cash and Gavt. Obligations.

received

United States .Govt. Obligations,'.....

further increase is likely in 1963.

some

;

to $12.8 billion

in 1961 and continued at the same level in 1962. We ex¬

and

Deposit;"

Insuroticef1 y

further reduction
,•

in 1962-63.

'Member*

million during the
a

in the amount

$2,085,569.56.

though slackening in the rate of economic growth in
major importing countries and Common Market
restrictions may limit exports of some of
ties. Grain exports in 1962-63
than in
abroad.
crease

are

our

trade

commodi¬

BANK ,/& COMMONWEALTH

expected to total less

1961-62, maihly because of improved supplies
On

the brighter side,

in exports is

and oils. And
ued exports to

our

substantial further in-

MAIN OFFICE, GRISWOLO

anticipated for soybeans, food fats,

export program will promote contin¬

help maintain total agricultural exports.

- -

•

will

move

into

flying.

proper, measured and far-sighted

must come

Federal

System

this

government

foothold.

Federal Reserve

ar^ ex¬

imple¬

way,

opportunity resides, this is where our prod¬
ucts, our services, our financial skills must establish a

Member

and probably dairy

must

economic

partly offset by prospective in¬

to it that American

can and

possibly 100 million bushels,
'
"
)
i.

in carryover stocks of cotton

and

credits,

wheat in l962-63 are going to exceed the-1962 crop ancl
in the carryover

Trade

market.

positive

^$And we'.believe that-prospectivevuse and exhorts of
lead to further reduction,

the

veloped countries. This is where the potential for future

their

care

Finally, we must get the vigor and skills of private
enterprise^ into: the field of foreign aid to the less de¬

represent a broad

national

emergency

States

strength

trade act to that end. In

the battle for markets with

shareholders,

whole

the vast opportunities of interna¬

private business, big and small,

fresh, thorough examination is essential to deter¬

and

in excess of the

the

President

guarantees, and tax incentives, to

policies

of today.

Many American businesses simply cannot modernize

feed grain utilization

that

given to the

represented

means,

ductivity, U^; Sv^lpngUrange economic growth and U. S.
trade, foreign investment and foreign economic poUcy.

Hon.o,L.Freeman,

measures:whiduwouldreduce .the great bargaining

ment the

mine the impact of our anti-trust laws upon U. S. pro¬

for. feed
favorable

requirements

Increased

authority

tional trade

and

see

must be able to grasp

^owix
group

bring our economic

would

Expansion Act of 1962 must not be vitiated by short-

essen|iafcafev£i

the national

need for extending federal
payments when state coverage expires.

almost

into rapport with the realities
_

which

power

not

and to keep

the ^specific

term

was

Clustered, around,this one

July 1,1962,

production.

spur

of other measures needed to

million

109

reduced

was

and

power

system is fair and sensible and which would take

equipment and corporate tax rates for

system

high,

badly need comprehensive,
permanent federal standards of unemployment compen¬
sation

y .Hon;J. K.Javits

depre¬

Jand foreign business* These steps would loose &
sluggish

agement.

grains carried over into the 1962-63
wheat

and

further

accelerated

new

lowest

and

economic-adyisois,orgaize&labdr*

marketing year.: And the carryover
of

the

groups

erery;/deadiug/ * economist! * ttesideut//3&^me<ly ■ s

1961, and increased use resulted in a
substantial
reduction—14
million %
tons to 71 million—in stocks of feed &

Both to protect the worker

consuming

grains in

production

profit-sharing and equity ownership by workers.
.

vigorously during the last Congress and, I hasten to add,

:196i; the highest since! 1953o

Reduced

economic

continuing at the improved ;

come

level' of

for

flood of buying, power and investment into our

products are strong. Farm in¬

farm

need

sizable incentive

for

income

consideration

for

markets

foreign

reduction

highest

has held about stable the last 3 years.

and

One

need.

imme¬

one

tax

generally ^improved -"position; > Thanks to Our successful <.
wheat and'ieed "grain brograms;^urpluses arp being re¬
duced. Farm production^ which -rose ah average of about
2 percent a year during* the'1950!s,"
Domestic

specific

1963 is clear-cut:

agriculture in

into the new year, we find

look

period has its

Every

/ /*,. /

of the

the rest

Today our economy is not really booming; it is not
Thinking along similar lines would also permit us to
Surely leading to, bust. |tTis hbom C f
:increase directly the income of-workers.. Business and
with a brake, an onrushing economic
labor are no .longer locked in a
snarling duel. Workers
system with a heavy undertow that
are not only holders of millions of shares of stock on
at all J
any time could ftUVJtV. UUUCi ,rUJ.Usuck under the
««•
HU1C tuuiu
the general * .market; 'in "some'industrie^^'y are; par-

individual or send dangerous

with a realized gross income of about
$40 billion should contribute inaterially to the wellr
being of the national economy, notwithstanding the fact
Agriculture,

that

year

idea that handcuffinjg
industry helps
population*
*
< .

events.

will

grains

feed

and

wheat

hjent..Iiast

^will be mado by hational policyf'subject* to international

taken. The reduction in stocks

unless corrective action is

in the form of tax relief for
depreciation on

HON. JACOB K; JAVITS

this season is expected to decrease
last year.

at the end of

over

(315)

CORNER FORT, DETROIT 31, MICH.

SERVING GREATER DETROIT THROUGH 2S OFFICES

on page

The Commercial and Financial Chronicle

(316)

Continued jroin page

level

Vy''!

year

better farm incomes, and

ers,

Senator

and

South Dakota

From

more rewarding

outlook for investors. We have the

MUNDT

people

our

productive

Two

in which our people may enjoy
because of the skills and
dedicated efforts of our farmers, workers and manage¬
ever-rising

living

advance, but in recent months have slowed down.

profit

the

in their role

citizens determine

as,

tivity inherent ih the American' free

our

the

and continue the

part

to attain a

•

prices.

done,

can

rate

gradually

stockholders,

customers,

meet

workers

and

innovation, the development of

implementation
mass

markets.

this decade

are

6f distribution
The

its

obligations

the

year

production

rapidly

same

figure

factors

same

so as

branch

and

possible

our

nation's security

vigilant guard

government

repercussions.

dramatic,

and

labor by threats or

opportunity to provide leadership for
whose

only desire is ta achieve

steady,

cally

the

with

programs

the

Tax

Code

and

Congress

not

it1

to compete economi¬

buoyant

European

the

international

-A*

have

reduction

been

'.v

in personal

some

buying

and
V

goods

and

disposable personal income. Consumers

pected

continue

increasing

their

can

purchases

cuts with what

growth.

and

Hon. K. B.

Keating

partially offset these

Secretary Dillon calls "base broadening"

Because

V f'J

in favor of

our

slow

rate

economic

that it is presented in a form which I

In
new

ex¬

with

sense, our economy

can

support.

is searching for

Century, the development of
our

dramatic

great

mass

our economy.

source

production

was

The railroads

economic

energy.

is* FOREIGN

Gough,

Jr.,

has

Joseph T.

—

been

added

the staff of H. M. Payson &
93

Mote Than 60

Co.,

Boston Stock

Exchange.

SECURITIES

Joins Stanton-Lewis
BOSTON, Mass.—Leonard O'Donnell

PRIMARY TRADING MARKETS
;

* ,,v**

'A: A:'';-!1'7.4 '

.y?I
■

-V

' /*/

> f-.

V
'

'»* fV

•+

'- •"

'- 1

l'^

-r

has joined the staff of Stan¬

VV
5

former 1 y

was

with

Godfrey,
Hamilton, Taylor & Co., Inc.

yin

New York, N. Y. and

underwriters,

•

'f'<"

*'1.

Carl Marks & co Inc
Foreign Securities Specialists

distr^utors| i§|jiorati6iis

and their stockholders;!

.Writefor

our free

NEW YORK

5, N. Y.

OMAHA,
..;

TELETYPE 212-571-1685

booklet setting forti^^j^rrent Federal

Original Issue and/Transfer Tax Rates.

Larkin With Chiles
Jr.,

TELEPHONE HANOVER 2-0050

■

ots to

"ty yyi*
-

•

We afford economies

and State Stock

20 BROAD STREET

Jersey City, N. J.

*'" * ^Xi\y.y. V.&.V.;.V.xvn%V.VV

ton-Lewis & Co. of Hartford.; He

Years'of Efficient and

Economical Service

Exchange Street, members of

the

has

Chiles

Neb.—Fred
become

Larkin,

associated

Company, Farm

with

Credit

Building, members of the Midwest
Stock

Exchange.

Mr.

many

years

associated

was

Larkin for
with

Smith, Polian & Company.

Registrar

and

Transfer Company

50 Church Street

NEW YORK 7, N. Y.
BEekman 3-2170

^
-

15 Exchange Place

JERSEY CITY 2, N. J.
HEnderson 2-2211
WHitehall 4-3775

the

were

With H. M. Payson
PORTLAND, Me.

force to get things moving again. In the early 19th

great driving force in

disposable personal income, this would

growth, I

immediate tax cut—assuming, of course,

rate

answer

bigger

difficult question arises: where

rising after-tax incomes. But, in view of the reduced
of rise

the

even

reforms?

services

taxes.

cut

will be whether

year

do you make your cuts and can we

that their expenditures have continued to- be about 93%
of

question

economic

affirmative,

cor¬
K, \

should

par¬

(

big

Congress this

hand, there

expenditures,

slower, too, is the rate of decline
corner is finally turned.

The

greater rise is required. If

about in line with changes in their after-tax incomes

united people

to be flatten¬

future recessions will be less drastic.

assessment by

adopted, they would result in

are

Con/sumers

with economic

peace

but

makes

rate

the

porate tax rates.

unparalleled

the

definitive

when the

pro¬

Common Market. At the. same time,
it
increases
the
probability that

ticularly in light of prospective proposals for the reform
his high office to

afforded such

economist,

President

tion and the Congress, to hold down

intimidation. No President of

was ever

and

example rather than to restrain the acts of business

the United States

Our

growth

tougher for

will be. strong efforts exerted, both by the Administra¬

vide the leadership for our people through persuasion
and

banker

of such experts, I will not hazard

The slower the pace of the incline—

additional rise in expenditures. On the other

insure that sound fiscal

use

not

than this will depend

new

over every

that

at last to

economy

The growth rate of our economy seems

during the

situation and of whether

monetary policies prevail.

Sixth, the President must

1964, bringing the

the

ex¬

confident

should produce a rise of perhaps $1 billion per quarter,
a little more, in Federal purchases. Whether the rise

to permit a reduction in our present punitive levels

of taxation. It must maintain a

that the latter part of the year

will be larger

every

our

employment.

ing out. This has both good and bad

penditure not directly related to

full

prediction for 1963.

during 1962. First, purchases of goods and
from the private economy by all levels of

available, but present programs for defense and space,
well as the Federal pay increase and cost changes,

tices which experience proves are indispensable for the

Fifth, the Congress must reduce

company

continuance of the American way of life.

restraining

U. S. Senator From New York
Since

coming year. Purchases by state and
governments qre expected to continue to rise by
about $4 billion per year or perhaps a little more. At this
writing, the President's budget proposals are not yet

modest further

clouded due to uncertainty about Fed-

are

into

over

Sparkman

local

great. A courageous and dedicated effort

together,

HON. KENNETH B. KEATING
Hon. J.

'/government—Federal, state and local—will--continue to
rise

these factors

sustainable

carry

expansion
services

all

something like full employment.

in January.

evidence of quick

will be marked by a very vigorous expansion which will

November,

the

less than

rose

5.8%

was

and

plant and equipment.

have had

policies can be devised

Looking ahead into 1963, many of the

practices that will assure

in business spending

in 1961. Unem¬

The revised

influence. In the present situation, with large amounts
of labor and; capital still idle after two years of re¬
covery, both private arid public policy makers face a
challenge to. develop policies that will carry the economy
to

year of

will be operating that produced the very slow rate

public acceptance of those management prac¬

can secure

5.8%,

rate of only 2% per year,

ployment

responsibilities of management

anticipated

was

industrial

half

encouraling

corporate profits hardly changed, and

products, and the

new

many

1962

vanced at

Third, American labor must seek increased earnings
through more co-operative efforts with management so
that. the gains of technology will not be dissipated in
useless controversy nor restrained by the imposition of
obsolescent work practices.
must

possibility of

out.

eral fiscal policies which; continue to be

continuing
recovery but at a sharply reduced
pace.
Gross National Product ad¬

expenditures entailed in our restrictive

management

6.8%

year

are

far, however,

later in 1963

and the unemployment
from

the

rise,in economic activity seems probable. Prospects for

12%, corporate profits

dropped

ago,

burdensome surpluses at government expense.

Fourth,

6 %,

rose

early in 1961 to about

per year

before

advance

Taking

for changes in

ad¬

seasonally adjusted.

agricultural programs which regiment our farmers and

pile

after correcting

production

which

equipment,

-results, until demand rises closer to capacity.

by almost 9% in current

rose

rapid rise in business

intended to provide further incen¬
and flow of funds to stimulate a substantial in¬

tives

one-fourth, disposable personal

income

this

Product

Industrial

vanced almost
over

the
American farmer
Sen. Karl E. Mundt
whose productivity exceeds that of
any other in the world must be given the opportunity
to serve. world markets, and in our negotiation with
the European Economic Community under the Trade
Expansion Act of 1962, his interest must be given fore¬
If

National

and

$34 billion

investment credit

Small Business

was

guidelines for depreciation under Bulletin F

dollars and almost 8%

developed status. This is

Second,

consideration.

*VSv'K>v,.'

crease

Gross

Progress is to bear fruit.

most

Chairman, Select Committee

half

plant

new

expenditures in early 1963 but

renewed

point in early 1961. During the first recovery year, the

particularly so in Latin America if
our
investment in the Alliance for

reduce the vast

The current recovery has lasted two years from the low

seeking

are

?'■

U, S. Senator From Alabama

relentless and un¬

countries who

other

Va:'..v.vv%v-r-V-

ending effort to eliminate Communism and its pervading influence on
the lives not only of our people but
in

;•

the economy.

$38 billion' at present. Surveys of business plans tend

HON. JOHN SPARKMAN
:v-vV:V'

and

to indicate very little advance and perhaps some decline
in such

in
releasing the energies of our people.
First, we must insure our security
its

play

must

for

from about

enterprise economy, the federal gov¬
ernment

awards

contract

and powerful force in the expansion of

past year and

spending

Jy-y

people.

starts,

significant downward drag

A very large

I haye^reat confidence in - the/«intelligence and in¬

tegrity of

housing

provide much additional expansion although neither is

eco¬

our

likely to be

ex¬

nomic destinyy; I have great hope for; the; coming year,

to fully realize the produc-?

ment. However, if we are

well

basis

general trend of business, neither of these is likely to

their productive activities

efforts of individuals in

free

standards

investment, namely residential non-farm

construction and inventories, gave impetus to the 1961-62

panding technology. In a society such os ours where the
1963 should be a year

areas

large expansion in the

whole,

economy as a

resources.

anxious to obtain the fruits of

are

Thursday, January 24, 1963

hardly be enough to power

convinced

our

HON. KARL E.

outlook for 1963, I

the

come, conduct themselves in the manner which I have
outlined, 1963 will establish new records for the Ameri¬
can people. These records will include a greater Gross
National Product, higher take-home pay for our work¬

people and with the United States
position of world leadership.
aspirations of

appraising

that if each group whose acts may affect the final out¬

1963 holds out good ■ hope for
economic activity commensurate with the
the

national policies,
a

Q;' r:v'.V',.C

Volume 197

Number 6232

The Commercial and Financial Chronicle

recent

years, the automobile had the same dramatic
impact. We need a new dynamic force like this today.

Perhaps travel to the
rapid

increase

moon, atomic energy or even the

automation, which we are
periencing, will prove to be just the kind of
off"

In the

need.

meantime,

now

ex¬

"blast

to take steps

we need

to speed up the process and rate of economic growth.
I

refrain

from

making predictions because it is

feeling that the condition of
depend
takes
Can

largely

very

STEWART L.

•

community

can,

be expected in

moderate upswing

major industries—with

few notable

exceptions—in the first six months
of the

new

hood
in

the

with

year;

socnd

The

sweeping

which

provides

two

the

mobile

vision

authority

and

with

are:

industrial

production

through the

1963

most

these, of

employment,

to. consumer

course,

and
manpower

purchasing and business and industrial

pansion is the broad-scale tax revision program
the

Administration will

amount

the

propose

well

these

that

programs—such

ment—will not begin
But

already

optimism
.

the

there
the

industrial

full

ex¬

which

session of

new

certain

weight

to be felt until later in the

significant

part

signposts

are

communities.

into

the

leaders

days

per

the

public

calendar

new

11%

When it is

The

business

the

year.

of hopeful
and

If this

quarter

was

momen¬

A recent

income in October

the

Census

are

Department

good

new

new-car

sales

car

and holds down

market.

depreciation, encouraging

the

average

among

production

those

and

volume

car.

accounting

sales,

for

construction

the

and

railroads

general

merchandising
2

creases

forecasts

'dThere is much

reliance

expects at least to duplicate the

realism >in

car

of the consumer.

Actually, past evaluations of market potential have
tended to overlook

to a

real phenomenon of recent years

Continued

■.

view

the

petroleum industry predicts first-half domestic oil de¬
mand to be up about. 2%' and natural gas consumption
up

aboutcompared to last

have

been

made

for

such

Similar forecasts

year.

industries

food

and

ap¬

pliances.
Such

increases, of

demands

burdened

and

will place additional heavy

course,

basic

our

natural

the requirements

heavy population growth.

resources,

already

dynamic economy

The

Administration

areas

this

THE FAIRFIELD COUNTY TRUST COMPANY

records in many

new

HAROLD E. RIDER, President

of land, water, and mineral resource conservation.

regard,

vigorous efforts

one

will

the

of
in

Administration's

support

coakpaiw
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

prepared to present to the new Congress legislative
proposals designed to help meet these demands, and the
outlook is for a continuation of the monmentum begun

by the 87th Congress which set

COMMUNITIES

OFFICES

most

greatly

„

STATEMENT OF CONDITION AS OF DECEMBER 31

COMPARATIVE

ex¬

RESOURCES

^expendable family, income, and vastly improved
means
of transportation*

U. S; Government

Cash and Due

•

fronrBanks..... .$

Securities

...

•

Capital.,...

moderate schedule of
the

Federal

stantial

still

user

long-range,

fees and

open

from

space

by a

taxes, to enable both

Government and the States

additional

multi-

Fund, financed
to

the

obtain

"green

sub¬

acres"

33,187,183.89

123,529,282.36

While

the
of

primary aim

adequate

high-tension

herent

also

years

this

places of
a

program

rest

and

the present

substantial

is the

relaxation

and

future,

contribution

as¬

out-of-doors, tourism is moving steadily higher in the
list of today's big business.
.

3,807,961.74

2,166,334.88

4,342,316.95

2,396,483.00

1,955,111.68
210,450,365.08

1,756,210.57
186,194,529.26

$236,360,787.54

$207,812,202.16

Unearned.

Estate...

21,146.03

31,656.36

Discount.

234,196.69

369,839.88

Deposits...

$236,360,787.54

$207,812,202.16

TOTAL

TCTAL

RESOURCES

our

picnics and payrolls; it has been amply demonstrated
that they, provide both. ■ As more Americans turn to the

1,667,019.25

Reserves...

Other

Assets.......

in¬

overall economy. Parks do not mean a choice between

2,312,391.45
$ 15,298,641.45

Liabilities

Banking House, Furniture
and Equipment....
4,296,032.18

available.

surance

the

17,996,753.67

149,488,098.25

2,960,974.58

Profits...

37,534,230.25

20,751,955.65

Securities...,

Other Real

5,486,250.00
7,500,000.00

$ 17,945,974.58

...

Loans and Discounts.

Other

5,985,000.00
9,000,000.00

Undivided.

Other Bonds and

Keystone of this program is
billion-dollar Land Conservation

Surplus...

$ 24,542,477,90

28,382,261.85
-

1981

1962

LIABILITIES

panded outdoor recreation program to keep pace with
the rapidly multiplying*defiiands for recreation facilities
on the part
of a population*with more leisure time,

GREENWICH

STAMFORD

RIDGEFIELD

DANBURY

SO. NORWALK

OLD GREENWICH

N0R0T0N HEIGHTS
SO. WILTON

MEMBER

LIABILITIES

BETHEL

NEW CANAAN

GLENVILLE

OEOROETOWN-REDDiNG

FEDERAL DEPOSIT

ex¬

design today, and

1962 boom year;

inches

quality rather0.than upon ostentation
—which, in turn, we believe; reflects an enlarging
understanding of the needs and knowledge and wisdom

uncertain,
Spring - sales in¬

see

1962; the automotive industry

over

median

bulk

better balance between

sales in the first three months of 1963.
in

The

the

than

\A, department of Commerce survey finds manufac¬
turers expecting an increase of about $500 million in

While leaders

and
ease

the immediate Outlook for their industries

the

travagance has been curbed.

Prices
up

The factors'that opened the way to the
still with us but with increasing inten¬

significantly increased,

more,

used-car

cent

performance and economy has been achieved and

near-f dcoFd levels,0 totaling

the

per

expect the compact car,

shorter than its 1959 counterpart. Automotive value has

record'atiftllal

strong which reduces the cost of trading

their largest

car are

made

been

Another significant factor which generally is reflected
remain

handling.

$3.9

personal

reported

take

is the most effective combination of size

that

been

increase continues,

average

and tuck with each other, but
in which the larger and

in the direction of

automobile,

about $26 billion.

This
~

design is reflected not only in the total number of such
cars being sold but also in the modifications that have

1963 individuals would have

abroad.

The influence of the compact car on U. S. automobile

^
savings

sales

period

the

cars

sity today,

years

average

by $2.1 billion to

rose

Rambler

opinion, the automobile market will continue
the optimum car—that is,

our

move

compact

within the next 6 to
corresponding proportions

rate.

record Rambler sales

roominess, power and economy, and comfort and

incomes running well in excess of $400

Commerce

have always defined it (ranging from 170 to 200
inches in over-all length), to assume full ascendancy
over the conventional standard volume cars, i

con¬

1961

year.

Bureau

increased

the

as we

were

good sign is the continuing increase in the

has

70,000

market. In the new year, we

cars

over

normally

higher priced

best

—

disposable income. Over the past five

total disposable

billion.

one

1963

60,000

been running nip

this

December—when

a year ago.

the U.

quarter.

foreign trade and tax adjust¬

been

period in history, the current

income

Personal

probable

has

cars

offered

period

same

disposable

tiie rCongress.;
It

first

were

billion

major stimulant both

Roy Abernethy

encouraging.

A further

idle

remove

have

been

1963

car-

Compact car sales overtook standard car sales a£ the
top volume cars during 1962; although not for the full
year. During the '63 model* introductory period, triey

signs, moreover, that the record sales will

are

by the fourth
.Added to

the

fast

would mean an increase of about 27% over 1962.

reported in October, 1960 and 1961.

production wheels.

new

models

12 months was up

Stewart L. Udall

both

stagnant pools and utilize its considerable potential

turning

another

^showed that the proportion of families in October who

million

spur

and

households.

American Motors itself has set

im¬

has

new

is increasing twice

goal for the 1963 model year of 550,000 U. S. sales and

car.

when The

reported plaris to buy

Large-scale job retraining to
from

formation of

•

quarterly survey

program.

program to

owning households

this

periods

concept

new

reaction

There

ing from significant progress in the
The newly authorized $400

Not only is the total number of multiple car-owning
families also steadily rising, but the formation

new-model period in history. Retail sales from

any

continue

redevelopment

high of close to 5 million in 1963.

other, and.
for

continues to rise.

cars

new

the road today is nearly six years

last five years, and it is estimated to reach an all-time

SSWiSSS

million

compact

few

history

pronounced.

tum

Common

Growing economic benefits result¬

public works

the

the best for that

Market concept.

area

reasons

been

22.7% above the

"co-existence"

Europe's dynamic

than

car on

This age level has steadily climbed since 1956.
Scrappage has averaged about 4 million a year for the

1962

sidered that the fourth quarter sales result in

in¬

the

average

mar¬

substan¬

old.

domestic

given to the auto¬

have

automobile

most

tariff-re¬

permit

profitable

it would mark

basic

success

pact

for

trade program

adequate

million

the

industry by the introduction

Public

advances

outlook

area

occur,

years

Oct.

new

only the second time in history that

strong likeli¬

this

the

this

Should

half.

Contributing to

creasingly

substantial

sold

cars

is the stimulation

According to present indications,

There
can

with

1955,

units have followed each

UDALL

opinion, look for¬
fairly sizable overall gains in 1963*

The

result.

Secretary of the Interior

ward

record

market. The used car

new-car

Replacement demand for

its best years in

one

ket itself is further strengthened by the first
tial infusion of compact cars.

United States. We believe next year

one

The business

buyers to enter the

performance for 1962 will be the best

foreign-built

should

economy

HON.

since

the kind of action the Congress

upon

industry should have

The sales

1963.

in 1963 will

our

Klifpl- \Vr '

ABERNETHY

With the forceful impetus of the compact car, the auto¬

arid

this burning and all-important fiscal questioncut taxes?

ROY

President, American Motors Corporation

mobile

-V;

(317)

INSURANCE

CORPORATION

DARIEN

WILTON
NOR WALK

NEWTOWR

page.30

The Commercial and Financial Chronicle
30

Continued from

that

factor

—a

great bearing upon

should have a

the relatively new status of
The swift rise of disposable

American

consumer.

the
the
in¬

both in dollars and in the number of individuals
wrin a surplus over basic needs, combine with higher
education levels and the steady improvement in com¬

come,

most

dependent buyer,This fact wiil increase buyer demand for

the balanced,

exerting comparably
durable goods.
Since bur economy is one that is directed at and by
the consumer* his ascendancy should be an important
well

automobile as

optimum

realistic influence on most consumer

general stability of the economy.

factor in increasing the
This

with built-in economic buffers,'
deviations in the

combined

factor,

tend to

should

level out the extreme

gains may,

Thus, while our total economic

(economy*

not have been as

stability.

great

this as

interpret

was

hoped for in 1962, one

positive;- result of, increasing

;■

Central

Chief - Executive.

and

/1963

electric

This optimism is based on sig¬
nificant achievements and events of 1862 that Will haire
favorable lasting effects on utility ' *
- "■
*
operations.
;
, ; •
the .long-range future.5

Research
ances

appli¬

devices,

new

equipment

and

the

competition in

face

industries

helped

create

systems

agreements, providing for

both

.and.investors.

companies

over

being

been-

have

among

that

states, the

northern

but

•

greatly

the most prominent. It is true
industries have not

some

able

v;-

1962

the

Share' in

the whole

been

recovery,

the economy

was

vigorous throughout the year/

achieving notable success in
promoting the concept of total^electric(living, including
electric heating, and it will bei in this area/- highly com¬
petitive as it may "be, that the real ppporturiities Jie-for
greater growth than "that reflecting- hormaf. expansion
electric

improved

'1961, the automotive industry

are (

values

must

•momentum
:

pump

and increasing- efficiency.

be ^assigned,

carry'-over,

though somewhat

'.-■■ theless "a

tlie population and the* economy.
Inv the face * of higher prices for materials; higher tax

1963,
to the
which,,

.In.assessing the prospects for

vital

slowed,

factor.

is noneGovernment
,

priming and. defense and space

spending, although inflationary,.tend. ,'

further

J. D. Adair

.'shprerup^ the imiriediate'

'.r;-:.outjppk;i^ittdfei/0t:hei

7- '* /

avcp^ridhig;^satisfSt^oryfeconoiriic level'^rireJ personal
otherequipment; through periodic. arid ? •.•^^sSvin^s,"i^consumer^:Spohding•^,•and•••/•a,'.sub|tal^tially ini-

metering and
realisticappraisal; of existing vbusiries&

pr^^

(J prpyed

long-range (planning ,thby *are
building into their structures^^ sayings vthat ^ilk pay, off

conditions ahea^.

through: comprehensive

if-

(•

fields of', endeavor '^

( In,.^our *partlcrilar

succeeding year ^reducing- costs.? without I underminV H;$egments(o^
^ tb/^ntiniie
ihg their basic objectives of providing /dep%idable 5 terns/ While it* is' doubtfril ;that automobilp^sal^L ,can

in-

service to their customers.

.individual companies

better and better- JoKeach

year.

are

:-jiald

iii;coninmnicating;

motive- Servicp

investors;11 arid (.'employees - the

their; customers,

"theiri(receM levelsj^ all relja^Ie^^eictionS p

dp- '(a"very satiisfactbry.

im¬
operations*^includirig.their; put-

itst

and

yeari

Followingjfusi-tren^;:pu^auto?'

Topi Division ' expects to"at least maintafri

1982^^^pace;^i^bent^^.years,-Kerif^Moorp*hka^
numberJof. different fields to. reduce., the
industry arid
broader b&se of bp'eiations. (Tho balancing

into^a

fied

plans for the future, v.One of ; the. greatest
opportunities: that either industry has Tiad•(ih a. quarter
century (will. be available through. the medium - of the
1964-65 New York World's Fair.
Both industries. are

"Gompariy's dependence rippii, the' autpmotive
v

provide

operatibhs ia just- beginning to be

effect of these; added

(

realized.

the execution of - bold' and (.imaginative
^ During
1962. all' major segments; of our Company
plans for taking full advantage' of this'(unusual oppor¬ '.showed :increases in sales 'and earnings. In'the,-yeari
tunity. '
'
> *
~
1
ahead, (without .exctrption,.^every rdiVisiori;;of Kent^Moore
V
;•%>:&!.«
*'
n
'
4
1'
»
i y .
looks^^ fpr^war<l J;o frirther' improyem^s^with^|aIp^
.Thesrffavorable trends and; significant., achievements
do not, discourse, leaye .the riatural gas and electric : earnings continuing to progress in pur. domestic market.

well

de¬

most meaningful

;*/>;

Furthermore,?«: particularly in the

•>

look

promise to provide oppor¬
tunities for significant growth and
rewards in 1963 and thereafter.
the

coordination in the
and

the
Utility, its customers

economic advantage' of each

best

portant facts about their

new

year and

Among

by-product

significant

planning, construction and operation of production
transmission facilities among groups- of utilities to

to;

utility business last

the

Inc.

Organization,

generating units apd the

irig

atmosphere of excitement and antic¬
ipation

ADAIR

J. D.

Kent-Moore

President,

of the increasing size of ( Despite conflicting estimates of the future, pessimism is
hardly compatible with corporate results of the year just
interconnection of electric utility
passed. With relatively few exceptions, earnings reports
has been the further development of power

.Both industries and the

suc¬

cessful development of new markets
in

competitive nuclear power reactors. /

Through the application of -electronic;; computets, ^eler

Utility-industries enteir
;'bptim^^

Both, the natural gas and

methods of power

by the
of the

greater efficiencyV in conventional
generation and in the early phases of

still

successfully controlling costs

Officer,
Hudson das & Electric. Corporation- •
Board

systems,

public of the important positions held
industries in the industrial structure

country.

interconnection of ail major

mission, in more complete

payments at all levels • of "government (arid Jnpreased;
wages and salaries, the, utilities of both industriire are

ERNEST R. ACKER
of

utility

from talk and test to

Chairman
.

1963

pooling

make the U. S. consumer the
prosperous, best-informed and most in¬

munication processes to
world's

general

Similarly, the electric companies have moved forward
reality in extra high voltage trans¬

J/Z'[>

page

of the economy;

trend

Thursday, January 24,

.: .•

(318)

along in

1962 for natural gas
utilities ,wa^ the settle¬

velopments in
distribution
ment

backlog

cases; f in

many

pipeline rate proceedings. This not, only resulted in
lower prices and. refunds for many of the Utilities; but
of

it may

the

sales

whose

price
natural gas., These factors greatly enhance

also mark the beginning of a period of

stability for

utilities,
characteristically, .competitive, to

earnings

and

business

the benefit of all

outlook

the

for

gas

segments of the industry.

Both industries have

strides in

made, significant

search and development

re¬

concerned with new operating

technology, aind end-use applications. The gas industry's
success ^with underground " storage indr its developmeht|
of

plug-in appliances

are

' I \i- V

1 >

c '

~S>

„

<■

Ernest R. Acker

but two examples.

futility

compjariie&w^itt^^:> ijndeed,

^Furthermore;: pur (coiripuri^

task of l963 will be to capilaltze on the .devel¬
opments of the first three .years of this, decade and to
turn the opportunities now open to thorn: into, realities.
Both industries must, continue to face up to such prob¬
lems ris the .expanding role; of government and govern¬
ment-subsidized agencies in their respective fields. They
must find ways to attract and retain the best available
technical, professional and management personnel for
the conduct of the business in the future, and finally,
the great

*•

position .to grow and
pean economy.

be
assessing future prospects. Without - a
doubt, .increasing domestic and. foreign- competition will
continue to squeeze the profit picture. Toda^,; far more
foreign products are .appearing here in America' in Competition with pur, domestic mantrfactriririg thari ever
before, and it is almost Certain that' this trend will cOii-'
.There

■■■;;

are,

considered y

;

fully inform legislatures, regulatory
media and the

they must. more

is in an -excellent
participate in the .booming. Eurpr

sion," located in Zurich, Switzerland,

•

commissions, financial institutions, mass

of course, always negative factors to-

Bank

Upham.. Two'With

Joins Harris,

O'Doririell.'

Hayden^ Stone

Ga.—Joe H. McDon-

: ATLANTA,

Atlanta.- Mr.: Stephens-

with

was

Nichois &

Nolting,"
-

£ • (>,

.«;»•.

r rz

aid,/ Jim ...has joined; the staff of .'
'i~
Harris, Upham & Co., 44 Broad- JACKSONVILLE, Fla.r-Robert^H.
^

St^e^ ^ y'H'H^„WpS 'f?rmerly 'Brysori and Franklin W* Stephens
o*' mc.

with E. F. Button &

BROKERAGE SERVICE FOR

BROKERS

—

BANKS

—

arg

ATLANTA^ Ga.

Mr. Bryson was

William T. Citizens

—

ass5ciated ,with -Hayden,

Miriam D.

Grim has joined the staff of
Rose &

formerly with the Reuben

Co.; Inc.,

502

National Gloucester Street.

Southern

BRUNSWICK, Ga.

Stone & Co., Inc., 500 Water St.

'
J? TT*
ViK
A /Irl
IN OrriS <& liirsn DGr^ Aud

DEALERS

n^w

With Reuben Rose

Mobley, Jr. has been added to the
of Norris

staff

UNLISTED SECURITIES

Bank
of

I
c

•

51 BROADWAY

•

Exchange.

Stock

Midwest

Established 1928

NEW YORK 6, N. Y.

WHITEHALL 4-1800

the

& Hirshberg, Inc.,

Georgia Bldg., members

TELETYPE 212-611-1104 V. I

Joins Harris,

Upham

joined

Upham
Street.

of- Harris,

staff

the

Co., -740- Seventeenth

34 years

rthemvwith information

formerly with the

•

First National Bank of Denver.

F. I. du Pont Adds!
ATLANTA, Ga.
has

Francis

—

added

been

•

Joe B. Young

the

Pont

staff

Co.,

special service to Retail

'>I1-;'-..V-Syi-•"

Industrial securities

Oil and Gas stocks

in these divisions of the

Securities Business

Interesting growth securities

Your inquiries

s' v..'7di..

• Utility and

SPECIAL SITUATIONS

furnishing
supplemented hy pertinent analytical

descriptive of—

;y reports

."-/J.- '•

was

offered

Organizations, Investment Trtists, and Institutions,

•

DENVER, Colo.—Peter J. Rednor
has

for

We have

are

Investment

respectfully solicited.

Edgewood Avenue, Northeast.

Hettleman & Co.

Three With Goodbody

PM FOX

•

ONE WALL STREET

NEW YORK

Telephone: WHilehall 3-5770

5, N. Y.
■

ATLANTA, Ga.—Leo J. Bouchard,

120

Teletypes

Jeannine R. Llera and William F.

Telephone

Sanders/Jr.,; have been added to

REctor 2-7760

the

staff

Marietta

Goodbody

Street, N. W.

212-571-1710

212-571-1711

Co., 59

BROADWAY, NEW YORK 5, N. Y.

(319)
•>,

."V--

V-"'

-l

't'-Vr-'.y

;

v^-v'-

'/V

squeezed by competition, wages and other fringe bene¬

the packaging field—which required new inks to print
oh such surfaces as polythylene and polyvinyl—has

human nature operates, how men in public office
easily
become intoxicated with p.ower
gained through

fits continue their march upward,

been

tinue.

Simultaneously,

while

prices

our

being

are

further taxing man¬

agement's ingenuity to produce satisfactory results.

resorting
political expediency and capitalizing on the economic
illiteracy of the people of this great nation. The colleges
and schools, must be alerted to the importance of the

big factor in total growth. At Sun Chemical Cor¬

poration

;

working hard along, with

are

the, other

segments of the graphic arts -industry to'see

that ink
technology keeps pace with other" developments.

However, in all its history/ American industry has
failed to meet the challenges before it. There is &

never

/ restoration of the vital and fundamental

ample evidence of management's ability to face and find

ECONOMIC

solutions for the problems created by our high standard

ORVAL W. ADAMS

of life. No economic society can forever sustain prosper¬

ity and growth without faltering periods. I do not in¬

Salt Lake

tend to imply that we shall

falter in the coming year,
but it seems reasonable to expect a degree of leveling.
-All things considered, while 1963 may not be labeled
a

Bo6m; yeafj the weight of evidence indicates

re-enthronement

fundamental

Agency. /'The
.•**/

E. ALEXANDER

time

economic

far

The nation's graphic

arts industry is presently under-

of these results

"will

come.

right

and

now,

the

last

Department
are

rate

5.9%

Volume
per

year

from

through 1961. There is
tion. that

ing
that

a new

every

record

indica-

the

will

figures

immortal
to

again

rise

word;

expenditure by U. S. industry for advertising brochures,

promotional -materials.
count for

These outlays, which now

such

the

al¬

our

anew

rise

Listen

the

full

laid

New vistas upened -recently^5 for

printers of
business forms, for example, when magnetic ink was
introduced commercially.
Now used chiefly for bank

leaders

■

HHHIHHH
■r
I

his

powers

itself,

spirit

powers

of all

departments

into

•

find

with

such

IHHmHBH-V*'"
;

and

thus

the

manner

Avmonii

as Ja a producer

The'

tourist

and

for all of these sectors are

offset equipment made

the

process

feasible for,

news-

Our

zines.

with

television1 and

national

maga*

One

the

biggest boons to newspapers in the past

of course, the coming into, general use of
Teletypesetting: This process, which automated the line
casting of type, perfectly demonstrated the advantages
of such

new

Other

labor-saving devices

developments

the

ceptance are. letterset,.which is
L press

to publishers.

threshold of
a

cross

general

ac¬

between lelter-

and traditional offset printing; offset presses that
either web- or sheet-fed stock; and flexography,

can use

which will take work away from the
old-fashioned, in¬
efficient flatbed presses. These and many other
develop¬
ments will

completely change the face of printing and
industry in the not-distant future.

the graphic arts
:

The revolution in the graphic arts
industry is gradual
the sense that it is not taking place

overnight.
But
it is occurring fast enough so that each
year during the
coming decade we will see much growth and many

changes.

For example, the printing ink industry, which

has

estimated

been

1962,

has

annually

been

about

growing at

during the past five

$300 million
rate

years.

better

volume

than ;4%

Developments in

the producers
sales

other items.
a major economic

of winter activity.

summer.

construction budget calls for the investment of

In-addition, millions of dollars have been committed

to the acquisition of the extensive Michigan production

properties of the Panhandle Eastern Pipe Line Company
Continued

in which

HJilM

& CO.

Members <Njeu) York, Stock Exchange

One Chase Manhattan Plaza

decade. was,

automotive

$59,000,000 in projects to expand and improve our
electric and natural gas services.

^ offer, color to their "advertisers4~a distinct, advantage in
their competition

the

some

of web

of course, jand also enables small .newspapersvto.

papers,-

Development

Detroit.

city

in part the reasons for Consumers Power
Company's general construction program.

While offset is less

coming years.

the
and

which explains

using offset equipment has increased

the

The predictions
good to excellent for 1963,

qlways been good in the

to 19,327.

embracing

busines&V

factor, is enjoying new heights
has

of course has enjoyed spectacular success in recent years.
Since 1951, according to Graphic Arts Monthly, the

circulation

outside

nurfttfer^bf

resort

We at Sun Chemical Corporation have developed a
special lithographic ink for use in offset printing, which

expensive than letterpress printing
particularly suited to short-run operations, it is
expected to be adopted by newspapers of up to 75,000

area

of chemicals/ metal products, petroleum,

food and paper,

and is

Company pro-

natural gas service,

And Michigan's economy is sub-

imprinting of sales slips, price tags and business forms

number of plants

stantially buttressed by other kinds
of industry. It is ah important area

to facilitate the automation of business record keeping.

from 5,283

of sales

these necessities predict big

notes, it is expected to find increasing application in the

year

years./;

respec¬

clarity and exactness the

Power

is why we like to hear
<

^^j£$),uted

consolidate

one,

products industry are prominent in
this Outstate Michigan area, which

spheres, avoiding in the exercise of
tends

both,

Automobiles

thinking in • ^ free cour^^y,

encroachment
the

destiny.

1962, and with Michigan's

Consumers

sula,
1

will

properly

better

°r

Words'

the powers of one' department to encroach upon another.

The

other fields predicting a similarly
high level of activity, we at Consumers look forward to a busy year,
t

•

dollar

counties of Michigan's Lower Penin¬

ministration, to confine themselves within^ their
tive constitutional

IN¬

AYMOND, JR.

|Vides electric

inspire caution in those: entrusted: with its ad¬

the future.

business

down

create, whatever
the • form
of government,
a
real
manufacturer and the ink maker. All three must
% despotism."./:*f>-,x
•
ahead at an equal rate of progress in order \to
And now give ear to his final warning: "Let there be
achieve success.
no change by
usurpation
it is the customary weapon
Rapid improvements in techniques in recfent years
by which free governments are destroyed."
have already contributed mtich to the growth- of the
Who but a prophet could have foretold and described
industry; they must and will do so at a greater rate in

1963 to match

height

move
•

the American

save

try publicly affirming that they foresee

yin ;

OUR

With the leaders of the United States automobile indus¬

un¬

paper

can

government,

your

Liberty,

government, with

deplorable

Chairman of the Board, Consumers Power Company

farewell

memorable

principles

overthrown.

Therefore, only statemanship of ttie

•

ligence,

Washington; in the

must

freedom.

vision

profusion

adjusted, its surest guardian.'It is important, like¬

should

than one-third of the revenues of-the

economy.
•.
i
The growth £nd future of the graphic arts industry
is tied directly to the printing machinery industry, the

preservation

wise, < that the habits

ac¬

graphic arts industry, have.: been increasing at a .rate
of about 10% annually;— far faster than the • national

•

loVers

the

if the

FOUNDING''FATHERS is to be restored and

Washington- expressed iti his final

directly

and

^poiQets; maib* order catalogs, labels and other sales
-

righted

every ye^tr

most heroic kind, backed by resolute courage and intel¬

the

DEMON DEFICIT.

Constitution/ alterations - which will impair the energy
of the system, and - thus to undermine what canrtot

Eighty per cent of the $12 billion
advertising goes for the printed
But the greatest asset of all is the steadily rising

spent annually

now

must

ing is still increasing.
.

graduating

address

are

permanency' of your present happy state, it is
that you resist with care the." spirit of innovation upon
its
principles, however specious the pretexts. One
method of assault may -be to effect, in the form of the

Despite; television, Americans to¬
day buy far more reading matter than ever* before. Book
sales have risen 500% in the last 3(1 years. In 1961,: they
amounted to $1,360,000,000.
And leisure time for read¬

all

wards

during 1963.

'•

Ourselves

icate

and there is little doubt

1962,

colleges

Our most dangerous foe is not to be sought under
foreign flags/America's No. 1 national menace now .is

between

of true' American manhobd and; womanhood and reded-

set dur¬

was

debt.

and

perpetuated.

dying words of Lincoln,

Orval W. Adams

a
,

SPIRED'

n'stltution of the United

States;
>

1958

liberty,

must declare

C-ihe-C.0

figures

grew

re¬

thought and action to
thO
principles enunciated in the
,Declarations ofIndependence;
in

which

for

Commerce

available.
of

year

and

legiance

volume of $14.5 billion

the

1961,

condition

leaders

our

election

our

servitude."

\ and

fdustry, eighth largest, in the United
in

make

.economy

printing and ^publishing iq-

States, did

little

with' perpetual

must

not let

must

load

;

/IV-SjS

The

spent^-there ' is

schools

thousands of economic illiterate students. This

Free

many

years

1963

subject, the immortal and'staiDemocrat, Thomas Jefferson,
,Said, "To preserve our independ¬

going a revolution that will result in more and better
printed matter for users and lower costs and higher
sales for the industry. This revolution is producing some
more

priceless

our

wart

ence,

literacy

preserve

same

Chemical Corporation

Sun

City, Utah, and

"must"

maining." On the

President,

principles of

is; not done and the

professors and teachers in the schools in this country
not willing to assume this most important and
patriotic Obligation, I fear for the future of free enterThe

The

business climate for most lines.

NORMAN

this

Past President, American Bankers Association

good

are

of the Board, Zion First National Bank

Chairman

LITERACY.

New York

page

Continued from

which,

ating station

page

ability

our

and

for

calls

agreement with The Detroit Edison Company

coming

cooperation between it and pur. electric

department in establishing

over-all program to

ordinate and reinforce electric power, resources

Lower Peninsula

out the
have

our

service

Since the

systems

aimed

activities

the

of both
At
years

the

view

well

council

the

fact

economic

the

fully realize

businessman
I

business,

Michigan

the
own

our

existing business,

keeping the

period

the

second

industry. As

prediction for

one

of experience in the first fifty
to

that the

say

have

our

probably

past

seen

five

basic load

The outlook for business in Alaska

is based
ened

domestic market. Propane

(LP-gas) was originally used
cooking, and later for water heating and refrigeration. Since the early <1950's, however, methods of pro¬

and

fact

that

Alaska's

strategic location

which this fuel has

now, the uses to

fully recognized
order

been,T successfully

examples of how Outstatc Michigan
is prospering. It was a year of milestones for Consumers
Power Company. y jOur business in 1962 * reached new
highs in sales of both electric
We added

marked

our

Starting^
an,

and natural gas.

power

900,000th electric meter in October, and

first

two

million-kilowatt

one-hour

steadily and daily sendout

cember

year

days

approached the billion

end,

the

580,000 natural

had

company

number

cubic foot

total

the
,•

De¬

mark;*
than

gas customers.

important electric department activity for 1963
and beyond is the research
program now under way at
the company's Big Rock Point Nuclear electric
gener¬

industries, and an
accepted agricultural, tool for applications unthought of
only a few years ago.

With

over

uct

when all results

been in

greater loss than that incurred from all other sources
combined. In addition to. being a weed
control, labor

and crop improvement process, flame cultivation
eliminates the hazard of poisoning from chemicals used

saver

control

weeds. The

director of the High Plains Re¬

ices

are

readily available

banks and dealers.

accurate

able

stock
TV

cities provide

orders promptly on

execute

at net

.V.,' V

PORTLAND,

fast

Canadian

has

was

Stock

Members of

Exchange

Canadian

Stock

Ira Haupt Office

Hallowell,

Jenks, .Kirkland

rLy*"''

crossroads bf the world with

LUXEMBOURG

Co/has opened

—

Ira

Haupt &

branch, office at

49-51

Boulevard
Royale, under
the management of Dirk William

Hendrik Van Heuven.

-;v<

•

Hanlv Branch

Co.,

associated
„

•

'•

„

„_

with Saunders, Stiver & Co.

years.

WIRES

with
*

NEWARK, N.

J. —

Edwards

management of Robert E. Zoellner.

Chicago
Gunn, Carey & Roulston, Inc.
^

Cleveland
Dallas

Bosworth, Sullivan & Company, Inc.

G. A. Saxton& Co., Inc.
Teletype 212 571-0232

Underwood, Neuhaus & Co.

Exchange

•52 Wall St., New York 5, N. Y.

Los Angeles
Hess, Grant & Remington, inc.
,

IWHitehall

4-4970

Philadelphia
Reinholdt & Gardner

King St., West, Toronto I, Canada

Branches in the
principal cities of Canada and in
London, England

—

undeveloped

vast

tourist opportunity that staggers the

CLEVELAND, Ohio—Leonard R.

Denver

Limited
36

and

Glore, Forgan & Co.

Exchange

Wood, Gundy & Company r,fJ
—

hydro-electric potential,

lands

imagination; this is the air

Ervjn
Oow
Inc.,/-, .
■■■<:i.
■

Houston

Ojfice

farm

con-

Crowell, Weedon & Co.

•

tremendous

New Edwards

and

Head

Robert A. Baker

sea-

acres

With Green, Grdina

Schneider, Berriet & Hickman, Inc.

Montreal Stock

types of

million

Wood, Gundy & Company
Toronto

Jack

—

become

Co., Inc. for many

Telephone DIgby 4-0633

The

same-

een' Grdina & Co., 1940 East Hanly has opened a branch office
formerly with Blyth & Sixth Street.
He was formerly at 730 Broad Street, under the

Street, New York 5, N. Y..
with

-•

the

of commercial forest
lands; unlimited natural gas and a promising oil indus¬
try, as well as deposits of nearly every known; strategic
mineral, and extensive coal reserves. This is a land of

901 Southwest Washington Street.

en¬

Affiliated

nected with Walston &

PRIVATE

Wall

Ore.

Meussdorffer

Wood, Gundy & Co., Inc.
40

forty-four

Co', have opened a\branch. office

was

population of

(about

Hallowell, Sulzberger

Walston Adds to Staff

prices in United States

funds if desired.

the

(586,400

serv¬

service in Canadian
securities, and

exchanges,

Building.

the

Wichita,

at 2001 North' Front

Bank
i

investing institutions,

fourteen principal Canadian

and

Street, under
formerly with Dean Witter & Co; the management of Carl S, Brandt.

Direct private wire connections With affiliated
offices

in;

250,000

one-fifth

States

abounding in all

food;

HARRISBURG, Pa.

serve

Our

line

tional

Experience

country

miles), with

PORTLAND, Ore. — Herman L.
Lind, Jr., has joined the staff of
Lind, Somers & Co., U. S. Na-

Sulzberger,

its

alone, to farmers in the United States, has
the area of $15 billion a year. This
represents

must

one

Kansas); a
country with 33,904 miles of coast¬

taken into consideration. The loss

are

from weeds

being

population
of its characteristics:

than

now

future,

size rof^ the> United
square

are

well

resources

appreciation

country,

population

50 years of experience in
Canadian invest¬

investors interested in Canadian securities.

some

Here

speed not generally granted to a new prodprocess. This is readily understandable, however,

Century

ments, our organization is well
prepared to

and

the

less

Now With Lind, Somers
Over Half

have

size

wide scope of

of Investment

first

farmers at

one

customers,'

grew

mention.
household fuel, propane how is

as I said, as a

essential fuel in

too numerous

are.

The use of propane for flame cultivation and weed
burning, for example, has received acceptance by the

peak

in December, just 11 years after
reaching our first
million-kilowatt peak.
Gas sales, due in part to
addition of over 35,000 gas space heating

put

subse¬

and

intelligently forecast

and review Alaska's

Last year provides

1963

the fact that the economy" is
being strength¬

by new basic industries,

the

duction, storage and transportation have been practically

revolutionized, and

quent years is very promising in the opinion of Alaskan
business leaders and government officials, This
opinion

from the

came

BAKER

And Alaska S tate Chamber of Commerce

for

people hopping.

growth in the LP-gas industry.

ROBERT A.

the

forty-five years,

10%

President, Matanuska Valley Bank, Anchorage, Alaska,

thirty of which I have: first-hand
preceding fifteen years, which
is merely a matter of historical record.
plus

just rounded out thirty-live

now

For

development

area

the

knowledge,

communities which are actively seeking new in¬
dustry and businesses for their towns. These individual
efforts, backed up by the state agencies and private
are

restored confidence among the spending
public which Until the last two months has been putting
a greater percentage of its
disposable income into sav¬
ings than into purchases! With this total picture before
me, I feel I can safely exhibit bravado and repeat my

major changes than took place dur¬

many

ours

Add to these factors, the President's promise of a tax

company

starts

building of Inter'nationai, Busi¬
under construction in West¬

presently

cut, and the

Machines

of its existence, I believe I am

years

Anton

winter weather and thereby

severe

pots called salamanders, fed from a 30,000 gallon storage
tank, have permitted continuous construction work, in¬
cluding the pouring of concrete.

increased

and

1963

year

qualified
Mark

is encouraged not only by our own
people, but by many,

businesses like

semirenclosed.

County,, New York. When completed, the
building will be 500 feet long, 300 feet wide and five
stories high. Hundreds of? propane-fired .portable heating

our

years

possible home for

before they aire

chester

Nevertheless,

the pattern of

which

who has

ing

the expansion of

fuel to heat large buildings

as a

building industry to continue

ness

growth in the LP-

growth

The

the country, and that they haive three times as
good prospects for new manufacturing as they

This good attitude to
new

10%

half century of our

industrial state is grow¬

even

tremendous home office

economic

own

years

in industry are Tqp mani¬
one should be men¬

interesting

an
use

industry. This prediction is pri¬

earnings

had two years ago.

attempt to forecast

industry

across

many

marily based

development engineers report, for instance,

area

that interest in Michigan

ing

predict

gas

this

billion

figure, 10.8

accelerate completion dates. An outstanding example Is
the acceptance of propane for temporary, heat at the

self-styled experts,

many

what is ahead in 1963.

a prom¬

development

that

of propane

uses

enumerate,

under construction

pretty badly in their 1962 forecasts, I
that it takes a brave heart for a mere

great state.
Our

enjoyed in 1962.

further

tioned; naimely, its

goofed

Consumers, we have worked closely for many
Wxth government and industry and business in
to

that

economists in the President's

development departments

area

double

operations through

Suburban. Propane Gas Corporation

companies.

general

the

MARK ANTON

A less tangible example of this work might

one.

than

This has enabled the. large

connecting the two systems through the use of extra high
voltage transmission lines and the j oint use of. generating
plant facilities to be built in the future.
The joint Consumers-Edison agreement is strong evi¬
dence for the peoplei of Michiganthat her utilities are
hard at work to help see to it that her future is

the

Estimated sales of *LP-gas for all"uses in 1962,

While the

power

that

and

unlimited

could add up to 5.2 billion, gallons

crops

little

fold

Chairman of the Board

the

Plainview, Texas, has voiced the

market

gallons.

both

this

per year.

co¬

the fullest and most productive use of electricity, studies
will be made jointly to determine the desirability of

ising

that

Thursday, January 24, 1963

will be very busy

everyone

that

potential for all

Foundation

opinion

gains of the
will be real gains, here and everywhere.

year

areas.

Dec.

and

progresses

through¬

Michigan, where

air nations

Consumers-Edison program for maxi-

new

coordination

mum

Michigan, just about

new

It is our hope that the year will not
only be an
active one, but a peaceful one too, so that the
economy

several hundred thousand acres of leases.

mile¬

indeed.

billion cubic feet of proven reserves, plus

some

two

help demonstrate that in 1963 in Out-

(

state

tests

power

with

initial criticality on Sept. 27,
of atomic electric power: in

were

production

All these facts

properties include producing and storage fields

These

first

These

Michigan during

strengthen the entire gas service area from the technical
standpoint.

the

and

will

and

customers

our

serve

which provided

stones in 1962.

absorbed into our general gas system, will

once

enhance

The Commercial and Financial Chronicle

(320)

St. Louis

Trading Markets in

Stewart, Eubanks, Meyerson &
^

San Francisco

;

Co.
:

Public; Utility, Natural Gas and Industrial Securities

Number 6232

Volume 197

The Commercial and Financial Chronicle

seven
major international airlines scheduling regular
polar flights through Anchorage, connecting the United

Changes in New gjgi
York's Banking

States, Europe and the Orient.

Geographically,

in the same

York

living in

intends

head

banking

ception

the;

recommend State banking changes in

and branching.
-Vv' Y' " ■'/: '■"■■■
Superintendent of Banks

■

Hoot

hag

position

Oren

the

the X

ings

banks

chartered

One must

and

loan

New

and' to enlarge

branch and merge. .The proposed

approaching $150 million, and two large pulp
a capital investment in excess of
$120 million.

■

provisions contained in Section.
105 of the Banking Law.
bill

description

only. utilize natural
the

are

resources,

being formed

but to

provide

growing population.

The State administration and other agencies are
pro¬
viding statistical data to interested investors. An inven¬

protection"

Mr. Root stated that

not

services for

modification of the

!so-calied "bPme Office

legislation, according to Mr. Root,
a

arriving to develop .'our natural re¬
evidenced by the oil: industry; with expen¬

Siriall industries of every

tory of our natural resources is being prepared, and
private industry is busy with exploration and priyate
investigations in every sector of the State.

em-

the ^Department's rec.ommendations was being drafted

bodying

The Alaska State Development
Corp.

will

stereo

near

the two

steadily

over

multiplex,

by recordings.

v*'

semiconductors and other components used in
mainte¬
and repair have increased in
number, a price

nance

squeeze

in this segment of the industry has retarded
volume.
:«c

growth of dollar

JOSE D. BAZAN
General Manager of the Colon Free Zone and
Vice-President of the Republic of Panama
-

; -

the 10-year period concluding with
1962, Panama's
Colon" International Free Trade Zone has emerged as

are

mills with

permitted

because

years

expand

The..l962.figure of $800 million for replacement parts
.will change little, if any, in. 1963. Although total tubes,

overcome.

are

few

and

year

Which provides a third dimension in music via
radio, as

of these

many

being

are

mark this

impossible

ditures

Oren Root

banks

will include,

state, however, that

growth" problems

investors

com¬

mercial

and

unit

.well

are not

sources

areas

Stereo hi-fi sales are expected to reach

looking for work in industry
interested in a pioneer

are

realize, also, that to create job opportunities

We are proud to

obstacles

•associations,,
the

one

today to reconstruct one of our industrial cities in the
United States under the same conditions.

sav¬

.which

unique

has often been said that it would be
nearly

•

ings

is estimated that by 1965
nearly 50% of all sets sold will
be color.

;

as .the usual "frontier" problems, the cost of
developing industry and"job opportunities is great. It

sav¬

state-

and

as well

merger

■ ■■

the

;

broaden

powers

promises to be

in industry under present day conditions, there Are
many
obstacles to [overcome. With, high taxes and inflation,

branching

and

attractive to customers, the replacement factor will
stim¬
ulate color set sales. From 700,000 to
800,000 color sets
will be sold in 1963, about 10% of total unit
sales. It

million

•

ex¬

much

the last frontier of the United States and

and, for the most part,
life tilling the soil.

I Legislature so
as

are

by covered wagon.
/ These new; settlers

amended '

miles. With, the
resources

rapidly by settlers who travel by jet aircraft instead of

at the current

session

square

natural

'Myi, K
as.

There are some 40 million black and white television
sets currently in.use that will be
reaching the replace¬
ment stage. As color television continues to become
more

of the last frontiers in the world. It Is being populated

the

Banking' Department intends to
recommend that;the Banking Law
be

the

and the growth /potential

*['t

with

One must realize, however, that Alaska is in

i;*'

that

announced

428,607

petroleum,

(great.:-v

merger

same

compared

latitude, with nearly sixteen million people

an area of

can

products can be attributed to two principal factors: the
expansion of color television and the advent of stereo
FM multiplex.

the.
Finland, Sweden and Norway,

Alaska

Scandinavian countries of

Laws Expected
New

(321)

the second largest economic development in the Repub¬
lic.

After

decade

operation, the Colon Free Zone

is second Only to the Panama Canal itself in
producing
revenue for the country. This international free
trade
area

became Operational in 1953 on 96 acres of reclaimed

swamp

land. :In

that

first

year

business volume

was

$14,000,000. In 1962 the annual volume grew to $175,000,000.
'

With

■

growth record of 20% annually over most of
5

►

Continued

page

commence

lending program in 1963 with $18 million in long-term
loans,* available in participation with financial institu¬

and

he. would

that

port

the/ bill

the

present

♦Department's - arguments

sup¬

tions.

active*

coming hearings of the joint Leg¬
islative ^Committee to Revise the
Banking Law.

many institutional lenders,
One

Hatfield, Chairman of that Com-

Committee's hear¬

scheduled

ing

Jan.

for

Albany.;

can

banks,

'*'1

„w

'•

that

Total

'■ \

rise

13%, from $13.4 billion
billion in .1963, By

1962 to $15.2

1970 the annual, volume will exceed

J.;

.$2o,biiiion;

;

Industrial Electronics this.year will,

;;

account

will

recommendations

these

->;•

industry sales will

for

$3.1

billion

(up

from

$2.6 billion in 1962); which is 20%

in; addition to

industry

history.

SUperintbndeni Root also noted

-?"•*' ?

The year 1963 will mark the
beginning of the most chal¬
lenging and rewarding period in electronics

contribute

v.'.\

to the kind :of

Dealers

ROBERT S. BELL

and

Underwriters

willing to work and live

President, Packard Bell Electronics

^oridmic ^growttf ;
Which "is. the cornerstOrie>' of^tate\'
andmationaV hphby.^/C Y \
•?:''% *?
5

are

banking system of the State, to
increase, healthy competition; be¬
tween

others who

proposed legislation," said
Mr. Root, "will be a b.alanced pro¬
gram | designed; to strengthen, the.

that Alaska is "on the move".

say

true pioneers.

"The

truthfully

tunities with

that MrCRoot will be the lead-off
witness £t the

well-as

in providing much needed

Her people are anxious to share their
wealth and oppor¬

iriittee, has previously announced
*

and; Area

capital.

Senator Ernest I.

The

Small; Business Administration
Redevelopment Administration are

forth¬

the

number of
/technical " amendments
to
^the
"Banking Law which the Banking
a

of total

reach

twice

Department has already proposed.

volume./ The percentage will
30%

the

1970,

representing

growth rate of any other

WWNM

segment of the industry.
of

One

in this

Riecke &

YORK 4

work; if not our thinking, -during; the 60's and beyond;

other leading exchanges, announce

Automatic

that Miss Mary Blackwelder, Miss

dures to

Carol Buckley andFrederick W.

never

Dobisch

giant strides

are

of industrial

processes;

are

The

firm

also

Lorraine

Mrs.

with

associated

now

their Philadelphia office
tered representatives.

regis¬

announced

Rheams

'ville, Florida, is

now

kv.'

that

Smith

manager

has

the

made

nine

offices of Reynolds &

San

manager

Francisco

office,

■gomery Street.

sales

California

company's

425

proce¬

Meanwhile,
being made toward electronic control

space

•,C,
;iil.«.>.-.

.
i.i

.if;. ■■ I

Corporate. Issues

the ever-present possibility of

turning hot, there; are good reasons«to
by 1970 the electronic portion of military-

war

will

appropriations

closer

50%

total

;

will reach $8.8 billion in

Co., accord¬

the

extend business

can

Municipalities

Electronic /purchases by the Department of Defense
arid the National Aeronautical and Space Administration

ing to James L. Murphy, resident,
; partner.
Mr. Smith was formerly
sales

cold

volume*

>f v'

Calif.—Thomas

been

processing

programs and

believe that

1962), and will rise to'

Promotes Smith
tW.

space

the

Reynolds & Co.
I SAN FRANCISCO,

data

degree of skill, speed and efficiency that has

been even remotely achieved to date.

for

Titus-

associated

'.i-«***.?

Military-space electronics today accounts for nearly
60% of total industry sales. Despite an expanding outlay

with the company as a registered
•representative.

category lies in the develop¬

satellites, so
dramatically illustrated by Telestar.
Computers will do a lot of our

Robert s.BeU

Co., Incorporated, 1620
Chestnut Street, members of the
New " York Stock Exchange and

and.

ment of coirimunicatioh;

h. a.

—

most: important

immediate capabilities of electronics

With H. A. Riecke
Philadelphia, Pa.

the

Mont-

by 1970;

These

♦

1963 (up from $7.7 billion <in
$11 or $12 billion ainnrial level

figures

not

include

"springboard-to-the-.

stars" expenditures for research and

alone will spend $2.9
cludes many projects

billion for

development. NASA

R&D in 1963.

This in¬

of interest to the electronics in¬

; ~

dustry.

•V' Consumer products, consisting of
radio, stereo hi-fi and
television, will reach a volume of $2.5 billion in 1963
(up from $2.3 billion in 1962).
Both

dollar

and

unit volume

increase in

consumer

Private and Interim Financing

;■■■■■■*<
j....

•

■

■'

The Commercial and Financial Chronicle

Continued from page

JOSEPH L.

.'J

r,\ '

demonstrated dramatically that
this ancient instrumentality of foreign trade, which dates
back to the overland caravan routes and to the city states
of the Mediterranean,. can be adapted to 20th century
trade requirements.

ation. There is

for a port develop¬ ,/>
.

by' Panamanian

line will be owned by

new area

of the

use

across

the Free Trade Zone, thus

One

•

for

level

steel,

of the year.

months

first six

general

the

that

than

//'.:*/

of the

Graw-Hill

goods/;
'/-.*,/;^/C''/,./,/u./;
Steel production orf the other hand

ital
•

is likely to increase in the

of resources to: the operation by opening up
Zone to oil producers and shippers.

because

customer

inventory. No

first half

■

industry

will

industry

about

spend

automated

equipment

and

Mc¬

recent

■

20% r more/; for

/The impact of

1963

automation on rub-

ber manufacturing will be reflected

predict the;

plans

■

than it did in 1962.

accumulation /

one can

equipment

rubber

? to

study,

machinery

adding

plan to spend
and

automation./; Our

alo'he^; according

cur- ,;
•••

being

now

are

show

spending, like other industries,

rent weakness in spending for cap-

emphasis

company

optimism is the capital

industry which

surveys

firms

plants

on.

our

in /steel .consumption.-

slight drop

they did in 1962.

The

re-/./

economy

for

reasons

Recent

known.

pickup for

general economy in 1963.

main

American

there would be/

unchanged,

for the

the

made

if the present '

even

looking forward to
as

investment intentions

strong trend discernible, either up or

v;:VI?V

-ry'i
are

well

economic outlook is cloudy; even

in the first half because

interests will ;

the Isthmus. The

moderate expansion during >

mained

operated

Rubber Co.

Biltrite

American

;;*/!■

the

•

operations of some 200 com¬ :/
panies now utilizing Colon Free Zone services...
.
Within three months, Qtra Costa,.
A., a corporation
and

mildly optimistic for ,1963.

are

President,

experts differ, with
ranging from a small down-

turn to

processing and assembly

begin, 'laying an "Oil pipeline

;;/J

and the

down,
views

Cristobal, the Atlan¬
tic entrance to the Panama Canal. This nearby docking
area is connected by direct access to the warehousing, /,

Thursday, January 24, 1963

MAURICE J. BERNSTEIN

yy;;.

;

disregarding the uncertainties; of the" international situ¬

•

project to expand facilities at

financed

general

the

True,

Engineering studies are under way

Inland Steel

BLOCK

Chairman, Inland Steel Company

the Zone has

the decade,

ment

(322)

Joseph L. Block

the

introduction of better prod-/

Maurice J. Bernstein

"ucts that will be produced under
K
exports of Pana¬
extent of such additions, but; they r
//
/:///
It will also mean,
manian products. In the 10 years the duty-free port
were
sizable in the early months of. 1962 because • of ;;;.icbQditidris^ of maximum ./efficiency.
lower- labor ahd production costs.
^
J7 V ; •
uncertainty on the part of steel users over the possibility
facility has been* in operation, management emphasis
" Another, good /portent,. as far as - we are concerned/
has been on importing goods and services for distributfon Irof a strike. They may. be agairi in 1963 unless there is.

Emphasis in 1963 will be directed to

„

is that the .chemical industry plans to increase its ex;penditures by 18% for expansion purposes. It demontinue, Panamanian industry plans to seek markets for
/ ; Such an announcement would seem to me .well justi¬ / strates; I believe, that synthetics and plastics will .play
ah even greater role in the economy. '
its production beyond the range of its 'Own geography.
' ^
v
fied in the light of the present, high .levels -of - wages,

prompt announcement, by the, union that it doesnot
'intend to re-open the contract.
/'
.
"
a

markets. While this policy will con¬

to Latin American

fenced area of 96 acres in

is presently a

Zone

The

and

benefits,

the

inroads of

industry's

the

acute

„

companies

houses* offices and industrial buildings, Many

their

erected

have

built

buildings

occupy

buildings

own

leased land,

specification by

the

For the year as a

United States, England and Western Europe

in Japan, the

foreign* Competition.
whole

we;

'«

find the basis for

,American piltrite sales have increased 10 % in 1962
,1961 and we expect another good* year in 1963.
;

profit squeeze : and

over

•

complex of modern ware¬

which is located an expanding

in the

optimistic

Colon

steel

believe

industry

the most

some

outlook in the prospects

important steel-using industries.

dehumidified

and

for

warehousing is air conditioned

certain

kinds

of high value

are

headed

for

another

good

these

auto¬

the second half
ment in

ranging from 65 to 75 cents per square

and

key

packaging," labeling, processing

for

ton per

Zone, not

of $1.50 per

overseas-

The first

The

use

•

beginning to enter the

growth in the

in this

manner

expect

sum

upv

I think wd

can

expect better business con¬

ditions and generally greater

•

irr! industrialand'-;commercial

Chairman, U. S. Steel Corporation

j!/

in housing.

use

The

reOent

fine job in promoting thinner tin

cans

output

steel

improved level.

materials and the

few

has

months

will be slightly

which

three

building will be erected. - Spanish language

works—will be printed and distributed throughout

Latin America by a new company with 50%

steel

the

y; a

prof it performanpei

with

tially larger volume;

pass, *

:;compare

industry; in general, steel must; have

last*

sible

or;

higher prices,

hotlL/

..:

precaution against

work

tion reached
>123 million

sharply

ingot

stoppage,
an

-pds-

produc¬

annual rate of

nearly

tons./ In contrast, during

substan¬

one/ of

been

For' the first quarter

when steel > consumers

year,

steel-as

profits.,

favorably,

somewhat

building. lip 'their supplies* of

the third
or more

j the ownership in the hands of investors outside the
%

to:

comes

basis of comparison- is art exbeedly poor pne^ :To 'attain

/United States.

If this

industry has

mixed trends.

imprpve slightly as compared with 1962 but this

produced.

likely if the economy continues at
present pace/ The past " year, in

;

in each of which 98 to 99 million tons of

were

should

fboak3—multiple volume encyclopedia* classics and refer¬
ence

years

moderately
at

now

its

than in the previous

ingots

Further improvement diirihg^the next

seems

for soft drinks has been truly

to the. belief that steel .output for

rising

been

weeks, and production

'the

These factors lead

the year 1963

which has leased -six lots

the Jackson Publishing Co.,

sales In 1983.'

ROGER M. BLOUGH

were

this margin to in¬

slightly.

crease

remarkable.

operations -divorced from U. S.
Zone

synthetic materials and

slight improvement in overall con-

plate in its battle with competitive

to enter the

addition, we will continue to uphold our/ number
position in shoe soling manufacturing. Right /now

72% of the $100 million shoe soling market is based oh

of steel for cans should continue to grow. The

industry has. done

wholly owned subsidiaries—as in the past

new

control.

^development'^nd

month for storage.

Some American companies are

—-but

other /to; of^et/sluggishness

and shipping charges

fee basis, is offered at a general cargo rate

result of* the'incentives for invest¬

opportunities.

new

struction.;with • government. spending providing the push

required.^Public warehousing; with; the

Free Zone providing handling
.a

plant arid equipment .provided by the improved

There should be

keep merchandise under their own lock

manipulation

one

depreciation schedules; and the investment, tax credit.

meter, depending on the size and term of lease. Lessees
*of this space

Capital spending should accelerate during

motive year.

perishable merchandise. Warehousing space can be leased
at an annual cost

•

is a leader in luxury floorings, and has expanded into
.lower priced floorings, w<5 expect to take advantage of

of
;

•

Free Zone. Much of the

$hcnild; continue: to play an- important role
.flooricovering^fieid/ Since^ our ^ Amtico division

/ / Fashion

mildly ■

quarter of 1962 consumers

their

reduced

inventories,

/buying considerably less steel than

•

■

■Hi

they

actually using.

were

Roger M. Blough

annual rate of 82 million

tomer inventory

slipped

production
an

re-

suit, despite a 10% increase in the
volume of steel consumption, steel;
one-third

ingot tons. However,

cus¬

reduction slowed in the fourth quarter

while consumption

remained high and ingot production

moved upward once

For the full year, steel out-

again.

pnt/in 1962 equalled 1961 oiitput of 98^ million tons/ The
.actual use of steel in 1962 is estimated to have increased
by nearly 10% over 1961.
This level of steel consumption promises to

into/the early "months of -1963.- Steel

chinery industry was at

.use

continue/

by >the. ma¬

all-time high -in 1962,.; and

prospects appear to be good for that industry in 1963.
/ Construction demand has also been strong, while fourth
'quarter auto production was the best ever for that pe¬

the

appliance/agri¬
parallel

Steel consumption this year in the

riod.

culture

container

and

industries

closely

may

good volume of 1962. Moreover, seasonal influences

result in

may

some

modest steel inventory building dur¬

ing the first half of 1963.
zz Total

tons

steel

was

production

•

1962

about

million

considerably below the peak production years

/of 1955-57 when output averaged 115 million ingot tons;

yet the actual use of
close
But

(within
two

changed.

one

factors

considerably

while

1962

sulting in
net

country came very

First, in the 1955-57 period, the steel industry

exported
in

steel in this

percent) to matching the 1955-57 level.
in demand for steel were materially

steel

exports were down

than

was

imported,

and imports up, re¬

negative balance in steel foreign trade.

The

change resulted in domestic steel production being

eight million ingot tons lower in 1962 than if the 19551957

FIRST
Bond

Deportment

•

Head Office: 55 Wall Street, New York 15, New York

Teletype: 212-571-0830

NATIONAL CITY BANK

•

Stote ond Municipal Dept.- Phone

U. 5. Government Dept.: Phone 559-8331, Teletype 212-571-0877 • M«mb«

Depoii!

•

was

559-8571,
Cofpoijtion

export-import relationship had prevailed. Secondly,

during the earlier peak ybars of steel production there
substantial

inventory building by steel consumers,

resulting in steel shipments in excess of actual consump¬
tion levels.

In contrast,

in 1962 there was a net reduction

Volume

in inventories,

197

Number 6232

The Commercial and Financial Chronicle

...

depressing steel shipments.. It is estimated

that this reduction resulted in lower steel (production

The Alliance for Progress effort has not been

ful and

by about 6 million tons compared to 1&5-57 output.
one involving
foreign] competition

1962

other

the

basic change in the size

the mid-forties.

remains

pf consumer

unsolved depressant.

able

Nevertheless, the pat¬

is exercised in the

Angola have

apd^nouncjjdja.

^a'°r;.^ac,llty

product

quality,, in

however,- much
and

and to

There is great

ment of

emphasis, too,

products but even

new

must be increased*',

are

least

1962

and

may

summarize, it would

couraging with

;

15%.

research and develop¬
this emphasis can and

the

from 5% to 10%

; America.

field,

cost

countries

the

and

•'

state

and

Federal

prime ob¬
jective. The potential of modern steel-making methods
becomes daily, more and more critical in finding the
answers

taxation, also remains

io;steel's competition.

business

which

l*\V

w'M

*iM

•

end

;

that

had

the year

difficult

California,

will, produce

effect

their fire business which may

and' the

debacle

of many

market

crash

bloom.
This
tinue

appears

^.
should

boom

certainly

con¬

throughout 1963 as far as heavy*

engineering work. is concerned and
at least through * the first half, for
industrial 'plant

building. The latter

probably being somewhat dependent;
substantial

...

onny

reduction.

tax

enacts

Congress

Our

"market,;
ance

industry.

has

ened

cover,- v

insufficient

R. L. Braddock

rapidly

excess

virtually

excess

defensive

any

will have stabilized to the

1962 will be
Based

increasing

of the final

premium

very

M ^

;

Primary Markets Maintained In

heavy engineering construction will continue

good and with large major projects reaching the contrast
stage,

particularly

in the

Eastern

states

the; far

and

West. The total should be up at least 20 % over 1962.
Industrial building, at least in the first half, will
be up probably 15%

steel and rolling mills,

surely

manufacturing plants,

more, as

unlisted securities

chemical plants, food processing
months

and pulp end paper plants deferred for several
in l962 get.under contract.'
~
M 4
l''"
The outlook for gas and oil
be about the

same

product lines

T.
■

appears

•

'''

for 1962.

The Federal and State, Highway program in

all

areas

should be definitely up over last year.
•

All this adds up to a

the United

busy, year construction-wise in
States; perhaps up; on the overall as much

15%.

In the

foreign construction field, the outlook is spotty.

Canada coritinuds to stagnate.

Many projects promised
1962, and still deferred, show some possibilities of
being put under contract in the Spring of 1963. However,

for

to problems ; of financing, particularly in British
Columbia, nothing is certain. Probably a slight uptrend

due

1963.

In Mexico and Central

America, the construction pros¬

pects are brighter. A number of hydro-electrical pro¬
jects and harbor develoments have been let to contract
and

several

are

in the offing in

Central America while

the

attitude toward American business and opportunity

for

American

much
In

firms

join in construction in

Mexico

«v

VV-

j. 1 fJReilly & Co., Inc.
;,

39 BROADWAY, NEW YORK 6, N. Y.

208 SOUTH LA SALLE
^'1X

improved, particularly since the Cuban crisis.

South

America, the picture remains rather black.

STREET, CHICAGO 4

(

J. *Vr.'

•^

t-y.

U.% y,

can

Which account for about 9*5%

results, the loss ratio is 74.6%

construction, while! the irate
high, the missile construc¬
tion work should tend to slack off, being, however, to
some degree replaced by space projects, particularly in
Public

existing pri¬

bad year for crop hail insurance.

current reports

the field of military

the South and Southeast.

primary writer is

iargesj. kacki0g of construction con¬
In

steady inflation

point where the venture

be better appraised.

of expenditure Will continue

to protect

measure

in its "history.

tracts

ac-

business. Most have entered

aMM-

own

newly

business. A combination

few domestic excess writers and the reinsur¬

development has coincided with

a '

liability

business; others are prompted by a genuine hope
of profit. Results in this volatile field, however, defy
prediction. Perhaps five years from now this new market

dangerous competition among reinsurers caused by ex¬
pansion in the domestic reinsurance market. Many of

sthe new; writer? haye

the general liability, and auto¬

primary underwriters'

industry, today

the field

insurance to value and experimental underwriting with

package policies. This

substantial

mary

been

ratio

general

factors, largely centered about

willing to entertain

is the

plagued by inadequate rates, broad¬

with! the

will start 1963

Company
.

the

whether

primary

to be in full

have

"increasing demand for higher liability limits. Whereas
?iii prior years these problems felU largely to the London

can

and its impadt upon jury awards, has led to an ever

;

combination of several fac¬
cause

out.' mentioning- the

highly competitive condition in the

stock

subsequent

catastrophic. losses

volume

quired interest in writing

be the

tors, but the overriding

limited

Any commentary

due to

where

•

worst for several years. This will be

the

lines

products liability

many

terrupted particularly in the indus-

mobile field in this country would, be incomplete with-

will

result?

gen*

premiums.

be.

conflagration;; in

liability results, both automobile and

liability

classes such

1962

which

and

Company

year or so, bank losses can be expected
they have in most previous years. Com¬

Third party

general

f. ' rV f

will be profitable. The

problems in

trial construction field, by the steel

March.v However, third

of 1961 for 1962 and which was?In¬

spite of the absence in 1962 of

reinsurers

The overall upsurge which was indicated at the end
\

-v

disaster of national significance
such as an East Coast hurricane or?auJ

building in the United States for 1963

is most encouraging. -

; f

any

The outlook for heavy engineering construction and for

••

high.

eral, have been satisfactory in 1962. Results can vary
considerably among various reinsurers, particularly on

BRADDOCK

'M'l

r".

mercial fidelity is not expected to be profitable.
:

■

;

President, Morrison-Kmidsen Company, Inc.

has

are.

continue

J. B. BONNY

iVU

^.1

quarter, indicate

ipate intensified activity and continued progress in 1963.

industrial plant

quarter figures of 1962, coupled with trends in the fourth

in 1962, and I antic¬

many areas

beavailable until the

Progress was made iri

to increase

South

i—5-

cases

improve for

Final results in reinsurance operations in 1962 will not

poorest

contract

surety lines and public official classes
have produced a solid underwriting profit. 1963 may not
be as good as 1962. Contract experience is unlikely to

is running
early frequency of

miscellaneous

should

classification
was an

Salvage
underwriting has
improved, but it is expected that there will be more
losses, and more dollars of loss in 1962 than in 1961. The
on

en¬

President, General Reinsurance Corporation

bond

some

most

are

„

ROBERT L.

profits, including further emphasis
relief from unduly restrictive

squeeze on

reduction

prove

in volume

construction

blanket

therefore be capable of producing an
underwriting profit
in 1962. The contract category is still in trouble.

with the brightest opportunities in the

market

common

✓

probable increase

foreign

bankers

claims

that the construction

appear

in the United States

widespread corrective action is

any

under the brokers blanket bond
classes, but by
year-end the record may have returned to normal for
the year. The fidelity portion of the business should

prospects for 1963

before

profitably at this time. There

Indonesia, Thailand, Malaya, Pakistan

Continuing attention to the Tong-term solution of the
cost-price

The

Portuguese

sizable projects in .mind

good

entirely in
hands, but serious underwriting losses will be

taken.

i"better.n-Mr
To

own

sustained

lesser extent India, Australia and New Zealand

portfolios. Reinsurers have their fate

their

engineering field opportunities

replacing steel plant and equipment if we are fur¬

ther to improve our market position.

ance

continue to offer good prospects for construction in both
the industrial and heavy

dhat must, be done in modernizing

attitudes insist upon profitable
underwriting on reinsur¬

are up..

even

Over-all, reinsurers' premium income will show
will continue in 1963. The only hope for

increase and

better results lies in the extent to which management

good if caution

are

Sudan, Rhodesia and

some

ready; cohie into service in the recent past, provide pne
important answer to the challenge of foreign compe¬
tition. These facility developments in Pittsburgh, Chicago,
and plant locations across the nation offer the latest
controls,, in; superior service ^nd
efficiency of operation. There is,

. i„ the Far East, in-spite Of politicat disturbances hnd
the/Sinbjndiah border -troubl^f the'construction pros-

and best in automatic

serious.

Iran remains .touchy,

and

promising record of this.': ceHaidf§p6ts,Vconstru<rtion prospects

competition; U. S, Steel has Authorized
:

up as muchsas 20%.

Centtal and South Africa remain in trouble, but in

actively wrestling with the problem of foreign

are

in. 1963

area

but on, the whole,; construction* prospects

pf steel.

use

plants in this

construction; prospects in North Africa and the

Iraq, Kuwait,- Egypt,t Syria

fifties, sustained by the favor-.

generated out of excessive attention to premium growth
of it is unsound and the
consequence will be

much

Middle; East appear slightly, improved over ,that of a
year ago* The political situation, in some countries like

contrast to the .current situation in both factors, has dis-.
nation's internal

new

The

they have profitable results.

Since most of the competition for reinsurance has been

the ohtlook" continues very bright with the.
probability

export-import balance and inventory building,, in

torted and obscured the

assume

activity is not feasible. Foreign* competition

;

In Europe, particularly in industrial plant; expansion
and new construction .in the .common market
countries,

With inventories now very low*, a ma-

tern of steel sales in the

encour¬

terial further .cut in inventoriesr at the current rate of

economic

Experience lag is an inherent feature of the
reinsurance, business and until premium income levels
off or declines many of these new reinsurers may falsely

every

agement for the American; construction. industry.

steel inventories, explains the great bulk of ther disparity
between recent levels of steel output and the peaks

country does not offer much

income.

success-

the unstable, political, climate in almost

South American

.These two factors,
and

(323)

Continued

$79,006,000
on

pag& 36

(324)

Continued

from page 35

of business.

line

With

developed

suffered

Industrial

unfavorable results

with

Colorado,

include

textile

The

frequency.-Montana

states

other

stronger position, business should be able to turn in
better performance.

em¬

underwriting loss. Many states
was hit very hard and

severe

of new industry has provided expanded non-farm
' V'
ratio exceeding 40%, the 5 ployment opportunities for residents of the area.;

expense

diversification

continues

rapid

Naturally, the well organized and well managed com¬
panies with aggressive marketing programs will do better

pace.

industry, long dominant in the South,

con¬

an important element in the economy, but
plants producing electronic components, chemicals,
transportation equipment, pulp and paper products, steel,

live

new

1962, there will be rate adjustments in the states which
suffered bad losses. While the increased premium rates

home

will be of

results

tries

favorable, though not quite

1962 aviation results were

small

the

large life

The

strength of

spread

forced

hit only one or two categories

a.year.

;

area's

ahead

than they have in the past while the

system

companies

•'

':"

JOHN

business

placed

with

look

•"

generally. As for
Lear

our

reinsurers

use,

which

served

area

unprecedented

Gulf

12 %

This

kilowatt

line

trend

growth

reflects

long-time

with

cultural

has

been

and

same

time,

axis

own

365.237

psychological recession

Excellent posif

ahead. This is due pri¬

move

add

Administration's handling of

appliances, build

are

in the mood to buy cars

houses and proceed with their

new

managements took

its

negative

aspects.

some

In 1962

Many

ordered necessary steps to put their companies in better

the lowest in the nation.

OG&E

will

assure

expanding

invest

about

adequate
needs

supply of

this

course

evaluation of the major

hew

uniquely alter

may

through 1963.', Shaping
this]1 manner ,V$e

view of 1963 in
a

year

of real significance ahead.

single

any

year

that

now

can

pivotal

a generation, 1963
it

can

such

1961-62

cyclical upturn.

our

Over

the

years,

present position of strength and

facilities and personnel.

con¬

variations above and below the steady growth trend
up¬

Starting the

new year

cycle

from this

ward.

Having

bring
.

passed another cyclical high point, will
downturn of the sort we usually call re¬

now

downturn of the sort

downturn"

or a

...

to because

name

sound

1953,

1956,

the

or a

we give
scarcely notice. it at all? This

same

and

have called de¬

drift of the sort

I960.

riddle

But

faced

there

1948,

different;

ring to the crystal ball today, and it is this difference
that will make 1963 pivotal. Looking
carefully, we see
these differences from other post-war business
cycles:
•

(1) An end to the post-war period of inflation. For

the present and

the years

little

for producers to recover cost increases

1963,
dollars
to

or no

room

immediately ahead, there is

by increasing prices.
(21) A developing shortage of

are

power

rapidly

can

come

condition. I refer specifically to such things as inventory
controls, money management and more effective use of

increased

million

must

evaluation of where

today and the

course

tells

have reached

investment

new

OG&E

pre¬

national wealth through a magnificent history of
steady
and consistent growth, with short-term business

30,000

among

area

best

course now

critical

its

/^year.-;^
have reached, and have passed,: the high

point of the

hard look at their operations and

B|G MIDDLE

service

The

economically] for
F. Leonard Bryant

certain and

course.

our

OPPORTUNITY

mile

such

any

Thie economic

process.

influences that

1951,

square

the

stand

see

the

People

healthy effects Us well

rapidly

continued influx

the

through history to get
to this point, to which we must then

may

have followed

and

no"

rates

we'

cession

power

Corporation

solar orbit and rotate

from

have weath¬

pression

Industrial

Chemical

one

times

the past months,

over

that

1963

IN THE

reasonably sure that in 1963 the earth will

set

planning for the future.

between

through the mechanization and
solidation of farms. At the

The; "slow down" in 1962 of activity has had

industry is

output

President, Hooker
can

our

the Cuban situation.

being corrected in this region. Agri¬
Harllee Branch, Jr.

the economy

F. LEONARD BRYANT

the

1927

activity in

imbalance

and

ration of public confidence as a result

John G. Brooks

developing Southeast.

agriculture

see

government' towards

good year for

marily to several * f ectors—ihost im¬
portant ofyWKfcli
tLerr¥sto--

steady expansion in

produce
-

the economy is in an

hours.

since

all segments of economic

the

seems

ered

predicted to in¬

billion

increase

System's
and

expect to

sympathetic • and

part of

foresee of that

Looking back

approximately 8%, reaching

total

1963.

the

dictable

tiori^fd'
are

company,

should

apparently

progress of the earth's greatest nation, however, is * not

Co.

Energy sales
crease

own

attitude

high level of military and consumer

realistic

Siegler, Inc.

successfully complete

panies, operating subsidiaries of The
Southern

and

•

V'"

combination- of- renewed

basically optimistic.

Alabama, Georgia,
Mississippi Power Com¬

and

public confidence,

spending

believe

increased. Consequently we are

the

summary,

expected to reach still higher levels in 1963 in

four-state

military spending in the elec¬
tronics and:aerospace fields will be

residential, commercial and
an

that

BRANCH, JR.

rose

domestically" and-abroad."*

a better consumer goods market for
1963 an<t there is every indication

President, The Southern Company

industrial

emphasize that the well managed aggressive
company can find profitable- markets both

mercial. Prospects are favorable for

Sales of electric power for

I want to

American

over 1962 in every phase of our activities.
Siegler's business is 60% military and 40% com¬

'IF

HARLLEE

Germany,

throughout- Hhe

good year for American business

efforts-

manufacturing plant in Holland where we previously
a
joint venture distribution arrangement."Again,

improvement

upward trend in

domestic

;

marketing-

had

G. BROOKS

of the Board, Lear

I believe 1963 will be

worse

the

business

Chairman

given

continuing

are

market, extension of joint licensing agreeiqentsi '
opening of central office in Paris and an investment in

requirements,

power

$160 million will be spent on new power facilities in
1963, and more than $550 million during the three-year
period 1963-1965.
•

should continue.

are

expanding

largest expansion program in their history. More than

and

It could be

weakness if several major lines took a bath in

In summary the problems

market.

common

included expansion of plant facilities in West

capital;investmentbf $87 million.

the

Southern

the

competitive

added

meet

strength when the catastrophes

European

during the past year we topk a number
steps to strenghten our activities in Europe. These
case,

common

large multiple line company is its

of risk. It is

volume

people. Of equal importance,

existing industries within the territory expanded their

to follow suit. Profit could well disappear.

pressure

our own

companies—now more

themselves

with

companies both in the life field and the

casualty field find

American companies in the

capital outlay

Some of - the

year.

cancellable and guaranteed renewal contracts have been

confined

$110 millidn, ahd will provid'e employ¬

consolidation-

practices of life companies in this field • are becoming

the

indus¬

Southern

operations to provide-more; than 6,000 additional jobs

satisfactory

felt and leave the future clouded. For many years non-

1962,

an expanding
rising standard of living. Opportunity
is still very much alive and I hope will continue to be.
Further, there is promise as well as challenge for

written, by casualty,

Sickness business

and

than

ment for more than 10,000

provided to cover exposures of jet airliners for both hull
and third party liability exposures.
Accident

rhore

year.

new

announced for location within the

system area. These industries represent

good, as 3x96,1, Conditions .have. stabilized as much, as
can be expected in this line where huge limits must be

companies will have

were

to those with drive and skill. I don't

the

population, and

areas.

system and the

innovations and creative ideas. We have

of the area.

During the first nine months of 1962, 119

will

these essential

enterprise

charge that this country has stopped
growing. There is plenty of room for new products,

.
t

that are: weak in

competitive free

rewards

dependent on weather conditions, is impos¬

sible.

appliances, food, rubber, plastics, and. petroleum
products are giving new breadth to the economic life

1963, any forecast where

assistance in

some

are

those

than

tinues to be

Wyoming, Texas, Kansas and, in the southeast, Georgia,
Florida and South Carolina. As a result of the losses in

growing

look

satisfy

generation from

profit

requirements.
national, data-and individual

both

cash

basic

company data over recent years, along; with projections
for. new investment for the. years ahead, show; a con¬
tinuing decrease in our capability of providing; the in¬

meet

critical

the

vestment needed for economic growth.

area.

•

(3) The;end of the road, in gold movement from the
United States. Our international accounts must be made
to balance

Percent
1962

OG&E

||1§

Electric
Net

HIGHLIGHTS

Revenues.

Income

Earnings

per

Dividends

System

$65,867,000
12,135,000

our

ment

$1.28

$1.20

6.7

$ 1,138,000

21.4

1,040,800

902,100

15.4

356,706

3.1

Demand—Kw

367,594

Oklahoma

the future

most of these to

our

dis¬

to the. fact that th6 stimulation

have

only the forces of

situation to build on, and a

to match. Will

Gas

Don H.
and

Anderson, Manager, Industrial Develop¬
Electric Company, Oklahoma
City, Okla,

Kennedy, Chairman of the Board

and President

answer

"normal" growth

competitive world situation

see

can

our

adjustment to

carry

(2)

the

them

new

our

innovate

opportunities

unit
.

post-war competitive
down?

that question in

favorable one, I

possible.

upward,,

answer

(1) We prevent

duce

;

our

economy

begin to

OKLAHOMAfsi ELECTRIC CO.
Donald

to maneuver.

of post-war recovery world-wide is now done with. For

v...

room

1962 Annual Report write:

Department.

out of

world.

All of this adds up

world

For

run

(5) The completion of post-war recovery throughout
the

$1,382,000

Total Customers

we've

16.5

$1.84

share—Common

per

advantage.

19.1

$1.58

free-world producers, with

12.8

14,456,000

.«

Generating Capacity—Kw

OF 1962

Increase

$74,276,000

sWe—Common

paid

1961

(4) Unit costs discrepancies between U.S.A. and other

will

1963.

The

believe, but only if—:

costs

from

rising, and

re¬

take

advantage

thereby made

change

possible..-

and

Number 6232

Volume 197

cost" of marketing, admin¬
output with the same ob¬
jectivity as we apply" to unit production costs.
(4) We
cooperate with government to
develop ;
administrative policy and legislative action needed to

(3) We control the "unit
istrative, and management

The

our

that

Mvtk

;;v

CHESTER M. BROWN

1962, reflect the
has been

from

in most
In

panies

Buffalo

Great

& Quincy

before
were

and

Chester

creased

Brown

alone

volume

sales

1963

proposal

will

profits to reasonable levels.
capacity and price-cutting—
largely caused by the increasing number of non-chemical
companies going into chemical production—has created,

of outer

chemical products

••

Co.

Specialty

will

take

place

its

decade of continued progress and

inevitable

the

space

creasingly
turns

war

warm

be expected.

complexity of chemical marketing. This is likely to be
accentuated as negotiations authorized by the Trade

the

average

and

technical

know-how

required ,of filter

fact that we have
different filters.

is illustrated by the

designed-more than 15,000

continuing its research to further
of electronic filter, design and
manufacturing. To supplement our internal R&D work,
we recently installed a computer in our design depart¬
ment. The computer is currently programming 80% of
The

company

refine the state-of-the-art
William H. Burgess

annual growth rate of 50%—

comparablexto the annual growth of the company
past

miniaturizing filters

manufacturers

faster than other segments of
within the frame¬
of these industries, Electronic
its

in its industry stems

ativity

world

electronic and
industries will continue to

maintain

Burnell, & Co.'s emergence as a

from its recognized capa¬
to meet the need for
smaller and smaller components.
Some of our filters
are no larger than the head of a straight pin.
The cre¬

Specialty Co. is expected to be able

led by the European Economic Community, and

the great progress that has been made by many nations
in chemical and other manufacturing, have added to the

used in terminal bays

tub*

small measure,

bilities

the economy. And
work

leader

actually at war.

grow

Unpredictable is the, possible effect>of international,
trade in chemicals, The advent of large economic trading

:
.

Therefore, the
aerospace

addition, Burnell filters are

expen¬

and recognition

by transformer

the

mation.

the cold

given to the fact that the free

in the

pioneered

Co.

manufacture Of filters.

highspeed telegraph message centers, in microwave
and data transmission, computers and industrial auto¬

prospect

evident. Defense

travel and supersonic

ditures will also increase as

during

Continued

on page

14 years since its founding.

Expansion Act bring about basic changes in the tariff
structure,

and American companies continue to make

commitments in overseas production facilities.
The extent to which these moves will seriously affect
the profitability of domestic chemical operations, and the

heavy

Firm

Trading Markets in Over-the-Counter Securities

earnings to be realized from foreign investments, is not
now

Private Wire# to:

BUDD

For Banks,

President, Great Northern Railway

Brokers,

Results; of Great Northern's one hundredth year, of op¬
eration' will

than

somewhat better

final results of 1962

Dealers & Financial

income

will. be above previous year's $3.07

f^-per

Ghare.? ;;V,::;

:i-

Institutions;.,,

Great Northern's freight volume in

;

While

1931.

operations, will not be known .until

present indications are that net

lgte- .January,

1962

„

the

slightly

was

level;. and

above

passengerbusiness

was

1953—the

Your Orders \ Invited:

impact

At the

highest

since

close cf the fair in late October GN's

^^lhger J revenue was nearly 24 %

b^9^^^^^3:ve^^^ed- :'rjfcp?b^-about:
'

■

John M: Budd

a^ the'Cnd""of* 1962:
The?;iOO^r'graih' crop;; afong Great4

Nor thern was the

.Inquiries

grain production.

Qo.',

,-or';45alerofk'.

Currier & Carisenj Incorporated
L<buisvilleJ±2.±L---The Kentucky Company
Minneapolis— ^L-Piper, Jaffrdy & Hopwood
Philadelphia-., —H. A. Riecker&. Cq:, Inc.:
,

Portland}

Oregon<*±±<LL^t*.->Black & Co.? Inc.

Antonioj.\jDeWar, RohertsoTV&. Paneeast
San Francisco^--—-Sutro & Co;
St. Louis---—--Fu8z-Schmelzle & Co., Inc.
Washington, D. C.

San

Rouse, Brewer,

Troster, j Singer
■

expected that GN's traffic volume will be

agement shares the industry-wide feeling that substantial

will be made in the long, uphill battle by the
nation's railways for equal competitive opportunity with?
of transportation.

Members: New York

Becker & Bryant, Inc.

Co.

Security Dealers Association

Trinity Place, New York 6, N,

Telephone. HAnover 2-2400

„v

:Pittsburghyj^ZtJ.xAtihut8^Uestrahge':&Ud^^^0

A substantial part of the

progress

Kansas City, Mp.

•;''wi- %%:i;^ Barret,' FiibKNPfth

previous year's

slightly higher this year in line with the anticipated
increase in general business activity in 1963. GN's man¬

on',

best in many years,

modes

•

Large- Blocks- of Stocks-

territory now are better than at this time a year ago.

other

Invited

.fthe Purchase

past year's grain crop is in storage for movement in 1983.
Moisture' conditions generally in GN's grain-growing •
It now is

-—- -

extremely encouraging recovery

from the effects of the
on

Co., Incs

Chicago------~~~~--<~Wm.A.Fuller & Co, f
Cleveland
N. Russell & Co., Inc.
Columbus, O.
-Vercoe&Co.
Dallas---/-Dallas Union Securities Company i
Qetroit-.------>~±'-~~Baker, ,Simonds &:.Cbi/
Grand Rapids—King and Company
Hartford--. —-Coburn& Middlebrook, Inc.
HoustOn-^P-.-.—-PA. G, Edwards & Sons
Indianapolis
-John A, Kemper dk Co.
Kitn8asCity,Mo.-^-t--—-H. O. Peet & Co.

1981

the

of the £eattle Woirld's Fair,

•

drouth

S. Dickson &

apparent.
JOHN

indispensable components in aerospace technology.

1965,

providing for substantial research expenditures and
capital outlays for new plant and equipment, both here
and abroad. Given reasonable economic conditions in
1963, this "manifestation of the industry's, competitive
drive and confidence in its future, together with the
strenuous effort on its part to reduce costs and improve
efficiency, support the view that a modest improvement

reception

and Sparrow.

global ('transportation. / becomes In¬

ate

•

million, and Burnell & Co.. as a

logical
growth
electronic and aerospace industries during the
of the 60's. The participation of private industry

increase

in price stability of a few key
has been welcome, although spotty.
Reports indicate that a number of chemical companies

ment, in recent months,

groups,

..v.-

•

during 1963 in major programs such
as
communications
satellites
will

domestic and foreign markets.
It is understandable, .therefore, that a slight improve¬

ducers, in both

may

the

decade

•.

Electronic

Nineteen-sixty-three
increment of

to cause, marketing problems in af¬
fected product lines. These factors will further intensify
the strenuous competition among primary chemical pro¬

BURGESS

WILLIAM
President,

and will continue

earnings

after filing

sometime

submitted

result

filters

impulses

industry's volume should approach $70
leader in its field, ex¬
pects to be an important part of this growth.
When Burnell & Co. was founded in 1945, as the first
company to specialize, standardize, catalogue and ad¬
vertise electronic filters, it had only a handful of cus¬
tomers. Today, the customer lists number more than
3,000 and we have designed and produced filters for
the guidance and control systems or associated equip¬
ment of many important space vehicles, including the
Atlas, Saturn, Polaris, Jupiter, Minuteman, Sidewinder

briefs.

can

manufacturing

in chemical sales and

most

H. Murphy set

examiner Robert

restore

Excess

railways

Commission examiner
July 10, 1962. At the final hearing

undesired

Today, as imagina¬
tive engineering creates more intricate electronic de¬
vices demanding greater reliability of their thousands
of components, the electronic filter stands as one of the

Commerce

ICC

flashes

companies, primarily as a sideline.

the date for filing of briefs with the
commission by all parties involved in the proposal. The
examiner's recommendations to the ICC on the merger

Jan.

effort

this

concluded

Minneapolis

selective

earth,

that, filters were manufactured

Before

Interstate

the

and

design

and the Spokane, Portland & Seattle

that sort out

Mariner

back

would

Burnell

Norman Burnell

the proposed merger of
Northern, Northern Pacific, Chicago, Burlington
hearings

super

—

electronic gibberish.

area.

Extensive public

successful,
some improvement in profit margins
should result, but it is fallacious to
believe that cost reductions and in¬
that

elec¬

17 years.

— electronic
cir¬
function! Thus, when

such

out

screen

Cities, Duluth-Superior and the Toronto-

Twin

the

administrative functions. To the ex¬
tent

satellite

that

the

sales,

production,

pipeline's main trunk extends from Lignite, N. D., north¬
west of Minot, to Clearbrook, Minn. The 16-inch Portal
line connects in Clearbrook with lines serving refineries

profits, chemical com¬
giving increased emphasis
reduction and greater effi¬
in

cuits could not

information

ciencies

and

filters

ership with the Hunt Oil Company of Dallas and North¬
western Refining Company of St. Paul Park, Minn. The

are

cost

Without

Pipeline Company, in which Great Northern shares own^*

squeeze.

minimize

effort

Inc.,

signals

still inadequate

are

filters

unwanted

product lines.

squeeze

cost-price

the

facture

in 1962 by the Portal

crude Oil was built and opened

Corporation

margins

Co.,

"gateways"

However, the

Profit

Burnell

for

specialists in the design and manu¬

electronic

most chemical companies for
moderate upturn in business in the past

relief

well

excellent

tronic networks for

improvement in.sales volume
accompanied by price weakness, and, in con¬
sequence, has brought no significant

few months/

communications and control, and promise con¬
tinuing growth for the industry, as

space

provement program was on a more moderate scale than
those of recent years. A substantially larger capital im¬

sales reported by

Record

provement program has been authorized for next year.
A 373-mile pipeline ,for transport. .of North Dakota

;-.\

Frcsident, Allied Chemical

dition.

aggressive seekers for success,

has ever seen.

nation

our

probe and Telstar communications satellite point up
the increasingly vital role of electronic filters in aero¬

continues to be in
con¬
The company's 1962 track and equipment im¬

GN's physical plant

States' Mariner Venus

The recent successes of the United

coming session of Congress,.

business enterprises the strongest

(6) We make of our

competitors and the most

President, Burnell & Co., Inc.

and effective headway is hoped for in the forth¬

in 1962,

educate ourselves, our government,
publics to the realities of our economic world.

BURNELL

NORMAN

consider corrective legislation

Congress will

inequities and inconsistencies in public policy on national
transport, and recommended Congressional correction of
this chaotic situation. A start in this direction was made

(5) We strive to
and

new

generated by President Kennedy's precedent - making
message last April on transpor tation, in which he cited

American industry competitive.

make, and keep,

(325)

Financial Chronicle

The Commercial and

Teletype 212-571-1780; 1781;

1782

■

'- :

The Commercial and Financial Chronicle
38

is effectively helping us to

design work and

Burnell

promise—crystal filters. As the
name implies,
crystal filters are made with crystal, a
piezoelectric material that has special electrical charac¬
teristics.
It is made from carefully cut and optically

Crystal filters provide excellent
performance and reliability, and will find a growing
ground slabs of quartz.
market

electronics becomes ever more com¬

as aerospace

industry's crystal filter vol¬
rapidly becoming a
major portion of the filter industry and miay some day
be substantially greater than volume of conventional
filters.
We believe that about half of our own total
volume by mid 1964 will come from the design and
plex and sophisticated- The

already close to $15 million, is

ume,

•,■

holds "great

that

field

//■/i ■
/./' :X/ // ■/
Co. is also beginning operations in a new

labor.

time and

Thursday, January 24, 1963

realm

uncharted

the

building of

distant

include

space -

This

shift

back-to-the-city

households, the need to

and more liberal

depreciation allowances.,
industrial construction expenditures are ex¬

Private

millions of dollars

These have led to orders for many

pected to be a shade lower in 1963, according; to our
studies. We expect this category to account for about

devices for tracking, aiming and

worth of sophisticated

growing propor¬

people in the population, a

of increasing numbers of

economize land, easy mortgage money,

is being stimulated by the

area

tion of older

the

family of automatic celestial guidance and

navigation systems.

during the next decade.

which
the company is very proud.
Its contributions over the
years to the nation's explorations of the skies and beyond

to 35%

1963 and is expected to increase

of all housing in

of technology. * Their work

producing additions to a long list of "firsts" of

solve

savings in

problems with important

technical

difficult

ing to still newer frontiers

Continued from page,
our

(326)

missiles and space vehicles. Some
actual use and are scheduled for use not
only in advanced jet bombers but in missiles and in;
orbiting satellites to' be Used as astronomical observa¬
tories hundreds of miles above the earth.
V f'
;/
V/ The parent 'compariiy; Standard Kollsmari Industries, is
the largest producer in the country of- television^tuners*
One of the most expensive subassemblies in. a teleyisior
receiver This Is an ^xpandirig. field .as new sets come on
the market with better reception; / and /as'thecost; of
navigating aircraft,

$2 J billion, compared to $2.8 billion in 1962.
Liberalized depreciation rules and investment

of these are in

tax
in industrial
building. However, if these tax measures5 are supple¬
mented by additional income tax "concessions- during
1963}' industrial. construction could well exceed the '62
credit

...

have

shown Tittle

yet

impact

level. ;
:

„

Commercial and utilities construction is expected to

increase in 1963 to a combined total of $10.8 billion, up
X
,;3 %vover/last/year. The continuing „ demand for/more
color, receivers comes-down.■ *
■ ;■ •
•
'
'
As man moves closer to the conquest of spacej BurneBX >
office space, more electricity,' natural jgas and telephone
Our timers 'are used - in the: best-known brand-name
&; Co. will continue; to make significant contributions
service should continue to support a high rate of con¬
television-receivers. With Trie requirement for rill-chan¬
to the technological and scientific advances of the era;
struction in these categories.
nel tuning by 1964 and with gains in color television,
We are looking ahead to continued progress and growth ;
Expenditures, for sewer and water systems construcwe look ahead to ■substantial increases'iri'volume; and net
in.all of our operations in the years ahead.
,
tiqn isl expected to rise slightly in '63 to $1.8 billion. The

filters,

manufacture of crystal

income in 1963.

JAMES 0. BURKE

■

Our Casco Products

President, Standard Kollsman Industries Inc.

1962 in its volume of cigarette

arid changing population patterns.

tinguishers. Several new items are being made ready
industry and this company, one of. the i
for introduction by this division. Casco, which "is the
leaders in the allied field of aviation since 1928, count
underscored by hard
that indicate the promise will be realized.

1963

facts

bright with promise,

itself

Kollsman

Standard

m a

significant progress in advancing the

transition

planned
tional

role

aviation

with

equipment to

'The heed fori additional educational and institutional

tradi¬

directly

supplier to the fast-growing aero¬

industry.

space

./>.

electrical tachometer

duced the first

the

forefront

the

years

motors for

significant

milestone.

•

As 1962 drew to

Instrument

successful

was

merits';

James O. Burke

obtaining "

important

highly important program of the
Defense Department. - The Air Force selected Kollsman
as prime contractor andf manager for the AN/USQ-28
photo mapping and geodetic survey systems. -

contract for

and

new

The amount

obligated at thri outset

it will go toward the
tems 'tot RC-135A

Looking ahead, the

po¬

recognition being

the

pected that defence and space expenditures
be continued at a high level but increased

that the Kollsman division is ranked among the

means

nation's top systems management 'companies on the Government's procurement
out

over

other

list// Kollsman -Instrument

companies, including

won

the; top-rated
.

;

blue-chip
field,

and

defense hiahufacturers /in the aerospace;

/.'

»;.

••

•

vV//vX:"'//:.

What the unit will do will be to manage, develop
manufacture

tional

this

important

photographic

and

system, combining mapping cameras,
inertial

accurate

navigation

system,

and

of the entire free world with

maps

to now has not been

an accuracy

that

em¬

been an area bf major endeavor

at Kollsman for many years.,

Standard Kollsman's males'

rose

steadily from $59 mil¬

lion in 1956 to $104.3 million in calendar 1961.

military,

various

arid

LOft-;

Wiltnpt only;

space,

rewarded

the past year by

the photo mapping end

tract, and
field

one

data

geodetic

display,
on

shift.

system con-'

survey

for $1 million in the

downward effect
with such

such important contracts
and significant

new

nevertheless

had

temporary

income, which is usually the case
\ •
r
;
;
.

For nine months of J962 net sales were

$67 J'.million

However,

commercial ' and. consumer

The outlook for the construction

good.

■

•

economists have just Completed ri - study thgi indicates total construction expenditures for 1963 should

There

;

J-M

about 4*61 billion4

—equaLto the record level established in 1962.

exprict that ari; additional $22. billion should;, be
spent during the year; on maintenance..and - repair ..of
iexistlng structures,", bringing totaLindustry^activity dbj a;
record high. V ,x*s
^
We

Some of the outstanding features of the.

taxes,

$2.1

was

million,

against

/,<

Standard Kollsman continued to spend many millions
research and

development during the

year

1962. The

is hopeful that this investment will be repaid
times over in the years to come.

The

possibility of

and

private,

are

•]

estimates

work

the optical electronics and

guidance system for

Project Apollo, the program for landing
the

moon.

The

••.

•■■■;*.

•.

subsidiary, under

headed by David

.///
an

/ *

X -.</.'//

astronaut

/,//'

energetic management team

Nichinson, has

team of brilliant sci¬

entists and engineers well along the research
paths lead-;

new

construction

indicate that

expenditures,

costs of

markets

are

residential

Also

current

additional $8 billion will be

/ The

;

seas

at
are

)

capital

expenditures

substantial level

This

area

should account for approximately 29%

The

probably

;

will;

domestic production*

improved and expanded and as new over-,

operations are constructed to

maceutical

the con¬

needs of.

coming

year

many'
will,

areas

provide for the phar-X
of the world.-.;.

many

be one of
industry accus--

senses,

units.

prob-T
increased

for

industry's

facilities

important stabilizing factors to the entire

tinuing high level in the construction of multi-family

production and of research.

continue

remodeling, maintenance and repair 1

in the housing category is

•

research will continue to rise by
about/10%; In 1962, the industry spent in excess of $270 /
million in this effort, and we can expect such expenses
to go over the $300 million mark in 1963.
A larger por¬
tion than ever before will be devoted to basic research./

construction field.,

significant

•

;

Expenditures

spent in the residential area for maintenance and repair
of older homes. The

products. "

ably will have to bear a larger portion of the

existing structures. X :
from

.reqiurements.XT^

prices will remain fairly firm. Existing prpducts

the remodeling market for additions and altera¬

recognizing Kollsman Instrument's capabilities as a sup¬
plier for the age of space. NASA gave the subsidiary its

DrugApplicatidr^ jperid-

XAlthough competition may have some downward ef- :
fects on the prices of selected products, in all'likelihood ,

expected to amount to about $25.2 bil¬

for by

Aside

praducts. The past year

Admini^iatiqn.X' Somie of ;
triorii represent' potentially 'iriajori products/;
sizable *
portion' of these NeW -Drrig* Applications Should become,
effective during the. year, the industrj^'s showing could; ■
be improved substantially. -,
•'
-X
~

expenditures, both public

many

tions of

new

will 'be^^ slowed ^down^by'.'have three results:, in- i
creased drug development costs/fewer pfew/product, in¬
troductions
and ;stiffeiv competitions arriong * existing i

lion. Of this amount some $5.5 billion will be accounted

The Federal Government, through the National Aero¬
nautics and Space Administration, is in the position of

""that/of

about 109

are now

the. new

construction'
,

company

developmeniTrf>riow

New residential construction

/Over the longer teritf, however/-it is - likely that the

;

. -

irig before, the Food arid Drug

reach a record $83 billion.

picture this year will include:

...

:; ' ■-

a/marked slow-down in^^ the
new
product introductions ■—? the result of increased .
regulatory measures: and : concern/ about / drixg safety. *

industry in 1963 appears,

New; construction should account for

saw
%

repair markets is expected to offset any decline in starts.

after

*■

ceutical industry is

Johns-Manvlile Corporation '
.

substantial

question mark in the outlook for. the^phaiiria- 4

The big

President and Chief Executive Officer,

with

business, will face ' confiriuing problems o£;
Weaknesses in foreign currency/ particularly- |n South'

$76.3 million and $2.4 million, respectively, for the equiv-

income,

industry/«likev others

the

-■

America.

'/•v

George R. Cain

overseas

alent 1961 period.

net

tem-

slight dip in housing starts and
new
housing expenditures.
However, the 1 continued
strength and growth of the remodeling, maintenance and

and

will

domestically * arid
overseas by a numberqf companies.in tl\e industry./
'International volume also will increase moderately.

BURNETT

The trans¬

the highly complex field of aerospace supply,

advancements

these

to be sought both

■

ition

But

during 1962, probably will continue

products.

recording

data

possible/. Each technical - field

braced by the system has

rjia

naviga-

equipment and supporting electronics to permit geodetic

1963.

by the increased1 legislative:' /
regulatory pressures - imposed

« ■pered

substantially.;
In any case, the Company, through its various units' and
its planned "diversification and; research " and "developmentj is well on .the road to achieving- a' balance ^among

extremely

expected from the ethical pharrriaceutical/industry

during

•

accorded Standard Kollsman's technical competence and

both in operating results and
"products for treating arid preventing; disease can.

000,000.

important, it highlights

Ele-i

new

upon the industry during 1962 arid /
trie expanding military-aircraft Indusby the uncertainties that still exist/. "
about how these will be interpreted
tries in West Germany and other NATO' nations; Kpfls'
man Instrument Ltd., England, which serves air frame.
by the agencies; that must admin¬
ister them.
manufacturers and the aerospace industry in the British ,
Commonwealth, and Kollsman Ordnance Mfg. Corp.*
/ XWe anticipate a moderate. imj
formed in 1962 to seek new iriarkets for ptessure-sensi- • provement
in sales and earnings
which will,- be achieved primarily
tive instruments.
/
The; cpmpany ,is looking ahead to continued "progress • by more, efficient operations and
increased
emphasis
upon
major
in' all divisions. Standard'Kollsman "supplies Vital $y.s*:
terns arid instrumentation to military and ; commercial i
products. Mergers arid acquisitions, •• ,|
a' number
of which
were
effected
aircraft as well', as for missiles and space/, and it is ex-

tential of the program is estimated to be at least $50,More

'instruments for

development of-two prototype ;sys-,

jet aircraft.

Abbott Laboratories

Munich that makes

fahrt-Instrumente G.rio.buH., a. unit in

$3,364,493, and

was

the

advancements

Further

whi^ jp^duce^ |he J^sic; mate^^qf silicori and
for^ semiconductors ;,K^

segment

otherf

any.

Chairman of the Board and President,

synchros .as well as1 special-purpose

and

cpqtrol deyi?6^&°nstari Semiconductor

^ germanium ^crystals

close, Kollsman

motors

servo

advances

many

that

since

GEORGE R, CAIN

which, makes

KplXsmari Motor/Corpora^

these are. the

fo.r biplanes in 1928, and it has been

agriculture,

industry,

through drug 'and housewares Outlets, known as
the< "Toothbrusher."
'
' '
*
" .
"
Other autonomous divisions also showed gains. Among ;

ration, our principal subsidiary, pro-

bur largest in¬

economy.

should .addi to profits; this yiear. Casco
early hi 1963 /a cordlesslelefctric tooth¬

brush

Instrument Corpo¬

Kollsman

The

will be marketing

(

Total construction." will continue to be

of 1962 Casco introduced "a full
electric hair dryers,4 which have been

well, received and

dustry during 1963. At the present ra^e of expenditures,
we expect the construction industry to put more moneys
into circulation than national defense, the automotive

last quarter

of portable

line

as -

during 1963.

However,, contract awards indicate triat expenditures
this area will be slightly below 1962 levels.

the face.

the

improved

important place

construction is expected to continue strorig

leading manrifa^tuVer of heating 'pads,;' supplyiiig • 35 %
of the industry's volume under various brand names, also
has developed an application of the* heating pad to assist
in the relief of pain caused by sinus. This* is eailed'the
Sinusmask and it can provide moist or dry heat,' worn

supplying

arid

new

its

from

leader

reflects the continuing and growing
with expanding

area

need for additional facilities to keep pace

lighters and fire-ex~

The aerospace

this

increase in

Corporation subsidiary made gains'

adjustment for the industry. But to an

197

Volume

tomed
not

rapid

Number 6232

change,

such

The Commercial and Financial Chronicle

period is looked upon

Municipalities have found, for instance, that when
they put their refuse collectors in clean, neat work uni¬
forms complaints about the service
drop sharply.

withj foreboding but as a challenge. We will, I am

certainy/meet that challenge and continue to advance.

Companies dealing with the

COHEN

NATHANIEL

The

concept of renting

Rental

the right uniforms

and

portant economy for American management.

roundings and makes: for greater efficiency.,
The American housewife does

other

aid to

production and to safety.

It has been

The American housewife would be 2

mightily impressed if- she could
the

modern

factory

neat and clean,; arid

neatly dressed.
able

and

for some.industrial

see

today»VfIt is

tries,

have

' 2'

to keep

factory clean, and

way

■

to achieve this ob¬

jective is to equip the workers with
the proper work

clothing and to keep

dition.

renting work clothes

instead of owning a
come;

heed

of the

Cohen

„

own

volume

Cleanliness

was

and

$17,000,000

over

health

togther,

For

and

in addition

there's the morale factor in good appearance. It's hard
to put an exact dollar-and-c6nts value on these factors,

but without question

particle 1/25,000th of

> which
;

ari, employed who looks better feels

shirts,

coveralls

also

and,. shop * jackets

manufacture.

also

rent

such

•

"plus" factor in using the

••

proper

clothing

result

accidents.

rent is designed by

our

en¬

special equipment in

use

our

24 proc¬

soil caused by oil, grease

remove

chemicals.
;/

themselves

Workers

clean

are

and

,(2

' J,

-V

beginning to recognize the
proper

clothing.

work

New

collective bargaining contracts in many instances include
a

fringe benefit calling for provision of such apparel.''
Laws in many states on cleanliness in food and drug

have been made more stringent, and there is
additional volume for the work clothing rental industry:

plants

inch is

result.

The consequences is that among the customers of Na¬
tional

and

many

time

less

essing plants to

conventional use, our company supplies work

lose

arid -tears and we

clothing,

supply of fresh and. clean

Among other things, this results in clothing that fits
properly, an important safety feature. JWe repair rips

too big.

another

advantages

dust count in which

now

i'<0

set-up,

laundry; in St. Petersburg, Fla., in the heart of the South's
[ missile and space vehicle complex," for clean room cloth¬
ing. The laundered' garments it turns out must/pass -a

we are one

the cloth¬

gineering department on the basis of our own years of
experience and on the advice of our insurance -carrier;

National .Work-Clothes Rental recently set
up a special

•

case—is growing

any

company's volume, and

in recent years.

1962

•

JyL

The work

tion of engineers.

largest in the field, has gone up about $1,000,000

year;

our

have .more, than 50,699
customers in 29 states and the District of Columbia and
a

••

s'rf

though

even

cause

blothing is always available, designed for the: jdb.
"--Jl:•.' 222:-'v • Z 2:222/

10-story-

probe.

space
~

out

portant component of productivity, Properly clad work¬

see

the temperature of the wash water, the type of
detergent and die method of drying all must, conform to
exacting specifications. These details require the atten¬

outmoded for the tasks to be done—and would
Our

<.-2

will continue

company
worn

clothing which has helped to build the workclothes industry-s voltuhe/ ' This factor is' safety,- an im¬
ers

work

quantity/of clothing that might be¬

cleaning and maintenance in

vigorously.
•

Nathaniel

2:22'

The idea

•<

ever

appliance

such

until it is

hand. 2 *" 'H-:-22'2

There

rooms,

the clothing clean and in good con.

V« 2#

To the housewife the water needs merely to be hot,
and she might prefer one detergent to another, and her
drying method might .vary from, the open air to a .ma¬
chine dryer,/. But for work clothes for industrial clean

most

*,'

work

and electronics indus¬

cleaning

that

are

clothing

Under the rental

housewife could

household

any

high missile, or of

re¬

that it is safer and costs less

important

with

-iv.

;> J

• <

enough to upset'the delicate instruments of

observations

Repeated

>'<.

/ •

the

ing to become outmoded.

stand¬

required

aerospace

speck of "dust that:

pick

pleasant atmosphere.
vealed

apron—chosen from

operations.

instance, irf the

For

;

-1'2 -22 • 2"

its workers ares

their work

housedress

They .look comfort¬

they do

Chances

use

changing working conditions and needs

point of appearance as welbas economy. Even the: most
meticulous housewife would be amazed, however, at the
cleanliness and the: super-clean work clothes,

~4'

•

diversion for any company not in the industrial laundry

ing her home clean, and she, too, wears work clothing—
such

specific job, and they must be exactly

field.

first-rate job of keep¬

•

Having to buy, wash and maintain work garments is
a

sur¬

.'v,

selected for

are

right.

public have found that

putting workers in. clean uniforms enhances their

■

clothing has turned out to be more than an im¬

work

2 :2

Work-Clothes

National

President,

(327)

Work-Clothes

truck

Rental

companies,

airlines, railroads, bus

are

service

stations,

utilities,

pitals and various

agencies of the Federal, State
local governments. We expect the list to grow.

ira-

portant items Us machine-wiping towels, Tags and mops

hos¬
and

for

better and works better.

The

222: '->2.2^
Americans undoubtedly

approve

of life insurance—six out of seven

But when it

type
to

classifying their insurance along
v

lines,

familiar' with

with

they

some

one

types

knew that this

This

All

garages.

is so

surance is

these

Continued

page

policies than

others, judging by

con¬

...

ary

•2
2

Group life insuranc^ is appar.
ently more familiar, the survey
indicates. Sixty-brie ;Percent <rf

policy accumulates.-

because endowment.in.

Hhose.uufestfened Identified it .as a
basically-a savings plan-t
of insurance whcre the em.

protected by life insurance. Pre-,
puums are
the

,tr.naS
«ceive $1,000.

payable over-a

insurance

ceases

ys part Q{ ihe cost

specif. the Jest

fied number of years, after which
are

2°, f2

toe largest cash and loan values.,

r.technical
•

one

comes

that

is endowment insurance-

families have policies, of

indicates

best-understood

ttan half of those questioned

.•

and

••

survey

the

"policy

Life Policies

another.

stores

the Institute

factories,

.Nature of

;

sumer

Some Confuse

use

and the

check.

P.0!"

lions of .workers

pay_

mil-

far

WIth

the!

deducted from

(Actually,

•a

concerned,

are

•

icyholder_ receives, the face value, ^Employer.pays the entlrecost,of the
policy. Thus the

owner

alttough

the

exact-

number

•

life

Group

?:§!

employees involved has not been
tabulated.)

5::i

insurance

by and large provides temporary

protection,; that

What is

worker

have

ends

when

the

changes jobs; but he does

the

privilege

converting

permanent insurance without
medical'examination.

The Market

Coast*to-Coast

•

Outlook: for

Wheh' if

196375

who

one

that

ance

for

covers

in three

•

questioned

were

able to identify

were

Insur¬

term

than

those-

comes

little

ance,

lim¬

example
builds

';'//

"'2 "2 .S

■-"l2\:■ 2:/;' -2 2

Out

"•.5; 2-v

contains^^

quently

discussion of

stocks with

returns

currently ranging

up to

(calculated

•>.1 22/

22 •'

for

FC1.

and

•.

counted
in

funds

L /'Vv2- 'V

v.: 2

people could

whose

upon

not

premiums

2"-2.

2*'

are

;

identification

Trading Teletype: 212 571-1740

is also known

"weekly

(or monthly) premium" insurance,

:v;'v :':222'*:

YORK

STOCK

Offices Coast to Coast

EXCHANGE

22"2'"

CHASE MANHATTAN PLAZA, NEW YORK 5-DI 4-6600

400 MADISON
320

PARK

639

THIRD

AVENUE, (47th), NEW YORK 17-PL 1-1900

AVENUE,

(50th),

NEW

YORK

22-PL 2-4200

AVENUE, (41st), NEW YORK 17-OX 7-4600

names.

surance

less
1

"family

other

now

are

$1,000.
World

life

in¬

typically for

Reflecting

prosperity

following
owners

and

Industrial

policies

than

general

insurance"

War

the

policies.

•

Dallas

Indianapolis

Houston

Nashville

Minneapolis

Rapid

II,

many,

St.

Salt

Louis
Ana

City,

Lake

Santa

S. Dak.

City

Washington

Des

Kansas City

Pittsburgh

Redlands, Cal.

Westwood

Detroit

Grand
Los

Oklahoma City

New Orleans

Toronto

Boston

Cleveland

Moines

Fullerton

Joplin

San Antonio

Seattle

Eismarck

.Clearwater

Denver

Pikesville, Md.

Phoenix

Philadelphia

Baltimore

Cincinnati

Fayetteville, Ark.

Farmington, N. M.

Harrisburg

Santa

Chicago

Corpus Christ!

Paso

Malone

Asheville

Anaheim

Charlottesville

Turlington

Potsdam

buying larger life insurance

W* Have direct soiree to Correspondents An the following <eitiest

Albuquerque

years

are

_-1

the

of industrial insurance

Municipal Teletype: 212 571-1741

•

Cable Address: GREGSONS

This

perhaps

Reno

San Diego
Tulsa

TJtica

Rapids
Angeles

Oxnard

Portland, Ore.
Rome, N. Y.
San

Francisco

Victoria, Tex.

Whittier
4

Telephone. WHitehall 3-7600

collected by
person.

■

American Stock Exchange

\A'et«Wcr£s,\A-.2/.

the type

Columbus
NEW

♦

Midwest Stock Exchange

surprising since industrial in¬

surance

as
MEMBERS

Members

identify "in¬

agent who calls in

lack

Prtnntry

emer-

"?f-

•

dustrial" life insurance

Researcii

Unlisted Securities

conse¬

HORNBLOWER & WEEKS

300

over

The survey showed that not too

1962 dividends). If you would

like a free copy, just write or call

Comprehensive

New York Stock Exchange

many
or more

cannot

source

Bonds

Term insurance

values

cash

gency.

business prospects and a list of more than 100 common

loan.

and

2/2222222i■: /'r:2&2;

type of policy is designed to pro¬
ject a risk of limited duration, for,

Over 100 Selected Stocks

Stocks

Markets

ited term, such as five years. This

•§

Complete Brokerage Service

Municipal and Revenue Bonds

insur¬

only

Correspondent Nelivork

'VUatlerwrhew -of Corporate Securities ** Untlerwriters *of State,

•hv:^

The Commercial and Financial Chronicle

(328)

Continued from page 39 *

ventional

MARVIN CHANDLER

(

tar

tunate in having a
in

mercial

and

com¬

activity and residential

struction.

Between

population

W'->/y7?X'

rapid growth rate

industrial

terms

has been for¬

and

1950

1960,

increased

area

our

con¬

almost 72%.

This growth rate, which

represents

composite of people and

tion

businesses initially moving to north¬

Illinois

ern

expected

transfers

and

continue.

highly diversified in
providing

Industry

stability

greater

from

economy

to construct

year

decision

gas

that

Spent'

The

year.

tric

Marvin Chandler

and cooling purposes

industry groups in
We

expect

service
out

34,000

some

1963, almost identical to the* 1962 total. ; Space heating

The

customers will increase

seems

by 45,000 to 50,000.

At the end

1963, we will still be providing gas for heating di¬

rectly to less than 75% of
Total

our

Northern

revenues

customers.
Illinois Gas

1963

to the

Company/

1962, in which latter period unusually cold weather in

the year

available, sub¬
construction utilizes this

panies, such

between

questions

■

;

distribution

the

corners

creasing

resulted in

underground

storage

9.5%.

Proved

concerned

of. natural gas in the

reserves

increase steadily
trillion

proved
A

cubic

recent

publication

the

Similar

alone

reserves

amount

Canada

ing

sources

newly

years,

Geological

month
We

Survey

follows://;;//?'. /
revenues of $300,-

of ^$42,200,000

—

„

variously; esti¬

mated at 300 to 500 trillion cubic feet.

furnished

are

the

1963

companies

approach
of new

and

servicer

mortgage in¬

1961, according to the MBA,

was

strides

servic¬

of the nation's total mortgage

still

comes

loans

our

industry's business (approxi¬

from FHA
trend

activity is developing.
remain

and .VA

toward, more

the backbone of

insured

FHAs and VAs, however,
our

business.

We in The Colwell Company are privileged in serving
the Mortgage Markets in the West and California in

12-

particular. This dynamic

area

has consistently run above

economic

stabi-

activity, and other
criteria, and, most important, has maintained

attractive

Detroit

mortgage yields for investors.

//>;

billion

dollars"

•

and Nevada are bullish

look in their

areas

State, and; in Arizona
the mortgage financing put-

this year.

Named Director
UNDERWRITERS

DISTRIBUTORS

•

• -

DEALERS

Henry, T.. Bodman, President, pf.
ta

'National Bank of Detroit, has

elected

Corporate and Municipal Securities

a •

director

been}
Wyandotte!

SPECIALISTS

Chemicals Corporation.
A

member

the

Executive

Committee of the National Bank
Active Markets

in Local

Division, American Bankers As-;
rsociatibn," Mr. - Bodman also serves?;

Securities

the boards of-directors pf

INSURANCE

Cun-/

ningham Drug Stores, Inc., Michi¬
gan Bell

Telephone Company and

National

Mead, Miller
—

New

York Stock Exchange

Members

Co|

—

American Stock Exchange

New York—WHitehali 3-4000

System Teletype 301-955-0154

New York

Carl M. Loeb, Rhoades

Correspondent
Co,

Corporation,

was

educational

organizations.

elected;: President

National Bank of Detroit in

1958,

having served the institution -since
its

John C. Legg

founding in 1933, with leaves

of absence for

.r'v.- ■

years

military and Gov-

BALTIMORE / PIKESVILLE / NEW YORK

ernment
i.- '

Direct Private Wire

(Associate)

Stock Exchange

CHARLES & CHASE STREETS, BALTIMORE
1, MD.

Bell

Steel

many' civic,

and charitable

Vr-v

Philadelphia-Baltimore-Washington

Telephones! Baltimore—LExingion 9-0210

well

service,
«•"

•

including

three

'■

•

member of the

IHHHHH

MEMBERS:

of Directors of the Reconstruction
-

New York Stock

Board
and other

Finance Corporation.

and

conventional

Our management throughout the

-quarter- of

will

the national average in construction

significant in their function

than

75%)

guaranteed

single, typical 12-month period,-,the company

circulates

year

As mortgage markets expand, the
mortgage banking industry..,will, I',m
:sure, continue its key .role as origi-

Although the bulk of

mately

lizers of otir area's economy:
,

debt.

investor-owned

most

this

estimated for T962,

ing approximately. 20%

...

of revenues for

?/"

the postwar era our industry has, made rapid

and at year end

loan

the balance

period,,

vestments for institutional investors.
In

in¬

financial institutions

starts

nator

Bundy Colwell-

avail¬

:;reccrd:levels».-,y/..
*

$2J74.

billion kilowatt-hours—

ample

mortgage

family formations ^expected will rio
doubt push
neyvf housing demandto

up^

for the period weire $81,600,000-^

revenues

believe

Edison

natural gas reserves
been

with $10,600,000 retained for

and the

the mid-60s the acceleration

9.7%, while commercial revenues rose 5.9% to reach
$80,700,000., Municipal, lighting, steam, sales and other

1,842 trillion cubic feet.

have

con¬

slightly exceed the 1.4 million starts
-

U. S. continue to

During the past five

Industrial

have exceeded total production by 50%.

estimated that remaining ultimate
in

supplies.

gas

Consensus of opinion is that hous¬

eco¬

area.

our

markets,

-and? investors? v

/Of Detroit Edison's-, total revenues, domestic sale^ ac¬
counted for $115,500,000—3.1% higher than; for the/cor¬

and at the end of 1961 stood at 267.7

feet.

reserves

future

construction

vestments

responding period of 1960-61.

with

freedom

banking industry

ability 'of funds, for

plant investment hearing the $1^4 billion mark

It should be remembered that ■* —$1,221,000,000.

represents on the average
the total cost of providing service.
not

industrial

Total

distribution utility
only between 30 and 40% of

there

seeking

The basis for my optimism is the

are as;

income

Total energy output: 17

the cost of gas itself for a natural gas

are

healthy

generally

investment in the business.

position of natural gas.

in 1963 is good.

operational records

Earnings per share: $2.93 as compared to

leveling off of field prices. This has per¬
mitted retention of the current favorable competitive

N,et

Dividends* of $31,600,000

have

people

tinued growth of the new housing and commercial and

com¬

country now reached; and steadily in--

development

the

Total- utility

Walker L. Cisler

quate gas supplies; reduced pipeline expansion with all

for

We believe

demonstration

Regional Governor and Member of Executive

400,000—or 5.6% more than those of
the same period of 1960-61.

and the pipe-line companies; ade¬

as ours,

practical

promise

in its history.

^/^v^Gi/i962,

While wellhead prices rose steadily for many years,
recently improved regulatory procedures*, voluntary set¬
rate

and

throughout the world.

Our. operational figures/ summar-.
ized for the 12 months that ended

plication.

kind

industry had

nomic climate of

in nearly all other

clean, reliable, and easily'controlled fuel. Gas prices are:
attractive and fully competitive for virtually every ap¬

tlements

guidance

Michigan

automobile

the

reflect

sections of the U. S. where natural gas is
new

this

President, The Colwell Company

of the best years

1962,

Detroit Edison's

stantially all heating in

economic, social and other freedoms.

Committee of Mortgage Bankers Association of America

We were happy to be able to make
$1,000,000 rate reduction on Dec. 1, 1962, the first
general change in our rates since 1954.
as

our

that

The general outlook for the mortgage

well

business

Detroit,

unexpectedly high.

our government for subsidization.
convincing evidence that our traditional

BUNDY COLWELL

Southeastern

one

/ In northern Illinois,

depending" upon:

This is to

conditions have been up
moderately favorable level maintained nationally
throughout ? the year.
In some re¬
spects they have bettered the nation¬
wide level.
For example,
during
in

caused our revenues to

is tre¬

economy.

thkt' this kind pf enterprise

and
be accomplished: here in our country -with¬

can

CISLER

and

electrical

American economic system is the best possible safeguard

be fully price competitive in the

outlook

business

»■

generally good.

Here

assuming normal weather, may be up about 3% from
the beginning

$250,000,000 into the

President, The Detroit Edison Company

customers

new

heat recovery for heating

WALKER L.

service territory.

our

add

than

supply of this major energy potential, not only for hew
construction but for existing installations as well. '? :

ing and fabricating industry; which is one of the largest

expanding

Edison

Detroit

mendously important

to maximize total system efficiency.

Natural gas promises to

completely new integrated steel mill in
the Chicago area, although not of direct benefit to us, is
further evidence of the prosperity of the metal process¬
a

$13,000,000)

wages

These systems will consist of natural gas
turbines or reciprocating engines for on-site elec¬
generation with

...

System,
which serves more than half the people of Michigan. I
In figures like these we see how a people-owned taxpaying business, financed by investors, in one year put

will be made in our efforts to develop natural

power

bonds and

{ '
(including construction? em¬

$36,000,000

some

ployees'

total energy systems for industrial and commercial

fired

our

strengthening:, the

additiorlaP

substantial

1963

in interest

$16,000,000

Bought almost $52,000,000 worth of coal.

•

{

application.

Bethlehem Steel

;|33j000,000, for; some 9,600 employees;

....

recent

,/ Paid local, state and Federal taxes of about $58,000,000.
./ provided jobs, payroll and retirement provisions, of

hopeful

are

progress

thus

area,

our

equipment.

from

suburban areas, is

Chicago into the

during

construction

for

to.

other borrowings,

the five-year
1963-67 period. The $195 million figure includes about
$131 million to connect new customers and to provide
for: additional space heating business--gas mains and
general gas distribution system improvements and re¬
placements; $41 million for underground gas storage
facilities; $6 million for supply mains to deliver the gas
to the local system; and $17 million for general plantland, buildings, office equipment, tools and transporta¬
million

$195

erally, expects 1963 to be a better year than prosperous
area

Paid

estimates it will spend

Northern Illinois Gas Company

outlying areas in the northern third of the state gen¬
Our service

{Paid out more than $31,000,000 in dividends to sharer
owners, most of whom live in Michigan.

and coal at prices which will then be com-

sands,

during the

customers

November, Detroit Edison:

producing natural gas from vast deposits of oil shale,

serving gas to more than three-quarters
million customers in the Chicago suburban and

1962.

supplying electricity to; serve, 1,299,12 months that ended With

000

hence, current research programs will develop methods

President, Northern Illinois Gas Company

state and national economic system.

For; example, in
*

Our company,
of

become

sources

Thursday, January 24, 1963

through the local,

of natural gas from con¬
imminent,' many decades

shortages

before

Long

Leading Exchanges

Exchange

(329)
The

Number 6232

197

Volume

HAROLD W.

Commercial and Financial

President, The Borden Company
*

The year

1962 was a good year

for business

generally;

industry particularly. The Borden Co.,
Owing to increased diversification during the year,
favorably reflected the high degree of activity at both
levels.
Its chemical operations re■'

and for the food

■

sponded nicely to increased indusand its food operations,

triaT output,"

side^ benefited
disposable incomes and - Br
continued consumer
acceptance of
new convenience products.
BBHI
ri While the company's final results " HQWyfl
for 1962 will" not be available5 until " I
•late next - February, • all indications
I
at this time point to another record
year for - Borden's.- Earnings ; should
.setSa new high for the rseventh c
-'straight year. Sales will exceed $1 r BBBrafclBBBI
billion for the second year in a.row,
Harold w. Comfort
going perhaps 4 to 5% above that
level. The rate of profit on sales, reflecting the com¬
notably the specialty
from higher

pany's
foods

pricing competition, Such a

' for

Association

The

the

re-elected as its
President, Ned W. Bandler, Jr.,
corporate development manager of
Brothers Company ^ at the

and

sixth annual meeting, held recently

man

Lever

to be adopting a

in New York

tion,
150

City;

Looking

development

Peter Hilton,

marketing

;

firms,

President, John Phillips of Amer¬ Company.

Other of¬ Warren

Products.

ican: Home

ficers elected included Dr.' Charles

Roberts

and A. A.

Talmage, Electric Bond &

Vice-

re-elected as

also

houses,

W. R. Grace & Company;

financial

and

O, Ben Hander,

Inc.;

Inc.;.

Ponds,

trustees

Other

Goldman, Sachs; & Company,

pany;

Organized

1957

formal discussion group

Can

in¬

low. At the same time, the

of income for food, a new

variety and convenience of the
greater than at any time

foods offered her will be

in the past.

Pacific Coast Stock Exchange

■

of the Board of Governors

man

Distributors

Underwriters and

of Irving
Lundborg & Co., became Chair¬
George J. Otto, partner

Coveney,

Corporate and Municipal

for

an¬

was'

Securities

fol-.

nounced

lowing annual
of

meetings

the two Divi¬

the

sions

Exchange,

Auchincloss, Parker &

Edward

Members New

Yor\ Stock

Jones & Tem-

pleton,

George J. Otto

and

Montclair

New Canaan

Bethlehem

Wilkes-Barre
Newark
Clifton

Baltimore: ,V

Philadelphia

was
Vice-

elected

Redpath

Exchange
New York

Washington

Mitchum,

Falls Church.

Pottstown

Goodrich Com¬ Chairman of
Board
of
Joseph Fredette, American the

for diver¬ Schollmeyeri Shulton, Inc.

■

1963,

year

President of

Richard

Company;

It is estimated
one-fifth

housewife will spend less than

as ward Coale, B. F.

Treasurer.

that in 1963 the

Calin,: Vice-

Neil Kirkpatrick, William E. Hill & Company; Ed¬

and

beneficiary hgain will be the consumer.

Elects Otto

are

of FMC Corporation, as Arthur ,D. Little, Inc.; John May,

Secretary,

time, there are

this

Coast S. E.

Chesebrough-

D u b i n,

indicators

the

Association's nine- the

comprising executives from Kastor Hilton, Chesley Clifford &

leading U. S| manufacturers, Atherton,

American business ap¬
"line of sight" approach in its

supported, upward trend.

of new products,

were

portant operating economies as

grounds for the belief that the economy will reach a
new high level for; 1963 as a whole, as the result of a
slight upward movement during the first half and a
pace on a line with 1962's for the third quarter. Should
Congress move quickly on more than token tax relief,
the effect could be felt before present stimulants run
out. In this event, the economy might well get a lift
after mid-year that would set off a new, and healthily

board of trustees for terms

The Associa¬ three years

opportunities for im¬
well. As to prospects in the food field generally, the outlook
at this time appears to he one of abundant supplies and
stable prices. Food manufacturers, I believe, will be
made more aware of an unusual situation brought about
by their increasing diversification; namely, a lessening
of competition for an entire product line, but sharply
intensified competition among individual products. The

company's chemical business, but

plans for 1963.

acquisitions and mergers,

Named to the

operations totally integrated for the first time. The new
facilities will not only provide for expansion of the

uncertain political climate,

pears

situa¬

and marketing

Monochem, Inc., a joint
Bprden's and United States Rubber Co. These

plants will furnish Borden's with all its requirements of
chemical raw materials and make its chemical

tightening of foreign economic blocs, signs of a slight
segments of the domestic economy, and

the

planning, the

ment

Inc.

Growth,

.venture of

softness in some

cerned with long range manage¬

Corporate

will adjacent acetylene and vinyl

•basic

the Associa¬
Growth has
become a national organization
with
membership restricted to
business executives primarily con¬

Assoc. Elects

be fully operative, as

during

Business, wisely, does not try to provide for
the unpredictable, but it is finding that the unpredict¬
able is occurring more frequently. Consequently, it is
making fewer commitments, and for shorter periods.
In view of the current state of international relations,

for 'Corporate

tion

During 1963; also, Borden's methanol and vinyl ace¬
monomer chemical facilities at Geismar, La., will

tate

mid year.

sification executives,

Corporate Growth

1963.

appearance

chloride monomer facilities of

think it is belief

business's hope—I do not

their

ended. While several key indicators are
being interpreted as signs of a leveling off during 1963,
the momentum should carry the economy upward into

favorable
showing during 1962 was not due to any let up in the
usual business pressures. These can be summed up in
one phrase: the. rising cost of doing business. This prob¬
lem, of coursej is not unique; however, as a food com¬
pany, and primarily a dairy company, Borden's is more
sensitive than non-food firms to any squeezing of
margins. Higher costs—without compensating increases
in productivity or, lacking this, more realistic pricing—
appear to underlie the current weaknesses that I have
observed in the businesses in which Borden's has an
interest. There is a tendency to overproduction which
tion reflects

time—should make
These new products will
further shift the weight of Borden's food line toward
specialties, a line which has already been strengthened
by more than 200 such items in the past five years. Any
rise in disposable income, and particularly in discre¬
tionary income, should both widen and deepen the
market for convenience and specialty foods. And any
income released from taxation would likely have a de¬
cidedly favorable effect on that market.
items—in development for some

new

the year just

companies, however, Borden's

.results in destructive

has nevertheless shown good progress

economy

of the economy in the new year

the strengths

business

problems weighing it down, the

With all the

As with most

without

even

business is not competent to assess.

greater emphasis on higher-margin specialty
and chemicals, promises to be the highest in a

dozen years.;

it should benefit from
while re¬
acting mildly to any weaknesses. The company's greatly
expanded research and development program is pro¬
viding it with an accelerated flow of promising products,
the great majority of them specialty foods, and several
As for the Borden Company,,

immediate markets to
absorb it, can offset rising unit costs of production.
Another current weakness of business, for which it is
not responsible, is its uncertainty in coping With the
actions, and inaction, of the Federal government. The
7% tax credit on investments, and the accelerated write¬
offs on some types of equipment are, I feel, welcomed
by most businessmen—provided they are forerunners of
change, and not the sum of it; As a businessman, I share
the view of many that what is urgently needed at this
time—not only by business but by the country—is tax
relief for individuals and corporations, rather than tax
reform. Reform, as the term is used, would mean pri¬
marily a shift in the burden of taxation, and hot an
easing of it. Obviously, any change must be subject to
the requirements of national security, and these factors
volume,

—that

COMFORT

Chronicle

Governors and.
Edward Chairman of the Los Angeles
Division Management Committee.
i

Other Governors

elected for two-

terms were M. J. Duncan of
Calvin E. Duncan & Co., Howard

year

of Sutro & Co., George

J. Greene

Stock

Members New York

rOTOAM^&sGO

Lester, Ryons &

•>

TEL 525-1421

FARMINGTON AVE.

NEW BRITAIN

MIDDLETOWN '

WATERBURY

NEW LONDON

AT&T

and

Management

and

Corporate and Municipal Securities

Vice-President,

r <.

MEMBERS

Gerald F. Brush,
Brush, Slocumb &
Harker, Harker &

Stevens

Co.;

neth

Merrill

Smith

inquiries,

CORPORATION

of the Board of

Manning,

Rearwin,

Lynch, Pierce, Fenner

Incorporated,

Phelan, Exchange

New York Stock

and Thomas

President. ;

Exchange

Midwest Stock Exchange
v

American Stock Exchange
Chicago Board of Trade

Commodity Exchange, Inc.

f WILMINGTON 99,

Paine,

Curtis; Ken¬
Vice-President,

Webber, Jackson &
•

Chester Jones, Mgr.

Commit¬

Co.; Robert A.

y;Kyr, We invite your

Municipal Bond Dept.—O.

Laird & Company

Other members

CONNECTICUT STOCKS & BONDS

STOCKS

Syndicate Dept.—Duncan Miller, Mgr.
Trading Dept.—Harold A. Clouser, Mgr.

Management

tee..

PRIMARY MARKETS IN

DELAWARE BANK

members of the San

.Governors are:

Underwriters and Distributors

CHRISTIANA SECURITIES

Wright

Mr.

SECURITIES

Securities including

members of the Los

Mr. Greene as

Francisco

York, call CAnal 6-1255
Teletype 203-278-0770 i

From New.

Active Markets in all Local

Wright of

Committee and Mr. Duncan

WILLIMANTIC

MANCHESTER

TORRINGTON

MERIDEN

236-5671

•

Co.

Division

Angeles

WEST HARTFQRD

•

Weedon

Mr.

also serve as

HARTFORD
1000

William L.

and

Co.,

6 CENTRAL ROW

Crowell, Weedon &

W. Weedon of

Exchange

LISTED and UNLISTED

Nemours Bldg.

DELAWARE
Delaware Trust

Bldg.

Telephone OLympia 6-7741
Bell

Teletype

Telephone to New York
7-4733
Broadway—Telephone BO 9-4900

302 762-3631—Private

Direct

Wire

Philadelphia—SAratoga

New York Office 61

Office

for

excellent

its

1963

the

for

growth in Europe will permit some reduction in shortinterest rates abroad and some further monetary

term

stimulus in this country. Since incomes
and

will remain high
spending will show only moderate rise, the flow of
saving should continue heavy and, in the absence of a

of the

economy

strong overall

COOK

RANSOM M.

though it will continue to fall short

potential in the absence of some presently
For the American Electric Power;

full

finished

began with great ex¬

System itself, as good as 1962 was, I

feel confident that 1963 will be even;

pectations as to our economic performance and ended in
mbdest satisfaction;with* our gains..Buoyed up by strong

significantly out- r
performing the general economy. : v;
It was gratifying to those of us in
the dynamic electric utility. industry:
to have bad the results for the in^
better, with AEP

operations

dustry's

the

those

than

economy

i Say

v
•

Donald C. Cook

m::

can

never

;

technology;

and

look

tax reduction comes promptly.
With Gross National Product at its all-time peak, with

this

new

Investment

for these

unless

year,

the automobile

rise.

industry having

Home

come

1963

GNP

billion, compared with an indicated $554 billion
for 1962. I feel that the GNP will remain relatively at
its current level for the first two quarters and

if it is " substantial

and

enough to

European

move

stimulate

lost

ress

regard, I feel that

tax cut such

and to the entire electric

has been

utility industry. First, it would

additional funds with \yhich to advance our con¬
tinuing expansion program. Second, it would increase
the sale of electric power to our industrial and com¬
mercial customers who, like us, would be encouraged to
an

accelerated rate and therefore would be in

the market for

product. And third, increased
sales would make possible further advances in
more

our

and

activity

slows

and

reducing

our

Underwriters and Distributors of

will

overall payments deficit

company's

PITTSBURGH,

relations

plans.

Pa.-^Charles 5g. ^

formed

Pont

products

continued in 1962 when

have

also

benefited

from

Peebr

formerly a partner in
Arthurs; Lestfahge & Co.
{

The

general level

of the

seems

to.

of business, while

that

1963

pffers

jj'ji

left unsolved

1962,

and in

Parker-Hayes Co.

Obligations of,
Municipalities I

'V*-'..-.'

;

■

)■'-

* —~

40 Water

& Co. has

been formed with of¬

fices at 2711 Custer Avenue to

•'

;

\'■'

•*;

<■'.

INDUSTRIAL
NATIONAL BANK OF

gage in a securities business; Ofr
fleers

are

Charles E.

Hayes, presi-;
•

RHODE ISLAND
Main Office, Providence

•

Second Oldett Bank in America

Parker; secretary }

and treasurer. Mr.

Parker
H.

were ♦

Tegtmeyer

The National'

formerly with-Wm.'
t

„

;

Shawmut Bank

Hayes and Mr.

Co.

Area Code 617

TWX 617 451-3701

;

dent; E. R. Hayes, vice-president;
and Charles W.<

Street, Boston 6, Mass.

Telephone LAfayette 3-6800

en¬

re¬

resources.

spirit of mutual good

★

BILLINGS,: Mont—Parker-Hayes;

our average

economic growth.

■■

declined

will and cooperation, seek constructive ways to expand

States and
j*.

has

opportunity to our
citizens and their government to appraise the problems
an

*
★

these

better than in

country's human and physical

in General

•%'*''V"-.

indus¬

JL961,:4s still not accelerating fast, enough .'to make; full

-Underwriters & Dealers I

was

sharply

economies

operating

Charles -G.

Despite

/.♦v.;,

Grant Building to act as special-!
ists in tax-exempt securities. Mr.<
■

★

has

Peelor & Co. with offiees in the

progress

em¬

ipated in these gains.
/

outlay

- -

our

broader markets. Our stockholders likewise have partic¬

baby boom, should outpace new job opportunity so
that, in the absence of a larger tax cut than we think
probable, unemployment rates will edge upward in
1963. It may be hoped that the- slowing of economic

ers

war

Forms Own-Co.

years,

excess

sulting from improved technology and development of

The growth of the labor force, fed now by the post-

12% in the 10-year period. The trend

Copel&nd

use

sales price was 1.3% lower than in 1961, so that custom¬

use

Peelor
•

for
L. du Pont

While

higher costs, the average sales price

made in international coopera¬

of .excessive,; government

make

bring

higher wages and improved

excess

prevent unsettling flows Of funds about the
improvement in 1963 in our payments balance
require great firmness and resolution in treating

BONDS

Municipal Bond Defmrtment

the

Ythe% basic «problem
abtoadl

sales

ployees have shared the benefits of

;

re¬

profits since they

During the last 10

conse-

Charles G. Peelor

STATE AND MUNICIPAL

enable^

Capacity.

world.'

to this company—

jprjovide

expand at

plateau

increased

faster rise in

even

relation to in¬

earnings

lines,

our

gold in 1962 than 1961, some small prog¬

history

11% increase in the phys¬
volume of sales. In many of

ical

depressed

ahead in step with our growth in output.

was made in

tion
In this

reached

and marked progress was

■

indicated would be of great benefit

energy

will

outstanding

business

COPELAND

Our improvement in
flected

capacity-abroad Increases,- our commercial exports will'
have more difficulty expanding, but our' imports appear

■

then pick

increased capital expenditures.

have

■

In sales and earnings, 1962 was the best year in
for the Du Pont Company/ While forecasts are

trial

tion's proposed tax cut is promptly carried out by the

»:•

small

show -some

be expected to continue to advance.

during the second half, especially if the Administra-

Congress

DU PONT

buying. Nondurable consumer goods and services may

aggregate between $570

and $575

President, E. I. du Pont de Nemours & Company

quently affords little independent stimulus to big-ticket

million Americans are still without jobs.
the

appears

;*»

Ave

appliances

Consumer credit

mixed,
anticipate; that; 1963 over-all' should: be at least as
{•good '{as 1962}

them may

r£W<3

sion in .service-employment.

purchases of autos may be expected to

fU4?iiishing^

grow.

continuing growth .in population, and a* further expan¬

fUrthe^'ln5; 1963 but'the^feplacem^h^rm£tfkef Should

:Mse

before, there are still some soft spots: steel is
operating at only a portion of its capacity, coal con¬
tinues to have its own private depression, and over 4

for

in northern California in: particular;* ;

"expected from the record fourth quarter rate ofrl962:

great year in 1962 and

ever

look

continue at high levels, although no increase should be

dustry producing and selling more electric power-than

whole,

people to give them %

young

should result from increased defense and space" outlays,
:

great year inn prospect, and with our own in¬ % somewhat by the failure of residential construction to

another

Consumer

our

activity to move ahead somewhat
Vigorously than in the country as a whole. This

ready availability of product are not conducive to stock¬

paradoxes in the 1962 economic statistics
paradoxes to remain throughout

.; There were

resi¬

past year by the rapid rise in

challenge.

this

expect business

piling.

meeting

encourage

In California; and

dential construction, which has been so
this

which

the tools they will need to be employable in tomorrow's

high level, although it would be surprising if

tive and investment in

opinion, snap the country out of this stagnation.

of concern. It is not enough to

and

new year might most Appropriately, in
be called the Year of Investment in the future:
investment in new plant and facilities to'keep competi-?

strongly affected
apartments,::shows
any further advance. New plant and equipment spend¬
ing by business can at best be expected to-show a small
rise as' it is stimulated by "the need for cost :s&ving{and/
depressed by widespread excess capacity. Inventories
may show some small rise over the year as a whole as
sales move' Upwards, but absence of price pressures and

in general,

economy

economic activity.

enterprise

fact,

I expect a modest
When measured against
such factors as our rising population, the level of . un- ;
employment, the nation's international obligations,, the
need to provide new employment opportunities, and the
need to improve the standard of living for millions in
our depressed areas, such increased' economic
activity
as now foreseen might even; in a sense, be interpreted ;
to represent a measure of economic stagnation. An early
and substantial tax reduction, however, would, in my
the

for

increase in

contraction,

education. The

Construction outlays should continue

those

Such conditions include reduced tax rates and increased

Cook

against

a matter

for

^conditions

Ransom M.

slight outweighing of the forces

expansion

initiative in developing new
Iproducts and markets and in readying for the inten¬
sified competition produced by a markedly changing
f technolbgy and the new Europe; \ve also have to produce

rise
;f siibstanttaily in l963;; The federal
; goyefnment, will- further enlarge its
space ;and
defense .programs and
state and {local governments must
provide for a continuing increase in
:
population requiring services,, and
especially the provision of education.

and

to protect itself from its rigors and, through effort
ingenuity,' to rise above its norm.' ■ «
v

modest

accelerating Is

;;; than had been, anticipated.
Government > spending wili

there is much it can and does do

only

one

our business growth is slowing at
ai growth iii the potential labor force is

•call

in- ;

the same time

unemployment significantly
and our balance of payments posif tioh shows much less "improvement

the

for

up.

outlook

cantly. The fact that

the

■

•

because of

it will be

us,

policy changes may be:able.to tilt the balance signifi¬

nioving for-

economy has' been kept

move

advance

high

construction: activity,

before

business

the

making

ward; but we have not reduced the
rate

sulate itself from the effects of

state of the economy,

;;

this because, while the elec-

utility industry

trie

industry's {performance-;

entire

1963 also. '
=

j. /

t..

that

will outrun the general economy
;

;

year which

sales, expanding; government spending, and

auto

as>*

whole. And I hope and expect
our

have

better

1962

When

despite the federal
difficult for,

for funds,

demand
looms

long-term rates to

Francisco, Calif.

President, Wells Fargo Bank, San

which

deficit

unforeseen stimulus.

•

Thursday, January 24, 1963

the technology of electric power generation and trans¬
mission. This would lead to greater economy and effi¬

President, American Electric Power Co.
look

ciency in operation and in turn to reduced rates and,

DONALD C. COOK

United States even

finally, still greater usage.

Continued from page

Chronicle

The Commercial*and Financial

(330)

of Boston

;

'.I,M - i v

Volume

197

Number 6232

;

The Commercial and Financial Chronicle

(331)
1

•

the Pearl River from

|||Fi HUGH COUGHLIN

business

President, Central Louisiana Electric Company; Inc.

ticularly

with

true

economy

system

the leather, This is par¬
respect to utilities, especially the

electric and gas utilities.
and gas

other states, the

many

depends largely

area

■warin summers

ing^ sales

cooling

for

tioning). The

(air

1962

year

able for utility

sales in this

that it

provided

become

season

was

Cleco

The

also

favorable

Power

crops.

many

experienced

attributable: to
the
favorable weather. It will be a year
hard to duplicate.
increased

17.3%

Electric revenues

the

record high of

Hugh Coughlin

$19,000,000. Kilowatt-hour output
crossed the one billion mark for the first

time

company's historyr Gas sales' increased 10.5 % to

Growth in the utility business depends

Light

the year

ended Nov. 30, 1962,

year-

domestic

many

fac¬

gas" homes, as well

and

location of ■ the

Aeronautics and

Saturn

the

."
year,

increase

expected to

greater emphasis

even

only

the lntro-

previously; expected 'and then a'VbsUmptiOri
at'

rates

vof

slightly lower than those ex¬

Westinghouse, sales billed in 1962
3%

1961

over

are

expected

and to about

equal sales of
i960, the second highest sales year.

Westinghouse forecasts
•

expected to exceed

are

the

•

Connecticut

an¬

•

between

the

cost

market

overseas

will

con¬

central generating stations located near coal
mines, and the upsurge of,interest in construction of
large atomic power plants 'give 'added strength to the

demand for the

conventional and atomic fuels for

electric power generation/.

the

larger

companies' ^foresighted |ric#

tions ■dfgriiat^jcailYSP^t)igij,t) tke;^^fapid -qlosing^^ of»the-gap

across

that

are

very

lines into ever-expanding grids, the trend to
extra-high-voltage transmission of electric power from

ster provided the designs.

construction

power

Westinghouse -and Stotner and WebMark w. Cresap, jr.

conditioning and

nation's electric, utilities plan expansion of
plant and
distribution facilities. The tying together of the utilities'

•

■

air

domestic markets for these goods will
develop at a more
satisfactory rate than any time in recent years as the

proposal for which

plant in

larger expenditures

active; for heavy capital goods produced
by the electrical manufacturing industry
throughout
1963. There are encouraging signs that
negotiations iii

watt

electronics,

Indications

million kilo¬

one

the

tinue to be

York had filed an application for a
a

by anticipated

industries.

plans,

permit to build

supported

activity in
expenditures for
defense and space. Product development and hew products arid services shodld improve
volume, particularly

year-end,. Southern Cali-

'their

are

and investment tax credits, a
quickening of
the electric utility market and
greater

•

Gof and

sales

of improved new orders and

by business for capital equipment to achieve the effi¬
ciency demanded by continued pressure on prices, a
position encouraged by the new depreciation regulations

generating stations "using
Westinghouse reactors and totaling
895,000
kilowatts
capacity.
Arid
Consolidated Edison Co. of New
.'

(NASAX in the

Mississippi

$1,955,731,000 in
Westinghouse sales billed inl963

electric

Proj ect of the. National

New Orleans area, with the test site in

can

and

new

to increase

subject
to
Atomic
Energy
Commission
ap¬
proval, for construction of atomic

Space Administration

that they

engineering

products and services and more efficient manufacturing techniques.
In general, the economic outlook for 1963
indicates a
hesitation in the early months
rather than the slight

For

CRESAP, JR.

nounced

heaters, clothes dryers, etc.

The

previous record sales of $2,009,044,000 in" 1957. A
corresponding increase is looked for in new orders.

-Yankee Atomic Power Co. had

"all

large consuming appliances

the

fornia' Edison

exceeded

homes

of $25 billion this

are

perienced in 1962."

successful

promotion,; having

decline

1963, with added impetus provided by the coming-ofatomic power.

age of commercial

increase of 65% during
a

research,

1961,

over

modest growth

continuing * high ■ level- of • business activity is in
prospect for the U. S. electrical manufacturing industry

3,457 Kwh for

was

quotas in gold and bronze medallion
water

the

pretty well defined.

Cleco has completed-

sales

duction

Louisiana

for

increase

.industry must place

high

Cleco,

President, Westinghouse Electric Corporation

One tangible result of such effort is the

past five years.

and

arrangements

the

speed

increase in the average annual electric sales per resi¬

the

extra

.•

Therefore, the utility must look for its growth within
its own area and the exploitation of the potential re¬
sources through aggressive promotional
effort in all

dential customer, which for Cleco

whe.n

completed,

are

completed

MARK W.

per capita Income; No longer
growth be attained through acquisition of adjaceht

departments.

1967,

States: Utilities Co.

Co.,

trinitiesVneyv industries and

areas are now

in the

properties as service

and

facilities

slightly in 1963. Therefore, to improve profitability, the

proposed electric transmission grid of the investor

recofd

the growth of the economy - of
the service area. This includes greater than
average
population growth and increase in employment opporcan

1966

and

Estimated industry sales

owned utilities in the area. •; :

high of $6,000,000. The per share earnings averaged $1.47
compared with $1.29 for 1961.

tors,^^ hut primarily

;

America world leadership in it.

projects will be beneficial in rein¬
forcing, the company's production facilities. -The EIJV
facilities to be constructed - incident to
trie: Idiyersity
power interchange will constitute an important '
part of.

good

very

1967. Both of these

largely

year

;

agreement with

manufacturers, the 1963 economic

development of advanced manufacturing methods which
gave birth to the atomic power business and has brought

purchase ;of the entire: electric output!.
(9^,000, ^w) Pf
the Toledo' Bend hydro-electric
plant to be constructed
on the' Sabine River and
scheduled for completion in

summer

for

transmission;

together with Gulf

record cold winter

summer.

effective

voltage

during the early months followed by
warm

support

accessible

very

lj%

electrical

challenge will be to improve earnings

federal highway

new

Slidell

For the

north

Tennessee^ Valley Authority 'for- an
exchange of
1,500,000 Kw of diversity power,, which arrangement Will

favor¬
area

makes

area

the

condi^

was

the

Southwest Power Pool consummated

;

area

During 1962, Clecp and eleven electric utilities in the

result in correspond¬

Louisiana

service

NASA's Michoud plant, at New-Orleans.

Cold winters result in electric

sales for house heating and

record

Slidell, has resulted in increased

Cleco's

shore of Lake Pontchartrain. The

In Louisiana,

the

activity in

;

■

industry's products.

V-

Continued

page 44

George Kneass
Joins Bank
V

THOMAS 8c COMPANY

-C iY\

•

The Inter-American Development
Bank has announced that

PORTER

BUILDING

PITTSBURGH

CORPORATE SECURITIES

George

Bryan Kneass has joined the bank

MUNICIPAL and AUTHORITY BONDS

ilnjan^iaia^vtebrL/ previously,

vaSja

Id, PA.

Mr.

Kneass

was

Senior

-■!

Vice-P resi¬
dent

Municipal and Corporate

•

IffRAMBO,

tion aL

Mr.

the

i Bank.

has

■

•

pkJK''

\-h]'')'

•■Philadelphia

Securities

.■■■

.■

CLOSE & f KERNERjff
Incorporated.

.<•

■

Kneass

had

lSi8 Locust

Street

Philadelphia 2,

Pa.

than 40 years'
of

experience

in the field of

investm ents.
He

began

his

the

career

ceor*.B.Knea.,

Securities Der

J. W. SPARKS K CO.
'V'-•' *

'■

■■■■

delphia

office

Company
'' 'v•"...

partfhent' of Drexef arid

Co.

Dealers and Brakets in

; < :<

-1919.: In 1927 he j oinedthe Phila¬

ESTABLISHED 1900
i-4." \

the

Guaranty

of New York

Public

Sales

Utility

BROKERS IN

Railroad

Manager.

Industrial

Securities

He became

Manager of the In-

LISTED AND UNLISTED SECURITIES

vestment Advisory Department .of

*■

the

DEALERS

and

MEMBERS
NEW YORK STOCK EXCHANGE

•

appointed

charge

Bank and Insurance Stocks

invest¬
^

left

the

AMERICAN

Assistant

the

PHILA..BALT..WASH. STOCK EXCHANSEi

Klngsley 6-4040

came

STOCK EXCHANGE

120 BROADWAY

DIRECT WIRES TO NEW YORK

his

•

-i

•>%"«

-V

private

Secre¬

Charles A. Taggart & Co., Inc.
Member

tary of the Treasury.
sition

Mutual Funds Skates
«•,.

1956,

/-^;CaV

banking field temporarily and be¬
.

PHILADELPHIA I PA.

NEW YORK 5, N Y

Vice-

ments in 1942.
In

WESTERN SAVINGS FUND BLDG.

was

President

STATE, MUNICIPAL AND REVENUE BONDS

New Jer<6y and General Market Municipal Bonds

Philadelphia Natiorial Bank in

1935

In this

duties : involved

po¬

PkiladdphtoBaltimoreJPashington Stock Exchange

Boston, Pittsburgh, and Montreal Stock Exchanges (Associate)

debt

management.

He returned to the

Philadelphia

National

Investment Securities

WOrth 4 0220

M0RRISTOWN, N.J

A. T. & T. TELETYPE 215-569-9702

'1957

Bank

Vice-President and

in
was

1516
"

IJPPFR DARBY, PA.

promoted

the

post

Vice-President in 1960s

of
-

Senior
:^ I

-r

215-KI 6-0900

Locust Street,
•

•

Philadelphia 2, Pa.
.

Teletype 215-569-9734

•

H-u \,i~

'• V:*

New York Phone 212-WO 4-7333

The Commercial and Financial Chronicle

(332)

Continued from page

JOHN

probably

CURLEY

President, Eastern Stainless Steel Corporation

CROSBY

EVERETT

Service, Inc.

always better to look forward than to look back¬

Chairman of the Board, General Spray

ward and

naturally we

all looking forward to '63 and

are

Service, the industry that suffers most from

what might follow it.

mation. Science is moving ahead so rapidly few

'63, I might mention that our activity in '62 has been
very good; but profits, like every¬

high labor
costs, is the industry that will benefit most from auto¬
its effect on

estimate

fantastic

The

fastest

this

growing

investors'

thing

part

else,

there

seems

going

our

jBW

service these days.

for

their

requirements

extract the last drop of
is very

Peo-

heartening

blood.

are

there be industries to

ing that
routine
■

you're

get

alike

man

faced with the

are

I have

would
*

Even the farmer has

equipped, properly trained service or¬
ganizations to help solve their labor problems. Farm
workers are disappearing from farms in large numbers,
and

the

remaining; farms

equipment and
Because of
we

call

this, farmers

contract

equipment

larger, requiring
experienced personnel..

farmers.

work

and

are

These

operators

basis

contract

turning for help to what

are

for

farm millions of acres of land.

country. Unfortunately^

have

and, if it does, I am sure it will
to all. A large and important industry,
business, has been subjected to a lot of
point where some people feel it is

harassment.

many

farmers, who consequently don't have to own their own
equipment. Some contract farming organizations actually

if the steel manufacturers, as a group, were

the steel

I think

standing

great deal of the trouble is due to misunder*
in my opinion, the steel industry is tre¬
the general economy of the

mendously interested

General Spray

Service is planning to step

its

pro¬

the home owners, industry, the farmer
and the government. In fact, it is finding an important
demand
States

for

and

service

abroad,

Canada.

Farmers

less capital for equipment

well

abroad,

who

have

duction

underdeveloped

go to

step up food pro¬
countries. By
financing

equipment sold to contract service organizations,
dollars
than

now move

just one,

President, American

hard

good year; With

become

"boom"

ican

serviced by each piece of equipment

families,

have
and

plans to open an assembly plant soon in South America.
Service equipment manufactured includes
spray equip¬
and

gardens,

industrial and

the

bor¬

highway

should

parallel

set

that

It is

industry should

toward

trend

within

credit.

Some

previously

1963.

there has been

years

cation

sumer

the

earnings for

recent

manufacturing units of General Spray Service at
Stratford, Ont., Canada, will

L. M. Curtiss

the

broad

renamed America
Automation, Inc., in line with
company's policy of concentrating on automation
equipment for service industries.

the

as our

true

was

five

even

years

These

goods.

the

con¬

factoring

Others which had specialized in the sales finance

area.

factors

contribute to

confident and

are

purchases
the

are,

automobiles,
generally

showing
services,
be

can

con¬

amount of business which

of credit extended

amount

during 1962 did not

and in relation to

records,

any

the

ample
for

resources

purchases
to

level

to back up an increased

and

borrowings

disposable

during

income,

rates

These

two

1962.

had

Again,

repayment

plus

factors,

dis¬

of credit

use

already existing credit obligations do not
burdensome.

consumers

seem

high level of

confidence

on the part of
the consumers, could make
not only a good year for the finance industry but

"boom"
It

ercise

year.
a

year.

;

obvious that

noneconomic factor could

one

pronounced effect

industry.

there

foreign affairs,

some

should

another

is possible that

ex¬

the economy and on the

major
will

1963

additional push to be considered even a good

Recently

international crisis seamed to

produce

real "pause" in national economic growth. Consumers

and

business

alike

adopted

1963
to

strong

give little evidence of having
such

overcome

see"£ attitude

"wait and

during the crisis. Indications for

"pause" if it should

One factor which could have

occur.

pronounced effect

economy

sufficient strength

.on

the finance business, as well as on the economy, would
be an effective reduction in Federal income taxes at

both the corporate and personal level. It is our feeling
that this reduction would have to be more than a token

temporary reduction before it would have
the

major effect

persuaded that such a reduction is necessary and that

insurance, and
own, have entered

and commercial finance fields have entered the

lending business and the credit

than

field

lending field have entered the

the commercial finance and
areas.

com¬

companies which had

specialized

few, such

most

diverifi-

fields of sales finance,

Minneapolis, Minn., and

posable income seemed to indicate that

the

increased volume of business

higher

substantial savings in material and labor.

soon

pronounced

maintenance and agriculture. It also includes
firefighting
and will soon extend into the electronic and other fields
with patented equipment that offers service customers

The

services

finance

of the general economy.

estimated

activities

field.

rowing needs of millions of Amer¬

General Spray Service manufactures patented service
equipment in both the United States and Canada, and

lawns

consumer

which

industry,

AID

The

year.

trend

for

unfavor¬

able pressures on the economy* it is possible that 1963
could

our economy

one.

diversified finance company can expect.
The

need

Year-end strengths in the economy gave many indica¬
a

diversified

consumers

and

sidered

crisis

Investment, (Jq^ipany of Illinois

financed with AID money.

ment

be.

CURTISS

tions that 1963 should be

wholesome

confidence

finance

further because many farmers, rather

are

may

are

Government, too, finds an advantage in this
approach, because so many of its AID (Agency for Inter¬
dollars

regardless of what the outcome

L. M.

prime vprospects for* contrast service organizations.'

national Development)

helpful; and I think all that is needed is an op¬

even

con¬

employment and in personal incomes. There is ample

The U. S.

finance

this

portunity for them to express their opinions in the pres¬

in the United

than American farmers,

permanent factor in

indicators

evidence that

to be

of each other

Preliminary estimates indicate
housing starts may level out in 1963,
but offsetting this are optimistic estimates of increases

1963

ence

the

the rate

serve

the

country; they will extend themselves without question
grams to

feel that this trend

community and

Consequently, such factors

relation

has become

that its advent is

that

investigation to

farm

own

John M. Curley

And in my opin-

philosophy that the economy of the country
benefit substantially (and so would the steel

beneficial

business

industries, rates of income and employment In
as well as personal incomes—all have
important bearings on the performance of companies

that this might come;
be

the

industries,

not been allowed to do this but I think there is a feeling

the

means

We believe that the "department store"- finance

signs and they do

for the benefit of the

all

allowed to sit down and talk about what might be done

who need well

service

you

business)

joined the swelling ranks of those

lessen

housing Starts, auto
sales, appliance sales, indicators of performance in the

is possible.

problems.

>•

the

Generally speaking,

beneficial

ago.

ion, business will be good for the coming year especially
if we don't have a steel strike in June which, of course,

Everett Crosby

same

problems—higher and higher labor
costs accompanied by a lack of available labor. It is
natural that they should turn to service organizations
to solve their

will

only of survival but of maximizing profits on in¬

Of economic

1963

that

except

tell you something.

The housewife and the business¬

about

talking

guessing,

look

can

jobs done for them.

course

not

Because

conspicuous.

very

demand¬

that

panies. In-the finance > field it < is necessary to look at
a broad range of economic
indicators, a broader range

This

they must make for equipment and

the

of credit, remains intensive,

areas

indication

see

vestment.

pie are out to save the big outlays

personnel

companies

immediate future. Diversification then becomes

and

acter in business and these new signs

experienced

company

it builds char¬

specialized

can

big rushy than looking to

highly

fewer

rapidly in all

grown
and

sumers.

ob¬

that

sources

Thursday, January 24, 1963

broad field .of business and consumed credit than in any
other period in our history. Competition, which has

steadier "and

are

interested in

care

there is

from»4he home-owner
manufacturing industries, is in the

But

lot of stabilizing

mE very one,

market

to be

are

hurt.

been

taining satisfactory
take

have

Things

on.

buyers

revolutionize
to service in-

approach

dustries.

simple industries like

in labor in

savings

going

economy

bother

Before going into the business of

consumer

Today there

are

will

economy.

Federal
be

are

accompanied

expenditures.

than

which would
In

in
any

comparable

can

reductions

judgment, would
tax gesture and could be the stimulus
our

produce vigorous economic growth.

summary,

dustry

This,

would

growth in volume and
suffer

hopeful that Congress

better than

expect
earnings

normal

in the finance

in¬

assuming that the economy does not
major setbacks because of international

1963,

developments.

;

Jones Named V.-P.

Butler,Wick & Company
(Established 1926)

FT.

WORTH,

Texas—RobertC.

J ones has returned

Texas, to

assume

Vice-President
director

MEMBERS

new

and

post of

area

Financial

Best route to

to Fort Wbrth,

the

distribution

sales

Programs,

in Ohio

Inc.

New York Stock

American Stock

Exchange
Exchange (Associate)

Midwest Stock

From

Exchange

Fort Worth

headquarters

Through the facilities of

American Cement

Atlantic Business Forms
Automatic Sprinkler

The Ohio Company

administer the organization's sales

Ohio Water Service

Albee Homes

Winthrop, Mr. Jones will

Ohio Leather

Ajax Magnethermic

activities throughout Texas,; North

'•J Personal contact by our experienced
salesmen, in eighteen offices

at 3327

Sawhill Tubular Products

Carolina and Puerto Rico;

(

He will

supervise the operations

C. F. M. Co.

Valley Mould & Iron

Commercial Shearing & Stamping
Dollar Savings & Trust Co.

Youngstown Fdry. & Machine

Youngstown Research
Development

regional managers

Mahoning National Bank

6th Floor Union National Bank

Bldg.,

Financial

Programs' three

Up'v staff,at'our central *

in Texas

—

A.
a

Paso, Frank H.

TELEPHONE

wide range

can

Wicks in

Lubbock—as

Charlotte, N. C. and Dis¬

trict Manager
Jr.

well

San

George A. Stuckert,

Juan, Puerto Rico."

for

of listed and ovet^-

the-counter securities. Our

Stasey in San Angelo, Harold A.
Close

RI 4-4351

stimulate

re-

experience

help you make and maintain

those of Regional Manager Ronald

Alliance, Salem, Warren, Ohio; Franklin, Sharon, Pa.

"back'

•office in Columbus,

Youngstown 1, Ohio
BRANCH OFFICES:

interest and build acceptance
Glenn Miller in El

throughout the state, plus a large

Union National Bank

active

markets for security
51 N.

THE

OHIO

COMPANY

Member of the Midwest

Stock Exchange

High St.

investments
Columbus 15, Ohio

Volume 197

Number 6232

JOHN

The Commercial and Financial Chronicle

...

chemical

H. DANIELS

This

growth

the

moderate

rate

but

boom.

of the

prospect for the agricultural and chemical
in 1963 on the basis of present

processing industries
economic

from

the

duced

1962

adequate

processing
these

have been pro¬

and

supply

merchandising

good outlook for this

crop

A reduction

business

that have been taking place in gov¬
ernment during the past two years.;

tains

farm: legislation ' that

the

elements

production of soybeans.

also

expect growth

created

the

tax

lbng

reflected

oils

demand

for

the

protein

nutritional

ADM's

tion

business

improvement

now

for

expected

1962,

over

show

which

was

Last

expansion including construction of

;

the

Early Date
Sacuritias

Japan wilt

Co.

haad

Co.,

1963
iybJ

Tanan
Japan

that
tnat

depth

drums
arums

Ltd.,

investment
investment

and
and

his outlook for

the

will
will

reach
reacn

dol-

economic

during Januarv and March
aunng January ana iviarcn,

"In the

first

half

April-September period,
fiscal

1963,"

"it will be ushered into
course

with

said,

recovery

improvement

inventory investments."
^.4

and

dress

will generally
described

asas

The

after

upward

4u.

this

in
-

„

Fall

„

full-

Washington's population and

cen¬

metropolitan complexes

the

region is the Boeing Company,

better year

and aerospace

the

leaders

in 1963,

;

j' i J

are

that Boeing will

but perhaps slightly

30, 1962, Boeing reported

backlog of

than $1.5 billion.

which have beset the forest products and fisheries in-

our

Continued

I}-

below

military and

Better than average gains in manufacturing and agri¬
culture will be offset in part by the economic problems

expansion mood, further
of

good year

commercial sales

industry is

leader in the aircraft

industry. Indications

On Sept.

one

and

One of the major contributors to the economy of this

it appears

1962.

Seattle

Tacoma.

the western half of the state,

encompasses

tering in

have

private

ac¬

gen¬

been

that

economic

erally

contrac-

has

rapidly grow¬

our

page

Japanese

in 1963:

(2) Normalization of the capital
market.

Mcdonald &

(3) Induction of capital bearing
low interests.
".

CORPORATION AND

m a

New

its headquarters in

a 1 n s

MUNICIPAL

York

Midwest

mnation, Britain s projected entry
addition
to
over
110
mto the European Economic Com- ,ioky° in addition to over 11U
munitv and the implementation of branches in Japan, Honolulu and
mumty ana xne implementation ot New York Citv Tadashi Ishida is
wholesale tariff cuts on a global iNew Y°rk Ully>
V ■ ft

Stock
Stock

SECURITIES

MEMBERS

Ltd

Nomura securities Co. Ltd.

ments position, West Europe's cost
Britain's nroiected entrv

UNDERWRITERS AND

(4) Re-examination of the present industrial order and enter-

Pattern- They include, Mr. Segawa prise behaviors.
said> the
S;,J3ala!JCe 0f, pay~
The Nomura Securities

;

Exchange
Exchange

American

Stock

Exchange

(Associate)

UNION COMMERCE BUILDING

general manager of the New York

branch;

of $200 million," Mr. Segawa said
in his analysis of the outlook for
Japan's foreign trade.
<

necessary

T„.

Teletype 216-574-9420 & 9421

A11

Telephone MAin

1-6400

W ltll A. U Aliyil
AKRON
,

A11TT^

ASHTABULA

BOWLING

GREEN

CANTON

CINCINNATI

FORTLAND, Maine Kendall F.
Hatch is now associated with A. C.

COLUMBUS

LIMA

DAYTON

ELYRIA

MANSFIELD

FINDLAY

SPRINGFIELD

GRANVILLE

TOLEDO

HAMILTON

YOUNGSTOWN

Allyn & Co., 415 Congress Street,

Mr. Segawa

CLEVELAND 14, OHIO

"Japan's exports during the year
estimated at about $5,200
million with a favorable balance

are

business trend will

set in the wake of resumed equip-

the 10

(1) Promotion of investments in
public undertakings,

scale*

the close of fiscal 1962.

boards,

study the market potentials of

Much

great carry-over

volume

1962.

»e saw Mat one cannot tail to

brokerage firm,
the

!ake "ote °lthe va"T problems
besetting
the
world s
business

leading
leading

said
said

business

Securities

mur a

Janan's
japans

the

half out-

among

tivity is located in the Puget Sound region which

Segawa 'StrbngthOnin^ r of ;' the

Mr.

year-

Minoru Segawa, President of The

were

ing region.

economy.

predicts

complete

presently contemplated and

architectural

tion

September of this year.

reach

recovery by

here to

R. C. Daly

new

na¬

million fair goers and many of them were businessmen

again in

"plateau-like" pattern during the
....

Nomura

can

awards

million and

of-state visitors

of the

many

even

economy

stated,

More than

Ralph M. Davis

solidifying the position of construc¬

global economy, the Nomura
what

records'estab¬

It can be expected,
however, that the economic impetus

eco¬

amount

appears

official
sume

the

tional average.

greatly helped by Federal, State and
Municipal
expenditures.
It
no w

added.

To Resume Rise

match

running well ahead of the

were

volume of business

than

The

recession

that 1963 will be

and

investments,

lished in 1962, when many businesses

effect in the years ahead,
particularly in the tourist industry.

1963, and from the

work

con¬

versatile

ment

Japan's Economy
At

the rise. The construc¬

year's

into

sion, new products and two years of plant improvements
and

expected

economic

nificant

ing business have

good

normal

segments of the economy will find it
hard'

last year was ahead of 1961, and the
construction awards are also betteri

flours,

specialty foods

activity
following the impact of last year's

that the general

appears

industry has not felt

for the chemical industry. Market expan¬

year

There

other industries have; the executed

supplements.

chemical

siderable
average

concentrates

due principally to an

return

C. DALY

of the United States is

in the

wheat

1962

goods that would be

nomy

reports it

dehydrated alfalfa and soybean and

greater

growth rate slightly below that of

President, George A. Fuller Company

products, oils for margarine, salad and cooking

and

cut.

all

linseed meal businesses. A steadily rising population will
be

Washington in particular will experience

income tax

employment.

consumer

From

feed industry to be reflected in a higher level of oper¬

durum

Light Company

created by the Fair will have a sig¬

expect to continue expanding our grain

ations for ADM's

raise

and

forsee for soy products and increased farm

The State of

con¬

merchandising business, both domestic and foreign, in
1963. Soybean processing will increase with the growing
market

general

mand for industrial and

plan to return to free markets.

range
we

individual and corporate

non-surplus

producing support prices and

experience

of the past 10
in the Pacific Northwest, I believe1 that 1963 should
year of average growth for the region.

plenty of idle plant capacity to meet the increased de¬

At ADM

sincerely hope that Congress will

develop
John H. Daniels

high rate, ADM antic¬

very

economic

fh't^s,' 'if Vdtect**by Cohgtess 'iri" 1963V Would stimulate

major shifts in agricultural policies

years
a

the

upon

successful Seattle World's Fair. Most

year.

longer view, 'however,; we
seriously concerned about the'

are

Based

industry, to which ADM supplies
resins and oils for paints, materials for
wallboard, soy
flour for plywood glues.

agricultural commodities have

Taking

industries the company serves.

the construction

for

the

DAVIS

President, Puget Sound Power

ipates improved sales of resins for finishes, resins and
plasticizers fo? : plastics and foundry products for cast¬
ings. Predictions are for another record or near-record

grains and oilseeds

crop

RALPH M.

With automobile sales at

indicators.
Food and feed

processing

center at Peoria, Illinois, place
advantageous position to take advantage of
the anticipated increase in business activity in
many

ADM in

President, Archer Daniels Midland Company
Continued

(333)

listed four

for

the

measures

recovery

He was formerly with
Hayden,
and stone & Co., and H. C. Wainwright
& Co.

Form American

SECURITY

DEALERS

Corporation Shares
LONG

SPECIALIZED—PROMPT

formed

\89<7°

CLEARINGS:
We clear for dealers in

New York ^j Pittshargh
V Cleveland - Toledo

' Chicago

Cincinnati

California and West Coast

BEACH, Calif.—American

Corporation
with

offices

has
at

been

3540 At¬

lantic Avenue to engage in a se¬

curities business. Officers

are

John

Campbell,

'iV.

Bchofield, vice president; Jack
Belcher, treasurer and Robert
Devitt, secretary.

H.
M.

president;

Edward

Underwriters and Dealers in

Municipal and Corporate Securities

Address Loans and Securities De¬
THE

BANK

FOR

AIL

THE

PEOPLE

partment^ Teletype :|2i6 574-9254
Bank Wire: NCLV.

Central Calif. Sees.

%V,

■».,

i 'ft-7

One Terminal Tower

vestment business from offices at
830

Van
Glen

Ness

Ernest
and

Avenue.

Cleveland 13, Ohio

PRospect 1-4500

Officers

' i'Vi' ^ 1V-

,'•

tC.*

216 574-9773
'7

f-Y

Wohlford, president;

Marsh,

vice-president:

M. J. Morgan, secretary

treasurer.

<J»

FRESNO, Calif—Central Calif or-

are

AssetsOver$1,500,000,000

'
1

nia Securities is conducting an in¬

OHIO^ LARGEST BANK

All

were

formerly

and
as¬

sociated with California Investors.

MEMBER

MIDWEST

STOCK

EXCHANGE

The Commercial and Financial Chronicle

Thursday, January 24, 1963

national needs—jobs to end chronic unemploy¬
tax revenues adequate for :'government needs,

great
ment,
:

and is lost at

duction, particularly if accompanied by some cut-back

together.

ment and business must work

■months,

commercial
year

banking include the following: (1) For the
whole, further gains will be shown in most
broad measures of production, dis¬
tribution, and income, although the

mayj he higher

the .: past. six
For the three-month period ended Aug, 31,-1962,

than calculated
way. to

■no

by many in the industry, There has been

competitive situation;

I share of common stock outstanding. Sales for the period
I totaled $231 million, a record quarter,^

ployment

ee^en^ should /become Jess

goes oh for seyeraf reasons. First, labor
ip foreign countries; while ^ lower than those in
:■ United
States, ; are increasihg'. Then "too, as more

the

terminals

President, Ideal Cement Company

ducers

spite of a more unsettled situation

industry than we have seen in many years, we

•

1959 when 335 million bar¬
were
consumed, and if 1963

year was

rels

set

to our expectations it will

nationwide

over-production
Productive

there

industry.

the

;

capacity at the year's end

rels^

industry operated at 75% of

nearly

•

ca-

price

pressure

ly felt.
*

•:

and * the

However, formal action is
Decisions when they come will

identity.

Because

dustry

nature

permitted

ease,

the

con¬

balance of in¬

our

will

year,

add

may

tend to produce

size

the

that

the

commercial

firming of busi¬

some

1963,

anticipate

long-standing uptrends in

little

change

spending for soft

consumer

iti government spending.

goods and services and

the

In the
In the

capacity and thin profit margins, however,

growth in business' expenditures for plant and equip¬
ment is

likely to slow down, despite last year*s liberalidepreciation - allowances and the tax credit
applying to such outlays.
Moreover, additions to busi¬

-zation

ness

The volume of.

may

inventories

year,

good one and we-be¬
lieve the intelligence in
management in the industry will
ultimately bring the price structure back to a profitable

show little if any rise in 1963, particularly since

expected to

are

be smaller

than

last

spending for hard goods

consumer

plane.

standard commodity, well informed

maintain

;A tax cut, if and when forth-

financed, including

face "of excess

think the cement in¬

relative

the long pull will be

policy

likely

In assessing the prospects for the major sectors of

of its .basic

over

The Federal Re¬

(4)
is

conditions and interest rates.

economy

aggregate producers, but at Ideal we believe our
industry—the .cement industry—can and should maintain
own

banks, and
ness

Some of the most"
important are the ready-*
mixed concrete industry, the concrete products industries

•

deficit

/Recent price developments have" again shown that it'
is impossible for one company to undersell the market
for more than a fleeting instant—perhaps for only one
job. Cement being

coming during the

ac-

Probably chart the future course for many companies
which at present may be holding plans in abeyance.

its
Cris Dobbins

rate.

tinued deficit in

plants.

time off.

cut.

extent

ternational payments; <5 )

and the

exists ' in
resulting
has made itself keen¬

areas

some

wor¬

Over-production
all

products

probably

fast

some

unemployment

the

System

credit

the

The

leading cement producers that have
plants, ready-mixed concrete

increase

not

force, with

expected to pursue expan¬
policies,
involving
large

tax

customers.

pacity.

a number of

vertical. continue.

serve

Obviously the cement. industry - must! work with its

something over 440 million bar¬
Thus, for the year nationwide,

; was
the

basis

Investigating acquisitions

quired other cement
concrete

all-time record.

new

Federal Trade Commission is

by
•

comes

and

less
em¬

deficit financing even in the absence
,

Frank R. Denton

both horizontal

sionary

water terminals and redistribution to customers.

The industry's best

above 1961.

fore

pro- ;

meet

Mergers

substantially

(3> The Administration - may there¬

vantage of lower costs in using ships and barges to an
increasing extent to move cement from mills to deep

barrels, which is somewhat less than
5%

builjfc at coastal locations, American

•

foreign competition at deep water points
where it originates. Also, U. S.
producers are taking ad-

in the cement
look for
shipments, to increase about 3% in 1963 over 1962. The
apparent use in the year just closed was 332 million
In

are

can

(2) The level of

will

labor

sening

rates
'

the

threat as time

Ia
CRIS DOBBINS

will

than in 1962.

■

Importation of foreign

increases

this extra cost because of the. keen
•
v -y-":' '
'
v4

recover

Co.,

course of 1963, the major foreseeable devel¬
that will influence the prevailing climate for

opments

of individual plants.' The" expense of
constructing
terminals' and the -cost of their operation

over

Trust

Pittsburgh, Pennsylvania

During the

'area

reported net income of $23.8 millions or 82 cents a

■we

•

DENTON? % i

Chairman, Mellon National Bank

Perhaps' the outstanding current development in the
industry is the increase in distribution terminals by
•nearly ev&ry corhpahy/ This tends to broaden the; market

;

|P| FRANK
Vice

because others have to meet the price

once

;

government's non-defense spending, could do
much to put vigor back into our economic growth rate.
This type of planning is something on which govern¬
the

%Dow'$ business Jias ^been good*

(335)

.to sell at all.

struggle with the Soviet bloc. A well-planned tax re¬

k in

Chronicle

/buyers will not pay more for onfe brand than another.
Any advantage gained by cutting a price is momentary

strength the West must have in the

the economic

and

The Commercial and Financial

Number 6232

197

Volume

Continued

page

Federal. Reserve

Currency Swaps
COMPLETE

Over $1 Billion

central bauks

Mrv?r«:

C03.

FACILITIES-

new v^k st0M nsn«s

Specialize

Currency switch with eleven foreign

INVESTMENT
NVESTMENT!

Arrangements

bolster the

dollar

designed

are

against tamporary

wide variety of unlisted
'

and

issues

-ffx

■[

always interested in

are
v"»l,

.P '"• / •'

A- *

purchasing blocks for

•

.Yorjc .aimounped on Jan. 17 that a
reciprocal currency swap arrange¬

■

a
i

The Federal Reserve Bank of New

Wisconsin!

making close and sizeable position

"markets in

to-

pressures.

throughout

$1^50,008,^

totals

now

V.V-^

our own

-1"

retail

distribution.

ment "has been concluded with the
Bank

of Sweden, on a standby
basisj in the amount of $50 million

;%( abqu]|;:259.^

Teletype: 414-273-4333.
East

Mason

Le!ephtneS:nDft0,.
Milwaukee: BRoadway

Street
/

Milwaukee 2k.Wisconsin

6-8040

Chicago: STate2-0933

MEMBERS: NEW YORK STOCK EXCHANGE• OTHER

Federar Reserve alsd.

The

SCHERCK, RICHTER COMPANY

announced that the existing stand¬

™GRfMn

...

; nor).

PRINCIPAL EXCHANGES

MEMBER MIDWEST STOCK EXCHANGE

by. swa|) arrangement with .the.
Gernian' Federal Bank has been

ST. LOUIS 2, MO.

320 N. FOURTH ST.

increased from $50 million to $150.

/million r|frbni ^^b^^2(^
j iDeutscfce marks 'to about '600, mll^

lion4marks)\ ^

\•

iv.;; «•''

The

Federal

Reserve

has

now

Reciprocal currency swap arrange¬

M UN I C I P
i

1,1

1 '$?

ments, totaling $1,050,000,000, with

AL S
5

,' "*v

'v>H

fV $

'' $ jr'r f-

the following

—

Kansas

New Mexico

—

Oklahoma

—-

One of our most

Texas

(In Millions of Dollars)

'and1 Other Midwestern States

;",v

f;■

Austrian; National Bank

$50

National, Bfink of Belgium-—
Bank of Canada

CORPORATES

;

"a/

I '., '.4\;,v'it*-

250

jBank of France -'

MERCANTILE

150"

Netherlands Bank—-

Member F. D. 1. C.

Bank of Sweden—

/ EISEN / WAECKERLE /

ADAMS
Member

PURCELL,

Midwest

Stock

Inc.

Swiss

BALTIMORE AVE.,

Telephone BAltimore

1-4090

Bell

National

Exchange

'"/

THUST: I

8th and LOCUST

100

New York

such

all

OOWIPA?

100

Bank-i

Bank for Internal Settlements
In

1012

i:g:

PARKER

v'-t(

MUNICIPAL BONDS

AND

Bank of Italy150

;,'.VJ. ^

* 50

German Federal ,Bank«>_^__^

Bank and Insurance Stocks

GOVERNMENT, STATE

u. S.

Bank of England—r-

Industrial, Public Utility and Railroad Securities

important services to

institutions and individuals

....

••

Missouri

banks:

arrangements

•

ST. LOUIS 66,

MISSOURI

Correspondent 14 Wall Street

Chicago Telephone to Bond Department

the
"

KANSAS CITY 5,

MO.

Federal

Reserve

York acts

Teletype 816-556-0490 (Trading Dept.)

Bank

Market

New

behalf of the twelve

Federal Reserve Banks

direction

the

Committee.

under the

Federal
\

Open
:

•

Dial 211 Request

Enterprise 81*70

RESOURCES OVER

$600 MILLION

The Commercial and Financial Chronicle

(336)

Continued from page

,f; The biggest economic issue of 1963 is

reduction

autos

fail to match last year's,;un-

level

to be at

usually high level. Among the areas most likely to
some declines in 1963 are housing starts and the

surplus of exports over
the increase in total output of goods and

model of

Federal

can

sales

new

may

show
U. S.
imports. For 1963 as a whole,

stricted,

services may
year's 7% rise* and .within
industrial production may decline somewhat

the

year,

resuming

before

uptrend.

for

$1.4 billion in the first

are

The automobile

being unduly re¬

DONNER
Corporation

senger
units

worth-

the

deficit

will

cars

including

truck sales of

anticipated;

tax reduction

federal

industry concluded

good year and, in

fact, the best since 1955. Industry retail sales of

Michigan's econometric

when

only

line

reach

f955,
well

were

with

the

probably

1962

pas¬

7,000,000
Industry

cars.

are

however,
above

sales

normal

exceed

imported

1,000,000 units

Unlike

trend,

and

350,000

some

over

sales

long-term

year and add $15 billion, or

the

are

growth

automotive markets.

Accordingly, there is enough evidence of taxes having
passed the point of diminishing returns to make the
.

highlights the. impact of the

Chairman, General Motors

"?%%, to Gross National Product.
.

Thursday, January 24, 1963

FREDERIC

taxation

economy suggests that a sizable tax cut of

our

of $7.5 billion would increase

velopment of declining interest;rates in.the face of one
of the largest increases in total * credit financing -on
record. That development

whether

j every $1 tax cut. According to this study,

witnessed the - extraordinary de-

The vear just ended

the recommended

possible

whiie stimulus to the economy, adding $2 to G. N. P. for

sure

the University

but

high that economic progress is stifled.

of personal income taxes would provide

15%

only half as large as last

one

taxes.

Now what about the year

expansion and mbhetary; ease followed
economic expediency of tax reduction well worth trying,
by the Federal' Reserve System. |*he ^.962; increase in- " Economic conservatives and others would prefer an imdeposits of commercial banks^set a'postwar, record, with
mediate offsetting reduction in expenditures, but even if
nearly air of the gain. in. tinie deposits. Iriaddition, to. a .this is not accomplished, a tax cut should be thoroughly
substantial "increase in loans, banks also added to their
worthwhile.
*
We can all accept the principle that the
portfolios of securities—with an increase in holdings of
greater the
tax cut, the greater the stimulation of our
municipal bonds more than offsetting reduced holdings
economy.
of U. S. Government obligations./1
Elimination of taxes, from this
i
standpoint, would be best

policy of credit

fresh

cerning
look

spirit

optimism

con¬

general

the

has

ahead?

economic

out¬

been

apparent during the

past two months and the most recent
of

measures

economic

activity

pro¬

vide sound

for this growing

reasons

confidence.

all, but the price of such fiscal irresponsibility would
be too high. Congress is faced with a delicate
decision.

uncertainties surrounding the balance of
payments position of the United States, along with the
The

great

imponderable

further

cut, make it

tax

A too small cut would be all but worthless
nomic stimulant. A too large cut would

4*4

AMM

tTIYl

for

through greater economic activity. It

know the

;

clusive

will

Reserve

Federal

under

record levels.

in this vital part

may very - well

need

can

found

observing

these

rate

accumulation

inventory

business

divided

the

and

bank holdings

increase;in

in addition to

two

This

con¬

of U. S.- securities,

•

:•

will

from

recent

dead

progress is a handicap
a

look at the

again the

The

There were,

course,

of lack

rule out

this, there is always

room

Jacobsson

goods

Great Depression

until

accounted for

1951.

most

Corporate
from

the

gain.

of four million units.
New car deitnand to fill
replacement needs alone in 1963 is estimated at about
5.2 million

There

tinued

realized

economic

growth,

easy

were

post

war

the

from

bank profits will not be

1962,

Relative

to: capital.,

;

levels

internal

corporate" financing,
no

reach profit objectives will find

shifting of

bank

important

management.

terms

loans and direct mortgage
as

interest

rates

perhaps

in¬

will

loans.

momentum,

rise

Even

money

little consolation to the business

from the investment

keeps
tion

our

seems

business

must

work

slackened demand

our

price infla-r

much

harder,

and

this

likely to continue in 1963 and beyond.

activity does increase,

being plagued by

year
v

condition

into

new

draws to

The

that

Motors, offering the greatest
all. price levels in its history,
good business for itself, for the

cars

industry and for the general

economy in 1963.

DRAIN

moderately

services,

rea¬

some

resources

portfolio to loans which will exert

end.

foregoing prediction

•

the open market
>

assumes

•

that

national

war

Since each industry

new

continuous

mining

ma¬

come

the

improved sales for
f

ery

Division

portant,
:

though,

loOk^ at this*
recent

United

our

report

Commission

mone¬

the

im¬

long

term

increase

Energy

President

makes

which will be

consider

the

largest market. A

will
we

Coal Machin-

year.

of the Atomic

States

our

coal

current

emergency will not arise.

will strengthen our competitive

position in this market and indicate

though economic activity gains

serve*

mining activity is forecast for 1963.
Two

issues, and

should not become tight for

pressures

differently by economic

chines now in service and k third to

debt

banks will shift

affected

of what the year will bring.
>
; .
Coa.1 Mining—Normal underground

after the first half,
on

conditions, we have to look af%hem
separately in preparing our estimate

financing will loom

tary policy remains similar to the 1962 experience and
■

bri expected to

General

up,

in each of the industries

necessary

expand

already averred to, namely, liquidity is large and
activity growth is not expected to absorb it all. But as

also know that such competition is
free enterprise system which
machine virile. Without

con¬

population

^manufacturer pf equipment ,for the basic-indus¬
tries, Joy Manufacturing Co.'s outlook for 1963
generally
looks encouraging, and varies with the level
of activity

outlets for lendable funds.'

price competition and lower profit margins have
great deal of the appearance of going back to
normal,
after a long period of abnormal
living. We know this is

truly the life blood of

to anticipate

The

President, Joy Manufacturing Co.

lengthening of maturities and
larger share of investment funds into

// As business transactions increase

the

reason

JAMES A.

services. A continued

consumer
.

sum

con¬

sons

competition, but

good

Ownerships

car

anticipates continued

6-8% increase. These factors al§o will contribute
enlarged outstanding volume of deposit certificates.

area

tense

man

variety of fine
automobile

municipal securities and longer term governments will
typically describe expected modifications in this critical

recov-

present

relieved

readjust non-loan investments and/or

new

in addition,

growth

the 'number of cars in
operation may
increase by about .1.8 million in 1963.

Responding to these external developments, banks to

that the

low

cars.

is,

protect

This

Our

War and

of this

profits
1932

normal for this time of the year.

excess

perhaps 1964.

comitantly restraining loan demand to perhaps
than
>

for worthwhile improvement."

uptrend

strong

families owning a car as well as in the
proportion of
car-owning families with two or more cars.' Altogether,

intensify

materially higher rate. Short of

services.

and

strong

liquidity

expansion plans, corporate liquidity also will be greait
because of favorable profit
experience, higher deprecia¬
tion flows, and the investment credit. This will of
course

primary economic task of the Western World is learning
to live without inflation. The problems of our
economy
largely are in the area of prices and profits, not the out¬
generally

available through franchised

policies, larger corporate liquidity caused by the
allowance, more generous depreciation

In this perspective there is

year

are

cars

is
growing and, with good business generally, income, in
total and per capita, continues to
rise.' In addition, it is
reasonable to expect an. increase in the
proportion of

substantially

Depression andtthen, on

last

needs in 1963,.

liais been maintained at

continue to. rise. For example, scrappage in the four-year
period 1950-1954 averaged about. 3.2 million units per
year.
Over the period 1955-1959 the average was in

however, from these will not

9^ demand deposits. Pressure

States

amazingly consistent:

wisely commented

restraint
resources

new
cars
required each year to replace vehicles
scrapped has been rising and,: when account is taken of
the number and age of cars on the road, it is estimated
that scrappage and therefore replacement demand will

liquidity-preferences of the public are high, the
gain in total time and sayings deposits will exceed that

forced draft effort would be

A high degree of

have the credit

affecting our outlook for 1963 is' the
rising long-term trend in replacement sales. The number

slow-growth

new car

buyer.

new car

potential with

charge-off s, and perhaps a tax reduction, probably will
in an 8^-10% rise in total bank
deposits. Be¬

alleged

term

of market

of'

result

impossible,

that

number

automotive demand.

A^ major factor

cause

this

of normal economic progress.
faster rate of growth as

required to achieve

h ery

dealers

investment credit

performing almost precisely in accordance

it does suggest

Per

measured

1963,

combination

money

once *

,The,4^p6t'triht-t;bing. is ibat

long-term pattern.

evidence

Doherty

The

center

substantial variations from

result of the Great

now

does not

changes

their

years and

level and stocks of used

as a ipsuit of monetary and tax
policies ,of
the Federal Government. Maximum

be felt until late

to take*

growth of the United

upside,, Woirld ^ar; II.
are

evidence

production, has been at

with the

Gross National, product in cdnstant^
dollars arid physical volume- of in¬

Tilton H. Dobbin

put

structural

Used

Demand for used cars

should

year

have

required to meet their

prevail in all sectors

t impact,

econ-

record, to observe

1900,

since

R. P.

in the cold

These thoughts led

war.

heard

have

and that lack of adequate economic

dustrial

will

some'

make

slightly differ-

years

has been

omy

llf

but

try to

much about the fact that our

fPlpI.MBh

the

;

2-3% increase in GNP/

respond

economy.

projections for 1963 thus developed.

observations

E|p

banks

supported by:

during the past few

banking in^.
dustry will be apparent in 1963 as

Instead,si

analytical focus.

the distribution of assets and liabili¬

fine students who spend all of their

many

add much to the

trend

is.

discriminating demands of the

Consumers

ties of the commercial
are

time studying our economy and making well considered
forecastsSof our economic future. I doubt if an amateur

the

balance,

Moderate

•

President, Maryland National Bank, Baltimore, Md.
There

rate.

close with

TILTON H. DOBBIN

can

most

1963 has to be

the

1963.

&0&P..

outlook

the highest level which the industry: has ever been able
Product, variety has been extended to serve the

impetus of moderate ex¬
pansionary powers resulting from
decisions made in late 1962 and early

off from last year's
pace.

;

better

Of 7,000,000 passenger

to offer.

Other

: have

taper

may

sales in 1963 could

New car prices ihaye remained unchanged since the
fall of 1958 despite rising labor costs and product im¬
provements. New car value, currently - are, therefore, at

-employment and output. On
: hand,
the tilast* half will

the

further rise in their holdings of munic¬

ipals. In/general, the rate of deposit growth

for

car

area

considerations bearing directly

P. DOHERTY

halves

confidence,

consumer

and 1,000,000 trucks.

cars

com¬

The first half
shapes, up as one that is unspectacular in~
respect to* overall"*growth,

possible subsidence of: auto ;sales.from the recent record
rate.
On the other handrt963 will probably witness a
renewed

into

high .level of public confidence

industry retail sales in the

actually at work.

From the foresight presently at
hand,

Consumer spending, currently at

approximate the 1962 totals. This would result in total

Chairman of the Board and
President, The National
Bank of Commerce of
Houston, Houston* Texas

smaller than in 1962—especially in view of the reduced

of the economy. Government expendi¬

Assuming, therefore, continued high" levels of economic

relatively easy -money policy; - to the?extent permitted

by international* considerations.;Tlms^hnothei? ^sizable
increase in bank credit is in prpspect for • 1963, although
it may fall short of the'1962 gain in total, v. Moreover,
loan expansion at. banks, is likely to be considerably

business capital invest¬

continued high rate of expenditures

rate, indicates

activity and

forthright

Frederic G. Donner

in the forward movement of the economy.

given to other forms of

record

continue

Recent surveys of

tures continue to rise.

revenue

answer, to this great issue and the only

proof

ponent economic forces

to. pursue .a

pressure

the immediate

sincerely hope that Congress will act in
manner to effect a worthwhile reduction.

probable :business ;clin)ate. in: 1963,. the

In view of the

capital from the U. S.

and short-term

hope to make

incomes

personal

ment plans indicate

eco-

tax revenue, if required, as
replacements for incentivesapping restrictive levels bf income taxes;

therefore

may

could not

be that consideration should be

anticipated .that monetary
stimulate, the economy Will again^be constrained
by the necessity .ofpropping fup! short-term;■;interest
rates, with, a view .to dampening the outflow of gold
It

year.

ease

loss

T C*

problem ihis

deficit, which is likely to be a continuing

be irresponsible,

particularly difficult to anticipate the tone
markets in 1963. Little progress was made

of financial
•«

the effects of a possible

Industrial production, employment
and

the

used

seven-fold

James A. Drain

the

prediction that the volume of
in

the

over

that, one-half
^

generation of electricity

the

the
-

coal

years.

now

Continued

When

consumed
on page

Volume 197

Number 6232

The Commercial and

Financial Chronicle

In their day, those

old surreys with the fringe

top were the pride and joy of this country.
Today, sleek steel automobiles carry man
effortlessly along the nation's colossal super¬
on

highways. Automobiles have become, one of
the

symbols of American ingenuity. Steel

makes automobiles possible... spans rivers
...

speeds jets around the world... rockets

man

into outer space.

Steel-for skyscrapers,

homes, schools, hospitals, churches, muse¬
ums,

civic centers. Steel makes progress.

Right now, U. S. Steel is constructing a
new mill to produce cold-rolled sheets of su¬
perior surface quality and exceptional flat¬
Another will enable a single plant to

ness.

supply every product for a completely engi¬
neered pipeline, with the widest range of
sizes in the industry. Two oxygen steelmaking
furnaces that can process "heats" of special
quality and silicon steels-eight times faster
than open hearths — are being installed.
What's more, additional facilities are being

completed for the manufacture of "thin" tin
plate at four locations across the country.
That's progress-the kind that makes steel
...

and the kind that makes this great coun¬

try even

greater! (f: S. Steel is proud of our

nation's progress... proud, too, of the role
it has played to help make that progress pos¬

sible... and proud, as always, to be a vital
part of tomorrow.

uss United States Steel

(338)

The Commercial and
financial Chronicle

Continued from page

48"

is used for steam power

generation, such

increase

Assuming a proper solution of these two critical prob¬
lems, the outlook for banking appears eminently favor¬
able for 1963. Banking, as a service
industry, is geared

this indicates strong market conditions for many years.
We

planning

are

this basis rather than

Metal

static

has

Mining—Despite

metal

mining

the U.

drilling

equipment to

helped Joy to

accelerated

equipment

maintain

reduce

mining

for

which

rate

makes

costs

mines

these

nation
to

potash

for

area

this type of mining and in metal

and proved products

new

this market

con-

high capacity

our

activity

mining, combined

specialists

industries.

steel, cement, and
an

increase in

chemical

for

compressors

industries, though, leads

Construction—Joy's

interest

whole, providing

economic

the

tremendous

air

highways,

airports,

dams,

economy is on
Dissatisfaction -

of planned activity in this field pre-

scope

New, efficient drilling

year.

Oil and Gas—Our

tools for rotary
gas

;

reached

that

customers

static market condition. With
of

Baash-Ross

our

improve

better position

creating

area,

1962.

over

galgathering, collecting

boosting'to

several wells and

this

improve sales.

step-up in drilling, sales

could

tools

proved compressors for

place

have

Im¬

gas from

pipeline pressures, will
competitively, and thus

"
i "
'
general, then, the sales outlook for 1963 is brighter.
but not to any dramatic extent. Improved operating con¬
.

ditions

under

strengthened

division

and

corporate

management organization should, however, show
cided improvement in our profit

position in 1963

de¬

as com¬

pared with the past year.

DRIAWDY:

SHERMAN

Georgia

Railroad

Bank

Augusta,

Trust

Company,

A discussion of the outlook for

reference—the

American

banking for the

economy

1963

year

broader frame of
whole.

For

my opinion the new year will see critical decisions made
avoided

nation's

our

two

vital

economic

aspects

K. Du Vail

post

In early January the President is

vened

Congress

munity

The

will

whether

banking

proposal

increasing

oriented

the

realities

pressure

stopgap

most

Sherman

receipts,
The

\^hich

even

other

well

entire tax structure.

our

graduated

progressive

could

which

come

chronic one. I believe that

the

The fundamental

outstanding

could

success

well accelerate

faces
a

that the rate of gold outflow

ing 1962.

increase

allowing for the reduced
problem

over

period

government

rates

our

head

levy.

economy,

during

1963,

and

somewhat reduced dur¬

causes

are

still with us, and

already alarming trend.

Here

again, fiscal soundness, even in the face of
political un¬
popularity, is the only realistic remedy. The
inescapable

alternative

disastrous to

devaluation

our

one

which

would

prove

business and banking
community.

I
j

sales

laiher

to ilwell

on One

perhaps: trio sensitive

expected,

but

effect of the

the

squeeze may

cost-

keep

earn¬

battery

industry, or^

prefer to call it, the packaged

power

both

and secondary

(non-

category

issues

that

were

50%*

fell

more.

Chicago Analysts
To Hear
CHICAGO, 111.—Lyle M. Spencer,
President

Associates,

Science

Inc.,

will

Research

guest

speaker at the luncheon meeting
of the

Investment

Analysts Soci¬

ety of Chicago to be held in the
Illinois

RoOm

the

Hotel.

Salle

nivrpcirirn

rumiiP nr

wnpin

FAMniiS namfs

The Commercial and Financial Chronicle

(354)

industries and

Continued from page

Compliance of the Interstate Commerce
recommended the Commission should
take appropriate steps to terminate their unlawful control of the C&EI. Hearings have been held and a deci¬
and

Inquiry

sion is being

awaited.

Fort

solidated

Smith,

near

at Port

Employment is approximately 700.

accelerate

the

gains

these

and

area,

expected

are

plants reach full operation..

new

all

utility

public

geared

an area

Company

electric service
approximately 30,000 square miles in Okla-

The

ulation.

experiencing

!" business.

10%

nearly

than

*—•-

new

wide-spread that

requirement of

service

our

felt

nation.

oil

fourth and

and

New

discoveries

oil

and

Agriculture continues
of the

as a

many

years.

are

completed the purchase of

dollar plant to make components for
space

will

vehicle electronic guidance

employ

several thousand scientists

Construction

site

The

corporation

entering

has "also

is;.

scheduled for completion in 1963.*

1962

received

for .construction

fense

and

steel •plant'

^EregUr Turkey.

facility,

equipment.

Completion

date

the

struction field.

initial plant is scheduled for early 1963.

Borg-Warner

In addition to
French

which

;
-

subsidiaries

anticipation

and

ent

ing

employment

Division,

is approximately

completed

2,000 and peak

ployment is expected to reach 2,500.
Western Electric Co.

completed

business

new

such

areas

Africa.

££-•/.

ent
of

■

City in May, 1960, containing 1,300,000 square feet. This

standing, Foster Wheeler also has been striving during

proximately

signer and builder of oil

;

4,000.

The

plant has

recently

contract for the manufacture of the

new.

for the Bell System and operations are

Dixie

received

pay

the year to strengthen its position as a

Cup Division of American Can Co. has

and equipment to its Fort Smith, Arkansas, plant
which contains 766,000 square feet. Employment is
aboyt
space

center

This center
tivities

will

160-acre

centralize

tract
the

near

Oklahoma

City.
ac¬

metallurgical, microbiological, analytical, oil

and gas research.
FA A

Aeronautical Center recently dedicated its Civil
Aeromedical Research Institute $6

million-building

Oklahoma City which is part of the $35 million center
there. Total employment at the Aeronautical Center is
now

equipment

During the

approximately 4,000.

Gerber

million

Products

Co.

has

new

multi-

600,000 square-foot baby food manufac¬
turing plant and warehouse on a 50-acre tract in Fort

Smith,

Arkansas.

struction is

Blaik,

Sivalls

established

Completion

date

the

initial

con¬

July, 1963.

and

plant

Poxyglas

Ardmore,

Division,

Oklahoma,

for

has

the

manufacture of fiberglass tanks for the oil and chemical

recovery of saline water.

This pilot unit, which

huge

operating plants,

The

voiunie

tivity in which Foster Wheeler is participating to
reflect

progress

and

Wheeler,

offices

increasing
this

year

designed

suburban

the

properly

diversification

opened

new

—

New

Jersey.

milestone

Foster

gas

the

was
space

out

current

projects

building

We feel

that

progress

illustrate

activity around the world include

provide

1,875,000

kilowatts

customer

September,

was

This

1962.

than 170,000 gas customers,

three

gas

use

for. space

is looking ahead to

steady growth in

pipeline suppliers.

Plans to meet electric capacity

requirements involve not only construction of additional

our

arrangements
will

improved

with

provide

;

other

Foster

35,000-

capacity

for

electric

additional

operations

obtained from large

these

ing

-plans

through

utilities.
of

sources

the

into

goes

service

generating unit
transmission

line

These
and

efficiencies

generating units and the advantages

The company has under construction

unit

energy

greater

the exchange of power under pooling

unit at Riverside steam plant
the

heating

lines in

NSP

NSP,- two

first introduced late in

gas
gas

An adequate suppiy of
to meet customer needs is available under contracts

from
{

barrel-per-day lubricating oil plant in Trieste, Northern
Italy; steam generating and condensing equipment that
will

natural

100,000th

The company

growth,

corporation.
Some

in 1962,

demand fob* electricity and gas.

ac¬

general offices in

the

sales.

sales increased by 14%

generating facilities but also interconnections and pool¬

face—the

162,000-square-foot

Livingston,

represent

changing

The construction:

heating.

will

serve

of gas

that out of the

served

the future needs of the nation and world.
To

The

means

design

illustration of the

All types and classes of business

of - growth should continue/

connected

built

and

to stimulate actual conditions to assist in the

use

Wheeler's

Bryson,

corporation designed

the

gains,;

10% increase

the results of intensive gas sales efforts in the commu¬

10,000-gallon-per-day flash evaporation unit for the

specially
announced

dollar

year

pumps.

indus¬

reflecting the colder than normal winter of 1961-62 and

steam generators,

arid

total
7 Vz %

industrial i plants, office buildings, motels, ahd

I960.

company's research

rates
pew

nities where

Kerr-McGee Oil Industries, Inc., is constructing a re¬
search

and steam power gen¬

cooling towers, feedwater heaters and large

1,100.

being

the' prior year.

competition has been mounting in nearly every domestic
area, we have held and even increased our position in
the manufacture of such

sales

Commercial

1961.

erating and other special equipment fob industry. While

added

categories ;reg--

lus to increased kilowatt-hours

elading U. S. de¬

refineries, petrochemical and

chemical plants, process plants,

telephone

being expanded.

;6ver

shopping centers and the modernization; and expansion
of many existing structures provide a continuing stimu¬

The bright industrial future In other nations notwith¬

plant manufactures crossbar switching apparatus for long
distance telephone dialing. Present employment is ap¬

7^ '

showed gainst and the outlook for 1963 is that the pres¬

South

-Electric sales in all

over

America, Australia and the newly emerging nations of
plant in Oklahoma

develop

have increased

showing better than

its subsidiaries located all over the world are also work¬

em¬

■' the $2001 million

trial customers had the best

the

Common Market development, the parent company

Norge

up¬

istered healthy increases, with

over

1,100,000 square-foot plant in Fort Smith, Arkansas, in
1961 for the manufacture of household appliances. Pres¬

Corp.,

move

nearly: $207,000^600.

revenues

kilowatt-hour

for- Northern

lihe: with' long-;

; the preceding year;

coordinating the activities of its English,

Italian

and

Cbmpanyy"

year

This is the 29th consecutive year in

Foster

Wheeler's first venture into steel plant construction, is

1962 may

mark to ' reach

integrated

space

Sales

expects its sales to

revenues; crossed

contract in excess of $20,000,000

subsidiary of Westinghouse Air Brake ^ just ohe illustration of the fact that we have been main-'
Co., has announced" a new plant at Oklahoma City to
taming the "flexibility necessary to adapt to the con^
specialize in research, development and assembly of de¬
stantly changing conditions in the engineering and con¬
Melpar, Inc.,

good

y'yXiJ the; year; 1962 NSP Total annual

rahge?bf abilities.;

-of"certain portions

over

KING

tethttrends.;*

•

overcapacity- and in¬

fields within the

new

pres-

economy of the; area, served by NSF.: For 1963 the out-"
look is for continued growth, and

coordinating the

ward. generally' in

abroad.

Continued

however, duei largely

electricity and gas
^showed gbod increases, reflecting the soUnibiess of the

NSP

realm of its wide'

electronics plant

new

been

another

States * Power; Company

anticipation of increased activity

been

John E. Kenney X

70-acre tract near the General Electric plant f

at; Oklahoma City. This

only

not

peak - in physical

indication of confidence

iv t»ing-Temco-Vought, Inc. has announced a" plant; to bebuilt

a mew:

industry.,

was

engineers.

and

has

1962

year

activities of its far-flung subsidiaries

The* project

during

work will: begin

Corp.

in¬

rate;

d whole, due

President, Northerm StatCs 'Power

The

but it has also been

missile, satellite and

systems.

economy

faster

the

competition indicates that the

ALLEN

are

strengthening its traditional position,

Oklahoma City for a multimillion

near

in the future of the

During 1962, for example, Foster
Wheeler

1,000-acre site

rate

short;notice.

follows:

the

geared.to move, in and help on very

larger and most recent plants

General Electric Co. has

products and expansion—are

Market

Common

moving

anticipate. And U. S. companies

well-known national firms have established plants

in the area. Some of the

the

get

countries

major'factor ih the ecehomy

important elements of growth. However, within recent
years

help

Many small industrial plants have also-; been

area.

is growing at

about

chemical

4 % r * Individual chemical
Kenneth h. Kiipstein-.
< company
performance. will vary, of
y:•
; .> - ^ v >
course.;•"y
; >>.•".y:/;*/:.y yy
The chemical; industry plans;—for substantial capital
expenditures fo'r plant modernization, facilities ior new

ft will take American know-how

■

be ;r about

development of the European Economic; .Community -in
the next few years.- b.;.:
: v;
v

;

the

dollar, sales increase

engineering firms', will play the major role
design and construction of petroleum, chemical
petrochemical plants during the dynamic industrial

continued to offset deple¬

.gas have
tions for

Donald s. Kennedy

continuing

tense

the

and

ranking

gas,

third, respectively, in the

American
in

Currently

plateau

may

level.

Volume of output..

| JOHN E. KENNEY '

turing. Oklahoma is still a major
producer

1963

should/see

President, Foster Wheeler Corporation

duction, wheat and small manufac-

industry.

.tojiew products -from Research, \1963:

area.

basically oil and gas, livestock pro¬

the

would appear that general business

" sure
orr prices,;

has been

change in the business climate; is

any

transmission lines and sub¬

new

stations to meet the load

Company-

outlook for the chemical industry

for 1963, it can be stated as being inseparable from that
of the economy itself. The use of chemicals is now so

own

operation in May, 1963. Other major

expansions will include

KLIPSTEIN

President,' American Cyanamid

" -than: the

generating systbnt The "

better-

are

V;-;..* v.':

generating

our

we.

«■

dustry

is scheduled for

And

a vigorous econ¬
that will bode well for ail business,' Foster Wheeler

the previous

anticipate, however, ; that i

235,000 kw

many years ago.

The economy of the area

at any

long-term growth trend.

our

are

thp£. injhq^past to design,*
and build, .equipment for a widerange of

disposed of its

utility properties

above

for

pace

engineering firms

industry.

foreign

•,

KENNETH H.

a gain of 3%.
national average. Kwh

forecast at. 10%

current

addition to

for several

year

company

The

years.
gas

per

are

future to keep

increase in capital expenditures by both

million, which includes the completion of

tricity have been increasing at a rate
of

business

our

now*

inpliirlpd

show A

bur

our

is due

industry

near

equipment and plants.

Construction expenditures for 1963 are budgeted at $35

elec-# unit

sales ' of

Company

1963

which will continue

year,

healthy

reflected

utilities

We look forward with confidence to'

omy

customers for 1963, which is

new

; sales for

growth
industrially with the attendant
growth in population and related
is

area

11,000

expansion

lubricating plant

industries.
"

forecasts for 1963.; We anticipate an increase

This rate of growth is above the

about 1,100,000 pop¬

homa and Western Arkansas with

hydrodesulfurization unit

electrical

With respect to the

industrial

This

company

Oklahoma Gas & Electric Co. provides
to

continues

also

New York;

population, and

and

'engineer

steady increase.

DONALD S. KENNEDY
President/ Oklahoma Gas and Electric

construction

areas

American

as-1

Industries might engage.

rubber plant

butyl

Arthur, Texas.

there will be

registration statement was filed

prises in which Illinois Central

Co.;

During 1963, competition will continue to be stiff in

,y.;

f Figures compiled by the Bureau of Business Research,

Illinois Central • Industries,' •Inc.' A - 1957-59. The Bureau reports that the volume of con¬
November 19 with the | struction in Oklahoma during October,* 1902; was the!
Securities and Exchange Commission which proposes -;,
largest of record and for the first ten months was 20%
to offer 3,135,415 shares of Illinois Central Industries,
above the same period- last year. New housing Starts
Inc., stock in exchange for all of the 3,135,415 shares
in October, 1962, increased 26% over October, 1961, and
(share for share) of the railroad. At this time it has not
was the best month since June,
1958. Commercial and
been determined the type or kind of business enter¬
known

Co.

domestic

with growing

company

Edison

ready to produce the

Studying the desirability of diversification to provide / at the University of Oklahoma, show that general busi¬
a broader earnings base and develop additional sources*
ness in Oklahoma continues to
run well ahead of the
of income has led the Illinois Central to form a holding .. nation when
compared with their relative positions in
-

Light

considerable expansion in the

trial expansion is a great stimulus to over-all business

growth

Perth, Australia, and

The

additions in the company's service area. This indus¬

studies were undertaken with
Ohio Railroad. The GM&O oper¬
2,766 miles of railroad. Earlier merger discussions
the Missouri Pacific have been dropped, y :";l,

with

plant

new

Many smaller firms have also announced new plants

Gulf, Mobile and

ates

has

Power

Thursday, January 24, 1963

Fawley, England; the world's largest condenser for Con¬

ucts.

■

During the year merger
the

Florida

is expected to reach about 400.

Arkansas, for the manufacture of molded rubber prod¬

;

Co.

Rubber

Ohio

has

Commission

classified items for the United States

some

Government. Employment

the

in Minneapolis.

1964,

NSP

between

arrangements.

216,000 kilowatt

will

system.

The

Minneapolis

When this
the

largest

230,000
and

volt

Duluth,

interconnecting NSP and Minnesota Power & Light, will
;
"
Continued on page 67
.

■

Number 6232

197

Volume

from page 66

KENNAMETAL* Carbides

completed in 1963, .To house its general office and

division

staff, the company will break
ground this spring for a new $10 million, eight story

Minneapolis

office building

Re-Ele

announced by

Mr.

forward

Reid,

the Board of

and

was

Com¬

cult,

De¬

reduce our

og-

Reid is

Cotton Exchange,
member of the Chicago BoardI

pi
York Product Exchange, past;

Trade,; :pa?t

Sugar

of? the

York.

•

va^hyft*-*ch has beeh;;

Exchange

and

established,

"base for improve-/

Raytnond. Koontz

a century, has been a leading manu¬
complete line of bank equipment and a

line of

handling

and* for

line

processing

data

carbides, Kennametal has
which permits the main*
tenance of the most exacting standards . . , from ore to finished

In the development and production of

protection of records and cash.
line of mechanized files and of our

our

purpose

the

Restyling. of

Trust

equipment for the

office

complete

unified control

equipment, plus ad¬

accessory

ditional units to

Elected to

serve

the

Exchange

Stuart,

were:

partner,

of 2 to 3 times that of steel. HEAT

WEAR RESISTANCE up to 100

are,

Walter S. Stern, President, H. ElCo, .(Hides);

Timothy F.

Carberryi^ partner;
Edyvsrcter-<Sg *
Hanly (Metals); and Henry Mints;

;

All of
'

•

Fischer

&•

Joseph

recently returned from

Co.,.. Was- rfe-elected

some

and I
and

were:

Robert

Inc., Metal Group; Robert Badenhop, Robert Badenhop Corpora¬
tion,

and

four,

Matthew

Maclaine,

Fox,

Inc.;'

Bal¬

Rubber

Group; Walter S. Stern, H. Elkan
&'

Co.,

and

Sidney

Transamerican

Group;

"and

Hides

Horace

Westheimer,

Trie.; Hide
M. Wetzell,

<■

•

<••

business trip that took' me

largest markets in* the United States,

pleased to report that I found, much enthusiasm

climate

over

business
time

the forthcoming year.

in the over-all
than

seems

sense

it appeared four to

six

industry and with leaders in the
community, the air of optimism is definitely

Energetic pioneering of Kennametal in the metalworking industry

Diebold has just begun construction of a new 50,000
square

IrvUj

Climax

- •

sales minded and, being

present.

Re-elected to the Board of Gov¬
Harold A. Rousselot,

Metal

future with leaders of

ernors were:

American

the

optimistic view

financial
•

ring Weis,' Irving Weis & Co.; Com-"
mission; House Group; ;Simon D.
Strauss, American Smelting & Be--;
fining Company, arid Jean Vuillo-

months ago. In discussions concerning the outlook for the

stein & Co., General Group:

Francis I. duPont & Co., rind

to be better at this

Mar¬

H. R. Marcus & Co., and B.
Franklin Foster, Harmon, Lichtencus,

qhez,

The

elected to the Board of

Governors

sales' engineers located* in all major metropolitan areas.

Treasurer.

Newly

are very

exchange alloys

tOE 5400°E under specific conditions,

use up

"Fischer,

at Diebold

available for

exception^ f spend approximately one-third of; my %
v''Time hi thk field working With* and assisting £our many ^

General Group,.1

Joseph

times that of steel, RIGIDITY
RESISTANCE to withstand

2200°F under continuous operation and our,carbon

walk*up and drive?up windows, after hour depositories,
bank; vault doors; and nur television banking -units: -It,
Matthew. IS. Fo% V4ca^Prnsid^nt(< i^iji io *
is5 our projected plan to put even stronger emphasis on
Balfour, Maclaine, Inc. (Rubber);
new
product development and improvement in 1963.
&

process,

product. Some outstanding properties of Kennametal carbides are:

kan

i)he entire

development program of some of our lines of bank
equipment including the bank counter equipment line,

Vice-Presi¬

Hutton& Co, (Commission,

over

these lines, also had an influence on
increased sales. The same is true for the restyling and

Company.

Raymond

Diebold, for over
facturer of

Vice*-

President of the Guaranty

ment in'1963,

past

ammamm

Commodity; Club of^ N^w
Prior to his affiliation with

conscien¬

increased .sales. We.will continue the /,

;

Goyerinm

Bache, Mr. Reid served

dents

new
product development,, and
aggressive sales approach were
"some of .the factors responsible for

the first elected President

was

missiles and rockets.

and

President of the Wool Associates,
He

•

c an:

Governor? of'the New York?Coffee
and

;*v

welLplanned advertising and sales.

promotion program plus

the Board pf Managers

of the NeW'Yprh

New

transportation

margin of profit. In 1962

Mr.

•

tiously applied program of research

modities,
on

machine tool

•

•.

labor

tended

encountered

com¬

steel

•

woodworking • ceramics • textile > plastics
mining » construction • food • paper • automotive •
glass • electrical • refractories ♦ ordnance • aircraft •

Bales

yean

recognized

high, but in*.

a new

ni^ed author¬
-

difficulties

—

successful,

was

creased operating costs and the

quarter

of ;a century.
rec

yet

volume

chemical

petroleum

labor.; problems in our Wooster and Hamilton
plants; In many ways it was adiffi*■:'
-

partment f o r
a

•

a year

and with

headed

modity

These

indispensable engineering ma¬
industries, such,as . , > electronics •.nucleonics

are now

terials in many

of continuous operation for

years

that was filled with many
challenges from .the standpoint of aggressive eompetitiori,

Exchange,

Bache's

compositions

President, Diebold, Inc.

Diebold, Inc. It

wide variety of Kennametal

compositions has been developed for many specific uses.
RAYMOND KOONTZ

President of

ity

tungsten and titanium hard carbides, a

104

the application of

Through continuous research and pioneering in

customers.

1962. concluded

over

building the

facilities to be ready at all times to meet all the needs

Vice-

former

has

not only

steady growth in business,

Governor

the

dynamic growth in metals industry

have

The building

in 1963 but in thb years to come, and it is

President

Commodity Exchange, Inc.,
ernors.

in downtown Minneapolis.

The construction plans of NSP indicate that it is look-

re-elected

was

;

is expected to be completed in 1965.

William Reid, partner of Bache
Co.,

(355)

The Commercial and Financial Chronicle

foot addition-tp its

Cauton,

Ohio,

has proved the ability of these hard carbides
the hardest steef alloys on thousands of applications,
Forward-looking research and development have opened markets
for Kennametal as a material for vital machine components and
for more than 24 years

This

plant.

to outlast

building will permit the elimination of the use of out-.
side warehouse; space and its excess handling, insurance
and storage costs,
1963.

This

Cppapletioh is expected in early April
,

capital

which

expenditure

undertaking is indicative of

are

now

wear-spot applications in practically every industry.

confidence in the year

our

ahead.
We will

enter the year of 1963 with hope, optimism
||v,

and, most important, a substantial backlog of orders on
the books. Setting a new company record

in 1963 from

the sales and profit picture may not be easy, but it can
be done. It will take the combined efforts of everyone
concerned to make 1963 a good year.

MURRAY KYGER

General Group.

President, First National Bank of Fort Worth,

Fort Worth, Texas

1962 went in the economic record books

Form College

most

of the

one

productive in

our history. Gross National Product ;
yearly total of $555 billion, an increase
approximately 7 % over 1961. The Index of Industrial ;

moved up to a

Fund Corporation

Production

SAN MARINO, Calif.

—

College

rose

Fund Corporation has been formed

average

approximately 118, also

Facilities include six plants, two

increase

1961. Corporate profits,

over

with offices at 2162 Melville Drive

Gross Private

Domestic Investment,

to engage in a securities business.

Expenditures

for

Officers

mine-refinery and

Equipment, Total Labor Force, and

are

Philip E. Sperry,

pres¬

ident, and J. C. Sperry, secretary.

% time highs.

':V;

•

indices

other

Edison Inv. Service'

total

BROOKLYN,
is

nett

engaging

business from
ejron

of
Mr.

Y.—Elden
in

loans

securities

rate of increase

of time and

Investing

was

supply

significant factor in

Oppenheimer & Co.

Murray Kyger
''

Service.

formerly

with

increase

many

commercial

was

crease

banks

due

the

paid

facilities,

write for "Proven Uses of Kennametal"

bank-;"

savings

INDUSTRY

This

largely to the in-

rate

35801

♦Trademark

the accelerated

commercial banks.

booklet, Kennametal Inc., Latrobe, Pennsylvania. ;V

are

deposits

Italy and Great Britain.

would like, to know more about our company's

services, and products

and;
all time high.i ^

money

was

name

If you

all

new

metallurgical refineries, a tungsten

basic research laboratory in the U.S. and

Canada, plus affiliated companies in

and

ing during 1962

offices at 73 Joral-

Edison

Barnett

rose

Bar-

Street under the firm

the

all

banking,

The most

Plant

new

these

interest

that

deposits.

The

Continued

page

68 '}■

AND

KENNAMETAL
...

(Pa/vfa&tA in, (PtoqwM

The Commercial and Financial Chronicle

(356)

Interest

to add substantially to

municipal bonds.

their holdings of

remarkably stable during 1962.
short-term business loans were virtually

rates

Interest

banks

caused

costs

increased

Continued from page

Government bonds fluctuated
Treasury Bills
ranged from a low of 2.69 to a high of 2.94, and 3 to 5
year Government issues went from a low of 3.46 to a
high of 3.84. One of the significant features of the bond
market was that the yield curve has flattened during
term

3.88% to a high of 4.09%,

and

producing; roller chains,

One

Fort Worth

enters the

area

high. A

ex¬

all time
multi-billion dollar defense contract for

new

will provide broad

aircraft industry in Fort Worth

the

with

new? year

optimism. Loans and deposits are at an

economic benefits to the area. Already we have a large

helicopter factory with a large payroll and an impres¬
sive backlog of contracts. Another major industry will
move into
Fort Worth during the year and this will

engaged in this activity.

1963, Amsted will continue its program of purpose¬

ful growth. On the basis of present
for

plans, expenditures

plant additions and acquisitions in fiscal 1963

to be in

This total

million,

$15

excess

are

Company
half times the

is about two and one

and would top tne previous record of $11,325,000

year,

spent in 1958.

completed arrangements to acquire

Amsted has already

Clay Products Co. in fiscal 1963. The acquisition

Oconee,

Milledgeville, Georgia, producer of vitrified

transmission, will add about $6.5

clay pipe for waste
to

million

annual

Amsted's

acquisition

The

sales.

will

addition,

plant to produce steel freight car
This

new

wheels is under construction at Bessemer, Alabama.

facility is expected to be in operation early in 1964.

President, Standard Security Life Insurance Co. of

whole in 1963 will be the discussion by Congress

I haven't been able to

proposed tax cut by the Administration. There is

the Yellow

doubt of the necessity for revising our tax structure
It is hoped that a tax cut can be accompanied by

ness.
a

greater fiscal responsibility with a budget that can be

balanced

the complete business cycle.

over

confidence.

loans

moderately.

Interest

stable.

total

The

measured

business

should

rates

output

should

increase

relatively

remain

goods

services

and

by Gross National Product should attain

new

highs during the year and all in all, 1963 should be

good, stable

year

in the

of the United States.

economy

JOSEPH B: "LANTERMAN

national

over

economic

for

should

what

The

packaging

be something

citation

the

those

present business indicators, we feel

1963 earnings and sales will improve
from 1962 levels both for Amsted

Industries and the capital goods field
in

life

with

insurance

will

versa

will

relief

legislation

the

and

Amsted's

one

was

the

year,

anniversary
name

the

company's

acquisitions and
The

J. B. Lanterman

program

diversification

had made the former American Steel Foundries

inappropriate. During the past 12 years, acquisi¬

tions and

product development have taken the

new

com¬

into the production of roller chains and sprockets,
machine tools, cast iron pressure pipe
for water transmission, clay pipe for waste transmission,
pany

small precision

and

the application of protective

for the oil &nd gas
The

substantial

Steel Foundries
of

new

industries.

name

coatings to steel pipe

commercial

value

the

American

preserved by the formation

was

subsidiary, American

Steel

Foundries

Inc.,

which includes the company's Transportation Equipment
and, Hammond divisions.
In

from

fiscal
a

1962,

Amsted's

year ago on a per

net

income

increased

21%

share basis, while sales climbed

18%.
For

$5,909,342,

ended Sept. 30, 1962, the company had
$7,019,951, equal to $2.50 a share- up from

year

$2.07

year

earlier. Sales increased

$125,716,536 from $106,712,952. - ;
These

increases

were

rather than into the

tably

exercise

improperly sold

are

restrictions

upon

the sale

Those policies, which almost inevi¬

"profit-sharing" or "special
mode in a good many states.

circumscribed
and it seems

the

selling

with

techniques

restrictions

though the "illegalization" and the "re¬

strictions" will continue. This is

one

form of insurance

For the

con¬

new

equipment purchases by the

Amsted's diversification program was pursued vigor¬

ously during fiscal 1962, In the year, three companies
acquired—What Cheer Clay Products Co., an Iowa
producer of clay pipe for waste transmission, R. D. Wood
Co., New .Jersey maker of cast iron pressure pipe for

were

transmission,

Indiana

producer

were

clients

their

income

and

Johnson

mechanical

purchased for cash.

Machine
presses.

These

Press,
com¬

protection. This means

interrupted income,' when the breadwinner is
disability income insurance will loom large
the insurance scheme of things in 1963 and there¬

after.

Larger than ever before.

In 1963

past twenty years the financed or so-called

and

companies will be announcing

rating procedures, new under¬
writing techniques based upon their switch to the 1958
Commissioners Standard Ordinary Mortality Table. At
policy

new

the

lines,

time,

same

from

new

many

archaic

the

swinging away
technique of
modern "age last birthday"

of them will be

"age nearest birthday"

rating insurance to the more
basis.
Policies will continue to

understand

and

become simpler to read and

attractive

appearance.

Com¬

continuing to devote a
great deal of time and effort to simplification and
legibility. The day of the "small print" policy is gone
beyond recall in the insurance world of 1963.
panies

have

and

devoted

are

The mushroom spouting of new

companies will con¬
of these will be, as
so many have been in recent years, nothing more than
thinly disguised stock promotion schemes. Some few

tinue.

Unfortunately, all too

Will survive

many

become major factors

in the insurance

world of tomorrow. Most will vanish with the passage
of

time.

tween

which has very questionable value.

The

"tooth

in the jugular vein"

struggle be¬

of the leading companies in the industry
for "in force" will continue. As a result of this struggle
many

minimum

the public will, sometimes, be

of this form of insurance selling (or is it buying?) will

Unfortunately, all too frequently, the public will be
penalized since the companies will countenance, if not
actively encourage, practices by agents which will bene¬

deposit policy has truly had its "day in the
sun." But slowly, and almost inevitably, the popularity
lose

good deal of its appeal. It has almost inevitably

been based upon a sales gimmick and all too much of

fit the agents but rarely

it has been based upon iniquitous misrepresentation re¬

refer

sulting

"twisting,"

neither the insured

nor

which was
his family but almost inevitably

the

beneficiary

the agent who was making a fat commission on

in actuality, was

policy. A
been

very

sold

nothing

than

what,

term insurance

minimal percentage of those who have

minimum

deposit

insurance

Because

insurance
many

the

warranted

this

benefited.

the buyers of insurance. We

specifically to the improper utilization

most

departments,

goodly number of alert

the ^growing

consciousness

home office executives of the serious public

re¬

developing

awareness

the

financed

policies, the sale of coupon policies to people
who require family protection rather than investmenttype insurance, the sale of
low

cost

higj^priced insurance instead

continued emphasis upon
the far more desirable
know" philosophy in insurance selling.
protection,

the

"who you know" as compared to

"what you

One major trend within the industry will

activity of

lations problem involved and the

accomplished despite the

railroads,

panies

will

states

accelerate.

This is good for the industry and certainly good for the.
insurance buying public. We refer to the
tion

trends

best

Underwriter

and

exemplified
the

Chartered

part of the insurance buying public, minimum
deposit insurance must soon recede, becoming just

Underwriter movements.

"another

tinuing low level of

water

look into past history

can

type of insurance.
the

net income of

feel cannot be re¬

Several states have illegalized them—other states have

corporate name, Amsted Industries Inc., was
adopted in January, 1962. The company's diversification
name

results will have to be foreseen—

contracts" have had quite a
advanced.

was

new

program

of coupon policies.

earnings and sales improved sharply,
and

trend which

future.

adopted,

was

personal opinion on this other than

only the crystal ball will be able to tell us that

until

year,

continuing progress.

corporate

new

fiscal

60th

line company executives who feel

The ultimate

sisted.
and

1962

company's

will be given

something to be held in abhorrence.

state that it is

customers.

Levy

this trend will result in even more denun¬

trend

disabled. So
JMichaef H.

will be selling to the same buyer an

man

this

that

nomic health of the company's rail¬
road

same

inevitably have to

attendant upon this

winner's

in¬
surance program and (if not "combined") a mutual fund
purchase. The end result will be the same as the com¬
bined purchases which are permissible elsewhere,
the

We can express no

eco¬

become

that "dual" sales will not be made. But

Of course,

influence the degree of this improve¬

tion

exceptional. In New York

law

the increase in premium costs

the replacement of income by life 'insurance,^when the
breadwinner dies and the replacement of the bread¬

accepted rather

ciations by the. old

ment for Amsted include the fate of

tax

the

unnecessarily,

only because there is insurance to pick up the tab—this
doctor renders a disservice to the entire community.

niques and insurance buying practices in 1963. More and
insurance salesmen are learning that their obliga¬

The

sale

the

hospital, completely

sends the patient to a

and

also.

true

serious
medical
profession. The surgeon who normally charges $250 for
an appendectomy and, only because his patient carries
insurance suddenly charges $850, is rendering neither
his patient nor his profession a service. The doctor who

the part of the public that
vital, if not more important,
than insurance to protect against medical expenses is
certain to create some major changes in selling tech¬

companies

hold

"dual"

and

than the

general.

Major, question marks which will

it.

fostering

State acknowledgment

insurance (hospitalization

major-medical) will continue to rise due to the con¬
tinuing increase in the costs of medical attention. The
lack of cooperation by all too many in the medical pro¬

A growing awareness on

mutual funds will become affiliated

However, based

non-cancelable basis.

income replacement

which will create ex¬

best,

precarious task.

guaranteed renewable,, or

the

type of improper practice.

insurance

life

the part of those resisting

ment

and

company) policy
non-cancelable forms
Of coverage will continue until ultimately no insurance
will be sold except on either a guaranteed renewable
(cancelable at the option of the

cial

pay

the "marriage" trend and encourage¬

so-called

trends

from

"clip the public" policies to qualitative protection will
continue. The trend away from the so-called commer¬

Because—the entire community will

mutual funds will continue to

with

international situation make 1963 crystal ball gazing, at
a

may

develop in 1963 in the world of per¬

vice

president, Amste^d Industries, Inc.
Uncertainties

thinking

that I
prognostications, here is some

and some prayerful hopes

not too far off in these

given

optimistic outlook for 1963 and general

Bank

Pages. But—with some degree of trepidation,

crossed fingers

with

N. Y.

successfully find "Soothsayer" in

sonal insurance.

The recent air of uneasiness in the economy has
way to a more

reckoning.

insurance the trend away

In the field of health

fession is going to result in, sooner or later, a
schism between the insurance industry and the

LEVY

MICHAEL H.

to1 provide more incentive for both individuals and busi¬

realities of financial

obscured some of the

area.

important features for the economy

realization that all

The cost of medical expense

be for cash.

provide added impetus to the growing economy of the
One of the most

market has brought many
securities do not continue
to rise in value forever. As a result, the guaranteed
dollars of the life insurance business have assumed an
aura
of attractiveness which had been minimized in
recent years while
the glamour of "growth" stocks
a

fiscal

company's >$6,059,000 capital expenditure in its 1962

grow

result of the 1962 bear

to the cold

Oconee

The

completed during the year, a pipe

was

in relative importance as compared
permanent forms of insurance.
The investment forms of life insurance, retirement
annuities, etc., will grow in popularity as compared to
their recent downward trend vis-a-vis equity invest¬
ments. The serious re-awakening of the investing public
to

continue

This is the company's ninth plant

munity.
treme

plant

new

record.

the

sprockets and

24, 1963

to the so-called

coating and wrapping operation at Fontana, California,

Eleventh Federal Reserve District
progressed once .again, in. 1962 with a .growth in
deposits and loans of about 4% and 10% respectively.
This reflects a tightening of loan to deposit ratios and
indicates the underlying strength of the business com¬
Banking

has

60% interest

products for the European Common Market area.

expected

the year.

GmbH, Betzdorf, West Germany. This
has been renamed Amsted-Siemag Kette GmbH

company

were

Long

unchanged.

from a low of

May, 1962, Amsted acquired for cash

in Siemag Kette

Thursday, January

...

the

professionalizaChartered Life

Property

Casualty

bearing the CLU or

the" insurance

policy"

among many

in ahy portfolio. It will be

utilized for special situations where its

use

is warranted.

Term

insurance will continue to* grow in popularity
public acceptance. This form of inexpensive "death
protection" is pretty well damned by all too many in

and

the

field

insurance.

Yet

whereby adequate protection,

insurance,
So,

can

our

provides

the true

the only
purpose

means

life

be purchased for minimum dollar outlay.

prognostication

that

term

insurance

will

the

CPCU

The

man

degree is a man warranting respect within

profession and in the world of business.
developments and the industry
is to be congratulated upon its solid backing for them.
1963 will see a surge forward in the strengthening and
the acceptance of both the CLU and CPCU movements.

The public gains by these

How

about

Medicare?

Well, 1963 will again witness

the insurance industry, or at

tives, solidly lined

ment, via

least 99% of its representa¬

against the entry of the govern¬

the social security route, into medical care

Number, 6233

Volume 197

.The Commercial and Financial Chronicle

insurance. There will be a few mavericks who will feel

justified in endeavoring to pro¬
vide the needy aged with some type of minimal medical
protection. Every industry will follow its previous prac¬
tice of fighting this as they did in 1962.
Health insurance

plans operated cooperatively by in¬

companies are

surance

development in providing

a new

From

broad

approach

based

We predict that

1963 will show a continued growth
paralleling the economic
growth of the United States. General business conditions.
will affect the sale of life insurance to a larger degree

will

cer¬

volume,

the

the U. S. aluminum

general

pricing

achieve

for

one

industry, but the

situation

must

if the industry as

prove

1963

year

relatively good

im¬

whole is

financial results.
The
in
the

industry's general confidence

future

prospects

numerous

facilities

abroad

1962,

rose

months,

of capacity

excess

production of primary alu¬
2.12

estimated

and

this and other countries.
U. S.

minum

new

here

both

duringr the last

despite the present
L. Litchfield, Jr.

evident

was

announcements of

program

million

tons

during -

better than 5% above the previous high set in

1960. U. S.

industry net shipments to both domestic and

foreign markets totaled about 2.78 million

tons,

' •'

•<

5
£

'• x;

■

?vr' "'-1$ |.J

^ k

f•'

....

With general inventories, in,the U. S. apparently

normal; working levels during most of the

the 1962

year,

shipping volume is believed to reflect solid demand,
and

presumably,

record

capita consumption.

per

basis

total

aluminum

domestic

shipments,

capita consumption

per

was estimated at 25 pounds in
estimate for 1962 is 28 pounds per person.

1961. A like

favorable

Generally

economic

conditions,

of aluminum per unit, of goods produced,

use

automobiles

and

motion of new,

the successful
volume markets for the light metal

key factors in, making

shipment

increased
such

homes, and

new

1962

paragraph.

to nullify the hard-earned award of

Crop

ising

program.

time

total

For Public Service Electric
another year in which

records

new

Gas

Gas Company

Co., 1962 has been
established for

were

Electric sales reached 14.1 billion kilowatthours

pro¬

were

our

pared with 13.2 billion kilowatthours
in

defense

seen

politics.

Recent

years

intensive effort in the

ballistic

use

missile

poses.
on

the globe.

Therefore the

forms

and

weaponry

support

program

000th

dedicated to placing

man

Administration

(NASA)

offers

vast

and Space

challenges

in¬

dustry management and technology. Some $50 billion
in business is expected to flow in the next 10 years to

literally thousands of companies participating in the
space program,' with a limited few gaining the major

!■'.

Through the stepped-up programs of both the Defense
Department and NASA, it is clear that government re¬

quirements will

pave

the way to continued expansion of

the aerospace-electronics industry.
"illusion" mentioned earlier.
The growth and

This leads

to the

5-year compounded

the

over

September,

electric

meter

the

was

the

building heating installations
mains, making
who

end

connected

home.

all

Of.

now

enjoying

Gas sales rose to

with

approximately

the

benefits

gas

therms sold in 1961, an increase of 11%. Frigid temper¬
mands for gas that resulted in an all-time record day's

send-out

million

Dec.

therms,

31,

1962,

27%,

of 8.3

million

the

above

major marketing

increasing

demands

has

long-range

planning and huge

which

the

for

past

seven

required

include,

expenditures of funds

years,

have exceeded

improvements to plant and equipment.

companies reported substantial earnings increases

ranging from 13 to 17%.
armament

mixes

wherein

usually awarded to
additional

one or

programs

problem is amplified

result of the so-called

billion-dollar

summarizing, the

year

are

large
of the

the focal point

individual company's vul¬

nerability is related to its ability to write
In

contracts

two companies, with

in sight,
as

new

business.

iture

'kdditiohai,t$125"'miiiioii,Jfor

additions and
/./••

Projects requiring the greatest amounts of funds are
those for generation and

transmission of electricity. In
October, the company placed in service at Sewaren
Generating Station (near Perth Amboy) a 350,000kilowatt turbine-generator unit. This unit—the largest
in the company's system—raises Sewaren's capacity to

kilowatts and adds another block of highefficiency generating capacity to our system. Construc830,000

Continued

1963 holds great promise for

Florida

Pulse is

con¬

POWERFUL

acceptance of aluminum ends for beer cans, Both plain
of

easy-opening features, and Alcoa is hopeful

Electric power sparks Florida's
dynamic expansion. The

volume market in this field;

The year
num

1962 was orie in which Alcoa and the alumi¬

industry
of

effects

price

severe

made

rising

substantial

progress,

despite

Sunshine State of "electrified

the

industry"

costs,

particularly labor costs, and
competition. An important factor in the

products.

tariff

tective

In this connection,

aluminum

European Common Market,

the high

presently proposed
as

pro¬

does not provide equal

to these respective markets.

access

During the past

the industry, including Alcoa,
persisted in its efforts to continue a strong position in
overseas

year

markets. While the

long-term potential for

tinued growth of world aluminum

good,

we are

international
term

trend

tainties

are

business
of

concerned over
factors

which

con¬

consumption remains

tend

obscure

the

near-

demand.

Important among these uncer¬
aspects of the U. S. economy which cloud the

outlook, the possibility of government disposal
aluminum from the defense stockpiles

periods

potential
developed.

new

oversupply,

domestic
-

and

its

power

to share •••and plenty to

spare.

FPL's newest
Take

expansion
project is a
425,000 kw power plant
at Cape Canaveral

close-up look at America's "growingest" state.
a mighty
healthy "climate" for busi*
and pleasure.
a

You'll discover
ness

number of domestic and

"surplus"

during

ranks 9th in

Florida's diversified economy continues to expand, but
investor-owned light and power companies have

the

compared to the existing

low tariff in the United States,

now

population... 10th in retail
sales•• .11th in personal
income. And we're nowhere near full grown!

continued weakness and confusion in the domestic price
structure was a sharfF ri£h in imports of both ingot and
fabricated

and

the

foreign

rate

markets

which
can

$100

Plaris'for 1963 contemplate the expend¬

declining earnings, or deficits. Five companies reported
modest increases ranging from 3 to 7 %, whereas only

electrical, machinery and equip¬
ment, -and packaging—packaging continued to gain
ground most rapidly with rigid container applications
leading the way. All indications point to an enthusiastc
and with

con¬

continuous

areas—which

year's

To provide the facilities to meet the customers'

durable goods,

sumer

1.7

therms,

record.

million annually.

230

;

heating.

atures, accompanied by winds of gale force, created de¬

rate, indicate that a substantial decline in prof¬
itability has set in. Eleven companies reported either

average

new

;

gas

our

billion therms from the 923 million

banner production and

going into the average

total of 360,000 customers at the year-

were

producers, and
together accounted for about half of 1962 domestic ship¬
ments. Sharp growth was experienced in the residential

market,

installed

company's

transportation continued to be the

products

1.961

1,500,-

During 1962, 27,000 additional

stantly

profitability factors of 20 major de¬

contractors as set forth on

both

lines.

the moon

the
pur¬

established

were

connected

and
Donald C. Luce

in this decade by the National Aeronautics

portion.

hours,

other

many

cooling

19, 1962, with a peak load

records.

systems—will receive

impetus.

new

New records

June

reduced

for

3,180,000 kilowatts and a single
day's output of 56,172,000 kilowatt¬

conventional weapons

—aircraft, short-range tactical missiles and

electricity

need to be equipped for brush-fire conflicts at any point
on

1956—materially

f'v

pounds of aluminum

gas.
com-

since

two largest markets for U. S. aluminum

building

prom¬

sales, demand and output of both electricity and

year.

Construction and

DONALD C. LUCE
President, Public Service Electric

Certainly these weapons will
continue to receive heavy emphasis, but events of the
past year-—such as the Cuban crisis-—have illustrated the

three

the

later

;

area.

fense

.......

intercontinental

James J. Ling

•

cent'gain over 'the previous record set in 1959.

per

duction and management;—because of intense
competi¬
And then hope that contract cancellations do not

tion.

1961, an increase of 7%, notwith¬
standing the fact that the unusually
cool summer of 1962-i—the coolest

have

satisfactory

reasonably

The individual companies must prove their
than ever before—in technology, pro¬

ternational

of America

Given reasonably favorable
conditions, from the stand¬

should be

illusionary

tremen¬

are

constantly re-evaluated,
influenced to a great extent by in¬

equal or even surpass the all-time high levels for both

point

somewhat

develop

posture

production and shipments which prevailed in 1962, is in
economic

There

challenges, and increased spending by the

The armament "mix" changes from

of solid demand for aluminum, which could

prospect for the new year.

from

analytical point of view this pros•perity is

LITCHFJELD, JR.

President, Aluminum Company
A period

the Department of Defense

time

LAWRENCE

capability
aerospace-

ously upward, c However,

different set of predictions.

government.

the

operating with a record peacetime
budget and the spending curve for
space exploration slanting continu¬

in the life insurance industry,

tainly call for

evaluating

industry, a constant variable that affects the
industry is government spending. It would appear that
this industry should enjoy an exceptional
year in 1963,

Massachusetts.

sizable tax cut would

aerospace-electronics industry.

dous technical

electronics

senior citizens. New York 65 began opera¬
tion in later 1962, joining similar projects in Connecticut

than is generally the case. A

the

Chairman, Executive Committee,
Ling-Temco-Vought, Inc.

coverage to

and

LINGi

JAMES J.

that the government is

(357)

Together with other Florida
companies,

we are

strengthening
network
assure

our

power

expanding and

interconnecting

of transmission lines to

plenty of dependable

power

for Florida'sgrowth and expansion.

FLORIDA

POWER
HELPING

&
BUILD

LIGHT
FLORIDA

COMPANY

page

■

The Commercial and Financial Chronicle

ERNEST

Continued from page 69

laid

MARSH

Generating Sta¬
The Atchison, Topeka and Santa Fe Railway System
tion, in Jersey City, which will have, initially, one
The Santa Fe Railway System has programmed gross
400,000-kilowatt generator scheduled for service in
capital expenditures of $90 million in 1963, a sizeable in¬
1965.
In addition, orders
have been placed for two
crease over the $50 million of expenditures in 1962 for
single-unit gas-turbine driven electric generators. One
such purposes. Modernization expenditures of this mag¬
unit With a capacity of 28,000 kilowatts is scheduled for
nitude
involving additional equip¬
operation in 1963, and the other with a capacity of
ment and replacement of many old
100,000 kilowatts—one of the nation's largest of this
units are needed to effect an econom¬
type—is planned for service in 1966. These gas-turbine <•
ical operation capable of helping to
"peaking" units can be operated by remote control and y.
t f require less than; 15 minutes to go from cold standby ..to
r keep pace with growth of the econ¬
S full load. Upon completion of these new installations, ji omy and the ever-increasing costs of
continuing on the new Hudson

tion is

Thursday, January 24, 1963

foundation for further growth in the years ahead.

Most important was the

President

start of production at

our new

$25,000,000 tire-making plant in Hanford, California. This

facility, having
is

one

the

initial capacity of 7,500 tires

most

modern

and

the world and it will enable

efficient tire

per

day,

plants in

Armstrong to better

serve

•

To achieve greater

the

capacity

v;n: " v '"
Additions to the Santa Fe fleet will

at Jan. 1, 1950.

include

The company is also

participating with Jersey Central
the planning for' a 330,000-kilo-

Power' & Light Co. in

constructed

Yards

utilities

•

eight

Columbia

have

joined in

transmission

high-voltage
struction

Eastern

other

states
line

and

plant

power

miles

600

there is

of .2.1

million

located

Virginia.-

the

and

other

Morgantown,

near

expansion to provide

marked

range

one

guidelines and rules

new

ciation and the 7%

These

;

$4,563,632

were

$4,849,829,

$2.85

earnings of

per

$2.68

per

share, down

share.-Our equity in undis¬

28.6% owned affiliate, Copolymer

Corporation, for the 1962 fiscal yerir
requal to * 20 cents per "Armstrong common share;

Was

;

relating to depre-

against 31 cents

„

year earlier.

However, both unit volume

new

toward remedying

steps

start

j Rubber & Chemical

investment credit provision In

constructive

were

earnings,

tributed

1962 tax law.

■v

up costs at Hanford, higher labor
competition, Armstrong's results in the
ended September 30,1962 did not reach the levels

from

change in the international situation,

Public Service will contract for 370,000 kilowatts of
J electric energy from the mine-mouth plants and will
r1 construct the 75 miles of 500,000-volt transmission line

tax

two per cent—assuming

approximating $19.7 million, resulting from the Administration's

main plant at West Haven,
^

achieved in the preceding year. Sales volume
dropped to
$114,376,382 from $119,388,888 in fiscal 1961, while after

ciably

West

Because

year

The System's net income for 1962 will be up appreover 1961/ but this is due to income tax effect,

the

bituminous coal producing areas—-one near Johnstown,

-Pennsylvania
•

kilowatts

the

our

costs and intense

and freight ton miles of the Santa

revenues

crease

•

excess

Fe System during 1963 are expected to show a modest in¬

"c from West Virginia to terminals in Philadelphia, northv era New
Jersey and New York, and two large minemouth power plants with
an aggregate
capacity in
.,

•

efficient operations.

Freight

Tire, which, through a new concept in
design, results in greater mileage and stability, easier
Steering, elimination of squeal and improved traction.
We also expanded our industrial tire line and are now
a major factor in that field.

from

opera¬

Extra Mileage

Ernest s. Marsh

major improvements planned

repair facilities modification

500,000-volt transmission lines

new

jflU

cars.

AmarillOj Tex., to Winslow, Ariz.,
linking Kansas City with,the West Coast; and car

thus

by the electric industry. Plans include building more
than

baggage

lightweight R.P.O.

microwave

con¬

undertaken

ever

r *
A .third major development last .year was the intro¬
duction: in March of. the Armstrong premium Miracle

^^ftfiB'T^^^ft

replacing 245 miles of track with new
continuously welded rail of heavier weight; installation

$350 million coordinated,

of the largest

program—one

District

the

Connecticut.

for 1963 consist of

investor-owned

and

semi-lightweight

and

Other

and seventeen

Service

cars,
cars

economy

subsidiaries, Armstrong; Tire artd
Company, Natchez, Miss, and Armstrong Rubber
Manufacturing Company, Des Moines, Iowa, were merged P
into the .company as operating divisions. We iiow haVe
four tire, manufacturing'
divisions—Southern, Midwest

cars

wholly-owned

and Pacific Coast and

locomotives,

various types, 24 Hi-Level passenger

northwestern part of this state.

Public

diesel

new

approximately 3,000 freight

;

peaking station which will be
Creek, Warren Cpnnty, in the

pumped-storage

watt,

•

efficiency and

and

dollar sales

were

high levels in the final six months of fiscal 1962
the improved trend continued into the
early months

o'i: the current fiscal year. This

by Public Service wiH^connect theasuper grid of the
Pennsylvania - New Jersey - Maryland Interconnection

factor, together with the
fairly favorable economic forecasts, expected increases in
Previously inadequate depreciation ^ replacement tire sales,
higher tire prices and greater ef¬
rules not only failed to recognize obsolescence arid in; ficiencies arising from our expansion program of the
past
flationary forces but resulted in funds needed for reseveral years, enables: Us to enter 1963—our
fifty first
placements being classed as profits and largely taxed
year in.btfsiness-4n a coiifidenrmoocL
^
away. These new tax measures strengthen the financial

with the Consolidated Edison portion of the
present New

situation and tend to accelerate modernization schedules.

situation which has

plagued the railroads and

other

many

businesses for years.

extending rom the Delaware River in the vicinity of
/ * Lambertville eastward and northward across New Jer¬
sey to the New York state line. Completion of this line

■

York grid which links upper New York State With New

of which is currently on order books. :
The recommendations made by President Kennedy in

Indications for 1963 and the years ahead

for con¬

are

his

tinued

WALTER P. MARSHALL

This is reflected in the larger program for 1963, much

England.

growth and development in the area of New
Jersey served by the company. Public Service |s plan¬
ning far ahead so that the company's continuing program
of expansion and improvement of its electric and
gas
systems will be adequate to meet the constantly growing
demands for electric and gas services.
;

Transportation Message

controls

Substantial

forms

to keep

the

railroads

•

transportation and Congress should act

favorably upon them early in 1963,

'£

include

American families

are

entering the

new year

credit position which will support the markets for
sumers' durable goods and services at

con¬

high levels.

also look for solid strength in other sectors of
the
-

omy.

9m8

obligations

tlie pas* 12 mon^s'
assumed

new

experience

our

consumers

during

even as others
obligations, and

extending

credit

continues to be excel-

IflBHB Mil ons of Americans have repaid
lent-

With

the

Federal

Reserve

reporting personal income at
annual rate of

•/ personal

fl^^ft

JHHjHU

record

$443 billion and

over

savings

new

high,

sound foundation exists to strengthen
the current upturn in
stalment

L. Walter Lundeii

buying.

in-

consumer

C.I.T.

expects

continued expansion of its operations

this vital

and the tire

indicated

for

construction

The automotive
at high gear,
ness

are

cau-

Wiy ufortj

industry is operating

all

And most encouraging

Product

billion,
And

1962,

expected

although

there may be

MHt

$555

they

are

lull during Some part'

1963; is

further

broadening

and Canadian busi¬

industry.

equipment for industrial, professional and scientific

use.

Many business leaders and economists have been fore¬
of relative stability while the economy

consolidates its gains before surging ahead in the mid1960's.
teau of

high

Nevertheless, to maintain
prosperity and to

degree

as a

move

cooperation

business community and

ductivity

our

present high pla¬

beyond it will demand

between

government,

labor; to the end that

nation will continue to rise and

position will remain strong.

2.2%

give the economy
dustrial and

The

alternately transmit

company will

service

•

our
our

the
pro¬

fiscal

t•

also

are

over

istrations

now

replacement
operates

almost

deliveries
trucks
would

are

total

tires

still

replacement tires for
new

hit

high and

the

established

record for the

proximately

million

result

the

units

rapidly.
area.

passenger

increase

shipped

for

Armstrong

data,

start

facsimile or teleprinter.

another

1962,

eighth consecutive

ap¬

which

year.

Improved profit margins for the whole tire industry are hoped for in
1963, as a result of increases in tire ;
prices effected during the final quarter of 1962. The Within

Armstrong, several developments during 1962

record

switching.

and

voice

This

other types

use a

record

communications.

Sub¬

pushbutton telephone instrument with

hand-set to coordinate data

This ^

increases averaged about 3%.

new

broadband

or other
transmission, and
switching device for convenient transfer from voice to
data.
/;

and

the

called

sys¬

commu¬

•

cars

over

1963,

mark.

1963

scribers will

rMost rapidly growing of all services in 1962
ern

During

million

simile,

con¬

78.6 million—the market

growing

exclusively in this

expected
a

about

hi^ private wire

any form of record

rconnections for transmitting
voice, high-speed data, fac¬

buying.

working in its favor. As

broadband facilities

will
provide instantaneous customer-to-customer voice-band

cuts, if enacted, could also

lift in 1963 by stimulating both in¬

consumer

broadening the
company's ability to serve the expanding telecommunica¬
tions market. Alternate record-voice service enables a

nication desired, such

stantly growing number of motor vehicles in use—reg¬

year

own

;

beam system will

Introduction of private wire voice and alternate
recordvbice services was an important step in

tem and

will show

of the y

■

1962.

over

high speeds, facsimile/and
Conventional telegraph services.

private wire customer to talk

Frederick Machiin

virtually unanimous

that GNP fof all of the coming year

WaiterP.Marsh.il

trattiscontinentai microwave

as well

forecasters feel

some

transmission of data at

National

reach

under-

major corporation in

vide Western Union With its

from $519 billion in 1961.

of 1963,

Gross

programs,

ever

Completion about mid-1963

new

•

trucks, factoring, commercial accounts receivable financ¬
ing and the manufacture and distribution of radiological

size,

^ft

ernize it in the process.

Any general improvement in the economy naturally
will benefit the tire industry. But some
special factors

casting

expansion
to

-***"

period, it will virtually
double the company's plant and mod-

;

These include the financing of broad
categories of production and distribution equipment, the
leasing of similar products as well as automobiles and

ness

capital

proportionate

similar time

all, Gross National Product con-;\
For

investment

gross

plant December 31, 1960. One of the

taken

countering the sluggish-

of steel.

million

$437

balance point-

at record levels.

are

programjinvolves

C.I.T.'s diversified services to U. S.
and

year

good year for

ing upward. Personal income, industrial
production and spending for
new

wire I-.- ■■■■■■■■

largest

The much-talked-about tax

Also

As 1962 draws to a close, most economists
tiously optimistic about the outlook,;;',

increase

area,

Company enters its 5lst

anticipate it will be

private

the 1961-65 period of about
$400 mil-

industry;

indicators

expansion

Board

with key

instalment

have

econ-

their

MHm

business in 1963. We

the

lion, compared with the company's

The Armstrong Rubber

strong

additions to physical plant in

gross

President, The Armstrong Rubber Company

voice

The

L. WALTER LUNDELL

year of

field,,

.>■

FREDERICK MACHLIN
President, C.I.T. Financial Corporation

1962/ the company broadened the range bf
its; telecommunications services r. to
'.T;; •

§>§!

Union,

the program,

with

competitive

new revenues

are beginning to appear for
major projects in its record expansion
program start to come on stream, in the second

Western

1962, including the im¬
removal of minimum, rate

agricultural and bulk commodities, are ur-.

gently needed
other

President, The Western Union Telegraph Company

portant one providing for
.

•

Rubber

■

" *'

corporate structure oti September 30, 1962. At that time
two

the public demands and de¬

service
serves.

tions—a policy that is vigorously and continuously pursued by Armstrong—we effected a major change in our

providing the type of transportation V

Public Service system

the total installed capacity of the

customers.

Pacific Coast and Rocky ;

our

J, -1 win exceed 4.7 million kilowatts, 26% more than the /
capacity at the beginning of 1962 and more than 3 times

rapidly growing needs of

Mountain

the

was

West¬

Union

Telex, the direct-dial, customer-to-customer
automatic teleprinter exchange
service, now providing

nationwide service through
exchanges established in 100

cities and

metropolitan areas of the country. This enables
subscribers to communicate directly with all Telex
users
in the United
States, Canada, Mexico and 79 other
tries around the world.
•
In

coun¬

January 1962, Western Union inaugurated a Per¬
Message (POM) service. At a flat rate of

sonal Opinion

75 cents for 15

words, the public

current issues to the

can express

opinions

President, Vice-President and Sen-

Volume

Number 6232

197

The Commercial and Financial Chronicle

(359)

THOMAS

public's fa¬

ators and Congressmen at Washington. The

vorable reception of this service is reflected in the White

House announcement

48,000

telegrams

his

following
*

Western Union

announcement; of the

try and

sensors

which will react automatically only to the

Unique characteristics of nuclear explosions.

jtb government and industry
data. AF
vanced

though

being

now

1963

the rate

will

rise

to be added

,>/:

fb4

the

j/It will require the best of all of us/
to

300

Air

Force

installations.

includes

five

automatic electronic

switching centers/ the lirsitrof which J
was placed ^operation at Norton AFB in .November, and
jfche second at McCIellah/AF& in bec^l^r^The system^}

sales
our

communiciatiohs ^capability /ccm^atible/with

weapons now in the Air Force

for

inventory, or scheduled

development in the foreseeable future. - DATACOM

will also bo-Used to handle data traffic of other
Depart¬
ment of Defense agencies. -

•

level.

Chairman, JMi

'
-

J'* •'

•

■

«■-'/,

MARTIN

/;>*/''/•/'

T.'"''

*i,'

]r?",

-1

July, 1962,
J apprehension

we, viewed

the

^and uhcertainty. /At/

tributed

' this

when ,they
uiany,

uncertainty.. From

factors, we surmised
.that the, last half of 1962 would see,
the

establishment

industrial

activity,

pearly

plateau

extending

[

'production, I feel that

we shall still stick with the forecast The unusual activity in this one
segment of our

economy, albeit ah important segment,
to

broad

based

activity to

ation in

week,

the

unspectacular
seem

good deal more than

for

those

appear

The recent fluctu¬

high level of auto production to

industries

sign for

most

directly

in 1963 about

Industry., to about b.3 million
The

autos.

" ;

the

last

few

years

and

the

for

been

ket

for

better

This is

the

same

increase

faster

services

and

huge

from

development expenditures. As
this

combination, the

year.

homes.
has

ances

•increase

income
their way of living.

Competition will continue to become keener all over
world. Thus, we will have to become even more
efficient and effective in production, marketing, and

industry has had an aver¬

the

distribution to bei^fit from/the expanding markets

average.

our own

It is estimated that in sanitary papers,

will show
tons.

This

gain

over

1962 production
1961 of about 41/£%, to 2,170,000

is only

avance

reasonably good

industry in 1963. We are hopeful that profits will also
improvement.
Continued on page 7$

♦show

year.

WESTERN POWER & GAS COMPANY AND SUBSIDIARIES
•/•/"/'/.'•

///*/-/;:••

; /

!•;//;/•/:V///i;'v,.^

-v./. /•■'.

//•"///;>!;/ :i.;/•;/•

/V/-1 ■///'./.•••/;

,'/•

Fiscal Year Ended September

/i5,V"\

'i tfJ'C'y Vi

/ \

•/l-' '/!,• \

a v

/•

<\' \

■

Telephone

Co«

• ma

i9St

...<iVi*V./.V.U*.».• • • • • • • I J5,806315
22,765,155

the

seem

indicate

new

unchanged level of

appliances

However, the replacement
been

growing

retail sales of

outlook

factures

steadily

*i):::::.::..:;
6W,163

43^865,785

Operating Expenses and Taxes XNote 2)
Net

51350,417
^

♦

Operating Income.....

Other

lu4/>zn-

Income

appliances.

for

many

the

chemical

specialized

by the chemical

icals.. I

see

■

the

Ineoine tot.

few

for

intermediate

1963

new

Net Income lor Westgas

and old

$ ^07,751

$ J^^09

5,398,821
577,958

$ ^447,718

Common Stockholders

5,020,863

Shares of jWestgas Common

Stock outstanding September 30.......

for

chem¬

here for 1963 of about

?5 to 7%.

3,908,930

2,783,817

Earnings per Common Share on—
c'
Average number of shares /outstanding.,...*^...........11-82
Number of shares outstanding at end of period;..........81-80

manu¬

chemicals

/Net Income^'.for- Westgas Stockholders,^..........................
/ Preferred Stock Dividend Accruals.,i

/:////■// : '

industry. M&T

3,UI7/>2i

Westgas-'Stoeklieiders-aiid SnbsidiarieB^.

MinorUyf Stockholders. *...... l!.
Net Income lor Subsidiaries* Mindrity Stockholders..»•• •..>

past

4,408,662

ap¬

placed in

are

industry. There appears to be

continued growth

Net earnings
Interest and Other^Income Deductions.

market for

over

letup in the growth of markets for

^,656,491

546,268

4,021,450

2,733,109

*1^2

$1-47

NOTES:

for the fiscal year ended September 30, 1961, include $544,350
applicable to properties sold as of June 1, 1961.
(2) Includes cost of gas purchased of $13,203,210 and $12,526,569 in the respective periods.
(3) The above earnings include operations of the former Southern Colorado Power Company
for all periods prior to May 1, 1961, date of merger into Westgas, but do not include
;//■ /.operations of former Southern Nevada Telephone Co. prior to its merger, on September
21, 1961, into the Westgas subsidiary, Central Telephone Company.
(1)

The electric

revenues

/' -The picture I have painted of the coming
encouraging.

picture,
economy
.;Can

$ 20,692,232
32366,640

......

*> ***»

• *

Operating Revenues:

it.is .this:

will expand

increase

one

1963

its

sales,
aggressive marketing.

thing

will

slowly;
but

is
a

year

obvious
year

from

the

which

the

any

individual

can

is not

company

only through

meeting them well and can look forward to new
volume records in the economy and in the chemical

papers over the past decade,
should be equalled in 1963.

I believe that

Industry has many problems, but

slightly below the average 5

has had

country and abroad.

are

sanitary

Scott Paper Company

industry is a question mark for the
The unchanged level of housing construc¬

The brightest spot in M&T Chemicals Inc.

Very

BirnyMason,Jr.

gain in production of 3 to 4% annually since World
War II, so the combined increase for 1962-'63 should be

on theb order; of a 2 or 3%; ife
mainly the result, of inventory build-up.

next year, or perhaps 1964, could prove to
be a very good year for
replacement appliances and thus
a good year for all
appliances. I see perhaps a 3 to 5%

use

growing number of families at each

and spending level to improve

age

the

years; and

this//

incomes continue to rise. There is still a general desire

among

5 to 5V2%

I believe

appliance

tion would

per¬

demand will ubeeomei more-^apparent

board produc¬

37,500,000 tons,

pliance sales since many
new

are

research

Potential demand for products

For 1963, the increase is expected

1961.

over

increase Avill be
The

and

lower

/•; Total.

objective.

centage of unused capacity has been

Thereeanbe no question that the

to be somewhat smaller. The

/! The .Steel industry should? experience a mildly bettef

coming

p
Ta

existing products. New and
products

flowing

nation's

tion in 1962 will total about

population growth of the age group which buy
homes, there seems little impetus to push .this industry

Jyear^ perhaps

MASON, JR.

intensified,

almost unlimited, and

Slow

/forward/:///!///

industry, will Continue to

paper

SUMMARY OF CONSOLIDATED EARNINGS

should remain relatively unchanged in
the coming year. With the
undoubling of families that

taking place in

industry

/ 1

housing fcohstruction industry (as measured by

been

10% decline in this

housing starts)
has

' / /

•

declining.

.Thef automobile. industry should have a" good, year but
\the- J962> Jeyel bf. production'- of ahbut jS.^
see

/*'

it has always been:

have

customers

It we are to remain healthy, however, we must con¬

.not/ up... to-

million aufos. t

prices. This has broadened the mar¬

affect

M&T Chemical's sales, I see 1963 as not Rh
exceptionally
good nor an unusually bad year. There wilrbe
littld,
if any, increase in sales.
z

the

and the year's gain

which

quality has/ been Offered to

and

well.

to 6% recorded for

grams

average work

retail sales, and the rise in
to indicate that it will take a

-country moving ahead".

our

great heights.

housing starts, the decline in the

unemployment, all
.'•get;

does not

enough to raise the level of indus¬

any

healthy

Present indications are that paper and
-

better

key to the industry's future lies in these areas.

ik*uP!

used

have had
slowly rising demand for products of industry, with
increase in total spending for plants
and equipment. Cost reduction pro¬

than

in the industry have made adjustments in their

marketing programs.

activity throughout the last half!

trial/

up more

and development, better equipment and more effective

into

nature

upon as a period of transition to a faster rate of growth

tinue to generate reasonable profits in the period ahead,
for they pfovide the funds needed for improved research

the

can

in the economy. For a number of years, we

result

h slight decline Until mid
then a slqwly rising level

1963, and
of

that

The years 1962 and 1963 will probably be looked back

had increased sales. The change indicates that

economy as

these and other

the whole

BIRNY

operations which improved their profitability.

con¬

deeper into

low, established in May, 1961.

.and/or -corporate tax Cuts all

delve

President of tJnion Carbide Corporation

companies have decided to correct the
trend of recent. years in which profits declined even

cline," and the possibility of personal

sure,

3% from the most

are

•fact that many

only 50% capacity, the'stock market
had just, experienced its: .sharp der

below the April, 1962,

■/That 1962* profits'have increased more than sales in
6ent;6f gain can be attributed in part to the

that"time,:4the steel industry! was at!

As we

study other materials

good for

Thomas B. McCabe

terms Of per

Sales.

much

and

exert its best efforts toward this

Industry sales for 1962 will probably show an 8% gain
over
1961 and, with better efficiency resulting from

year.

with

economy-

industry.

chal-»

is wholesome and

/offer uur customers/ever!
bett^^ products priced so ^a^
id give , them better/valued Bc6tt Pai>er Company/and j

jfHNMMMB?

!stepped-up production, profits should be

Each July, our company publishes an 18-mbhth economic
forecast for internal uses. This forecast is the- basis of

four sales and profit budgets for. the coming

jgB

...:

& T Chemicals, Inc.

However, they still

$333,-

Profits reached

appeared

never

think this

siastic about the future./

declining since last spring, and

recent

spot, which results inV*

prices/ Paper prices generally have
now

than

year.

1960.

over

!; Our goal today must be what

overcapacity,

in¬

combination with paper, we become even more enthu-4

;

•

use.

degree! from

some

are

•'

equipment to

been

new *

techniques needed to put all of

Another soft

provides

markets and

9.8% gain

lenging, but
paper,

link

new

the

third year in a row our profits rose faster

Competitive forces have

during the year.■•/

develop the

Sales

years.

6.3% from the previous

$31,141,000,

completed by Western Union for the U. S.-Air Force to
over

extension

reported in 1961 for the ninth straight year,

were

for the

in recent

;;

1,100,000 tons of new capacity planned > "

1962

In 1961 sales volume totaled

bit,

148,000,

percentage of

performance

than sales.

of capacity, up

capacity may decline because of the

DATACOM, the world's largest and most ad¬

digital data communications system, is

of about 92%

production

engineered • to handle

are

and

paperboard operations have been at

and

paper

creases

from 90% in 1961.<* It is expected that

Most of the private wire systems Western Union leases

1962

rate

7.4% to $22,895,000.

rose

company's recorded growth

still plagues the industry, but

course,

of 1962, our sales were $262,6.2% from the corresponding period of 1961.

Scott's

look forward to 1963 with confidence.

Overcapacity, of

tem, blanketing key target areas with strategically lo¬
cated

265,000,

Earnings

nationwide nuclear bomb alarm sys¬

In the first nine months

The year 1962 has been a good one for the paper indus¬

completed, and the Air Force placed in

operation in 1962

McCABE

President Kennedy received

that

Cuban blockade.

Chairman, Scott Paper Company

/•: /!!E$

The Commercial and Financial Chronicle

(360)

Continued

from

page

excesses

■

at the present

McCOLLUM

for

;

RALPH

been an exceptionally good year
petroleum industry insofar as volume is con¬

the

has

1962

year

natural

carbons,

petrochemicals

and

gas

sizable

increases

American Natural Gas Co.

Led

the

■■

the'

refined product

BHBaHH
J'

reach

daily for the first time and showed an increase of 2%
1961. Consumption of natural gas has continued its

record

new

year.; Reflecting

estimated at about
6%. In the Free World outside this country, substantially
greater percentage increases in production and demand
in 1963 seem assured, as petroleum continues to displace

trial

rapid growth, with the gain over 1961

coal

the

become

has

and

abroad.

•

Due to the current

primary

source

slackening rate of growth in gen¬

year

economics
their

individual

which

extent

apply

policies. Not only is there

tracted

drilling of

for instance,

showed

improvement should become

in the years to come as Texas,

in adopting wider

consist of

fewer

year.

reserves

(

forward

the

1%. Even

industry's

building

so,

capacity

rated

than

can

;

ecutives

devote

utilized

Increasingly,

this

the

indications

service

stations

and

slowdown
an

remains

done.

acceleration

Besides

giving

improved distribution methods,
been

made

persuade people

construction

in' the

marginal retail outlets being closed. Here
more

tie-in by

thus,

This is

towards

The

the

passenger

completely

growth in
upon

developing

find

travel

new

number

...

again, much
attention

demand will

success

uses

become

measures

directed

for

petroleum.

reserves.

three

largest

totaling

46 billion

cubic

re¬

feet

are

sizable

Air

Force—some

growing need

from

ex¬

customer!*

our

overhaul

firms in the country that has the facilities to

felt

The

the

off-peak

months

April

through

reservoirs

storage

west

central

working capacity of about 120 billion

Recently, facilities have been added to in¬

deliveries to customers by an additional 85 million
a

throughout

day

open

office

now

record

prepared to exceed
of

2.650

substantially

billion cubic feet set

PHILIP M, McKENNA
President, Kennametal Inc.
The outlook is better for profitable utilization of tungcarbide hard

alloy in greater

amounts in 1963

scope and

and

during the next decade* A Senatorial Committee
hearing on Nov.. 27 and 28, -1962 again revealed that, far
v

from being scarce,: tungsten
concentrates

million
is

extent

mineral
204

pounds of contained tungsten
hand

the

consumpg

tion in the United States for all pur-.
poses

is about ten million pounds

year.

Thus,

hand. It

accumulated

was

supply

twenty years'

over

past twenty years by various agen¬

cies,

at taxpayers'

amount

for

over

million

material from

raw

the

expense,

700

dollars

fourteen

more.countries in all continents. Very
little of it

Philip M. McKenna

from

came

misrepresented

China, often

the chief supplier

to the world markets.
Three.times

hard

and strong as alloy tool

steel,

tungsten carbide hard alloy in metal cutting tools have ^
tripled the output of

man

and machine wherever they

have replaced the traditional

tqol steel of 18% tungsten

alloy. It is a truism that the

tdpl material of

one

gen¬

eration becomes, in the next generation, the material of
construction

for

concentrations

components
force

machines■'*; where high

heat

and

minimize deformation and

wear

elasticity which is 15,000,000
for

must

resisted

in critical components.

p. s.

i. for brass, 30,000,000

steel, and 90,000,000 for tungsten carbide hard alloy.

In rock

the

Michigan Consolidated and its

new year,

affiliates

moved

into

new

32-story

central

building in Detroit's beautiful Civic Center. Office

are

now

convenience
With the

bright

•

Government

stockpiles alone. Current

operations formerly scattered in seven different build¬

segment

drilling and other mining tools, tungsten

car¬

bides hard alloys last ten to a hundred times as long as

pipeline

ings

this

pure-

engines

The criterion of the engineer is the Young's modulus of

day from storage.

system is

peak

engines—piston, prop-jet and

industry.

from Panhandle Eastern Pipe Line Co.,;
'20-year contract. The deliveries will be 4

operated

feet.

still

anticipate

gas-producing
1

January, 1962.

increasingly dependent

There

the

for additional services. Dallas Airmotive is one of twb

of supply, the Ameri¬

•

Future

of these efforts.

new

year
new

cubic feet

designed

research

our more

regular piston and prop-jet

1951.

from western Canada, the latter through

Michigan with

petroleum

discovery of

large di¬

At the start of the current heating season, American

crease

industry started 1962 with problems,
and it still has problems. For
approximately five years,
we have been faced with
a "glut of excesses"—excesses
of
everything, except the demand for our products and
the

sources

new

deliveries

firm

cubic

encouraging start has

cars,

volume from

our

with

service

back

continues to receive from its other

of North America.

Natural

improved oil burner and working

new

deliveries of interruptible gas to Michigan Consolidated.

un¬

to buy more petroleum

being accomplished through

contracts add to

accounts and

made- during

its

expand

new

than 400

linked, .with >:the

are

gas each
under a

ex¬

products.

program.

;

economic marketing practices is taking place. There also
are

supply

Natural system

areas

segment of

and

engine

new

the

Mills gas field near
field ever discovered in

During 1963, the American Natural system will

of inefficient

overhaul of the

expected to exceed $1,000,000 in the first year of

River

October, Provision is also made for possible additional

abandonment

Corporation and Johnson &
jet engine. Sales from the

new

are

Michigan Wisconsin Pipe Line Co. with Mid.western Gas Transmission Co, .The System's customers
a

closely with the

top

con¬

Force, Ford Motor Co. Conti¬

commercial

and

military

signed

recently have

Celanese

Co.,

output of 50 million cubic feet of gas-daily,

.Coast area, and

bearing fruit.

Oil

nental

Johnson to overhaul

large quantities of natural gas from the Louisiana Gulf

without

company

attention to

their operations is

Airmotive,

tracts with the U. S. Air

pipeline subsidiary, American Louisiana Pipe Line Co.,

|In marketing, the determination of

At Dallas

peak capacity of 90 million cubic feet a day.

ceive
,

distributing subsidiaries, began

Belle

new

In addition to the
can

83% of

some

expense

service.

from

depleted, Belle River Mills can
readily be converted to an excellent storage reservoir.

satisfactory. Further progress is imperative.
Marketing

the

average

with

industry-wide basis, the results are still far from

Convair, engine overhaul

the aviation

1962, Michigan Consolidated Gas Co., largest

American Natural's

requirements of the particular markets they serve. But
an

sub¬

pipeline to deliver the new gas supply, to the
growing Detroit market., The plant is designed to process

•

American Natural

ameter

surplus inventories of refined products.

coordinating their operations

liquid hydrocarbons from the stream and

This should

It is heartening to observe that a number of refiners
are

Co.,

for

has been a slowing
refining capacity. For 1962 .it is
estimated that the increase was only about 100,000 bar¬
or

DC-3 with a
increases
from $8,000 per aircraft every 10 months to $23,000 per
aircraft. In addition, the older DC-3 is seldom retired
Martin

will

Over the last several years, there

daily,

industry.

example, when an airline replaces

new

down in net additions to

rels

presently estimated

reserves

Michigan. Michigan; Consolidated has invested $5,000,000
the construction of a processing plant to extract

;

requirements.

Refining

daily to 180 million

piston, prop-jet

jet. We feel certain that the impetus of the

When

has

Line

Pipe

operating

development wells drilled for oil and

to meet the nation's future energy

field

The

Detroit—the second largest gas

step-up in exploratory activity to maintain adequate

For

These

of 1.5 trillion cubic feet contracted to Michigan

Late in

last

con¬

500 billion cubic feet of reserves.

corporations replace the older,

all types of aircraft

well spacing policies.
Total U. S. well completions in 1963 likely will number

about 46,000, down slightly from

operation.

made.

apparent

even

commercial and

sidiary. Additional extensions at the field are still being

Louisiana, Oklahoma and

other state conservation bodies continue to press

feet.

excess

Wisconsin

to eliminate the

slight decline from 1961. And

Wisconsin, and

System has

where the

Oklahoma,

'<}

regu¬

pure-jet models, they increase the business for the

overhaul

development completions for oil (including

service wells)

growing

and

tending

cubic

development wells* Last year,

unnecessary

Agency

As local carriers and

chases from 40 million cubic feet

way

its

for

expanding Laverne Field of Oklahoma, Amer¬

is under

Henry I.McGee

Aviation

good or better than new conditions after a speci¬

ican Natural since 1958 has increased its average pur¬

Production

this

over

In the

tangible indications of the progress made so far are as

pronounced move

supplies

gas

American Natural maintains a large and

area,

northwestern

is being made iri solving; our problems. Al¬
though much remains' to be done, some of the more

t^e total at year end to 860,000.

adequate

large initial deliveries from the new Woodward Area of

progress

follows:

HHHMHHH

concerns.

fied number of hours of

supply. These include 75 million cubic feet daily from

of the necessity for doing this, but real

out the industry

Ralph T. McElvenny

Northern Natural Gas Co. at Janesville,

sound

capital

and

unrevealed

military aircraft add sub-*•;

corporate aircraft be overhauled completely and rebuilt?

completed construction of facilities for two new sources
of

investment
growing awareness through¬

operations

2,000. com-

lations require that all engines used on

continuing expansion program. During 1962, the System

good common sense to the conduct of

and

day-to-day

1963 to

heights—following

sales also continue to rise substantially.

provide

service

companies

and

overhaul

improvement this
is possible. But this will depend largely on the
and profit prospects,

ffj

engines

30,000

estimated

Federal

the growing indus¬

tomers, bringing

military requirements or from vagaries in the weather.
On price

esti-

service contracts to be let with com-;

During the past year, American Natural's distributing
subsidiaries added approximately 27,000 heating cus¬

unpredictable changes arising out of

this estimate to the

today

aircraft

mercial

demand, many large firms

Gas heating

jHf
fSB

||Hpi|

from

and economy.

energy

expected. However, no allowance has been given in

crop

smaller aircraft with the newer, larger

petroleum demand in 1963 of only 1.5 to 2%

in domestic

such as Great Lakes
Steel Corp. are using natural gas for new technological
processes, thereby achieving greatly increased efficiency

activity in the United States, an increase

eral business

in service

-stantially to additional overhaul and

increase of about 14% in the past

over

number of

its indus¬

trial sales of natural gas in

barrels

million

7.3

exceeded

|HMN|HHE|H

air--

78,000 civil aircraft that fly in

annually.

serving this expanding economy,

American Natural expects

Crude oil production in the United
States

•
.

contributed to this improvement.

L. F. McCoiium
.

overhaul

v..

!■

aceeler-

years.

mercial

1955. Virtually every

mated

Cadillac Division

engines is

supplying

and

supply -required for

power

The

eco¬

business

the

overhaul

ating. This trend increases the base

Indicative

the

craftr jhat have been

indus¬

exceptional

industry.

framework,

aircraft

lease

General Motors Corp. recently an¬
demand last
nounced a $55,000,000 expansion pro¬
year averaged about 10.2 million barrels daily, 4%. above 1961. This was
gram in Detroit to boost passenger
the
largest annual increase since; ■car'production.
4

this

through

power

American Natural

opportunities.

optimism,

billion

industrial

Midwest

anticipates

nomic

increase of 30

1962, and of 20'% over 1961.

by record automobile

served by the

this

system looks forward to con¬

1963—an

over

sales,

system

fully into earnings.
Domestic petroleum

♦

;
'

7%,

area

lower
prices have prevented these volugains.'from being translated
.

;

feet,

try

and

costs

increased

ments,

cubic feet
or

favorable,, develop-r

such

air transportation forecast a bright year for

entire aviation

the

growth, with plans for sales of about

cubic

abroad.

Despite

vigorous

430 billion

1961 and will

over

both in the United States and

LMk^

tinued

is true

new

corporate-owned airplanes and rapid engineering

Within

shown

have

all-time highs. This

set

President, Dallas Airmotive, Inc.

strides

McELVENNY

President, American Natural Gas Company

production of and demand for liquid hydro¬

cerned. The

to more manage¬

\ v '

President, Continental Oil Company
The

levels.

able

Thursday, January 24, 1963

if, HENRY I. McGEE

time. However, real progress has

been made in reducing these excesses

consolidated

and

new

under

one

roof

for

greater

efficiency.

office

building

serve

era

tools.

uses

But,

Over the

in the

carbides

metal

past decades, the

mining industry has

working tools and

of tungsten

use

grown

to rival its

dies.

alert engineers and their managements

possibilities

for

profitable

production

the

see

use

the

stronger, harder, and longer lasting tools and parts of
as a

symbol of faith in

economic'future, the American Natural system

prepares to

steel

of great

promise.

machines

made

tungsten

carbide hard

will be many other uses which may
son,

the

present

uses.

For

alloys, there

dwarf, by compari¬

example:

crushing

and

■

Number 6232v.

197

Volume

The Commercial and Financial Chronicle

grinding machinery, especially for comminution
seal rings; in pressure vessels

of abra¬

permit¬
ting the polymerization of organic substances by pres¬
sures
heretofore unobtainable by steel cylinders; ^the
sive materials; in

by ultra high-

these transformations

striking of

most

above 1,500,000 pounds per sq. inch is the pro¬
and temperatures at which diamond
is the stable form of carbon, now already actively in

pressure

(361)

in Mahwah is the largest in

The Ford assembly plant

JOHN B.

the nation.
At

$1,250,000,000,

increase of about 11% over the

year.

duction of pressures

with tungsten carbide.

practice in several countries
cloud

chief

The

continuation of socialistic intervention

such progress by

experienced in the past
with tungsten. Congress should not hand
taxpayers' money

if not worse
The myth
be dispelled by the

of tungsten should now
disclosed at the Senate hearings. With

of scarcity

large desposits pf rich tungsten ores
in the McKenzie

the new

discovered recently

Mountains on the borders of the Yukon
Canada and known deposits in

and N. W. Territories in

continuing supply of by¬

nearby Mexico, as well as the

product tungsten from molybdenum mining in Colorado
and in California, the alleged military necessity to main¬
tain

what it
the Amer¬

We
our

always has been—a cruel and costly hoax on
ican taxpayer.

carbide industry expands the uses in

As the tungsten

augment sup¬
need. The
safety of supply for military uses is in the growth of
general use in a thriving tungsten carbide industry. Sur¬
prisingly, the earnings from profitable use of tungsten

year,

and

The

our

will provide

carbide ih thousands of channels of trade

have to be taken in liquidation of the

Government.

excessive supply accumulated by the U. S.

fast as the redundant

This liquidation should be done as

be absorbed and put to work. Export of arti¬

can

cles made of it will

against

now

help redress the balance of payments,
1

us.

1922, of $8

short

market price of $8 a unit. There

gainfully employed in mining

fewer than 500 perspns

are

^tungsten minerals in the U. S. A. today, compared to
120,000 in the mineral industry alone who would benefit
from new uses for .tungsten. Canada and other countries
not having tariff on this useful raw material do not bur¬
den the users by such a tax.

The

capita use of tung¬

per

sten carbide mining tools is ten times as great in
in the U. S. A. Of course, there is more

in Canada per

cost

should

to develop them working out the redesign of tools
That does not happen without hope and

equitably apportioned

that

"<■■*

•

♦

There
cut.

j? <

much

{ "*

talk

» '

v l''

i\' y f

"r*

nationally about an income tax

;

brought in for discussion soon

January,

and the

consensus

opinion is that some reduction will be made, mostly
personal income taxes,

and in this event, business
In the event no tax cut

trends would show the benefit.

indicated, the outlook is favorable but not impressive.

to the prognostications of the government.

continue.

While

This trend

great boom is ex¬

depression, and as far as Bergen

and equipment.

pected, neither is

incentive

County is concerned, the feeling is one of optimism for

for

profit to those who take the risk of at¬

tempting it in each of the multitudinous channels of in¬

the

every

with it.

for what

Government.

The

nee^ tq; prop up
record-briqajking sales

in the closing months of

1962 reflect the sound financial position of the
majority
of Americans. Their economic security is strong. Savings

have grown at a rapid rate, and the volume of consumer
debt is not high in relation to disposable personal
income. These are important elements contributing to
the strength of the economy.

Further, all estimates indicate that industry's capital
expenditures for

pla^it and equipment in 1963 will

thank

those

capacity. The demand for improved efficiency
reduction

the

stimulant

behind

few

defense of the people. Senator Williams has written: an
in

the

November, 1962,

Digest," revealing the

issue

the

"Reader's

record Of governmental in¬

sorry

The Plastic Wire & Cable Corporation

tervention ihtpfh^ tungstep business.

DOUGLAS W.

V: '

Jewett City,

MORGAN

Palisades 'Trust Company,

-President,

Englewood, N* J.

must remember that many

trial

have

corporations

of the nation's largest indus¬

operations

various parts

Bergen County.
would

Therefore, the national business trend
directly ,affect Bergen

than if this

were

Afie

not

case.

Bergen County has seen

dous growth in the

last

the

18th

largest

States,

and

"busiest

large

universities

campuses

second

•

in '-the

$$vl;;*:''• & ■■■

$491,144

$1.80

379,931

1.40

13,142,463

429,018

1.62

1957.

12,302,916

780,692

3.82

1956

11,427,775

700,471

3.80

of the

1955

8,512,565

331,021

1.84

the, country—

1954

6,202,502

251,944

1.57

nation^
one

...

and

its

The

NOTE:

Douglas W. Morgan

capacitv
Ridgefield,

pro¬

share.is calculated on the basis of the number of
shares outstanding at>the. close of the -fiscal year, adjusted to reflect the
10% stock dividend in 1954 and 10% stock dividend in 1960. The net
income for prior years is restated on a basis consistent with a revised
depreciation policy effected in 1961. :

The

net. income -per

t'v'-v-;'''r^-:.""v-:r'■';•*

Plaza is
•

1.93

generating

world.

Income

12,002,898

1962

,center

•.rv*i■•1?\'

1.62

ducing 550,000 kilowatts.
State

111

332,629

unit of the Public Service is located in

Garden

■

499,619

in Bergen County.

largest

$14,172,527

1959

fastest

Fairleigh Dickinson with two
3

* ;

10,093,714

the

;

12,311,796

the -3rd

has within its boundaries
v

'Net

Net

Sales
-

the

Ended

Sept. 30

1960

County boasts of the 2nd

airport

Income
Per

1958

county

growth.
Bergen

Net

Year

1961

10 "years,

prospects of this continuing
good. Population-wise it rahks

United

Fiscal

tremen¬

a
4

Electrical Wires, Cables & Cord Sets

1962

and the
are

Connecticut

Manufacturers of

■■■-'$ ■' v '■
1: ■/ -~v-.■ In studying the economic trends for Bergen County, one
■::

rated

the

largest shopping
^>-

v..

' /"

these

Annual

Report Available, Upon Request

r■

'■

•

cost

expenditures,

Continued

future.

Congressmen who like Representative Michael .T. Kirwan
and Senator John Ji. Williams of Delaware took up the
article

ex¬

ceed those for 1962 by anywhere from 3 to 8%, despite
the fact that we currently
have unused productive

given authority to use

should

our short-term rates.
,

ever

Americans

believe

foreign securities yielding higher returns.

classical example of the deadening hand of "exces¬

sive"

not for governmental actions

they are motivated to do
"Execessive" stockpiling of tungsten mineral is
money

reason

effort to curb American invest¬

greatly curtailed ih favor of socialistic activies by bu¬
taxpayers'

acquire

will continue to be stimulated by

economy

dustry under - economic freedom. That freedom has been
reaucrats to whom Congress has

military forces.

our

1863, there

will end the

national output for 1962 did not quite come

expected to

consumers

is some evidence of. a slackening of business
activity in Western Europe. If this is true, foreign loan
demand and
intcr.qst^ga are likely, .to decline, and this

v-i

There

Congress returns in

The gross

declining trend. It developed

part

ait present if it were

ment in

our

legislators in Trenton

This will probably be

after

the

enter

;to shore them

distribute the burden.
**

interest

brqad based tax must be imposed to

This matter is being studied by the
feel

are

should be taken off the local tax rolls.

burden

without

impact of the Cuban crisis served to strengthen
an upward pressure on those

new

that

in this

pace,

broad base of credit at reasonable interest rates. In
fact,
short-term interest rates would be even lower than they

It is felt that some

is the average in other states.

of this

mining done

exist in the U. S. A. It may take

modest

are tight money, over-expanded in¬
rapidly increasing production at rising

and

panding the movements of

17% of the cost is borne by the state, while

state only

40%

Canada

capita, but other larger undeveloped uses

for tungsten carbide

years

average.

low

sales, and production

existing inventory levels. And it immediately increased
Federal spending necessary to defray the costs of ex¬

There is

toward better homes, and

Speaking of taxes, however, it is felt that the school

thisTawcmaterial, constitutes a 100% tariff

the present world

situation

and abundant

historically

forecast. It generated

who

The anachronistic tariff enacted in

ton unit

tax

the

times the

Even at lower tax rates these will offset many

supply

well as their employees.

definite trend in the County

easy money

certain goods. It encouraged businessmen to re-examine

County, and advance research is done to find homes for

Treasury with taxes on the earnings.

the United States

losses which may

Constantly new industries are looking towards Bergen
their executives

recession

prices which had been in

industry, secondary supplies, in scrap, will

plies especially in time of any sudden military

general.

prices.

The wage

before.

ever

strength of

ity prices remained stable. Nor¬
primary factors which—in combination—

the

ventories,

people

the

while industrial commod¬

excesses,

Mitchell

mally,

scale is good.
demand for expert technical help in all lines.

than

employed
There is

that

be expected.

quite

was

con¬

1961-62

during

that the

inventories

improving at
John

indicate

the

economy

and

downturn

then

in relation

Savings Departments of the Banks and the Sav¬
over

felt

credit;

ings and Loan Associations both report an increase of
10%

end

mild

relatively

mixed, some having had a very discouraging experience
While others reported business as surprisingly good.

some

recovery

crisis

had

had the encouraging combination of

Street merchants in the various towns, their report was

The

that the

Cuban

economists

first half of 1963 could

improvement.

Many of the retail businesses depend on the December
sales to swing their figures into the profit column. This
year, however, the strike of the New York newspapers
appears to have had some effect, although the larger
shopping centers reported good business. As to the Main

twenty year stockpile is recognized for

least

the

-nearing

was

pletion, which should relieve some of the pressures on
the other highways next in line for

many

cluded

forecast for the year

our

prior

when

after 7 years, is nearing com¬

The Bergen Expressway,

was

ahead

adventures based upon ignorant,

in inept

motives, ih the misdirection of our resources.
facts

going on in Bergen County
help to maintain the high rate of activity.

many programs

Building, for instance, both home and industrialized,
will be active, as well as roads and schools.

by political authority such as

twenty years
over to bureaucrats the power' to spend

are

Bank in St. Louis

National

This

There

which should

the horizon is the inhibiting

First

Bank, we anticipate that business
activity in St. Louis and throughout the nation will show
improvement throughout 1963 —perhaps modestly, but
quite steadily.
ISiif
,

county in the state, and retail sales for 1962 are expected
to be

MITCHELL

President, First National

family income in Bergen is the highest of any

The

page

'*•

The Commercial and Financial Chronicle

(362)

Continued

from page 73

—like

that
some

significance

methods

posable income and personal consumption continue to

surate

with

expand because employment has tended to reach pro¬

Foods'

confidence

ftft/ft

•

highest

future

the

that demand for automotive

products

quality.

vitality

tinued

the

1963, while

unchanged

remain

in:

;

even

increase of

and

decrease

approximately

the

r-^".

throughout

by any means guarantee
see

-ft

the

than

the

foreign

to operate,
"

mate

States.

President and

spirited than in the United 1

difference

The

that

has

Utah Power

General

rates

A. L. Nickersen

between the
of these two

economic

Manager
"

utility industry, one of the
really young industries in America, has achieved re¬

during the

areas

markable

past several years has begun to di¬

discovered

minish, however.
Oil consumption
to rise by about

practical

in the foreign Free World is expected

in the

progress

are

electric

energy.

pOwer

States

supplying about 80 %

over

We expect demand
about 8%0

companies

in.

for petrochemicals to increase by

in the United States and by about 15% in the

the world's population has
world's

power

electric

producibility of crude oil and products here

industry haS

capacity.

continue to exert pressure on

200

Even:"|o,;'We anticipate that'Cifucje oil prices will
beljbwj'the^r 1962levels, anc^that-product prices

are

not drop

will*average slightly

the United' States

million kilowatts,

the

owned

higher than

lines

companies.

% of the
The

other industry

the

It would indeed

with such

are

expected in product prices in the foreign Free World.

The

growing

take the

form

Russian

of substantial

and products to the Free

tivated

prices.
of

aware

the

offensive will continue

oil

Many

abroad

ports

upon.

Common Market

Soviet oil./

Soviet

oil.

Oil

Naughton

and other organizatioris

companies

have

This is equivalent
|.fa 9 % of the new construction by all American business
combined, It also means'this industry goes, to the new
\ money

1962,

America's

steady

biggest
with

progress,

markets every year for the largest amounts

food

penditures rising $2 billion from the
estimated

worthy

billion.

$80

public

helping

sumer

The

service

develop

understanding

nutrition.

;;•

ft-

was

There

*;i *

year

toward

better

ex-

before to

industry also took

step

consumption

received.

—four

and

;ft

them

wholesalers

—

joined

contribution

during

;

and

its

chains

tacks

addition
the

first

these

full

tion's

new

gram,

which

year

public

members

the

electric
y

vital

concept is that

nutrition knowledge ft /
a

increased

consumer

good health makes Foundation
membership a matter of
essential and enlightened self-interest.
:
..

omists

general

progress made in industry growth in 1962
certainly continue during 1963. Although econ¬

are

divided

business

their

prospects,

ment that the food
1

fine

should

assessment

there

short-range

substantial

agree¬

business will maintain its
long-term

growth pattern during the
coming year..
Conditions indicative of another
good year for the
food industry include the
steadily rising level of per¬
sonal incomes, the
continuing population expansion, the
constantly more discriminating tastes of the American

;ftl-ft;'
ft

'ft"-

;

the

which has made an enormous
well-being of the people and the

the country.

ft;; ftftftift; -i' ftftft ft'ftft;' ft ft ft;

'Am ft*

iftdi"'

* '-'V

r;f'.c-

good year*

compax\y.

fqr

Many

year's fortunes, however.
policy ; toward tax re¬

spending/' the"1 '
m ba^sic ;

thid; Ttffebt '

that

the ?

wide-range of.

1963

can

an¬

over-all

the broad

including the

we serve,

utility, petroleum, chemical,

prim ary ftnd etals, ft
transportation and' machinery induS-

| tries,' '1

•

users

heat

products

industries' are large vft
and of B&W

energy,

such

their

and

Most; of |hese

M. Nielsen

steam, generators

alloy,

appurienances;

steel tubular products;

stainless,

carbon

and

extrusions; welding fittings, and

flanges; refractories; automatic process control systemsi
power plant information systems and performance moni¬
tors;

nuclear

vessels

and

systems and

power

heat

exchangers;

components; pressure

chemical

and

recovery

systems.
B&W is entering 1963 with a backlog of unfilled orders
higher than it had at the beginning of 1962, In our
.ft business, however, backlog is not. theft full measure bf
ft

future operating results because, the product mix

considerably from

one answer

just

the

last

and that is these actions

impetus. Let.

two

give

(1) To hear them tell it,

crats

invented

power

years

one

line

are

many

have

you but a few

would think the bureau-

interconnections

and

power

well

applied^ science,

consider

development indispensable to that growth

to profitable operation.

The past decade

saw

data.
to

This decade Will*

produce

mew

the' application, of these

see

and

better

products

methods.: We intend to seek out and

years

examples.

varies

year.

looking forward to future growth.

built

company

ft the uncovering of a staggering amount of basic scientific

part

received

research and

industry. While

they

year

B&W-is definitely

campaigns against the utilities started

enormous

understanding of the relationship between good food and

The

customers—goes to the Federal

master plan to nationalize the entire

pro¬

to bring

our

pulp v and.ft paper,

;; ft

every

be but

ago,

ft industry

That

Charles G. Mortimer

directly to the public in meaningful terms,; reflects
slowly growing concept; among "thoughtful
leaders.

during

information

is designed

The

Founda¬

—

another

for

appraisal of prospects in

revenues

front by the public power advocates and
many of, the bureaus of the executive branch of the
present Federal administration? ft It seems to me there

efforts

existence.

-V»ft

».*">■.

JJk

other good year reflects btir

Why then is this industry singled out for vicious at¬

can

educational,

21-year

about 24% of the total electric

total economy of

processors and-suppliers who have
supported the Foundation's scientific
research

tial and sustained growth

the

well

activities,

belief

Our

over

The history of the industry has been one of substan¬

member companies

supermarket

will

1963

< ^tndn

international

government.

25%' increase, in

new

••

-j.

Federal

and

industries,

This is about $230 million greater than its 1961

nies—-or rather by their

membership in the Nutrition. Foun¬
dation

A 1

bill and the larger share of the taxes paid by the compa¬

note¬

ftftftftftftft

con¬

„■

that

United States from

;

companies also pay more taxes than any:

type of business and the 1962 tax bill will be

$2% billion

proper

ft * v

•••ft'"

will ..influence, the

factors
duction

More of the savings of the American people

These power
other

business—food—continued

total

•

effect of^labor

;

its

;

These include the' Government's

invested in this industry than in any other.

are

Chairman, General Foods Corporation
I In

American', in-.

$3 billion annually in4 recent years.

MORTIMER

To accomplish this the

vestox-pwned power companies have been spending over

demonstrated V

financing.
G.

•, i •••:

market areas

country.

;

•

willingness to work with the U. S. and foreign gov¬
ernments to find ways to counter the Soviet oil offensive.

CHARLES

believe

I general business

the

-Vft}

price per kilowatt-hour of

This industry has a $5i billion investment in electric
pldnt and equipment, the .largest total capital investment
in

giving serious consideration to limiting im- £

are

becoming

are

their

P-ft

at continued decreases in the

American; free enter¬

•,'.m, nielsen,

electricity.

behind these exports and of the

danger inherent in dependence
The European

average

World, often at politically mo¬

however,

ing

exports of both crude oil

nations,

motives

record of doubling its

be taken over, which

President, .The Babcock & Wilcox Company

output about every 10 years and do-

;

chances.

our

This/battle; is worthy^

prise system.

investor-

ft be difficult to find another industry

industry

will be next?

the. support of all believers in the

■ft

total

abnormally low levels of 1962. No significant changes

take

compete -with

can't

should; take, part.: If our

76% of which

obviously

of theft

the

capability of

service of the investor-owned utilities.

the government. This is.a fight in which every American
investor has q vital interest' and pne.in -which^ eyeryope

Excess

and abroad is expected to

«.

-fact remains; we don't mind competition frorn

United

the

people. Largely because of this; the
United/Stateswith■: only l/16th ;

industrial nations abroad.

one

investor-owned

400

now

complaint against the technology, research^ rates
quality of

Edison first

1962. Oil demand will continue

other of the industrialized areas of the world.

applications

There

since

years

faster in Japan and Western Europe than in any

to grow

prices.

tax-free. Tow
ft interest rate, government power, projects backed; by the
huge propaganda machine' qf the executive branch of

The investor-owned electric

growth

But

isted

patently designed to

seem

other investor-owner businesses, we'll

Light Company

ex¬

directives, policies or proposed

new

difficult for the investor-owned utilities

and

E. M. NAUGHTON

whole, economic activity continues to

examples. /

'No one/who understands all the facts' has any legiti¬

•But

World

Free

more.

sumption of aviation gasoline.
In

few

Other government agencies including the. Bureau

ft make it

they have in the.past ;just to retain

American people.

but

are

changes in rules, all of which

it that growers,

development of nutritionally-valuable,' more-appealing,
better ^quality, reasonably-priced, food products for the

con¬

Creek

istration haye issued

success.

marketers,1 distributors and retailers will do

High Mountain Sheep, Marble Canyon,

Burns

| of Land Management, Department of Agriculture, Fedfteral; Power Commission and Bonneville Power Admin¬

:•

present standing. Yet competition is to be wel¬
comed. It is the force that assures progress in the further

in the consumption of jet fuel

picture

•

and

ex¬

their

piston to jet engines is expected to
an

•Knowles

ftw (4)

'ft'"?

development,- both those that are economic

and uneconomic.

ft
*7;

encouraging
not

largest

the

industry.

only the Federal government should undertake any fur¬

does

processors,

continuing switch-over from

lead to

and equipment.: This is

the ft destruction

result

which if con¬

a program

of Reclamation has made it apparent that it believes that
ther hydro

im¬

Competition will eontijiue to

pated in demand for residual fuel.
The

of $60 million for hew and

excess

generally

field

food

2% increase is antici¬

:/J:i

A-

The

Distillate consumption is

expected

likely

other

with

hands

joins

(3) The Department of the Interior through its Bureau

growth'

will

General

investor-owned

General

and

Foods

1963,

31,

penditure .tide; company: has .eypr
in a single year,
ift

gasoline in the United States

also will be about 2.5% greater.
;

spent

March

ends

proved plants

ft- nearly 2.5% higher in 1963 than in 1962. It is anticipated
;

standard

our

which

have

Board, Socony Mobil Oil Company, Inc.

United States demand for oil products is expected to
;

year

NICKERSONftfftftft

ALBERT L.

>. Chairman of the

providing better

transmission lines.

agencies of the government in

potential of our industry is aptly illustrated by the com¬
gressively higher levels. ■/'■■■■• ft'/ft.', ft.'..,ft
All things considered, 1963 looks like a good year. - ffts; pany's current capital expansion program. In the fiscal

large and unnecessary steam generating plants and high

American people at the lowest possible prices commen¬

time has gone on. Both dis¬

explore every means to develop improved and

efficient

to have been

machinery—seems

unused

Yet the REA makes 100%

Today the job of serving farm and rural
2% interest and in secret for the construction of

voltage

pioneer of convenience items, General Foods continues

Thursday, January 24, 1963

virtually complete.

; loans at

Contributing markedly to the favorable outlook is the
a

areas

its supporters.

increasing popularity of quality convenience foods. As

losing

grocers' shelves to satisfy those tastes.

record

and the ever-growing variety of products

consumer,

ft:ft;ft.'ft -ft''

ft;.

level of corporate cash flow,
growing competition, and the continuing development
of new processes and technologies.
'
Certainly, our present rate of unemployment is cause
for human concern. However, its impact on the economy
with

together

} in
ft

product

our

well.

accomplish this,:

celerating

research

our

programs.

pooling.

and

this knowledge
areas as

intensifying and

are

use

other logical

and in all

areas

data

production

and

engineering
'

ac¬

development
...

We have in this country one power pool whose
operations cover the entire area from the Rocky Moun¬

These efforts

tains

Mexican

The B&W Universal Pressure boiler is well established

The capability of this one pool is 146 million
1% times Russia's entire electric power capacity.

high temperature steam. Twenty-three UP units totaling

the

Atlantic and from

Canada to

the

Gulf coast.

West

of the

Rockies interconnections have been

complished fact for many

years.

company we have had an
35

years.

Our plans

are

In the

case

ac¬

9,400,000

kilowatts

domestic

and

inter-company connection for

going forward for connections

This will tie the Northwest pool and

pool together by 1964.

The

the

Rural Electrification Administration

and

.••••

•

Refractories

been installed
through

ordered

1962.

This

in¬

ft--

ft.*,.:-.."

.'ft*

division is enlarging its facilities

Augusta, Ga., to produce the alumina-silica fiber known
Kaowool.' Available in blanket, strip and bulk form,
can

(2) Perhaps the most blatant program of interference
that

generating high pressure,

utilities

foreign

Italy, which will be the largest boiler in Europe.

have

for

cludes several units to be installed in Japan and one for

Kaowool

paying off. ''ft".

method

of my own

utilities in Arizona, New Mexico and
Wyoming to
supplement those already in existence with Idaho and
Montana utilities.

excellent

the Southwest

are

be used at temperatures up

ft;'.-.ft

ft-.

to 2300 degrees

Continued

on page

Number 6232

Volume 197

The Commercial and Financial

(363)

Chronicle

ject to the usual sort of anal¬ get what they

As We See It
when he goes
for

consumer

taxes

the

paying

the

that
the

man

has been
since

fact

—

street

and

the

that

grandiose

are

replaced by funds borrowed
j
,

either

-it

-j

from
•

these

from

taxpayers
V;,

the banks,

Aa-

just now anybody's

rr^

The

guess.

the

programs

the >

general

been the

several

in progress

now

which

that be in Wash¬

powers

are

to be

seems

that

concensus

are

doubtless

hear

little

others that

about

have

not

least

as we

really
not

our

likely

sudden

are

solved

and

large shifts of
capital — or natu¬

least

have
been
and / are that tend to
fu¬ which
keep our costs on
in favor ; being paid as a price of peace the rise. This'may well be a

for

the

run

good volume of produc¬ in

and/sales

the rising labor costs rally by factors here at home

foreseeable

ture, continue to
of

course,

balance

trade situation which

not

should be,

markets, and there

problems in

are

of short-term

and,

—

in neutral

become

will, at

and that ®
"
&
•>.
tion
President has nbw- made-?to

■■

the individual when he goes

are

can,

good. competitive,
spectacular competitive

obviously
are
matched. ington
doing: powerless to control. There

even

well at least.

There

if they

seems

the tides of business

Just what zs to come out of
all

surpassed

ever

Most of the others

destined for rough sled-

are

rarely if

products strikes

their

which has

Administration

of the

plans

enjoying

are

can,

Some while the getting

judgment.
for

demand

It is rather more than

obvious

to be ding in the legislative halls.
much greater—must now be
T'

expenditures

and

ysis

page

industries

is steam.

mention

the

from

into the market tax reduction at a time when
goods or for business is going ahead at full

investments.
made

Continued

the

industrial,

relations

and, on/ the field/l/;.^^

record
ume

/year

■

respects vol¬

of business and

even

And Future Years
Ilia •
v
Congress are not explicit at whole, of/profits. / The fact
profits but such prospects rest^ f
into the market whether it be
&
,f.
that unemployment still runs
The foreign
situation, at oh facts /other /than;, currentV
r
many points. When the planfor consumers goods, capital
J y
..-a
;
least in its more dangerous
v
&
r
ners at the White House are higherthah; Joite iui
administration proposals
goods, or labor will of necesevidently not the/result of political aspects, appears to
xi.
through, what is done or resi
which conceivably could help
y
m
governmen
quested may be any one of sluggish business, but of spe¬ have simmered down for the
—or
could hurt
next year
greed^r than ever as a corn- A vera!'
cial factors which might or
time being. What is to happen
things in several
and the next.
might not readily yield to next in this
e,KeynexT & 063 respects. It is impossible to
crazy-quilt world
not bother with such things,
•
discover just what is being higher rates of general ac¬
is beyond the range of the
The fact that such a giant
proposed with regard to the tivity.; Let it not be forgotten
Goldman to Admit
that there are areas of definite human eye. Certain it is that
effort -of the " neo-Keynesians excessive
yKa '
•:
/A//////':../"• '//•/;'\ Ay-/J";/•/
progressiveness of
Goldman & Co., 420 Broadway,
labor ; shortage as well as developments
is and must be far more com- the
are
taking
present tax schedules-plex and uncertain than thus and will continue to be until areas of so-called surplus place, as for example in the New York City, members of the
•

•x

-x

„T,

,xt,

•

—

•

;

indicated

the

not

only

such time

as we are

told what

labor.

so-called Common Market in

New

York

Exchange,

Stock

Feb. 1, will admit Alan B. WeisThere are,, of course, flies
business changes are to be made in
Europe, which must be a mat- man to general partnership and
in the ointment
or at least
executives are, in our opinion, " taxes
applied to this, that, and
ter of some concern to at least
Robert R. Stone to limited part¬
likely to feel it necessary to the other type of income that certain flies buzzing around
some
arrive
at
conclusions * about is now in
types of business here. nership in the firm.
awaiting an opportunity to
question and more

reason

why

most

—

the

outlook, first of all, with- precisely what is and what is get into the ointment. One of
threats is the

not deductible in : important
the Alike particulars. All this and other
that, is
being planned in vital if technical aspects of
Washington. The fact is that the matter are yet to be
obviously there -is/ nothing,tworked,out or at least yet'to

the

eyen^ resembling certainty

will then have the effect such

out much reference to all the

and

pump-priming

about

the

adoption

-b#niade available to the gen-

the

eral

public.

President!s; fecommendations what
-^certamly not in anything this

Any

effect

is; done/in Washington

year upon

the

course

that

the

possibility

Administration; will

be able to

ian

Keynes-

type of legislation which

the

have

regularly had
past rather than the

measures

OCCIDENTAL

persuade Congress

to enact considerable

consequences

that the Admin¬

:v:y,

u.l

■;

UtM'. Wr

IIP ETRO L Emm
CORPORATION

original form—nor industry and trade both in its istration plans. How real this

like their

about the time of their

adop- immediate

and

consequence

imprint > ,upon.\ funda-

threat is it would be very

dif¬

tion." Whatever the dyed-in^

hLv

the-wool

in Congress, both in

fflentals which ^ ^ b<?ar it cannot well be! wholly
a' a 1ater date, must, /ignored. Another potential
accordingly,
.appraised danger point in the current
<Iuite tentatively and with situation is found in the ob¬

reservations.

frontiersmen

may

believe about how such things
work
are

and

out

many
out

thete

practice,

the

President's

party, who cannot quite bring
themselves to look

favorably;

.upon

penditures and

■

o..,.

dalmly and
record

ex*.

simuitaneous

ficult to say

vious

Other Factors

1".

Mehhwhii^Al.dhere';1

are

number of factors in the

that

or many

the

labor

of them,

are

a not impressed with the views

ex¬

/fact;

unions,

at this time, but

rent situation which are sub¬

of the
the

President, but

are

contrary * determined* ■ to

jhe "rMost :Accurate-and;CompJete

See/'SECURITIES' NOW IN" REGISTRATION", in-the
../-V

-•:*

v.'

'•/'

/•*:'.

•'

;

/-',

•

CHRONICLE for the most comprehensive concentration
OIL PRODUCERS SPECIALIZING IN

news on new

security offerings—published weekly in

NATURAL GAS PRODUCTION
Listed on American and Pacific Coast Stock Exchanges

The COMMERCIAL and FINANCIAL CHRONICLE
..

25 Park Place, New York 7, N. Y.

c v c r i I T I \/ c

t atv.U I IVt

c c i r c c

(JrhlLCi:

knrniTiAilf

,Ciircr

OPERATIONS CENTER:

10889 wilshire boulevard,
L0S angeles,California

5000 STOCKDALE HIGHWAY,
bakersfield, California

The Commercial and Financial Chronicle

(364)

from page 74

Continued

;

■'

•

ROBERT

Fahrenheit—and

little physical change.

•with very

atomic

research

active

B&W's
programs

higher on certain applications—

even

contracts,

advanced

marine

"precile
In

plants.

iture

this

the largest capital expend¬

lation

in B&W's history. Projects already ap¬

program

proved call for expenditure of $18 million in 1963. Funds
hand,

plus

those

Yet

expect to generate within the

business, will be sufficient to finance all capital projects,

envisioned, for the foreseeable future.

now

«(V

•:

v'h.v'

Company

the

rise

year,

the

rate

not

1963,

billion

$570

average

may

Will

output, will

most

mation

either—especially in light of the fact
the

that

sion

gresses

cyclical-

chances

slower

Life

■

' |

expan-

and will

its

throughout

economy

purchases

strong

provide

support

they have

done

should

1963,

the

ment

past. The rise anticipated for 1963 in the number

consumer

purchasing and saving

stimulate life insurance sales.

domestic

vate

investment

of less

international

lower

scene,

have

already

net

exports

but

some

in the
=

machines

that deficit

debt increases

with

tax cut

any

better

another

services

linked

offer, the industry

expanding volume

year

life

one

insurance

tionary
the

•

prices

has

effect

even

stake

in
1

recent

<2%

rise

There

the

usual

infla¬

will

but4

years,

concern.

con¬

1#
-i
v{£I;77k V"
v...k
:ov\V:. • 7':.;•; V;'•
7.'&
In line with the .general economic
Outlook, we

much

giving

the

encouraging

than

1963

jected.
'

antici¬

'Most

was

showed

milestone

of.

some

U. S. residents closed

probably

the

cross

$700

1962

time this year.

Health Coverage^ ^measured by premiuhis ^received,

life

companies,; expanded

11%: last

year

■?

that

today

the

un¬

economy

the

particular—7

and V,should

ulators,
mate

benefits

stream should

symptom
the

the

short,

1963

looks

good

for

the

life

insurance

assure

growing evi¬
and

The

tire

with

of trouble

Industry,

the

not

Industry's

areas.

profit

margins

progress.;
future

1962

growth,
measure

Was

units than

was

the

1962 production of

all-time high.

new
was

and,
more

which

This

140,200,000

was

9 million

predicted at the outset of the

result

This

record

over,

economy

months operated at.
often side- ■'<

was

this

meet

O'Neill
-

7^
7

eriteredilhtq lease^^^ta

need

yet at the

for still

capital

same

other

time to
to

uses

year's

travel

year

automobiles

near-record

businesses

models,

leasing of

vehicles

are

fact that provides

for the

mated

fleet

Leased

trucks.

con¬

increase

seven

million

than

500,000

have

leased from
:

passenger

and

vehicles

usually the current
an

new

reliance of
or

late

almost automatic market

latest production.

been

cars

under

Of all the autos used by
are

of about

produced in part reflects the growing

cars

This plagued

during

corrective

Industry's

gear!

higher

profits.

others,

needed

nation's

working

M. G. O'Neil

price

slimming

among

pricing policy

Rubber

units

and

volumes

ments

for

serve

control

the

for

account

into

corhP.etitiye7^any;c6m

in the ulti¬
well

move

that^'businesses^: have> been ; under.
constant pressure Tto upgrade their77 '7wm. J.
^rapital7|quipme^^
to stay,
7,;:;

be taken in 1963.

must

economic
year.
;

business.

cost

Rubber

realistic

policyholders.

greater in the current

vital

1963—as

the.;

over

instead of upward. This meaht

ways

Rising

?777';:;7 77777,:;77'7*

even

factors

major indicators

are

stability in the nation's major business

year,

two-thirds of this amount
going to living
The flow of life
company benefits into

1962

high level of activity,, the pattern

good produc-

come—is the

dence

Connecticut, New York, and Massa¬
result, a number of other states may in¬

life companies paid out $12.25 billions in
life, health, and annuity contracts, with about

1962,

realized in 1962.-.

but "more

success

years

companies has

Last

during

volume ;for

the past twelve

profits,

higher level of business
was

million mark.

Though

squeeze

gains

These prospects of

recent

industry's

tiori pace are definite economic stim¬

been impressive in

stitute such plans.

Several

effects

and

vehicles

This compares with
growth rate of about 20%
years; and would bring.

annual

$625

pro¬

with revised estimates,
a

leasing

outlook

supplying

from

the year before.

years

senior citizen health plans offered
by the newly formed
associations of private life and casualty

volume

in 1963 than
-

continue upward in the coming months. Endorsement of

chusetts. As

leasing industry attained new records

equipment to users without cash outlay on their part
rose about 25% this past year from

;

harmful

primed for

its

and now,

economy.

estimated

Revenues

overall

originally

tries, despite the cost-price

billion

Incidentally, the inforce
Metropolitan crossed the $100+billion mark last July,

continue

WILLIAM J. O'NEILL

nation's basic indus¬

of the

Life insurance in force

will

President, Leaseway Transportation Corp.

with

and

plan

profits of this year or next, but on the

our

the nation's

O'NEIL

indications

reasonable

are

pate further growth in life insurance assets, life cover¬
age on the American family, and private health plans.

billion

divisions. Our capital investments are not pred¬

icated

$680

expanding

our

States,

The fast-moving

phenomena of back-to-back good automotive

materialize,

for

(

long-range economy

United

premise that we are in business for 10, 25 or 100 years,
and we can't stand still if we are going to grow with

1963.

United States—and the Rubber Industry in

after year is, to say the least, cause

year

confidence in the

our

the

all

dollar, the

financing. -True,

dampened

real

very

deficit

have

pressures

cumulative

sumer

for

business

dangers

Based
of

and recognition in 1962.

of the guardians of the value of the

inflationary

stantial gairis in tire sales, both

expect

President, The General Tire & Rubber Company
As

1963 outlook is very favorable. We forecast sub¬
replacement and original
equipment areas, and in our rocket propulsion, chemicalplastic and entertainment divisions.
: Our

EDP

into

can

new

history. ;

processing, particularly

1962 resulted

performance

high sales peak. Earnings were below the 1961
level but still rank as the third best in the company's
record

expenditures and finance

;777

soundly.

Rubber- Co.'s

opportunity. Certainly

equipment will

the

the 12th consecutive year, The General Tire 8c

For

growing segments of the industry will

basic

those for

overall groyyjh picture.

portant factor in the industry's

With demand for its products at a record level, and

further—making it im¬

even

perative to "hold the line"

this

extent

appliance, furniture and
industries,vnwM?#£d -jihe Remand for

communications

strong demand for ' traditional business
be anticipated as well. To an increasing

can

such

industry,

home

synthetic rubber and have become an increasingly ini-

'
machine

business

presented

by the

aircraft,

automotive,

systems by means of various "common languages.".

all levels may be spending more. A

large federal deficit is already certain, and
would enlarge

of medium and small-scale systems. However,

case

continuing

im¬

be the pattern for 1963.

Governments

have

be in the area of electronic data

provement in the over-all balance of payments deficit
may

of the fastest

one

occurred

inventory building. On the

conditions

again, the increasing number of non-tire products

Once

manufactured

although

And

manufactured

by United States companies.

for intuitive manage¬

era

manufacturers with an excellent

and

However, the peak in pri¬

may

last autumn because

power

intense.

slipshod financial 'control, /

These

people employed and in the people's income should

strengthen

becoming

vigorous, highly competitive

often,

business

of it will be synthetic

74.5%

industry,

earnings in most lines

of synthetic rubber to the total rubber

consumption picture will again be greater in 1963. It is
estimated that of all the new rubber required by the

time competition in most lines

same

implement

1,200,000 replacement units sold

were

The penetration

the Sixties are bringing the greatest business opportun¬
ities in; history there is less and less room in, tthis

be* the severe squeeze

of business. At the

Cecil J. North

There

area.

in 1962.

businessmen today.

\,K

-With

insurance,

in the

with the future need for advanced equipment

is also encouraging.

1962's 10,200,000 units

good indication that

will be bettered. This is also true in the farm

em¬

be, pressed

automobiles and

new

Outlook in truck replacement tires

ing is onljr 6ne phase of the dilemma faced by most
An even greater challenge has been,

;

and; the

rate

industry growth trend, should barely be affected.
Consumer

will

years,

equal 1962's
tires for use
4,465,000 tires for-new trucks,
could

demand

equipment

original

There is

The sheer, volume of record-keeping and data-process-

adjustment become

some

likelyi.

recent

products

3.2% increase

and trailers.

and services.
v

when'*.: growth- •generally ' pro¬

keep

economy

advanced stages

operations. Quite literally the
equipment industry; despite the investment of
hundreds of millions of dollars to develop new auto¬

bad

not

The

be done during the intervening years to more

can

high; Current projections

a new

good year. The industry shipped 37,395,000.

business

gain expected this year

outstanding,

definitely hit

1962's requirements.

over

fully automate banking

the

Although

1962.

above

require by 1975 approximately 400,000

which

year's output at 2.8%

indicate this demand will top 80,000,000, a

ployees than it has today. And this is despite everything

and

for

recently published

Statistics

auto¬
favorable autogreater demand

production.
for replacement tires in the passenger; car

Demand

tire
of Labor

production, outlook points to a
1963 than in 1962 even though, officially,

sizes will

in his everyday activities;. He

study which indicates that the banking industry alone

quarter-to-quarter

is the

are

Bureau

;

(

below last year's record

national.
The

serve

rolled more

year

transportation services for our grow¬

market research analysts peg the
Robert S. Oelman

7!"

Product, the money

throughout

feel

and life

economy in general
should be favorable.

nation's

our

probably show,

may

the

in particular

Gross National

areas

slackening in the latter half of 1963,

performance

insurance

measure

andh geographic

industries

few

the effects of some

family

•

tires in

for

each passing year the average person is

records

which last

trucks, coupled with the

and

motive

consuming more goods of all kinds;
they are taking out more insurance policies; they are
patronizing the service industries to a greater, extent;
they have made leisure-time activities a huge national
industry; they are traveling thousands of miles annually,
not only in this country but abroad, and they are be¬
coming increasingly involved with a host of govern¬
mental
regulations
at
all levels—local,
state,
and

1' lit.J;.

President, Metropolitan Life Insurance

mobiles

States will in¬

important

and his

J. NORTH

CECIL

While

creating

;

even

that with

fact

today

streets

and

to be as

appear

prospects of even greater travel, by; both

The

million people.

by 34

crease

highways

million vehicles,

too,

predictions.

early

year's

ing, roving population.

has been due to our

United

last

in providing the

population.

the

and

Industry,

than ~ 760 billion miles to the far corners of the nation

During
decade, for example, the popu¬

Capital improvements, of which about $27 million was
disbursed, in 1962 as part of

part, the growth of paperwork

mushrooming

Rubber

the

for

upwards although they,

America's
than

spent $125 million

past 10 years we have

fact that

the

synthetic made in U. S. plants.

was

projections

conservative

manage¬

•

in recent years

In the

1963

adjusted

and

and timely operating infor¬

mation.

(SSCR) for stationary power

Control Reactor

and,

ment^ increasing, need vf°r.

These are the Consolidated; Npclear;j Steaflqj
Generator (CNSG) for marine propulsion and the Spec¬

systems.

tral Shift

job,

data-processing

and

Significant

rubber.

especially for The General Tire & Rubber Co., have been

continuing

record-keeping

the

growth

new

rulbb^r

profits, generally, did not reflect this record per¬

But

generally good

are

formance.

All

conditions, the

73.1% of this

1963.

economic

designed and are marketing
stationary nuclear power:

have

these
more

favorable outlook

Company's Indian Point

Edison

equipment.

office

other

tons

long

billion in various types

of $5

and

Among factors contributing to this

contracts such as the N. S. Savan¬

Consolidated

machines

likely that another new record will be estab¬

appears

With the knowledge and experience gained from

Plant.

alltime high

business

lished

generators, and have executed major

marine and stationary

and

invested

'•'

To provide the products for their customers, the manu¬
facturers of rubber goods consumed a record 1,685,000

;

During the past year business, industry, and government

enabled the company to establish itself quickly
energy.
We are a prime supplier of naval

reactors and steam

nah

tive Industry.

Cash

National

engineering development

and

recorded by the Automo¬

and trucks plus the fine year

OELMAN

President, The

and

Chairman

Thursday, January 24, 1963

...

leasing
:

and

160,000

lease

trucks

are

industry this

esti¬
year.

businesses currently, about 25%

concerns,

another 25%

Continued

are

owned

on page

Volume

Number 6232

197

The Commercial and Financial Chronicle

Trust's

economist

sees:

C. Haas &

New

change

interest

and (3)

structure

rate

(2) no basic

savings/demand

Co., 65 Broadway,
members of the

New York City,

(I)v commercial

banking competitively breaking out into new areas;

quarters at the firm's New York;

To Admit Partner

For 1963 Scon by Dr. Nadler
Hanover

Exchanges. He will make his head¬

G.C.Haas Co.

Favorable Banking' Outlook:
Manufacturers

(365)

York

Stock

Exchange,

February 1 will admit William F.

deposits)

Bohher

outlook

overall

effect.

economist to Manufacturers Han-

r>it

lybo,

-n

i?i?

way,

J Hit66 &

T OTO1

Wallace!

Langley & Co., 115 Broad¬

New York City, members of

the New York Stock

be formed

the

°n Jan-

31, William X. Fleming,

member of the New York Stock

■

lace, member of the Exchange, to

Stock
as

Exchange, "will

of Feb.

securities

l,4o engage

business

active

individual

from

Jaffee, members of the Exchange, MALDEN, Mass.—Leon Shear is
and Morris Leverton. Mr. Jaffee conducting a securities business

N<*ArV#Yr1r and'Pariffo cina«st stoHr oartner in Treves & Comoanv.

•

just re—

Securities Comnanv. ; ^

Manufacturers

Hanover,
Nadler

Dr.,
fore-

A§ sees generally
improved bus'

A iness

AA ed

Marcus Nadler
„

activity

reflect-

being

time

and

der

mand

deposits, more business and
consumer loans! and higher bank
operating earnings. 1
will

Bankers

both the

expand

and the! services
they render, Dr. Nadler predicts.
of

types

loans

Entry lnto New .Fields

%*:•

"Banks will

increasingly engage

operations previously* handled

'pHmdrily by-non-rbank -financial
institutions, such

factoring and

financing; the °purchasejiand sale
of; uutonioti^e? and? officb ieqtiip- a lheht?''A BhMsA^irralstr^aA;

sively seek - ttiortgage loans,"" HPT 7' A
Nadler

says.A A

"They will widen their services
and

carefully scrutinize their

costs,"

tronic

adds.

"Modern

equipment

banks to

will

tical

elec¬
enable

perform; customer! serv¬

ices previously considered

impossible.

or even

imprac¬
Revenue

derived, from, services should con¬
tinue to grow,

making bank

ings less dependent

the

and

business

cycle

earn¬

swings of

interest

rates."

points out that the activities

of commercial banks -In. 1963^will
be influenced

by business condi*

tions, the government's fiscal

po¬

sition: and Federal' Reserve credit >• A

policies.

basic

.1 1

the

immediate

Nadler

in Re¬

anticipated

future."

neceissary

to meet the

credit requirements of their

tomers

without

reduce

Dr.

"banks should have

says,

the^reserves

change

credit policies is

serve

"Since

their

being

;

"Myson, the styrene monomer

cus¬

forced

short-ter ni

to
"

invest-

The

ments."
The

growth in time and savings

although-

nounced as in

;np£ as pro¬
1962, should be sub¬

stantial."

Basic Interest Rate

Dr.
basic
of

Nadler

does not

AAA

Change
foresee

savings

and

time

deposits.
"Some

it).

especially

those which find it difficult to invest

these

deposits

assets, 'may lower the :
rate," he says, "but this should be A
the exception than the rule."

Pointing out that the future

the familial

val-

manufacturers. Already well established in basic

whimsy aims at pointing
the

petrochemical business, for

uable. chemicals

are

second generation

is recovered
a

directly from the refinery stream and is

valuable

converted

product in the chemical market. But

by skilled processing to styrene

■r

AXZ

—

Sinclair

example: first generation—butane; seconda

synthetic rubber ingredient and another

product.

Sinclair Petrochemicals, Inc. concentrates on

chemicals, it is

now

focusing attention

sell¬

expansion?

of its intermediate chemical business.
A The

policy works: 1962 chemical sales rose sub¬

stantially

over

1961. As

members join Sinclair's

petrochemical family, such profitable progress willcontinue.

SINCLAIR SALUTES ALPHA CHI SIGMA FRATERNITY

for activities

of its

Sinclair,

30,000 members which advance chemistry as a science

and

profession. Founded in 1902, Alpha Chi Sigma functions

through

concludes:

courage career development

sharp increase in family formation

monomer

(as in the Sinclair-Koppers Chemical Company plant

depends on the " A
development of the economy, he " A

many

products of

petroleum processing. Ethyl benzene* for instance,

commercial banks

"Later in the Sixties the rather

higher value and usefulness.

ing large volume raw materials to end-product

suitable

earning
more

butadiene,

itself

institutions,

above), it is given

family: The offspring does her proud by
his popularity in synthetic rubber and
plastics citcles.

change in the present rates AA A

interest

is Ethyl Benzene? first

Another

nature of
No

mama

The

;be -^derate ih^DrAI^dier'sA ■ ;;
Opinion?-; In ' contrast, ! heAnotes, :'

deposits,

boasting

generation member of the Petrochemical

growth in demand deposits

will

"the

floor

broker..

' banking is as bright as

^ nation's economy."

Leverton, members of the partnership. Mr. Wallace has been

New- York

Exchange,

Feb. 1 will admit Edwin R. Wal¬

L6V6rtOH

living

Admit E.

on banking activity. The future of Exchange, will become a partner has been active as an individual from offices at. 113 Harvard St.,
that of the in J; Barth & Co., members of the floor broker. Mr. Leverton is a under the firm name of B. C.

rep0.

le ased

Langley toi;

To Admit Fleming °"icei•_at f B«*dway> V®.!! YorTk Forms B. C. Securities
City. Partners will be Wilton L.

increase in

rise

and

isJ-Barth & Co-

standards will, have their impact

Co., New York

The resulting

Trust production

over

partner in Gray & Co.

Jaffee &

tax reform could have d similar

Nadler, consulting

Marcus

Dr.

partnership.
t

for, hank- will provide a powerf
ing in 1963 is favorable, according to the economy. A ttjbr
The.

is.

long run future for banking as bright as the economy's*

office* 1 Wall Street, Mr. Fleming

than 70 collegiate and professional chapters to en¬

science vital to national progress.

;

SINCLAIR

OIL

CORPORATION

•

600

FIFTH

AVENUE

NEW

YORK

20, N. V.

(366)

The Commercial and Financial Chronicle

Thursday, 'January 24, 1963

Volume

197

Number 6232

The Commercial and Financial Chronicle

by' Mr. Carey, Chairman of the Commission, in the selfregulation approach.
1963

will

1962, to have
stocks

in the last half of

investment emphasis on quality listed

opposed to shareowner interest in unlisted and

issues.

new

undoubtedly continue

This

to have been

appears

the direction of

the

professional investor and the likelihood the public
interest to follow is quite evident to date.
These
the

subjects, to

factors

securities
an

that

industry will
greater

even

greater or lesser degree,

give

serve

extent.

industry make

our

growing economy

As the family

increase each year in larger
that

our

are some

to believe that the

reason

proportions, it is important
effort to continue the free

every

|1qw 0f:anLbpeii securities market,

;

President,Namm-Loeser's, Inc«
a

publicly-held

BERNARD E. PINCUS

Namm-Loeser's, Inc.,

of shareowners

»\¥,

operates

company,

of the nation's

one

largest chains of quality apparel stores
(14 in all)—Hughes Hatcher Suffrin, in Michigan, and

Hughes & Hatcher, in Pennsylvania.
have women's and boys'

All of these outlets

departments,

but derive most of their volume from

the

sale

men's

quality clothing.

and accessories.

been in
recent

tered

somewhat of

Although the men's suit field has
recession ^

Namm-Loeser's regis-

years,

sharp gains in both sales and

pretax
new

profits
in
1962, 'achieving
highs in both categories^ We are

optimistic that the
at least

factor

major

progress and future

two-fold
tive

will be ;
,V

new year

successful.

recent

our

prospects is the

Of continuing COmpeti-

One

strength

and V improving

nomic conditions in

our

Bernard

Pincus

eco¬

marketing areas,

Hughes Hatcher Suffrin for example, is the only large

quality menswear chain in metropolitan Detroit, Hence,
we are

especially favorable position to benefit from
in a row

what appears likely to be the second good year
for that

city's

be:further
stores in

automoM^ indusljra.^hia situation should
^h'anced;by 'the 1 planned addition of new

outlying,petroit.

The opening

,bw«!.

Hughes & Hatcher outlet in
Pittsburgh last year strengthened our already firm mar¬
keting position in that area. Further expansions are
of

new

contemplated.
While
some

discount

have

operations

impact

the better menswear business.

they have been trading

price alone

develop the "fashion touch," discount
or

two

year

the budget pie for sky

many

and
systems with Tenney environmental

simulators.
ities

Tenney-engineered facil¬

reproduce the extreme tempera¬

humidity,
radiation, launching and orbital

tures, vacuum, shocks,
solar

stresses of
space

our

atmosphere and outer

under controlled conditions.

space;

so,

Continued

net.

feel

that

our

improvement

program

can

assure

boundless

too, is the future of this

fast-growing field. Tenney Engineer¬
ing, with prime contractor capabili¬
ties, is meeting that need

...

creating

today, for tomorrow's reliability!
S For details

standard

custom-

designed reliability test equipment or
for

Financial Report,

write: Dept. C

ENGINEERING, INC. M

Springfield Road • Union, New Jersey
Union and Plainfield, New Jersey • Wilmington, North Carolina
•
South Gate, California

OLDEST AND LARGEST MANUFACTURER

tion

months.

The need to know is

1090

Plants:

saving lives, countless dollars, and

probing and missile development gets
bigger. So does the need for pre¬
testing space-bound components

have failed to

stores, with one

„

With something of. a.style revolution taking, shape,
-■

Every

Either because

exceptions, have not been particularly strong in

the quality soft goods field.
r

affected

adversely

aspects of retailing, they have had no particular

OF AEROSPACE AND ENVIRONMENTAL EQUIPMENT

on page

The Commercial and Financial Chronicle

(368)

Continued from page

slowdown

industry's

The

Product

:""'-v:/v'
2of recent years has been

this,

the year

juncture,

there

business

during

are

sary

■

early

somewhat

growth

the

ones

same

the

appear

years,

The

(B)

Consumer buying..:,
deficit

Federal

taxation

local

population

//><

/ incur

con¬

improved

Pyle

heavy contributors to this showing.
labor

contracts,

labor

new

contracts,

the

Federal

budget,

However,

Business capital expenditures may get some stimula¬
liberalized depreciation schedules in Federal

stimulus

the

Consumer

This,

amination.

appears

however,
that

well

subject

this,

the

move

ex¬

right

help stimulate the business

all operate./.High

and

credit

able to

sufficient

retain earnings fast enough
to finance it, without

large portion of hard-worked for equity.
Business

inventory

appear

to be under

away

great

stimu-1

■■■

Inflationary

the

United

States. balance

the

private

pace

business

and public demand

cordingly,
leyels.

interest

rates

Housing

appears to be somewhat

with multiple

comparable to 1962

dwellings becoming more, important' due,

4 to

higher land costs and the increasing propensity of a
large proportion of older people to live in rental dwell¬
ings near the center of City services. The
rapidly

ward

movement

in this

area

will

doubt

heavy family formation increases starting with the mid
1960's.
"
'
<
.

and

this appears

to be

This condition will continue to
exist

products

and

cost

their

activity

for

tend

seek

weaken

international

confidence

long
is

rates

'. §11

•.

was

for/Dictaphone Corporation

tors,

one

year
our

when important progress

was

enterprise.

Specifically,
instruments

foreign

with

maintained

other

line

use

negotiations/ But it

In
.

appears at

inventory accumulation
at least

the

earlier

cut

and

early in the
more

/upward

front,

Lorain

the

men

who

continued

will

mar¬

organizational

brought to

young

formance

proved

help

}mient. There is the
tax

the fore¬

insure

the

County, Ohio,

commu¬

Northern
appears to

Ohio,

and

fare well

particularly
in

This is the

the above

accelerated

era

1963.

measure

some

ever

would

change, and the

increased

consumer

present question of how such

affect

our

international

balance
an

/federal deficit. There is general agreement
;.

tant economic risks in
offsetting increase in

itures,

especially

periencing
balance fo

there

are a

with the federal

deficit

payments problem.

the need

number of imporan

reduction in expendbudget

and
•;

the

large

large tax. reduction without

revenues or a

substantial

even

also

question of the possible inflationary impact of

pace

buy¬

stimulation of capital invest-

some

for tax reform. However,

of our technology
Autos, chemical, technical instru¬
Lloyd M. Powell
added: to
the
rapidly
increasing
ments and
specialties appear favorable, with
steel, heavy
ability of business to retain more
equipment and others,
average to above.
..knowledge and apply it with profit, proves the point.
environment for

„

.larger deficit in the federal budget/ There is

nications field.
area

larger federal deficit

payments through the psychological impact of

per¬

leadership of Dictaphone

Corporation in the recorded

requirement.

all,

have

pressure on interest rates.

kets.

Additionally,

with

large reduction in corporate and personal income

ing and possibly to

changes

signifi¬

our

ma¬

bloc mostly through
rapidly rising wage scale as
well as improved
manufacturing methods. This should

only help some of our local Companies but will also
improve the exports of some of our
industries. This,
however, will take time and, in the
meantime, reviewing
of our
foreign expenditures by our Government should

be expected.

months <pf 1963 interest rates
change. A substantial tax

new year,

taxes would also lead to

not

this point that

can

government borrowing, would tend to put some

educational

government

pre-

will probably experience little

chines and facsimile devices for the

pean

/industry' with respect/tb:'^a possible reopehing^ o^

Country. There have been some moves
beneficial to increased standards
of living in the Euro¬

and

can

an over-ail slight gaih ; comparedwith 1962/
Inventory investment is again the. least-readily predict¬
able, and much will depend on developments in the steel

recording

na¬

probable.

dictation

introduced \ along

products for

diversified

below that of this

was

line of

measured by gross

a slight increase.; Capital spend¬
ing is expected to decline moderately in the first quarter,
but should recover for the remainder, of the year to

made in all phases

new

expansion of the over-all

some

presumption in favor of

cant

was

national v

gross

,dieted with considerably less certainty, however, and the
possibility does exist that some contraction may develop
in this sector. However, there seems a somewhat greater

dollar.

time, it

the

tional /product, Seems,
Business
spending

of significant change
same

modest pace, stimulated

85%

economy,

Herbert V. Prochnow

Very possibly higher

and at the

the

move

dence ; to lead to the. expectation of
a cbntraction in either of these sec/

President, Dictaphone Corporation

.The year just completed

/These' two major sectors accoimt for.

the

J! || f: i |

in; taxes,

expected

//product/ arid :* isince there is ho evi¬

and

LLOYD M. POWELL £

^ment':spending,r. both on the federal
and on the state and local levels, and'
;
by / increased
consumer
buying.

-\.v about

tighter control of the money supply
would be the appropriate companions of a tax reduction.

reduction

;

restrictive monetary policy.

particularly those

•

aggressive fiscal action,
the Federal Reserve
may find it desirable to adopt a

interest

—

can

upward at

higher-

the

/largely by the expansion of goverri-

fupds would rise. Ac¬

would

possible

economy

during'

accelerates,

hot be

Without considering the effects of
a

deficit, accompanied by a faster
growth, could arouse inflationary forces

repetition for 1963.

manufacture

Dictaphone looks at

measures.

situation.

payments

Foreign trade and balance payments have been
running
against

and

up¬

require the

fiscal policies to be pursued

relating to tax

An increased Federal

Therefore, in the face of

in reality or their fears could
change this quite rapidly
but without this there
appears to be little on the plus side.

ac¬

model introduc¬

new

uncertain at this point if one could know the nature of
the

increases;

and

business

inventory on the part of
Impending strikes, war or inflation

pre¬

Changeover costs,

The business outlook for 1963 would perhaps

position in the banking system.
monetary policy will also continue to take

rate of economic

whole.

pressures, it is reasonable

reserve

Productive capacities, are so
near to the demand probabilities that there is no
urgency
to add to the carrying cost-of
a

down.

President, The First National Bank of Chicago,
Chicago, 111.

Later in the year,
however, new influences may appear.
If a tax cut is enacted and the Federal deficit

lus to change at this time.

telephone

HERBERT V. FROCHNOW

strong advance in business and

to support

signing

regular

slightly higher than the

were

full advantage of this opportunity.
1963 with considerable enthusiasm.

without strigency in the money market. Con¬
sequently, the general level of interest rates .should be
relatively stable, assuming that there is no deterioration

are needed

acceptable to the buying public but the Company has

not been

over

now behind us.
The market
is receptive for devices which reduce office communiw
catiori costs and we were never better prepared to take

ment

com¬

corporate taxes

Company's products

by Datafax

the early part of 1963 should be sufficient to accommodate
the credit demands of business,
consumers, and govern¬

real burden to the smaller Companies, as well as
a.
difficult one to cope with by the larger ones. This is
a

The sources of funds which will be available

are a

particularly true when

transmitted

ficiently high to discourage the flow of short-term capital
to foreign money centers.

in that of improving the profit motive as a
stimulant for, future business planning.
There are other areas that
may be explored in the

munity in which

States balance of payments
deficit, the Federal
Reserve, in cooperation with the Treasury, has been act¬
ing to maintain short-term interest, rates at a level suf¬

direction

^revision of tax laws to

recording channels \ on a /thin one?*
quarter inch tape was/ developed principally for use in
monitoring air traffic. Our marketing, of Datafax: fac¬

United

business capital

in school and coUege classrooms. -A new
;

use

But these problems are

cognizance of international considerations/In view of the

There is emphasis being given to the
reduction in Federal Income taxes as a

expenditures.

tion, all expensed during the year, have had their effect
on profit.

to expect that the Federal Reserve will continue to
pursue a moderately easy monetary policy characterized
by a net free

tion from

taxation.

beforevofferedi^

equipment. ~

upswing, is benefiting further from the re¬
depreciation allowances and the investment tax

the emergence of

Income

majdr

the/ Timer

Loewy/William,

ha^ ativahces;nWer

companied by other problems of

credit. In the absence of

(A) Business Capital Expenditures*

importance of

machines,

the"" Raymond

brganization,

While orders taken

On the supply side, personal savings are currently at
high rate, and corporate cash flow from retained earn¬

vised

compared with the year 1962:

(D) Foreign Trade.

dictation

62 business

The following and remaining components of Gross
National Product appear to have/a no-change to a de¬

•

the first in

year we announced

ceding year, profits

ings and depreciation, which improved during the 1961-

(B) Inventories.

lines.

least

that

when

images

crease

ex-/

recorder/ with nine

Frederic A. Potts^

fringe benefits including protective floors or insurance

personal incomes will not fall under certain levels.

This development is one

simile systems was stimulated with the. 'introduction of
the Bell Company's Dataphone which enables

and another sizable deficit is probable
a tax reduction would

deficit

temporarily.

The latter stemming

esculator

the

increase

personal income levels in general are
from

would

in fiscal 1964. The enactment of
H. G.

sharp increase over. the; record •
/

office

duced for
,

deficit officially estimated at $7.8 billion in the

the

produced I by our British

important product- introductions were
developments in educational and recording; machines*
During the year a new Language Laboratory was intro¬

how¬

demand

new,
—

Added to these?

Further

business ;

the a assistance'

in such

and

inventories

credit

line

Snaith

and the advances

for

the

1963 fiscal year,

increased

and

demands

that

machine

Master/7. This unit designed by/out engineering group

encouraging.

outlook

year ago.

with

will continue to increase. The Federal Government will

higher

increased

through

spending

sumer

/ 1

spending,

and

/ Later in the

during the early part of
this year; Additional demand, of course/ will emanate
from the government sector. State and local indebtedness

State and Local spending.

(C)

moderate

(A) Federal Government spending.
<

quarter,

com¬

improving position in international "sales

our

which last year showed

the

new

private enterprise will be relatively

limited.

economy,

were

suggest

prominently figured in

first

introduced

recording

an<|

throughout the world.

ample of

retail sales in the latter months

of 1962

in¬

continuation

Product

and

all,
1963,.

of consumer demand,

into the

improvement in: Gro§s

fluenced

could inject renewed strength

ever,

%■ The three major contributors to
National

the

probably will be

correct

gradual

are

business

subsidiary, and which, in the short time since its intro¬
duction, has won wide acceptance in the United States

1962

permanent-battery

Travel-Master, designed

uncertainties

depends

future success

our

During the first part of

plant. and
expected to decline
new

additions

net

any

months

We believe that

ability to fill the needs for improved recorded

book-size,

that the economy will

appears

improve its tools of communication just

munity demands.

problems.

Thursday, January 24, 1963

communication that the rapidly changing

main¬

POTTS

significantly/ if

the

equipment

ployment problems of our economy.
the

of payment

number of

picture, and it

expand

Expenditures

it will lag behind the growth pattern neces¬
the present unem-f

appearances

should

market cannot be divprced
from the outlook for general business activity. At this

good year but from all

rates

Philadelphia, Pa.

balance that will make

interest

bond

The outlook for the money

opinion, will reflect rather closely f
just passed. There will be some improvement
1963, in

influences

President, The Philadelphia National Bank;

The year

major

tax cuts may alter this some if they become a

FREDERIC

President, The Central Bank Company, Lorain, Ohio

being

keep pace, and therein lies the opportunity for our

company.

the

upon our

/not

PYLEftI§;|||t|l

level

Business must

National

Gross

tained stable to higher and heavily influenced by Gov¬

classifications of

ernment deficit and balance

shift to lighter,
brighter colors, especially light greys and iridescent
shadings. This style trend will be augmented by the
accelerated popularity of two-button clothing. One-but¬
ton suits, an even more extreme departure, will also
account for some newness in the look of men's apparel.
Accompanying these fashion changes wiif>be an in¬
creasing popularity of "-plain-front trousers, heretofore
mainly to natural-shoulder styling.

field appear to be comparable

our

four

(Sharp

coming Spring, we expect a decided

confined

the

lower

reality.)

principally to the persistent appeal of dark, drab
suits of conservative cut and three-button design. For
due

this

with

1962

keeping interest rates and money demand rather even.

than has been the case in a number

the next 12 months

of years.

considerably better over

clothing sales should be

men's

Demand for loans in

with

already
a

ex¬

stubborn

Number 6232

Volume 197

WILLIAM J.

...

The

Commercial and Financial Chronicle

HENRY

QUINN
and

iPresident,•• Chicago, Milwaukee, St. Paul

REICHHOLD

President, ReiehholdChemicals, Inc.

Development of

Pacific Railroad Company

The

railroads, which traditionally benefit from any
improvement in the general economy, can be expected
to

share«in

the

*•

the price attrition in the chemical in¬

products in order to continue the rapid growth of the
past decade.

One of the

principal factors under-

■Bp

high level of production in the autoindustry, which is expected
to continue. In addition to its stim¬

ulating effect

the economy as a

'SB

lives

■El,

H lying the outlo k for busines is the
other

and

Milwaukee Road

the

cance

the

engaged

railroads

transporting of automobiles in multi-

general," however, the railroad
industry's attitude of confidence reIn

garding

Wiiiiam J.Quinn

largely

will witness

year ahead is based
the expectation that 1963

the

corrective action with regard to the

some

industry's 'most troublesome and persistent problems.
The most important avenue to

difficulties

solution of railroad

high
by

legislation, and hopes are

through

in fce industry that long-awaited results may come

this route during 1963.
These

that President Kennedy

will re-submit to Congress in

January his proposed overhaul of federal transportation
The recommendations, as made to the last Con¬

laws.

federal control over
rates, which would be of large benefit to the railroads;
imposition of federal user charges on barge lines and
include

gress,

reduction

the

other important changes.

airlines; and

of the

burdens of the railroad industry-^feather-

onerous

bedding, which represents
railroads cf

brought to

can be

■'

actions will give

These

annually. It is hoped

than $600 million

that;this issue

needless expenditure by the

an equitable conclusion.
j *'•. '

impetus to the advancements

adopting to better meet
the requirements of shippers.
The Milwaukee Road, in
its continuing program to keep abreast of the needs of

the railroads have been steadily

the

public has set in motion

for the
It

coming

has

number of improvements

year,

budgeted

million for rolling

than $19 xk

during 1963.

stock and improvements to fixed properties

This includes

outlay of approximately $5

million for

stepped-up program of major repairs to 3,000 of its

New

to put them

cars

in top condition.

equipment to be purchased will include 16 turbo-

diesel locomotives for road haul and heavy

charged

only

not
this

only

has been

one

Americans
the

world.

creating

existed

SgBk

only

didn't

ISB M mm
SBBHAJHB
H. H. Reichhold

),{

*or more t^ian 40 %

now

°f

account

tl:le total

volume of sales, while they weren't
even in the product line-up 25 years
a&°*

In order to assure that

plastics and

polymers, the fastest-growing part of our business, con¬
tinue to

ing

expand at

accelerated rate, we are construct¬

$1 million plastics and polymer research laboratory

in .Sterling

This move is the first
step in the strengthened coordination of our research
Forest, New York,

new

located in various domestic plants, with the

ultimate goal

of strengthening of all our research and

facilities,

number

Chemicals has entered the
new

materials, including

phenolic-silicone resin'= that can successfully withstand
for short
periods the 5,000-degree-plus temperatures
in the missile industry.

experienced

Other significant

a melamine resin that produces an
hard surface on dinnerware, table and
counter tops, furniture and other products, and a styreneacrylic ester copolymer and a rosin-maleic adduct that
new

products are

unparalleled

polishes.

longer-wearing home and. industrial floor
'

We also constructed a new

plant at White City, Oregon,

during the year to manufacture protein: adhesives and

resins for the plywood, particle board
Oregon and northern California.
This is just another example of the' flexibility .we have
developed to keep pace with the vibrant: and ;,grow|pg
phenolic and

chemical industry.

We fully expect that

1962 sales will exceed by 10%

industry. The very competition that is causing the in¬

Frank

with

new

and better products. This, of course, can

Americans and other
people around the world who use these products. And
from this the people of the world—the chemical industry
included—cannot help hut benefit.
result

Fuget Sound

better

lives for

Reichel

Expenditures for

cars.

will total

before in their history, and more
rayon staple was sold

during the
also

year than ever before. Rayon filament was
produced and sold at record highs as were acetate

fibers. All of these upward sales trends
continue

fibers

into

sales

Avisco's

American

the

were
new

diesel locomotives will be re-powered
ber of gondola, refrigerator, and

will be rebuilt,

cars

devices.

repaired,

second

Viscose's

highest

large

the

laying df
and

replacement

new

generation rayon fibers—particularly Avril

renewal

and

true

for

apparel, domestic

and

These

fibers

industrial
tic

uses.

new

home
are

bridges,

because of their performance features,

Avisco cellophane sales during 1962 were maintained
at

record

near

levels.

The

volume

signaling installations, and

Indications

are
that 1963
sales can be realistically
projected above current levels, particularly if new films
now undergoing extensive field evaluations
develop as

expected.
First introduced to American industry
two

and

cord

successes

that

half

years

ago,

American

for

the

1961

double ofice

and

the

coming

program.

By the

end

late in

1961

had increased;

impossible to obtain in

activities, continued to find widespread interest among
pharmaceutical • and cosmetic manufacturers. A
Continued

Redevelopment

of^ 1962,

The

Milwaukee Road

.^vk-c

l*;Vy> #>•;

greatly, with the computers

short period of time.

climaxed its sales control

pro-

HELPING TO REBUILD CITIES ACROSS
:

THE UNITED':STATES AND CANADA

'gram in 1962 through the appointment of nine regional
traffic managers with headquarters in

kee,' Minneapolis,
New

Seattle,

York, St. Louis, and Detroit.

direct

supervision

States

and

7
a

•

Canada.

over

•

sales
,

San

The Milwaukee Road shares with

Francisco,

These officers have

offices
-

Subsidiaries and Affiliates

Chicago, Milwau¬

Kansas City,

the

United

Gulf States Land & Industries, Inc,

Webb & Knapp

'international

Zeckendorf Property Corp.

Recreation Corp.

Roosevelt Field Inc.

(Canada) Ltd.

Zeckendorf Hotels Corp.

many

other railroads

feeling of confidence that 1963 wil be marked by

some

improvement in carloadings and in the regulatory cli¬
mate

which the

industry operates. '... \

.i V;

food,

installed

producing quantities of valuable! information formerly

expected

microcrystalline cellulose, American Viscose's
product discovered through cellulosic research

data processing

Avicel
newest

freight classification yard at Bensenville, 111.,

utilization of the IBM 7070 -andy 1'40Fcomputers

year

more.

During 1962 the Milwaukee Road accelerated its elec¬
tronic

Corp.'s

Avistrap, achieved spectacular
during 1962. Sales volume more than doubled

handling of Flexi-Van and conventional piggy¬

back traffic.

approximately

Viscose

strapping,

track facilities adjacent to the Milwaukee Road's Chi¬
cago area

cellophahe film

to lead
all 'other transparent flexible ^packaging materials. And

major enlargement of

^old, largely^tojhe packaging industry, continued

Urban

their

functional advantages and the wide variation of aesthetic
fabric appeals they make possible.

the

Pioneers

furnishings, and

meeting enthusias¬

acceptance by mills, converters, manufacturers and

consumers

are
use

in both blends and 100% fabric constructions. This holds

num¬

and relay rail, additional communication

acetate

history.

rayon—developed during the past decade
proving themselves to be ideal fibers for all areas of

Improvements to fixed properties scheduled for 1963
include

and

company

and Avron

equipped with loading
-

rayon

other types of freight

and

expected to

are

1963.

ldcomotiyes arid cacrs

new

jointly

Timber

industry were at peak levels
during 1962. Rayon staple sales were higher than ever

million; In addition,, 30 freight

than $4%

Sales of the entire rayon and ace¬

switching service, 50 insulated box cars, and 50 covered
hopper

Pulp

trans-

tate

dustry's price attrition is also forcing us to keep coming
only

uses

and

Co., operated at capacity during 1962
and production and shipments were

rayon

Competition will again be strong during 1963, but this
is an indication of a healthy economy and a dynamic

expanded

Ketchikan Pulp Co., owned

with

the record $102

million of last year. Reichhold is con¬
tinually developing new products in order to remain
competitive in the chemical field.

and

polypropylene resins

urea

and hardboard mills in

new

Hnot com ensurate with volume of
its

1962

Reichhold

1962,

with

ment

development facilities., ,\
market

Corp., owned jointly with
Co., continued its extensive
marketing efforts in the develop¬
Sun Oil

dream

At Reichhold Chemicals, for ex-

HHTVI

in the

Avisun

new

few short years ago.

ample, plastic materials

years

but

by opening
even

of the most successful

much better than during
1961, were

part of the daily

throughout

...markets that

40 and 50 foot box

1962

history of American Viscose Corp. from the
standpoint
of total poundage of
product shipped. Selling prices are
still depressed,
however, so that actual earnings, though

will result in

Leverage has been applied to' the easing Of another

the chemical industry

and better products and

During

hopes were encouraged by the announcement

of
do

can

whole, activity; in the automotive in¬

dustry has immediate traffic signifi¬

to become more
people

motive

•

American Viscose Corporation

products for new, markets is the

dustry. We must increase the per capita use of chemical

general

of business

strengthening

which is anticipated for 1963.

new

best solution to

DR. FRANK H. REICHEL
Chairman of the .Board and Chief Executive Officer

;

,7- *

page

The Commercial and Financial Chronicle

(370)

Continued from page

this

banking system

the

figure,

maintained

has

Thursday, January 24, 1963

City banks average approximately 60%. In spite

York

;

RHOADES

& Chemical Corporation
; comfortable
degree of liquidity due to the monetary
The year 1962 brought its full share of change and
1962 and the exciting new
policies that have been followed consistently by the
product was under constant study and test-marketing
progress to the growing aluminum industry of the United
Federal Reserve, going all the way back to the spring
surveillance by potential and actual customers.
States. It will be remembered as a year of exceptional
of 1960. These have included important operations of
Late in 1962, Asahi Chemical Industry Co., Ltd., of
competitive activity among domestic producers and fab¬
the Open Market Committee, reductions in the discount
Tokyo was appointed exclusive sales agent for the dis¬
ricators as well as
one
of severe
,'
rate
and
reductions in the reserve requirements of
tribution of Avicel in Japan and other Far East areas.
competition from aluminum prod¬
member banks, all of which have combined to add a
Avicel's non-caloric and functional advantages, as well
ucts imported into the United States
J tremendous amount of reserves to the banking system //
as its uses in such areas as tableting, colloidal systems
1
/ and enable it to absorb with relative ease the increased ;/ and sold below market prices.
and cellulose derivatives, have created world-wide in¬
The aluminum industry's total

exploration and development pro¬

concentrated market

in effect during

was

gram

Kaiser Aluminum

President,

demand for loans already referred to.

terest in the product.

Viscose's, long

American

of research

program

range

There is
,

in the

indication

'/•//.p/%//p\/

yet of any material change

shipments

during

products

all

1962 will show an all-time

fairly liberal credit policy followed by the Fed¬

high level

gratifying results
eral Reserve for domestic purposes, at the same time ;/ of/approximately 5.5 biilion pounds
part to a realignment
giving recognition to the continuing problem of our-;/ (2,750,000 tons). This represents an
of duties which resulted in more successful activity
increase, including exports of about
imbalance of international payments.
Meanwhile, in¬
than ever before, and partly to new insights into the
dividual savings have continued to accumulate at a good /1 15% over the preceding year. Ship¬
molecular structure of cellulose. It can be expected that ,
rate.
Also prices have remained fairly constant, so that / ments to the domestic
market in
due to this increased activity, new and improved films
it has hot been necessary to finance any increase in the * 1962 /also ireached an all-time high
and fibers will be announced during 1963.
level with an advance of about 14%
price level.
Even the loss of gold, which ordinarily
Intensive activity continued in three major area£:
D. A. Rhoades
over 1961.
*
would put some strain on the credit situation, has been
basic, exploratory and long range studies of new products
more than offset by the open market, operations of the
Final figures for 1962 will also
in new fields; applied research in fiber development,
show a new record production level for the- industry of
monetary authorities.
and applied research in the development of packaging
If I am correct in my assumption that any improve¬
well Over two million tons of primary aluminum, rep¬
films. Through the work;" of these American .Viscose
ment in general business over the next 12'months will
resenting an increase, of approximately; 10% over the
teams, the development of the new generation fibers
be of modest proportions, I believe I can predict with
previous year. The industry's production rate for the
such as Avril and Avron, stronger Tyrex rayon tire cords
year is estimated at- approximately 85% of : the ; total
§fsome assurance that bank funds will be readily Avail¬
and yarns, Avistrap cord strapping, new resin-coated
able to finance such an improvement without putting
installed capacity of 2,483,750 tons.
<
films
with improved moisture-proof properties
and
an important strain on the monetary system.
Supported, by intensive promotional and market de¬
Among
laminated films, and new products such as Avicel were
the dark clouds which continue to
development produced especially

and

during the year. This was due in

zon

current

outlook

in general

conditions

is good.
in

payments and the psychological effects of both this and

transportation, durable, goods,, packaging (and electrical
industries.

expectation

further

better

our

deficits

domestic

our

deal with these matters

remain

important

Rising costs will continue to be a
I

meeting these will probably be

and

this

challengesjLiccessfully should ex*/
rise^n profits pver 1962/

"Sing

recent

sad

Location

Colonial

expects

•,r-y

The

will be

tional'

With

families.

American

customers.

£rbm 66.5 in

"•

ance'in

<;f.

-review of the

1962

the months

/ It's

1962

are

aluminum
set

record

new

Overcapacity

Zvrtln

Reynolds, Jr.

in'the

and

use

United States will

Domestic

1962.

consumption

will

tons and the previous 1959 record of 2,220,500

further rise

1962.

over

This represents an increase

tons.

Chemical

President,
,

The

York

weathered

well for

the months
tical

series

crises"

"confidence

the

during 1962
stability in

conclusion,

Washington

belief

which

the

desirability

rather

reduction, rather than
spending,

should

nomic

solution of

range

and

performance

problem

and

appears

prospect of

early

been

country

cut

Total
States

and,

loans
have

all

risen

Dec.

billion compared

12,

1962,

of total

loans

/ "

the

United

past

year,

approximately $136
on

Dec, 27,

1961

are

has

increased at

aluminum.

The

automobile

We have

large volume markets.

capacity has had its effect

the

recent

changes,

prices

shaken down to their bottom

Another

eating

appear

level.

have

excess

capacity.

Business

quite good

was

tively slow
fourth.
a

deposits in the large New

During

quarter, it picked

one

the

industry's growth

years

was

the

shipping at

every reason

continue

ahead.

sharply in

capability.

good economy, there is

th.e months and

period, the industry

rate not much below its total

Given

third

very

will

rate

100%

the" first

facility to be built by any U. S. aluminum

first

the

Common

aluminum

Australia, which is
Industries

Market.
from

poured

was

Pty.

Goraise

owned principally by

Ltd.

This

expansion will
the

original

12,000 to 35,000 long tons; further expansion is, under
r

to increase capacity to 52,000 long tons by mid-1963.

Kaiser Aluminum holds

50%

interest in Comalco In¬

dustries.

■"•/,.//"/ .'.//

Our

Chemical. Division is pro¬

recently established

i ducing and marketing;
cherr.ical products.
—aluminum

soda

caustic

commercial

number of basic

These include three fluorcchemicals

The Division valso produces chlorine and

and

Shipments
will

fluoride, anhydrous hydrogen fluoride and

special alumina
Kaiser

the

roughly parallel

products.

Refractories

those

Refractories volume is largely

of the

dependent

Division
previous
upon

for

year.

the op¬

erating level of the nation's steel, industry, the principal
an

advanced

work in

new

types of basic refractory products.

Intensive programs

ciencies
domestic

were

to further improve operating effi¬
during 1962 throughout the 32

continued

plants of Kaiser Aluminum, as well as at all

locations.

effort

ating

margins

the

recently completed

products facility to carry out development

office

to expect

good

This

market for refractories. The Division

encouraging note is that growing demand is

away

to-be operated: by

reduction facilities at the Bell Bay plant in Tas¬

1962

aluminum prices.

now

inter¬

facilities.

plans were announced for the
$10,000,000 aluminum fabricating plant at

fluorocarbons.

industry is basically sound.

our

marketing

the Bell Bay plant's annual capacity from

way

notable examples of increasing accep¬

costs, and find

With

approximately 9%. The present

total

of aluminum

new

malco

at ra/oauch faster ;

in 1962's first and second quarters, and after a compara¬

throughout

stood

sys¬

;

banks

with $125 billion

increase of $11 billion
ratios

of business activity

•/-/

commercial

steadily

the

support

productive facilities of the
/

forecasts

upon

December
a

November

mania,

result of

working hard to improve products and processes,

Excess

the ability of the commercial banking

tem to finance it.

expansion of

producer within the European

fabricated /

William S. Renchard

evidence

resurgence

such magnitude as to tax the

Use

application

The aluminum

rate

clear

eco¬

economic growth. On the other hand,
there

based

years

industry is another bright spot.

the- longer

lagging

our

cans

and

tances

unemployment

our

and

cars

effective stimulus to maximum

imports

much faster pace than that of other major metals. Freight

Federal

provide the

and

plant capacity is

excess

robust.

have been

tax

that

before,

poufids

been completed to build and operate

subsidiary / company.

aluminum

pecially in the heavy goods sector, aluminum's advances

the

discovery

year

billion

available in 1967 from the Volta River hy¬
project.

owned

same

Despite the disappointing growth of the economy, es¬

corporate profits, and, secondly,
belated

the

from

that the general economy .would. gPQW
Tate than has been the case.

Administration's

the

In the

one

and

Koblenz in West Germany,

aluminum products were up 33% to 52,000 tons.

from

reassurances

74% to 42,000 tons.

were up

yedr. The year's record

100,000-ton primary aluminum reduction plant using

Early

exports of primary

period, imports of primary metal were 232,000 tons,
68%

droelectric

18% to 116,000 tons, and exports of

building program in recent

two im¬

are

were

fabricated metal

The industry's

sup¬

elements.

psychological

aluminum

underlying

economy,

First, the strong
firm

immediately ahead. Added to various statis¬

strength of the

portant

continuation of relative

measures

port such

general business picture successfully

1962,

than

manufacturing

building of

ing the first nine months of

has- ever

power to be

Exports and imports increased over 1961 levels. Dur¬
Co.,

Trust

City
'

fact that the

augurs

New York

Bank

New
■•f

RENCHARD

one

primary

company

^Through the Inter national Division and various foreign
affiliates, we. now participate in aluminum; producing
arid fabricating operations In Australia,''Argentina, Vene¬
zuela,* India, England/ Sweden, South: .Africa and Spain.
In Ghana, West Africa, where: Kaiser Aluminum }is
principal' owner of / Volta: Aluminum': Company Ltd.,

of about 17% from the

1961 total.

WILLIAM

U; S.

year.

/ arrangements have

2,550,000 tons, compared with the 1961 figure

show

sold

and
one

; national /

economy to expand at

/the expected rate, ' /i '
spite M these problems,

R. S.

plant

560,000/tons

.Only one other

We have been active in the

that the industry has

high

pridUcfiOn 'for the

marks; the first ^time "that' Kaiser*' Aluminum -has

metal in

ahead.

\ failure of the

approximately

produced

the outlook for

of 2,187,000

barring the

company,

which

Corporation,

maintained * a relatively

also

'produced more aluminum in

; also

They/have stemmed from two basic *
problems:

% %
% '%
%
%

will

^aluminum.

;

appropriate to

metal, has

nage

year

cars—but his

total about

own

pound///

per

Chemical

production rate; throughout l1962/'X)dr

re-

unforeseen, sales

our

of/the year's intensive; cbmpetifiop.
of aluminum ingot was

of 70 pounds, ;

Industry's /perform-

and to

news

—

expected to continue to increase and profits should

Aluminum

Kaiser

had its troubles in the past few years.

v.:..

„

should remain relatively stable.

Food prices

competition,

trading stamps' and other special promotional plans will
continue to be pushed as k means of getting pew. busi¬
and holding present

there is nothing

lessening

in 1963 models is

use

lyrical summation

time^to indicate that it will replace" the conven¬
supermarket as-the major supplier of food to <

at this

ness

replacement for older

increasing factor during the year, but

alumiZ

the; future- of

pohedfto he an average
up

All will be in

a/ result

Early in December the price
reduced from 24 to 22 V2 cents

newspaper

the automobile

aluminum

- new

expected to/ become

may

num

Sstores. p • ■ ; /?§•/'•

house

discount

for

songs

of.

writing about the future of alumi- >

newsman was

con-;

territory,- and some

present

them

Carl J. Reith

open

units during the year.
our

will

stores

new

industry-wide reductions were made in

prices .of aluminum and aluminum prod¬

during 1961 produced the industry's second largest' ton¬

The

carefully "scrutinized.

admonition

'•

perienceia*
tinue

ucts

a num¬

the

num...

meet

Companies which

with

agree

writer:

challenge.

greatest

management's

the published

REYNOLDS, JR.

President, Reynolds Metals Company.

major factor in the retail food field

■

markets,

applications.

new

A number of

relatively stable.

including

bnd

the cryogenics
alu/ninum' in larger quantities fpr

specialized

field/began to use

foreseeable future.

than in others but over-all business
should

ber

credit standpoint in the immediately

money and

Increased usage of aluminum was also noted

in the nation's defense and space programs,

firm way and, if so, I anticipate no great problems

from

,u-

will

areas

some

consumption by the prin¬

cipal aluminum markets—the^ building "and construction,

budget. It is essential that

year

Economic

the

in 1962 in further expanding

international

the

;;

President, Colonial Stores Incorporated

should be another period .of intense
competition in the retail food business, but despite this,

The

the possibility of a further loss of gold to for¬

eigners because of the imbalance in

CARL J. REITH
,

are.

velopment effort, the industry made continued progress

the hori-

appear on

made possible.

offset

rising

costs

These
as

far

programs
as

resulting
of

represent

sustained

possible the squeeze in oper¬

labor,

from price competition and
materials and services. We

Volume

197

Number

6232

The Commercial and Financial Chronicle

expect

Consumer Can't

1962

our

to be the

net

look

during

markets.

continuing

1963

for

both

the

business

capital

5 (producers*

find

Because

varied

nature,

the

components

total

1963

THOMAS RICE

Atlantic

myself

for

Coast

ups

and

down$- within.. jthe specific * cate-* £
gQTies, The total of this invest-,

is the
tic

•;

; added.

during'T962,'bu S i ne s'S

;

itself* by;

y^ar; with inventory
into

tWo

.use-up being

accumulations,

but:

^mode^i^ci^^eijpfJ

;•

;

1962

.•

that

fob f§82;;-

fhyrmerVi

climate

com-

of - it.R-

own.

of the

result

mmm

Triist Co.,
^-1

resiliency

crisis; it moved ahead to - wind
:
;

tyill

see

great

our

iii^ most,

toward iekpansion
of the nation's

has" been ^ sd 1

While

the year

.up

fro

We*feel that 1963

continuation of the trend

: ;

been. dissap-

have

pointed in, the lack of vigor in the
economy's

rate

impressed

with

additional^ 10^15 % at'-constant-;

against a
eign

prices; Private' rion-farm housihg
should add about; $22-23; pillion

growth,

are

when

viewed

backdrop pi Increased for¬

competitions-temporary

satia-

^tiqn;::bTJ&enahn*d,;fo^

and housing and excess capacity in

to' this componeht.^

most major

final component blG* N: P./
the- net i balance of the

Banks

estport of goods and services

contribute

amount

cings

the higher interest rates and have made the

ex-'

banks

erting tremendous efforts to im¬

these funds.

commercial

Largely, by relying

its export position, the re¬
ceiving countries also are-engag- *
ing in such activities and- the-.

results.

influence of Common -Market and :

both the

trade

association

will make it

The consumer arid his spending

activities

the main forces of growth.

difficult to sell

about

118

the end of 1962 to 119 a year

may

much

lower.

by business

later.

economy

can

the

will

Like-

find

American

million

new

jobs

year,

bounding growth in the
can

are

necessary

mal

increase

expected. These

to absorb
in

the

Continued

the

labor
on

no:/<

munities

friendly to industry; and convenient rail and highway
transportation.
How about you? Coast Line knows and
Coastal 6. If your plant or warehouse

region,

we can

confidence.

serves the entire Southeast
belongs in this fast-growing
spot the right location for you. All inquiries held in
*

equipment spending

Direct inquiries to:

depreciation schedules and

new

always

many

imponderables

The question of

such

measure

are

Jacksonville, Florida

ap¬

tax cut is being widely dis-

to the degree and timing of

our

immediate stimulus to

But

problems

far from

reduction in

and

clear-cut.
tax

consumer
we

Obviously,

burden

must

would

ATLANTIC

COAST LINE

any

provide

RAILROAD

spending and gross

remember

that

R. P. Jobb, Assistant Vice President
Department B-113
Atlantic Co^st Line Railroad

large

.deficits incurred during times of
high rates of economic

nor-

the other hand will probably fall short

private investment.

."activity

force

ex¬

positive stimulus

Government spending,

Whereas plant and

stimulated

substantial

jobs

page

levels.

C cussed, -and the answers

economy r;
new

National Product.

consumption

yarn

tax credits, the absence of some abnormal influence, such
as! the 1962 Steel, strike threat, will result in lower in¬
ventory appropriations.
As

approximately.;

proach.

:•

tWo

1962

employment-unemployment situa¬
And,; unless

Gross

local, state and Federal combined, will increase and add
expansionary force to the economy. Spending

wise, there is little hope that there

tion.

available,

ex¬

further

will be much improvement in the

the

and one of

With disposable income

panding and credit readily

fact, during much of 1963, the

level

economy

penditures cdn be expected to provide

Industrial production will prob¬
ably show little improvement in

habits continue to be

stabilizing element of the

the professional skills of Coast Line's in-

large acreage tract with a waste disposal
plant; a smaller site for a tufted carpet plant; a
ready supply pf capable workers at a reasonable wage rate; com¬
stream for

abroad.

1963, moving from

Requirements included

ter marked improvement in 1963 over 1962'Sisatisfactory

prove

dustrial developed.

banking industry Will regis¬

We <expect the

Bennettsville, S. C.

How did Mohasco Industries, makers of Mohawk
and Alexander
Smith carpeting, pick their two new South
Carolina plant sites?

competitive with other thrift institutions for

Here's how Coast Line helped Mohasco find
two
locations in Billon and

new

savings deposits appear tb- haye^^ justified

.sive increases in

1963.

Although the United States is

■■

deposits. This is particularly
significant in view of the fact that interest rates on loans
and investments remained relatively stable. The impres\ i

$3 billion, but it is expected

this-factor, will

industries.

generally have adjusted very

well to higher interest costs for sav-

Harold E. Rider

over

the net imports. The gain in 1962

free

measures

economic activity.

many

sary

same

and

equalled,

oar\,i+'!nKpVrie»nrTitiirp<3

.,at record levels.

to;%e^^-achie^ed, ;it us neces-":
for thfe componehf to Hse by ^

the

•

again; the

optimistic' levels ofullt ehip)^

that

page

the

along
Line

record

meht

about

-economyv Having weathered the psychological shocks of
the steel price cbntroversyj the stock market crash and

sluggish Ih recent years. For more"

was

Continued

:•

ex¬

Stamford, Connecticut

N/'P;. is the

6.6%

through capital7 expenditures of its own.

the Uhban

obvious- that the; failure of

'As

Coast

ing yeatr

demonstrated

total to. rise - along ^ with" the •
other signif 1 cant',^ a s p e ;c t s ; of.

there

of local income

HAROLD E. RIDER

this

1963, will-absorb about one-rhalf

popu-

perhaps surpassed, during the

located-

Atlantic

President, 'The Fairfield County

investment figure of 'some $?7' bil«-f

total of - all. -output

growth

of legislation
whjch will permit the railroads to compete
ou'more heariy equal;terms^
b^erifbrms of tra
portatioh, arid ldeSseriiiigf^ ihcohie tax load.

by
in

,*Wheh non-busihes 3; instruction,
is*.added Jq these .figures we' cbrhel
up with a* gross briVate domestic

b|ant-dn^etm

It* is

regain

1962, there were in excess Of 450

favorable legislative

lion for 1963f the^ame as

Retail sales to County consumers, projected at

;

for¬

President's • transportation message, with the probability

•

accumulation should be -offset.

Qfionnmv

•

\w£tha;net: of-only ;$2 bullion for
the year.' This-drop -in
dnyenfery:'
f

The

respect.

up¬

refeb y»t o", such factors: as .the:; prospect - of relief. from
outmoded,1 burdensome and ' expensive work '- rules,; a

mid-

::.{«.n

of the economy

tiirned-

that

particularly

•

Family incomes in Fairfield -County should climb
in 1963 by about 7%.
Total dollar income could be
r
$2.39-billioh against $2.23-billion in 1962; '
'

permit Atlantic Coast Line to contribute do the growth

oij late^v ib is*^ likely;thab fhiljsituar
tiom, will. correct

Incomes, retail sales and home. building continue

factors which may promote more efficient operation and

,
,

».

living standards await us. Banks can be counted
play a particularly significant role in providing

increased traffic

•

.re-

duced its inventory accumulations

My optimism is based primarily upon the prospects for
volume, but there are other encouraging

Although^business has

;!■

lations.

Line

expect

receiyed andmpetus of .some $4;bil-^
lion because pf inventory hccunru,.s

;

territory it serves, and Atlan¬

new" industries

fines

vmw; Thomas Rice

andplanjs.' T.o thist the vnet Change-;
id business*finven'toriemust be"

the problems

lation, but also in terms of industrial

In
>

bofts,; lacil&esy;; r r

past,

pect that growth to continue in 1963.

;|<|pipiri^,

/' items

the

ward.

not

may

development, and I confidently
;._

;hbtft busi-"V*v
construction and for producer

durable

economy

pressive, not only in terms of

purchases by business.-fet invest-

free-enterprise system

As in

of the Southeast continues to be im¬

ment-

ness

in the

Coast

tunate

change between 1962 and
1963; at about $77. billion, tfetal-

item

capitalist
year.

The outlook for Fairfield County's economy continues
year the County enjoyed advances in almost
all economic sectors. 1963 promises to be
equal or better
than last year. ;

number, of

The greatest asset of any railroad

V-

category probably will show

purposes^
& 1963^^ljould
show little ♦ Change
over .1962,
rising from $50' to. 52;..billion." This

mood.

materialize, Tshare that View.

little

the

bright. Last

Company

coming around to the view that

slowdown

Railroad

better year than expected, and the pre¬

*.>'•

Line

optimistic

viously; predicted

gross private domestic investment

cloud some' of the

may

credit needed to finance sound
growth. We look
forward to 1963 and the years ahead with confidence.

economists seem to be

better
on

ex¬

tories.

faith

the

durable
President,

increasing family formations

the economy today may be the solutions of
tomorrow and there seems little doubt that higher and

prospects

rapidly

facing

international

growth

when

expansionary forces quicken.

n strengthened each

industry, we see no reason to alter our longstanding
opinion that such growth will continue for many years

equipment but not construction),
and changes in business inven¬

ment

and

Our

we!

aluminum

into the future.

industrial);
penditures

may

domestic

long-range

decade

and other

the

Continued from page 25

th,ese

increase

the

per

years.

of general business activity,

course

forward; to

usage

Sluggish Outlook

earnings

and

highest achieved during the last six

Subject to the

Be Blamed for

earnings

(371)

lems.
*

can

sow

the seeds

Although inflationary

the moment,

future

inflationary prob¬

pressures

appear

dormant

they could reassert themselves later

serving the Southeast Coastal

Continued from

t before taxes.

construction compare with 4,500 in

1963

preliminary reports. Work could start within sixty
days after the go-ahead signal. And though several agen¬

227,000 home units..

over

cies have indicated approval, what happens?

population at year-end was 685,300. 1963 will
16,700 new people to Fairfield County. The
2.4% increase will lift Fairfield County's capita count
Total

retary

introduce

well

above

Family units

700,000.

1963,

field

tax

other

the

dollars.

men

elbowed

•

the

and which should
American

system. For the rumblings of

taxation;

the

measured"by the value added to Fair¬

have

electric

Fairfield County's economic

profile for 1963

industry

the Board

;

would

only

The

most

wheel

changing events in the Pacific Northwest

with run-of-the-mill problems
abundance of both virtues.
us

growth
in

and

the

Rockwell

whole, has not leveled off, but

con-,

that call for

living

mediately

after

voltage

which
the

regulators

current

has

been

and

peace,

believe

maintained

through

has

example, which has
est

domestic

uses

beyond

times

the

national

average,

Kinsey M. Robinson

use

far

even

average

spectacular. The company's commercial
showed an average. increase of 1,500 kwh.

...

previous twelve months,; making a total per
customer use of 31,156 kwh"
annually.- Still we are not

inclined
will

believe

be for

the

average

production

Col.

which

plastics,

and

for

increase, with

Statistics

There
in

seems

large

to be

of 500 Largest Industrial and 50 Largest
Merchandising

business

Firms,", which contains four incorrect statements about

about the

There is

;

no.

present shortage of power in the Pacific
NoHhWest, due to < active dam building and to some
|decline in industrial load growth. Excellent water con-'

his corporation?

ditions promise abundant
energy, through 1963. Some
interest has been shown in the Hanford
power unit which
was

shows progress, and the proposed power
the Pacific Northwest to California is slum¬

business:

been-

the

Government

power

picture

characterized

the

Pacific

increasing

Northwest

participation

Federal Government. Where the Federal
provided
15

per

cent

power

1940, the figure in

has

During

the

requested
power

100,000

tivity

the

Pacific

Northwest

for

initial

1,000,000

kilowatt

project

expended

approximately

$5,000,000

1962;

there

are

correct,
world

wage

competitive

These

and

for

that

will be

were

world

was

it
to

will

take

catch

many

with

•

re-:

for

encourage

foreign
wage
•

wage

level.

relative

rate

foreign
the

hope

levels will
Authorities

countries

soon

U.
be

point

than

wage

high

out

that

changes, it will take

years

that

for

present
wages

decrease. As to

increase;

In my
one

over

same

432 who feel in¬

were

Will

increase; 405

level, and 53 that there

employment, of 872—230 believe

589 that it will remain

at the

same

level, and 97 that it; will, decrease,

mind the year ahead will not be a ,boom year,
in which there will be moderate improvement

1962,

increase

barring arises similar to the Cuban affair.
found

will.be

the Gross National Product.

statistic of our economy place
a
figure that denotes a healthy condition of business.
The 558 billion dollar estimate attained during the third

the

domestic

the

there

their areas

Students of this important

quarter of 1962 indicates
ness

returning faith in our busi¬

recovery.

Personal
.:

ours.V

earners
our

loans

498 believe that it

level; and 240 stated there

The economy rise of the late 1962 will continue and an

world's

will

but
.

increasing

free

general structure of

total of 127 felt that homebuild-

decline. Of 883
credit

remain at the

measures

years

the

877

829^2^8 feel that farmers,
^spending in. their^ areas/Will iricrease; 474 that it will

semi-official reports

many

level, and 53, decrease. Of

they

They point out that-

measures.

of the President's proposed

many

that it will remain at the

create the impression that the rate of
increase in wages and
fringes is much greater in the low-

$257,-

the

party

79 who felt that the

participants

stalment

against

country, which

have

transmission facilities. The four
private utilities involved
have
already

'silitv

productivity. Similar statements have been issued about
the disparity between
foreign wages and wages in our

license to develop the
High Mountain Sheep
on the Snake
River, estimated at

project

belonging to the President's

communist

launching pad, aimed at complete socialization
industry.
utilities

were

their areas would increase;

will be

him that

warns

its productivity far more than the free
world, without
explaining that even if the figures on increased produc¬

stood

electric

Tax-paying

Expectations."

improve; 549 thought it would remain
and 35 thought it would be poorer. Of

same

will remain at the present

the pocket of the taxpayers?"

indicating that the Communists

Furthermore, political speeches and news
reports issued by responsible administration representa¬
tives indicate that a well-oiled
government power rocket
is off the

deep

and

resources

in Chicago a poll was taken

Business

participated, 248 stated that they believed

would

Of 865

bureaucrat

during 1962, greatly modified others; and completely
jected some.

en¬

at 52 per cent.

of the

institute legal action,

they blocked

some

1962

when

they would remain about the same; and 154 felt they

ing in

businessman

roots opinion of the masses.

would be lower.

will not support all these

disturbing element in

Federal

can

gressmen

discourage private development? For twenty

courage or
years

Will

reports in trade publications."

grass

interest rates during 1963 would be higher; 643 thought

The businessman reads reports by the President on
what he intends to do, followed by statements of Con¬

about the future, providing private utilities

power

simply

re¬

is perhaps applicable to bankers.

the

"Survey

876 there

businessman

lawbreaker?

him "are

permitted to construct power plants to meet growing
needs,

the

The report cautions that "some of the

the government's financial

are

our one

the

threatens to

bering, but not dead. With exploratory work under way
by private utilities in the field of atomic power, we do

p This calls attention to

entitled,

counteract these statements,
to the public and the world, which imply that, he

What

sources

not worry

cases

can

open

by the House. This places Hanford power in the hands
of public power advocates. The inter-tie with Canadian
line from

some

How

approved by Congress in reversal of earlier action

power

November 8, 1962, and

information may be erroneous inasmuch at it is based
in

uniformity but they do represent

conference

recent

bankers who

Anierica will fall behind.

1962 cleared considerably the

in store for. business and the

was

measure

entitled, "Mergers and Superconcentration, Acquisition

to believe

were

Some signposts have been emerging on the road to 1963,

today,

reason

and

War

reporting. Things

our

boring to most people, but the diversity

are

House of Representatives, dated

is the case, there • is little

opinion,

public

our

opinion of others sometimes are illuminating. What

head and shoulders above Russia in power development
as

headlined

I say about economists

corresponding loss to the others

What can a businessman do when he reads the. staff
report of the Select Committee.on Small Business of the

point of saturation is reached,
many years to come. If America stands

much

wars

The last two months of

because of wage-cost changes.

the

'behind us, we enter the New Year with great courage.

sands of .instances, use of- anyone of these three materials
may

njn& ninths

Stock Exchanges

ports generally were encouraging. With an erratic year

steel,

affected by changes in wage levels
in these three industries in 1963, In thou-

occur

rule

question of what

Rockwell

Roej;^|H

gloomy, indeed, as our plans for "quarantine-ing" Cuba,
and threats of Soviet economic' as well as political in¬
:

An¬

aluminum,

Mary

filtration in the Western Hemisphere.

experiencing

are

unemployment.

somewhat

business

rumors

demand. Indus¬

helped

Cuban crisis that shook the

mism

auto-

have

1962

alarming extent, with days of anxiety causing pessi¬

example, will be

9,425.'Natural gas acceptance by customers

the

over

above

nual

electric, .user

with

man¬

The

observations:

fraught with imponderables, a. faltering

year

unemploy¬

because

alike.

companies

months

stimulate

the resulting increase, in-

above

was

point,

must, but vulnerable

these

make

latter

tries where wages have been raised

367 kilowatt-hour

ending Noy. • 30, 1962. This brings the annual
kwh

problem for

national and international basis.

on a

the

irrefutable

and

Planning is

research

and

obsolescence

individuals

accumulated

invests

costs cuts down

showed

been

certain

motion

j
.

customer during the twelve months

per average

has

agement

.the nation, nearly two and one-half
increase

nth

m o

years—plans largely based
needs and costs.

ten

have made the future

upset by what

are

could plan ahead five

future population

ciation,

trade,

and pricing. The

anti-

soothe

not

increases either

ment
•

electricity

that

few short years ago

Much of this has changed as depre¬

show that when wages are increased

war

of the high-

one

but

was

and

happened during .1962.

evidence

Washington Water Power Co., for
•

that business

Board,

much clouded by political

complaints

attitude

Jh;', recent

bad. We

continue.'

such

made and lost. I claim to be no

Manufacturing Company

accused

businessmen who

alternating

good times and

growth will

unjustly

business

started im-,..

and

the

foreign aid, labor relations, mergers,

the turn of the century

near

our

undermined.

istration's proposed measures for tax reform, foreign

con¬

appeSrafice

financial studies of the past depres¬
sions and booms when fortunes were
bulwarked by

are

developments because of the wide effect of the Admin¬

tinues upward.-The rugged trend in
electrical

schools whose views

include economists and teachers in

$32 billion electric

F. ROCKWELL

1963 is very

Administration's
as

confusing. Too many forecasters act as

The outlook for

Pacific;

nation,

the

also has become
specialists, which

Forecasting has become big business. It

must

matter of time until the health of

WILLARD

simply reaffirm two notable characteristics of
faith.

that

And I

to complete state domination, it

Chairman

and

the

But

secure.

wizard of business forecasting.

Washington Water Power Company

executives—optimism

stand

Trust Co.

Trenton, N. J.

has little to say about a determined drive by

entire business system is irretrievably

ROBINSON

: ;;-;chairman of

position

our

and President, Trenton

Chairman

left to the voter in the Pacific

were

ever succumbs

will be

KINSEY M.

pessimism.

times, that if socialization of the

all businessmen

remind

appears

healthy and vigorous.

Northwest

just

are

businessmen

MARY ROEBLING

said many

consumer

obtain
investments?
few of the problems which cause so
and investors to regard 1963 with
action to

government

expect

united sober appraisal by those who believe

minority zealots and political proponents.

Electrical

These
many

in the profit system.

time and

our

compensation for seizure of our foreign

lines; Federal dam building, and added controls—-all this
calls for

$692.6-

billion.

'front

enterprise

it has

than

•

will not demand immediate
citizens detained in foreign countries,

businessmen

can

agreements

government

our

release

all

far

violated

has

kept.

stepped-up RE A pro¬
Federal transmission

network

concern

private

Northwest,

utility

which

concessions to any country

its decision to avoid

announce

investment

repeat, it is this sort of thing that

rapidly disappear if our government would show
of encouraging domestic productivity, and

its intention

project, has

private

$1.118-billion in 1962, topped the billion-dollar-mark; for
the first time. Total value for 1963. is forecast at $1.158-

some

identical project for development

concern,

segments

gram;

County output by the manufacturing process, at

The

Federal

history of this country, when pri¬

prepared to invest in

was

and seized

with

million in 1962,

Production,

The Sec¬

the

High Mountain Sheep at

Government

gives utility

substantially from

Federal

aside

low aroud 4.0%.
Manufacturing plants are slated to grow in number
and capacity, and by year-end 1963,'total plants in the
County should number around 1,680, up from 1,667 at
year-end. Manufacturing payrolls are expected to total

$727.2-million

business

the

ployment last year ran between a 6.2 % high and a 4.3 %
low; The 1963 bracket should be considerably more
high around 5.5% and

that

announced

would

Never before in the
vate

and should continue to climb in 1963 to 240,500. Unem¬

has

indefinite future date.

people—will increase to 207,700, up 3,700 from year-end.
Total employment hit a new high in 1962 of 235,500;

favorable:

Interior

Government should build

size: 3.4

average

—

going to be static.
With every promise
of lower domestic taxes, the
businessman finds that new tax sources are being in¬
vestigated and new burdens are being planned on the
accounting and reporting procedures which both Repub¬
lican and Democratic Administrations have increased in
recent years. Ever increasing costs of tax-collecting,
social security reserves, and so on, are a burden on big
business and a crushing load on small business.
Fear of
Communist domination of the Free World

and

should have well

By year-end, Fairfield County

1962.

prevailing in

to reach the level now

the U. S., which obviously is- not

collect $5,000,000 from the project annually in taxes.
Already, four years have been spent on hearings, studies,

The 5,100 dwelling units

the year past.

for

estimated

1963

Thursday, January 24,

...

in Western Europe

project.

in 1962 should climb

are

than

ahead

preliminary engineering, hearings, etc., on this needed
Ultimate installed capacity will be 2,000,000
kilowatts. At peak of construction, 2,400 people will, find
employment. Local, state and Federal governments will

page

The $1.09-billion total

$1.70-billion this year.
■■
expected to rise at a faster pace in the year

to around
Homes

The Commercial and Financial Chronicle

(372)

halted

resumed
power.

income

slightly
and

growth, '

before

will

the

reassure

important to

Christmas
us

us,

season,
consumer

though

will

buying

Most industries will bring a continual search for

master-minded

competition

.selling

that

programs

imminent

the

meet

home

and

P-'® Continued

severe

abroad.

on page

Volume 197

Number 6232

Consumer Can't C;

...

The Commercial and Financial Chronicle

Continued from page 84

nation's sales totals.

Be Blamed for

Research will continue as a

I do not

One

;

business decline in

hypodermic needle of
government spending injected into the body of our fail¬

Continued from page 83 ■/

ing ecoqnniy will act

the

and

short

displacements

run

due to automation.

materials

and

services.

The

tonic for

We count

should be noted that the foregoing

employment. The

estimates

are:

sumption

that there will

unusual

tax

enacted

sufch

based

reduction

1963/

the

as¬

programs

The

extent

and employee in relation to costs and

American

average

unturned to

democratic way of life. In

short,

forecast is normal

Manufacturing Co. During this year

leyel of

Federal

taxation, we might expect
increase of approximately $2

billion

G. N.

Thus,

10%

future
nized

basic strength

of the

reduction might increase G. N. P.

company

is its dominant and eminent

position

total of $20 billion.

summary,

terize

the

another

prospects

sluggish

should increase

charac¬

can

for

1963

year.

modestly, but not

enough to harbor any ideas of a
booming: economy. It is in such
a

framework

that

Government
series

the

Federal

introduce

may

policies

that

might

change the foregoing predictions.

fixture

residential

the

industry,

ourselves

three

;

separate

lines during the past year and have

put
in

greater

the
In

and

use

stronger emphasis

year

pears

good

plentiful

ment, the

There

and

With the

1962

little better.

supplies

the

with high-powered radar systems and plasma gen¬
that must not interfere with nearby delicate

electronic

reviewing the forecast for the

housing industry for 1963, it indi¬
cates

power

erators

lighting field.

probably

impulse generating type power supplies. This
stems from the need for higher powered
devices, in the
250 KV region, with precisely controlled wave forms for

product

trend

field of

divested

the

One direction that is growing in importance is in the

lighting

have

efficiency, smaller size and weight,
higher speed of response to load variations, more precise
control of output and. improvement in
anticipated re¬
liability over extended periods of operation.

have recog¬

favorable

power

direction of higher

it relates to the

of this company. Because

course

that the

Technically,

have made many

important decisions affecting policy

for

patents and applications owned by both concerns. This
Power Designs added potential for expansion,
growth and. improved earnings in the year ahead.

The year 1962 has been one of transition for the
Progress

overall reduction

the

need

gives

President, Progress Manufacturing Company, Inc.

proximation might be something
like the following. For each 1%
in

The

patents, and
cross-licensing agreement with
the Hewlett-Packard Co. for ,the
joint utilization. of
recently concluded

MAURICE M. ROSEN

rough ap¬

give the company

stockpiled at both plants and our delivery to customers
In any area will be speeded
considerably.
Our research has produced a number of

stone will be left

growth.

our plant
capacity and broaden our product line.
Products made; in Palo Alto and in
Westbury will be

better understanding of our

1963

for

double

prosperity.

tax-reductioh program is

quite uncertain, but

be assured

can

bring to him

com¬

supply
equipment will increase sharply as the nation's aero¬
space program advances. The acquisition of our West
Coast subsidiary will increase our volume
by 50%,

controlling in the matter of foreign relations, tax
changes and the better understanding between employer

concluding this preview,

atmosphere

felt and become effective. Permanent stability will come
to us out of the efforts of those whose activities are

Conclusion

turing equipment.

sustained economy
until normal spending and adjustments make themselves
as a

done

ber of components, and this
saving has made it possible
to add more research and new and
improved manufac¬

early 1963, This country is in need of great quantities

Sluggish Outlook

have

ponent parts and higher reliability. Considerable savings
in cost have been achieved
by the reduction in the n

join those who forecast

thing

designs in solid-state circuitry that call for fewer

permanent simulus to the

communication

systems.

increasing complexity of electronic equip¬

power

supply is coming to be considered
Continued

ap¬

supply

However, it is unlikely that much

terest

page

mortgage money, and favorable

will

accomplished in this

spect until mid-year, and

re¬

there

is little that might emanate from
this

area

change

the

basic

rates,
FHA

ened

together

loan

with

broad-

under the 1961 Housing BilL Probably one of the most

significant features of that bill to

our company is the
Remodeling, which provides for federally in¬
sured 20-year home improvement loans up to $10,000

nature of the forecast.

Aid

With Delhpsey-Tegeler

Lighting Institute considers the

Schepp

Colo.

has

—

become

associated

with Dempsey-Tegeler &

Midland

Schepp

Savings

Franz

Co., Inc.,

Building.

Mr.

formerly with Crut-

was

teden, Podesta & Miller.

maximum

DENVER,

Maurice M. Rosen

insurance programs

interest

rate.

The

American

average

Home

American home

woefully inadequate in its lighting and

quently there is definitely

arising out of re-lighting than there is in the
struction market.

conse¬

far greater growth potential

;

new

con¬

I do not mean to minimize the
very favorable effects
in the following other areas of activity. Our General
Offset Printing Division continues to register satisfactory

growth and with their entry into the four-color web off¬

Amos Sudler Adds
DENVER, Colo.—Arthur L. Ashworth has become associated with
Amos C. Sudler & Co., American
National Bank Building. Mr. Ash-

worth, who has recently been
with Insurance Stocks, Inc., in the

past

was

President of First Inter¬

set field

coming

looking for significant sales gains in the
The Kent Medicine Cabinet Division has

we are

year.

likewise been

a very favorable adjunct to our
company
they are now completely integrated in their new
and enlarged plant in Bellevue,
Kentucky. Marco Archi¬
tectural Lighting Division of Los- Angeles has
recently

and

added

a facility in Kansas
City, Missouri, which shall
specializing in cast aluminum recessed lighting which

opens

complete

new

field of sales for this

integrated manufacturers of audio and
which

Price

Range

com¬

The fastest growing division of our company has
been Frank Industries which is one of the few
fully
pany.

national Corp. of Denver.

Over

are

power connectors

used

predominantly by the military. Frank
Industries has not only enlarged its main plant in
Worcester, Mass., but during the past year has put into
production a second plant in Watertown, Mass.
,

In summary, if our economy should remain in
good
balance and be assisted by favorable tax

reductions,

5,500 Stocks
The

should register significant gains in both sales and
ings for the year 1963.

contains the price range on more
•

•; •;

•:

; ;xj \

than 5,500 stocks traded

•.,.

unit to

The year ahead looks extremely
promising for further
enhancement of the industry that
produces
power sup¬

the

plies. We at Power Designs expect to continue to widen
markets, with increased profitability. The acquisi¬

our

exchanges and in the Over-theCounter

Market.

tion of the Carad

Calif., has given

Other features

anchor for

include the

most

record

dividend

ments,

;

redemption

calls,

giant

our

and

devices

sands

sinking fund notices;

Corp., of Palo Alto,

product line from precision power
supplies of a fraction of a volt to

announce*

hundreds

thou¬

oujr

first

completed
this

highly

specialized

arid important, field with a) marked
upward trend in sales and earnings
and

ucts

The COMMERCIAL and FINANCIAL

CHRONICLE
25 Park Place, New York 7, N. Y.

all

Herbert Roth

reputation for quality prod¬

field

important.

which

quality

' %

We intend to continue and
expand

the policies that have
and

has

made

our

made the

client

concerns,; leaders in their

list

company

roster

fields.:,-

'vi

•* •/.

our

c,\Ci

■

like it has in

plenty of electric

our

power.

Oak Creek plant by.the middle of 196.5, Addition^

successful

well-known
..

capacity of the

Oak Creek plants to 1,350,000 kilowatts.

Growth and progress in our area have resulted

ing demands for electric
in

our area,

nation's

now

third

-t-

the 10th largest city in America and the

largest

showed significant

in mount¬

Milwaukee, the largest city

power.

user

of steel.

gains in almost

employment, building,

average

In 1962, Milwaukee

every

business category

payroll,

average

weekly

hours and earnings.

With such progress comes a

volts.

have

decade

v r

of this seventh unit will increase the total

us a needed western

nationwide operation
and has permitted expansion of our

comprehensive

service area—it needs the support of

President, Power Designs Inc.

When economic activity grows at a rate

That's why we plan to add a 300,000 kilowatt generating

HERBERT ROTH

Monday Issue of the Com¬

mercial and Financial Chronicle

/•vJv

earn¬

power.

sold

That's why

our

electricity

hearty appetite for electric

business

than

ever

was up,

too, in 1962.

before to homes,

schools, business institutions and industry.
now

to prepare

We're

We're working

for still greater demands in the

"letting out

our

farms,

belt another notch.".,

years
,

ahead.

The Commercial and Financial Chronicle

(374)

Continued from page 85
and

The

the

for

specific

fabricated

will play an increasingly
in the industry.
J

portant part next year

0;^

im¬

Chairman of the

•

services,

earned

scientific

frontiers

dollars

1962

and

than

ever

this was the best twelve¬
RCA's forty-three-

history.

•1

is
■

sums

spending
for

considerable

employment

Office workers have increased from

total will

The

surpass

load

level

1961's

$35,511,000.

previous RCA earnings record

of $47,525,000 was set

economy

out

stands

industrial

pace¬

rise

net

income

all

for

stock of

common

will

the

cents

share of

per

stock to the operating earnings in 1962.

common

can

potential

reach

may

1962 recommendations of the Presidential Railroad
Commission for reasonable and gradual elimination of

$350,000,000

office

wood

had
92 %

Against this backdrop of profit improvement, the prin¬
cipal production, sales and administrative elements in

grown

cepted

color television sets

services;
(2) Growing strength in RCA's electronic data proc¬
essing operations, reflected in the more than doubling

during 1962 of

(3) Continued

advances

and

defense

have'so far

been

The railroad

elec¬

rail. carloadings, which in turn
J

■

-Hiafplv

and reduce costs.

placed
levels

RCA
of

sales

increase

The development of

and

advance

earnings in 1963,

there;

even

tions

/advance.

whole

will

continue

pected

security

expand further the substantial
advanced electronic systems for
space and
In

the

home. instruments

and

home

are

If this

1963

from

picture tubes

numbers.

Electronic

data

produced in

processing has

introductory threshold
of infinite

can

>'/..;-//,•

to become

advanced
a

new

growth

the

•

„

and profits.

bring.

commerce

the

United

tax

cut.

benefit from the

roads

builds

serving

maintain

and

example,

increase
a

European economists

the

use

American

tons.

■

20%

;■

grade

metallurgical

coals

serves.

continue

.we

How

position

drag

to
our

available

the

year,

the

American

order in the., United States and for¬

average''size of 40,000 d.w.t. with
exceeding 60,000 d.w.t/ including two of 130,000

pensable both in
their

are

among

vessels

and

peace

development

keep

barges.

the nation's greatest

war.

pace
-

the

growing

draft

' v '• 1

The River and Harbor Act

It is imperative that

with

of 1962, authorized

dredg¬

ing estimated to cost approximately $363,000,000.

can

amount

added

authorized

the

projects,

for

Appalachian mines the N&W

Harbors and channels

most

already

along

reason

considerable

with

our

But

"user

That

backlog

others begun

but

of
not

to believe that the outlook for

improved channels and harbors is encouraging

favorable

and load rapidly the highproduced in the Southern

of other nations

will

during

position to . exploit this vr JrVA VWUJ> V J OXUWC il xi> pUttXllg d
y**.- vv
opportunity, since it is putting a
new $25 million coal pier into operation at Norfolk,

designed especially to blend

harbors, and docks have.been

envy

total of 364 tankers reported to be under

completed, gives

very

long

•

are a

the Norfolk and Western
expect to boost their coal traffic
these exports rise. The N&W is in a

part:

assets, vital to industry, commerce, and defense; indis¬

raw

Coal-carrying railroads such

saying in

d.w.t."

competitive edge both in price and quality

in most world markets.

prepared by the Anr

Institute, said in part:

eign yards with

predicting
which

•

construction

inter¬

the

are

coal,

paper

proposed main channel depth capable of accommodating
a
fully loaded vessel larger than 38,00Q deadweight

active seaports.

along the Atlantic, Gulf,

of the presently authorized deepprojects in varying stages of completion show a

water

Expansion Act and

gains in movement of goods and
those

for

1963*. widely

"Only- one-third

import-export traffic is stimulated further by involve¬
in the European Common
Market, railroads will

its

reXV-

Another' paper
Petroleum

generally good

States

under the Trade

;

heels in making our ports

ment

sets

an° efsneering, basic components, and electric
made r®wardinS advances in 1962. The
vaHHitear#?our ld Provide further confirmation of the
y of
w

new

Program for progress

would

national

pro-

amount

to the. large commercial vessels of today?"

satisfac¬

railroads to profit

readily from the traffic increases

substantial

on ;the Great
the 1963 volume
will be way below ..our capacity..
For a look beyond 1963 we quote

boast

Henry F. Schoon

"There

year

markets, especially for faster and more ver¬
satile systems to assist management in business planning
and the
QTlrl

Federal

/-/v-i v',-""//.;;:"

-/•

Even so,

long

believe,

be able to gain momentum in their progress toward

industry

control of operations.
In all of these
sectors, and in the allied fields of

Works Appropriations Act,

''Our

especially if economic activity

spurred

yt.

Lakes.

the

have

materializes, I think that the nation's railroads

materials—particularly

commercial

reasonably

vides;

the propor¬

neither

This,

adequate

industrial

and to reduce costs have prepared the

for

potential. The anticipated trend in 1963 is for

substantially increased demand

will

the

certain" developments^ ap¬

"Public

ago,

the

Industry-wide efforts to improve operating efficiency

?y..

beyond

that

able to sustain their slow climb of the past
from the rock-bottom financial returns of 1961, and

ex¬

era

750,000 to 1,000,000 color

weaknesses.

niial Tankers Conference not

time,

may

estimated that the

absorb

can

but

from

;

business

At this

assume

boom,

distributed

rejuvenation.

entertainment
an

/V.'."'

} '

dredging ' for. J^cali

should be

un¬

market

the

year

defense.

market, color television has
clearly; entered
major growth and profitability. It is
market

major

year,

•

iname-:

assess

indications

,'>.'rvw'

and Pacific Coasts and

general

year.

'y.i\ ''

1968",' passed in October last,

tory, though unsensational, business
Stuart T. Saunders

For electronics in particular, we can
anticipate con¬
tinuation through J963. of
theupward trend in,sales and
earnings which has, placed the
industry ahead of all
others in dynamic growth in
recent years.
The scope of the. nation's
space program and the
requirement for national

1963

diminished

Title One of the

encourages a cautious optimism that

investment and growth. Despite evidence of
softness in
a few sectors, the
question is not whether, but how ener¬
economy

are

the
the

there appeared the ominous signs of

coming year will sustain
relatively high level of activity, buoyed by the prospect
of early measures to
stimulate more vigorous business

the

all,
for

ahead will

year

whole.".

getically,

outlook

V* '■

ingj while hinging largely
pears promising.

of
the
railroad
industry
during 1963 must take into account,1

higher
conditioned upon

the strength of the national
economy as a
I believe the
economy in the

fortunes

first

• "t,

•

strong profit base in 1962 has

position

•

Thus, any attempt to

operating efficiencies

Ihqgpc in
raillosses in rail¬

road revenues,;

are translated

intn crain<3
diately into gains

program

If all goes well, the near and future outlook for
dredg-

industry is exceptionally sensitive to the

pany-wide

fluctuations of the .national economy. .Variations; in the
;
rate of Gross National Product are quickly reflected in;

launched

President, Atlantic, Gulf & Pacific Co.

£<& i.> J-

f'.'.i.

STUART T. SAUNDERS

and-operated by thea
Aeronautics and Space
Administration;
(4); Record sales and profits of the National Broad¬
casting Co.;
i'
•
1
(5) Successful implementation of an intensive com¬
National

HENRY F. SCHOON

space

'""'n. V- 'v

President, Norfolk and Western, Railway Company

tronics, dramatized by the unprecedented 100% effective¬
ness of the six
RCA-developed TIROS weather satellites
that

to; inject; new financial strength and "to 'increase
Imargins o£ railroad profits.
'

met only by alertness to the
changing needs of office furniture users.

of commercial systenas, and the continued
costs;
-

by the Interstate Com¬
pending mergers* and

several

consolidations. The operating economies- and-ithjdtoved
services resulting from these mergers would do much

These problems will be

revenue from domestic and international

sale and rental

substantial reduction of related

Commission

merce

Complex problems in manufacturing, design and mar*
keting face our industry in 1963, and the years to come.

and related

ac¬

labor

Railroads also are hopeful that the way will be cleared
this year fbr favorable decisions

to 98—an increase of 47 manufacturers—a

filing equipment.

their

the previous court decisions will be sustained.

growth in eight years.

and

as*1 many

performed- were

against labor's efforts to keep new work rules from
going into effect. This year, the matter should reach the
Supreme Court, and the rail industry is hopeful that

The office furniture

1961, and by an estimated five¬
fold increase during 1962 in profits on color
apparatus
as

not

by; the railroads but rejected

unions. Before the year's end, federal courts had ruled

;

industry is over saturated with,
RCA's 1962 success stor/ can be enumerated?
'^manufacturers—and this is especially true when to the(1) A strong upward thrust in consumer products and .y desk manufacturers are added those who
produce chairs:
services, paced by sales of inore than twice

jobs for work not needed

$450,000,000

Although 1963 may bring only modest' financial gains
railroads, it could very well earn- a place in his¬
tory as the decisive year in the rail industry's longsought victory over the handicaps of obsolete work rules.

promising prospective volume on the
horizon, we must look realistically at the marketing
problems facing the industry. In 1954 there were 51 desk
manufacturers, in the metal and wood industries, com¬
peting for their share of the market. By 1962, this group

Whirlpool Corp. This

add

sales

the

;

to the

this

Despite

operating profit, a capital gain
of $7,000,000 was realized in 1962 from the sale of 991,816
non-recurring income

this

coal

.
•

peak.

addition to RCA's

furniture, and the total figure

manufacturing

industries.
In

Add

year.

experi¬

prevent possible erosion of much railroad

traffic.

some $1,347,000,000. Sales
buildings, plus regular day-

to-day business, indicates that 1963

through from mining

Commission, these tariffs will establish unit
regular technique of railroad operations. "This

as a

should

has been tremendous. This has been bolstered by

of office furniture for these

company's sales will be higher than the average sales
gain of all American manufacturers in 1962; the increase
.in operating profits will be at least double the estimated
average

Commerce
trains

struction in 1962 amounted to

David Sarnoff

setter. The estimated increase in the

straight

already are filing rate-cutting coal tariffs based
principle. Unless disallowed by the Interstate

this

the sums spent for modernizing and refurbishing older
buildings. The total spent for new office building con¬

whole, RCA

coal

to large consumers—will emerge from the

railroads

are now more

office buildings in recent

new

scheduled train-

ments of 1$62 into routine operations this year. Several

probably reach 18,000,000. There

Capital spending for
years

In relation to the movement of the
national

deliveries

John A. Saunders

in 1955.

movements^-sy^tematically

people employed in offices than there are workers in
any other single industry; or indeed in any other type
of work with the exception of agriculture.

advancing at least 40%

$50,000,000,
beyond

will

areas

$1,545,912,000. Operat¬
taxes

grow|^s|

Unit train

1961 record of

after

innovations which utilize the in¬

today. By 1965 it is forecast that the

profit

Piggybacking,

transportation

Transportation' Message last April, would give
impetus to this important development.
"

exceeding by approximately 10% the
ing

automobile

nedy's

shown

15,000,000 in 1950, to some 17,000,000

approach

other

on high-volume traffic:!; jtemovhl
by Congress of federal
regulation .of minimum rail rates on agricultural and
bulk commodities, as recommended in President Ken¬

steady growth since World War II./

shipments,

and

cars

carrier competition.

common

whole, -

has

car¬

year will bring increased application of volume
rate-making in rail shipments as the railroads spur de¬
velopment of techniques for reducing their unit costs

plants and equipment

new

regaining traffic from other.

% The

effort to: meet this
a

freight traffic,

herent low-cost advantages of railroads should continue
;to"

continuing source

$1,700,000,000,

lation,

rack

squeeze

protecting

containerized
i

competition for domestic

during 1963 should increase their effective¬

available for

increasingly "

cost-price

concern.

Office

Sales for the year, in final tabu¬

will

The

can

there

and the up-dating of older facilities.

is /becoming

so.

money

month period in
year

present,

com-

before. Measured

by most of the accepted indices of corporate health and
progress,

situation, the industry, as

new

However,

industry,* always

our

profits will

probed

1962.

stiff

Thursday, January 24, 1963

riers, although private transportation will undoubtedly
still deplete the percentage of intercity freight
tonnage

^ promises to continue and adequate

•

Corporation of America sold more goods .arid

The Radio

indication that modest gains

every

over

petitive,

America

Radio Corporation of

ity, and
more

Board,,.

ness

industry
closely allied to capital expenditures/ There

over-abundance of production capac-

;

s ARNOFF ^'1;;
.

seems

expected

the

the railroads

The prospects facing the metal office furniture
for 1963 are

custom

SAUNDERS

President, The General Fireproofing Company

es¬

for space vehicles, solving the problems

environment,

space

•

requirement

increasing
sources

power

tailor-made

and

designed

pecially

application.

JOHN A.

specialized component part

highly

industry.

disturbing

charges"

still

that

the imposition

threatens

inland

and

tolls

intracoastal

waterway shipping; that a settled policy on bridge clear¬
ances

over

waterways has not been reached. Both "user

197

Volume

Number 6232

The Commercial and Financial Chronicle

charges"

fSchreder Sees

inland

vance

decade

this

tion

V i

and

rector

Group,

contributed,

certain

for

directly

welfare

general

to -wagon

for

the

tries
Harold X. Schreder

largely

Monroe

the

decade,"

Schreder^ told- members
Schreder

said

that

.*• •*

/••-.v.J:

erate

u <

«•

general

(

Y. '

growth

are

.,,J»

<•

V«' 1 A? ,

1963.

recession

proportions
touch

off

passed,

it the cost would be indeterminable

absolutely prohibitive.
requirements

so-called earth-environment

equipment and testing. The

of environmentally tested products is as wide as
the industry itself.
range

The

concept of simulating new or
j

business

major

astronaut's

try is devoted to industrial and commercial needs for

not

tax reduction of

save

distant environ-

Continued

on page

boom similar to that of 1954 to 1957.

Basic

Corporation

Products

diversified

highly

which

company,

makes it necessary to relate our ac¬

tivities

ex¬

the

pects the Dow-Jones Average to
:

could

"extremely favorable" economic
period for rest of the decade.
so

sizable

of this adjustment period into an

for simulating environments dicU
with space, although the space program is
perhaps its most sophisticated application. An important
and also- expanding branch of the environmental indus*

should continue its present mod*

discussed. Should

another year before we move out

For another year

'•

through

rate

have

probably

anticipated before the end of the year. This is assuming
there will not be a tax reduction as is presently being

which began in,, the

mid-50's, and

economy

continue

It has saved and

not originate

President, Basic Products Corporation,
^ t

^-V

the_

is high, but without

The

Mr.

reliability.

opera-'

that of the Venus probe. In dollars and cents the cost

and
?

still in the "in between", adjust-,,
years

&V.

will

DUDLEY G. SEAY

Harmonie Club Forum in N. Y. C.

rnent

lives and insure the success of unmanned missions, such

not

obstructed.

the general level7 of. stock prices
should approximately double, over

Mr.

should

them

upon

ex¬

rest

;

tional

Seligman

like amount contrib¬

Navigable waterways and the indus¬

dependent

cellent;^ and from recent prices,:

the:

and; to the many

testing to insure repeatable

•

to the general welfare than that for water¬

way development.

stock

■:: market

This knowledge permits designing
for safety and, beyond that, constant

disaster

No other Federal expenditure of

utes

business?:

and

vacuum,

Vehicle and its occupant

essential to the

welfare,: to "guard against national
through the collapse of those vital activities.

outlook

space

to solar radiation

City. ' ;•
term

/;■ others strange 'and terrifying ? new
forces
that
impinge oh a space

tect: and :strengthen*Kceftain ^activities
national

long-

possible in

Y o r k Y-

1 "The

'changes of hundreds of degrees in
temperature in a matter of minutes,

The purpose of Government aid is to encourage, pro¬

•-.*

expenditure. We must

closely

subjected

;

pur-

trails,

advance what will happen to equip¬
ment and materials when they are

nation.: Taxpayers have,

indirectly,

and

highways.

o r s ;

porated, of

determine

anil channel improvements, railways and

canals, harbors

Incor-

New

help

astronaut might encounter

is an essential

important indus¬

many

in-America with the birth "of the

Re¬

system, along with that of

Government

search, Dis-'
t rib

Roses has been in practice since medieval timesi it began

v e

Di¬

Simulating what

dares the unknown is costing millions of dollars, but

tries largely dependent upon it.

J?
e-Presi- V;

dent

The concept of imitating on earth the environment that

certain that the harmful effects of tolls

developing and vital link:, in the nation's transporta¬

develops,''

Schreder,

Execu t i

seem

officially recognized; that leg¬
islation will be provided to safeguard the well-being of

forecast January 19 by Harold

was

President, Tenney Engineering, Inc.

and low bridges will be

vigorous econ¬

exists outside the earth's atmosphere continues to grow.

It would

and broad stock market ad¬

omy

MONROE SELIGMAN

hamper

future waterway de¬

ill effect.

some

1,000 by 1970
return

seriously

could

some

velopment. In such event, our industry could not escape

D-J Average of

"The

clearances

low

and

waterway shipping,

(375)

which

fluctuate ip a. 600 to 700 consolidatiitev ^appi ,afte^ the sharp runVfj^pj^ef^ciajor uptrend-point :

several

FOR THE

within

industries

general economy. Our divisions

participate in the malting in-

:
-

June.

growth

the

will reach

Dow-Jones
level of.1000

about double recent levels.
"I

would

expect that■ the

acterized .by a

rection, but this should
be

another.-,major

especially.

buy,

:
i

resented by the Qonsumerrdurable...
and

;

capital goods industries.

that this

conclusion

;

their

ous

economy

this

r; Some

decade

in earnings arid

in these
A

Zt\

■

of the
of

Sales in

dividends

areas.
i

•

V"5M

*•*

<h--

•

?£

anticipated gradual renewal

vigorous economy aire
tremendous,"? hb said./ "Not only *
is the long-term outlook excellentr
a

very

for- over-all
and stock

earnings, dividends,
price growth, but as the

of -this

bolster

level

of generally "high-

industry

should

group's

dramatically

and

encourage

Z
•

come

even

indicates

•

with

severe,

customers'

profitability in

users

industrial

plant expansion

oon~

customers

inventories.

The

pressure

continuing reduction in the number of

mar¬

again.
addi¬

toward

conclusion,
larger

expect a continuation of the trend

and

diversified

companies.

companies provide protection against fluctuations in

de- Y

profitability.

velop, which will bring with them
a

broad,

market

haven't

across-the-board
advance

seen

—

the

stock

type

in this country

1956."

since

industry and afford

,;on
:

also

greater

THE WHITE GLOVES"
from

The world1 s largest temporary

orientation

the part of U.S. companies toward international

|MANPOWER INCf

any

base for future growth and

anticipate

IN
.

Such

one

gradually

"THE GIRL
,

tional intermediate months of ad¬

should

INVESTMENT FIRMS Call For

greater. Within the electronics industry, this

justment, well-balanced economic
conditions

of these industries will be-

areas

many

ginal firms through failure, merger and acquisition.

earnings

some

their

grow

that after

means

trend

The electrical and electronics industries should have

linue

stagnant" earnings growth—

basic

this

demanding and
receiving better products at lower prices on shorter
? delivery schedules. Suppliers will continue to carry?

This

small group of

virtually all the major and

capital goods industry such as the industrial

increased sales in 1963; However, jcompetitipn will

industries (foods, utilities, etc.) as £
has been the case for the last five
years or more

and modernization.
*

earnings growth be¬

ing confined to

for

population boom are just

furnaces to invest in these products for.

decade'*:urifolds^-in-J

stead of basic

definite'need for major in-

;in 1963? The nbw investment tax credit provision should

rest

heating equipment field are dependent upon the state ?
of the general economy. With the general outlook favorable, this industry should continue on an upward trend :

*,\

in-

reaching this age.

now

de¬

"The-:St6ick-inyestment> benefits

.time,.tbere.'remains

born during the World War II

velops should'• produce-higher- in*
creases

highly favorable

consumption is in the 20. to 40 year, age group; Person^

vigor'-

price of malt resulting from

^ analting/industry are favorable in vievr of; an. expepteR
^i^XiuOrease tebeer consumption. The highest rate of beer

and£ dividendsY

earnings

the

;i: dependent: maltsters? The long range? prospects;

currently -depressed prices: relative
to

»'

based' ^not only because of their

but because the return'of

decline below typical levels in anticipation of a reduction

probably will be depressed by competitive presr sures^created' by-acquisition of m^^gr'facUitiesiby^-;
majorl brewers.; Although this' trend may continue for

areas. ; >

that; the ;,best tetock valuesexist."
said

be accentuated in 1963 as the brewing industry re-

YY dustry

"pue. to;their;, economically de-

Company, Hevi-Duty Electric

.barley crop in. 1962. However, profits in the malting,

;p^s^ed^stete since ihemijd^O^Sjvit Z,
•

INTEMPORARYOFFICE H ELP

Heating

builds, its' inventories. These inventories were allowed to

isthtkes^

Ancjior Manufacturing

.may

•:
.

Hevi-Duty

Normal spring increases in sales of malt to brewers

;

pressed basic industry stocks rep-

are

Company and Sola Electric Co.

de-

i»TOf

and

long

for, the

so.

prove,

area

are

consolidating cor^i

rymt

Equipment Company, the Como-Cast Company and our
most recent acquisition, Lindberg Engineering Company.
Those active in the electrical and electronics industries

.■t.

fpw .weeks: ahead will. ;be. char*

y.tio-j
•••?:

Those which are active in the

industries

better,

I.H> J-1

metallurgical and industrial heating

Dudley G. Seay

Average
or

•

poration and Red River Grain Com*
pany.

He forecast that by 1970 as

the result of anticipated economic

Company, Inc., Froedtert Malt Cor^

established at the 525 level last

dustry are Bauer-Schweitzer Malting

oper-

TYPISTS

•

STENOS

•

help service

OFFICE WORKERS

ations. The success of the Common Market and the needs
of the

developing nations make it mandatory that Amer-

ican business

new

and

adopt

global outlook to compete in these

changing markets.

WALL STREET BE 3-6355
V

•

MANHATTAN CH 4-5720

14 Other New York Area Offices

;

; (376)

The Commercial and Financial Chronicle'.

War

relatively

ments

still,

was

in 1963,

current

capacity

between

railroad and airline terminals. In the latter.

the

under

now

companies.
Our interconnection program

passengers on

interconnections

greatly

the

increase

HERBERT R. SILVERMAN
President, James Talcott, Inc.

inter¬

power

change capacity of the nation's power systems by 1970.

dupli¬
cating the sun's heat, ; its wave- lengths and even the
angle at which its rays strike an object in space. Tech¬
nically these characteristics are referred to as intensity,
spectral match and collimation.

greater

The exchange of electric energy

that came into,

Solar radiation simulators of the type

izing

with infrared,fill-in.

and

limit
1963

quickly into re¬
solving reliability problems for the armed forces and
into producing equipment Tor the rudimentary environ¬

tures

the

first

equipment.
saw

the company move

then is

mental simulation of that era. What we did

our

industry

since 1956.

/ \

far

The

LAWRENCE F.

are

■»-'

look back

pany was able to

results,

marked by

services

our

new

additions to

operating

our

to grow. During
number

1962,

loads

new

schools

new

the

home and

kets

addi¬

the farm,

activities in the

areas

and the outlook for 1963 is

Increased
Lawrence F.

tured

year

will be entirely
we are suc¬

our
revenue-building efforts and go after im¬
proved productivity through better methods and careful

satisfactory. We

are

ready to work

toward their attainment.

During 1962, good progress was made on ourj continu¬
ing construction program which is designed to anticipate
growing demands for our services by improving and ex¬

and'plant

property

Service

South

which

now exceeds

place

Oak

the Company applied to the Public

Wisconsin

operation

for

authority to in¬

additional

Creek

power

plant

located

south

Mil¬

Expansion in

The

becoming

sales

1962

included

ex¬

the

the new seventh unit
goes into service in 1965, the total
dependable generating capacity of the consolidated Wis¬

consin Electric Power
Company system will be 2,225,200
kilowatts. Including associated transformation
facilities,
it is estimated that the new unit will cost
$33 million. M
We also continue to
strengthen our transmission and

distribution

systems

through

interconnections

For example, plans are under
way
construction of a new

extra-high voltage trans¬

mission line to provide another
interconnection with the

Commonwealth
consin-Illinois

Edison
state

for future operation at

Company

line.

The

line

system
will

the

BENJAMIN

con¬

appear

urider-

to be increasingly

problem and, we believe, can be counted
appropriate restraint in this regard in

expect

various levels,

in. 1963

see

the total credit

American businessmen.

sophisticated
now

resources

The

trend

available

this

direction

is clearly established.

During the past year, for exam¬
ple, Talcott has participated with a number of commer¬
cial

first

banks

financing arrangements designed

lender's

tageous

tically

funds

terms for

speaking,

work

under

both lenders

this

means

and

that

the

borrowers.

the

various
a

put

advan¬

most

distribute their liability in accordance with

Prac¬

lenders

carefully

planned

schedule, each company assuming primary
responsibility at different "layers" of financing.
.

Another notable trend which should continue through^
1963 is the increased use of maturity
factoring for

credit

SHERMAN

obvious need is for

first

full

advantage of the

technological

■

advances

food

record

year

1962

with

are

12 months

sales

clearly

commercial finance

Prospects

have

been

the

1961.

enhanced

expansion in the industrial cafe¬
teria
field.
As
one
of
the

company

now

cities of 23
is

well

provide

complete

through

coin-operated

factories,

Wis¬

hospitals,
and
;

office

States,

prepared

meal

buildings,

government

military bases.

our

number

economy

due
com¬

of
as

grow

discouraging, developments.
Talcott

forced to meet

were

The relative weakness

influenced many businessmen to defer

plans

The

which

commercial

successfully.
had

While

would

have

required

interim

another

ticular

schools,

mention.

the
.

cial

Similar systems of automatic cafeterias, supplemented

finance
we

are

industry met all these tests
happy to report that Talcott

satisfactory volume and earnings during 1962,

believe

institutions
\

the

Some companies were hard pressed to main¬
tain their position in static markets.
;
•
.
- -

service

machines

relatively large

financing.

catering organizations with

offices in

nuiriber of challenging tests.

expansion

few

national

face

of the

our

many

industry and its ability to

Leading companies such

million

client but merely

1962, it can be said that the past
demonstrated the soundness of the

pared

$90.2

receivable

beginning to

rising to the highest peak in its his¬
tory, or around $100 million, com¬
with

time,

Looking : back

Vending Corporation enjoyed

use Maturity factoring for the
thereby reducing substantially their credit
checking and collection, burdens.

dispensing equipment.
ABC

full payments

It is significant that

panies

coordinated service by taking

Under maturity factoring, the factor

actually advance funds to

guarantees
date.

protection.

does not

In-plant industrial feeding through automatic vending
machines has expanded rapidly in recent
years-; The

constructed

345,000 volts but will be initially

tempted to

are

dangerous

out

with

neighboring utilities.

industry

our

arid
ingenious types of financing that bring into play, at

two shift basis through most of 1962.

can

does

resources

exercise

a new plant at East
Longmeadpw, Mass.,
plastics division, and substantial investments in
new machinery
and equipment. In addition, the com¬
pany installed a new system of controls for planning
and production. Despite added
capacity, the company

each

the

con¬

definite

seeking interim financing

sometimes

the months ahead.

items manufac¬

completion

of this

aware

credit

over-use of

Leaders in

use.

encouraging
brand

industry is

make " substantial

availability of ample credit

mere

forget,

and consultation. This

of firms Jthat possess a

success

in 1963 will get it.

new

operated

top

our

equipped

well

than

commercial finance

de¬

some

intensified

there

the

Their primary need will be

1963,

Password,

increment of

Presently, the six units of the Oak Creek plants

combined capacity of 1,050,000

kilowatts, includ¬
ing 500,000 kilowatts in the North Oak Creek plant and
550,000 kilowatts in the South Oak Creek plant. When

for the

from

revenue

during

carefully

are

will require

companies

not mean that every company

plans to further

been

financing plans

consumer mar¬

distributed

$600

generating
approximately 300,000 kilowatts capacity in the

waukee.

have

the year,

Commission

and

has

these

field in which

manufacturers,

their

nearly

are

expansion "as

growth potential.

Chairman, ABC Vending Corporation

Late in

stall

new

tributions to the

Italy, Canada, United Kingdom, and Australia;

million.

unit

manufactured extensively in France, Germany,
Holland,

planning realistic objectives and

our

markets.

company

Newer, smaller companies

during periods of

for skilled financial management

by licensees abroad also is ex¬
Our merchandise is now being marketed and

pected.

generally

ahead will

and

Seybold

cessful in

year

The

ahead

move

a key factor
sustaining economic momentum in

Unless

particularly

items

new

evidence that the public is

problefns. We know, however, that if

expenditures, the

competition

during the last two quarters.

in the days ahead.

money

scious and alert to real values.

serve

favorable, it is not likely that the

panding

Many

James J. Shea

sales will come, as usual,

game

entirely

schools.

Although
entrance

agricultural, business and indus¬

are

and out

items

pand research activities.

more ways

enhanced by the wide diversity

free of

year
our

number

tap

version for

to opportunities for growth and pro¬

trial

best seller in 1962, will be marketed this year in a new

Although signs continue to point

Milton Brad¬

nationally makes further first quarter gains

record

signed to

business

services.

use our

recessions.

introducing to both school and

are

when that expansion
analyses suggest that the
slightly higher plateau

of available credit will be

use

ahead.

year

economic

just

own

general
• v. ,
.

drawn and supervised, they run the very real risk that
total operating costs will get out of line and that they
will lose their ability to compete effectively.

line with estimates by other consumer goods companies
and general economic indicators.

from

stabilize

vulnerable

significant

likely. The major lift in

Our

developing and

the

game

contribute

business for

retail stores

will

Effective

schools,

are

should

condition

forecast

accelerated pace

the

Expectation of higher levels of game business is in

continue'

and

people continued to find

gress

of. stock
.

area,

manufacturing facilities,

institutions,

revenues

impressive

resulted

shopping centers,

tions. In

in the months before Christmas.

Throughout
for

adults

which

difficult

economy

1961

and

interest

ready are ahead of last

earnings.

demands

contribute

H. R. Silverman

strong posi-'

will become visible.

interest in

families

both

increased

com¬

during the early part of the year and then

education

increased

increases

keyed

able

expansion.

ley in 1963. Our January sales al¬

of good business-

upon a year

satisfactory

stepped

age,

game

factors

SEYBOLD

the

under

growth and testing for the

tion

out

recurring expendi¬

net

has not

significant among them.

moving into 1963 in

increasing number of children

playing

financed

was

com¬

but lack

reasons

mercial finance industry and we are

earnings.

and

close, Wisconsin Electric Power Com¬

1962

part

Wisconsin Electric Power Company
to

number of

The past year has been a period

1963 sales to be up perhaps as
the record-breaking 1962 volume.

over

this

high

games

Chairman of the Board,

came

has failed to

economy

interrelated

;

approximating $1,000,000

record

participation

Engineering's

As 1962

All

brought

doing today.
earth-environ¬
ment and space-environment programs has resulted in
a rising sales curve.
The company's volume has doubled
from what we and

achieved the largest increase in physical

of earnings. Non

World War II

Tenney

10%

20%.

name

lack

fprward for

been

plant expansion in our 102-year history, lifting capacity

environmental

its

that

due

The

credit.

expects

company-

Last year we

new

certainly

been

move

SHEA
; r;~

available

applica¬
reliability programs.
Tenney Engineering, founded in 1932, prides itself on

and

of
;

not

meet these

President, Milton .Bradley Company

tion to space and other

cry

needs

of funds at reasonable rates

aged designed systems available for immediate

fact

the

slowdown in national

recent

plex,

JAMES

much

the

The

Our

other leading commercial ^

economic development has

continued growth

well be the decisive factor in achieving

may

capability. Much will be accomplished

its

our

outstanding results.

push back technical frontiers, but another
aspect will dominate environmental activity.
This will
be the consolidation of past achievements to make pack¬
in

vital to

profitability. How ably and skillfully

challenges

before and

ever

lack

not

higher

;

foresee

meeting

Soundly managed companies.

industry has by no means reached

The environmental

the

than

before but

ever

should

Anticipated demands for in¬

will

companies

problem

'The challenges which our company faces together with
others in the electric power industry are more urgent

combination of xenon and mercury-xenon lamps,

than

firms

commercial

and

terim funds upon Talcott and
finance

in such

invested

industrial

adequate credit facilities.

pooling power, generating facilities, thus resulting in

equipment.

lenses
and light sources to relatively small, mobile units.
As
the year drew to a close Tenney Engineering announced
plans to market a unique, mobile solar simulator util¬
giant arrays of mirrors;

in 1962 ranged from

use

between electric power

productivity for each dollar

planning growth arid expansion during 1963, Ameri¬

can

companies, which takes place on interconnected systems,
improves the continuity of service and also has the effect

equipment was available years ago, but

kind of

jet airliners on trips throughout the Free

part of the nation¬

plans of the investor-owned electric utility com¬
panies of America to expend billions of dollars for new

might well be described as the year of
simulation .*— not just bright light, because that

its

opens

World.

wide

The year 1962

connection,

mid-January, 1963,

division in

Gladieux

our

Wisconsin to connect the power systems of five

across

planetary space.
solar

turnpike restaurants, sports arenas, race; tracks and bus,

the economic advisability of taking part in a - :? huge commissary at the new Dulle? International Airport
in Washington, D.C., to provide in-flight meal trays for
to construct a 345,000 volt transmission line

project

and

thousands,

tens

structures costing tens! of

interconnection

will be extended to I

with radar ranges for hot platters,

late

interconnection will double the present

new

companies. Also, engineering studies are

way

they are housed in
millions of dollars. Their per*"
formance ranges from duplicating climatic conditions of
earth to simulating the harsh, cold, black void of inter¬
the

kilowatt

two

concept and crude in execution. By contrast, the num¬
ber of environmental facilities of all kinds in use today
is

the

150,000

recently as the Korean
standards, embryonic in

new.

volts. Planned for completion

138,000

operated at

Continued from page

Thursday, January 24, 1963

•.

facet

This

our"

was

operations

our

deserves

ability—capitalizing

flexibility and special service inherent in
„

financing—to

provide

advice

and

par¬

commer¬

suggestions

for

correcting unprofitable practices in a number of busi-

-v-7v:V^vGp.:•'.' ?. ''-''Jy-%1

Number 6232

Volume 197

Timing Railroad J; !|

''\'fJ'£■•*:'(■£

Continued from page

situations

ness.

of hand.

Mergers for £

our

Continued jrom page 5

some

may want to

them

for

1966.

(3)

buy either
other

reasons

other

But

the

probably

are

better

One

•

buys. No matter who

Illinois

the

rate

covering

its

fixed

funds.

charges

amount

than $1

interest

bonds.
ville

line

the

applied

mortgage

and

the

only

lems that

off

This

board

Air

Line

final

Llns-Sea¬

sonably

case,

too,

The

most

attractive

until

early

The

that

effect

5-year

growth

tribute

should

substantially

very

Congress

the

price

very

into

even

tions. On the

any reason

Forum

their

Mr.

Jacobson

the

Association

Pierce,

• ,,f

organization

coverage
was

Senior

our

accepted

the

voluntary

the first firm to offer

hospitalization benefits.

agent for

the Office of Dependents' Medical
have handled payment of claims to hospitals

doctors in

wives

number

and

children

states.
our

meet

These

benefits

are

servicemen

active

duty. We have handled this at cost, knowing that it is
a service which allows the
government to operate With-

Continued

on page

any

''fourthbanking4i»
provisions

exemption

from

for
pro¬

Reasonslto

dollars

public in

TRADE PACIFIC COAST

has
more

Only about half of

...

SBIC's,

so
..

industry has its problems.

new

SBIC

industry is rio exception.
companies
to

will

management's

skill

CLOCK

1. BEAT THE

for the dealer

for the customer

—

Two hours of

after the close of Eastern markets

prosper

trading time

provides

a con¬

tinuing opportunity to capitalize on
other

breaks and

news

developments.

2; SAVE THE
J.

see

TAX

—

Pacific customers saved

•

over

and

above

announced
are

the

•

coming

history

being

revenue

ex¬

pected that the amount of the is¬

$100,000,000 and that

consist

term

bonds

and

serial bonds in proportions which
have not as yet been

finally de¬

termined^

V. J.Skutt

—

in NOT

state transfer tax.

other

premium

volume

$276

over

Preferred rates of

—

extended to approved members of

Exchanges and * members of the NASD*, -w

million,

ENJOY WIDE SELECTION

—

600 issues of Eastern,

Western, and Hawaiian companies are traded on the

than $22 million and

are

of Omaha

over

in¬

world's

only Exchange combining two major trading'

floors in

one.

$700,000 each work¬

financial growth figure, have

for health

employees

public offer¬

about Feb. 19. It is

with

Individuals
alize

with

Authority- for

general

Mutual

reached all time highs.

22, that

year

ing day. New business, assets, in fact
every

Triborough Bridge and Tun¬
of

yaer.

average

sale

last

ENJOY PREFERRED RATES

than

time

& Co.,

nel..

issue

benefits to policyowners raeching an

way

the

propitious

crease

under¬

Jan.

dollars

has just completed its strongest year

the

bonds, looking to

growth due strictly to

r<Tn health insurance, there has hever

the

under

pay any

commission
been

which

million

Smith

one-half

having to

upturn

with most economic barometers showing

economy,

Merrill

joint managers of

negotiations

of Omaha

substantial

larger population.

Fenner

group

than

SKUTT

During the year, we should

Incorporated, and Allen & Com¬

it will

this

for

has

t\ £ pjf yw.-. v-K

Incorporated, W. H. Morton

will

providing

own

field

additional small businesses.

reaching

sue

companies by these
for

the

Dillon, Read & Co.

Chairman and President, Mutual

the

To Be Marketed

ing

companies to the true test of success—the financial

Triborough Bonds

new

and

market place.

Brokers, New York City, Jan.

*•

formed,

fiscal

Care,

folio companies, must have the financial acumen to lead

$100 Million

writing

the

include

Individual

Singleton, Jr.

increases

pany,

As another

over¬

accomplish,Ih^PJlfposei

SBIC's.

according

1963.

Lynch,

and

merger situations should

Customers'

15,

proposes

insurance

benefits in addition to its liberal

taking calculated risks in fields in which they are ex¬
perienced. Management, both in SBIC's and their port¬

other hand, if care¬

address

Railroad

health

insurance

two decades sug¬

half-billion

650

Any

quite profitable to investors.

*An

Our

health

borrowing.

The

develops in between decisions, the
be

matter

the

doubling of SBA funds available

able

fully timed to take advantage of
the lag in interest that invariably
railroad

government

ample venture capital is still avail¬

systems, still

see

the

this has been invested in their porto-

of these situa¬

any

what

that private, voluntary institu¬

Company industry- i^atfj vvi

would

than

M. E.

short, I don't

rush

to prove

This economical coverage has been offered
regard¬
less of past or present health and includes
nursing home

prob¬

can

industry,

been invested by the

rather nebulous.
In

they

position

called

Over

and, except for the Great North¬
ern-Northern Pacific

of constructive

program

over.

prepared to meet

our

reserves,

for

its

further away from consummation

often

and

at a

are

If it is to

folio
mergers

visions of the Investment Act of 1940,

much higher than the

Western

confident

strong

This

con¬

company

not

loss

market.

current

The

merger

system", it must have certain basic legislation enacted.

earnings and enable it to sell it¬
self

SINGLETON, JR.

intended,

can

and

the crossroads in 1963.

South¬

eventually

the

encroach

this protection on a national basis, and
today Mutual of
Omaha alone insures over
1,250,000 persons age 65 and

inhibit

may

specific

not

are

record

phate deposits being developed on
line

the

basis.

for

are

included in this merger. The phos¬

its

bring

The Small Business Investment

1964.

option

anticipate in detail at the present.

are

ern Railway Co. which will have
in

health

Fresident, Capital Southwest Corporation

rea¬

security

this connection is Norfolk

the

challenge.

that Labor will delay

sure

this

underway

sought to employ

can

Citizens,

pre¬

they

been

effect

federalization

better.

that

mean

that

cycles

will

1963

cannot

not

this merger by the Commission is
am

where

could

approval

likely this summer, but I

tions

obligation

market, to be

have

will have time
our

challenge

duty and

which

continuing

helpfulness rather than' negative criticism, hoping

individual firm, a prom¬

Steps

We have

field.

our

organizations.

inevitable

problems

field

steel—and these movements all have a^tendency to effect
public attitudes and to incite fear in the less stable

had

competition that has

channel funds

economic

question,
we

does

gests

Atlantic -Coast

believe that there will be

overly-aggressive

Talcott in particular, during the past

non-

equipment debt.

(5)

the

come.

2054

somo

private business in all areas—transportation, agriculture,

to weather

Without

tingent interest 5's of 1997 leaving
of

:S.

who

many

highly compet¬

years.

them,

5's

j..j;

businessmen

many

need of health

understanding of the

example, Mutual of Omaha has cooperated
with the Defense Department for some
years. Acting

con¬

the

cooperation with banks and

that

insurance

business,
on

fellow citizens.

our

growth. We have witnessed several such cycles in recent

for, enough
pay

era

all; times to

prepared

Evans-

be generated to

first

new

V)'

strides in

greater

even

pne—^ith over 1,000 organizations offering;

One

assisting

for

ising industry and the economy as a whole. In perform¬
ing cur unique, financing function, we must also be

Nash¬

the

opportunity

qualify for future underwriting.
expect increased benefits from several of

see

type of health protection plans.

regional offices that have been in operation two years
or less and have just begun to realize their
potential.

pared

these

acquire

cash will

Louiyville

increased

contribute to the growth of

resumption

payments

the

should

ville

assure

upward

months of patternless activity.

A company such as ours has a

and

little

its

substantially than this figure.

forms of coverage has made this field

for equity financing last year will turn

should

insurance continues, public

for

growth

resume

to stay ahead of the general finance

contingent

will

unnecessarily depressed rates in

million—a $2 million im¬

provement will
of

six pri¬

are

continuing

financing for interim assistance that will

even

year

While education of the public to the

(6) Finally,

charges

The

believe there

investment

group

defer plans

reaction

about $2 million per year.
Chicago
&
Eastern Illinois
is
currently

sinking

economy

We anticipate

(5)

gets control, projections indicate
improved earnings for Chicago &
Eastern

coming

itive

the

foresee

enable them

(4) The Chicago & Eastern Illi¬

The

Out

to commercial

than

merger benefits.

nois? bonds

gotten

lending institutions.

(4)

one

have

^
We believe commercial financing is just

threshold

savings

before

has increased

^••

anticipating

small business.

fore the second half of that year.
I doubt that any material
show

recently

for

after many

(377)

bringing health insurance to

We think

(2)

be¬

in 1963:

company

trend

consummation

:A>li'{ v.;^'-.. •''-

••.••

reported

reasons

(1)

approval
early
in
1964, it would be unreasonable td

will

mary

Commission

•••>

might otherwise

that

analysts in the Midwest,

Investment Gains

expect actual

-■•S '-^:

The Commercial and Financial Chronicle

arid

than

families

ever

now

re¬

policies; businessmen and

alike^ recognize

the

in¬

tegral part group insurance plays in their firms.
Advances

medicine

have

brought

healthy populus in the history of

man..

demands

while forty

the

best

medical

care,

the hospital only as

before death.

from

;

the

most

The public today

most people went to

COAST

PACIFIC

EXCHANGE

STOCK

before the need

years

Los

BI8

Angeles Division

^outh Spring Street

Los Angeles 14, California
HMAdison *7-8741

San

301

Francisco

San Francisco 4,

California

EXbrook 2-6533

;

ago

last resort
Market hours

—

7:00> 2:30 (Pacific Coast Time)

twenty years, the health insurance field has

Division

Pine Street

grown

12 million persons insured to over 136 million
insured today. Our rate of growth in Mutual of Omaha

Monday through Friday

The Commercial and Financial Chronicle

(378)

ton, Ohio, which are capable of producing 40 millions of

Continued, from page

believe it is
our .responsibility
to help both the government and
these
fine members of our armed forces and their
another bureau and

establishing

out

dependents.

trile butadiene

associate

Monsanto

these

tion capacity for tolylene

mary

international

and

national

product is used

This, then, can pe the solution, to the economic;
between government and voluntary,-private

ness

proving that we can and will do a

•given the opportunity..

prob- y

tary
can

J, -

of < the health insurance field.

in the history

the

polycarbonate products.

and

millions

$140
in

investments

for

1963.

Capital

carbons which serve,

in turn,

materials for other plants.

stream

and

Ownership previ¬

Plax employs about 2,000 persons
Anaheim, Calif.; Ligonier,*Tad£
Sharonville, Ohio; Yardville, N. J.; Deep River; Conn.,
at six plants located at

parent firm; the, formation of

building products,

Research

and

Commission.
v

„

with

country

each

probability

company's

Texas

began

location

City

early
on

1962

plant

the

capable

producing 50 millions of pounds annually of linear poly¬

ethylene

and

polypropylene,

Monsanto completed

both

products is

vinyl acetate

monomer

Texas City and began building the world's first

plant at

synthetic

lactic acid plant at the same location.

Expansion projects
and Pensacola,

nylon

data

launched at Greenwood, S. C

ingly enough on:this issued and if members*of Congress
tune in on the convictions of their constituents, signifi¬

cant tax cuts will be made.

^3%^

This

1963 is

or W6r<e -

market

for

.which: the Department
terior, is
;

the

There

are

was

being expanded at Pensacola during

addition, the

processing

company

center

Blacksburg, S.

C.,

completed

Greenville,

construction of warehouse

and

were-

controlled

electronic

for

Plans

period will be

know-how/The will of industrial man¬

also

well as

payrolls will surely follow,

bind:

low

signs of

including
est wage
.

announced,

a new

plant at Augusta, Ga., to produce phosphoric

tripolyphosphate,

fertilizer and detergent industries.

uled to be

stream Jan.

Muscatine,

raw

materials for the

The plant was sched¬

1, 1963.

Iowa, Monsanto opened

new

plant

daily ammonia
capacity. The ammonia is used primarily for plant foods
fertilizers.
A program

started.

ducer
At

to modify the saccharin-manufacturing fa¬
The

company

saccharin,

the

Queeny Plant in St. Louis

is the world's leading

Monsanto's

company's "William

first

Monsanto, 111., expansion projects

it for
and

oil he

oil

companies—plus

the

Congress' decision
taxable

aspects of

sales

rising

operating

costs—any

our

big difference in the direction taken

make

course,

by the

which

rate.

were-f

about

pro¬

were

under

Barring
continue

product.

Krummrich

These

Plant
way.

problems

At Kewanee
any
our

serious

are

trying to face them realistically.

unforeseen
intensive

will

Monsanto

produce

was

in progress

chlorinated

customers

for

dry

cyanuric
bleaches,

swimming pool disinfectants, scouring powders and other
products.

1962, Monsanto completed

facilities at Addys-

and

-expect

active

$2.2

sales

to >.

sets /

compared

to
Robt. C.

Sprague

for the export 4
market, exceeded 6,500,000. Color TV is beginning: to* be

eluding / Setsmade

significant

contributor,

with

production

esti¬

mated to have been about 400,000 sets compared to about

250,000 the previous

year.

In radio, 1962 was the best year

explora¬

radio

sets

with

sales

creased

enjoyed

good

totalling

24%

automobile

from

since 1947 with about

against 16.8 million in 1961. Home
11.7

1961

demand

throughout

the

year,

million, while auto-radios in¬
to

6.9

million

reflecting

production in the 1962 model

year.

high

Phono¬

graphs and radio-phonograph combinations gained about
10% to 4,400,000/ /.

mately

program

barrels of oil
reserves

These

1963

$10,000,000.

and

This

day—and

effect

will

current

have

enhance

output

set

are

aside
our

ex¬

approxi¬

production

22,000

net

continuing to find

new

some

operating efficiencies.

efficiencies,

program, a
new

developments

acquisition

acquiring oil-producing properties. To continue this

considerably—our

day of caustic soda. Work also

insurmountable.

not

years

tion programs. During the past year we spent $8,000,000

facility which

but

remained

industry.

are

increased

television,

6,250,000

products,

having

previous three

year.

5,775,000 in 1961. Set production, in- >

quite

depletion allowances and other

industry will, of

last

the strength

was

consumer

after

electronics
.volume

retailers;/ of. black-and-white

Sell

price of crude oil is long overdue.

for

billion

■

110 tons

dollar

these controls imposed on the producer as well as the

major

demand

$2.4

captive position. The
can

to
,

higher

witnessed

notable

Especially
in

the

industry

our

of the high¬

produce and the price he

growth,

All major markets for
contributed

controlled by the major purchasing companies

are

pansion

used

of this

figure approaching $15 billion.

by regulatory bodies in certain states. Because of

being constructed to provide new manufac¬
turing capacity for 100 tons a day of chlorine and for

acids,

one

this time that 1963 will see

continuation

for the

can

was

categories.

addition

growth of the economy as a whole. Furthermore, it Op-

18.5 million sets sold

cilities at Monsanto's John F.
was

are

factory value of more than $13 billion/ compared

pears at

price increase, and higher operating costs
almost inevitable
5%
pay
hike
for

TJie crude oil producer is in

increase

which will add 200 tons to the company's

ing

allowables, low crude prices with

already

are

.to $12 billion in 1961, and again surpassed the rate of

mistake about it, the oil inde¬

thousands of people who

decks

Spragrue Electric Company

nylon-warping facilities

Construction neared completion at year's .end on
acid and sodium

crude

all

the electronics industry sold end products hav¬

In 1962,

equally optimistic. Perhaps cautious optimism should be

C. SPRAGUE

ROBERT

allocation

companies during the next 12 months, I wish I could be
no

force.

encourage

Chairman of the Board and Treasurer,

As for the outlook for the independent oil-producing

Make

abundance; But these

this kind of capital employment,
results in the form of more healthy profit margins as

forthcoming

productive

tangible

cleared to

Wm. Wikoff Smith

700,000 barrels a day less than if

some

shortages in this country of industrial

present in full

can

In-

the

markets.
favorable

plusses in themselves are not enough when profits con¬
tinue to skid. It is in the industrial scene where spending

the old program had been extended.

amount
Monsanto

during

imports

the

disregard

agement is

oil

domestic producers- will
exempting Canadian and

plan

import

new

benefit/ The program calls for

in world

positions

afford

ill

can

impact of these taxing advantages in the race for main¬
tenance of our competitive strength.

shap^* and by expected Congressional action on. a Fed- i
era! tax cut and reform to stimulate business spending,-:

C Under

nation

and technological

final

into

now/whipping

the most" effective measures in bol¬

stering their competitive

upturn in total produc¬

increased

taxing regulations by other countries

More favorable

have proved one of

renewed

With

seat.

of capital

pushes hard enough and convinc¬

If the Administration

pendents-—of which Kewanee is the' oldest—are caught

capacity 15 to 20%. Capacity for nylon in¬

yarn

efficiency

remaining area for hope lies in early action on taxes.

will

in the Gross National Prod¬

the. keynote.

Fla., to increase Monsanto's Chemstrand

termediates also
1962.

were

situations.

the full impetus.

the

gas

My optimism is predicated in part
the new import-control program;

materials.

plastics

profits are not going to be

spending for production. But this alone will not provide

first

its

Ohio, tot the XT..S. Atomic Enefg#
J
"
i ' '
i ""V

construction

W. C. Snyder, Jr.

most

what is required. Changes al¬

no way near

„

Texas,

its

yet prove a factor in boosting the rate

may

The company pushed forward with many construction; "Mexican
imports under the overfall umbrella and basing
projects at Monsanto manufacturing locations around the
the import, level" on actual/domestic production::instead
United States. "
5 t'v V
'J1-. ,
,
;.
.
' " \,s :* of on estimated total demand. This means the level of
In

one

production.
■
'
*
'
Despite the total of such expenditures in recent years,
the annual rate of increase has been modest and in all

products.

large enough

capital which has the purpose of increasing

people take

young

in the economy,

confidence

Building Products De¬

Corporation's contract to operate Mound Lab¬

oratory at MiamisbUrg,

the profit slide-

has hit a

so-called

the

our

driver's

means

division of the

introduction

the

uct and any

rigid vinyl panel; the renewal of Monsanto

all indus¬

However, the one that seems to offer the clearest prom¬
ise in most cases is for the planned expenditure of

tion of goods and services naturally

Corporation

Chemstrand

Chemstrand Company, a

triggered

increase

partment, to administer the development and . marketing
product,

one

demand for oil and

the

say

^^pected to bring

company's operations in 1962

of The

merger
as

Economists

the

Stonington, Conn.
the

degree

same,

Solutions to the squeeze on

fiber

population surge of the 60s

facturing Company.

Interest in

being

;

included:

the

companies

easily found. There is no simple answer in all

pared with gains of 1.5% In 1961 and 2.2% in 1960. They
point out this rising demand is now

remaining 50% of Plax Corpo¬
Hartford, Conn., which makes plastic bottles,

into MOnsanto

interest in

continue and perhaps exceed the 1962 gain of 4%; com¬

by the end of the

Other highlights of the

acquired

Switzerland, Belgium and Luxembourg.

rise.

ously had been shared by Monsanto and Emhart- Manu¬

and

also

The domestic demand for petroleum

man¬

plastic sheet and film.

serious and troublesome problems.

WM. WIKOFF SMITH

Charles H. Sommer

oriented

and

apply
all

already

the

President, Kewanee Oil Company

important Monsanto acquisition

ration of

1963

for

ready authorized in regulations governing depreciation

the purchase of the

was

off

majority interest in

through Plax two associates in Germany and

year.

outlook

the

tries. Nevertheless,

for the production of spahdex
company in Israel was also
acquired by Monsanto. In addition, Monsanto obtained

ufacturing units at the new facility
were

not

among

as raw

All

higher

Diminishing profit ratios to sales
do

Spanish firm. Monsanto acquired Lansil Limited, a

light crude oil into hydro¬

converts

Monsanto

Monsanto.

Alvin, Tex. The chemical plant

near

that

area

Mexican plastics fabricator and increased its ownership

fibers.

Plant

time hold

same

proportionately

for

something less than encouraging.

another fiber firm j ointly

ex¬

*|kgJ[
ipy

profit levels. It is in this important

fiber company in the United Kingdom, and established

capital

Chocolate Bayou

the

penditures for 1962 were an all-time
high for a single year for Monsanto.
The largest single outlay in 1962
was

ciete

facil¬

company

ahead, per-',.1 )

healthy rate than in

sales: do not at the

its former 50%-owned French associate, now called So-

between $135 mil¬

expects to spend

well

year

promise

Overseas, Monsanto acquired

sales exceeded $1 billion for the first time
company's capital expenditures approached $165
millions.
Monsanto's sales 'in 1961 were $933 millions
In 1962, our

lions

support to the expec¬
as
consumer
sales will

percentage of all industry to present

and the

The

and coatings. Other

third expansion of production capac¬
ity for Gelvitol polyvinyl alcohol resin and finished a
new administrative office building in Springfield, Mass.

it spent $154 millions on new

Unfortunately, these signs of rising

Shawinigan Resins Corporation/another Monsanto as-.

CHARLES H. SOMMER

and equipment.

high ground in 1963.

new

industrial

a more

1962-

that

haps at

The

annually.

investigation and development of new polyurethane

and
-

President, Monsanto Chemical Company

ities

tation

material in the manufac-

raw

ture * of urethane foams,/elastomers

sociate, completed

and in the same year

into

move

diisocyanate was being boosted

basic

as a

con¬

Produc¬

busi-,/ expansions were under way at the location/
> *better job if
At " Pittsburgh,* Pa., Mobay opened a - new research
7 \
center which doubles Mobay's laboratory facilities for

relationship between our great volun¬
business system and our free, democratic republic
be maintained, 1963 should be the greatest year
this sacred

Company

expand at New Martinsville, W. Va.

from 50 millions to 70 millions of pounds

security.
lems

SNYDER, JR.

President, Blaw-Knox Company

increasing indications that the nation's econ¬

are

will

omy

Chemical

Mobay

tinued to

CORDES

These economic indicators lend

of the need to become involved in
domestic affairs. It will be free to handle its pri¬
responsibility

There

plastics products.

federal government

Thursday, January 24, 1963

Chairman and

terpolymers—used in the manufacture of

molded and extruded

styrene-acryloni-

and

copolymers

of plastics—Lustran

family

new

styrene-acrylonitrile

overburdened

cooperation relieves our already

Such

'• :

,;7N-,''.-:;V A'Vh :v

annually

pounds

together

with

the

import-control

realistic tax policy and fair prices for crude

oil should be the key to

our

continued growth.

For 1963, I look for another good year

in home enter¬

tainment electronics with total sales reaching about $2.4
billion. In

TV, I would expect that black-and-white set

sales might closely
color

contribute

about

50%

nearly $200 million to

Home radio and
.

approximate those for 1962. I look for

increase

600,000 sets, and to

consumer

sales volume.

phonograph sales should closely

Continued

approx-

on page

Volume 197, Number 6232

V, The Commercial and Financial Chronicle

Continued from page 90

New Directors for

imate

Corporation

the

Electronics

Fund,

Smith

director

Inc.,
of

and

space

insurance companies and for¬

merly

was .President

Casualty pompany. ,;
,
.5
John Lk Porter, Jr., Vice-Presi¬

Shares,

elected

w a s

Executive

expenditures increase:

Vice-President of the management
firm at the organizational meeting
of the directors following the

dar year 1964.

of problems

Cooley and Robert D.

Michels

board.

Directors

who

resigned

•

from

reelected

the: "

Hawkinsorl

was

e c

Company, Des Moines, Iowa.
is

items

presi¬

with

director .of

American

surance

Home As*

Home

Insurance

Owners

n6t

surprised to

see

the $5

pass

increase
,

of^ components, 1962 ^"yyas

even more

elected

was

sharply in 1963.

the

reach

member of the firm's

arid is

management committee

the

•,,

annual

Hawkinson

•

meeting

expressed

lit

most

development^?
*

'>■

I. MELVILLE

President, Leeds

•

'V"•••

should

equal,

and

may

'v.*

prices

the

$14.5-15.0

tude

Officers

- are

«;

Se¬

the

cor¬

can

our

tion that the industry is

HEMPSTEAD, N. Y.—Richard J.

basis.

There should

ample,

have

the

is
to

seem

with

methods

during

and

1963

satisfactory profit.
by

'■

and

the

have

very

our

little refinery building, for
capacity already too great

new

ex¬

for

on page

have
at 414

Street, under the
Mortimer

Hanly, resident partner. Mr. Hanly
was
formerly a partner in Ed¬

Filling, Land Reclamation,
Canals and Port Works"
River and Harbor

con¬

only

show,

are

equipped to; execute alL kinds of dredging, reclama¬

tion and port

Bethlehem

Steel

steel

on our

programs

business.

Contractors to the Federal Government

Correspondence invited from Corporate and Private
Interests

make

Other

new

ahead.
.»

•«.

Another

near

important steel companies

similar

modernization
.

V
-

significant

•

moves

«'•*. A

factor

.-'r.

the

planning

during the

'::''

*•••'.

are

year-

VJT' ..r-o.'

electric

Longest Experience if

should

Chicago in spite
of over-capacity in the steel industry is a
good example
of the industry's determination to raise
production effi¬
ciency.

Everywhere

im¬

The recent

Company to build

plant

work anywhere in the United States

type made
very

Ship Channels

in¬

machinery

Improvements, Deep Waterways

and

year.

that

and

play

company

favorable effect

opened

The

recogni¬

already well equipped to meet

Continued

Industrial instru-

modernization

$250-million modern

.*$■;•

1963.

industrial

Stock

wards & Hanly.

reflects

resulting increase in operating efficiency. Ac¬

cordingly,

York

existing

during

that

before:,

never

bene¬

fiscal

ments aRd controls of the

I. Melville Stein

decision

management

reduction

With 1963 demand expected to rise only 2% (or less,
by some estimates), the cautious approach is justified.

they hope to compete in world

markets

Buck & Co., members of the Ne#

Franklin

expenditures

demands in the immediate future. New ventures and

portant part in the modernization of industrial processes,

North

oil's

planned

through the most modern, efficient
can

| ' New Buck Office |. 1'

office

life

to prevail.

factors

business

factor

leaders
as

production
•

investment busi¬

branch

atti¬

market

for the first

several

important

vinced,

Wagner & Co., in Columbus.

Exchange,

Edward L. Steiniger

comparable period of

believe

dustrial

Wagner, Vice-President. Mr. .Wagner formerly con¬
own

realistic
of

low

One evidence of this—and another

This expectation

and

remainder

his

that

petroleum

plus factor—is the expected 6% cut

ending May 31, 1963
possibly exceed, orders

the

effect

One

.Raymond

Herbert O. Johnson, First
Vice-President
and
Secretary;

ducted

realize

increase

year

year,

ficial

lirer;

ness,

which

STEIN

incoming order rate

equalled

"Johnson, President and vTreas-

Robert

now

not

about the facts

seems

billion

Northrup Company

very

which
*' '*

Ohio---Capital

how doing business

men

consumption.

five months of this fiscal year, which

curities Co., 44 East Broad
Street,

poration.

form

1962

J.Now- Corporation

COLUMBUS-

Tacilities will be undertaken only on a highly selective

received during the previous year.
based in part on our

•^ ./>
*>

Incoming orders for "our fiscal

last
;>

tangible

late

Arid if this caution I remains constant in the; year, the

w* ?' *•
••••if rnW/t

u-r

■

'if

took

Mr.

constructive

-.V"? •'•"

'e.

refined

growth-nourishing profit. Also,
there is the intangible "feeling" that

l iu

of the gain will naturally depend
upon overall business
trends. ■
>;■■>£ .vfe: ■

purchase 40% of the 1,018,500 out¬
standing ' shares
of
Television
was

the

demand.

manage¬

ment's opinion That the agreement
of Kansas City Southern' Indus¬
tries, Inc., Kansas City, Mo., to

,v:

headed prices back to levels essential

magnitude

director of Consolidated Financial

Corporation.

into

»/■?«,".

The principal unknot is the ^t^ at whicti lbrger
total military appropriations will ; be translated
into
actual deliveries of electronic equipment' arid parte.

president of Television Shares in
1958; He is

back

and order

reason

1963, I look for total electronics

factory

'/i

;
As to our other markets, prospects are favorable for
increased sales in each of them, although the

vice-

coming

indications

billiop

a good year

•

movements

range*

Porter

products in that country.

product price structure. In part these

For all markets in

volume

min Allen & Co.

'«

are

these, areas, was stepped up noticeably during
the year. Complex components volume
approached $200
million, compared to $145 million in 1961, and should

Life .Insur¬

Company, Commissary, Inc.,
Chicago Capital Corporation, Selective Investors, Inc., and Benja-

most oil

For the maker

work in

...

ance

Mr.

our

The prime plus is the indication
that

nominal gain

'increasing

Sinclair; Oil Corporation

ized packaged assemblies and integrated circuits of
vari¬
ous types was
widespread, and the tempo of development

Com¬

show only:

may

means

scale.
,

$3.7billioncompared, tb $3.45 billion in
1961. Interest in the possible applications of miniatur¬

Owners

pany,

market,

Weighing the plus and minus prospects in oil's 1963
outlook leads to a reading on the
optimistic side of the

reached about

Company, Combined In¬
Company
of. America,

surance

Home

that firm.

this-

with demand holding fairly steady in all of the
major
end equipment
markets, and dollar sales of components

dent of Continental Casualty Com*
pany in 1959 following 34 years of
service

E. L. STEINIGER

figure by 1970.
•

resigned

would

Company.
Smith

market

President,

overTS62., r look for total industrial electronics to ex*
ceed $2.6 billion for the. year, and for the
longer term

Supply Company • and Pioneer PiMr.

control

company

to manufacture and

again showed the sharpest increase to about $970 million,
compared to $850 million in 1961. The outlook for the
industrial market in 1963 is quite good, despite the fact
that plant and equipment spending, which affects
many

including Central Life Assurance
Company, Chicago Great Western
Railway, Mid-America pipe Line
Company, Association Stationers
nance

and

To take full advantage of this
situation, we have
new plant for our British com¬
pany, and; also have Established a new Italian

1961; nevertheless, all important segments
a 10% gain, from $2.2 billion to
$2.4 bil¬
lion. Computers and related
data-processing equipment

director of several companies

•

are

recently acquired' a fine

contributed to

previously as
Vice-President, Treasurer, and a
director of Central Life Assurance

which

year.

increasing dependence
military business particularly the need for close at¬
an

recorded in

He served

;

company's

Although economic expansion abroad may be proceed¬
ing at a somewhat slower rate than in the
past, we
expect that our foreign business, which has been
grow¬
ing steadily, to continue its growth throughout the next

at this time last year, the industrial electronics market
in 1962 showed a smaller increase than the 19%
gain
•

our

operating efficiency.

number

are

giving a great amount of attention currently, to
improved

'instrumentation

;

to costs and to the search for
ways of applying
techniques learned in military electronics to; the
development of better commercial products. As expected

President of Television Shares last
October.

must be alert to

products resulting from

new

However,

new

industries—industries

•'

associated with

programs

Some of these have been
specifically aimed at the ehenK
ical and other process

•

tention

were

Chester D. Tripp, Chairman; Mr.
Porter; Russell H. Matthias, Secre¬
tary, and Courtenay C. Davis.
Mr.

For the present, our industry can
.certainly look Tor
higher shipments of military and "space electronics
through calendar year 1963 and probably through calen¬

stockholder meeting.
The two new directors succeed
William H.

being

electronic gear will be procured by NASA in
1963, and
that- amount is certain to grow in later
years as space

director of Television:

also

are

space

research ^and development
programs
are
now
being
marketed,, and should help our incoming order situation.

expenditures,- the nation's

administered by NASA -

and

business.

Numerous

programs

missile

move

Accordingly we expect this govern¬
activity to have a favorable effect on
Leeds & Northrup business
during the coming months.

stepped up and ' will increasingly affect the electronics
industry since at least 30% of the space budget goes for
electronics.: Thusy approximately $750 million worth of

-of Continent,

tal.

dent and

pany's

rising percentage of electronics in total defense,

Aside from military defense

Mr.

number

the

government's

ment-directed

contributing

spending.

Television-

our company's measuring
systems, which constitute an important part

ahead during the coming year, per¬
haps at an accelerated pace. These programs
require
the use of highly precise
laboratory instruments which
Jhave always been a significant
segment of our com¬

Defense

and for operations and maintenance are also

management and under¬

firm' serving

The

industry's volume. Department

our

heavily electronic categories gained even more. Expend¬
itures for research, development, test and
evaluation,

kinson is President of Television
a

expected to

nearly 60 % of

good volume of business for

and control

procurement of military equipment of all
types increased 10% in the 1962 fiscal year, and certain

meeting of stockholders
held in the company offices at 120
South LaSalle Street. Mr. Haw¬

Shares,

of pur business.

annual

writing

ed for

elected

were

directors of Television Shares

Management

dustry's program for increasing generating capacity, and
extending system inter-connections. This should provide

be off

may

Military and space electronic deliveries increased in
1962 to $7.6 billion from $7.0 billion in 1961, and account¬

CHICAGO, 111.—John Hawkinson
new

also, while auto radio volume

somewhat In line with generally expected production of
about 6,500,000 cars.

Television Shares
and J. Milburn Smith

1962

(379)

power

in¬

Atlantic, Gulf and Pacific Co.
NEW YORK 38, N. Y.
\

;

15 Park Row

BArclay 7-8370
Cable Address:

HOUSTON 2, TEXAS
Citizens

State Bank

CApital 4-6091

"Dredging," New York

Bldg.

The Commercial and Financial Chronicle

(380)

Continued from page

efficient finding, drilling and producing
techniques
through regulatory changes which will provide for
wider spacing of wells and for the
pooling of producing
more

product inventories which it carried into 1963. i
Petrochemical demand should increase about 5%, but
...

efforts.

directional

creases.

the possible

the air

leaves

itself

ing to the oil industry is discouraging. The 1963 import

without seemingly

continuing

assure

call for

Solution of

.^in

efforts

enlarge

place

her

Coast refiners and their
cost of

stability in the industry, coupled with ohr
us in the last part of 1962

sharp

throughout

experienced in the early
This rising situation should continue

aided

sources

continuing

our

petroleum

of revenue for the company and

SUPPLEE, JR.

ulation

President, Atlantic Refining Company

eral economy.

volatile, and

proves to be the case,

1963 will wit¬

favorable trend in oil

ness a

likely

that

domestic

mand will show

increase,

de¬

from

average

the past

aided by a

half decade,

was

of sales of new passenger cars and by

our

present fields.

Abroad,

colder-thah-normal winter tempera¬

Supplee, Jr.

unlikely that advances in the general economy

ing the 1963 agricultural market. In

total we expect little

change in the net 1963 farm income. While uncertainties,
such as weather and the effects of government programs,
major elements of this forecast, we look for a con¬

are

tinued high-level farm

income.

With farm equipment tending
of

our

total farm

investment,

continue to be one of the

feel offer partic¬

to be a larger percentage
look for this market to

highlights of our total business

picture.

project

gross

-'y

income to be

farm

slightly—

mainly because of higher government payments under

1962's farm

the

legislation. While

unlikely-—growth in
national product may be held to less than one

■

foresee higher farm

should

anticipated.

;

Foremost

one-and-one-half per cent in 1963. The momentum
of auto sales can be expected to

some

among

these

Industrial—Although American industry

as a

whole is
ca¬

duction with less upkeep, have focused business sights on

was

New

depreciation rules, the investment

tax credit plan and promises of tax cuts should help cre¬
ate a favorable business profit climate necessary for con¬
tinued growth in this broad area; Private surveys

reveal

industry plans to spend three to five percent- more in
1963 on new plant and equipment.
NORMAN R;

re¬

SUTHERLAND

President, Pacific Gas & Electric Gompany

port by the National Fuels and En¬

help motor gasoline to

Slightly increased production expenses
on balance 1963

offset the higher gross income, but

probably operating at something less than 85% total

developments in the past year have
provided
grounds for optimism that
long-standing problems facing the gas industry may be solved or
clarified during
1963.
&

rise

are

should be at least equal to 1962—a high income year;

President, Northern Natural Gas
Company

hand,

1962.

same as

may

Certain

recent surveys suggest that this is

other

with largest

going for highway construction.

Agriculture—As one of the top farm equipment pro¬
have a vital interest in forecast¬

WILLIS A. STRAUSS

Unless consumers and businesses alike find an
earlier incentive to increase their spending levels—and

the

modernization.

year.

Chalmers

ducers in the nation, we

and other growth industries.

demand,

pacity, competitive pressures, requiring lower cost pro¬

expansion, but action
tax cuts will
probably be delayed until late in the

Petroleum

currently evaluating opportunities in chemicals

reductions in Federal income tax rates could provide a

per cent.

A11 i

—

construction contract awards to show an
the order of five to nine percent. Most of

dollar increases

much needed stimulus to economic

gross

while

turbo-generator

Therefore, cash receipts from marketing should be about

lantic is

real

equipment

new

marketing volumes, lower price levels

during 1963 will equal those realized in 1962. Proposed

down

Atlantic's refining,
marketing and transportation op¬
erations are being streamlined to
operate at a high degree
of competitive
efficiency.
At the same time, we realize that
the lower rate of
petroleum growth in the United States has
increased
the need to develop other
investment opportunities. At¬

tures.
seems

distribution

will

transmission

Sahara.

strong economic recovery in the early
part of the year, by a favorable level

which

areas

sales

increase will be in the public sector,

the

provide almost

emphasize

machines

country's utilities

1963

Construction

increase

will

year—-with

bigger

looks for heavy

aire pursuing ex¬
ploration opportunities in
Australia, Libya and Spanish

con¬

siderably better than the

last

toward

sales.

R. S. Stevenson

promise—offshore Louisiana, Alaska and Canada.
In addition, we have under
way programs of workovers,
recompletions, and installations to increase production

annual growth of

about 4% in 1962. This

producing,

electric

for

orders

same

our

holding

its transfer back to the coastal

ular

in, it is

petroleum

participation in those

profits.
When the final reports are

5 and

as severe

investment in it.

industry

enlarge

processes and *<ttewi materials 'for a
rripidljf expanding
;Cpmplex of petrochemical products. V:v ; r
Atlantic has great confidence in
the future of the do¬
mestic petroleum
industry and will continue to increase

higher overall than in 1962. If this

the

trend

tion

competition and Federal reg¬
not strange to the oil
business. Even so, oil,

are

New

continuing. Nationwide interconnec¬

rising

transportation, heating
coolfcig^for ofufrhbmes;ni)oWer for our industrial

and

somewhat

average

the

energy requirements. As
nation grows, oil and gas will be called
upon increas¬
ingly to supply energy for our

Moreover, the economic lessons which the

industry appears to have;- learned during the past
months suggest that prices may be
less

about

East

our

faster rate than the gen¬

customers, however, is

natural gas and natural
gas liquids now
three quarters of the nation's

1963, the consumption of petroleum products in the

United States should rise at

concern

refiners where it is needed and used.

Problems such

great

raw materials as their economic access

crudes but profit from

reducing operating costs in all quarters.
HENDERSON

would probably Come

generating units are expected to be

increasingly redirected away from the Seaboard refiners,
who historically have been
dependent on imports, into
the hands of inland
companies, who seldom use foreign

success

Important

result of price level im¬

paratus.

re¬

foreign crude oil is curtailed. Under existing import
regulations, the right to import foreign crude oil is being

profit dip

1963,

developing new

only

rising sales volume, enabled
erase

billion.

$2.2-$2.3

this industry

Hopefully, some
corrected, over time, by

feeling of optimism on industry affairs
be applied most specifically to Sinclair's prospects

months of the year.

about

strictions also leave much to be desired;
of their shortcomings will be

The general

changes in the administration of oil import

administrative interpretation.

in 1963. Price

generation,Vtransmission' Arid

equipment market will probably remain at

provement for heavy electrical ap¬

Recent

aggressively, and Amer¬
companies must have government support to fight

effectively.
can

distribution

1963 dollar volume sales increases to

the

world's oil markets must be met

ican

price

requirements.

well being.

Russia's

anticipate

industry, its customers and friends must
press for improved gas legislation in 1963 if future
pro¬
duction is to be developed; to meet
projected consumer

rapidly than in this country, increasing by about 6%
1963.

in natural gas

major markets for 1963,

our

following trends:
Electric Utilities-*Thb'

The petroleum

Abroad, petroleum demand will continue to grow more
in

Looking at
the

regulations in 1962. None of these has been shown to be
an adequate substitute for the
operation of a free market.

relating to the oil industry, efforts which will
strong countermeasures by all concerned with

the industry's

were made

STEVENSON

President, Allis-Chalmers Manufacturing Co.

a more

ing experiments which

change present percentage- depletion pro¬

individual

own

industry.

industry's problems will re¬
sympathetic understanding on the part of
government officials. A case in point is. the disappoint¬
quire

their

By all indications, 1963 appears to be another year of
progress for the. gas

of the

some

In addition, many

position.

our

research projects.

sup¬

cutting.

cannot use, but which they can exchange

Congress

projects will receive emphasis in 1963 on a

in strengthening

role

reason to believe;
however, that the ex¬
perience in 1962 has brqught An. .awareness of the. farreaching effects of market responses to irrational price

pleasing the domestic producers. The only possible bene¬
fit accrues to those refiners who receive import quotas

visions

for the industry

regulators and legislators.

companies wil continue to carry

profitably; This year will: see ' strong Efforts made

well

Research

plies. There is

companies which have made heavy investments abroad

which they

cooperative industry-wide basis. A11 industry-wide pool¬
ing of talents, efforts and money can play an important

ways

lowest possible price which will

regulations announced in December continue to penalize

encouragement)

determine where the

It is hoped this self-analysis by

from.

in oil marketing must, and
certainly will, continue to
provide the American consumer with oil products at the

benefits "of

picture of the government's actions relat¬

(with government

come

the industry will set up some guideposts

drilling and gas-oil ratios.

growth and

future

industry's

responsibility for find¬
to live with surplus capacity falls squarely on
the shoulders of each individual
company. Competition

ing

higher sales.
The whole

supply will

In refining and marketing, the

sales will continue to grow in 1963—on
the order of 6%—but uncertainty about federal price
Natural gas

regulation

the

nation's future gas needs and

Our

equitable and

as reporting is improved and controls are
tightened with respect to such factors as marginal wells,

supply and surplus plant capacity for most
petrochemicals, there will be few price in¬

with ample
common

Prorationing will be made

Thursday, January 24, 1963

The Committee is attempting.,to project

development.

effective

concerning

answers

and

high

industry should be able to draw down some of the

ergy Study group appointed by the
U. S. Senate's Department of Interior
and
Insular Affairs.
The

Active construction and

forthright stand against government

Electric Co. provides

colder-than-normal weather

control of the

industry

of 1962.

enheartening.

show
such

gain of two per cent

or more.

Specialty products

aviation turbine fuels, liquefied
petroleum gases
and asphalt will do better.
Burning oils, however, may
as

not exceed

1962 levels unless

as they were
through most
Projected petroleum demand can be met by do*

mestic crude oil production and

tenths of

one

per

are

not

portantly
its

volumetric

growth alone

how well the

excess

capacity

but

onstrated

rate

im¬

long-term

growth

rate

lower than that of the
recovery years following World
War II. The adversities of
recent months have focused
attention
which

the

promises

industry's
to

bring

proaches to their solution.
An

example of this

both producers and

basic

forth

problems

constructive

some

the

measures

regulatory bodies to

being taken by
reduce produc¬

compatible with economic
producing practices. The
year should see significant
achievements in these

coming

directions.

Cost

reductions

;

record

•.

months.

solution

problems.

will

attained

through

273,000

over

last

get

are

even

that

greatly dependent

increases

intense

awareness

regulatory

upon an

the prospects

During 1962
ments and Gas

airing

future

for

A.G.A.

during

4 million

supplies of natural

•

Gas

persons,

estimated

gain of 3.4%

in the 47 counties in

company's service terri¬

N. R. Sutherland

customers in all categories

service by

the end of this year.

Manufacturing employment is expected to rise about

The

4.2%

gas

equitable pricing solution
answer in 1963.
'

Committee

is certain

1963.

63,000 new ^lectric customers and
56,000 new gas customers to our
lines, bringing the total to more than

There still remains the
perplexing problem of regula¬
tion of natural gas
production. Area

growing

increase

gains

substantial

tory is located. We expect to connect

exceptional

business

year

year,

which the

Strauss

hopeful that the newly formed Nat¬
Council may make substantial con¬

equitable

Population

200

recent

the

provide

satisfactory

1962, a
growth.
? .'

Advisory

and

over

cases

and

this

area in which Pacific Gas &
utility service. The agriculture and
area
are
broadly

stability. The region is expected to

Commission has

months

econ¬

central; California

diversified

pricing

ing costs and to revamp
prorationing laws to make them
more

Power

addition, I

tributions
•••v

ap¬

was

by settlement of 50 major

ural Gas

way

fuels

Progress has been dem¬

cases

producer

industry has learned to live

and

Federal

couraging.

petroleum .industry's 1963 profit performance will

depend
with

delayed until after midyear.

attacked the back-log of
rate, certifi¬
cate and producer cases is most en¬

maintained,' increases in operating

The

the

If balanced in¬
<

rates will need to be

use

Certainly, the dispatch with Which

refinery operations fivecent and eight-tenths of one per cent

respectively above estimated 1962 levels.
ventories

end

healthy growth of the

expected to continue in 1963 in the northern,

are

and

report's

■

they are again helped by

omy

litan
I

use

five

areas

northern

and

California

central

retail sales of items

tax to rise about 5.2%

metropo¬

subject to sales and

above 1962

in the 47-county

Require¬

Supply made long strides toward finding

region. Personal income will be
in

California

expand

its

whole.

the

The

state

nation's

estimated 5.5%

will

economy

continue

and

should

Number 6232

197

Volume

account for an estimated 11.2%

income during 1963.

The Commercial and Financial Chronicle

of the national personal

Residential construction will continue at

high level,

about

2% over 1962, with a somewhat higher rate of.
improvement registered for the full year. Natural gas

Commercial buildings,

schools* and public build¬

ings and institutions will add to the volume of construc¬
tion. Investment by the
and

manufacturing industry in

plants in the region amounts to about

expanded

$300 million annually.

& Electric Co.

Pacific Gas

will invest

estimated

new gas,

exceeds all

previous annual capital expenditures of the company, i
in

Included

this

program

eight

are

major

electric

generating projects in various stages of construction,
hundreds of miles of electric and gas transmission and
distribution lines, scores of electric substations and gas
control facilities, and many new or modernized business
offices and customer service centers.
Of

represented by the eight projects in our active schedule,
nearly half a million kilowatts will come into service
in the first part of the year.

Anticipated

new

starts will

make up another half million kilowatts of the total;

The company's gas system is now capable of serving

demands substantially greater than the record peak day
sendout of 2% billion cubic feet which occurred in

January, 1962.
PG&E, in

In regard to capital

pate

world

common

with the American investor-owned

oil

demand

provide

ahead of

facilities

the

required

for

demand and will continue to

public
do

and

President,
In

attempting

mand in the

10%

standing the continuing publicity on
possible relationship between
cigarette
smoking and health, a

Oil

Company

to evaluate the

sales

record

levels

earnings also showing improvement

over

steady addition of

stream and
will

tire

send

new-car

high in

1963.

Shipments of tires for all motor
vehicles,

conservatively

stimulus of

the

with

7.5

project that

ment

auto

new-car and

tire

shipments

half million units

1962.

for

this

total,

million

1963, which will set
As

E. J» Thomas

even

healthy

are

faster growth is

a new

The

Nevertheless,
tional

gains

Product

believe

in the first

should

will

both

in¬

million

first

half

This total tire market is

show

recession should begin

half, the

year as a

gains

whole
1962,

over

though probably on the order of 2

Swearingen

to 3%.

With

normal

pared with
that

first

weather

forecast

colder period

half

for

year

1950

early

1963,

1970 is expected to

will

run

estimated
now

fast,

has

some

rubber

company

successful

consumer
promotion,
the
SWEEPSTAKES, has just been

business through this

important channel of distribution.
Steps have been taken* to improve distribution through
vending machines. A national college program, "L&M
are other special pro¬
being undertaken to help improve the company's
share of business.
,»

grams

i Our

currently.

export sales continued

make

important

contribution to the company's total business in 1962 and

units, and by

hope to gain

an even

larger share of the expanding

export market.

every

foreign

though current

foreign assets is adversely affecting

profits, but the long-range outlook is

During the recent
pany made more

year every debarment of the com¬
than the usual effort to increase the

efficiency of its operations resulting in a stronger and
better coordinated total organization. Management has
continued to put great emphasis upon quality of product,
the right kind of advertising and a strong sales
organ¬

most

encouraging.

ization.

Continued

Jules Haft to
PROVIDING RESOURCES FOR

Form Own Firm

CONSTRUCTION, RESIDENTIAL, COMMERCIAL,

Jules G. Haft, member of the New

INDUSTRIAL AND MODERNIZATION

York Stock Exchange, will form

MORTGAGE

Jules G. Haft & Co. with offices
at

BANKERS

MORTGAGE LOANS

Broadway, New York City,

effective

Feb.

Mr.

Haft

partner in Sprayregen, Haft & Co.

BestFinancialPrograms
•

f';

i .%■

yy*»'•£

FLUSHING,

* v-y

N. Y.-^Best Finan¬
Inc., is conducting

cial Programs,
a

securities

at 75-35

Imetra

business from

Mortgage Loan Portfolio

(In millions of dollars)

offices

SACRAMENTO

SAN LEANDRO

Co., Inc.).
*/Y'Y

'•>'

ff j

SAN CARLOS

I N. Russell Adds
J.

SAN JOSE

CLEVELAND, Ohio—Schuyler S.
Haskell

has

with * J.

FRESNO

Stock

,?■

become... associated
Russell

Co.,

BAKERSFIELD

Inc.,

Union Commerce Building, mem¬
bers of the New York and Mid¬

kell

Thirty-first Avenue (c/o

Vjy?<r*Uri-- v-'-v-y"

west

***>■

>#r>

•y*.

LOS ANGELES

Exchanges. Mr. Has¬

ANAHEIM

previously with Fulton,

was

Orange County

Reid & Co., Inc.

LA JOLLA
San

With Braun, Monroe
MILWAUKEE,
Melzer is
roe

Co.,

was

shall

now

Wis.—Edward
with Braun,

735 North

Co.

and

Thill

Corp.*

Divisional Offices

Mon¬

Water

Diego

County

St.

formerly with The Mar¬
Securities

1958

1959

their

industry's

popular acceptance. And, there

112 million

market and will continue to do so, even

one of the

Grand Prix 50," was launched last Fall and is receiving

million

positions in

found the product to

being achieved

industry, by moving early and

established strong

means

L&M,"

domestic sales,

reach 190 million units.

The American rubber

com¬

it is probable

demand

from

program has been enthusiastically re¬
ceived by the retail trade and should help stimulate our

re¬

•

devaluation of

ago,

in domestic oil

gains

cigarette

merchandising

than

and Communist bloc countries has increased froth! T5.'6

Na¬

made progress

record.

foreign markets. Auto registration outside the

Gross

and

the 1962 period of about

over

5%. Even if

J. E.

production

Lots

Company's special marketing programs have
during the past year. A new supermarket

our

(

dustrial

"When

get

redesigned to emphasize "KING" and to distinguish the
carton from that of CHESTERFIELD Regular.

replace¬

concluded. The CHESTERFIELD KING carton has been

placement auto tires will be required

different kind

still

record-

industry will reach 116 million,
about

segments of the economy. In

Using

and

CHESTERFIELD KING

base,

but

million

million.

con¬

Russia

provide

recession

about

year

good taste in these brands. We say, "CHESTERFIELD
KING tastes great
because the tobaccos are."
An

sales range

new-car

addition, a minor
a possibility.

fore¬

million

servative 6.5-million figure as a

coming

tax cuts,

are

138

advertising for CHESTERFIELD and CHESTER¬

extensive

breaking

other hand, there is still the chance

some

re¬

FIELD KING has emphasized the fine tobaccos and the

units.

(Indiana)

rule out

The

aircraft and

industrial equipment in '63
cast

service

growth brands. This is important, because it has im¬
proved our position in the expanding filter market, one
where there is a great potential for future growth.

sales

shipments to

all-time

1962 has been

liking. L&M King Size has become

drivers to the nation's traffic

lot,

and has

expected banner year for

from

confrontations

1963, with

those of 1962.

THOMAS

new

laboratory.

significant progress during the year.
The public has
responded to the ad¬

Chairman of the Board, The Goodyear Tire &
Rubber Co.
The

yet

preparation for future growth

vertising,
J.

has

research

Our L&M Filters brand has made
re¬

Zach Toms

face some problematical factors which cannot
be measured at this time. Among these is the
possibility
of a tax cut of undetermined nature and extent. On the

new

the

by continuing to strengthen our sales
department, improve our advertis¬
ing and refine our marketing plans.

particular,

Against this background, I expect oil
production,

year, we

which might

solid

been increasing about

should insure continuance of this trend.

With us,

and the needs of the expanding economies in
Common Market countries, Japan in

the

which

question
solved

investment

in the recent past. De¬

free-foreign world has

so.

outlook for

for

a year,

SWEARINGEN

Standard

from

the U. S., antici¬

expenditures

Predictions of

JOHN

increase

year. Exports continue to increase. These
industry trends have taken place notwith¬

the 1962 level. Both

over

abroad should continue about

utility industry generally, has demonstrated its capacity
to

expenditures in

increase of about 2%

-i:

should

con¬

highs for the eighth

new

consecutive

favorable

to 2%.

fining, and

than 2 million kilowatts of electric capacity

nevertheless

Co.

the

otfier facilities. This estimate

and

sumption for 1962 constitute

liquids and irpports will take part of the gain, but crude
production should

Myers Tobacco

Total U. S. cigarette production and total
domestic

Domestic crude production may not increase as much
demand for refined products because natural gas

„

$238 million during the year for construction of
electric

new

ZACH TOMS
President, Liggett &

consumption should increase about 5%,

approximating 88,000 dwelling units in the PG&E service
area.

(381)

1960

1961

1962

HOME AND EXECUTIVE OFFICES
3223 West Sixth St., Los Angeles 5

STATEWIDE OFFICES

page

The Commercial and Financial Chronicle

(382)

Continued from page 931

LYNN A. TOWNSEND

•

President, Chrysler

the fourth

often is
reflector of the general trends of the econ¬

accurate

multi-industry nature,

its

Textron

The forecasts of the division managers of

omy.

year for

should

This r

1962 and

this

period

previous
1,120,000

of .1961.

retail

that

reception given to the new automo-• •

including. about 335,000. imports.

models

bile

supplying the spark

f which should

new-car

these

sales

that

with

1962,

reasonable

195,000
R. C.

half of the year. The Gross

National
Product should rise to approximate¬

Thompson, Jr.

This is also
sales for

trifle

ly $570 billion, with, company earnings ratios a

ally may find its most solid optimism for 1963

and the

increasing ; faster than

>■ are

productivity.5 A •
rising costs of

rates is showing

improvement.
It may be

able to end

increased

debt

reduction, new plants or more
This trend is already at work.
A

hopeful prospect

the first steps taken towards a broad pro¬

may see

of federal tax reform. If this is accompanied by a
halt in the rising rate of government spending," it could
send business into 1964 at an improved rate of activity.
gram

•

Tishman

Realty

Construction

will-

tapering-off period "of construction for, both
apartments' and commercial office
buildings ih; New? York City, J
.
'■
v
It will be a period in which the
usher in

industry will complete its construc¬
tion cycle which has witnessed boom

since its inception in 1947.

years

■

1963

of residential

attributed

comers" in the

has

been

desire to
the

new

created

office

The

with the supply.

months

will

sales

quarter production

experienced by the

surge

enthusiastic

period

in which the

available residential" arid •commercial, space

will grad¬

acceptance of the

1963 models.

cycle which should

commence

pre¬

in early

1965.

Thisenthusiasm"of car buyer# for' the

sterile

Realty believes that during the intervening

months

of'little

high-rise apartment

and

sky¬

construction, the resources of the labor pool and
availability of capital equipment will be rechan-

scraper

the

nelled

toward

construction

middle-income

With

the

continued

clearance, there is

and

accelerated

effort

for

slum
re¬

newal programs will represent a long term
engagement
with no end in the immediate future.

Architects

and

designers will direct their talents to

accommodate the needs of middle-income
grams.

housing

pro¬

highly

purchase of

1961 is good evidence of a

truck

companies which will have ample funds to invest

mortgage

money

for

well

TULL

predictions

corporation

necessarily make these predictions

projection,

This

Cummins

know

different from

the

outlook.

reflects

ical conditions in the world and the

modern phenomenon of shorter and
less severe fluctuations in the busi¬

This

cycle.

ness

change

itself

for

the

team

business

alert

management

short-term

make

decisions

within

overall plan and, thus take

advantage of the prevailing economic
m00d'

These include the paradox of

the -.availability

cars,

these

favorable
a

factors for

the

rapidly approaching 5 million units, and in

private transportation

few

years

one

—

conceived

developments.

increasing

progress

the

manifestation of this in¬
number

'After

the

However,

building

greatly

im¬

proved nation-wide system of highways is providing a
further encouragement to the use of cars and trucks.
mentioned

make

promise for the automobile industry. It is
also a year of promise for business
generally. The high
levels of employment and
income, the atmosphere of

continuing

there

in;
are

common
problem

record employment,

sizable

general

deficit

our

1962* new car sales

well, experience

dicted).

is concerned, there

bit this year (although styling changes
good for All companies and the auto industry

have been
may

economy

strong market in

very*

be off

weaker

downturn

than

pre¬

Home-building activity has recently ? been drifting
most

moderate drop

housing specialists foresee

at least a

in starts in 1963.

Business spending for new

plant and equipment will

probably be curtailed in the opening months of 1963.
offsetting gains in government spending

and

but

the

economy

demand

consumer

progress

expect

for

soft

goods and

services,

whole will probably make little

through the first half of the new year.

renewed pick-up later in 1963, especially if

Congress goes along with Administration plans for re¬
duction

cars.

the

and

lower, and

creasing need is the steady growth in the

year of

spring.

last

There will be

families owning two or more

production despite the fall-off

potential soft spots in the short-run outlook:

some

may

this level will be exceeded.

need for automobiles. And

far

As
are

compared

To maintain the country's expanding fleet of cars,
replacement alone has been requiring a level of sales

1963

our

international payments account.

auto¬

number of basic conditions

(2)

(4) Continued

the U.S. economy. We have dem¬
ability to sustain record rates of employ¬

investment

and

passenger cars in use, as
with only 40 million in 1952, ten years ago.

the basic good health of

income,

mobile business, there are

venience

■-

■

yet disturbing pockets of unemployment; lagging capital

all combine to give us good reason to expect another
banner year fw the automobile business in.?i963:.;??; ? lv
to

confidence, the record high levels

ample credit at moderate rates for the purchase of

addition

E.D.TUU

The past nine months have proven

areas.

rapidly moving economic and polit¬

prices

and

October 31 for

make at this time.

can

changing

stock

employment

accurate.

com¬

and

This solid

would

ment

people buying motor vehicles

have

presents unprecedented opportunities

widespread f

men

executives

increasingly fashionable, but this frequency does

onstrated

consumer

opening

beginnings.

new

ments I feel I

16% ahead of sales in the ^

were

markets

new

parts of the world and with the growth of

have been

com¬

capital investment. And the fact; that truck sales in
months of

opportunity arising

new

with

confidence in the vitality of free enterprise, 11963
a year of great achievement and a
year of

1963.

petitive business' has had a powerful influence on the
recent surge in car sales—though it is not enough in
itself to explain that surge. And certainly the enthu¬
siasm of car buyers has little if anything to do with-the.

All of the favorable factors I have

Working capital will be readily available from insur¬
ance

research,

If you had asked us at

warranty j

(3) The continued expansion of the suburbs—together
with the growing preference of the public for the con¬

indication that the urban

every

not
-

housing

under the urban renewal program.

are

1963 will present the usual range of prob¬

many

become

heW^pmducts^

and services that have been created by our

mately 62 million

Tishman

•

the funds available

toward tax reform

moves

challenges. But with

Economic

variety-of models and equipmentpptions which-?
industry; has provided them—and they are; enthu-&

(1) The base of automobile usage and ownership has
been growing steadily wider. There are now
approxi¬

new

being made toward federal tax

are

E. D.

they like*

cars,

making for continued strong demand for motor vehicles;

opportunity to get its second wind and

for the

well

President, Cummins Engine Company, Inc.

Car

industry
pare

great

ually become absorbed. It will afford the construction
an

to individuals.

could well be

automobile in¬

siastic about the stretching out of the new^car,

increasing

of trucks will reach

dustry in the fourth quarter of 1962 is in part the result

evidence of

During 1964 there will be a period
"digestion" of office space and by 1965 the demand

total of 270,850

in the:? expectation of continued prosperity.

demand for commercial
Norman Tishman

The

well

of thousands of confident

space

zoning law and (2) to meet

will have caught up

it is hard to find anything
but optimism concerning the year ahead. During the
early months of this model year we have seen hundreds

space.

built in the fourth quarter of 1961.

improvement isv the

that the

scientific

a new

Among automobile

(1) beat the dead line on

the current

out

scheduled to reach

anticipation of continued favorable business conditions.

the industry's

lems and

qiiarter^ This is 50% higher than the 14,413 trucks

same

over-

that

see

The year

in October and November in our
are building another 92,486 units in

October and November

"new¬

reported

the

commercial

can

numerous

apartment house field.

Furthermore,
supply

buildings

the

can

fourth quarter since 1956. JWe
afscheduled to build- 21vl58 trucks during the fourth

has

keeping with the exercise of fiscal responsibility and
that they are designed to encourage, vigorous, non-

adequate dealer stocks,

boom in truck sales. A businessman's

The temporary oversupply during

improvement

promising. And businessmen should do what

the :highest jevel of any

residential

luxury

real

moves

quarter passenger car production in

U. S. plants is

the

For the- real estate and construction industry, 1963

this

plants and equipment

they

the wide

Co.

States

truck sales in the same months of

buyers like the appearance of the new

Chairman of 'the Board;

United

signs

talk

The

units, to make it second only to the fourth-quarter of
1955, when we built 368,720 cars.

NORMAN TISHMAN

Fourth

Our fourth

is the possibility that

1963

for

modern equipment.

plants, and

December.

the

pros¬

inflationary growth.

U. S.

our

reform are

built 178,364 cars

The new depreciation rates should provide
volume of internally-generated cash for

over

To meet this demand and build

expected that most U. S. corporations will be
1963 in a stronger financial position than

now are.

gain of 48%

strength and

nomic growth.

1961.

steady*;

increased

result of such expenditures to speed up the rate of eco¬

the retail sales

and November

October

Chrysler-built passenger cars total 160,266 units, as

;

source

for consumer spending on goods and services—and as a?

compared with sales of 120,851 cars in the same period
of 1961. This was a gain of 33%. Sales of Dodge trucks
in October and November totaled 10,695 units. This was

foreign producers. In certain areas the differential be¬
tween overseas and U. S. wage

whole.

margins, and it would seem that wages in most industries

longer

have experienced sales

slowed down,; if not actually ar¬
business are working hard to improve their

favorable factor in this connection is the

looking confidently, toward

apparently motivated by a sincere desire
to increase .the amount of funds available for investment

in the past decade—in 1955—when

Chrysler Corporation

the people of the other

are.

would give relief to business
This

gains in keeping with the trend of sales in the industry

beyond. It appears that the profit squeeze may•

rested. Most

1962 are expected to total 1,060,000.

once

rapid
Japan,

amount of talk about the need for taxireductions that

1962, yearly truck sales reached the million

only

well

clearest

Truck

1,012,000 trucks were sold.

have been materially

they

the year

Lynn A. Townsend

sales record for the period.

new

been evident; in public. Understanding
of-the; role? of
profits and the profit-energized free-enterprise system
in creating prosperity and economic growth. One of the

retail.

The "recent

expansion of competitive international trade and in¬

Here

mark

think business gener¬

It is in this latter factor that I

sold

private enterpriseand its importance

perity.

November,

and

were

prosperity of business ; in 1963, are
taking place in public

the

vestment as

Previous to

better.

years

trucks

countries

these

During the same two

October

months,

chance of an: increase in the second

free-enterprise; countries

heights,,

records.

other

many

Beyond these factors, and in some ways even more

-of

sales reaching

new

Mexico, and ItalyJias given powerful new? evidence con¬
cerning the vitality of free enterprise. And the, people

developments. The first six months',
;

barring. some? unforeseen

growth in

expansion of the economies of such countries

for

volume should be about the same as

into, 196,4,

for

in national And; international affairs.

there has been, a
tendency to overlook the fact that
truck sales have also been setting

been fac¬

of automobile sales—should also pro¬

right: conditions

attitudes toward
•

the 7 million mark—

With passenger car

solidly along

carry us

1962 will pass

availability

the

certain changes that, seem to be

iiow little doubt

There

the

important

1,386,000.

ly-predicted recession now does not
seem
to be shaping up; the sales

;

sold in October and November

cars

quite possibly better. The wide- ;

and

for

and

business activities.

whole in 1963.

above. the

is;well

record

strong prom¬

retail sales in Octo-

car

ber and November totaled

generally. Business

good

and for

company

our

firms

industrial

Passenger

vide

prosperity for the automobile business

and for the economy as a
>

that 1963 should be a favor-

section of industry indicate

1 able

this cross

quarter of 1962 are providing

ise of continued

confidence,

consumer

tors in the surge

Record high sales of both passenger cars and trucks in

Chairman, Textron Inc.

Thursday, January 24, 1963

credit at reasonable rates—all of which have

Corporation

C. THOMPSON, JR.

RUPERT

Because

strong

v•

for

income

tax rates.

business, our experience over the
on-high way truck industry, a
major outlet for our engines, is very responsive to
changes in general business conditions. Reflecting on
this, we now anticipate that business for the first quarter
of this year will be quite strong, possibly continuing at
the current high level. We anticipate that a mild setback
years

our

tells

owq

that the

Volume

in industrial

Number 6232

197

activity will hold

The Commercial and Financial Chronicle

ation materially advances the
tion, especially in the East.

down demand for heavy-

duty vehicles for: the. second and third quarter? of the

with

year*

strong comeback in

October* November,

All

'.ahd^Decoi^^
The

looks

market

L. P. TURCOTTE

; 7

of B&O as

studied. There

anticipates gains in other diesel applications, especially

industry both in the; domestic industry

paper

the thoroughness of the Commission's consideration.

with

continued

of "V"

acceptance of the

lines

new

healthy upturn in the general

the "end

the

year,

overall

our

will probably be as

expectation •. is

good as,

but

the

understand

exhibits

the

ICC

states

affiliation

undoubtedly
also finds that

recorded.

were

that in

the

wide, 1963 is expected to show
tinued growth

long

run

The year 1962 was an encouraging one
railroad1 industry;

generally foMhe

•

Ohio.

own ~

in his

transportation

ment.
'

Prom the standpoint of the- rail¬

roads,
•

President

strated

an unusual

the

vital

the

with

for construction of

transportation, including

rate-making

freedom,

subsidized

for

transport

and diver-

Kennedy
<

in the establishment of

ment

amount

credit for

The

7% invest¬

tax

These

ties

If the Congress can now add enactment of
on

and if prompt approval can be

nected

given to railroad mergers
public interest, the transportation
industry will at last be -well on its way to a position of

These developments,

service
-

general business picture seems to indicate for C&O and
most of the other railroads, a continuance of 1962 rev¬

railroad

traffic.)

it is believed the

'
will be looking up

economy

again, by the end of the 5 year/ Recent high .actwityi^h *
automobile production and sales could well continue

into11963 and trigger
trial

general improvement in indus¬

momentum.

On the C&O,

•

renewal programs boosted

million,

•

1962 capital spending to $50

greater than other recent

years,

and

current

expectation is that 1963 will probably equal or exceed
1962's figured The new guidelines and investment credit
stimulating re-examination of projects which pre¬

are

viously offered only marginal rates of return.

concentrating

profit.

Peninsula,

Rockaway

service

almost

experienced

area,

the

explosive,

early

de¬

post

Pulp

depreciation guidelines, investment credit

and efficiency programs will tend to

all

carry-through:

•1'

—

improve the* over¬

2,900

commercial

will raise

our

sixth consecutive year

For the

C&O paid its 90,000
shareowners its regular $4-a-year dividend; During • the year a strong financial position was improved, with
year-end working capital at a record level of $55 million
second highest in

totaling $76 mililon,

Company history.

During

was

C&O's

1962,
&

Ohio

concluded

mission.

ICC

case

Railroad

before

the

Examiner

step toward

Commerce

Interstate

John

control of the
merger;

Acquire

Bradford

and industrial firms.

approval of the control plan, stating that C&O would
make

"an

ideal

with

"consistent
on

October

two

years

partner" for B&O

the

was

interest."

public

the last

and the proposal is;

Oral "argument

step in the case, climaxing

and five months of application, petition and

hearings since the B&O and C&O originally announced
their

The

common

intention.

landmark

Commission

decision

Dec. 31

;

the

;

Commerce

approving B&O and C&O affili¬

paper

;

f President, CTS Corp.

tory

electronics components producer in 1962 and

as an

the bullish situation in the

1963 look like

units

since

manufacturers,

of 1967.

sumers

rising costs of
explore all

success

this

of economy.

areas

endeavor

raced to

ments

Government

consumer

expected

the

increase

likely increase $200 million, indus¬

CTS is riding the crest of

tending to
consumer,

We continu¬

become

this trend. Our business is
equally distributed between

military, industrial and replacement segments
-'

of the electronics industries.-

All
in

areas

1963.

our

crease,

living

per

kilowatt hour

have

benefited

from

earnings

our

raise

our

sales to the $30 to $32

anticipated record level of about

eleven

years.

for

our

fully

service

expect

area

will

that

the

bring

improvement in earnings and higher dividends.

growth

expected to in¬

sum

up,

the theme of the electronics industry in

will be much

was

in 1962—greater emphasis

being given to the research and development of newer,

per

continued

are

from about $1.45 per share in 1962 to about $1.60

share in 1963.

share which have increased for ten successive years and
from dividends which have increased eight times in the

anticipated

■,

business should show increased sales

We expect to

million level from

1963
owners

about

this year, while

million.

clined 39%. *.
share

million and replacement parts sales $100

$28 million in 1962. Earnings, too,
than doubled but the cost of

although

alone will account for

contracts

sales will

trial sales $300

how

of electricity to LILCO's residential customers has de¬

Our

in these years,

increase of about $1 billion in 1962
anticipated increase of roughly $2 billion in

$1.4 billion

initiative:

closely

reflect the anticipated industry in¬

1963.

people, to our customers, and to our
local, state and national legislatures that an unrealistic
tax program tends to discourage industry and individual

has

•
J
anticipated

fact, the continuing trends toward more automation

the

and

our

Of interest is the fact that since 1940 the cost of

CTS'

the industry sales

it did ten years ago although sales have more than
tripled in the period. Another important consideration
i$ that, of adding pur voice and activities to the job of
holding down taxes. Taxes generally represent almost

■.

step ahead*

and miniaturization are the remaining explanations for

the fact that

quarter of each utility revenue dollar.

one

primary product, the variable resistor, is used in

our

ally stress to

industry and CTS have

larger quantities in these products than in their more
conventional forerunners.

urge

number of employees i

publics

keep research and develop¬

Interestingly,

creases

One measure of

is indicated by

same

consuming

benefiting disproportionately from the upsurge in
the color TV and stereo FM markets. This is because

as an

doing business continually

these

stronger

are

alternative
to conventional fuels. LILCO and six other leading New
Yprk State electric utilities, in an organization known

The

the

time.r. As the de¬

record years of 1962 and 1963

Together with, other utilities and industry connected

fuel

con¬

the street,

business

at this

ments of the

Basil s. Turner

planning is necessarily

arb Studying nuclear

ultimate

increase, the technological improve¬

more '

long range.

ever

mands

sophistication of related control, transmission and dis¬

businesses

electronics

than

efficiency, and the growing

tribution facilities. Therefore, our

the

man on

the

each* year because of population increases^the
greater .machine

the

—

government, industrial firms—make

1950

tion; design and building of these plante becomes
for

industry.

the

Although CTS sells only to other

even

complex

and

pany

that growth in the next five

service

into

electronics industry makes

another record year both for our com¬

ation in 1966;4Units such 0s

last

Interstate

and

CTS Corp. completed the best year in its 64-year his¬

our

Com¬

recommended

aware

BASIL S. TURNER
n

Baltimore

larger, unit, is presently planned,ior operthese; take frohot ^
years to^plan and construct. The determination bf loca-';

another,

one

and cash and short-term investment

The in¬

of this inconsistency and
making these additional sales return

requirements two billion kilowatt

LILCO has about the

segments of the pulp

and with

annuallyj in¬

of. 22,400 new customers

generating, unit is scheduled for completion Jn 1963 and

tend to rise. Reflection In net income of the tax benefits
new

many

continuously growing industry
ingenuity should be among the leaders in the
general economy of the country.

war

C&O earnings in 1962 -rose above 1961, reflecting the"
as
the Empire State, Atomic Development Associates
generally improved business climate throughout- thef I
(ES ADA), are studying several nev( concepts which are
year. Although our exfpectatiohs are that 1962 volume .
expected to produce power using nuclear fuels at costs
and revenues will about equal 1962, we* would estimate:
competitive with or lower than conventional methods.
that both C&O and railroad'industry net income would
from the

in too many instances.

case

placed six major
raising our
electric capability to ovbr 3Mj times the total available
at the. start of the period. A new 189,000 kilowatt electric

need

substantial motive power and car fleet

has not been the

and

increased from 3.5 to 5.4 billion kilowatt

area

generating

Should a' midrVfear*slow-down, as some forecast, take '

plate,

To meet its requirements, LILCO has

tV<

*'•

business

hours and 10 billion cubic feet by the end

well encourage increases in

average

Present estimates indicate
years

capital spending by industry With consequent increases
in

area

billion cubic feet to 25.7 billion cubic feet in this period.

during 1963. While: defense spending
is again scheduled to increase, most of the money goes
for products that do not put much traffic on the rail¬
roads. Nevertheless, the new depreciation guidelines and
can

service

hours, and the amount of gas required rose from 11.8

enues and volume

the investment credit

cluding about

stated, are encouraging. The

our

The amount of electricity required by customers

;

over-capacity

industry, the profit return to the industry has
should, considering the: high degree
of investment required for increased capacity.
Addi¬
tional sales should produce Additional profits but this

The groyrtJfojate,
sfrong
.spectacular, ha^ steadied in
years.Uvuipg ^the $aptj fiye yea^s j^^CO

recent

and affiliations in the

but less,

the President's message,

strength adequate to this nation's needs,;

consumption

not performed as it

years,,

Tuohy

dustry is becoming more

velopment

Trans¬

Due

the

and

increases

small per capita consumption in these countries develops
substantial consumption figures.

the

1,000,000 persons

growth

phenomenal,

John J.

past few years.

substantial

Nassau and Suffolk Coun¬

industry.

industry and provide a spur. to the national economy.

portation Act of 1963, based

2,200,000 in 1962, with

over

LILCO's

the

and paper

from

concurrent

far

Will -go

the

population of

1950 to

industry in setting *.

new, realistic

purposes.

than

expended

increased

depreciation rates for
un permitting many
railroads to modernize plant and equipment, providing
additional jobs and resulting in better service to the
public. It will also give business to the railroad supply
•

expects

five years.

good as his word

was

22%

equipment,

mid-year, President

Moreover,

LILCO

years

products should stim¬

the under-developed countries should take place as their
standards of living show increased betterment. Even a

invest $285,000,000 in new plant and

•

Sification for railroads.

five

charges

user

levels

Conversely

electric and gas facilities. In the

new

continuing conservative iri-

These will be steadily growing markets but not on the
boom

look for 1963 and for the years to follow. This
optimism
is reflected in the Company's current
plans and estimates

problems

underlying

the nation's

Walter J. Tuohy

ulate

Europe markets.

courageously

and

our

crease in consumption.
Indications are that a leveling off
is taking place in the United Kingdom and continental

portation systems His message dealt

ments of

Long Island Lighting Company is optimistic in its out¬

comprehensively

sound

mand for fiber products due to

L. p. Turcotte

trans¬

for

need

a num¬
,

-4

President, Long Island Lighting Company

understanding of

already high standards of living, but
If
population increases, plus develop¬ k-

4'S|S

JOHN J. TUOHY

demon- '

Kennedy

of present con-

Domestically; the industry cannot
'expect. any Spectacular ;rise< ln; de¬
,

to the Congress.

message

excess

ber of other products.

his

recommendations'for transportation reform and improve-

products is in

Sumption and thisVistrue of

^
Wit
u-., 4
*•;'
•This decision hy the ICC is in harmony with President
Kennedy's wise recommendation on railroad mergers

For the first time in history, the Pres-'

ident of the United States sent-to the Congress

•

;

•

con¬

to consumption of

pulp-paper and other fiber products.
Capacity in many pulp and paper

job

carrier

•Chesapeake and Ohio's resources, including financial;
strength, j.can; he, of; great help; in modernizing and increasing the earnings capacity of the Baltimore and

J. TUOHY

Presidents Chesapeake and Ohio Railway

well

world-wide.
With continued rise in the standards of living world¬

shows

railroad

other

This

provide

will

were

only consistent with, but to promote, the public.interest.

|| WALTER
\

547

testimony

pages

be seriously affected
by traffic diversion. It is \
equally significant; the transaction
found to tie pot

1962..'.

and

5,686

would

that;

better" than, *

cities,

seven

security.

toward

economy

analyzed

engines announced by the Company in 1962.

Given

1963

favorable

ings

were

1962 provided a new production record in
the pulp and

step to merger have been carefully,
486 witnesses who testified at hear¬

promising, in
view of the continued expansion of road-building activ¬
ity. Along with this segment of our business, Cummins
more

■.

President, Puget, Sound Pulp & Timber Co.

aspects of the public interest in this control by

C&O

construction

of sound transporta¬

cause
..

reliable

and

sophisticated

electronic

com¬

ponents to meet an ever increasing complex of require¬
•

ments, the bulk of this stimulated by defense and space

probe projects.

;
Continued

page 96

Chronicle

The Commercial and Financial

(384)

will be the effect that the new

R. VILA

GEORGE

of $6.6
equalling or
surpassing this volume in 1963. Higher Sales this year,
however, will be contingent upon the volume of original
equipment tires produced for De-\;F
sales reached the record level

Rubber industry

troit's booming
Tire

Approximately
of all types were

.tire sales are

Sales

reached record highs

acute

much

and our
in our

belting and industrial hose
closely the rate of indus¬
activity and capital spending.

reached

President

slight decline to approximately

This year should bring a

Florida

74.5%

1,640,000 long tons. Of this total, approximately
will be synthetic and 25.5% natural rubber.

million

This year is our 50th
will

have

four

years

that

facsimile

transmission

are

new

hotel

and

are

many

—in

with

United

with

cerned

hotels,

the

in existing hotels.

the economic forecast for

selective
the

properties.
business

other

the

basis

and

will

forecast

hotels, but

■

the
a

7% F in,;

460,000 barrels per day.
will

There

little

change

in the consumption

distillate and residual fuel oils,

selective basis

\x,

,»
; .. \
5' >//'"
,V: V'

* .V.

overhauling of

our

reduction

basic tax structure will bring
stimulation will in time;

transportation facilities, both pipe¬

line and marine, will be adequate to move petroleum

'requirements for all foreseeable meeds.
;
Indications are that the 1963 daily average for refinery;•
runs in the United
States will approximate 8,550,000
barrels.
While average

the

World

post

crude oil prides have

War II

declined since

peak of $3.09 per barrel in

1957,1 expect they will remain relatively stable in 1963.
The

drilling rate in 1963 is likely to remain at

ap¬

need to drill more

government deficits.

are

as we

tax

not in agreement,

do not see how there could be sufficient
revenue from this stimulation to offset

greatly increased expenditures.

and

continuing increase in debt limitations would in¬

The

areas
;

field

will

revolve

have

around

mentioned.

communications

these matters

those in

therefore difficult for
look for

our

proposals

government policies

We who
are

are

much

proved reserves while eliminating, to some extent,

unnecessary

drilling,

While the industry, generally, is expected to
its drilling program

continue

at approximately the same rate

in the

1962, Gulf plans an accelerated exploratory program
in 1963 in the U. S. and the remaining free world. It has
scheduled record

capital expenditures of $125,000,000

the regulated

exploration, which exceeds the previous all-time high of

about

$117,764,000 in 1957. Last year's capital expenditures on

concerned

non-regulated enterprises.
to forecast what the

It is;

1963 out¬

respective companies will be in face of the

now

our

exploratory wells and fewer develop-

By this means, we can continue to add to

of business in 1963 and the balance of the

course

sixties

ment wells.

Continuing deficits

evitably be the result.

individual

...

„

* " <jrC \

;

We also feel that

proposed by the present

proximately the 1962 level of around 46,000 wells. We

the

hotels,

drop-off

.V ' •••;

policy

in economic activity and purchasing power will

increase

occu¬

depend

•;

spending

inns,

increase—but it depends entirely on the
individual hotels involved. In addition to
over-building
an

increasing:

however, with a policy of greatly increased government

Therefore,
our

the increase

fuel, where the volume is

avoid

con¬

major cities, is on a

management

words,

commercial

there, will be

short of

produce sufficient additional tax revenues necessary to

built in

spite of the trend of lower

located

ever

about. We also believe that this

larger

motor

and

W. K. Whiteford

iriucb smaller. Estimated Consumption of the latter

Max E. Wettstein

the increased economic stimulation which tax

over-building

facilities

This is

1963.

kerosene and commercial jet

government deficits and creating surpluses—therefore it
is sound, Most of us are in agreement with respect to

cities throughout the country

pancy

Robert F. Warner

that

States, are

continuing

largest increases in

day in

govern¬

greatly increase tax revenues to the extent of wiping out

and the

of the

greatly concerned

two-fold

i,v''

commercial

was

;
:
demand

in gasoline, and kerosene
and commercial jet fuel. We estimate that gasoline de¬
mand will rise by 2.8% to average 4,460,000 barrels per;

Proponents of the two-fold policy argue that the great

decided

associated

cities

the

upsurge

Hong Kong and Japan, in particular,
show

over

3.7%

approximately

liquids.

(

abroad, not only to Europe, but in the Pacific area to
will

remem¬

increase

1962

occur

1963 is

Administration.,

and have convention facilities. Also, travel

The

cause

••

-—principally for those resort hotels that have kept their

believe

the

greater than most anticipated,
will

reduction accompanied with an

under

The outlook for 1963, from where ,we sit, looks very good

upturn.

It must be

1962.

temporary gains, therefore,, will in time be wiped out

President, Robert Fv Warner, Inc.

that

in purchasing power. It will, however, at the same
an inevitable increase in wages and prices
and a further decline in the value of the dollar. The

ROBERT F. WARNER

day

10,500,000 barrels per

and other products, n? >
Continued growth is forecast for the petrochemical
producing and consuming industries. As for supply to1
fill the 1963 requirements, we foresee little change from?
the 1962 productive rate of crude and natural gas

time

PABX's, and hotel-motel room service dialing.

properties

1961

surge

Wade

dial

inward

total demand

against the estimate of 10,300,000

bered

temporary stimulus to the economy and cause an up¬
Willard

and

place the

about

barrels

spiral of government spending will of course provide a

TWX mechanization, subscriber

data

total

to avoid eco*

increased

increase

the

spending.

Tax

great deal of effort is given to
the new subscriber services such as

calls,

are

greatly

ment

toll

therefore,

nied

have done in

we are

approximately

This would

to reduce taxes and to be accompa-.

the past 50 years.

ticketing

large

petroleum demand in 1963 over 1962.

about the. Administration's proposals

much

essential if

are

us,

accomplish

in favor of tax reduc¬
continuation

improvement

some

Our estimates call for

that tax reduction

nomic chaos in the future. Most of

anniversary.

The doubling process means

lead

can

time,

same

but

into the future. At the

prices is in prospect.

ing. Balanced budgets and surpluses

and

1966

believe that a tax
present tax structure
in business. At the same

yearly deficits through an ever in¬
creasing spiral of government spend¬

to believe it will double

$64

and

tion

planning accordingly.

are

spending

few who are

size each

Our telephone plant was
$8 million in 1954, $16 million in
1958, and $32 million in 1962.
We
again

gains in sales for not only 1963

bles; For this reason there are very

four years.

reason

Manager

great majority of businessmen

government

into the future is one of guarded op¬

Spectacular gains hardly can be expected in sales
volumes, prices and profits, but there will be modest

Telephone Corporation

time, most of us are of the opinion
without a reasonable reduction in

President, California Interstate Telephone Company

have

General

and

Corporation

U. S.: petroleum, industry;

for the

timism.

further inflation and economic trou¬

startled to find that we are doubling in

and

Board, Gulf Oil

the

The overall outlook

is essential to a real upsurge

WILLARD WADE

K. WHITEFORD

W.
of

Chairman

reduction and an overhauling of our

rubbers, such
as polybutadiene, polyisoprene, and the ethylene-propy¬
lene varieties, are expected to rise sharply from 64,000
long tons in 1962 to more than 125,000 long tons in 1963.

are

continuing
The

Consumption of the newer stereo regular

maintain and expand
business. With proven products that
truly fulfill human heeds. Productivity and innovation,
enthusiastically applied under sound and determined
leadership, are the only ways to achieve new growth and
a better return for stockholder-owners.F C

WETTSTEIN

continued

S. system of

for 1963

MAX

both natural and synthetic,
all-time high of 1,690,000 long tons in 1962.

everything possible to

the

industry in 1963.

Total rubber consumption,

visualize

ahead, the people of the chemical industry

In the yea?

prospects

the

for

growth of that company's operations,

within the data processing industry
and my own company have in the past years run some¬
what higher than the average for the national economy,
and I anticipate this trend will continue in the coming
year. As customers seek new and better ways to cope
with their information handling, requirements, their in¬
vestment in computers and other data processing systems
should also increase. This should make for sound growth

walk

States,

United

the

areas

must

The

should rise slightly following
trial

year
.

through the year

expanding economy as we move

CSC assumed ma¬

With a good fertilizer
forecast in the Canadian provinces and adj acent

jority ownership in January 1962.

ahead.

transmission

power

have emerged from the
in our abilities
future. I believe this new spirit will be reflected

dian fertilizer manufacturer of which

past.

the

Maynard C. Wheeler

principles in
developing new areas of business which we can serve
effectively.
As an example, through innovation and
heightened productivity, sales and earnings records were
established in Northwest Nitro-Chemicals Ltd., a Cana¬

crisis With renewed confidence

Cuban

major objective of our Company

has been to apply these

confidence
1963.

fair,

profit.

excesses

achiev¬

including

goals,

ing; precise

customer

and

processes

full productivity to bear on

of in¬
ventories and capital equipment of
the sort that has led to economic

difficulties

products such as conveyor

Sales of industrial rubber
and

for some
ahead into

built

not

have

high is

look

T. J. Watson, Jr.

fact that people do not

grounds

services; and (2) Management lead¬
ership in bringing the Company's

our

whole, T believe there are

On the

competitive challenge.
Solvents Corpora¬

products,

employed for a long period of time.

goqd

the world adds

believe the best ways to
challenge are: (1) All-out
emphasis on creative innovation in
the search for new and improved

tion,

le m remains
reduction in the

Market

Common

European

meet this

number of those who have been un¬

in the past.

Corporation

and

squeeze

At Commercial

pr o b

despite

the

to "the

still

are

addition,

balance.

price-profit

and in other parts of

sluggishly and our

payments

unemployment

million i

the
enormous
popularity of the new high fashion boots
for women. This reverses a traditional downward trend
caused by the higher percentage of people living in
southern climates and the

v'f i,

hand, the economy

still behaving

out

footwear are rising due to

of waterproof

encouraging economic

some

international

expected this year. Principal factors behind the rising
sales of sport footwear are the additional leisure time
enjoyed by Americans, a trend toward more casual
dress and the increased population.
Sales

' >

the other

On
is

in 1962 and another new

»'} (/.•/, > i*

(

seen

■

leisure time footwear

canvas

ficulties.

sold in 1962.

rubber-soled

i,%

spending; Some progress has been made in coping
with our balance of payments dif¬

sumer

compared with 10.3

units this year

million

for replacement use should

Sales of truck and bus tires

million units

has

year

with

compared

•;

77.5 million
units in 1962. Original equipment
sales
should
exceed 33.5 million
units and could be higher. They
totaled 37 million units in 1962.

George R. Vila

9.8

car

passenger

record of more than 80

units

total

tire
expected to set another

Replacement
new

,l '

figure.

this

should

1963

'/>/'-

The: past

138 million tires
sold by the industry

sales

and

1962

Board

the

developments; New peaks of output have been attained.
Consumer income is at a record level and so is con¬

needed

improvement is

price

automotive industry.

establish better profit margins.

Chairman

International Business Machines Corporation
J

WHEELER

over-production in the
chemical industry that made 1962 a stiffly competitive
year can be expected to be an even tougher problem
in 1963. The growing strength of chemical companies
The

THOMAS J. WATSON, JR.

1962 and give promise of

billion during

Thursday, January 24, 1963

President, Commercial Solvents

business travel .and conventions.

President, United States Rubber Company

MAYNARD

question mark
regulations-—having to
with travel and entertainment expense, will have on

the domestic hotel field, another big

Continued from page

being drafted by the Administration

exploration approximated $115,000,000.
Total

capital expenditures for 1963 are scheduled at

$500,000,000,
excess

less than the $650,000,000 of 1962, but in

the

average

of recent years.

Offshore lease

•

Number 6232

Volume 197

sales

were

spending

primarily responsible

The Commercial and Financial Chronicle

lifting

for

the

level,

only

second

-v

to be running much higher than last
year. Sales volume
surpassed the total of 1961 on Dec. 1.

WILSON

'v...•;• f

***•;•••

the

•*.? y.\

L-.

••

•.

•

-'V-

-J

•

President, Xerox Corporation

$664,217,000 of 1957.
Turning to the legislative scene, Federal regulation of
natural

the wellhead and the continued threat

gas

against percentage depletion are two of the most
ing problems confronting the industry.
The

area

pricing plan

the admittedly

offered

was

press¬

hopeless difficulties which had developed

in the Federal Power Commission's efforts to set just and

wellhead

reasonable

prices for natural

However,

gas.

prosperity of the past

down

achievement for
numbers

their

rapidly

workers

Ashland Division, which is
proceeding at a rapid rate.
Construction is under way of a multi-million L-D Proc¬

and

essing Plant and there

and

many new products which
being introduced in the office

equipment field

assure

continua¬

seeable

increase slightly.

tion of this growth during the fore¬

encountered difficulties and inequities just as
of

solution

The

those

method.

the

original

only

reasonable

solution

permanent

and

and let the intense natural competition that
wellhead

natural gas

% While
it

that

and

the

anticipate that the threat of
for

been

common

signed

many

and

long time, I

again will prevail,

sense

reduction in

will be greater

1963

of the opinion
it has in the

of these

costs

before

factor which

ing interest in
and

Natural Gas Co., Inc.

Kansas-Nebraska

Personally I
for

in many circles

ticular

industry. And

sustained

also

the

opinion

that this growth could be accelerated
economic

improved

the

climate

greatly

incentives

proper

provided.

are

When

refer

particularly
Tax

taxes.

reform,

is long overdue. This

which

the

affect

incentives

such

the

to
in

area

opinion,

applies to taxes

individual

business

those which

corporations.

r.v

presented

and

nature

already

should

Congress,

calls

for

cutback

step-by-step

rates, personal and corporate,

five

over a

period. This measure, if enacted, would I am sure

year

free

both

chases, and for plant expansion by industry as well as
the

development
Such

search.

moves

TAXES

added

re¬

tend to put more people to

would

work and in the final

through

products

new

analysis result in the payment of

the

government.

tape

the

rate

Tax

reform,

then,

would

bills

through

mean

the

Herlong-Baker

economic

growth

for our country and hence more and better jobs,

higher

ment

note here concerning

Federal

national debt. I cannot endorse extreme and prolonged
that

way

cannot conduct

will be passing

dren and our grandchildren if we
fiscal

our

new

and

business

own

and I do not like to think of the continued,

spiraling debt which
Federal

our

continue

our

chil¬

present

are

of natural gas.

The fuel cell is beyond the experimental
means

of this

area

the

householder

country which

and

housewife.

the

regions, it continues to provide fuel for

the

urban

and more

drying, for dishwashing, for the heating of water and for
soft, romantic

see

vv/c

a
v c

glow

of the nostalgic gas light.

great things ahead for the natural gas industry

our

owii

company

great future for

part of that industry.

country too, particularly if

our

hv^d tO'heeded taxrefofmand curtailed Federal

expenditures
free

initiative.

the

These

the

cold

office

which

barring,
it

case

business
recent

talk

affairs has

been

tax

reform

which

matters

for

are

1963.

course,

Both

all

think

revised

American

will

all

important

are

provide

enterprise

the

system

inceptive
.for

need

increased
"

Industrially,

American

and most of the leaders

office

out

with

these

are

to benefit

from

equipment

tive

these

This is

an area

of tremendous

years

vided
to

to come.

great deal of

exhibited

since

the

end

World

War II

mobile
and
K. R.

con¬

Kentucky during the
The

this

than

spotty

under

individual

V;:

year

Ashland

and

Ashland

and

last and

vicinity had

unemployment

has

difficulty in the

and

They

spent

for

Recently

emphasis

has

slight increase

Avco's

and

released

year.

shows

gross

are

has

three

principal

of total sales,

continued to

come

A company

continued to yield results- of

construction of the thermal
This, heat shield

astronauts

and

their capsule-to

businesses had highly
Sales and earnings of spe¬

commercial

E. Paul Williams

leaders in the field.

sales of $58,415,-

the merchants are reported

Avco's radio and tele¬

Crosley Broadcasting Corporation, had
results in its history.

The Lycoming

Division continued to produce reciprocating engines; for
more

in ten years,

acquisition of a firm engaged in the growing
of farmstead automation consolidated the company's

the best operating
'

reported td have been. in balance during the
among

the

vision business,

compared to. $57,270,000 the year before. Inven¬

Christmas sales

Although

the

area

shown

the previous
A' report recently
covering a 12 month period

70 %

the

were

history.

cialized farm equipment were the highest

serv¬

over

which ended June 30, 1962,

tories

enable

position
likewise

earnings

its

and refinement of production methods

concepts

satisfactory -results in 1962.

shifted

reporting period.

000

system

will

again to clothing and family neces¬

have

sea

safely re-enter the earth's atmosphere.

sities.
sales

land,

protection system for Project Apollo.

automobiles

part of 1962 than they did for

increased

contract for the design and

not

econ¬

large appliances in the eariier

ices.

1962

participates in 30 separate missile and space projects.
Of major interest during 1962* was the receipt of a

has

During the year the consum¬
shifted their tastes in purchases.

and

nation's

great present and future importance. The company now

omy.
ers

the

—

capability, and its

Avco's' basic commitment in 1956 to increased research

Although there has been

caused undue

need to main¬

state of readi¬

striking forces

than half of corporate profits

and development

Eastern

1962.

year

consumer

areas

Cuban

wid€iv program of cost consciousness in both government
and civilian operations has been an important factor-in
improved earnings. Achievement of an outstanding re¬
search and development capability has contributed im¬
portantly to the improved operating results of the past
five years. In 1962, research and development work,
principally under government contracts, accounted for
approximately one-fifth of the company's sales volume.

WILLIAMS

happened

two

such

recent

from consumer-oriented goods and services.

will

To look at 1963 and what it may bring requires con¬
what

Wilson, Jr.

government; business
more

President, Second National Bank, Ashland, Ky.

goals,

The

air.

Avco's

highest

and our industry will maintain its record for
providing business firms with the necessary tools and
techniques for successfully meeting the growing com¬
plexity of their day to day tasks.
1

sideration

pro¬

moving forward

ambitious

Apollo.

nuclear deterrent

continue

PAUL

capabilities, and

basis for

constant high

ness

many pit-falls which await the
However, the remarkable growth and strength

have

flights of

crisis emphasized the

moving and the

are

unwary.
we

tain

of the dynamic economy in which

aware

space

the

Project

challenge and opportunity

All in all, we approach 1963 with

•

successful

nation's

firms

rapidly and proving to be formidable competition.

fidence, fully

Projects
Mercury and Mariner II proved the

in which American know-how and
ingenuity is leading
the way, although many foreign firms are
!

climate.

The

to, modern business procedures will serve

opportunity for growth for many

continued

4' V*
vv'STf-'* *Vv
V ^
Mi
1
fcj *
i
of continued government
emphasis in the areas

of the older continents

to be

seems

area

of space exploration and
defense, and the outlook for
the economy in general, Avco
anticipates another favor¬
able year in 1963, but one in which
gains will have to
be made in an ever more competi¬

the

items

view

are

opening

expecting slight gains

are

KENDRICK R. WILSON, JR.

any

deeply involved in overseas
operations. The increasing vitality of the Common Mar¬

ket countries plus the

period of improvement exceeding 1962 gains.

which have become increas¬

ones

the
\

Chairman, Avco Corporation

and

benefit

•

trend, it can be expected that their earnings
be greater with retail sales
showing an advance

laws.

Foreign markets

ingly

industry

change

may
■

instances

out¬

great interest to all industry and

in the office equipment field hope

this

cut

intensifica¬

impossible for

schedules

tax

in production and sales. The
Ashland
in a position to
expect in most

vividly demonstrated by the

change in depreciation

gives

over' 1962.

equip¬

our

government

will

the

are

expected to be higher than

consumer

in whatever form it may be

are

period of 1962.

conclusion, Ashland and vicinity will have modest
gains in 1963. Individual incomes will be a little
higher
and if nothing occurs
nationally to cause a change in the

magnetic

same

played by the government in all

Retail

pur.

form

companies

The;:

house heating, for year round air conditioning, for clothes

for

printed

the

to comprehend what the results may be.

saved more.

natural gas is at home on the farm and in the
city. In the rural areas it provides the fuel for the de¬
hydration of alfalfa, for pumping irrigation water from
underground, for heating the brooding houses, for the
drying of grain and for all the domestic needs of the

see

corporations

war

spend

serve,

materially affected by

of ^natural gas.

the Great Plains

and

annually

tion

already

stages, and this too will provide for the generation

the

petroleum

pattern.

development

and

working and to this extent

are

the theshold of

gas turbine is

reality and giant business complexes throughout the

farm

research

im¬

Interest rates for the first
part of 1963 for the area
change little from the present levels. However, if

great many more

system of all operations.

particular industry

country are now generating all their electricity by means

that

decided

will

have

years

policies.

exciting discoveries. The

electricity by

Many of the most

years.

look would not be

very

expenditures, because I cannot recommend any tax cut
unless it is accompanied by a reduction in spending by
our Federal government
and hence a lessening of our
deficit financing;

large

with, which

industry

good year for the

good recent

developing

living standards and greater national security.
I must however insert

the

whether

of the world

faster

had

for the first half of 1963

assume

punch cards

1962 was not

However; 1963 "will show

and chemical industries
locally have
quarterly earnings.
1963 should find
the industry gaining in
production and sales.
Earnings

one

which has been voiced

one

during the past

nervous

elements

bi-partisan

The

industry

peacetime and wartime economies, data and

information

great amount of money for added consumer pur¬

equipment

industry.

our

supported. This particular legislation

S. D. Whiteman

office

increased efficiency of operations

being made

expenditures

I believe the Herlong-Baker bills,

bi-partisan

all income tax

• •

the result¬

systems and methods for reducing

citizen

apply to our
;

Joseph C. Wilson

because of

in this effort and has become

from

nuclear'war

well

also

companies in the office equipment industry

result

will

speak

considered

and I think it is fair to

the

and

from

come

available.

are

in the coal fields there has been

much

par¬

though I feel there will be

even

growth.

economy

our

materials

considerable unrest.

impressive innovations of the past 10 to 20

optimistic about the business outlook

1963, both generally and with respect to

raw

The

The need for innovation is

Chairman of the Board

All other

To the south of

primary selling points.

are

D. WHITEMAN

rates.

provement in production by reason of increased demand
which will have a marked, effect on the
economy.
The
present problem in this industry is labor unrest
arising
over contributions to the
miners' welfare fund.
Labor
peace is hoped for shortly after the
beginning of 1963.

which cost savings and

1962 witnessed

generating

some¬

new

way

steam

new

which is

inefficiency. The

the

coal industry.

squeeze

must

extent

proof.

publicized profit

led

make

efficient

large

one

depression

waste

is more evident than
that

industry is

our

de¬

are

new

electric plant
costing $39,000,000. New industries coming into our area
can expect an
ample supply of electricity at competitive

ideas

new

and

operations

rapid, it

ever

has

past, and the rate will not be changed.

cut

business

what

depletion probably

has

exists, both
regulate

level,

consumer

prices.

percentage
than

the wellhead price of gas from Federal controls

the

dedication

coming to the marketplace

are

During

employment in the industry will
plant i3 now under way for

production to begin in the fall of 1963.

future.

Since

cost-of-service

remove

impossible

improvements thjit

1962 unemployment and
production has been down.
It
is anticipated that production will show
improvement
in 1963 qver 1962 and

the

are

bther

are

expected to be completed in the fall of 1963.

dependence

acquired

the attempts to make the area pricing plan work have

;

growth

year

industry. The tremendous increase

our

office

and 1963 will, I believe,

years

profitable

another

Principal industrial expansion in. this area is at our
largest employer and plant of
Armc^ Steel Corporation,

industry should continue to enjoy

the

solution for

The office equipment

(385)

JOSEPH C.

1962
i

its high

rate

turer,
craft

different types of aircraft than any other

manufac-

and to make more gas turbine engines
than anyone else

Characteristic
;

the

for air¬

in the United States.
commercial and

industrial im~

Continued

on vage

•

}

The Commercial and Financial Chronicle

(386)

•

'' *

-'v -Ail,

i,-,

gj«

* ' '

v'1

CHARLES

G, plications of research performed

Chairman of the
under government con¬
tract, is the magnetohydrodynamic generator. The MHD M Some
exciting things
project supported in part by eleven private utility com-1|
industry.
panies, is an outgrowth of Avco's solution of the prob¬
Magnetism and air
lem of nose cone re-entry for the Air Force. During

compared to 10,000 watts
when the project was first announced.

three years ago

will perform in

that

until very

;

WOHLSTETTER

t? HARLESTON R. WOOD

Board, IMC Magnetics Corp.

tightened
the profit-squeeze on the nation's steel companies. in
1962 as the industry ended its fifth year at a low
.operating rate,, with production of only. 98 million tons
Increased labor costs together, with price cuts

pressure

being combined in

are

bearing motor,

that

manner

recently was only a theo¬

Physical requirements for constructing larger workWe estimate the, present market
led the company into *
for gas bearing motors at up to $2,another promising area, superconducting magnets. Dur000,000. By 1967 this should go to
ing the year the company received a contract for the <
$10,000,000 and by 1970 may well be
building of a* 50,0(50 gauss rhagnet for Argonne National
about $20,000,000.
What makes this

the

civilian and commercial business.

developing its future

air and therefore

ther
■V

P''«;

Hi ?'&

' -i--iG > i; Ij 'K

;

' *J^ 1

■>

•

\ f for

ELMER L. WINTER

pro¬

these motors can be made and

continue unabated throughout 1963.

combined effect

The

stockpiled, so that sales

costs and the decrease in

off-the-shelf basis.

increase in

the

costs

our

substantially

and

power,

through

curtailment

lubricated

improved
materials

petroleum derivative. The gas may be air, helium, steam, !

of various miscellaneous expenses. It is

opened office was that in Melbourne,
Australia—fourth continent to have

freon, carbon

Manpower offices.

dioxide and so forth. The motor never,
oiling and it works just .as well at extremely:-high¬

heeds

temperatures—conditions that would normally

low

tions.
.

Using the temporary-help business
will sell around

1963 than it did in

during

With

has

1962, which means rising from $175,-

increase from $50,000,000

at least

no,

extremely long life, jt can

these

in 1962 to

special

blower

deliver

will be
jump from 87,000,000 man-hours in 1962 to 112,000,000
Expressing this in terms of man-hours, there

'?•■■■:}-I■■■

opening offices on that continent for the first
time. Prospective franchises are now being sought for
key cities.

able to supply
is required

realization by businessmen that many of their problems

skills.

These

cost than
the

for

specialists

one

can

who

specialize

certain

better job at lower

temporary-help, this unique form of
for peak

vital

businessmen utilize

the

newer

sub-contracting

down

the

plant for

the
one

no means

week

instead

and

using its

little finger

1963 it will continue to be difficult for

find

qualified

rising
labor
We

automation

force.

must

workers,

The

makes

future

re-train

since

skill

inroads

into

displaced

active

role in

These

lockers
in

are

Radio

and

addition

the

solenoids,

air

IMC

r»u.aine-s

and

1962.

when

America,

Manufacturing.

such

automation,

impulses
'

The

shelving, had the best

Presently, its facilities

trend

The

military
alone,

670,000 units in

read

other

special

mechanical

action,

wing flap, into electrical

including
1963

being expanded to

ip sales and profits for Penco.

our

$36- million mondernization

in early .1960, When this major .program, was
started, we were sure it would proyide answers to many
of our own problems. We are iiow even more certain
that

will.

face the
%

•

This
'

The other

one

with

future
'

reason

sure

M'*"

the

two

reasons

why

confidence.

►

•}

/ eVf

—

is the fact that the American steel in¬

dustry is now—and has been for
-—the most efficient

many years

in the past

producer in the world.; It pays the

in the

world

and

the world's

produces

ample to meet demand at present and in the immediate

requirements
not

inaugurated

highest wages

pilot

engineer

for

synchros

step-servos,

and 830,000

units

and

servo

estimated

in 1966.

in quantities that

are

than

future.
Granted

reasonable atmosphere of Government and

public understanding, we believe the industry will con¬
tinue

meets

degrees on a linked synchro in the cockpit.

devices

in its history

year

are

produces* many

synchro translates

can

our

highest quality steels

change of angle in
than

activity,

bearing motor, the step-servo

types of electronic components, including synchros and
resolvers.

are

program

country of

our

for many years. We were aware rCf these problems

cases-

They

Machines, Gen¬

mill

;'G:G.G-G'GGG-G"G/fG: -7;'|-;
of Alan Wood

area

new

Admittedly, the nation's steel industry is faced with
serious problems which have been building up, in some

the electrical "trig¬

Corporation

Electric, Interna clonal

mill have pot

permit production of a line of steel work, benches and
related shop equipment. We look forward to cdntinu-

bigger than

ounce.

while

Further,

new;

subsidiary,
Products Inc., which manufactures «teel cabinets,

Penco

are

eral Dynamics and Raytheon

our

meeting these problems and not

leave them entirely to the
government.

solenoids.

customers

are

improve and enlarge our educational facilities to train
people up to the newer skills, and
encourage youth to
remain in school to
get full training. Businessmen should
take

such

General

em¬

belongs to the trained person.

workers

weighing less than

previously.

solved*. product quality continues to improve over

improving.G ''

Our catalogue contains

used in hundreds of military and com¬
mercial applications.
We sell them in large quantities

industry to

requirements

further

and

make

problems of the

previous mill, and operating costs in the

designed

used in

gers" that

shutting
own

the quality of plates we were able to produce

of the household

IMC also is the largest manufacturer in the

ployees at premium rates.
In

all that IMC makes.

aircraft-type

the cost of taking inventory

job

able

not

were

been

that

today,

methods

controlling and stabilizing the level of one of their
major cost-factors—people—by tailoring the work-force
to the work-load. In one
year, a major Cleveland manu¬
$100,000

all of the break-in

are

computers, missiles, aircraft, television cam¬
eras, tape recorders and similar specialized installations.

for

facturer saved

number of aspects of our. current .situation

are a

improvement. The most encouraging sign is. the fact that,
to date, more than half of the sales of products from
our new plate mill are in sizes and grades of steel which

the-drawing boards.

close to 700 other types of motors, some no

shrinking profit margins—already slim-

that

There

r—both in production and. sales-^which. lead us to believe
that results in the next few months will show substantial

The air bearing motor and the step-servo systems are ;

aire

combat

on,

one

operation.

atiop of the. upward

can be called in to handle the peaks/'
principle also applies—in reverse—to valleys;

that is, sudden dips in the work-force due to
sickness,
vacations, etc., need not cripple production if temporary
G employees are called in. <

are

for Alan Wood. Other
unprofitable results were
and the continuing problems in¬

difficult

volved, in getting our new mill facilities into efficient

The range of applications is limitless,
probe and the missties and the hardware

step-servo.

refrigerator still

operation, since

temporary workers
same

use

build-up in early '62 and the consequent

year, a,

In another

of the computers to the latest model

helps businessmen maintain their work-force at
than is needed

They

response

in the first quarter of 1962.

the cost-price squeeze

about

The potential is great for the air bearing motor and
from the space

level lower

the

made

step-servo systems will be required to make them

the

service

The

the tremendously high-speed

the

Polaris and Gemini.

by the most advanced computers in

concentrated skill.
case

was

factors that contributed to the

practical realities.

himself, because they provide
large volume of services calling

and as even bigger and faster computers

do for

can

advantages
a

those

•

Step-servo systems are employed in such sophisticated

growth of temporary-help, like the growth of
business services in general, is due to the growing
to

domestic capacity make, it

build-up in early '63 will be as exten¬

any

low level of activity later in the year, were factors that

place:

advantage of the step-servo system is that

adventurers in the skies

The

at this time last year, there

case

than ample

The inventory

fiii space; weight andmoney. It also is not affected in
operation by varying ' environmental conditions and
therefore is able to supply greatly increased reliability.

view to

entrusted

without reliability problems.

requires thereby provid ing the user with savings •

method

the

steel inventory build-up in anticipation

it eliminates the feedback circuits tnat the conventional

pand in breadth—with some 50 new offices planned for

Europe alone by 1967, in addition to 19 we already have
there. This spring I will travel to South America, with

signs of

sive

volume of air an oil-lubricated motor of its

One

moderate improvement in the steel

this to continue in the first few months

was

unlikely that

This type of system is being used more and
widely to replace conventional analog servo sys¬

tems.

impossible, how¬

speeds and

high

steel and

computer a small

or a

run

can

purchased

elimination

of-4he re»-opening of the industry's labor, contract in the
*

electronic

I The current market for step-servo systems is
more

best

equipped witlr

keep

of
or

•>

1963.

are

$3,000,000.

Although Manpower will expand in depth within the
United States and Canada during 1963, it will also ex¬

are

for itself is the step-servo motor and associated systems.

employment npt only by directly employing breadwin- ;
but aisov helping tide families over when the
breadwinner is out of a job by giving his spouse tem¬

missile

Another new type of product that is building a

ners,

work.

air bearings

size could not produce

This will mean a great deal in alleviating un¬

1963.

porary

with

essential

are

equipment operating. In

$55,000,000—possibly more—

i963.

motors

operatiorT

Such

costs

reduction

and

industry's operating rate during the past few months

bourg^^yV

run^24

submarine, where pblowers

•

There has been

and we expect

ball bearings subject to corrosion the motor

standard in

Manpower, Inc., this will call for an

•

"G//

■

for weeks at a time without heating.

000,000 to $225,000,000. In the case of

Elmer L. Winter

freeze.

and perhaps

$50,000,000 more in

services

oil lubricant to burn away or to become viscous

cause an

example, we estimate that it

reduced

services,

man¬

through

to completely offset $4.25 million, by such "reduc¬

ever,

productivity,
and.

have achieved further savings

by gas rather than by a film of one type or another/of

the shaft of the motor .on bearings ;that are.

1962 with 289 offices
13 countries. The most recently-

employment

prices since 1958 thus amounts

ended the year

higher

figures will be.

to,$4.25; million annually. We have been able, to lower
The gas

Manpower, Inc., the world's largest temporary-help business service,

the current low operating rate. The

the level of operations, the larger these

bearing motor involves a principle that all
but eliminates the destructive force of friction by resting

•

million dollars. These figures

Further,

with sales to the government a tiny fraction.

of income- of

annual loss

total

three-quarters of

based

are

Harleston R. Wood

Alan Wood products. These

reductions amount to

air bearing motor
commercial field,

Among the various segments of the fast-growing service
industry, Business Services enjoy the most rapid growth
rate—10.7% compounded annually—a trend that will

on an

by approxi¬

Furthermore, within the past six

several

bearing motor that we expect will account

field is that this is an almost entirely

will be

ex¬

months, "the competitive situation has
forced
decreases in the
prices of

Charles Wohlstetter

the big advantages of the

One

For

year.

/have risen

some

President, Manpower, Inc.

each

increased

mately $3.5 million since that year.

large part of our volume in the future.

de¬

ample, annual employment costs at

sums

has

basic steel came
employment costs

whereas

1958

have

;

expended large

duce the air

this year.

progress

% •'*■/,?<[ "■

practically without

research and special tooling

prospective fur¬

constitute, in total, the basis for Avco's

has

period, the

position

profit

in prices for

crease

destructive friction.
IMC

117

teriorated considerably. The last in¬

gas-bearing Components,
operate on a thin cushion of

; which

government business, an
increase in our research and production capabilities and
increased consumer and federal outlays during 1963,
of

backlog

substantial

with the
million tons

compares

During the five year

industry's

teristics of

virtually unlimited life charac¬

the

the company is

and space programs,

nation's defense

This

produced in 1955.

reliability and

possible is the great

while: making substantial contributions' to

Thus,

ingots.

industry, high

retical possibility.

Laboratory.

Steel Company

Alan Wood

ing models of the generator have
'

Board

Chairman of the

President and

happening in the electronics

are

air bearing motor, known also as a gas

output of 1,480,000 watts,

-''

generator achieved

experimental

MHD

Avco

the

1962

Thursday, January 24, 1963

Continued from page

all the nation's

earn

prove

profits

profits which
and

technical

its

ability

commensurate
are

operate

basis

that

steel needs and at the same time

with

the

risks

involved—

the sole means of continued growth

development.^

Volume 197

Number 6232

The Commercial and Financial. Chronicle

♦

(387)
J.

WRIGHT

moderately, it is likely that this will be substantially,
offset by further improvement

Chairman of the Board and Chief Executive Officer,

Thompson Ramo Wooldridge, Inc.

■

ment,

TEW expects another moderate rise in sales volume in
1963 with a continuing
uptrend in

researchers,

and

missile,

electronic,

space,

1963.

National

single

defense

;

enterprise in the U. S. and-

musi

now

counted

along- with-

food* clothing* and shelter' as one. of
the four necessities of life,
The
year, 1963 will see a continuation: of
,

the

J. D.

rising trend of expenditures that

has been evident since -1955.

for

increases.

Wright

Spending in the fiscal

June 30 is estimated at
$46.8
1963 to run about $48.5

seems

billion.

Sales for

defense

and

At
the

top

for

the

community

building

Development Corporation

agencies,

field

which

engaged,

of the

one

best in

General

record

new

1958.

William H. Zimmer

scheduled.

are

6.93

factors,

the

Yet

For

many

past

cars

and

than

H. A: Years

trucks,

national

lead
-

experienced two good years back to back.
Sales of original
equipment to the car and heavy
duty builders, and of replacement
parts to the after

anticipate'" that: TEW's automotive
Whole

will

compare

sales; to the

builders

car

sales

favorablywith
can

1963

1962.

be. expected

•>

•

and

part

business leaders.

our

building such

com¬

sales charts show

our

Our hopes for the-finest:
year
:

into his berv.

iv*

construction

assure

the

rate

Greater Cincinnati of

$40
con¬

new

than 1,500,009 kilowatts with the

the
was

com¬

240,000 kilowatt unit at the Walter C.

Station, in December, 1962. Work has been
mining a third liquid propane storage cavern

first

multiple jet-engine electric generator to

There is

every reason to believe that the Greater Cin¬
area will continue its
dynamic growth through
1963 and subsequent years. The
company is, and will
continue to be, prepared to
provide3 the best possible:
gas and electric service and will continue
to

cinnati

grow with

its service

•JSSAr* vsas^Midwest
q

world's

Development (Cor¬
agencies dcrOss our conutry, our
foreign offices in Canada* Europe,

dozens'of European industrialists

a city on the move in 1963
Its favorable location, proximity

be used for meeting peak electric
requirements.

ever-increasing rise.
of our history are based

and

newly-established

and

to be used for meeting
peak day gas requirements.
Arrangements have been made for the installation of the

great extent ph the success of our operations out¬
the boundaries of the United
States. While1 sales
continue firm throughout General

offices

committed

supply of gas and electricity in
generating capacity of the company

Beckjord
started

poration

been

plentiful

pletion of

side

Cin¬

expected to be attracted. The
ordered full speed ahead .on all

new

year to

increased to

built
reach

slow but

has

the

for which $125 million

years.

future. Electric

Lucie

hope to

already

has

spending for

million

to: surpass that mark when the final
total of home
1962 is reported.

following

tinued
of

capital

development

areas

both

are

1963.
work

and
were

The Cincinnati Gas & Electric Co. and its
subsidiaries

our

can

our

issues

industries.

peace

for

Charlotte, Port Malabar, Port St.

total

bond

natural resources and
markets, and the pre¬
vailing dynamic spirit will result in the continued at¬
traction of new industries and expansions of ^
existing

new

the

Sales of homesites continue
strong. Today, more than
199,000 persons have purchased our Florida land and

•

decline

"nmrolAnnvo

XlLlCd,

and

attitude, buttressed by

prosperous

Port

heard

awaken¬

ing territory truly will be

sales for

and

new

ever-increasing population,

We find this true in

Brutal CompetitionFaces
-

attitude

fully

Although
to

seen

conven¬

All of this indicates that Cincinnati and the
surround¬

the

over

new

approval of the $16.6 million

trigger the

$100 million

Manager

hall. A

projects. In addition, a $250 million program of express¬
ways, slum clearance, and urban renewal, which was
started five years ago, is nearing
completion.

apperances

and other cities on both Florida
coasts. In 1961
and sold almost
1,500 homes. We

record level. We

new

only

munities

market, made up the largest single
segment of TRW's
business ih, 1962,' and established a new
record for the

reached

product by

far

construct

exhibition

$100 million

and riverfront

private

City

American

ever-increasing demand

Too

will

core

another

them

enthusiasm

new

of'many of

and supported by

If these

fourth consecutive year,
killings' for original equipment
increased more than: 25% above
1961, and exceeded the
company's. previous record made in 1955 which still
stands as the auto
^industry's all-time peak production
year. Fallowing. the. trend, of recent
years, sales to the

vigorous

This

projections become accomplished facts, it will be
the
first time in postwar
history that the industry will have

replacement trade also

have

ahead.

nation

indications of

ing,

million

one

year

cinnati

any forecast.

the

issue

ac¬

numerous

and

passenger cars and 1.25 million trucks.

authorized

streets,
sewers,
public&improvements

The
bond

can

many

person

degree

control

areas

many

1963/ industry estimates range upward from 6 mil¬

lion

lies

business, enter into

industry enjoyed its second best pro¬
history, with total output amounting to

million

what

many

In .1962 the auto
duction year in
some

for

great

any

| beyond

for TRW in 1963.
Production for the .M-14 rifle program
and related ordnance
products will -accelerate as the
year advances. In addition, higher sales of
nuclear com¬

ponents

must,

just

curacy

the first time,
increased sales

For

source of

Cincinnati

authorized by electorates throughout
the area.

year

history.

our

with

say

steady, reflecting - the company's
deeper penetration of this still substantial market which
back

schools,

other

into

move

with every hope and indication that
the

will be

level, as did
of our electronic operations. For, the. third consecutive,
year, sales to jet engine
aircraft builders held

principal

and

around

prediction

drastically cut
ordnance will be a

November, 1962, election,

to meet the city's portion of the cost
of developing the Cincinnati river¬

Corporation

classification,. rose to a
billings in virtually all areas

was

by the city. $6.6 million of the pro¬
ceeds from these bonds will be us^d

This prediction is based
partly on
fact and partly on
conjecture, as each

new

the

voters

tion

TRW's total business in 1962. Sales .in the
missile. and
space category, which is the
company's. second largest
sales

ZIMMER

Gas & Electric Company

the issuance of $16.6 million of bonds

President, General Development

than half of

II.

be used to

1963

other government

including NASA, represented slightly

continue to* be excellent.

H. A. YOARS

;

We expect fiscal

billion, and fiscal 1964

front and the other $10 million will

ended last

$50 billion.

The future growth of The Cincinnati Gas &
Electric Co.
is dependent upon the future
growth of the Greater
Cincinnati area. And the growth of that area
should

inevi¬

pushing hard

year

WILLIAM

decline in

upsurge nor a

consideration—the prospects

President, The Cincinnati

expect that TRWj with the
economy, will record another ^moderate advance into
new high ground in 1963.

Despite the cooling of the

Cuban threat, a step-up in the arms race
Every service in the Pentagon is

table.

significant

business; but

into

the

~ look for neither

for

■

boom; others apparently feel that a recession, such as
was
generally predicted pre-Cuba, could still develop.
In. TRW, we have been inclined to
discount these ex¬

general

account

now

month.

indeed, bright.

their desire and
ability to buy automobiles and
other good -things that have become
essential to our
3wajy of life, and that foreign markets for our automotive
abd electronic ^products will
continue\ to expand. We

largest

area

volume, and that volume is

Korean-type

strate

the

Pacific

total

—I cannot help but believe that
the outlook for business
in 1963 is,

planning on the
assumptionthat defense expenditures are certain to in¬
crease, that the American people will continue to demon?*

ordnance and automotive,
fields—we anticipate another; good )

each

the

our

lasting peace, the enthusiasm for the job ahead,
the present healthy attitude of
confidence on all sides

treme views'and have
proceeded in our

aircraft,

year in

worsening

Taking all factors
for

20%

growing

economy. Some seem to feel that
world tensions could set off another

producers of precision parts and sys-;.
tems—-the

equip¬

automotive

our

for the

oper¬

developers

overseas.

almost

appraising the outlook for TRW's broadly diver¬
sified markets in
1963, we are mindful that sharply
divergent opinions are being voiced about the outlook

Preliminary estimates indicate that sales in 19621 ex¬
$460 million, a new historical peak,. and that net
income reached the highest level
since our record earnings year 1956.
ate

by continued growth in

Latin-America and

shipments to the

our

ceeded

well

operations

earnings.

For the markets in which

inj

after market and to manufacturers of
off-the-road

area.

s. E.

rtsrtsrsirs
Smith Inc.

-vy

Lorp. JNameS

Mr. Nelson joined MSESC after
economy.
•
.
being associated with Internafact, in mid-1962, CHICAGO, 111. —Key promotions tional
Business Machines Corp.
Continued from page 10
;i\: possible, to get everybody impor- President Kennedy himself turned have gone to three executives at
instead of enticing brand new di- tant into the act.
formerlv
with
developer. With an eye to both the
Midwest
Stock
Exchange
rect investors from the t).
S NSW
* The movement may have balance-of-payments tribulations Service Corp., it has been an- AmpkenoI-Borg Electronics Corp.
V.
S.
Commissioner, Dr.- Arthur* Den-* started when Puerto Rico's Gov- and so-called "depressed areas" in nouneed by R. John Cunningham,

JL/cVcIUUcI

111 li/OOnew!y*rointed nation's

•

matter of

.#
'
ning, puts it this way: "We have ernor Luis Munoz Marin and later the U. S., he personally urged President.
JOIIIS Stran&hEIl, HaiTlS
Sydney^ Australia, alone hun- North Carolina's Luther Hodges, European and Japanese investors
The men are Albert B. Golddreds of growing
companies look- today U. S. Secretary of Com- to look into direct investment as
stein, Vice-President, now also as- CINCINNATI, Ohio — Harry C.
ing for new products to make and
overseered their respective a way of profitably tapping the si'stant to the
President; and Jack CPBrien Jr. has become associated
sell! Our big job is to firid U. S. kr*n2 - in - industry programs.
By monster-sized $500 billion Ameri- p. Nelson and Anton J.
Pros, both with Stranahan, Harris & Cornmanufacturers to 'marry up' with the encJ
1963, most of the U. S, can Market.;
named
as
Vice-Presidents.
Mr. pany, Union Central Building. Mr.
these
firms
through
effective Governors will be closely identi1963 area development com- Nelson was Manager of the sys- O'Brien was
formerly with W. E.
licensing and joint venture agree- he& with local economic growth,
petitioni will be rougher than tems division and Mr. Pros was Hutt0n
ments."
while
some
& Company,
states,
like
New

(5)

Name"
when

Trend

"Big

Developers:- Time

the

function

Toward

economic

was

development hard-working, but unpaid "Indus-

belonged to two largely

anonymous economists in

drafty

hallway at the State Capitol
.

minor.,

sub

Jersey will continue to ring in
top private industry executives as

committee

or
•

/.
the

trial Ambassadors."
■

economic

heightened

Chamber
the

Commerce.

current ^notion

development

by adding

political and

business

;

Today .try

upgrade
as

much

glamour

new

Prime

Minister,

Dr. Eric Williams, embarked

three

elation

Administrative

Head

Corp.

opera-

tions.
Service

The

sub-

iWO

With Wocffcotmor
W6Stll6ini6r

Administration, sidiary of the Midwest Stock Ex-

Bootstrap';

.government
coun-

independence, Trinidad and

Tcbago's

Puerto Eico's Economic

Development

development:-calculated

directly after his Caribbean
.

-> which runs the well known. "Op-?

the

pay

change

providing

centralized

Ohio

—

Charles E

f
.

Indication

'status

develooer

month ) on-the-spot

Euro-

program,

has-:electronicbookkeeping

system,

tof evf? $1eco? «rat o£ "s kind*n th„e natlon> tor
f0f Midwest's member firms.
m

investment.,

v,nm;P ,ipUPinnmpnt

enmp

havp

nomic development some $37 nave,.
been

forthcoming in
income/"
1

new

island

For the right team, the game is

still

decidedly worth the candle,

™

Mr.

Goldstein joined the

•

ice Corp. in 1961 after an
tion with Radio Corp.

have ./joined the staff
heimer

c^,r

Serv-

of America

supervisor of

and

Company,

Fourth

•

East

124

Street,

associa-

in its Wall Street electronic systems center and

Jones and-Herbert V. Klepmger.

members
Cincinnati

the

stock

Exchanges. Mr. Joneis was
merly with, Goodbody

oinpany»

100

(388)

Indications of Current
Business

cover production and other figures for the
month available. Dates shown in first column are either for the
month ended on that date, or, in cases of quotations, are as of that date:

The following statistical tabulations

latest;week
week

Activity

Latest
AMERICAN
Steel

ingots

Index

Year

Ago

1,874,000

1,912,000

Latest

Year

Ago
2,341,000

Month

Week

1,915,000

Jan. 19

and

Week

INSTITUTE:

STEEL

castings (net tons)-™
production based on average weekly

for

AND

IRON

Month

Ago

8,460,400

For

production

125.7

100.6

102.6

102.8

————'Jan. 19

1957-1959

AMERICAN

GAS

month

Total

Crude

oil

and

condensate

output

Distillate

fuel

Finished

oil: output Tbbls.)—/an, 11

Residual

fuel

oil

——.

NEW

Private

84,803,000

■>:

imports

and

Municipal-

*■.

{

OF NEW

ACCEPTANCES i

FEDERAL

—

Jan. 17

289,700,000

345,900,000

273,400,000

173,900,000

Dollar

18,200,000

exchange

.'—

16,300,000

Based

goods

stored

778,148,000

—

Domestic shipments
Domestic warehouse credits.

11,754,000

Tan, 12

521,515

422,196

501,033

foreign

462,048

404,212

478,032

465,185

——.Jan.12

8,605,000
419,000

7,100,000
242,000

7,755,000
370,000

7,750,000

*91

246

18,110,000

17,467,000

17,560,000

16,857,000

286

315

249

396

6.196c

6.196 c

6.196c

COAL OUTPUT
Bituminous

(U.

coal

Pennsylvania

BUREAU

and

SALES

BUSINESS

—

Jan. 12

EDISON ELECTRIC INSTITUTE:
Electric output (in 000 kwh.)_.
FAILURES

——-Jan. 19

AGE

AND

INDUSTRIAL)

DUN

—

Electrolytic

(E.

-Jan. 17

Retail

$63.43

$37.50

30.600c

28.450c

28.525c

28.500c

10.500c

10.000c

10.300c

9.800c

—

Jan. 18

—

9.800c
12.000c

12.090c

11.500c

22.500c

24.000c

111.250c

111.500c

111.250c

120.'J25t

90.64

90.31

86:1S

>'■

DAILY AVERAGES:
U. S. Government Bonds_-.-i——

—

Averages corporate-—*-'
A'aa;, ————i————-i,

A.
—

83.28

90.48

Group——
Group..
Group—

MOODY'S

COMMODITY

Production

INDEX

—

....

4.24

4.42

I'' fe-:;, '4.37

4.36

4.47

4/54

4.74

4.92

5.08

Gold

4.91

4.71

4.73

4.38

Mine

120,651

344,373

458,616

426,310

483,653

122.71

—

sales—

.*„_—

Total
sales
————
Other transactions initiated

...

off

the

Dec. 28

i—;

—

.—Dec. 28

purchases.—
Short
sales

—

350,420

Dec. 28

3,809,070

2,422,820

800,400

260,990

2,939,600

392,270

13,600

766,190

29,700

83,200
589,410

314,900
822,808

563,360

996,567
113,020
831,874

1,448,250

...Dec. 28

854,888
81,700

.Dec. 28

Short sales.;
Other sales
Total
sales
,

...

—

Total round-lot transactions
for account of membersTotal purchases

Short

sales.**.—

645,060

Dec. 28

sales

Other

185,880

944,894

3,069,368

1,526,753

3,786,677

6,023,510

Inner

1,069,480

3,137,001

2,529,580

3,424,134

5,939,363

3,457,901

Tubes

Round-lot sales by dealers—
Number of shares—Total sales
Short

sales

—

TOTAL

ROUND-LOT

EXCHANGE
FOR
Total

round-lot

Short

SALES

ROUND-LOT

sales..

1,248,846

$58,782,515

THE

STOCK

MEMBERS

1,869,787
$85,046,760

1,700,195

and

1,657,284

1,990,740

2,242,189

1,790,362

Net

4,981

13,616

34,719

6,313

Net

1,652,303

1,977,124

1,784,049

$61,790,907

$85,193,525

2,207,470
$100,124,217

■■■•"

$80,436,406

749,390

913,280

.489,080

Tires

Bus

165,380

200,230

STOCK

All

sold

48V.080
;

467,540

474,12C

Net

456,070

Vr''740,610

1,653,970

395,200

—.Dec. 28

14.337,110

18,703,680

26,951,350

17,260,790

Dec. 28

14,793,180

19,444,290

28,605,320

17,655,990

DEPT. OF

J..J

..Jan. 15

;;

Jan

.'
than

tNumber

farm

and

foods.*

Jan.
i

Jan. 15

100.4

100.5
98.7

;

100.5

Not avail

*97.6

98.6

100.5

Jan. 15

...

basis at

TRANSACTIONS

STATES

orders

DI¬

———---- ■

GROSS

December

DEBT

DIRECT

AND

■*

6,494,'.87

$298,784,254

3.288%

$290,004 533
3.135%

$308,000,000

$298,000,000

303,470,080

305,390,198

296,168,761

502,765

330,159

$303,987,703

balance

7,108,709

517,623

;

$305,892,963

7,508,845

$303,987,703

$296,478,858

funds

debt

annual

GOVT.
of

$305,892,963

$296,498,920

371.635

371,956

438,403

$303,616,068

$305,521,007

5296,060,517

4,383,931

2,478,992

1,939,482

3.298%

average.

STATUTORY

December

face

amount

$296,498,920

;

DEBT LIMITATION

(000's

that

*100.4

100.8

96.7

*96.3

98.2

Not avail

100.7

omitted):

may

be outstanding

at
any
time
Outstanding—

Total

...

public debt..*—

gross
Guaranteed

Total

obligations

not

—

owned

the

—

gross

public

debt &

guaranteed

Not avail

obligations

Not avail
Not avail.

Deduct—Other

gations not
Grand

centers

SECURITIES

GUARANTEED

Treasury

.'.

figure.

MARKET

3,342,564

■

Total

—

578~2ir

Group—

delivered

Dec. 28

commodities other

•Revised

1,709,652
1,557,447

sales

Farm

Meats

of)—

(Number

—--

AND

Computed

b '

TRANSACTIONS

products
Processed
foods

13,692,000

(pounds)

purchases—

■

General

(SHARES):

——

commodities

52,703,000
50,667,000

U. S. A.—Month of December:

UNITED

578.24C

LABOR—(1957-59=100):
All

RECT

913~280

WHOLESALE PRICES. NEW SERIES

Commodity

TREASURY

$86,704,001

sales—

—

(pounds)

749,390

...

Total

1,046,649
$46,952,825

Dec. 28

sales

Other sales

—.Dec. 28

dealers—Number of shares

STOCK

AND

ACCOUNT

9,289,787

Inventory

Dec. 28
—

purchases by

3,881,367

——

—

Production

Dec. 28

sales

Round-lot

Bus

(pounds)
(pounds)

Shipments

262.045

1,000,757

3,534,267

—

Inventory

of)—

GUARANTEED—(000's omitted):
—

Other

and

192,339

308,959

———*4.—

Truck

(Number

—

8,623 364
9,050 957
21,572,323

(Number of)—

1,012,975

Production

Dec. 28

Dollar value..

11,298,512

22,707,929

—

Shipments

Truck

11,333,418

—>

——

327,678

—

(Number of)—

Tread Rubber (Camelback)—

320,900

4,869,883

...—

Production

3,616,358

518,320

2,905,814

—

ASSOCIATION, f

November:

...

Inventory

356,970

—

Shipments

875,591

2,172,610

—.Dec.
STOCK TRANSACTIONS FOR ODD-LOT
ACCOUNT OF ODDLOT DEALERS
AND
SPECIALISTS ON N. Y. STOCK
EXCHANGE — SECURITIES EXCHANGE
COMMISSION
Odd-lot sales by dealers (customers'
purchases)—t
Number of shares...
Dec.
Dollar value
:
——*
JDec.
>;
Odd-lot purchases by dealers (customers'
sales)—
Number of orders—customers'
total sales
.Dec.
Customers', short sales.—...—
—.._*Dec.
Customers' other sales
—Dec.

—

MANUFACTURING

Inventory
Passenger, Motorcycle,

826,981

Dec. 28
i

573,780

Production

48,610

1,340,873

..Dec. 28

—

Total, "sales———

174.254

—

institutions

——————

Dec. 28

467,568
332,322

lending

Inventory
Tractor Implement Tires
; Shipments *

303,600

672,610

floor—

109,217

;

:—_

Shipments

11,300

282,230

311,930

—Dec. 28

the

$1,304,059

——

companies.^*-*-—

Passenger & Motorcycle Tires

370,730

220,210

:
on

—

NONFARM

Individuals

INC.—Month

2,267,410

23^,810

Other sales—*.
Total
sales.—
Other transactions
initiated
Total purchases

FINANCING

and. trust

RUBBER

2,006,420

3,740,000

Dec. 28

—^

2,397,840
375,600
1,791,710
2,167,310

Dec. 28

—:——.

—:
—

Production

Dec. 28

...

ounces.—•

Mutual savings banks*

floor—

Total

fine

ESTATE

Total

—Dec. 28

—————

—

(in short tons)_——

Banks

79,755

————

(in fine ounces)

Miscellaneous

1,864,060
261,670
1,389,040
1,650,710

108,281

116,465

Average=10«-r-Month

Savings and loan associations
Insurance companies

117.95

123.19

129,0171

117,441

;

S. — HOME LOAN BANK
BOARD—Month of Oct.
(000's omitted):

MEM¬

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stbcks in which
registered—
Total purchases..
——
Dec. 28
Short sales
•
;
:
Other

(in

AREAS

;

457,966

•>-iia,366

116,836

production of recoverable metals in the

Zinc

341,777

..Jan. 12

123.49

1957-59

—

4.57

332,753

142,210.

RESERVE

FEDERAL

4.40.

313,136

•115,163
137,975

108,491

United States—

374.1

.Jan. 18

THE

Copper (in short tons)
Lead (in short tons)

.—Jan. 12

—

ACCOUNT

Silver

168,338

14,398,000

4135,381

—-

(tons of 2,000 pounds)*..--—-•
at end of period (tons
pounds)—

4.92

355,234
355,178

68,908,000
54,510,000

14,856,000

w*—>—

2,00u

4.61

Jan; 12

54,544,000

—

METAL. OUTPUT. "tBUREAU- OF-MINES)^
Month of October:

4.55

370.7

Jan. 12

4.75

■

57,148,000
69,400,000

...——

———~—

4.40

4.38

'4.37/.'

■

:*.

$126,635,000
57,727,COO

$126,548,000

...

municipal-:

(tons

SYSTEM

FOR

$65,489,000

-.''of' December

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
TRANSACTIONS

$98,841,000

18,361,000

PLANNING,

construction——

Seasonally adjusted I...
Unadjusted

4.21

371.8

—

ROUND-LOT

ADVANCE

construction

ERNORS

REAL

of activity
Unfilled orders < (tons) at end of
period———:

—

16,743,030
3,453,000

24,107,000
16,095,000

INDUSTRIAL PRODUCTION—BOARD OF GOV¬

4.11

4.20

2,000

4.70

372.5

———

Percentage

1949 AVERAGE=100

——

Ih .U. S. A,

3.69
:

-Jan. 22

——

(tons)————

16,184,000

INSTITUTE—For Month of December:

4.52

3.66

4.46
,

Jan, 22

————*-——:

—

7,209,000

Refined'copper stocks

87-86

' r4.49

4.36

/an. 22

—Jan. 22

——

NATIONAL PAPERBOARD ASSOCIATION:
Orders 'received; (tons)———*.

.-Jan. 22

Utilities

87.32

90.20

4.48

—Jan. 22

—

90.20

; 90,48

3.72
-

Jan. 22

——:

———-—

Public

90.48

90.63

.Tan. 22

V'/Baa

Industrials

1,278
$19,723,000

8,386,000

22' 744' 000
18'744 000
8^785,000

;

pounds)*^-.,
.^Delivered to fabricators^-^*'
t.
r "

83.28

———Jan,22
;

1,216

$34,069,000

10 331000

liabilities

construction

'Refilftd

81.29

85.46

—

109

$81,275,000

liabilities

85.59

85.72

;an. 22 '■

Aaa

Railroad

88.27

83.28

Jan. '22

■>'% Aa;-*;--«i.——

60S

ig3

$20,671 000

Copper production in U, S. A.—
Crude lions of»2^)00
p9unds)^

89,92

85.85

-Average- corpora te»*_—

89.23

83.40

MOODY'S BOND YIELD DAILY AVERAGES:
U. S. Government Bonds...

1101-

service

State and
;' Federal

COPPER

88.15

92.50

-Jan. 22

Industrials-; Group—

•'

90.77

Group

90.63

89.37

.Group—Jan.

Utilities

92.93

i 8.6(11

88.95

93.08
90.77

an.

————_—*—■

;.v

>88.54

89.09
.

/an. 22

/an, 22

—

Public

•

i.—Tan. 22

Railroad :

90.12

Tan. 22
>an. 22

—

Public

12.500c

11.500c

,•

12.000c

11.500c

Baa.

100

.___

ENGINEERING

Private

MOODY'S BOND PRICES

2ig

liabilities

Total

9.800c

12.000c

Jan. ,18

.————
...

■

—^
number.

^00

ORD—Month of December:

27.800c

Jan. 18

-Jan. 18 <

——

(primary pig, 99.5%) at..
———Jan. 18
(New York) at———-—i——Jan. 18

Aluminum

-v

Total liabilities

30.600c

—Jan. 18

—

—;

181

NEW SERIES—ENGINEERING NEWS REC¬

at—

819,134,030

$66.44

$25.83

—Jan. 18

(East St. Louis)

number

Commercial

copper-

Straits tin

;

Total

CIVIL

Domestic refinery at—--—
Export refinery at———————————
Lead (New York) at—
—
:
Lead
(St. Louis)at__
tZinc (delivered at)
Zinc

$63.43

$26.50

onn

„

Wholesale liabilities

& M. J. QUOTATIONS):

—

$63.43

$27.17

—

•

service

Construction

——

PRICES

Commercial

PRICES:

steel

(per ,1b.)——:
——..Jam 14
Pig iron (per gross ton)
Jan. 14
Scrap steel (per gross ton)—Jan. 14
METAL

—*

Construction number

.—*——

COMPOSITE

Finished

Wholesale * number
Retail number

•

BRADSTREET

Manufacturing liabilities

(COMMERCIAL

BRADSTREET, INC.
IRON

FAILURES—DUN &

Manufacturing number

INDEX—FEDERAL RESERVE

SYSTEM—1957-59; AVERAGE=10(L.—-i-—.J-i.-—^-(ran;i2.

914,053,060

*-$2,649,997,000$2,475,738,000$2,683,243^000

W' INC.—Month of December:

407.000

116,809,000

973,686,000

—

Total

MINES):

(tons)(tons)

anthracite

DEPARTMENT STORE
v

lignite

countries

503,827

Jan. 12

Revenue.freight loaded (number of cars)
Revenue freight received from connections (no. of cars)

275,404,000

158,985,000
186,120,000

—

shipped between

and

ASSOCIATION OF AMERICAN RAILROADS:

$485,448,000
968,604,090
17,844,000

$541,304,000

—

186,300,000

v i

290,295,000

284,524,000

BANK

RESERVE

...

357,300,000
359,100,000

231,800,000
192,100,000

; ;.. Federal

OUTr

307,500,000
Vi'° t'f-t

YORK—As of December 31:

Imports
Exports
■

•

export
-

DOLLAR

STANDING

$423,900,000

$716,400,000

26,884,000

product imports (barrels)
consumption domestic and
(barrels)

$476,000,000

35,828,000

(barrels)

Indicated

BANKERS'

,219,593,000
30,204,000
10,000
34,407,000
27,168,000

12,000

output

oil

251,336,000
220,942,000
30,379,000
15,C00
33,585,000
23,319,000

24§,807,000

259,849,000
,228,380,000
31,457,000

output (barrels)—.'—-

—Jan. 17

State

oil

13,400,000

(barrels of 42 gal¬

——

crude

Refined

31,274,000

—

:j '
planning by ownership-.
.————Jan. 17
ii-——L—_ Tan. 17

Public
.

63,422,000

49,520,000

83,388,000

Jan.'

Crude

SERIES:

Total advance
•

124,576,000

therms)

•

INSTITUTE—Month

gasoline output (barrels)
(barrels).
——*

Benzol

33,841,000

gas

each)

Natural

6,840,000

82,454,000

29.449,000

sales

127,900

7,918,800
7,757,000
161,800

6,828,100
6,700,200

214.700

PETROLEUM

lons

164,936,000
27,651,000

164,599,000
51,516,000

ENGINEERING NEWS-RECORD

—-

5,523,000

8,245,700

—

October:

■Domestic

14,924,000

182,277,000

*143,511,000

,Unfinished<.oils. (bbls.),
ADVANCE PLANNING

Total domestic production

3,362,000

6,427,000

136,271,000
49,375,000

—-

29,574,000

,;'189,545,000
31,379,000

Jan. 11
/an. 11
Jan. 11

•

——

AMERICAN

8,638,000

|..,

191,782,000

(bbls.) at

......

——i.--.-—.Jan. 11

(bbls.) ;at
(bbls.) at——
fuel oil (bbls;) at

Distillate

14,071,00(1

16,047,000
5,722,000

gasoline

Kerosene

15,621,000

3,752,000

Residual fuel oil output (bbls.)
——wi***—.;—— Jan. 11.
Stocks at refineries, bulk terminals, in transit, in pipe lines
;

30,687,000
3,524,000

8,574,000
30,776,000

————-—.—.^__.,/an. 11

(bbls.)

7,383.000

7,340,710
8,423,000
30,456,000
3,368,000

7,280,410
8,543,000

7,289,110

gallons each)

Kerosene

therms)

sales

gas

Manufact'd & mixed

output—daily average (bbls. of
_—_*—_—_—:—.—Jan. 11
Crude runs to stills—daily average (bbls.)—
fan. 11
.Gasoline: output (bbls.) —————*——_Jan. 11
42

INSTITUTE:

PETROLEUM

November:

sales

gas

Natural
AMERICAN

ASSOCIATION—

not reported since introduction of
Monthly Investment Plan.
tPrime Western
where freight from East St. Louis exceeds one-half cent a
pound, a Not available.

zinc

Balance

under

outstanding

subject

total

face

public debt obli¬
limitation

debt

outstanding..
amount of obligations

above

authority

—_

issuable

Volume 197

Number 6232

The Commercial and financial Chronicle

Securities

Now
•

are

carried

now

1962

(2/4-8)

filed

separately at the end

other

corporate

Office—546

purposes.

are

American Mortgage Insurance Co.
Jan. 10, 1963 filed 31,070 common to

not, in general, firm offering dates.

Also shown under the

Registrations"

subscription by stockholders

caption "Effective

Office—300 S.

offered pub¬

were

the

basis

for

one

Salisbury St., Raleigh, N. C. Underwriter

common.

may act as a broker-dealer.

Basic

Price—$5.

Business—Company plans to sell "puts and calls" t and

forms.

Proceeds—For

debt

repayment and work¬
Office—3500 N. W. 71st St., Miami. Underwriter—Qivens, Marx & Co., Inc., Miami. Note — This
letter was withdrawn.

American

ing capital.

Abbott

Realty Fund,

Business—An

Proceeds—For general cor¬

debt repayment and general corporate
pur¬
Office—292 Madison Ave., N. Y. Underwriters—

•

Co., Inc., N. Y.

Accounting Corp* of America
5, 1962 ("Reg. A") 300,000

Dec.

Business—Operation
service.

data

and

Office

ing capital. Office

— 37
Brighton Ave., Boston. Under¬
writer—Walker, Wachtel & Co., Inc., Boston. Offering

1962 filed $3,100,000 convertible debentures

•

Price—$10.
real

Business—Company plans to qualify

estate investment

trust.

Proceeds—For

as a
investment.

$1,020

Addresst—Florence, S. C. Underwriter—None.
• Alaska

Power & Telephone Co.
26, 1962 filed $600,000 of 6% debentures due 1978,
240,000 common, and 180,000 10-year warrants to pur¬
Dec.

a like number of common shares, to be offered in
units, each consisting of one $1,000 debenture, 400
common, and 300 warrants. Price—$1,000 per unit. Busi¬
ness—A public utility supplying electricity and
telephone

Ave.,

March

capital. Office—
Alaska. Underwriter — Jay W.
Co., New York. Offering — Expected in

April.

All-State

Properties, Inc.

April 24, 1962 filed $5,000,000 of

conv.

subord.

deben¬

tures due 1977. Price—At par.
Business—Company and
subsidiaries conduct a general real estate business with
emphasis on land development and home construction
in Fla., Md., N. Y., and Ky. Proceeds—For repayment
of debt.

Office—230 Park

Ave., N. Y, Underwriters—

To be named.

Amerel Mining Co. Ltd.
July, 31, ,1961 filed 400,000 common shares. Price—500.
Business—The company is engaged in exploration, de¬
velopment and mining. Proceeds—For diamond drilling,

construction, exploration and general corporate ex¬
penses.
Office — 80 Richmond St., W., Toronto. Under¬
writer—E. A,
American

Manning, Ltd., Toronto.
Bolt

Screw

Mfg. Corp.

Dec. 15, 1961 filed $900,000 of 6% convertible subordi¬
nated debentures and 90,000 common, to be offered
in units

consisting of one $100 debenture and 10 shares.
Price—$100 per unit. Business—Manufacture of standard
and special industrial aircraft and missile fasteners. Pro¬
ceeds—For

debt

repayment, equipment and other cor¬
porate purposes. Office—Lawson Blvd., Oceanside, L. I.
N. Y. Underwriter—S. D. Fuller &

Co., N. Y. Offering—

Indefinite.
•

April 21, 1961 filed $500,000 of 6% convertible subordi¬
nated debentures due 1972, 75,000 common, and 25,000
warrants, to be offered in units of one $200 debenture,
30 shares, and 10 warrants. Price—$500 per unit. Busi¬
ness—Company and its subsidiaries are primarily en¬
gaged in the automobile sale finance business. One ad¬
ditional subsidiary is a Maryland savings and loan asso¬
ciation and two

are

automobile insurance brokers. Pro¬

ceeds—For the retirement of

debentures, and additional
capital funds. Office—1472 Broadway, N. Y. Underwriter
—Myron A. Lomasney & Co., New York. Note—This
registration was withdrawn.

"7;t-'j yi <•- >•..">y-,i'r,

/;,/!' '■/ C;s

)

V'1'

'-j

^ i£

new

one

pre¬

share for each 10 held.

Record

offerings is Nov. 21 and the rights expira¬
tion date Feb. 15. Price—For preferred $52; for common
$13. Business — Manufacture, purchase and sale of ice
cream and other dairy products.
Proceeds—For debt re¬
payment. Office — 1900 W. Slauson Ave., Los Angeles.

for

each

~
•

filed

Underwriter—To be named.
time in

February.

•*

••

Paul,

Minn..

Offering—Expected
y * 'Z 1

some¬

St.

14, 1962. Price—25

•

11,

1'/"wr v'

;*"v

•»

over¬

x'-:

•!

('*•

JADING

specializing in

,,//NK\V
ISSUES
BOUGHT

- SOLD - QUOTED
Brokers, Institutions

dSIE(iEL
V

ESTABLISHED 1942

Members of New York Security

Dlgby 4-2370

Dealers Association

Broadway, New York 6, N. Y.

\ "TWX: 212-571-0320
Direct Wires

Ave.,

■ u
"X

Jenks

for Banks,

equipment, inventories and work¬

Office—668

•

....

Atmosphere Control, Inc.

capital.

Feb.

over-the-counter securities

May 28, 1962 ("Reg. A") 200,000 common. Price—$1.50.
Business—Manufacture and sale of Misti-Cone humidi¬
ing

to be offered by company

Proceeds—For

held

Associated Mortgage Co., Inc.

loans on real estate. Proceeds—For loan
repayment, and
working capital. Office—1120 Connecticut Ave., N. W.,
Washington, D. C. Underwriter—Shields & Co., Inc.,
New York. Offering—Expected in March.

Feb. 20.

135,205 common, of which 100,000
and 35,205 by stockholders.
Price—By amendment (max. $10),. Business—Originat¬
ing, marketing and servicing of first mortgages and

Smith Inc.; Eastman Dillon, Union Securities & Co.Equitable Securities Corp. (jointly).. Bids — Expected

fiers.

•
.

Caldwell Publishing Corp.
June 13, 1962 filed 100,000 common. Price—$3.50. Busi¬
ness—Company plans to publish classics. Proceeds—For
general corporate purposes. Office—339 W. 51st St., N. Y.
Underwriter—S. B. Cantor Co., N. Y.
Offering—Ex¬
pected in February.
Continued on jpage 102

Light Co. (2/20)
10, 1963 filed $15,000,000 of first mortgage bonds
Proceeds—To refund outstanding 5%% first
mortgage bonds due Dec. 1, 1989. Address — Ninth and
Louisiana Sts., Little Rock, Ark. Underwriters—(Com¬
petitive). Probable bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co.; Blyth & Co., Inc.-Dean Witter &
Co. (jointly); Lehman Brothers-Stone & Webster Secu¬
rities Corp. (jointly); Merrill Lynch, Pierce, Fenner &

•

rv>v

> ,v -i

head tow systems, etc. Proceeds—For working capital.
Office — Kirk Blvd., Greenville, S. C. Underwriter—
None.

1993.

1962

yi,>'v

ley conveyers, vertical tray lift systems, floor and

Arkansas Power &

21,

;
«./•

cents. Business—Manufacture and sale of overhead trol¬

Jan.

•

cap¬

C-Thru

Underwriter—None.

Dec.

Proceeds

expansion, additional inventory, and working

date for both

due

June 22, 1962 filed 1,015,564 capital shares to be offered
for subscription by stockholders on the basis of four new

stock and 205,105 common shares being offered
subscription by stockholders of the respective classes

the basis of

—

t'<

ferred

purposes.

Underwriters—

Cable Carriers, Inc.

/ Arden Farms Co.;

for

corporate

York. Offering—Indefinite.

May 23, 1962 filed 49,993 shares of $3 cumulative

are

American Finance Co., Inc.

and new

Proceeds—For reduction of bank loans,
Office—349 Lincoln St., Hingham,
Underwriter—None.

Mass.
'

other

and

St., Philadelphia.

Cosmetics, Inc.

and working capital.

Products, Inc.
Dec. 13, 1962 ("Reg. A") 90,000 common.
Price—$1.50.
Business—Design and manufacture of flexible re-usable
vinyl packages. Proceeds—For debt repayment; sale pro¬
motion;
equipment; research and development, and
working capital. Office — 2401 Pacific St., Brooklyn,
N. Y; Underwriter
Broadwell Securities, Inc., New

components.

•

Arch

pected in April;

Sept. 28, 1962 filed 35,000 common. Price—By amend¬
ment (max. $30). Business—Design, manufacture and
installation of large microwave antennas and antenna

Skagway,

Kaufmann &

■

Office—832 Scarsdale Ave., Scarsdale, N. Y. Under¬
writer—P. J. Gruber & Co., Inc., N. Y. Offering—Ex¬

Antenna Systems, Inc.

service to 4 Alaskan communities. Proceeds—Expansion
of service, loan repayment, and
working

ital.

unit. Business—Manufacture of amplifiers and
Proceeds

fering—Indefinite.

chase

stores, and the servicing of franchised dealers.
—For

products. Office—1570 W. Blancke, Linden, N. J. Un¬
derwriter—John R. Boland & Co., Inc., New York. Of¬

600

Fifth

per

Big Top Stores, Inc.

•

accessory equipment for musical instruments.
—For inventory, equipment, debtrepayment

Nov. 26, 1962 filed 86,000 common. Price—$3.50: Busi¬
ness—Operation of five retail toy, stationery and variety

Oct. 29, 1962 ("Reg. A") $294,000 7% conv. subord. de¬
bentures due 1972 and 29,400 common to be offered in
units of one $1,000 debenture and 100 shares.
Price—

Aug. 22, 1962 filed 100,000 shares of beneficial interest.

1835

writer—To be named.

Ampeg Co., Inc.

for construction
—

Bene

Nqte-~This registration will be withdrawn.
t

Savings Trust

•

—

Aug. 29, 1962 filed 165,000 common. Price—$3. Business
-1 Americana
East, Inc.
—Company has been engaged in experimentation pn,.j
Nov. 13, '1962 filed 400,000 common. Price—$2.50. Busi¬
aerodynamic concepts and holds ten U. S. Patents relat- <
ness—Development, construction and management of
ing to advanced vertical lift vehicles and systems for
real estate properties. Proceeds—For construction, debt
achieving controlled vertical flight. Proceeds—For add!- ;
repayment and working capital.
Office—173 First St.,
tional equipment, research and development, plant fa¬
Macon, Ga. Underwriter—Nusouth Growth Stock Sales
cilities and other corporate purposes. Office—Route 15,
Corp., 4101; Steam Mill Rd., Columbus, Ga.
Sparta, N. J. Underwriter—Chase Securities Corp., N. Y.
Aiken

cosmetics. Proceeds
For advertising, inventory and
working capital. Office—114 W. 13th St., N. Y. Under¬

Bear, Stearns & Co., New York.

—•

March 2, 1962 ("Reg. A") 100,000 common. Price —
$3.
Business—Importation, sale and distribution of Italian

and

York. Underwriter

(1/28-31)

.-.a,

(Competitive). Probable bidders: First Boston Corp.;
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; White,
Weld & Co.-Eastman Dillon, Union Securities & Co.
(jointly). Bids — Feb. 5, 1963 (11 a.m. EST) in Room
2315, 195 Broadway, New York.

share.

one

duction

—Indefinite.

Aerosystems Technology Corp.

parent,

Price—By amendment. Business—Pro¬
servicing of physical damage insurance on
automobiles, trucks and mobile homes. Proceeds—To fi¬
nance the purchase of American
Fidelity Fire Insurance
Co. Address—American Plan
Bldg., Westbury, L. I;, New

processing

Telephone Co. of Pennsylvania (2/5)
15, 1963 filed $50,000,000 of debentures due Feb. 1,
2003. Proceeds — To repay advances from A. T. &
T.,
Jan.

1982, and 155,000 common (of which 120,000 will be
sold by company and 35,000 by a stockholder). The se¬
curities will be offered in units of one $20 debenture

Proceeds—For expansion, equipment and work¬

Bell

special¬

company

due

Price—$1.

common.

electronic

management

American Plan Corp.,

March 30,

Properties, Inc.

)

Price—Net asset value.

common.

Honolulu. Underwriter—American Pacific Management
Corp. (same address).

ceeds—For

Morris Cohon & Co. and Street &

Fund, Inc.

open-end

building and other corporate purposes. Office—521 Fifth
Ave., N. Y. Underwriter—Hornblower & Weeks, N. Y.
Offering—Indefinite.
" '

izing in life, health, casualty and accident insurance.
Proceeds—For investment. Office—1523 Kalakaua
Ave.,

Inc.

June 29, 1962 filed 380,000 class A common.
Price—$10.
Business—Real estate ownership and management. Pro¬
poses.

Pacific

July 9, 1962 filed 94,500

Underwriter—A.

June 29, 1962 filed 400,000 class A common.
Price—By
amendment (max. $12). Business—Real estate invest¬
ment.
Proceeds—For debt repayment, acquisition of a

• ABC Business
Forms, Inc.
&
porate purposes.
Office—120 Broadway, N. Y. UnderJuly 27, 1962 ("Reg. A")51,500 common. Price—$3.50. ;/ writer—Provost
Securities* Inc., New York. Note—This
Business-Manufacture, design and development of bust-; letter was withdrawn.
ness

are

100,000 by stockholders.
$8). Business—Company

N. Willow Ave., Tampa.
Allyn & Co., Chicago.

•

American Options Corp.
April 11, 1962 ("Reg. A") 60,000

offered by company and

fice—217

—None.

licly.

Price—By amendment (max.
operates, owns, services and leases coin-operated auto¬
matic vendingi machines.
Proceeds—For debt repay¬
ment, inventories, equipment and working capital. Of¬

Price—$18. Business—A mort¬
insurance .company. Proceeds — For investments.

gage

general

for each five shares held.

those issues which became

are

effective this week and

offered

Business

Automatic Merchandising, Inc.
i
May 24, 1962 filed 225,000 common, of which 125,000
to

ISSUE

Seaford,
Co., Inc., N. Y.

Avenue,
Omaha. Underwriters—A. C.
Allyn & Co., Chicago and
Walston & Co., New York.

flect the expectations pf the underwriter but

REVISED

trial machinery and
processes.
Proceeds — For
corporate purposes. Office—3601 Merrick
Rd.,
N, Y. Underwriter—S. Schramm &

24th

tion." Dates shown in parenthesis alongside
the company's name, and in the index, re¬

ITEMS

electrical,
pneumatic, hydraulic and mechanical systems, controls
and devices to control and
automatically operate indus¬

—

of this section "Securities Now in Registra¬

SINCE
•

Automatic Controls, Inc.
Dec. 28, 1961 filed 50,000 common.
Price—$4.
—Design, manufacture and installation of

$2,300,000

debentures

the SEC since the last issue of the "Chron¬

icle"

26,

of 6J/2% sinking fund
(par $20) due Jan. 15, 1978 and 230,000
common
(par $1) to be offered in units of one deben¬
ture and two common shares. Price—$25
per unit. Busi¬
ness
Transportation, distribution and sale of natural
gas.
Proceeds — For construction, debt repayment and

Registration statements filed with

101

* INDICATES ADDITIONS |

Registration

American Gas Co.

March

NOTE

(389)

R. /. HENDERSON & CO., INC.,

^ ;

Los Angeles
WOODCOCK, MOYER, FRICKE & FRENCH, INC., Philadelphia
•

102

(390)

The Commercial and Financial Chronicle ;

Thursday, January 24, 1963

Continued, from page

Colorado Imperial Mining Co.
1962 filed 200,000 common. Price—$1. Busi¬
ness—General mining.
Proceeds—For exploration and

D. C. Transit Systems, Inc.
April 30, 1962 filed $6,250,000 of 6%% conv. subord. de¬
bentures due 1977 and five-year warrants to purchase

operating

101

Sept. 20,

Cambridge Fund of California, Inc.
Sept. 28, 1961 filed 280,000 common. Price—By amend¬
ment.

Business—General real estate. Proceeds—Debt

re¬

Office—Creede, Colo.

expenses.

—None.

Underwriter

aggregate of 187,500 class A shares, to be offered for
subscription by holders of class A and class B stock in

payment and working capital. Office—**324 E.

Bixby Rd.,

•

Cameron Iron

Works, Inc.

Nov.
' ~

•

26,

;Tprk, Note ■:—* This registration

Enterprises, Inc.
May iu, 1962 filed 100,UOu conmiuit Price—-$5/Business
—Company was formed to own and operate a country,
club and golf course, swimming pool and cabana club,
near
Cape Canaveral, Fla., and develop real estate,
erect homes, apartment houses, motels, etc.
Proceeds—
Office—309 Ainsley
Underwriter—Willis E. Burnside &

Fla.

Miami,

;

Inc.

14, 1962 filed $500,000 of 8% debentures due 1969.
Price—At par
($1,000).
Business—Company plans to
offer management and consultant services to motels and
furnish them with equipment.
Proceeds—For general
corporate purposes. Office—1068 S. Ocean Blvd., Pom-

Beach, Fla.

Company

Underwriter—None.

around

plans

and

water

Mines, Inc.

April 10, 1962 ("Reg. A") 2,000,000 common. Price—15c.
Business—For

exploration, development and production
of mineral deposits.
Proceeds — For mining expenses.

Address—Box 469,
naluna & Co. and

•

asset

Inc.
1962 filed 100,000 capital shares. Price—Net
value
(max. $14) plus a 2% sales commission.

stocks.;

St.,

Inc.,

same

Jacksonville,

sale

growth
tion

Agency*

air

pollutants;

and

development,

Computer Concepts Inc.

•

;

29, 1961 filed 20,000 class A common. Price — $25.
Business—Development and sale of advanced program¬

Consolidated

Co., pa¬
rent, finance construction, etc. Office—1506 Commerce
-St., Dallas. Underwriters—(Competitive) Probable bidders:

Halsey, Stuart & Co. Jnc.; Salomon Brothers &
Hutzler-Equitable Securities Corp. (jointly); Eastman
Dillon, Union Securities & Co.; Kidder, Peabody & Co.,
Inc.-Merrill Lynch, Pierce, Fenner & Smith Inc.
(joint¬
ly); First Boston Corp.; Lehman Brothers. Bids—Jan. 29,
1963 (12 noon EST)^ Information Meeting—Jan. 25
*(11
a.m. EST) at 2 Rector
Street, New York.

are

•

New York.
-

Co., N; Y. Offering—Feb;'
'

Bowling Corp* \
- - *
*
1962< filed 100,000 common, of which 50,000
ahares. are. to ,be uffered
by company and 50,000 by
stockholders. Price—$3.
Business—Leasing and operat¬
ing of bowling centers. Proceeds—For expansion, equip¬
ment and working
capital. Office—230 Park Ave., N. Y.

Underwriter—Prpvost Securities, Inc** N. .Y.

1962

filed

mutual fund. Proceeds—For investment. Office

Sept.

class

items.

Circle K Food Stores,
Nov. 28, 1962 filed 96,000

"A"

of which 64,000 are
to be offered by
company and 32,000 by stockholders.
Price—By amendment (max. $6.25). Business—Opera¬
tion

retail

common,

drive-in

expansion and
Magoffin Ave.,

grocery stores.
Proceeds—For
corporate purposes.
Office—904
Paso.
Underwriter—Eppler, Guerin

other

Turner, Inc., Dallas. Offering—Imminent.

•

Colonial Board Co.

preferred,

common

and

warrant

purchase

one

common

share. Of the common, 26,000 shares will
be sold for the

company and 49,000 for stockholders.
ment. Business — Manufacture of

Price—By amend¬
fiberboard, boxboard
and shoeboard. Proceeds—For
equipment, plant improve¬
ment, loan repayment and working capital. Office—615
Parker St.,
Manchester, Conn. Underwriter—Putnam &
Co., Hartford. Offering—Expected in February.

ness—A

corporate guidance and interim financing con¬
may also act as a broker-dealer and un¬
derwriter. Proceeds—For investment. Office—733 Third

Company

Ave., N.

New York.
Credit

Underwriter—Hampstead Investing Corp.,
•.

Department, Inc.

>/■/'/

" V-.

n*\

;

Jan. 26, 1962 filed $1,200,320 of 7% conv.
srubord. de¬
bentures due 1974 and
54,560 common shares to be
offered in 2,728 units, each
consisting of $440 of deben¬
tures and 20 common
shares.

Price—$550

Business—A consumer sales finance
company.
—For debt repayment.
Office—1775

Underwriter

—

Bernard

Price—$4/' Business

Kahn

Offering—Expected in February.

per

unit.

Proceeds

Broadway, N. Y.
& Co., Inc., N. Y.

Offering—Expected in iate February.
common

with attached

war¬

and deuterium

oxide, and to establish and equip a gen¬
laboratory. Proceeds—For working capital,
construction, equipment and other corporate purposes.
Office—360 Lexington Ave., N. Y. Underwriter—None.
eral research

Diamond Mills Corp.
Jan. 23, 1962 filed 200,000
common, of which 120,000 are
to be offered by the
company and 80,000 by stockhold¬
ers.
Price—By amendment. Business—Manufacture of
women's nylon hosiery. Proceeds—For
debt repayment
and working capital; Office—417 Fifth
Ave., N. Y. tTn-

•

derwriter—Drexel

Co.,

Philadelphia.

Offering—-In¬

definitely postponed.
Diversified Collateral Corp.
June 13, 1962 filed
77,050 common. Price—By amend¬
ment (max. $11.75). Business—A
real estate investment
company. Proceeds—For investment. Office—8397 N.rE.

Second Ave.,
Miami, Fla. Underwriter—Karen Securities
Corp., N. Y.

Diversified Real Estate Trust
"
March 8, 1962 filed
1,000,000 shares of beneficial Inter¬
est.
Price—$10.
Business—A
real
estate
investment
trust. Proceeds—For investment.
Office—500 Fifth Ave..
N. Y. Underwriter
-

•

Proceeds—For

Creative Ventures Corp. ;V'" :
May 28, 1962 filed 150,000 common and warrants to pur¬
chase 30,000 additional shares, to be offered in
units of
one share and one warrant.
Price—$2.25 per unit. Busi¬
cern.

March 28, 1962 filed 37,500 shares of
$1.50 preferred ($25
par), 75,000 common and warrants to purchase 37,500
common shares to be offered in
units of one
two

common.

120,000 shares to be ofby holders of its stock and debbntures in units (of one- share and One
warrant) on the
basis of 3 units for each 5%
prior preferred share held,
2 units for
each 5%
preferred A stock held and 40
units for each $1,200 face amount of
non-interest bear¬
ing subordinated debentures held. At the same
time, the
company will offer the securities to the public. Price—
To
subscribers, $20; to public, $22.25. Business—Com¬
pany plans to erect a small size
production and experi¬
mental plant for the limited manufacture
of deuterium

common.

working capital. Office—2740 N. Clybourn Ave., Chicago.
Underwriter—None.
>

Inc.

rants to purchase an additional
ered for subscription

Broad

of which 70,000
by company and 30,000 by stockholders, i
Price—By amendment (max. $12.50). Business—Design,
manufacture and sale of plastic educational
toys. Pro¬ xf
Cotter & Cor
ceeds—For working capital.
Office—1125 Close Ave.,
Nov. 21, 1962 filed $3,000,000 of 0% subordinated
notes,
Bronx. N. Y.
Underwriter—J. R. Williston & Beane,
series I. Price—At par.- Business—A
cooperative whole¬
New York, Offering—Indefinite.
saler of hardware and
related
•

■

—Commercial printing. Proceeds—For debt
repayment,
other corporate purposes/ Office — 750
Hyler St.,
Teterboro, N. J. Underwriter—Vara Alstyne Noel Corp.,

—

23,

Troy'Bergen,-Inc.
20, 1962 filed 140,006*

-Dec.

repayment of debt, a ad
working capital. Office—315 W. 47th St., N. Y. Under¬
writer—Van Alstyne, Noel & Co., N. Y. Note—This firm
was known
formerly as the Cosnat Record Distributing
Corp. Offering—Indefinitely postponed. vrj/

to be offered

May

/•

•

—

are

opment, new plant. and equipment and working capital.
; Western / / Ave.*
Boston."
Underwriter-^
Schmidt, Eharp, McCabe & Co., Inc., Denver.
Delta

Inc.
100,000 common,

Boston, Inc.

April 26, 1962 filed 200,000 common. Price—$5. Business
—Company i plans to. design, develop and produce eltectronic and electro-mechanical
devices, including printers
for electronic ^computers.; Proceeds-^-For
product devel-

and

Price—$4. Business-—Manufacture, and Sale of a* patented
contact
lens.
Proceeds—For
moving
expenses,
ireequipment, sales promotion and working capital*. Office/
search, inventory, advertising and working capital.
—221 N. La Salle St.,
Chicago. Underwriter—Price In¬
Office—360 Main St. E., Rochester, N. Y. Underwritervesting Co., New York.
John J. DeGolger Co.,
Inc., Rochester, N. Y. Offering—■■
Chemical Coating Corp.
Indefinite.
June 29, 1962 filed 70,000 common.
Price—$5. Business
Continental Device Corp.
—Company plans to operate a painting contracting busi¬
Dec. 26, 1962 filed 275,000 common! Price—By amend¬
ness and manufacture
paints. Proceeds—For general eorment (max. $6). Business—Company is
engaged in re¬
norate purposes.
Office—Santurce, P. R. Underwriter—
search, development and manufacture of certain types
Arnold Malkan Investment Growth of Puerto
Rico, Inc.,
of semiconductor
products, and specialized test equip¬
Santurce, P. R.
ment. Proceedsh—Por loan
repayment, equipment, and
§ Chestnut Hill Industries, Inc.' 0
other corporate purposes. Office—12515 Chadron
Ave.,
Nov. 29, 1961 filed 300,000 class A
common, of which
Hawthorne, Calif. Underwriter—Carl M. Loeb, Rhoades
225.000 are to be offered by the
company and 75,000 by t & Co., Inc. New York. Offering—Expected in February
stockholders. Price—$5. Business—Design and manu¬
or March.
facture of women's, misses' and
junior sportswear, co¬
Cosnat Corp.
ordinates, and dresses. Proceeds—For debt repayment,
May 26, 1962 filed $1,250,000 of 6% convertible sub¬
equipment and working capital. Office—2025 McKinley
ordinated debentures;due 1977. Price—At par. Business
St., Hollywood, Fla. Underwriter
Clayton Securities
—The
manufacture and
distribution
of phonograph
Corp., Boston, Mass. Offering—Indefinite.
records. Proceeds
For the
Toys,

•

Sept. 28,

Investments, Inc.

-Contact Lens? Guild, Inc..19, 1962 ("Reg. A") 75,000

produc-;

Guidance

Data Systems Devices of

Deuterium Corp.
Sept; 28, 1962 filed 120,000

Office—342

St., Philadelphia. Underwriter—Gerstley, Sunstein & Co., Philadelphia.

electronic vaporizing unit for dispensing such chemicals. Proceeds—For debt repayment,

Child

Corp. of America <2/11-15)

1962 filed 105,000 common. Price—$1.25. Busi¬
ness—Development of specialized data processing appli¬
cations and the
furnishing of data processing services.
Proceeds—For training of personnel, advertising and
sales promotion, and working capital. Office-t-44 Beaver
St., New York. Underwriter—A. D. Gilhart & Co., Inc.,

;

Data

Oct. 29,

New York.

new

(1/29)

due 1989, repay advances from Texds Utilities

Vending Corp.

Mutual

Dallas Power & Light Co.

Jan. 2, 1963 filed $25,000,000 of first mortgage bonds due
1993. Proceeds—To redeem $20,000,000 of 5^4% bonds

Dec.

—211

Price—$12 per unit. Business—Production and
designed to control odors, bacterial'

sale

Blvd./ St. Louis.
Co., St. Louis. Offering—Indefinite,,

—A

chemicals

and

•

Proceeds—For construction and general corporate
purposes. Office—r3600 M St., N, W., Washington, ,D. C»
Underwriter—None. '

change for acceptable securities on the basis of pne
share for each $10 market value of securities). Business

Electronics Corp.

and

D. C.

working capital.
Office—3570
Underwriter—Edward D. Jones

Dec. 21, 1962 filed 500,000 common. Price—$10.
(For an
initial period the fund will also offer its shares in ex¬

Dec..28, 1962 filed $150,000 of 6% subordinated income
due 1973 and 30,000 common shares to be
offered in units consisting of one $10 debenture and two

Lindell

Consultant's

debentures

common.
\\

; Proceeds—For

withdrawn.

Office—110 North

Underwriter—CN

shares held. Price—At-the-market.

health, accident, life and hospital in¬

St., Dover, Del. Underwriter—Dana
Securities Co.* Inc;, N. Y. Note—This registration will

specializing in life insurance

111.

consisting of $100 of debentures and three war¬
Price—$100 per unit. Business—Operation of a
public transit system in Washington, D. C.; a new sub¬
sidiary to construct housing projects in Washington,

Office—129 S. State

address. Offering—Indefinite.

Chemair
*

fund

Proceeds—For; investment.

East

;

mutual

surance.

20,

Business—A

common

Business—Sale of

April 2, 1962 filed 70,000 common. Price—$5.75. Business
—Operation of vending machines. Proceeds—For debt
repayment, working capital and other corporate purposes.

•

Central Mutual Fund,

Aifg.

units

rants.

Offering—Indefinite.

Wallace, Idaho,. Underwriters—Pen*
Standard Securities, Inc., Spokane,

Wash. Offering—Indefinite.

,rA

• Consolidated Leasing
Corp. of America
April 27, 1962 filed $1,000,000 of 6% % subord. 'deben¬
tures due 1977 (with warrants), iand 99,000 common.
Price—For debentures, at par; for stock, by amendment
(max. $9). Business—Renting of cars, trucks and equip¬
ment. Proceeds—For debt; repayment, an acquisition
and other corporate purposes. Office —1012 Baltimore
$ Ave., Kansas City, Mo.Underwriter—Blair& Co^ N. Y."

sewage

Cedar Lake,

Center Star Gold

-;v' r'$/

1962

Underwriter—H. Hentz &

qualify as a public utility and
disposal services in and
Ind. Proceeds — To construct a:
6ewage disposal system. Address — R.R. N. 3, Box 28,
Cedar Lake, Ind. Underwriter—None.

furnish
,

•

Conso Products, Inc.
Sept. 27, 1962 filed 125,000 common. Price—By amend¬
ment (max. $10). Business—Manufacture of home fur¬
nishing trimmings and accessories. Proceeds—For ma¬
chinery and working capital. Office—27 W. 23d St., N. Y.

Cedar Lake Public Service Corp.
March 20, 1962 filed 9,964 common. Price—$100. Business
—

.v"'*

by the company and 95,000 by stockhold¬
ers. Price—By amendment. Business—Design and manu¬
facture- of digital equipment; Proceeds—For debt re¬
payment. Office—983 Concord St., Framingham, Mass.
Underwriter—Kidder, Peabody & Co., N. Y. OfferingIndefinitely postponed.
\

Dec.

pano

to be offered

Co., Inc., New York. Offering—Expected in early Feb.
Castle Hospitality Services,

!-; -? I':-s-' v*

v"\

Computer Control Co., Inc.
Jan. 24, 1962 filed 157,500 common, of which 62,500

For debt repayment and expansion.

Bldg.,

ming systems, for solution of business problems by the
use of digital computers. Proceeds — For
general cor¬
porate purposes. Office—1012 14th St.. N. W„ Washing¬
ton, D. C. Underwriter—Doft & Co., New York. Note—
This registration was withdrawn.

Hills

Canaveral

for each 3.36

•

■

("Reg. A") 46,000 common to be offered
subscription by stockholders on the basis of one share

V--; for

Price—By amend>
ment (max. $21.50). Business—Manufacture of equip- * ment used in the petroleum and processing "industries.^
Company also makes forged metal products used in the
V aviation, missile and atomic industries. Proceeds—For
selling stockholders. Address—P. O. Box 1212, Houston,*-;
1- Texas./
Underwriters—White, Weld & Co., Inc., and
Sept. 14, 1962 filed 280,000 common.

VUehman Brothers, "New
was withdrawn.

V-.\

Commercial Life Insurance Co. of Missouri

Long Beach, Calif. Underwriter—To be named.

■

•••

—

Consolidated

Financial

(same address). Offering—Indefinite/
Diversified Realty Investors '

Program

June 28, 1962 filed
1,900,000 certificates of interest. Price
—$1 per interest.' Business—A real estate
investment
trust.
Proceeds—For investment.
Office—19 E. First
South, Salt Lake City. Underwriter—Realt»
Securities.
InSalt Lake City.
'
.

•

Dixie

Lime

Stone

Co.

(1/28-31)

•;

Sept. 27, 1962 filed 100,000

common.
Price—By amend¬
(max. $6.75).
Business—Mining and processing
of crushed
granite, lime rock, and agricultural limestone
Proceeds—For loan repayment, and
working capital.
Office—11 N. Main St.,
Ocala, Fla. Underwriter—Courts

ment

Co., Atlanta, Ga. Offering—Indefinite.

Doman Helicopters, Inc.
,*
April 19, 1962 filed 418,680 common to be
offered for
subscription by stockholders on the basis of two
new'
shares for each three held.

$1.25).
tion

Price—By amendment (max.

Business—Research, development
experimental

helicopters.

and

construc¬

Proceeds—To

obtain

Number 6232

Volume 197

The Commercial and Financial Chronicle

of models, train service personnel, repay
debt, etc. Address—Municipal Airport, Danbury, Conn.
Underwriter—None. Note—The SEQ has questioned the

certification

First New York Capital Fund,
Oct.

Inc. ,v
filed 2,770,000 capital shares.

1961

ceeds—For

business

small

investment.

Manhasset, N. Y.

\<ic.

Donmoor-isaacson,

27,

Business—A

and adequacy of this statement.

accuracy

(391)

investment

Office—1295

holders.

ment

Florida

Prio*;—By amendment (max. $12). BusinessDesign ^iid' manufacture of boys knit shirts, sweaters,
and pajamas. Proceeds—For working capital. Office—
HIS Broadway, N. Y. Underwriter—Goodbody & Co.,
New York. Offering—Expected in February.

b-C

New York.

H tfynapower Systems; Corp.
■

Forst

•

electro-mechanical vehicles

and

Corp.

be sold by the company and 25,000 by stock¬
holders). The securities are to be offered in units of one
$100 debenture and 10 shares. Price—By amendment.

common.

sued

—For

Office—141

Milk

St.,

Boston. Underwriter—

Paine, Webber, Jackson & Curtis, Boston. Offering—Ex¬
pected in February.
•/••"•'r.vr-v'' v;-.t ; .

$1,300,000

Exchange, Inc.—™

-Common

February 5 (Tuesday)
Bell
;

Telephone Co. of Pennsylvania
<

(Bids

„

per

flat

doors

and

$1 a.m. EST)

Button

Debentures

$50,000,000

Inc.)

Co.,

February 6

Common

293,000

(Wednesday)
Bond$

Development Bank-------

Japan

(First

Boston Corp.;
Smith, Barney

Dillon, Read
& Co^ Inc.)

Co. Inc.;
$17,500,000

Laclede Gas Co.-««—
(Bids

10:30

and
»

Debentures
$10,000,000

EST)

a.m.

(Lehman

class A and

one

mirrors

February 11
Data Corp. of

one

Pierce,

Fenner &
200,000 share*

Bonds

(Monday)

America-

—Common

Gilhart

Co., Inc.) $131,250

-Common

——

(Schwelckart Ss Co.) 80,000 shares

February 15

com-

Corp.

accessories, and sportswear. Proceeds
Fifth

417

(Thursday)"

Natural Gas & Oil Producing Co.--»-----~.CIass A

and

—

Lynch,

Service

common

(Peter 'Morgan

products.

Office

Public

(Dillon, Read & Co., Inc.) $14,000,000

$900,000.

Co.)

February il8|^( Monday
,

Atlantic Coast Line BR.————Equip. Trust Ctfs.
(Bidsv.12.-moon

EST)

$3,600,000

Texas Power & Li^it C0.---L—i:—--l.—Bonds
(Bids 11:30 a.m. EST) $10,000,000
Y'?-'
Western Power & Gas Co.—-———Debentures
Webber, Jackson & Curtis; Dean Witter & Co.;

(Paine,

23,

general corporate purposes.

Merrill

and Reinholdt <fc Gardner)

Southwestern

unit Business-Company
glass

Brothers;

Smith Inc.;

R. E. D. M. Corp.-—

Stone & Webster Securities Gorp.)

and

$9,000,000

February 19 (Tuesday)
Emerson Electric Manufacturing Co.—-Common
(Blyth & Co., Inc. )

162,045 shares

Potomac Electric Power Co.———
(Bids 10 a. m. EST)

February 20

conkruction. Proceeds—For

ment,

expansion, researcn, and inventory^ Office—545
Lane, Teaneck, N. J.
Underwriters—Winslow,

Cohu & Stetson and

.—-Bonds

$50,000,000

research,

debt repayment and working capital.
St., New Rochelle, N. Y. Underwriter

Co.. N.

-Common

(Leonard B. Btern

I; Gotham Educational Equipment Co. Inc.

Brooklyn Union Gas Co.-——Bonds
(Bids to be received) $12,000,000
*»V'V

i:i

-,.r

March 5

(i"

<}'*

•*' v

(Tuesday)

Northwestern Bell Telephone Co.——Debentures
(Bids to be received)' $40,000,000
^

March 6
-

chalk

boards, exhibit cases, etc. Proceeds—For general
corporate purposes. Office — 91 Weyman Ave., New
Rochelle, N. Y. Underwriter—Federman, Stonehill & Co.,
New York. Offering—Expected in mid-March.
• Gourmet Food Products, Inc. :>
May 25, 1962 filed 28,113 common. Price—$3.50. Busi¬
ness
Growing, purchasing, distributing and selling
.whole potatoes and processing and selling of prepared
potato products. Proceeds—For the selling stockholders.
Office—915 Southeast 10th Ave., Portland, Ore. Under-

(Wednesday)

Atlantic City

March 11

writer—To be named. Note—This
drawn.

registration

\/rr~.y-r*-s-x,':\ V:- v..:v V
-

•'

was

with-

■

;

page

104

—Bonds

(Monday)
(Bids

a.m.

——Bonds

EST) $9,375,000

March 12 (Tuesday)

——Bonds

Oklahoma Gas & Electric Co
(Bids 11 a.m. EST) $15,000,000

March 25

(Monday)
Equip. Trust Ctfs.

Norfolk & Western Ry
(Bids

May

to be received)

$5,475,000

(Tuesday)

Virginia Electric & Power Co

•

Continued

—

EST) $15,000,000

Central Illinois Light Co.—

•v

—

Electric Co.—

(Bids* ll^a-m.

(max. $6). Business—Design, manufacture, and market¬
ing of items. used in educational institutions such as

♦:;fi (■

•

Dec. 4, 1962 filed 75,000 common. Price—By amendment

Co.) $450,000

(Wednesday)

February 27

Office—36 Lawton
&

(Monday)

Venride Inc.

tical and veterinarian products, rroceeds—For advertis¬

ing,

February 25

Laird, Bissell & Meeds, N. Y.

13, 1962 filed 80,000 common. Price—$4. Busi¬
ness—Manufacture, development and sale of pharmaceu¬

—Droulia

(Wednesday)

Arkansas Power & Light Co.—
;—Bonds;
V
v
(Bids to he received) $15,000,000

debt repay¬

Geld Leaf Pharmacal Co., Inc.

recession offer to stockhold¬

companies. Proceeds—For in¬

Units

Inc.)

Mountain, Inc.————Common

(A.

used in

Cedar

payable. Office—3600 W.
Underwriter—None,

type securities of Israeli

Camera

Co.,

Laclede Gas Co.———————Preferred

seams

accounts

2,750,000

Common

(Don D. Anderson & Co., Inc.) $300,000

plastic, metal and glass, products for

amendment

■

(max. $15). ' Business—Design and
tools, dies, molds, beryllium castings and

shares of beneficial in¬
(max. $10). Business—
A mutual fund which plans to invest primarily in equity
vestment

United

Devices, Inc.
June 29, 1962 filed 100,000 common. Price—$10. Busi¬
ness—Manufacture, sale and lease of steel supports and

amendment

filed

Common

$i,908,ooo

(Dempsey-Tegler

Ave., N. Y. Underwriter—Sprayregen, Haft & Co., N. Y.
Offering—Indefinitely postponed,

Nov.

mirror

of women's fashion

Fedco Corp.

1962

^.Common
250,000 shares

(Goldman, Sachs «& Co., and Lehman Brothers) 2,500,000 shares

(EL

March

Price—By

Inc.-;

Pacific Southwest Airlines——^

1962 filed 150,000 common, of which 60,000
are to be
offered by the company and 90,000 by the
company's parent, Glen Modes, Inc. Price—By amend¬
ment (max. $7). Business—Design, production and sale

Oct. 29, 1962 filed 20,000 common, of which 17,500 are to
be offered by company and 2,500 by a shareholder. Price

15,

manufacture

Glensder

be withdrawn.

terest.

March

by others. Proceeds—For debt
and general corporate purposes. Office—8
Benson Place, Freeport, N. Y. Underwriter — Arnold
*Malkan & Co., Inc., N. Y. Note—This registration will

Aug.

$2,875,000

common,

Birr, Wilson & Ov Inc^ San Fi^cisc^j Note-Chis reg¬

manufactured

Fund

Bancgrowth,

^|-

Zero

istration will be withdrawn.

repayment

Mutual

Units

(Dempsey-Tegeler ft Co., Inc.)

Global Construction

Israel

(Monday)

C. Allyn & Co., and.W&lston & Co.)

Florida

Price—$3. Business
Proceeds—For

Fastpak, Inc.
„'
•Nov. 30, 1961 filed 125,000 common. Price—$5. Business
—rThe distribution of nuts, bolts and other fastening

First American

Common

Great Eastern Insurance Co

sliding
Proceeds
—For equipment, inventory and working capital. Office
-^1299 N. First Street; San Jose, Calif. Underwriter-?-

Fidelity Mining Investments Ltd.
30, 1961 filed 800,000 common. Price—By amend¬
ment. Business—Exploration and testing of mining prop¬
erties. Proceeds—For general corporate purposes. Office
—62 Richmond St., Toronto. Underwriter—G. V. Kirby
& Associates, Ltd., Toronto.

Mortgage Corp., Inc

order temporarily suspending this issue.

wardrobe

Ave., Chicago.

75,000 shares

company.

DesigniCorp.

share,- Price—$5.05

plans

Equity Funding Corp. of America
March 29, 1962 filed 240,000 common. Price—By amend¬
ment (max. $6.50).
Business—A holding company for
firms selling life insurance and mutual funds. Proceeds
-*-For new sales offices; advances to / subsidiaries and
working capital. Office—5150 Wilshire Blvd., Los An¬
geles.
Undenvriter—Wisconsib-Contlneiital, Inc., Mil¬

common.

business investment

shares to be offered in units of

Pratt

(A.

;jnon

—

^; -.

(National Mortgage Agency, Inc.) $345,000

February 4

Offering—Indefinite.

Glasco Pacific, Inc.
July 12, 1962 filed 250,000 class A and 250,000

Proceeds—For

& Co.)

(Emanuel, Deetjen & Co. and Zuckerman Smith & Co.)

1961 filed 330,000

General

par ($500).
"Business
Design and manufacture of miniature and
subminiature metal*: products' fOr / electronic, appliance
and
automotive
industries. Proceeds—For equipment,
debt repayment and working capital. Office — 140 S.
Olive St., Elyria, Ohio. Underwriter—Fulton, Reid &
Co., Inc., Cleveland.
v.
.r
-

use.

; - -*

American Gas Co

April 25, 1962 ("Reg. A") 65,000 common. Price—$3.
Business—Design and development of new products for
various ' industries.
Proceeds—For
debt
repayment,
equipment and working capital. Office—1252 W. Peachtree St., N. W., Atlanta, Ga. Underwriter — Robert M.
Harris & CO., Inc.;, Philadelphia. Note—The SEC has is¬

1963 ("Reg. A") $300,000 of 6% convertible sub¬

and reduction of

H. Bishop

Roddy Recreation Products Inc

curities

ordinate^ debentures due 1968. Price—At

ers

Proceeds—For inventory. Office—
•4124 N. Broadway, St. Louis. Underwriter—Midland Se¬

equipment. Proceeds—For debt re¬
payment, equipment, inventory and working capital. OffiCe-r-150-49 Hillside Ave., Jamaica, N. Y. Underwriter
—S. C. Burns & Co., Inc., N. Y, Offering—Indefinite.

home

tion machinery and

the distribution of

and

National Mortgage <CorpM Inc.^™™..Certificates
(National Mortgage Agency, ' Inc.)^ $8,000,000
"

.valves and fittings.

Electro-Temp Systems, Inc.
18, 1962 ("Reg. A") 160,000 common. Price — $1.
'Business—Sale of commercial and industrial refrigera¬

manufacture of

Seciur^lee Co.}<-85,000 shares

pioneer Telephone.

National

•

•:p^:;i:':February 1 (Friday)"'

of which 50,€00 are to be offered by company and 10,000 by stock¬
holders.
Price—$9.50.
Business—Sale of steel pipes,

Oct.

v—By

rN /

■

(Dean Witter & Co.

Geigher Pipe Supply Inc.
Sept. 28, 1962 filed 60,000 class A

Co., Inc., New York. Offering—Imminent.

devices

ESTl-:$25,0OO,OO0t\'

noon

Blvd., Newark, N. J.
Underwriter—Godfrey, Hamilton, Taylor & Co., N. Y.
Offering—Temporarily postponed. < k ; : ^ j ;

>^^Jayark-Films':

investment. Office—1180 Raymond

Passaic Ave., Caldwell, N. J. Underwriter—M. L. Lee &

■'V*'-'1

1 '

(BidS ia

>■*%

Greatamerica Corp.

Oct. 27,

Price—$5.
•Business—Research and development toward iffiptbvement of gas centrifuge technology for separation of iso¬
tope and gaseous materials. Proceeds—For equipment,
expansion, research and working capital. Office—368

r'r

(Tuesday)

Dallas- Fower.& •3Light'Uo^.-l--(^..^ii^:^^-^Boiids

(Alex) & Sons, Inc.

—A small

Electro-Nucleonics, Inc.
Sept. 24, 1962 ("Reg. A") 29,525

.^American Shs.

(Ingram, Lambert & Stephen, Inc.) $300,000

>Cd., Inc., New York. Note—This; registration is expected
to be withdrawn.

.Common

;

<Mld-Town Secuitiea Corp.) $265,000

January 29

Garden State Small Business Investment Co,

Business—Operation of retail camera stores and depart¬
ment store concessions.
Company also processes black
land white film and repairs -photographic equipment.
Proceeds^-For debt repayment and working capital. Of¬
fice—68 W. Columbia St., Hempstead, Nv Y. Underwrit¬
ers—Edwards & Hanleyi Hempstead, L. L, and Street &

*•

$495,000

—Route 18, Tices Lane, East Brunswick, N. J. Under¬
writer—Alessandrini & Co., Inc., N. Y.

000 will

>,/ 1;

100,000 shares

Business—Operation of retail meat supermarkets. Pro¬
ceeds—For debt repayment and working capital. Address

March 28 1962 filed $500,000 of 6% conv. subord. deben¬
tures due 1972 and 50,000 common shares (of which 25,-

(First Boston Corp. and Daiwa Securities Co., Lta.j
\1''400,000 A. D. S.

Freoplex, Inc.

Underwriter—None.
Eastern Camera & Photo

Corp.)

Jan. 2, 1963 ("Reg. A") $200,000 of 7% convertible sub¬
ordinated debentures due March 1, 1975. Price—At par.

Office—2222 S. Centinela Ave., Los Angeles.

'-f

Tnc.

Donnell & Co., New York.

purposes.

Securities

Nippon Electric Co.,

Un-

March 23, 1962 filed 125,000 common. Price—Dy amend¬
ment
(max. $15). Business—Wholesale distribution of
toys and games. Proceeds—For selling stockholders. Of¬
fice—2885 Jerome Ave., Bronx, N. Y. Underwriter—Mc¬

working capital, equipment and debt re¬

Fla.

May 10, 1962 filed 169,420 common to be offered for
subscription, by stockholders. :• • Price-^-By amendment
(max. $2). Business—Company owns and licenses carton
pouring spout patents and die patents. Proceeds—For
debt repayment and other corporate purposes. Office—
100 W. 10th St., Wilmington, Del.
Underwriter—None.

S; $$$$&'
-

Electronic devices Tor1 ■'medicaland^ marine

waukee.

Alai,

Floseal "Corp. ;

-Sept. 28, 1962 filed 750,000 cpihmori. Price—$1. Busi-

Jan. 4,

company

Proceeds—For investment.

Blvd., Pompano Beach,

•

Dynamic L. P. Industries, Inc.
June. 21, 1962 filed 75,000 commonu Price—$4. Business
manufacturing, labeling and packaging of long playing
stereophonic and monaural phonograph records for label
jrecord companies. Proceeds—For equipment and work¬
ing capital. Office — 900 Passaic Ave., East Newark,
N. J. Underwriter—Mortimer B. Burnside & Co., Inc.,

Elttt©C lilC*

Jai

'• '•

j\';

(Courts & Co.)

;

Florida

(Monday)

(Chase

Price—By amend¬

investment

1962 filed 400,000 common. Price—^$5. Busi¬
ness
Operation/of Jai Alai games and'pari-mutuel
betting. Proceeds^-For rent, purchase. of leased quarter^,
building improvements, working, capital.
Office—Fern
Park, Fla* Underwriter*~Toibe named, ■ v. <
^
^

1962 filed 150,000 common. Price—By amendment
(max. $9). Business —r Manufacture, of various, types of
lights for industrial and commercial use. Proceeds—For
the selling stockholder. Office — 2321 Hudson Blvd.,
North Bergen, N. J. Underwriter—Auchinclogs, Parker
& Kedpath, New York. Offering—Indefinite.

Business—An

$ioj.

'•

Dixie Lime & Stone Co

June 28,

■'

Aerosystems Technology Corp.—1.....Common

(2/4-8)

derwriter—Dempsey-Tegeler & Co., Inc., St. Louis,

Dec 6,

payment.

(max.

specializing in bank stocks.

Corp.

Proceeds—For

Bancgrowth, Inc.

Office—3356 Atlantic

■

tiess—Manufacture

January 28
,

March 16, 1962 filed 250,000 common.

Duro-Test

NEW ISSUE CALENDAR

Underwriter—None.

Feb. 20, 1902 filed l$u,t)uu common, of which 50,000 are
to be offered by the company and 100,000 by stock¬

Price—$1.

company.
Pro¬
Northern Blvd.,

103

(Bids to be received) $30,000,000

—.

-Bonds

The Commercial and Financial Chronicle

(392)

104

Continued jrom page

103

Hunsaker

Continental Real Estate Investment Trust

Great

nated

named.

(max.

selling

Price—By
Business—Operation of 16

Industry Capital Corp.
26, 1961 filed 500,000

Business—Real

common.

Price—$15.

Oak

InfotronicsCorp.
Oct. 23, 1962 filed 100,000 common/Price—$5. Business
—Research, engineering, manufacturing and marketing
in the field of electronic information handling and auto¬
mation systems* Proceeds—For new products, inven¬
tory, new plant and working capital. Office—1401 S. Post

Sand Co.

Rock &

New York,

Business—Manufacture of prefabricated homes. Proceeds
—For

/ &

125,000

common.

Price—By amend¬

For debt

repayment, advetrising, research and develop¬
ment and
working capital. < Office—2176 Palou, San
Francisco. Underwriter—L. H, Wright Co.,
Inc., N. Y.
Hill Street Co.
Oct.

16, 1961 filed 2,265,138 common to be offered for
subscription by stockholders of Union Bank of Califor¬
share-for-share basis.

Price—$3. Business—A
company.
Proceeds—For-in¬
Office—760 S. Hill St., Los Angeles. Under¬
investment

writer—None.

27, 1962 filed $1,000,000 of 4% cum. income deben¬
tures due 1982 and
15,000 capital shares to be offered in
units consisting of 10 shares or one
$500 debenture and

five shares.

Price—$1,000 per unit. Business—Company
plans to purchase the Hillsboro
Club, a social and rec¬
organization. Proceeds—For working capital,

reational

repayment,

and

property

improvement.

Office—

Blvd., Fort Lauderdale, Fla. Underwriter

■

Hollingsworth Solderless Terminal Co.;
("Reg. A")

Business—Manufacture,

75,000 common. Price
$4.
sale and development of solder—

less terminals and other wire
terminating products. Pro¬
ceeds—For debt repayment,
equipment, advertising and
working capital. Address—P. O. Box 430,
Phoenixville,

Pa.

Underwriter—Harrison

ing—Temporarily postponed.
•

Co., Philadelphia. Offer¬

Honora, Ltd.

•

29, 1961 ("Reg. A") 76,500
Business—Purchase of cultured
their

International

Nov.

1962

Terrazzo

("Reg.

A")

Business—Manufacture and

Proceeds—For debt

repayment, equipment, working capital and other corpo¬
rate purposes. Office—826 E. 62nd St., Brooklyn, N. Y.

Underwriter—Jay Gould & -Co., Inc., Ill W. 57th St.,
New York. Offering—Imminent.
■

distribution

•

nr^nratp nnrnnse*

the

pearls

Price—$3.75.

Japan

Proceeds—For

OffW—4<> W.

48*h ^t.. N

and

general

writer-Sunshine Securities, Inc., Rego
Park, New York.
..Note—This letter was withdrawn.,,.*,:v

holders. Price
$3. Business — Manufacture of certain
patented cooling packages/ Proceeds-r-For debt repay¬
ment and working capital. Office—Jennings Bldg., P. O.
Box 638, Moberly, Mo. - Underwriter—John
W. Flynn
Sc Co., Santa Barbara, Calif. Note—This letter will be
—

J withdrawn.
Las Vegas Properties Trust

/Oct. £9, 1962 filed 500,000 shares of beneficial interest.
Price—$10. Business—A real estate / investment trtist.
Proceeds—For

investment.

Office—4933

Las

•

Interstate Equity
March 30,1962 filed 1,605,100 shares of beneficial interest

Vegas.
Underwriter—Securities
(same; address )/;. :
'
V
,

Paradise

Co.

Rd.,

Nevada
-

Price—(max. $10). Business—A real estate investment >/Lewis/ (Tillie)Foods, Inc.
company. Proceeds—For investment. Office—450 Seventh
April 9, 1962 filed $2,250,000 of 5Vz% convertible sub¬
Ave- N. Y. Underwriter—Van Alstyne, Noel &
ordinated debentures due 1982. Price—At par. Business
Co., N. Y'
Offering—Indefinite.
—Processing, canning, bottling and selling of fruits and
Investors Realty Trust s
May 31, 1962 filed 200,000 shares. Price — $10. Business
/—A real estate investment trust. Proceeds — For con¬
struction'and

investment.

Office

—

3315

Connecticut
>

Jaap Penraat Associates, Inc.
Jan. 30, 1962 filed 100,000 common. Price—$3. Business
—Industrial designing, the design of teaching machines
and the production of teaching programs. Proceeds—
For expansion, new facilities and working capital. Office
—315 Central Park W., N. Y. Underwriter—R. F. Dowd
& Co., Inc., N. Y.
Jamoco Air

Conditioning Corp.
28, 1962 ("Reg. A") 40,000 common. Price — $3.
Business—Design, installation and maintenance of heat¬
ing, plumbing and air conditioning systems. Proceeds—
For inventory, equipment and other corporate
purposes.
Office
954 Jamaica Ave., Brooklyn. N
Y
Underwriter—Martin-Warren Co., Ltd., New York Offering—
Feb.

vegetables. Proceeds—For debt repayment and working
capital. Office—Fresno Ave. & Charter Way, Stockton,
/ Calif.

Underwriter

—

Van Alstyne, Noel & Co.,/ New;
■ t/v?//* * >■» <</

"YorJpOffering—Indefinite. '/v. /<
Lewiston Gorhani

Raceways, Inc.
Price—$1.

Oct. 26, 1962 filed 450,000 common.

Business

—Company conducts commercial parimutuel harness
racing meets. Proceeds—For debt repayment, purchase
of land, and raceway improvements.: /Office—33 Court
St., / Auburn, v Maine. Underwriter—None, / Note—This
company

formerly

was

named Central Maine Raceways,

Inc.

:; Livestock Financial Corp.
Feb. 23, 1962

filed 130,000

—An insurance
sure
new

holding

common.

company

Price—$10. Business

whose subsidiaries in¬

the lives of all types of animals. Proceeds—To form
subsidiaries. Office—26 Piatt St., N. Y. Underwriter

—

Indefinite.

Japan Development Bank
Jan.

;

(2/6)

14, 1963 filed $17,500,000 of 6% guaranteed exter¬
1, 1978. Price—By amendment.
was incorporated in 1951 as a
Japa¬

nal loan bonds due Feb.

nese

common.

Offering—Indefinitely postponed.

Kwik-Kold, Inc.
/////•■March 29, 1962 ("Reg. AM) 100,000 common of which
.85,000 will be sold for company and 35,000 for stock¬

Co., Inc.
/
75,000 common. Price—$2.
installation of terrazzo, and

Business—The bank

///./;-:

Nov.

New York.

equipment

Ave., N, W., Washington, D/ C. Underwriter—None.

Associates, Inc.

Nov.

27, 1962

electronic

the installation of marble and tile.

Hek Manufacturing Co., Inc.
Aug. 7, 1962 ("Reg. A") 75,000 common, of which 69,000
shares are to be offered for the account of
the com¬
pany and 6,000 shares for the underwriter.
Price—$2.
Business—Manufacture of dental equipment. Proceeds—

Feb.

and

for government
agencies and the military. Proceeds—For equipment,
debt repayment and working capital.
Office—Engineer's
Hill, Plainview, L. I., N. Y. Underwriter—Leib, Skloot &
Co., Inc., Clifton, N. J. Offering—Indefinite.

Inc., New York. Offering—Indefinite.

1776 E. Sunrise

Kreedman Realty & Construction Corp.
April 19, 1962 filed $5,000,000 of conv. subord. deben¬
tures due 1982 and 200,000 common shares to be offered
in units consisting of $25 of debentures and one common
share.
Price—By amendment (max. $27).
Business—■
Construction and operation of office buildings. Proceeds
—For debt repayment.
Office—9350 Wilshire Blvd.,
Beverly Hills," Calif. Underwriter—Lee Higginson Corp.,

development and manufacture of mechanical, electro-

(max. $5). Business—Operation of discount stores.
Proceeds—For inventory, expansion, debt repayment and
working capital. Office—6400 MacCorkle Ave., S. W.,
St.
Albans. W. Va.
Underwriter—Willard Securities,

—None.

Proceeds—For general corporate pur¬
Office—171 E. 77th St., New York. Underwriter—

mecnanical

Proceeds—For accounts receiv¬

able, inventories, plant expansion and working capital.
Office—2301 N. Main St., Paris, Texas. UnderwritersJohn A. Dawson & Co., and Leason & Co., Inc., Chicago.

shaie, to be offered in units, each consisting of one share
one warrant. Price—$4 per unit.
Business—Design,

ment

debt

bution of sesame seed.

and

Heck's Discount Centers, Inc.

June 7, 1962 filed

Hillsboro

Mai ch 30,1962 filed 110,000 class A common and 9-month
warrants to purchase 110,000 class A shares at $4 per

on basis of one preferred share for each
10. com¬
held. Price—$12, Business—Real estate. Proceeds
—For general corporate purposes and debt
repayment.
Office—40 Beaver St., Albany, N. Y. Underwriter—None.

vestment.

conv. subord. deben¬
tures, due 1972, and 150,000 common to be offered" in
units consisting of a $300 debenture and 200 shares.
Price—$900 per unit. Business—Processing and distri¬

International Systems Research Corp.

mon

Kraft (John) Sesame Corp.
May 24, 1962 filed $225,000 of 6%

communication.
poses.

holders

of hearing and equipment
applicable. to certain specialized and affiliated areas of

28, 1962 filed 23,300 shares of 5% convertible
preference stock to be offered for subscription by stock¬

management

use

ment of devices for the hard

March

nia

electronic equipment for

None.

Heartland Development Corp.

•

Business—Company is engaged in operating gas and oil
properties, supervising drilling on its leases and man¬
aging exploration programs for investors. Proceeds—For
general corporate purposes. Office—2200 First National
Bank Bldg, Denver, Colo. Underwriter—None.

Corp.
Dec; 10, 1962 filed 100,000 common/Price—$3. Business
—Company plans to engage in the research and develop¬

Alstyne, Noel & Co., N. Y. Offering—

stockholders at the rate of $100 of debentures
Price—At par.

for each 30 shares held of record Nov; 15.

Intelectron

—

derwriter—Van
Indefinite.

common

products and working capital.
Office—3181 N.
Elston Ave., Chicago. Underwriter — R. A. Holman &
Co., Inc., N. Y.

1962 filed 300,000 class A common. Price—-By
Business
Publishes illustrated encyclo¬
pedic works for children and operates an advertising
agency "for sale of TV and radio spot time. Proceeds—
For working capital. Office—170 Varick
St., N. Y. Un¬

bentures, due >1977, to be offered by subscription by
•

new

Jan. 29,

a new

Underwriters—The Robinson

King-Stevenson Gas &• Oil Co.
Nov. 26, 1962 filed $1,526,200 of 6% % Conv. subord. de¬

marine field, principally in pleasure boating. Pro¬
ceeds—For
debt
repayment, advertising, inventories,

Harwyii Publishing Corp.
amendment.

plant/Office—-1725 S. Gault Ave., Ft. Payne,
Humphrey Co., Inc.,
Atlanta, and J. C,Bradford & Co., Nashville. Offering-r
Indefinitely postponed.
Ala.

the

landale, Fla. Underwriter—To be named.

•-

1962 filed 140,000' shares of capital stock' of
which 100,000 will be offered by company and 40,000
by stockholders. Price—By amendment (max. $17.50),

1962 filed 32,000 class A common. Price—By
amendment (max. $10). Business — Company develops,

processing and sale of rock and sand. Proceeds—For a
new plant and
other corporate purposes. Address—Hal-

Offering—Indefinite.

Kingsberry Homes Corp.

Instr-O-Matics, Inc.

sells

Co.

facture, design, and distribution of plastic toys. Proceeds
—For general corporate purposes. Office—912 Sycamore

Sept. 28,

and

Products

St., Cincinnati. Ohio. Underwriter—Kuhn, Loeb & Co.,

Rd., Houston. Underwriter—None.

manufactures

debt

ers/Price—By amendment (max.*$24); Business—Manu¬

30, 1962 filed $250,000 of 8% subordinated deben¬
tures due 1977, 200,000 common and 6-year warrants to
purchase 25,000 common at $1 per share to be offered in
units consisting of a $10 debenture, 8 common shares and
one warrant. Price—$18 per unit. Business—Extraction,

Proceeds—For

March 30, 1962 filed 542,000 common, of which 205,000
are to be offered by company and
317,000 by stockhold¬

Busi¬

Offering—Indefinite.
Hallandale

investment.

This registration will be withdrawn.

St., Chicago. Underwriter—A. C. Allyn & Co., Chicago.
Note—Th\s registration/will be withdrawn.

March

estate

repayment and working capital. Office—30 E. 42nd St.,
N.Y, Underwriter—Hay den, Stone & Co./N. Y. Note—

April 9,

Bros./ Inc.
April 25, 1962 filed 150,000 common, of which 50,000 are
to be offered by company and 100,000 by stockholders.
Price—By amendment (max. $7). Business—Wholesale
and retail distribution of toys, hobby lines and sporting
equipment. Proceeds—For debt repayment, inventory
and working capital. Office—35 Engel St., Hicksville,
N. 'Y. Underwriter—J. R. Williston & Beane, New York.

Greenman

preferred
to be

units consisting of one preferred and one
Price—By amendment (max. $101 per unit).

warrant.

ness—A small business investment company. Proceeds—
For general corporate purposes. Office—208 S. La Salle

cum*

warrants

offered

share-for-share basis.

Kenner

Dec.

Underwriter—Morris Cohon & Co.,

Calif.

25, 1962 filed 1,130,000 common to be offered for
on

...

March 29, 1962 filed 50,000 shares 6%
and four-year common stock purchase

toys and reU.*ed products. Proceeds — For debt repay¬
ment and general corporate purposes. Office — 184-10
Jamaica Ave., Hollis, Long Island, N. Y. UnderwriterWhite, Weld & Co., Inc., N. Y. Offering — Indefinitely
postponed.

in the Los Angeles area. Proceeds—For
stockholders.
Office—17602 Bellflower Blvd.,

Bellflower,

Kavanau Corp.

May 1, 1962 filed, 490,000 common, of which 250,000 Will
be offered by company and 240,000 by stockholders. Pripe
—By amendment (max/$20). Business—Manufactd/6 of

supermarkets

New York.

;

Ideal Toy Corp.

Markets/Inc.

$14).

promotion, debt repayment, and general corporate purposes. Office—733 Third Ave., New York. Un¬
derwriter—Pacific Coast Securities- Co., San Francisco*

Business—Sale of ordinary life, individual
disability, and group credit life and disability
insurance. Proceeds—For expansion, and investment. Of¬
fice—250 Liberty St., S. E. Salem, Ore. Underwriter—
Oregon Underwriters, Inc., Salem.

June 28 1962 filed 219,150 class A common.
amendment

Irwindale, Calif. Underwriter—

Offering—Indefinite.

subscription by stockholders

St., Dallas. Underwriters—Goldman, Sachs &

Greater McCoy's

snare;.

Price—$4.

holding company; for four life insurance companies
a bank. Proceeds^For debt, repayment. Office^—311

Brothers, New York,

common

health and

31, 1962 filed 2,500,000 common, of which 1,650,000
be offered by the company and 850,000 by a
stockholder. Price—By amendment (max. $19). Business

and Lehman

Oct.

Co.,

shares,

ICOA Life Insurance Co.

Dec.

So. Akard

common

has acquired in Southern Calif. Proceeds
and other corporate purposes.

debt

Office—116 John St., New York. Underwriters
—Emanuel, Deetjen & Co., and Zuckerman Smith &
Co., New York.
• Greatamerica Corp.
(2/4-8)

and

200,000
(max. $6 per

sales and

By amendment

repayment
Office—15855 Edna PL,

purposes.

—A

and

which company

April 13, 1962 filed 381,600 common. Price—$5. Business
—Company plans to write certain types of fire and
casualty insurance. Proceeds — For general corporate

are

1977

Thursday, January 24, 1963

distribution of motion picture films for television. Pro¬
ceeds — For financing of production costs of
films, for

—

—For

(2/4-8)

due

; Jayark Films Corp. (1/29)
Aug. 24, 1961 filed 85,000 common.; Price—By amend-■ ■
ment. (Approx. $5). Business—Company is engaged in

30, 1962 filed $1,300,000 of convertible subordi¬
debentures

rrice

Investment Trust./

Insurance Co.

Eastern

Great

& Sons

Business—Construction of homes and apartments on land

1961 filed 300,000 shares of beneficial interest.
Price—$10. Business—Real estate. Proceeds—For invest¬
ment Office—530 St. Paul Place, Baltimore. Underwriter
—To be named. Note—This firm formerly was known as
Aug. 3,

Continental Real Estate

(S. V.)

March

Government

term

funds

financial

institution

to supply longthe promotion of
economic
reconstruction
and
industrial
development.
Proceeds
To make loans to
leading private electric
power companies in Japan.
Office—Tokyo, Japan. Un¬

Japanese industry for

-—

derwriters—First Boston Corp.;
Dillon, Read & Co. Inc.;

Smith, Barney & Co. Inc.-*

—Shearson, Hammill & Co., N. Y. Offering—Indefinite,
Logos Options, Ltd.
April 11, 1962 filed 250,000 capital shares. Price — By
amendment (max. $10). Business—A diversified closedend investment company. Proceeds—For investment. Of¬
fice—26 Broadway, N Y. Underwriter—Filor. Bullard &
Smyth, N. Y. Note—This company formerly was named
Logos Financial, Ltd. Offering—Indefinite.

Loyalty Financing Corp.
19, 1962 ("Reg. A") 24,000 shares of 6%% cumu¬
lative convertible preferred and 60,000 common to be
offered in units consisting of 20 preferred and 50 com¬
mon shares* Price—$250 per unit.* Business—A business
Dec.

Volume 197

Number 6232

The Commercial and Financial Chronicle

finance company. Proceeds—For working capital. Office
—5 W. Main St.,
Freehold, N. J. Underwriter—Friedman
& Co.,

Lunar Films, Inc.
Aug. 31, 1961 filed 125,000

common.

ness—The production of television films.

Madison

Note—This

Price—$5.75.

Busi¬

Office

Office—

Ave., N. Y. Underwriter—To be
formerly was named Lunar

firm

Enter¬

Mac-Allan Co.,

tion

Oct.

Inc.

Nippon Electric Co. Ltd. (1/28-31)
7, 1962 filed 400,000 American Depositary Shares,
representing 10,000,000 common. Price—By amendment
(max. $22.50). Business—Manufacture of telecommunica¬
tions and electronic equipment. Proceeds—For expan¬
sion. Address—Tokyo, Japan. Underwriters—First Bos¬
ton Corp., and Daiwa Securities Qo., Ltd., New York.
Dec.

common.
Price—$3.
cosmetics.
Proceeds — For

Office—837 W. North Ave., Pittsburgh. Un¬
derwriter—A. J. Davis Co., Pittsburgh. Offering—Imminent.

of costume

Monarch

May

Life

Insurance Co.

27, 1963? filed 219,000 capital shares. Price -r- $6.
Business
Company plans to sell life, accident and
—

group insurance and annuities in New York
State. Proceeds—For
organizational expenses, and in¬
;"'v""" ''

—•145 Ave; of the
named.

Americas, N. Y. Underwriter—To
Offering—Indefinitely postponed.

municipalities and territories of the U. S.
Investment

—•130

Fulton

Federal

Bldg.,

Atlanta.

National
Dec.

To be

ness—Writing of
casualty
claims, financing of insurance premiums, and the mak¬
ing of investments. Proceeds—For expansion, loan re¬

ated

N. Y. Underwriter—To be named.

St.,

•

Video

National

Fund, Inc.

are

Corn.

holders.
health

—

City* Calif. Underwriter

Office

-v*'

grams

visual

Nov.

research, and, working capital. Address—P. O.
Box 27, Opeli^a, Ala. Underwriter—First Alabama Se¬
curities, Inc., Montgomery. Offering:—Indefinite.

ment^

Outlet

Mining Co., Inc.
28, 1962 filed 900,000 common. Price—$1. Business
—Mining. Proceeds—For equipment and working capi¬
tal. Address—Creede, Colo. Underwriter—None.
Feb.

company

Price—$17.50.

Pak-Well

named.

28,

Garden City, L, I.t N, Y.
liston & Beane, N. Y. Offering—Indefinite.

Pan American

Proceeds—For

Price—At par.

National Uni-Pac, Inc.
July 31, 1962 filed 85,000 common.
ment

Offering—Indefinite.
Midwestern

scription by stockholders

coin

common
on

the

to be offered for sub¬
basis

one

for

$4).

PanAm

Realty & Development Corp.
1962 filed 400,000 class A stock. Price—$10.
Business—A real estate holding and development com¬
pany. Proceeds—For general corporate purposes. Office
—70 N. Main St., Freeport, L. I., N. Y. Underwriter—

Business—Company

operated

12,

To be named.

repayment,

Natural Gas & Oil

Producing Co. (2/15)
Sept. 7, 1962 filed 180,000 class A common, r Price—$5.

each three held of record Dec.
31, 1962. Price—$19.50.
Business—A multiple line insurance carrier. Proceeds—
Business—Production of natural gas and oil.
Proceeds
For additional
capital and surplus. Office—6901-Wooster 4—For drilling expenses, working capital and other cor¬
Pike, Cincinnati. Underwriters—W. D. Gradison & Co.,
porate purposes. Office—Tekoil Bldg., Oklahoma City.
Cincinnati, and Greene & Ladd* Dayton.
Underwriter—Peter Morgan & Co., N. Y.
: #

March

Price—By amend¬

plans to sell or
vending machines.
Proceeds—For
equipment and working capital. Office
—15 Peachtree St:, Atlanta. Underwriter—None. Note—
This registration will be withdrawn.
debt

Indemnity Co.

}Dec. 26, 1962 filed 25,495

(max.

lease

Argentina.

/repayment, equipment, and other
Office—39 Broadway, N* Y.. Under*

debt

corporate purposes.
writer—To be named.

prod¬

supermarkets
and
other; retail
stores
in
the New York Metropolitan area. Proceeds—For
general
corporate purposes. Office—345 Underhill Blvd., Syosset,
N
Y.
Underwriter—Brand, Grumet & Siegel, Inc., N. Y

Price—$5. Business

—-Company plans to mine for beryl ore in

Business—Production of
Met Food Corp.
',
March 30, 1962 filed $1,000,000 of convertible subordi¬ / motion pictures. Proceeds—For production and distri¬
bution
expenses
and
working capital.
Office—1270
nated debentures due Nov. 1, 1977. Price — By amend¬
Ave. of the Americas, N. Y. Underwriter—None.
ment. Business—Distribution of food and related
ucts y to

Price—By

common.

Beryllium Corp.

Feb. 28, 1962 filed 100,000 common.

National Telepix,

tures due 1972.

Inc.

(max. $13). Business—Manufacture of en¬
velopes, packaging materials of various kinds, wrapping
paper, stationery* and school supplies.
Proceeds—For
•selling stockholders. Office—198 W. Alameda, Denver,
Underwriter—Francis I. du Pont & Co., N. Y. Offering
•—Indefinitely postponed.

1962

Inc.
July 30,1962 filed $150,000 of GV2% conv. subord. deben¬

Industries,

Paper

30,*1962 filed 150,000 class A

amendment

Underwriter—None.

Office—750 Stewart
Underwriter—J. R. Wil-

(2/5)

1962 filed 293,000 common, of which 80,000 are
to be offered by company, and 213,000 by stockhold¬
ers. Price—By amendment
(max. $20). Business—Com¬
pany operates a scheduled airline in California, provid¬
ing daily service between San Diego, Los Angeles, and
San Francisco. Proceeds—For prepayment of loans. Of¬
fice—3100 Goddard Way, San Diego, Calif. Underwriter
—E. F. Hutton & Co., Inc., Los Angeles..

—

purposes.

Pacific Southwest Airlines.

•

Dec. 26,

filed 590,075 common to. be offered for
subscription by common stockholders of record Oct. 15,
on a share-for-share basis. Price—By amendment
(max.
$2). Business—Writing of participating and non-partieipating ordinary life insurance; Proceeds — To expand
operations. Office—6225 University Ave., Madison, Wis.

Business—Sale of
phonograph records to, and the providing of merchan¬
dising services to retail record department. Proceeds—

therefor; sell at retail nationally known audio
equipment; and manufacture men's and boy's dress
Proceeds — For additional inventory, equip¬

trousers.

National Security Life Insurance Co., Inc.

•

Enterprises, Inc.

Herbert)

March

Price—By amendment.* (iqax. $5.50).

corporate

offered

(J.

1962 filed 200,000 common. Price—$5.25. Busi¬
ness—The company and its subsidiaries manufacture and
distribute cartridge type tape player recorders and pro¬

May

which 80,000
and 20,000 by stock¬
Business—A life, accident and
insurance company. Proceeds—For investment
130
Alvarado, N. E. Albuquerque, N. M
be

repayment, inventories,

Orr

Underwriter—To

Merco Enterprises, Inc.
Nov, 5, 1962 filed; 104,000 common, of which 33,000 are
to be offered by
company :ahd 71,000 by stockholders.

general

records and albums. Proceeds—For
new products, and work¬
ing capital. Office—614 West 51st St., New York. Un¬
derwriter—Mid-Town Securities Corp., New York.

Financial Equity

Corp., Los Angeles. "

For

tion of phonograph

National Security Life Insurance Co.
March 23, 1962 filed 100,000 common, of

Office—Chicago, Ill^y Sponsor—John *•
St., Chicago. \ —

investment.

loan

Mortgage Corp., Inc., (2/1)

Kansas.

Medical As¬

interest-bearing obli¬

• Olympia Record Industries, Inc.
(1/28-31)
May 29, 1962 filed 53,000 class A common. Price — $5.
Business—Company is engaged in wholesale distribu¬

28, 1962 refiled $8,000,000 face amount certificates
(series 20) and 300,000 common shares. Price—For cer¬
tificates, $762; for stock, $1.15. Business^-A mortgage
loan company. Proceeds-—For general corporate pur¬
poses. Office—113 S. Hydraulic, Wichita, Kan; Under¬
writer—National Mortgage Agency, Inc., (same address)
Note—This offering will be made only in the State of

Nov. 13, 1961 filed 250,000 common. Price — $1. Busi¬
ness
Manufacture of medical electronic equipment.
Proceeds
For
general corporate purposes.
Office
^Studio

For

Dec.

plans to
become open - end.
Proceeds — For investment in the
medical industry and capital growth situations. Office

Medical

Estates

filed

Nuveen & Co., 135 So, La Salle

1962 filed 4,750,000 common. Price—$1. Busi¬
ness—Company plans to engage in cemetery develop¬
to establish and operate a life and disability
insurance concern. Proceeds—For general corporate pur¬
poses. Office—13 S. Broadway, Red Lodge, Mont.
Un¬
derwriter—Security Brokerage Co., Billings, Mont.

Oct. 23, 1961 filed 25,000 common.
Price—$10. Business
—-A closed-end
investment company which

—

Y. Note—

ment and

Office—39 Broadway. N. Y.
Underwriter—Bear, Stearns
& Co., New York. Offering—Indefinite.

Lafayette St., Denver. Underwriter
sociates, Inc., Denver.

Portage.

Oct. 11,

Offering—Indefinitely

—677

—

1961

gations of states, counties, and municipalities of the U. S.,
and political subdivisions thereof which are believed
to be exempted from Federal Income taxes. Proceeds-r* >

Offering—Expected in February.

National Memorial

McGrath (John W.) Corp.
"June 28, 1962 filed 253,875 common.
Price—By amend¬
ment
(max. $15).
Business—Contract stevedoring and
related operations.
Proceeds—For selling stockholders.

Industries

Address

17,

Business—The Fund will invest in

—

Inc., N. Y.

postponed.

Medical

Fund, Series 4
$15,000,000 of units representing
fractional interests in the Fund. Price—By amendment.
Nuveen Tax-Exempt Bond

Manufacturing Co., Inc.
Price—$8.75. Busi¬
Manufacture * of galvanized chain link fence,
welded concrete reinforcing fabric, gates and related
products. Proceeds—For construction of a plant in Ire¬
land, and working capital. Office—4301 46th St., Bladensburg, Md. Underwriter—Netherlands Securities Co.,
ness

(max. $15). Business—Research and

contracts using radioactive

Oct.

Nov. 29, 1962 filed 100,000 common.

^Marshall Press, Inc.
May 29, 1962 filed 60,000 common. Price—$3.75. Busi¬
ness—Graphic design and printing. Proceeds—For pub¬
lishing a sales catalogue, developing a national sales

Greenwich

capital.

Corp.
Price—By amend¬

withdrawn.

working

common.

expansion and working capital. Address—P. O.
Underwriter—Johnston.
&
Co., Washington, D, C. Note—This registration will be

common. Price—$5. Business
cleaning and pressing plant and affili¬
Proceeds—For debt repayment, store ex-

and

Engineering

ment,

100,000

Box 10901, Pittsburgh.

National Fence

registration will be withdrawn.

Office—812

Co.

—

Investing Corp.,
registration will be withdrawn.

This

packaging
and
proprietary drug products. Proceeds—
For equipment, new products, debt
repayment and work¬
ing capital.
Office—156 Tillary St., Brooklyn. N
Y
Underwriter—Dana Securities Co., Inc., N. Y. Note—This

capital.

Price

Underwriter—Cortlandt

Business—Manufacture,

working

Insurance

common.

29, 1962 filed

development
tracers; precision radio¬
activity measurement; production of radioactive isotopes
and the furnishing of consulting and radiation measure¬
ment services.
Proceeds—For equipment, debt repay¬

Equipment & Plastics Corp.

stores.

oansion

v.'e,

various

and

named.,^

•-Operation of

Underwriter—Troster* Singer

staff

Life

ment
on

Sept.-28« 1961 tiled 105,000

Office—9929

Manhattan Drug Co.,
March 29, 1962 fiiea 72,UU0
common, of which 58,000 are
to be offered by
company and 14,000 by stockholders.
of

125,000

Science

Nuclear
March

McGee St., Kansas City, Mo. Underwriter—

National

Ga.e

Central

filed

dress—2632

Price—$3.50. Busi¬
insurance, adjustment of

By amendment
(max. $15). Business—Writing of health and accident in¬
surance. Proceeds—For general corporate purposes. Ad¬

Manchester Insurance Management & Investment
Corp.

'■

29,

Hills. Calif.

Price—$1. Business
representative of artists, musicians,
etc. and plans to engage in the music publishing busi¬
ness.
Proceeds—For debt repayment, public relations,
requisition of musical properties, and working capital.
Office—545 Fifth Ave., N. Y. Underwriter—Associated
Securities Co., 545 Fifth Ave., N. Y.

Nov. 28, 1962 filed
272,941 common.

Co., N.

Royalty Corp.

—Company acts

Underwriter—

purposes.

Proceeds—Foi

sponsor—tra

July 27, 1962 filed 150,000 common.

Puce—$3.50.

Corp., Ltd.
1962 filed 375,000 capital shares, of which
100,000 are to be offered by company and 275,000 by
stockholders.
Price—By amendment (max. $6). Busi¬
ness—Acquisition and development of oil and natural
gas properties.
Proceeds—For drilling expenses and
working capital. Office — 5455 Wilshire Blvd., Los An¬
geles.
Underwriter—Gregory-Massari,
Inc.,
Beverly

Music

■»;

payment and other corporate
Manchester Rd., St. Louis.

Nordon

March

Haupt & Co., Ill Broadway,
New York. Offering—Indefinite.

Management Investment Corp.
Aug. 29, 1962 filed 2,000 common .(with attached war¬
rants). Price—$500. Business—Company plans to fur¬
nish equity capital to firms in the
atomic, space and
missile fields, and provide
advisory and management
counseling services on a fee basis;
Proceeds—For re¬
payment of loans, and general corporate
purposes. Office
None.

pected in March.

—

Mail Assembly Service, Inc.
April 27, 1962 filed 1U0,000 common. Price—$2.25. Busi¬
ness—Assembling of packages for shipment to post of¬
fices. Proceeds—For general
corporate pu* poses. Office

Inc.

oils, flavor, essences, etc., to food and drug industries.
Proceeds — For debt repayment, working capital and
other corporate purposes; Office-*~601 W. 26th St.. N Y,
Underwriter—S. D. Fuller & Co., N. Y. Offering—Ex¬

Municipal Investment Trust Fund, Series B
April 28, 1961 filed $15,000,000 U5,000 units) of interests.
Frice
To be supplied by amendment. Business — Tnt
fund will invest in tax-exempt bonds of states, counties,

Liberty St., New York; Underwriter

Essential Oil & Chemical Co.*

Nor da

March 20, 1962 - filed '200,000 class A shares. Price—By
amendment (max. $15). Business—Manufacture, process¬
ing and distribution of natural and synthetic essential

common.

equipment and working capital. Office—5606
Stuebner Airline
Rd., Houston.
Underwriter—W. R.
Sauve Co., N. Y.

health,

—None.

Corp. '
A") 140,000

("Reg.

expenses,

Dec.

vestment. Office—1

Plastics

1962

Price—$2.
Business—Manufacture and sale of plastic letters, em¬
bossed sign faces, quantity signs and boat windshields.
Proceeds—For purchase of land and building, moving

withdrawn.',/
Madison

28,

by the company and 75,000 by a stock¬
Business—Exploration,
develop¬

Price—50c.

mining. Proceeds—General corporate purposes.
Office—90 Industry St., Toronto, Canada. Underwriter—
A. C. MacPherson & Co., Toronto.

equipment.

jewelry, ladies' handbags, and accesso¬
Proceeds!— For working capital. Office — 1650
Broadway, Kansas City, Mo. Underwriter—George K
Baum & Co., Kansas City. Note—This registration was

Ave

Manufacture

—

offered

ment and

First National Bank Bldg., Minneapolis.

Laboratories, Inc.
1962 ("Reg. A") 97,000

29,

Business

ries.

holder.

Modern

prises, Inc. Offerings-Postponed.
•

2615

—

Mines Ltd.

Oct. 13, 1961 filed 475,000 common, of which 400,000 are

Underwriter—None.

named.

Feb; 23, 1962 filea ii>u,260 of class A
common, of which
65,130 are to be offered by the company and 65,130
by stockholders. Price—$5. Business—Sale and distribu¬

New Campbell Island

26, 1962 filed 561,500 common to be offered for
subscription by stockholders on the basis of one share
for each two shares held. Price—By am ehdment
(max.
$7). Business — A closed-end management investment
company. Proceeds — For general corporate purposes.

Proceeds—For

filming and production and working capital.
543

Midwest Technical Development Corp.
Feb.

Inc., New York.

105

(393)

Parkway Laboratories, Inc.
6, 1961 filed 160,000 common. Price—$5.
of drugs and pharmaceuticals.

Dec.
.

—Manufacture

—For
poses.

acquisition,
Office — 2301

Underwriter—Arnold

This registration will
•

Business
Proceeds
research and other corporate pur¬
Pennsylvania Ave., Philadelphia.
Malkan & Co., Inc., N, Y. Note—
be withdrawn.
Continued

page

106

The Commercial and Financial Chronicle

(334)

ICG

Continued from page

105

Technico, Inc.
Aug. 10, 1961 filed 130,000 class A common shares. Price
—$5. Business—The manufacture of building materials.
Proceeds—For payment of income taxes and loans and
for working capital. Office—Woodbridge-Carteret Road!
Port Reading, N. J. Underwriter—Mortimer B. Burnside
& Co., Inc.,
•

PetroEane

Gas

Service, Inc.

liquified petroleum gas. Proceeds—To reimburse treas¬
ury for the acquisition of other companies, debt repaybent, and working capital. Office—1696 .E<r Hill St.) Sig-

Offering—Imminent.

Underwriter—None.

Inc.
Sept. 28, 1962 filed 100,000 common. Price—$5. Proceeds
—Tu drill for and operate oil wells.
Office—418 Mar¬
Petroleum,

Roddy Recreation Products Inc.
31, 1962 filed $1,000,000 of 6Y2 %

18, 1962. Price—$1,000.
repayment, construction of a swim¬

for each share held of record Feb.

Professional Men's Association, Inc.
Jan. 8, 1963 filed 40,000 common. Price—$5. Business
—Company specializes in financial consulting, arid serv¬
icing patients' accounts of member hospitals, physicians
and dentists. Proceeds—For debt repayment and work¬
ing capital. Address—100 W. Tenth St., Wilmington, Del.

Publishers Co., Inc.

1962,.fjled 25,Od6 r outs(andirig common shares
to be sold by stockholders. Price—By amendment (max.
$10). Business—Book publishing. Office—1106 Connecticut Ave., Washington, D. C. Underwriter—Roth & Co.,
Inc., Philadelphia. Note—This registration will be with¬
29,

drawn.

Management Co., Inc.
Aug. 22, 1962 filed 150,000 common (non-voting). Price
—By amendment (max. $14). Business—An investment
.

adviser and distributor of mutual funds. Proceeds—For

selling

stockholders.

Office—60

Congress

St.,

Boston.

Underwriter—To be named.

Quick-N-Clean Corp. of Minnesota, Inc. /
1, 1962 ("Reg. A") 205,000 common. Price—$1.15
Business—Company plans to open a chain of coin oper¬
ated dry cleaning stores. Proceeds—Advertising, expan¬
sion and working capital. Office—712 Fir St., Brainerd,
Oct.

Underwriter—Northwest Securities,

Lakes, Minn.

Inc., Detroit

R.E. D. M. Corp. (2/11-15)

and

Royal tone Photo Corp.
29, 1961 filed 300,000 common, of which

to be offered by the company
holders.
Price — By amendment.

•

—

->»'

'•

•.-•>

!/'

;

1962

capital

filed 800

Price—$2,500.

shares.

Sperti Products, Inc.

\ \

29, 1961 filed 230,000 common of which 200,000 are
by the company ana 30 000 by stockholders.
Price—By amendment. Business—Manufacture of drug

Nov.

to be offered

and

fopd-prodqets^electrical .and electronic devices and

precision machinery. Proceeds—Foi the purchase of .cer¬
tain.'. patents, repayment ^pf deht, and wprking capital.
Office^730 !Grafid St:.' ifofioken. V .1 TinderwrlterBlair ,& Co., New York.
withdrawn.
Stars

of New York,

Note —This registration was
Inc.

1962 filed $450,000 of 15-year 8% debentures
and 15,000 common shares. to be. offered in 300 units,
•each consisting of $1,500 of debentures and 50 shares.
ITice—$2,000 per unit. Business—Operation of discount
department stores. Proceeds—For debt repayment; and
working capital. Office—North Colony Rd., Wallingford,
Dee. 28,

100,000

and 200,000 by stock¬
Business

•

ing—Indefinite.;

are

Conn. Underwriter—None.

Develops

Sterling Copper Corp.
/
>
Aug." 2, i962 filed 850,000 common.: Price--$1. Business
Office—245 7th Ave.. N
Y
Underwriter
Federman / —Company plans to operate a non-ferrous rod and tube
mill. Proceeds—For plant and equipment, working capi¬
Stonehill & Co., N. Y. Note—This registration will be
tal and other corporate purposes. Office—300 Horn Rd.,
withdrawn.
/
Pinconning, Mich. Underwriter—None.
Ruby Silver Mines, Inc.
Stratford Financial Corp.
Jan. 2, 1962 ("Reg. A") 2,400,000 common. Price—12%
March 29, 1962 filed 315,000 class A shares of which
cents. Business—Exploration and development of mineral
218,000 are to be offered by the company and 97.000 by
deposits. Proceeds—For debt repayment and genera)
corporate purposes. Address—Box 1088, Wallace, Idaho v the stockholders. Price—$6. Business—Commercial fi¬
nance company.
Proceeds—For debt repayment. Office
Underwriter—Pennaluna & Co., Spokane, Wash./;
5
'•
\
' "
' ^
1 >5\'J.'Js
—$5 Madison Ave., N,; Y> Underwriter—Mortimer B.
Russell Mills, Inc.
Burnside & Co., Inc., N. Y.
Sept. 28, 1962 filed 312,500 common. Price—By amend¬
Stratton Fund) Inc.
ment
(max. $12).
Business—Manufacture of athletic
March 20, 1962 filed 500,000 common. Price—$20. Busi¬
clothing, knitted underwear, children's sleepwear and
ness—A new mutual fund which plans to offer investors
cotton cloth. Proceeds—For bond retirement and plant
the opportunity of exchanging their individual securi¬
/expansion. Address—Alexander City, Ala. Underwriter
ties for shares of the Fund without incurring Federal
—Hornblower & Weeks, N. Y.
Note — This company
income tax liability. Office—15 William St., New York.
formerly was called Russell Manufacturing Co. Offering
Dealer-Manager—J. R. Williston & Beane, N. Y. Note
—Indefinite.
—This company formerly was named Stratton Realty "&
Construction Fund, Inc.. Offering—Indefinite.
San Francisco Capital Corp.
prints

film.

Proceeds

and. white photographic
equipment and working capital.

and

color,

black

For

—

•

—

29, 1962 filed 30,000

common,

'•

—For

small

Francisco.

Co., New York.

Price—$12.50.

common.

investment

Montgomery

Underwriter—Cantor. Fitzgerald

Hills,

Busi¬
Proceeds

company.

St.,

Note—This registration

Calif.
r

.:;■•/

San

& Co.. Inc..

will

Seaboard Land Co.

(same address).
Selective
/ Feb.

28,

investment, and working capital. Office—
St., Los Angeles. Underwriter — Costello.
Co., Beverly Hills, Calif. Offering—Indef.

Financial

1962

Corp.

/
-

for

share and two-thirds share for
Life

each

class

C share of

held.

Remaining 94,822 and any unsub¬
scribed shares will be offered publicly. Price—To public,
$6; to stockholders, $5. Business—Company plans to engage in
the consumer finance, mortgage, general finance

and

businesses.

Proceeds

—

corporate purposes. Office—830 N. Central
nix.

Superior Commercial Corp. / Nov.; 15, 1962 filed .200,000 class A common, of' whieh
100,000 are to be offered by the company and 100,000 by
stockholders/
Price—$1.50.
Business—Company buys
and holds second mortgages. Proceeds—For general cor¬
porate purposes.
Office—9 Maiden Lane, New York.
Underwriter—S. C. Burns & Co., Inc., New York. OfferIng—Expected jn February. ,/ •
* \\
.
Teaching Systems, Inc.
June

•

1962 ("Reg. A") 50,000 common. Price—$2. Busi¬
and sale of educational audio-visual

ness—Production

teaching aids. > Proceeds—For equipment, promotion and
advertising and working capital.
Office—1650 Broad¬
way, N. Y.; Underwriter—Creative Ventures Corp., 733
Third Ave., N. Y.
^
^
'

filed

offered

Selective

Recreation Industries, Inc.
Nov. 23, 1962 ("Reg. A") 75,000 common. Price — $2.
Business—Sale of travel and entertainment. Proceeds—

500,000 common, of which 405,000
subscription by holders of the A,
B and C stock of Selective Life Insurance Co., an affili¬
ate, on the basis of 4 company shares for each class A or

are

corporate purposes.
Office—1631 10th St.,
Santa Monica, Calif.
Underwriter—White, Weld & Co.
Inc., New York. Offering—Indefinite.

July 25, 1962 filed 200,000 class A common. Price—By
amendment (max. $2.50). Business—Ownership and de¬
velopment of real estate. Proceeds—For working capital.
Office—912 Thayer Ave., Silver Spring, Md.
Under¬
writer— North
American
Seaboard
Securities
Corp.,

other

7th

wij

Office—400

withdrawn.

manufacture of electronic monitoring and warning sys¬
tems, and integrally lighted switches. Proceeds — For
product improvement and development, working capital,

capital

business

points,

Relay, Inc.
Oct. 1, 1962 filed 100,000 common, of which 75,000 will
be sold by company and 25,000
by a stockholder. Price
—By amendment (max. $10).
Business—Design and

;*<

•

investment. '

Beverly

Radar

Russotto

r.i

ness—A

mechanical pencils and desk sets.
Proceeds—For equipment and working capital. OfficeLittle Falls,.'Passaic
County, N. J.
Underwriter—
Schweickart

April 23, 1962 filed 60,000

of which 40,000 will

gaged in manufacturing, engineering and research undei
Defense Department contracts; also manufactures ball
pens,

be offered for the company and 40,000 for certain stock¬
holders. Price—By amendment (max. $6), Business—En¬

411

debenture

Putnam

For

$500

Nov,

-and

one

Indefinite.

Underwriter—None.

and

(2/4-8)

convertible sub¬

Rona Lee Corp.
^
Sept. 26, 1962 filed 100,000 common. Price—$5. Busi¬
ness—Design, manufacture, and distribution of girls'
blouses, sportswear, and coordinates.
Proceeds-^-For
debt repayment. Office—112 W. 34th St., N. Y. Under¬
writer—Winslow, Cohu & Stetson Inc., N. Y. Offering—

ming pool, and other improvements. Address—Landover,
Prince Georges County, Md. Underwriter—None.

point

'■

Business—Company plans to engage in writing life and
disability insurance in California. Proceeds—For capital
and surplus.. Office—510 S. Spring St., Los Angeles.
Underwriter—McDonnell & Co., Inc., New York. Offer¬

cord, tapes, etc. Proceeds—For debt repayment and
working capital. Office—1526 W. 166th St., Gardena,
Calif. Underwriter — Dempsey - Tegeler & Co., Inc., St.
Louis.

Prince; Georges Country Club, Inc.
15, 1962 filed* 500 common to be offered for sub¬
scription by stockholders on the basis of one new share

•

units

Sovereign Life Insurance of California /;

shares. Price—$650 per unit. Business—Manufacture and..
isale <of fishing equipment; ammunition reloading devices

Oct.

June

offered

''<

Nov., 28,

and

Phoenix. Underwriter—None,

ordinated debentures due 1978 and 50,000 common shares

Underwriter—To be named.

Minn.

1//Southwest FoPest Industries, Inci
Jan. 11, 1963 filed 638,237 common to be offered- for
subscription by. stockholders on the basis of three new
shares for each five held. Price—By amendment (max.
$7). Business—Company manufactures lumber and wood
products, and converts, ..processes and distributes papor
produBs- Prbceeds-7-For working capital* and debt' re¬
payment; Office — 444' First National Bank Building,

Co., Silver Spring, Md. Offering—Indefinite.' Note—
SEC has challenged the accuracy and adequacy
nL &is registration statement.

Off ice—13 Lancaster Rd., Union, N. 4

...

securities

Dec.

North River Drive,
& Co., Inc., 68

Fla. Underwriter—Irwin Karp
William St., N. Y,
J"
*9,
-•/' /v"".
Miami,

The

of towing boats.
conversion of a boat, and

operation

and

working capital. Office—3300 N. W.

repayment and general corporate purposes. Office—220
K St., N. W., Washington, D. C. Underwriter—HirscheJ

("Reg. A")

1961

29,

Proceeds—For debt repayment,

Prescott-Lancaster Corp.

&' Transportation Co., Inci*
100,000 common. Price—$3.

Southeastern Towing
Nov.

Business—Construction

Richmond Corp.

•

debt

Office—1933

Dec. 21, 1961 filed 142,858 common. Price—$7. Business
—A real estate investment company. Proceeds—For debt

Underwriter—None.

Cleveland. Offering-r-Indef-/

repayment, equipment and working capital.
Heck Ave., Neptune, N. J. UnderwriterMilton D. Blauner & Co., N. Y. Offering—Postponed.
For

;

New York. Offering—Indefinite.

March 30,1962 filed 150,000 common. Price—$5. Bu«ine«
—Real estate. Proceeds—For purchase of mortgages, and

Aug.

A common and. three-

("Reg.

Bldg., Cleveland, Ohio. Under¬

Co,,

Signalitelnc.
29, 1962 filed 126,000 common. Price—$4.50. Busi¬
ness—Manufacture, sale and development of glow lamps
for use as indicators and circuit components. Proceeds—

A") 60,000 common. Price-—$5.
broker-dealer, Proceeds -- For
working capital and other corporate purposes. Office—
237 W. 51st St., N. Y. Underwriter—Richard Gray Co.,
1962

—

Jan.

Richard Gray & Co., Inc.

21,

inite^/g;--J./;-/;:

Office—3615 Olive St., St. Louis, Under¬
writer—R. L. Warren Co., St. Louis. Offering—Expected
in February or March.

July 6, 1962 filed 1,000,000 shares of beneficial interest.
Price—By amendment (max. $5). Business—A real estate
Proceeds—For investment. Office—880

writer—McDonald

^construction.

Business

Francisco,

Properties

—1956 Union Commerce

—

June

organizational expenses and other

19, 1962 filed 215,000 shares of beneficial interest./
Price—$15. Business — A real estate investment trust.
Proceeds—For investment and working capital. Office

warrants to purchase: 1,250 class A shares v. to;• J>e
consisting of four shares and one war¬
rant.
Price
$32 per unit.
Business — Company will
erect and operate a luxury hotel nnd resort facilities,
and sell 80 acres of land for home sites*' Proceeds—For

investment trust.

year

Potomac Real Estate Investment Trust

$5.
in¬

Oct.

offered in units

oMay 28, 1962 filed 270,000 common. Price—By amend¬
ment. (max. $7). Business—Company is engaged in the
ownership and franchising of Playboy Clubs. Proceeds—
For .debt repayment and general corporate purposes. Of¬
fice—232 E. Ohio St., Chicago.
Underwriter—Golkin,
Divine & Fishman, Inc., Chicago. Offering—Indefinite.

Proceeds—For debt

Underwriter—None. '

/ Shaker

Resort Corp. of Missouri

;

Playboy Clubs International, Inc.

ket St., Shreveport, La.

Underwriter—None,

Nov/ 27, 1962 filed 125,000 class

neapolis.

f Powell

and

St., Renp, New

;

Pioneer "Telephone

.Calif.

Remitco, Inc.
1962 filed 952,000 common. Price—$10. Business
—Company is engaged in selling "puts" and "calls."
Proceeds—For working capital. Office—130 N, Virginia

Co. (1/29) •
Dec. 28, 1962 filed 75,000 common, of which 44,416 are
to he offered by company and 30,584 by stockholders.
Price—By amendment (max. $20). Proceeds—For debt
repayment, expansion and working capital. Office—40
S. Elm St., Waconia, Minn. Underwriters—Dean Witter
& Co., San Francisco, and M. H. Bishop & Co., Min¬
•

debt

Nov. 19,

Hill;; Calif./Underwrite*—Dean Witter, & £o.? Bos
Angeles.

Proceeds—For

surance.

18; 1962 filed 100,000 common. Price—By amend¬
ment < (max.; $30.) Business—Sale
and' distribution of
Dec.

fields.

electronic

and

corporate purposes. Office—225 Bush St., San

working capital. Office—455 W. Main
St., Wyckoff, N. J. Underwriter—Myron A. Lomasney &
Co., N. Y. Note—This registration will be withdrawn
and then refiled.
repayment

Offering—Temporarily postponed.

N. Y.

electric

cne

Thursday, January 24, 1963

Sept. 10, 1962 filed 250,000 capital shares. Price —
Business—Company plans to sell life and disability

Jan. Z9,

Pellegrino Aggregate

...

Sentinel Life Insurance Co.

Regulators, Inc. h
1962 filed 75,000 common, of which 50,000 are •:
to be offered by the company and 25,000 by Electronic
Specialty Co., parent. Price—$5. Business—Design and
manufacture of regulating and control devices used in

Underwriter—None.

For general
Ave., Phoe¬

Ten-Tex, Inc.

31, 1962 ("Reg. A") 3,000 units each consisting of
one 6Yz% 10-year debenture, 25 common shares and pur¬
chase warrants for 100 common shares to be offered for

Dec.

subscription by stockholders of Ten-Tex Corp., parent,
of record Feb. 1, 1963 on the basis of one unit for each
150 common shares held.
Price—$100.
Business—Sale
-

and lease of machinery for

production of tufted textile

products. Proceeds — For debt repayment and working
capital. Office—3814 Tennessee Ave., Chatsworth, Ga.
Underwriter—Irving J. Rice & Co., Inc., St. Paul.
/

Volume 197

Number 6232

The Commercial and Financial Chronicle

(395)

Tenna Corp.
Waterman Steamship Corp.
Sept. 28, 1962 filed 122,000 common. Price—By amend- f Aug. 29,1961 filed 1,743,000 common.
Price—By amend¬
(max. $11). Business—Manufacture of automobile
ment.
Business—The carrying of liner-type
cargoes.

if Diversified Resources, Inc.
16, 1963 ("Reg. A") 67,000

Jan.

common. Price — $3.
lightweight structural board
and sheet insulating material (wallboard). Proceeds—
For equipment, leasing of working space, advertising,
and working capital. Office—42 Broadway/ N. Y. Under¬
writer—A. J. Gabriel Co., Inc., New York.

ment

antennas and radios.

loans

and

Parkway,

Westheimer

Co.,

Cincinnati,

and Hartzmark

ital.

writer—Shields

Co..

common.

estate investment trust.

Proceeds—For investment.

Jan.

23, 1963 filed 156,414 common. Price—By amend¬
(max. $25). Business—Manufacture of furniture
and institutions. Proceds—For selling stock¬
holders. Address—Drexel, N. C. Underwriters—Lehman
Brothers, New York, R. S. Dickson & Co., Inc., Char¬
lotte, N.C, and Powell, Kistler& Co., Fayetteviile, N. C.

ment
for

Of¬

I nc„

Western Travel,

("Reg. A") 187,000 common*" Price
$l.z
Business—Operation bf motels, hotels, restaurants and;

common, of which 100,000 are
by company and 100,000 by stockholders.
Business—Operation of a chain of self-serv¬

offered

related businesses.
and

Proceeds—For completion of a motel

capital.
Office—290 N.
Underwriter—Western
*

Avei>; Jasper^ Ala; Underwriter—
Philips, Appel & - Walden, 115 Broadway; -N.Y. Offering
—Temporarily postponed.'
v
Resources, jnc;

working

Provo,- Utah.
ProvOj.Utah:

Office—2220 -Florida

1 ransarizona

[.ic Drexel Enterprises, Inc.

Denver, Colo. Underwriter—None.

•

ice'retail stores selling clothing, housewares, etc. Pro-"
ceeds—For expansion, equipment and working capital.

•

Offering—

Oct*. 29, 1962

May 1, 1962 filed 200,000
Pri'ce-^$5.

(mgr.).

fice— 1755 Gilpin St.,

/Trill Doil'jlf*' ■~ftI'rii*A®

to be

Co., Inc., N. Y.

Western Empire Real Estate Investments
Sept. 26, 1962 filed 600,000 shares of beneficial interest.
Price—$4. Business—Company plans to quality as a real

Plastics,'

Price—$3.50. Bust*
ness—Operation of a plant producing plastic film and
packaging products.
Proceeds—For working
capital.
Address—Elsa, Texas. Underwriter—Crow, Brourman &
Chatkin, Inc., N. Y.
■

Temporarily postponed.

--it".;A

■

Securities,
V

/■-./

July 30, .1962 Bled 80,000 common. Price—$12.50. Busi- {
ness—Acquisition of leases and pfoductioii of oil and gas.

if Emersoti Electric Manufacturing Co. (2/19)
! Jan. 17; 1963 filed 162,045 commonv'Price—By amend-

(max. $35). Business —• Manufacture of electric
motors/automatic controls, electronic devicesr and build¬
er products. Proceeds—For selling stockholders. Address
"*-8100 Florissant Ave.; St. Louis. Underwriter—Blyth

Inc.,

Jvf!Sf*'

writer—None.

Tyson's Foods, Inc.;;~ *
1962 filed 100,000 common. Price—By - amend¬
ment (max. $12) . Business—Company:; operates an inte¬
grated poultry business. Proceeds
For construction,
equipment and working capital. Office—317 East Emma
Ave., Springdale, Ark. Underwriter—Rauscher, Pierce &
Co/, Inc., Dallas."
'
'
'
DeC. 26,

Office—Thompson Bldg., Tulsa. Underwriter
Edwards, Inc., Oklahoma City,

industry. Proceeds—For debt repayment,
purchase of Strudh Co., in Sweden, and working capital.
.

if Home Entertainment Co. of America.
16, 1963 filed 230,000 common of Home Entertain¬
ment Cov, Inc., Los Angeles, a subsidiary, and 23,000
stock purchase warrants in parent, to be offered in units

Jan.

Laboratories, Inc.

April 2, 1962 filed 80,000 Common. Price

■

debt

By amend¬
chain of shoe

also sells radios, tape recorders,; dictating }hna
photocopying machines, and provides a film developing
and printing service.' Proceeds—For new stores and
camera "concessions.
Office—25 W. 43rd St., N. Y.
derwriter—Ingram, Lambert & Stephen, Inc., N. Y.

investment.

Office—20

Street, Kansas City, Mo
Underwriter—Waddell & Reed, Inc., Kansas City, Mo

Urethane of Texas; inc.

u n i t.
Business—Ma n ufactu re 'ot >. urethane
Proceeds—For
equipment,working
capital,

leasehold expenses and other corporate purposes. Office

—2200... Repu blic ,,.ty ational -Bank Bldg^: Dallas.i Under?writer
First Nebraska Securities Corp., Lincoln,. If eb*
r

Offering—Temporarily ,postponedv

Yenritfe Inc.

estate.

(2/25)

Workman

Price—95%

principal

EST)

subscription by stockholders of class
of $500 debentures for each 100

2117

held.

Proceeds—-For

debt

repayment,
in¬
ventory, research, and other corporate purposes. Office
—Packinghouse Rd„ Sarasota. Fla ; Underwriter—Hens-/
use,

berry & Co., St. Petersburg, Fla. Offering—February.

Mercantile Dallas Building^
Read &
/

Zero Mountain Inc. (2/4-8)
March 30, 1962 ("Reg. A") 100,000 common. Price—$3.
Business—Operation of underground cold storage facil¬

ities, Proceeds—Expansion^ debt repayment and working
Ad dress—Box 594, Favetteviile, Ark*
Und er •
writer
Don D. Anderson & Co., Inc., Oklahoma City.

ca pi tal.

—

Dallas;. Underwriter—Dillon,

Co., Inc., New York

-A* Texas Power & Light Co. (2/18)
Jan. 22, 1963 filed $10,000,000 of first mortgage bonds
1993.

Proceeds—For

construction, and other

corpo¬

Issues Filed With SEC

rate purposes.

Office — 1511 Bryan St.,- Dallas. Under¬
writers—-(Competitive). Probable bidders: Kuhn, Loeb
& Co.-Blyth & Co., Inc.-Kidder, Peabody & Co.-Merrill
Lynch, Pierce, Fenner & Smith The. (jointly); White,
V/eld & Co.; First Boston Corp.; Eastman Dillon, Union
Securities & Co.-Salomon Brothers & Hutzler

This Week

(jointly);

Lehman Brothers; Halsey, Stuart &

Co. Inc. Bids—Feb.
(11:30 a.m. EST) at Ebasco Services, Inc., 2 Rector
St., New York. Information Meeting—Feb. 14 (11 a.m.
EST) at same address.
18

Wallace & Tiernan Inc.

16, 1963 filed •256,000 common. Price—By amend¬
Manufacture of chemicals, equipment
and pharmaceuticals. Proceeds—For selling stockhold¬
ers. Office—25 Main
St., Belleville, N. J. Underwriters—
White, Weld & Co. and Cyrus J. Lawrence & Sons, N. Y.
Offering—Expected in mid-February.

■

if Tecumseh Investment Co., Inc.
'
Jan. 21, 1963 filed 48,500 common. Price—$100. Business
—A holding company which plans to organize a life in¬
surance
company. Proceeds—For investment
in U. S.
Government Bonds and in new subsidiary. Office—801
Lafayette Life Bldg., Lafayette, Ind. Underwriter—Amosand Inc., (same address).

due
i£ Sx

Office—

Jan.

-Ar Ashland- Oil
Jan.

Refining Co.

23, 1963 filed $25,000,000 sinking fund debentures
1988; $35,000,000 convertible subordinated deben¬

due
tures

due 1993; and 260,000 common. Business — A re¬
finer, transporter and marketer of petroleum products.
Proceeds—For proposed acquisition of United Carbon
Co. Address—1409 Winchester Ave., Ashland, Ky. Un¬
Wallace (William) Co.
/V
i derwriter—Eastman
Dillon, Union Securities & Co., and
Jan. 9, 1983 filed $2,500,000 of subordinate debentures/
E. F. Hutton & Co.,* Inc., New York", and; A. G. Becker
due, 1981 (with attached warrants) to be offered in units
& Co.; Inc, Chicago.
consisting of one $1,000 debenture and one warrant to'

^Vend-Mart Inc.
Jan. 22, 1963 filed 60,000 common. Price—$4. Business
—Operation of coin-operated automatic ice cube vending
machines and clothes washing and drying machines.
Proceeds
For debt repayment, equipment, expansion
and working capital. Office—565 Fifth Ave., New York.
Underwriter—M. G* Davis & Co., Inc., New/York;
—

purchase 55 common shares. Price — By amendment.*'
Business—Manufacture of double wall gas vent systems,
prefabricated chimneys, roof drainage equipment, stove
pipe^nd fittings. Proceeds — For loan repayment and

working capital. Address — 230 Park Ave., New York.
Underwriters—Reynolds & Co., Inc., and P. W. Brooks
& Co., Inc., New York.

(2/6)

industrial

amount.

address.

17, 1963 filed 200,000 preferred (par $25). PriceBy amendment. Business — Distribution and sale of
natural gas in and around St. Louis. Proceeds—To repay
bank loans. Office—1017 Olive Street, St. Louis. Under¬
writers—Lehman Brothers; Merrill Lynch, Pierce; Fen¬
ner & Smith Inc., New York, and Reinholdt & Gardner,
St.; LoUis.
v If ;v
••

Wayne, Chicago. Underwriter—None,

ment. Business

same

Electronic' Products,

Proceeds—For

repayment and other corporate purposes.

(jointly);

Jan.

Proceeds—For

on-location cleaning of
carpets, furniture,-floors, etc., and the manufacture and
debt

Dillon, Union

if Laclede Gas Co.

of franchises for

sale of cleaning equipment and materials.

Gardner,

Corp.; First Boston Corp.;
Securities & Co. Bids—Feb. 6,

★ Southwestern Public Service Co. (2/6)'
Inc./"
Oct. 25/ 1962 filed 140,000 common, Price—<-$3. Business ". Jan. 16, 1963 filed
$14,000;p00 of first mortgage bonds
—Manufacture, development and assembling of precise
due- Jan. lf 1993. Proceeds — For debt repayment, conelectronic replacement components for radio, TV and
struction. and other corporate purposes. Address—720.

Wade, Wenger ServiceMaster Co.
23, 1962 filed $250,000 of 7 % conv. subord, de-;
1973.

Inc.-Reinholdt &

Smith

Webster Securities

1963 (10:30 a.m. EST) at Bankers Trust Co., 16 Wall St.,
New York. Information Meeting*—Jan. 31, 1963 <11 a.m.

Price—$500 per unit. Businessdebt repayment and realty
acquisitions. Office—10 East 40th St., N. Y. Underwriter
—S. E. Securities, Inc.; 10 East 40th Street, New York.
Note—This registration will be withdrawn. ;
:

Nov.

due

Eastman

...

1962 filed 150,000 common. Price—$3. Business
—Operation of: coin-operated children's rides. Proceeds
—For debt repayment, equipment and
working capital.
Office—241 Church St., N. Y. Underwriter—Leonard B
Stern & Co., N. Y.

Business—Sale

(2/6)

Nov. 5,

bentures

Stone

basis

Va'u-Rack, Inc.
May 4, 1962 filed 200,000 common, of which 100,000 are
to be offered by company and 100,000 by stockholders.
Price — $5., Business — Wholesale distribution and retail
merchandising of health and beauty aids, housewares,
kitcheriwares, wearing apparel and other goods.
Pro¬
ceeds—For debt repayment. Office—2925 S, San Pedro
St„ Los Angeles. Underwriter—To be named.
•

for

the

Real

$5.05:"-vper'-.-

■

offered

stock

Office—460

1963 filed $10,000,000 of sinking.^^14 .deben¬
due 1983. Business — Distribution and sale of

Fenner

debt repayment and other corporate pur¬
Office—1005 First Ave., Asbury Park, N. J. Under-

class

Feb. 14,1962 filed 250,000 class A and 250,000 common to
be .offered in units of one share -of each class. Price—
foams,,

investment.

writers—(Competitive). Probable bidders: Halsey, Stuart
& Co. Inc.; Lehman Brothers-Merrill Lynch, Pierce,

Wolf Corp.
Jan. 26, 1962 filed $4,500,000 of 6.5% convertible sub¬
ordinated debentures due 1977 (with attached warrants)

9th

Proceeds—For

natural gas in and around, St. .Eouis*' Proceeds—To • reppy
bank loans. Office—1017 Olive Btxeet, Etl iLouis. Un<ler-?

Price-—$4. Business

writer—To be named.

United Variable Annuities
Fund, Inc. v
A^rilrll/*196t filed 2,500,000 ^shares^f stock; Price-^$10'
p 4 share. Business—A new mutual fund. Pi^ceeds—For

fund.

17,

tures

ceeds—For
poses.

mutual

Jan.

—Design and manufacture of precision electrical and
electronic measuring devices/and test equipment. Pro¬

Un¬

unit.

per

Calif. Underwriter—Bernard M. Kahn &

if Laclede Gas Coa

Electronics^ Inc.

Dec. 28, 1961 filed 125,000 common.

party

$100

drawn.
Winslow

—

Denver ,Club Building, Denver. Distributor—Nemrava &
Co., (same address).

Co., New Orleans. Note—This registration will be with¬

trading"

Price

if Investors Trading Co.
Jan. 17, 1963 filed 200,000 capital shares. Price — Net
asset value (max. $5), plus 8% sales charge. Business—

—

United Camera Exchange^ Inc. (2/4-8) Nov. 29, 1962 ("Reg. A")
*100,0Q®^Wito#0'
Business—Operation of; retail Jstbres selling and

warrant.

Co., Inc., New York.

repayment; expansion and
working capital. Office — 808 Dakin St., New Orleans.
Underwriter
Howard, Weil, Labouisse. Friedrichs &
Proceeds—For

stores.

one

development and promotion of a pay television system
Monica, Calif. Proceeds—For installation of a
system. Address — 19th and Broadway,

—

$11). Business—Operation of

and

in Santa

Wiener Shoes inc."
ment (max.

pay television
Santa Monica,

Underwriter—Godfrey, Hamilton, Taylor & Co., N. Y.
.

Business—Company^ and subsidiary are engaged in the

drug stores. Proceeds—Expansion, equipment and work¬
ing capital. Office—738 Beliefonte Ave., Lock Haven, Pa.

control and ultrasonics/ Proceeds—For debt repayment;
equipment, advertising arid mother corporate purposes.
Office—1695 Elizabeth Ave., Rahway, N. J. Underwriter
-

Inc.

holders. Price—$3; Business—Operates a chain of retail

29,-1962 filed 67,200 common.' Price—^S.SO. Business-LDesigri, engineering and manufacture of specialized products primarily in the field of contamination
control. Company also acts as sales agents and distrib¬
utors of allied equipment in the fields of contamination

F.),

Oct. 27, 1961 filed 162,000 common, of which 102,000 are
to be offered by the company and 60,000 by stock¬

Nov.

—None.

Office;—*1720 Military Rd.; Tonawanda, N. Y. Underwrit¬
er—Doolittle & Co., Buffalo.

—

(L.

the processing

Widman

/•

•'

A") 75,000 class A. Price—$4. Busi¬
ness—Development and marketing of new equipment for

White Photo Offset, Inc.
July 13, 1962 filed 100,000 common. Price—$3.50. Busi¬
ness—Photo-offset printing. Proceeds — For debt repay¬
ment, equipment and working capital. Office—142 W.
26th St., N. Y. Underwriter — K-Pac Securities
Corp.,
New York. Offering—In late February.

Jan. 16, 1963 ("Reg.

Proceeds -—For repayment of debt and other corporate

the Lake Shore copper deposit near Casa Grande, Ariz.
Proceeds—For equipment, exploration and working cap¬
ital. Office—201 E, 4th St., Casa Grande, Ariz. Under¬

Co., Inc., New York./-

if Hobam, Inc.

purposes.

—R, J.

homes

ment

University Ave.,

i/'/Whaoleiv^RyaniiJhc*-.:.^^^^

May 28, 1962 filed 500,000 capital shares. Price—$1.50
Business—Exploration, development and production of

Ultrasonic

July 27, 1962 filed 313,108

•

Business—Manufacture of

Proceeds—For the purchase of vessels, and working cap¬
Office—71 Saint Joseph St., Mobile, Ala. Under¬

working capital.
Office—19201 Cranwood
Warrensville Heights, Ohio. Underwriters—

Inc„ Cleveland,
Texas

Proceeds—For repayment of bank

107

★ Black Hills Power & Light Co.
^
~
Jan. 17, 1963, filed 22,516 common to be offered for sub¬
scription by stockholders on the basis of one new share
for

each

held.-Price—By amendment (max.: $44.40).
construction, and loan repayment. Office
—621 Sixth St., Rapid City, South Dakota. Underwriter
—Eastman Dillon, Union Securities &
Co., New York.
Proceeds—For

?>;
>

★ Western; Power * & Gas Co. (2/18-22) - .
Jan. 21, 1963 filed $9,000,000 of subordinated debentures
due
1978. Price—By amendment.
Proceeds—For debt
repayment, construction, advances to subsidiaries, and
other corporate purposes.10ffice—144. South ,12th St.,
Lincoln, Neb. Underwriters—Paine, Webber, Jackson &
Curtis, Dean Witter & Co., and Stone & Webster Secu¬
rities Corp., New York.
'
;
^
.

'•

Continued

page

108

The Commercial and Financial Chronicle
108

Office—25 Broadway, New York. Underwriters
The last public sale of securities in May,

future.

107

Continued from page

Loeb & Co., and Smith,

following registration statements were de~
clared effective this week by the SEC. Offering

Aquariums, Inc.
51,200 common offered at $4 per share by Golkin,
& Fishman, Inc., New York.

Electric Power Co*

1963. A spokesman for the company stated that the util¬
ity is thinking of selling 380,000 common shares, al¬
though a final decision has not been made. Office—2885
Foothill Blvd., San Bernardino. Underwriter — Merrill
Lynch, Pierce, Fenner & Smith Inc., New York.
i

Proceeds—To refund

first mortgage bonds due Jan. 1,
to yield 4.20% by Halsey, Stuart

share,'by

General

March 1, 1983 offered at

100.95% to yield 4.80% by Stone
Securities Corp,, White, Weld & Co., New

Illinois

Public Service Co.

July 10, 1962 it was reported that this company plans
to issue about $10,000,000 of first mortgage bonds in
1963. Proceeds—For construction. Office—607 E. Adams

St., Springfield, 111, Underwriters—(Competitive). Prob¬
able bidders: Eastman Dillon, Union Securities & Co.Equitable Securities Corp! (jointly); Blyth & Co.-Kidder, Peabody & Co.-Merrill Lynch, Pierce, Fenner &'
Smith Inc. (jointly); Halsey, Stuart & Co. Inc.; Salomon
Brothers & Hutzler; First Boston Corp.; Lehman Broth¬
ers-Bear, Stearns & Co. (jointly).

UNDERWRITERS! !

ATTENTION
"

"V-

Do you have an issue you're planning to register?
Our Corporation News Department would like

to know about it

that

similar to those you'll find

can

prepare an

item

hereunder.

{Would jkoUm telephone us at REctor 2-9570
write-.us at 25 Park. Place, New York 7, N. Y.

Chicago Burlington & Quincy RR

Jan.

16, 1963, following the sale of $6,300,000 of equip¬
certificates, it was reported that $14,7.00,000
of certificates remain to be sold in 1963, in two or hfiore
ment trust

instalments.

Prospective Offerings

Office

—

Jackson Blvd.; Chicago.
Probable bidders: Salo¬
Halsey, Stuart & Co. Inc.

547

Underwriters— (Competitive).
mon

Brothers & Hutzler;

Chicago Union Station Co.
^ Alabama Power Co.
Nov. 28, 1962 it was reported that this company will
Jan. 22, 1963 it was reported that this subsidiary of The
issue $48-$50 million of first mortgage bonds in May
Southern Co., plans to sell $13,000,000 of first mortgage
1963. Proceeds—To refund outstanding 3Vs% and 2%%
bonds and $5,000,000 of preferred stock in May. Proceeds
bonds maturing July I; 1963. Office—210 S. Canal St.,
—For construction. Office—600 North 18th St., Birming¬
;'fChicago. Underwriters. — (Competitive). Probable bid¬
ham, Ala. Underwriters—(Competitive). Probable bid¬
ders: Kuhn, Loeb & Co.; Halsey, Stuart & Co. Inc.; Kid-,
ders!; (Bonds); Blyth & Co., Inc.-Kidder, Peabody &
der, Peabody & Co.
Co. (jointly)Lehman Brothers; Eastman Dillon, Union,
Community Public Service Co.
Securities & Co.-Equitable Securities Corp.-Drexel &
Jan. 16, 1963 it was reported that this company plans
Co. (jointly); Halsey, Stuart & Co. Inc.; First Boston
to sell $8,000,000 of first mortgage bonds in June 1963.
Corp.; Morgan Stanley & Co. (Preferred): First Boston
Office—408 W. 7th Street, Fort Worth, Tex.Underwriters
Corp.; Eastman Dillon, Union Securities & Co.-Equitable
—^Competitive). Probable bidders: Halsey; Stuart &
Securities Co. (jointly); Blyth & Co.; I Morgan Stanley
Co. Inc.; Salomon Brothers & Hutzler; Stone & Webster
& Co.; Stone & Webster Securities Corp.
Securities Corp.
oAr Atlanta Gas Lighi Co.
Connecticut Light & Power Co.
Jan. 22, 1963 the company stated that it was negotiat¬
Dec. 10, 1962 it was reported that the company is con¬
ing with certain underwriters for the proposed sale of
sidering the issuance of about $22,500,000 of bonds in
$2.7,000,000 of first mortgage
bonds. It added that if the
negotiations are not fruitful the bonds ■■■■• would be sold
at competitive bidding. Proceeds — To refund approxi¬
mately $17,000,000 of outstanding 5Vs % bonds due 198285, and, for construction. Office—243 Peachtree St., N. E,,
Atlanta, Ga. Underwriters—To be named. The following
bid on the last sale of bonds on Dec.
8, 1960: White, Weld
& Co.-Kidder, Peabody & Co.
(jointly); First Boston
Corp.; Shields & Co.- Equitable Securities Corp. (joint¬
ly); Halsey, Stuart & Co.; Stone & Webster Securities
Corp. Offering—Expected in March.

★ Atlantic City Electric Co. (3/6)
Jan. 22* 1963 it was reported that-the
company plans tosell $15,000,000 of first
mortgage bonds due 1993. Office
—1600 Pacific Ave., Atlantic
City, N. J. Underwriters—

1963

1964. Proceeds—For construction. Address—Sel- •:>

den

St., Berlin, Conn. Underwriters—To be named. The
last public offering of bonds on Jan. 20, I960 was.
handled by Morgan Stanley & Co.-Putnam & Co.-Chas.
W. Scranton & Co.-Estabrook & Co. (jointly).
consumers
-

Power Co.

Jan. 16, 1963 it was reported that the company plans to
sell $40,000,000 of bonds in the second half of 1963, or:
in 1964. Office—212 West Michigan Ave., Jackson, Mich.

Underwriters—(Competitive). Probable bidders: Halsey,
Stuart & Co. Inc.; White, Weld & Co.-Shields & Co.
(jointly); Harriman Ripley & Co. Inc.-First Boston Corp.
(jointly); Morgan Stanley & Co.
Eastern

Weld & Co.-Shields & Co.
Drexel

sidiaries.

ties &

Underwriter—Allen & Co.. New York,

(Competitive).

Probable bidders: White, Weld & Co.(jointly); Kuhn, Loeb & Co., Inc.-Ameri¬
Corp.-Wood, Struthers & Co. (jointly);
Lee Higginson Corp.; Halsey, Stuart & Co.
Inc.; White,
Sliields & Co.

Securities

(jointly); First Boston Corp.& Co. (jointly); Eastman
Dillon, Union Securi¬
Co.-Smith, Barney & Co. (jointly); Blyth & Co.
Bids—Expected March 6 (11 a.m. EST) at Irving Trust
Co., One Wall St., New York.
Atlantic Coast Line RR
Jan. 15,

1963 it

(2/18)

was

reported that this road plans to sell
$3,600,000 of 1-15 year equipment trust certifi¬
cates. Office-—220 E. 42nd
St., New York. Underwriters
about

—(Competitive). Probable bidders: Salomon Brothers &
Hutzler; Halsey, Stuart & Co. Inc. Bids—Feb. 18 (12
noon
EST) at above address.

Office

—

Moonachie

Ave.,

Carlstadt,

Dec.

1962,

Steel

Co.

Arthur

that the company will

100,114 shares
seven

the basis of

one

new

share for

each

held of record Jan. 22.

Rights will expire Feb. 7.
Price—$32. Proceeds—To increase capital funds to permit
the opening of additional branches. Office—10 Columbus
Circle, New York. Underwriters — Kuhn, Loeb & Co.,
Inc.; Paine, Webber, Jackson & Curtis, and Laird, Bissell
& Meeds, New York.
/
Food

Homer, Chairman,

announced

embark

May

11,

Fair

1962

Properties, Inc.
stockholders

authorized

Issue 756.000 shares of

n?iy^e. balance
added

ters. Proceeds—To retire

program

secured

that this would not be

which need not

be registered with the SEC. Proceeds
sale; will be used to reimburse American citi¬
zens for losses of life and property during World- War
II. Business—Company is a leading domestic producer
of dyestuffs, chemicals and photographic; materials. Of¬
fice—111 W. 50th St., New York, Underwriters—(Com¬
petitive). Probable bidders:. Bache & Co.; Blyth & Co.First, Boston Corp. (jointly); Lehman Brothers-Kuhn,
from the

;

Loeb

8^CdAGlore^ E^gail,8{; Go. ?{jointly)^4 ll

externally.

Mr. Homer

required in the immediate

if Georgia Power Co.
Jan. 22, 1963 it was reported that this subsidiary of The
Southern Co., plans to sell $30,000,000 of first mortgage
bonds arid $7,000,000 of preferred stock in November.
Proceeds—For construction. Office—270 Peachtree Bldg.,
—
(Competitive). Probable bid-*
(Bonds); Equitable Securities Corp.-Eastman Dil¬
lon, Union Securities & Co. (jointly); Blyth & Co.-Kidder, Peabody & Co.-Shields & Co. (jointly); Halsey,
StUart & Co^ Inc.; First Boston Corp,; Harriman Ripley
& Co.; Morgan Stanley & Co.; Lehman Brothers. (Pre¬
ferred): First Boston Corp.; Lehman Brothers; Blyth &
Co.; Eastman Dillon, Union Securities & Co.-Equitable
Securities Corp. (jointly); Morgan Stanley & Co.

Co.

Gulf ^States Utilities
Oct. 5, 1962 it was
sell $16,000,000 of

ceeds—To retire

reported that this company plans to
first mortgage bonds due 1992. Pro¬
like amount of 5 Ya % bonds dud 1989.

Office—285 Liberty Ave.,

Beaumont, Tex. Underwriters

—(Competitive). Probable bidders: Salomon Brothers &
Hutzler-Eastman Dillon, Union

Securities & Co. (joint¬

ly); Stone & Webster Securities Corp.; Halsey, Stuart &
Co. Inc.; Merrill Lynch, Pierce; Fenner & Smith Inc.White, Weld & Co. (jointly); Lehman Brothers. Offer¬
ing—Temporarily postponed.

Highway Trailer Industries, Inc.
Sept. 10, 1962 it was reported that this company plana
to raise-risomer'$2*500,000. by ar.rights offering to stock¬
holders. Authorized stock now consists of.2,000,000 $1.25
pari ivppimon shares of wjrich 714,086 shares are out¬
standing.' Business-^-Manufacture of truck trailers, cargo]
containers, telephone and power line construction equip-]
ment, etc. Proceeds—To help form a hew finance com¬
pany subsidiary.. Office—250 Park Ave., N. Y. Under-'
writers—To be named. The last financing by the com¬
pany
was
underwritten
by Allen
& Co., and Van
Alstyne, Noel & Co.. New York City.
Interstate Power Co.

Jan. 16, 1963 it was reported that this company plans to
sell $7,000,000 of first mortgage bonds and $3,000,000 of
common stock in May 1963, Office—1000 Main Street,

Dubuque, Iowa; Underwriters—(Competitive). Probable
bidders; Merrill Lynch, Pierce, Fenner & Smith Inc.Kidder, Peabody & Co. (jointly); Halsey, Stuart & Co.
Inc.; Salomon Brothers & Hutzler; White; Weld & Co.
Iowa Power & Light Co.
Jan.

16, 1962 it was reported that the company
to sell $10,000,000 of bonds in the fourth quarter.

plans
Office
—823 Walnut St., Des Moines. Underwriters—(Competi¬
tive). Probable bidders: First Boston Corp.; White, Weld
& Co.; Halsey, Stuart & Co. Inc.; Equitable Securities
Corp.; Kidder, Peabody & Co.; Eastman Dillon, Union
Securities & Co.; Lehman Brothers; Blyth & Co.
Iowa Public Service Co.
Nov. 5, 1962 it was reported that this company plans to
sell $16,000,000 of bonds in the third quarter of 1963.

Address—Orpheum-Electric Bldg., Sioux City, Iowa. Un¬
derwriters—(Competitive).
Probable bidders: Kidder,
Peabody & Co.-Blyth & Co. Ihc. (jointly); Eastman Dil¬
lon, Union Securities & Co.; Equitable Securities Corp.;
White, Weld & Co.; First Boston Corp.
Jamaica Water Supply Co.
it was reported

March 20,. 1962
sell

that this utility plans
$3,000,000 of mortgage bonds and $2,000,006 of

preferred

and
and

common

stocks.

construction.

Proceeds—For

Office

—

161-20

debt

89th

re¬

Ave.,

Jamaica, N. Y»

Underwriters—rTo be named. The last
sale of bonds on May 3, 1956 was made by Blyth & Co.
Other bidders were: Halsey, Stuart & Co. Inc.;
Kidder,
Peabody &• Co.; White, Weld & Co.
The last several
Issues of preferred were sold privately. The last sale
of common on May 9, 1956 was made through Blyth &

Kentucky Utilities Co.
1, 1962 it was reported that this utility plans to
sell approximately $15,000,000 of 30-year first mortgage
bonds, in the first quarter of 1963. Office—120 So. Lime¬
stone St., Lexington, Ky. Underwriters—(Competitive).
Probable bidders: Blyth & Co., Inc.; Halsey, Stuart &

::Aug.

Co.

Business—Development and operation of shopping cen¬
outstanding 6% preferred stock
and purchase up to $6,000,000 convertible debentures of

Inc.;

Kidder,

Peabody

Co.-White,

Weld

Co.

(jointly); Eastman Dillon, Union Securities & Co.-Mer¬
Lynch, Pierce, Fenner & Smith Inc. (jointly).

rill

Laguna
Dec.

the

company to
a new convertible preferred stock
which will be offered to stockholders through subscrip¬
tion rights on a 1-for-lO basis.
Price—By amendment.

on a $750,000,000
capital
completed over the next
three years.
He said that approximately two-thirds of
the
financing for the program will be generated inter-

improvements

2,050,000 class B shares, representing 98%

Co., Inc.

ir Federation Bank & Trust Co.
Jan. 23, 1963 it was reported that the bank is offering
its stockholders the right to subscribe for an additional

Bethlehem

of the Voting control of the company. The stock, now
held by the Attorney General, was seized in 1942 as a
German asset. No date has been set for the offering

payment.

Freight Ways, Inc.

Oct. 9,

1962 the ICC authorized the company to issue
100,000 common. Price—By amendment (min. $5). Busi¬
ness—A motor vehicle common carrier operating in nine
eastern states from Vermont to Virginia. Proceeds—For
working capital, debt repayment and advances to sub¬

can

class A and

ders:

—

Central

York, and Halsey, Stuart & Co. Inc., Chicago.

Atlanta. Underwriters

(Competitive), Probable bidders; Halsey,
Stuart & Co. Inc.; First Boston Corp.; Kidder, Peabody
& Co.; Eastman Dillon, Union Securities & Co.; Merrill
Lynch, Pierce, Fenner & Smith Inc.-Stone & Webster
Securities Corp. (jointly); Blyth & Co.-Lehman Brothers
& Co.-Salomon Brothers & Hutzler (jointly). Bids—
March 11 (11 a.m, EST) at 300 Park Ave., New York.
Information Meeting—March 8 (11 a.m.) at 16 Wall St.
(2nd floor), New York.

at 98.727

per

{

•

,'»

signed a bill authorizing the Government to sell its holdings of 540,894

April 1, 1963. Office—300 Liberty St., Peoria, I1L Un¬

$50,000,000 of 4%% first mortgage pipe line bonds due
Webster

Offering—Indefinitely postponed.;

General Aniline & Film Corp.
.
On Oct. 22,; 1962, President Kennedy

derwriters

Tennessee Gas Transmission Co.

(3/11)

2, 1963 it was reported that this utility plans to sell

$9,375,000 of first mortgage bonds due 1993 in March;
a like amount of ZYi% bonds due

Corp.,

Inc., Chicago.

Servotronics, Inc.
125,000 common offered at $3
Securities Co., Inc., New York.

Central Illinois Light Co.

Jan.

Wheat

Public Service Co. of Oklahoma
offered

Thursday, January 24, 1963

Stanley & Co., New York.

$10,000,000 of 4%%

New York.

Oct. 29, 1962 it was reported that this company plans
raise new money in the third: or fourth quarter of

Divine

Chesapeake & Potomac Telephone Co. of Mary land
$50,000,000 of 4% % debentures due J an. 1, 2002 off ered
at 102%% hnd accrued intbtest to yield 4.224% by MorLuck's, Inc.
145,500 common offered at $8 per share by J, C.
&
Co., Richmond, Va., and Allied Securities
Greensboro, N. C.

Underwriters—(Competitive.) Probable bidders: Halsey,
Stuart & Co. Inc.; White, Weld & Co.; Merrill Lynch,
Pierce, Fenner & Smith Inc^; Blyth & Co.,Tnc.-Eastman
Dillon, Union Securities & Co.-F, S. Moseley & Co.
(jointly); Harriman Ripley & Co., Inc.-First Boston
Corp. (jointly). Bids—Expected Feb, 27.

in the

California

1993

The

details, where available, will be carried
Monday issue of the "Chronicle"

Brooklyn Union Gas .Co* (2/27)
Dec. 26, 1962 it was reported that the company plans
to offer $12,000,000 of 25-year first mortgage bonds in
February. Office — 195 Montague St., Brooklyn, N. Y.

Effective Registrations

& Co.

Major Realty Corp., an affiliate. Office—223 East Alleg¬
hany Ave., Philadelphia. Underwriter—To be named.
The last rights offering in December 1957 was under-*
written by Eastman Dillon, Union
Securities & Co.,

—To be named.

1955, was handled by Kuhn,
Barney & Co., New York.

gan

(396)

Niguei

Corp.

11, 1962, Gerald W. Blakeley, President, stated that
the company is "seriously considering" the issuance of
about $10,000,000 of debentures to redeem its 60-cent
cumulative class A stock. Mr. Blakeley said class A divi¬
dends must be paid from after-tax earnings, meaning
the company has to earn 12% of gross revenue, whereas
interest on debentures is an expense item, so the com¬
pany would have to earn only 6% to provide the same

Number 6232

Volume 197

The Commercial and Financial Chronicle

Business—Acquisition, development and manage¬
real properties. Office — 32802 Pacific Coast
Hwy., So., Laguna, Calif. Underwriter—To be named.
The last financing for the company was handled by
Paine, Webber, Jackson & Curtis, Boston.
return.
ment

Lynch, Pierce, Fenner & Smith Inc.-Kidder, Peabody &
Co.-White, Weld & Co. (jointly); Equitable Securities
Corp.-Eastman Dillon, Union Securities & Co. (jointly);

Lehman

ary

plans to sell $40,000,000 of debentures to mature not

than 40 years after date of issuance. Office—100
So. 19th St., Omaha, Neb. Underwriters—(Competitive).
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan

Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc.;
Dillon, Union Securities & Co.; Kidder, Pea-

Union

body & Co.; Blyth & Co.-White, Weld & Co. "(jointly).

at 195

Stanley

Michigan Consolidated Gas Co.
sell

Co.;

First
&

Boston

Co.

Corp.-Eastman Dillon,
Bids—Expected March 5, 1963

Broadway, New York.

Jan. 8,

1963 it

about

—415 Clifford

St., Detroit. Underwriters—(Competitive).
Halsey, Stuart & Co. Inc.; Blyth &
Co.; Inc.j White, Weld & Co.-Lehman Brothers (jointly).

Probable bidders:

s >

was

Fenner & Smith

Inc.-White, Weld & Co. (jointly); Hal¬
Stuart & Co. Inc.; Lehman Brothers-Blyth & Co.
(jointly); First Boston Corp.; Harriman Ripley &
Co., Inc.-Eastman Dillon, Union Securities & Co. (joint¬
ly); Equitable Securities Corp. Bids—March 12 (11 a.m.
EST) at First National City Bank, 55 Wall St., New York.
sey,

Inc.

Michigan Wisconsin Pipe Line Co.
Oct. 24, 1962 it was reported that this company plans
to sell about $22,000,000 of first mortgage bonds in the
third quarter of 1963. Proceeds—For construction. Office
—500
Griswold St., Detroit. Underwriters—(Competi¬
tive). Probable bidders: Halsey, Stuart & Co. Inc.; First

Otter Tail

24, 1962 it was reported that the Japanese Finance

Ministry had authorized the company to sell $10,000,000
of convertible bonds in the UVS. by March 31, 1963. It is

& Co.

man

expected that the bonds would mature in 15 years and

Pacific

bear interest of 6.5%. No decision has yet been made as

Nov.

to whether the issue will be sold

publicly or privately.
Business—Production of electric machinery. Proceeds—
For
expansion. Office—Tokyo, Japan. Underwriter—
Kidder, Peabody & Co., New York.

28,

(jointly); White, Weld & Co.
Power

1962 it

Light Co.
reported that the

was

company

plans

to issue $30,000,000 of first mortgage bonds in June 1963.
Proceeds—To repay outstanding loans. Office—920 S. W.
Sixth

Ave., Portland, Ore. Underwriters—(Competitive).
bidders: Lehman Brothers-Bear,
Stearns &
Co.-Salomon
Brothers
&
Hutzler
(jointly); Halsey,
Stuart & Co. Inc.; Blyth & Co.-White, Weld & Co. (joint¬
ly); Eastman Dillon, Union Securities & Co.-Kidder,
Peabody & Co. (jointly).
Probable

New

England Power Co.

Jan.

16, 1963 it was reported that this utility plans to
sell $10,000,000 of bonds and $10,000,000 of preferred
stock in the fourth quarter. Office—441 Stuart St., Bos¬
ton. Underwriters — (Competitive). Probable bidders:
(Bonds) Halsey, Stuart & Co. Inc.; Lehman BrothersEquitable Securities Corp. (jointly); Kuhn, Loeb & Co.;
Merrill Lynch, Pierce, Fenner
& Smith Inc.-Kidder,
Peabody & Co.-White, Weld & Cbl'
Bos¬
ton Corp. '(Preferred) First /Boston Corp.; Dean Witter
& Co.-Smith; Barney. & Co^Wertheim & Co.
(jointly);,
Equitable Securities Corp.-Kidder, Peabody & Co.-Lee
Higginson Corp.-White, Weld & Co. (jointly); Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Smith, Inc.

Pennsylvania Power & Light Co.
Feb; 20, 1962. Jack K. Busby, President and C. E. Cakes.
Chairman, stated that the company will require about
$93,000,000 in debt financing in the period 1962 to 1970.
Proceeds-rFor construction and, the retirement of $17,-

00p,000r of maturing bonds. Office—9th and Hamilton
Sts., Allentown, Pa. Underwriters—To be named. The
last sale of bonds on Nov. 29, 1961 was won at com¬
petitive bidding by White, Weld & Co., and Kidder,
Peabody & Co.
Other bidders were Halsey, Stuart &
Co. Inc.; First Boston Corp.-Drexel & Co. (jointly).

Nippon Telegraph & Telephone Public Corp,
Dec. 19, 1962, it was reported that the company plans to
sell $20,000,000 of bonds in the United States in. the fis¬

Potomac Electric Power Co.

cal year

April 1, 1963 to March 31, 1964. The financing
program is subject to approval by the Japanese Diet.
Business
Nippon Telegraph, wholly-owned by the
Japanese Government, furnishes domestic telephone and
telegraph services, without competition, in Japan. Pro¬
ceeds—For
expansion. Office—Tokyo, Japan. Under¬
writers—Dillon, Read & Co.; First Boston Corp., and
Smith, Barney & Co., New York.
Norfolk & Western Ry.

(2/19)

Jan. 8,

1963, it was reported that this utility plans to
$50,000,000 of first mortgage bonds. Office—929 E
St., N. W., Washington, D. C. Underwriters—(Competi¬
tive). Probable bidders: Dillon, Read & Co., Inc.-Lehman
Brothers-Eastman Dillon, Union Securities 5c Co.-Stone
sell

—

Webster Securities Corp. - Johnston, Lemon & Co.
(jointly); Halsey, Stuart & Co. Inc.; First Boston Corp.;
Kidder, Peabody & Co,rMerrill Lynch, Pierce, Fenner
&

(3/25)

Smith

Hutzler

26, 1962 it was reported that this road plans to sell
$5,475,000 of 1-15 year equipment trust certificates
in March. Office—8 N. Jefferson St., Roanoke, Va. Un¬
derwriters—(Competitive.) Probable bidders: Salomon
Brothers & Hutzler; Halsey, Stuart & Co. Inc. Bids —
Expected March 25.

Inc.-White,Weld & Co.-Salomon Brothers &

(jointly). Bids—Feb. 19 (10

a.m.

EST) at above

address.

about

Illinois

Gas

Seaboard Air

//Snelling

& Snelling, Inc.

Nov.

20, 1962 it was announced that the company plans
its first public offering of stock. Business—Operation of
a

nationwide network
in

pansion. Office—1530 Chestnut St., Philadelphia. Under¬

Jan.-22, 1963 the company announced plans to sell about
$200,000,000 of debentures in early April. Business—Com¬

Ind.

Underwriters

Halsey^Stuart & Co; Inc.; White, Weld

pany

Southern California Edison Co.

Gas Co.

Jan.

was reported that this company plans to
$30,000,000 of debt securities sometime in 1963 or
1964. Office—2223 Dodge St., Omaha, Neb. Underwriter—

sell

1960

named.

was

The

handled

of debentures on Nov. 16,
negotiated basis by Blyth & Co.,

Northern States Power Co.

Jan.

11,

1963, it

was

(Minn.)

reported that this

;

last half of the year.

Office—15 South Fifth

Proceeds

—

was

reported that this company plans
year or in 1964.

ly).:-/;;;:.;/

company

plans
in

2736, Terminal Annex, Los Angeles 54, Calif. Under¬
writers—(Competitive) Probable bidders: White, Weld

For construction.

St., Minneapolis. Underwriters—

Inc.; First Boston Corp.-Blyth & Co, (jointly); Merrill

the first

quarter of

1963.

Office—1507 Pacific

Southwestern Electric Power Co.
Jan. 16, 1963 it was reported that this
company plans to
sell $30,000,000 of first
mortgage bonds in the fall of
1963. Office—428 Travis
St.,

Shreveport, La. Underwrit¬
ers—(Competitive). Probable bidders: Merrill Lynch,
Pierce, Fenner & Smith Inc.-Eastman Dillon, Union Se¬
curities & Co. (jointly);
Kuhn, Loeb & Co.-Blyth & Co.
Inc.-Salomon
Brothers & Hutzler
(jointly); Halsey,
Stuart & Co. Inc.

Tennessee Valley Authority ;;
Oct. 3, 1962, A. J. Wagner, Chairman, stated that the
Authority plans to issue $50,000,000 of short- or longterm securities in the spring of 1963.
Proceeds—For
construction. Office—Knoxville, Tenn. Underwriters—
To be named. On Jan. 24, 1962 the
Authority sold at

competitive bidding $45,000,000 of 41/2 % bonds due Feb.
1, 1987. The issue was won by a group jointly managed
by Chase Manhattan Bank; Morgan Guaranty Trust Co.
of New York; Chemical Bank New York Trust
Co.; C.
J. Devine & Co.; and the First National Bank of
Chicago.
Texas National Bank of Houston r'

&
&
•

Co.; Blyth & Co. Inc.; Merrill Lynch, Pierce, Fenner
Smith Inc.; Halsey, Stuart & Co.
Inc.; First Boston

Corp;*

•

Jan. 15, 1963, it was reported that the bank is offering
its stockholders the right to subscribe for an additional
80,000 common on the basis of one new share for each
10 held of record J en.
15, with rights to expire Jan. 30.

Price—$5,5. Proceeds—To increase capital and/ surplus.
Address—1300 Main St., Houston. Underwriter—Merrill
Lynch, Pierce, Fenner & Smith Inc., New York.
Union Light,

Heat & Power Co.

Nov, 21, 1962 it was reported that this
subsidiary of
Cincinnati Gas & Electric Co., plans to sell
$5,000,000 of
first mortgage bonds in 1963. Office—139 East Fourth
St., Cincinnati, Underwriters — (Competitive). Probable
bidders: Halsey, Stuart & Co.
Inc>; Blyth & Co. Inc.First Boston Corp. (jointly); Merrill
Lynch, Pierce, Fen¬
ner
& Smith
Inc.-Kidder, Peabody & Co. (jointly);
Equitable Securities Corp.; White, Weld & Co.;
Kidder,
Peabody & Co.

Virginia Electric & Power Co. (5/14)
Jan. 16, 1963 the
Company announced plans to sell $30,000,000 of first mortgage bonds due 1993. Proceeds—For
construction. Address—7th and Franklin
&

Co.

bidders: Halsey,
Securities Corp.;

Inc.; >Stone & Webster
White, Weld & Co.; Eastman Dillon, Union Securities &
Co.; Salomon Brothers & Hutzler. Bids—Expected May

Washington Gas Light Co.
Aug. 1, 1962 it

was

reported that, this company plans > to

$12,000,000 of 25-year bonds, in the second quarter
Office—1100 H. St.* N. W., Washington, D. C.
Underwriters—(Competitive): Probable bidders: East¬
man
Dillon, Union Securities & Co.; Equitable Securities

"t r-

-V

1963.

Corp.; Kidder, Peabody & Co.; First Boston Corp.; Hal¬
Stuart & Co. Inc.

sey,

Western Light & Telephone Co., Inc.

Aug. 1, 1962 it

was reported that the company plans to
approximately $5,000,000 of common stock through
a rights offering to
stockholders, in the second quarter
of 1963.
Office—2015 Forest Ave., Great Bend, Kan.
Underwriter—To be named. The last rights offering in
January, 1957, was underwritten by Dean Witter & Co«
San Francisco.
1
~
■

sell

Wisconsin Public Service Corp.
Jan. 16, 1963 it was reported that this company

Jan. 2, 1963 it was reported that this
subsidiary of Paci¬
fic Lighting Corp., plans to sell
$27,000,000 of first mort¬
gage bonds in the fourth quarter.. Address—P. O. Box

(Competitive). Probable bidders: Halsey, Stuart & Co.

Southern Counties Gas Co. of Calif.

to sell $25,000,000 of first mortgage bonds due 1993
the

1963

$60,000,000 of bonds later this

Inc.; First Boston Corp., and Dean Witter & Co. (joint¬

Inc., N. Y.
•

16,

sell

Office—601 West Fifth St., Los Angeles. Underwriters—
(Competitive). Probable bidders: Halsey, Stuart & Co.

last sale

and its subsidiaries

refining,

Janv 16,1963 it

Ave., Dallas. Underwriters
To be named. The last
rights offering of preferred stock in April 1959 was
handled by Snow,
Sweeny & Co., Inc., N. Y., and A. C.
Allyn & Co., Chicago.

are engaged in the production,
transportation and distribution of petroleum
products. Proceeds—-For general corporate purposes* Of¬
fice—150 E. 42nd St., New York. Underwriter—Morgan
Stanley & Co., New/ York.

Co.; Eastman Dillon, union' Securities & Co.-Lehman
Brothers-Bear, Stearns & Co. (jointly); Equitable Se¬
curities Corp.; Dean Witter & Co.-Blyth & Co.-Merrill
Lynch, Pierce, Fenner & Smith Inc. (jointly); First Bos¬
ton Corp.; Kuhn, Loeb & Co. / * '
""'v-*'
Northern Natural

Southern Union Gas Co.

Aug. 15, 1962 it was reported that this utility plans a
rights offering of $10,000,000 of convertible preferred

sell

Socony Mobil Oil Co., Inc.

(Competitive).

—

reported that the company plans to

$4,020,000 of equipment trust certificates in Feb¬
ruary. A second instalment, also of
$4,020,000, will be
sold later in the year. Office—70 Pine
St., New York.
Underwriters — (Competitive). Probable bidders: Salo¬
mon Brothers &
Hutzler; Halsey, Stuart & Co. Inc. Bids
—Feb. 14 (12 noon
EST) at above address.

personnel consult¬
major cities. Proceeds—For ex¬

Ave.,

Hammond,

was

sell

of franchised

writer—To be named.

—

Railway Co. (2/14)

Jan. 16, 1963 it

Stuart

Jan. 27, 1963, the company stated that' it plans to sell
$25-$30,000,000 of first mortgage bonds sometime in 1963,
depending on market conditions. Office — 5265 Hohman
Probable bidders:

St., Richmond, Va., and 70 Pine St., New
(Competitive). Probable bidders:
First Boston Corp.; Eastman
Dillon, Union* Securities
& Co.-Salomon Brothers & Hutzler
(jointly); Halsey,
Stuart & Co. Inc.;
Kidder, Peabody & Co.-White, Weld
& Co. (jointly).
Bids—Expected in late February.

Underwriters—(Competitive). Probable

;

Canal

Sts., Richmond.

Hutzler.

ants with offices
,

26, 1962 it was reported that this company plans to
sell $6,360,000 of equipment trust certificates in late
February. This will be the second installment of a total
issue of $12,720,000.
Office—3600 W. Broad St., Rich¬
mond, Va. Underwriters — (Competitive.) Probable
bidders: Halsey, Stuart & Co. Inc.; Salomon Brothers &

Dec. 20,1962 the company stated that it plans to spend
$40,000,000 on construction in 1963, an. undetermined
amount of which will be raised by sale of bonds. Office
—615 Eastern Ave;, Bellwood, 111. Underwriters-— (Com*
petitive). Probable bidders: First Boston Corp.; Halsey,
Stuart & Co. Inc.; Blyth & Co., Inc.-Equitable Securities
Corp. (jointly); Glore, Forgan & Co. /
;,Mj-

Line

Dec.

Co.

-jAr Northern Indiana Public Service Co-

and

York. Underwriters

Dec.

/Northern

mortgage 3% % bonds of Atlanta & Charlotte Air Line
RR.; reimburse the treasury for capital expenditures and
provide for additional capital expenditures. Offices—14th

—

16, 1963 it was reported that this company plans
to sell $10,000,000 of bonds in the fourth quarter. Office
—215 South Cascade St., Fergus
Falls, Minn. Under¬
writers—(Competitive). Probable bidders: Halsey, Stuart
& Co. Inc.; Blyth & Co. Inc.; Glore, Forgan & Co.-Kal-

Mitsubishi Electric Mfg.; Co,

:;f

15, 1963 stockholders authorized the
company to
issue $50,000,000 of general mortgage bonds. Proceeds—
To acquire stock of Central of
Georgia Ry.; retire first

stock

Power Co.

Jan.

Blyth & Co., Inc.

Southern Railway Co.

109

Jan.

Southern

(3/12)

reported that this company plans to
sell $15,000,000 of first mortgage bonds due 1993. Office
—321 No. Harvey St., Oklahoma City. Underwriters—
(Competitive). Probable bidders: Merrill Lynch, Pierce,

$22,000,000 of first mortgage bonds in the
third quarter of 1963. Proceeds—For construction. Office

Oct.

Securities

Oklahoma Gas & Electric Co.

24, 1962 it was reported that this company plans

Boston Corp.;

(3/5)

later

Eastman

(jointly).

Dec. 3, 1962 it was reported that this A. T. &
T., subsidi¬

Jan. 16, 1963 it was reported that this company plans to
sell $10,000,000 of bonds in the fourth quarter. Office—
441 Stuart St., Boston. Underwriters — (Competitive).
Probable bidders: Halsey, Stuart & Co. Inc.; First Bos¬

On Oct.

Brothers-Riter & Co.

Northwestern Bell Telephone Co.

Massachusetts Electric Co.

ton

(397)

*"rt.fri

sell $15,000,000 of bonds later

—1029 North Marshall

this

year or

plans to

in 1964. Office

St., Milwaukee. Underwriters—

(Competitive). Probable bidders: Halsey, Stuart & Co,
Inc.; Merrill Lynch, Pierce, Fenner & Smith Inc.; East¬
man

Dillon, Union Securities & Co.-Salomon Brothers

& Hutzler

(jointly); First Boston Corp.; White, Weld &

Co.; Kidder, Peabody & Co.

Chronicle

The Commercial and. Financial

<398)

110

the

with

moderate

Thursday, January 24, 1963

Successful Bidders for Puerto Rico Bonds

TAX-EXEMPT BOND MARKET
Continued from page

present bal¬

$13,000,000.
A companion issue, $12,000,000
$10,000,000 Cleveland, Ohio City,
State of Oregon, Highway (1966r
School District (1964-1983) bonds
1985) Jponds was awarded tq, the
stipulating a 2.777%" interest eostf
{group
composed " of. Bank of
.This winning bid: compared; very
favorably with the, second* bid, a {America^
^j/BoStori Corp.,,; ahd; '"MeIldn;\'N(t-T
2.778%.r net interest -cost which
tional Bank & Trust Go * at a nel
^came.from the group: led;.jointly
interest
cost
of
2.988 %;: The
by First National Bank* of: Chi?
,rtinner-ulp* bid^ a 3.007%; net in-^
cagoand Bankers Trusty Co,
terest cost, came from the group
Associates bf " Glore, /-F'organ &
headed jointly" by the First Na-'
Co.
in
this group were Bear,
tional City Bank and Harris Trust
Stearns & Co., Philadelphia Na¬
& Savings Bank,.
tional
Bank, United
California
Scaled to yield from 1.90% in
Bank* Los Angeles, National State
1866 to 3.25% in 1994, the present
Bank,
Newark,
First National
balance in group totals $3,500,000.
Bank,
Boston,
Paribas
Corp.,
The 1995 maturity carried a. oneStroud & Co., Ira Haupt & Co.
tenth of 1% coupon and was not
and Gregory & Sons.' Scaled: to
in syndicate

ance

bid for

submitted, the; best

ates

■

reoffered.

yield; from 1.65% to 3.00% 'for a
initial orders have

New

$4,000,000."'

amounted to

- ''

Morgan G uaranty Trust Co. of

2%' coupon,

•

York

sub¬

associates

and

2.532% net
cost, for $12,350,000 Mil¬

mitted the best bid, a

Tuesday Was a Very Busy Day

interest

22, was a busy waukee, Wisconsin, Public Im¬
day with four issues of note of¬
provement (1964-1978) bonds. The
fered
for public bidding.
The second bid, a 2.563% net interest
Tuesday, Jan.

largest

loan

$25,- cost,

the week,

000,000 State of Oregon Veterans

(1972-1978) bonds, was
awarded to the syndicate Jointly
managed

Bank

City

Bank

interest

cost

bid,, a 2.797 %
N.

The

National

runner-up

made by the Bank of

Other

•

Bros,

Hallgarten

Francis

Boston,

Bros.

and

headed by the Chase Manhattan

Guaranty

Trust

Company, and.

basis of 3.12057

curities Corp. and Rand & Co.
Portland, Chase Scaled to .yield from 1.60% to
Manhattan Bank, Kiihny Loeb & 2.70%,
good
commercial bank
Co!,'Blyth & Co., Chemical Bank, buying was reported for this is¬
New York Trust Co., Philadelphia
Scaled to yield from 2.50% in
sue with the present balance $5,~
National Bank, - Seattle First Na¬
1967 to 3.90% in 1994, this yieid
435,000.
tional
B an k,
Merrill Lynch,
The syndicate headed jointly by bond attracted good investor de¬
Pierce, Fenner & Smith; Inc., R. Ira Haupt & Co., and Walston & mand with the present balance of
W.> Pressprich & Co., Weeden &
Co., won $6,000,000 Las Vegas Val¬ $1,600,000. The 1995 maturity car¬
Gp.V First Western Bank & Trust ley,. Water District, Nevada: {1967 ried a 3V4% coupon and was sold
Cd.'," Los Angeles, F, S. Moseley to 1995) bonds on a 3.808% net in¬ at 4.00% yield. ^
A V;
'
j^^Cb., American Securities Corp., terest cost bid. The second bid, a'
Dollar Botid Quotes Recede
"Marine Trust Co. of Western New
3.84% net Interest cost, came from

Partner of Ira

Francis

right:

Senior Vice-President of the Govern¬

Rico, fiscal

agent; Dr. Rafael Pico, President of the Govern¬
Development Bank and John de Milhau,

ment

Senior

ing, Ugo J. Lisi, Vice-President, Banco de Ponce

Bankers Trust Co., First National

left

ment Development Bank for Puerto

Shown, left to right: Stand¬

Seated,

Co.

Bo wen,

$9,100,000 City of San Juan, Puerto Rico, bonds,
on a bid which represented & net interest cost

Co., Second District Se¬

William G. Carrington, Jr.,

Haupt

successful bidder, Jan. 16, for an issue of

was

Co., Bache & Co., Brown
Harriman & Co., Spencer

Trask &

group

Morgan

Ira Haupt & Co., and including Banco de Ponce

Pont &

of the
include

banking

Bank,

& Co.,
Co., National Shawmut

Hutzler,

America Bank

members

syndicate

of the winning

Salomon

include

Stroud &

group.

major

successful

and

cost

popular bond.

Other members
account

ranging from
interest

2.58%

made for this

interest cost,

net

and there were

group

2.57%

bid.

Co.

five additional bids

Harris Trust &
a 2.7886% net

and

Savings

was

First

the

made by the Northern

was

Trust

Welfare

Vice-President of Chase

.Of

! t-,

■■

Manhattan.

Bank of Oregon;?

Slightly

York; and First National Bank in John Nuveen & Co. and associates.
Dallas.
■

Other

Reoffered

in
for

1972
a

coupon

of * the

successful syndicate include

dollar price of 99%

2.80%

yield from 2.50%

members

maj or

Bache

Co., Bacon, Stevenson & Co.,

NOTES

N ST A

The markets for toll roads,

toll

bridge, port • authority and public.,

SECURITY TRADERS ASSOCIATION

OF CHICAGO

utility revenue issues are general¬

1978, in¬ First of Michigan Corp., Reynolds ly down from a week back. The
Commercial and Financial Chron¬
& Co., and Rauscher, Pierce & Co.
icle's revenue bond yield index

vestor and bank demand has been

averages at 3.54%

against 3.50%

larwise the market
fourths of

service your accounts

ous

■

•

.-/j'jV-r

\
-yi'.

% 7. »

■ \( s>

jr,(

C. , {i:
: \.

■

;

<-■>

.»
;

fJziri \n \

; P

•

off three-

index.

The

Florida

obvious

are as

changes in the list

our

was

ago; Dol-

point for the 23 vari¬
long term issues utilized for

our

Iquickli|byIusing

Jan. 23,

week

follows:

Turnpike

4%s

three-quarters to-. 107%
nois Toll 3 %s down

down

bid; Illi¬

three-quarters

97% bid; Kansas Turnpike 3%s

W; Raymond

Leonard J. Wolf

J. P. O'Rourke, Jr.

Dixon

down

three-quarters to 84% bid;
Maine Turnpike 4s down 1% to

John P. O'Rourke,

101%

Bank & Quotation

President of the Security. Traders Association of Chicago.

bid; New Jersey Turnipke

3%s down one-half to IOIV2

Record

Jr., J. P. O'Rourke & Co., has been elected 1963

New Vice-President is Leonard J*

bid;

New York State Power Authority

Co.

Wolf, Jr.; A. G. Becker &

Elected Treasurer was William R. Dixon, Goldman, Sachs &

3.20s down three-quarters to 97%

•

year

(Single Copy

—

$4)

Co., and Secretary, Arnold P. Wolter, Dean Witter & Co.

bid; .Pennsylvania Turnpike 3,10s
down three-quarters to 96% bid;

Virginia Toll 3s down three-quar¬

(Only $45 per

Barth, Dempsey-Tegelet & Co.; Frank X. Cummings, Bear, Stearns

ters to 97 %

This bound publication will give you the monthly

down

bid; Tri-Dam Project

94%

bid;

all

listed

securities

well

those

bid; and Port of New York Au¬

thority 3%s down three-quarters
"hard,

find''

Over

the

Counter

to 97%

quotations*

bid. Most of these

tions

appear

these

issues

in
Write
-

WILLIAM B.
;

DANA

REctor 2-9570

technical

previously been

the vanguard

the city's financial community.
CINCINNATI STOCK & BOND CLUB

Club, are

of the market's

follows:

Cincinnati Stock and Bond

•;

President, W. Patrick Garrard, C. J. Devine & Co.; 1st VicePresident, Thomas W.

Tritten, Harrison & Company; 2nd Vice-

President, Harold Roberts, John E. Joseph & Company; Secretary,

FALLS

Sachnoff, Cook Investment Co*

Established in 1926, the association has about 350 members in

had

Manna Financial Branch

CO.

Nathan M. Sjlberman, Straus, Blosser

The new officers and directors of the

•'.. V-A v • ' <:

25 Park Place, New York 7, N. Y.

are

correc¬

upswing.

call:

*■■■

& Co.; and Morey D.

Oklahoma

Turnpike 4%s down 1% to 106%
prices

Directors for 1963

McDowell; James Vacha, H. M. Byllesby & Co.; Edward N.

CHURCH, Va.

Financial

Planning

—

William L. Barth, J.

Directors: James F.

Manna

Corporation

Little

Robert

agement

St.,

under

the

man¬

Harry Lee Franklin.

Moriarty, W. E. Hutton & Co.; John Froeh-

lich, Walter, Woody & Heimerdinger; Robert L. Conners, Robert

has opened a branch office at 210
Falls

L. Barth & Company; Treasurer, Robert A.

Conger, . Westheimer & Company.

Conners

& Company; John Armbrust, Pohl

& Company, Inc.;

Reis, Seasongood & Mayer, and Richard Hoefinghoff, L. W.

Hoefinghoff & Company. *,•

•:

•

The

Number 6232

i^oj-ume 197

:5.;

v- v

Commercial and Financial Chronicle

rise

Schapiro compares* performance • and outlook foe major

margin

loans and investments is running higher in New York.

Speaking before the - Boston Se-

up*

cuYityi^ArialystsiSociqtYTJ^
d^y of this week, •■Morris:';A;:J3cha^^eU^*:dom^
i h-v

»M.'

;

A-

such

that

S0ha-;

plans

Schapiro said

essential

make

Inc.", compared' and of stock transactions of marl-.
performance
"and
of

•

agement.
DIVIDEND

NOTICES

Morris

banks

1963.

banks

increase

est

COMPANY INC.

earnings

Company, at a
this day, declared

Entering

deposits

the

of 16

these 18

banks, based

reports,

call

total

year,

new

domestic

offices-

cents

6% above the

New

York

1963

stood

24.4%

or.

pared. to $11,600 million,

Executive Vice President

and

January 18, 1963.

out th^t

by the

the

increasing

York

banks

volume

common stock

figures for the-West. Coast banks

applicable

dend of.
cents

cause

per

1963,

is
>

in 1957/

earning at

;

stockholders'' money^!

CENTRAL AN6

Mr.

substantial growth
'

bank

credit

public

sources,
rate

the

60's

50's.

in the

use

citing

the

expansion

7.4%
so

far

compared to 4.3% for

Monetary policy will be

New

k1 ^

>• v

anticipates
tion
:

York

Federal

reduce

the

commercial

that

quired
time

and

bank

Reserve
cash

banks

maintain

savings

analyst
ac¬

SOUTH WEST
_

are

re¬

their

deposits

from

4% to the present statutory mini¬
mum

of 3%..

;

On. January 16,1963 a quar-V;.; terly dividend of 50 cents per
share was declared on jtlidCorporation's Common Stocky
payable March 8, 1963 to

will

not

slacken

compe¬

NOTICE OF

investments

remain

Generating Company

L. H. Jaeger,

Southern Services, Inc.

Vice President and Treasurer

COMPANY
\\ V

dividend

■

C ■ '*<:

declared

<00 Fifth Annua

no; 62

the

company's

shares of
able

per

1963

February

Hv f. ABY,

31,

The

1963.

divi¬

dends, each in the amount of

the

change

dividend

company's

policy—with payments on a
rather

quarterly
crease

than

basis—and
in

the

RICHARD

Dividends aggregating

33/,»%

Stock

Preferred

Railway Company of the

San Juan, P. R.

3,000,000

Date of
Amount

five

century
mon

15, 1963

Feb.

May

15, 1963

l'/4% (25$) Sept.

15, 1963

Aug.

seventy

cents

represents

and

uninterrupted

stock by

marks

an
a

payments

increase of

quarter
on

the

com¬

Panhandle Eastern Pipe Line Company.
WILLIAM

15, 1963

15,

payment

per

of business on:

l'/4% (25C) Mar.

dividend

dividend
cents

28,1933

Record at the close

Payment ;

f'/4% (250) June
A

Record February

Declared January 21, 1963

This

Southern

value of $20

share have today been declared out of
1962 earnings, payable as follows:

in¬

1963

KEEFE,

Vice President & Secretary

15, 1963

(70()

per

without

par

Panhandle Eastern

value

MANNING
■

par

per

semi¬

dividend rate.
deY.

•

To Stockholders of

Consequently, today's dec¬

Payable March 15,1963

•

NOTICE

New York, January 22, 1963.

12j/2 cents per share.

laration represents a

Secretary

Quarterly Payment

55* per

Company
DIVIDEND

transfer books will not close.

1962, the company de¬

Increased

•

stock

two semi-annual

KWKWSSK<

Railway

stockholders of record Janu-

Kary

March 12,

of record

February 15," 1963.

Southern

stock, pay-

20,

•

outstanding

common

February

stockholders

COMMON STOCK DIVIDEND NO. 100

quarterly dividend

81 cents

New York 20, N. y.

1963,

per

the Common Stocky payable

Secretary

January 15, 1963

the

Common

Stock

of Southern Railway Company has
today been declared out of the surplus of
net profits of the
Company for the fiscal
on

ended

March

record

December 31,

15,
the

1963,
close

Pipe Line Company

1962, payable
stockholders

business

Feb¬

15,1963.

Pioneer
-

J. J.

Long-Distance Transporter and Producer of Natural Gas
•

Serving MIDWEST/U. $.A.

MAHER, Secretary.

keeri, he sard. Changes in interest

>' y-Y

SINCLAIR

ruary

will

The Board of Directors has declared

INCREASED DIVIDEND

tition for its employment in loans
and

Southern Electric

8,1963.

year

and

■

'quarterly dividend of 25$

OIL CORPORATION

annual

Rivalry for the depositor's dol¬
lar

'.■■■ ,:

Dividend No. 129

INC.!

REFINING COMPANY;

reserves

against

the close of busi¬

February 4, 1963.

r common stock

close of business

New

York,

■;

Gulf Power Company

Mississippi Power Company

•

I COMMONWEALTH OIL

clared
The

Cox, Secretary
January 7th, 1963.

stockholders of record

economy.
■v

net
,

geared to the rising needs of the

;

of record
ness on

TRANSMISSION

SCHEUERMAN

The Board of Directors today

by both private and

annual

•in the

decrease

be¬

corporation

Schapiro predicted further

payment was

Debentures

Georgia Pow er Company

HOUSTON, TEXAS

record

WilmitigtofaV Delaware

Bank Credit's Use to Rise
-t

"B"

through;

Secretary

banks this year are earning at the
rate of 10.70% on $1,625 million
of

1963. No

Serving the Southeast

Alabama Power Company

Sincltnri

rate

Dec. 28. Trie California

will

THE SOUTHERN COMPANY SYSTEM

quarterly dividend of
40 cents per share on the out¬
standing shares of common
stock of the Company, payable
on March 6, 1963 to holders
a

the

per

9.40% on their stockholders)'
equity, - $3,825 million, as pub¬

lished
t

Exchange

1963.
The
be paid
to

clared

payable February 28,

stockholders

January 31, 1963,

now

for

Corporation's Common Stock. This

LEROY J.

.of

York,

$8.53 in California. The New York
are

6th,

substantial

twenty-nine and one-half

(2914c),

/dividend
-

are
currently
Mr. - Schapiro
at
i$n.40 in New York compared to

banks

the

earnings

stock

Class

the

regular quarterly divi¬

taxes,

I estimatedv by

net

(INCORPORATED)

The Board of Directors has de¬

January 16, 1963,

declared

$l*,000f Dfloans arid1 irivestriteiits/ after■'

total

THE SOUTHERN COMPANY
de¬

and

Corporation at its

meeting held

•

fixed

payable

the

W. W.

and South West

put-as 3.49% in-1963, 3.48%
2.57%

payable

February 18th,

TJie profit margin

has

February

the

declared

New

arid

3.31%,; from 12.22%; last year1 and.
•148% in;1957v-The correspondingB

Secretary

The Board of Directors of Central

ments iri ordet .to 'break* eveii to

out

after

income.

Dividend

the

time

in 1962" arid

1962,

year
and

ort

ness

savings funds will raise the yield
required
on V loans
and
invest/

•were

stock

dividend

higher interest paid

New

Vice President &

1963.

Plaice, New York 5, New York, 10th Floor
•

com¬

H. G. DUSCH

the close

February. 8,

Coupons (Payment No. 67), and

dividend

capital

in California. Mr. Schapiro point¬
ed

COMMON DIVIDEND

January 15,1963.

clared $50 the amount payable on Class "A"

Secretary

Debenture

50.6%

7,/

COMPANY!

RUBBER

GREEN BAY & WESTERN
RAILROAD COMPANY

million,

deposits

1963

Limited

stockholders of record at the close of busi¬

$8,900

total

business

The Board, of Directors

City, time arid

V,v

franklin k. foster. Vice President &Secrelarb

I *; J.! F. ;ifcCARTHY, TrOuur#

savings deposits at the beginning
of

Mining

shareholders of record

for. payment
1963 to share¬

average

figure for 1962 of $56,153 million,
Mr, Schapiro said.
In

H. W. Balcooyen,

$3,270

^ * * •'

■,

dividend of
1214c per share on all Common Stock outstanding payable
February 15y l963 to stockholders of record at the close of
business February 1, 1963.

A* Dividend of- seventy-five cents

holders of record at the, close
of business February 11, 1963,/

.million,

dividend
share on the

per

11,

the Dec.

were

"•*"

/iGOODAliil®

($.75) (Canadian) per share has been
declared on the Capital Stock of this
Company, payable March 11, 1963,

Common. -Stock

March
•

S A-'i-*' *2. & t "*

earnings of the California group
declined.

Hudson Bay

tfier
meeting held

while

NO.

and Smelting Co.,

The Board of Directors of

showed a. mod-*

group

•

The Board of Directors has declared a quarterly

100 CRURCH STREET, HEW YORK 7, H.Y.

1962,.the New York

March I,-j963.

DIVIDEND

for the California banks ;

JOHN W, BRENNAN, Secretary & Treasurer

POWER

t:
4 % for the New York City banks
and

■■

United States Pipe and Foundry Company

FOREIGN

forecast/

earnings^:

March 11/1963 to stockholders of record February 15,
-

The transfer, books will remain open.

AMERICAN &

increase ct

Schapiro

record

to stockholders of

Cali¬

fornia

\
1 ' *

Company

Vork; N. Y„ January 18, 1963
The ,Boa:d of Directors this day declared
a
quarterly dividend of thirty cents (30c)
per share on the outstanding Common Stock
of this Company, payable March 15,-1963,

s e ve n.

and

DIVIDEND

At the same meeting the Board also declared a quarter y divK>
* " dend of 65c per share on' the (Common Stock' payable on
'

}

■

City-

leading

>COMMON

New

If major

with

March 11. 1963 to

NOTICES J

Unitcdl Spates Pipe and Foundry

banks in New

•

per

Convertible

„

prospects

York

Cumu.ative

;-JapuAry 22, 11)63;!
DIVIDEND

$4.40

1545*J

..."

<ri Service Com¬

stockholders of record February 15, 1963.

•

office Cat

branch

Collins Avenue.

the

oi Cit

quarterly dividend of $1.10

Preferred Stock payable

BEACH,• Fla<-~r* Godfrey,
Etamilton, Taylor & Co., Inc., has-

adequate disclosure;, to stockhold- ;.~
ers of how 'trieitf bariksffareJHoThgV^*:

p* i Y

Jyf0V/ Br&licll OffiC6

opened

Directors

declared

pany

■

bank' officials, Mr.

bankihg firm,

DtVIDEND^'NOTICE
The Board

MIAMI

Speaking-of 'stock options for

t ment

e s

Cities Service Company

Falls Building, finder the manage¬
ment .of Robert Alexander, '
:

Taylor & Co. Opens

rates, if any, are likely to be

piro, President of the New York

Labouisse, Friedrichs & Company
has opened d. branch office in the

Godfrey, Hamilton,

after-tax profit

even though

NOTICES

PREFERRED DIVIDEND

California banks. He predicts their earnings will

4% and 8%, respectively, in 1963,

111

MEMPHIS, Term.—Howard, Weil,

ilSeen for California Banks
New York City and

DIVIDEND

Howard, Weil Branch

Faster Earnings-Growth

Morris A*

(399)

.'■■..'.V.,'-'.

it*

112

The Commercial and

(400)

FinancialChronicle^.;*. ..i. Thursday, January; 24, 1963

the

MR. CACKLES

Wharton

and

Commerce.

March

Security Dealers Asso¬

ciation 37th

Annual Dinner at the

Waldorf-Astoria

FROM THE NATION'S CAPITAL

Finance

29, 1963 (New York City)

New York

BEHIND-THE-SCENES INTERPRETATIONS

School

Hotel.

April 3-4-5, 1963 (Dallas, Tex.)
Texas

Group Investment Bankers

Association

Letters military personnel pay raise total¬
ing about $885,000,000.
are already streaming in to var¬
ious members of Congress from
Expenditures for Space
the "average man" approving the
Program Soaring -* *
proposed tax cut requested by
Many new and fast growing
President Kennedy.
WASHINGTON, :

constitu¬

However, most of the

Congress is

if they thought that

going, ttf be forced

Section April 25.

American

Public

the

April

before

gets

possible, for

He would like, if
of

team

astronauts

our

Grand

be living

for the next four or five years. It

Even Secretary of Treasury

000,000

1967

balanced budget before the

income

our

continues

behind

our

Aeronautics

$305 billion on April 1, 1963, Will
again have to be changed by Con¬
gress this year, Under: present law
the

in fiscal 1963

knows where

one

he's

me,

nual

NO-account executive!"

pollution

the

curb

our

recommendation

programs.

the face

with

apparently

tongue in cheek, insists that it is

going

deficits

able

without

finance

causing

flationary

conditions,

correct, it

agricultural payments for 1964.

real professional fiscal

the public debt

for fiscal 1964 is estimated at more

than $10,100,000,000 or 6 cents of

Federal

ational

Rate Indicated

juggling.

seashore

Extension of 52%-Corporate

in¬

this

Mr.

Kennedy

outlined

appears

certain

Congress

will carry out his recommendation

Kansas

>:• V

Roof

City Security Traders As¬

Garden

tinental.

.>*

(Kansas City, Mo.)

sociation Mid-iWinter Party, on the

pur¬

Jan.

Winter

(Houston, Tex.)
Stock -Exchange

Meeting

other

were numerous

ommendations such
000 program to

as a

rec¬

$500,000,-

assist urban areas

aton-Lincoln

Sher¬

Tax

dollar.

This

$300,000,000 more

(Boston, Mass.)

8, 1963

Boston

than it is costing the current fiscal

Securities

Traders

Asso¬

Administration

47%, and extend certain excise tax
Clamor for Economy to Mount
;

rates through

July 1,1964.,

grams

may

that loan pro¬

be increased for the

town

guests will be given at the

Parker House the

construction of housing units for

Feb. 20, 1963

elderly persons and for low and

Security

Mr. Kennedy said that out¬ mendation, every individual pay¬
lays for fiscal 1964 would amount: ings a Federal income tax would be

moderate income families.

New

covered,4 but those in the lower

the

bracket would be affected most.

will'be approved by Congress this

his budget message

to Con¬

Congress follows his

recom¬

gress,

about

$98,800,000,000; while the

tax income would be
000.
a

$86,900,000,-

This would mean, of
course,

deficit of $11,900,000,000.

Already there

daily

demand

quarters on
Capitol Hill
that the White House back down

some

for

of the

about
vidual

recommendations

funds,

reduction

and

it
in

corporate

serious

both

]J. As "previously expiained^ln

indi¬

taxes.

The

tax

Executive

There

question,

but; the

Many securities, if not all of them,
be affected
directly or in¬
directly by the proposed expendi¬
tures the next fiscal
year.

The
for

President

asked

$56,000,000,000

Department.

600,000,000
rent

fiscal

Congress

The

Congress

for the Defense
amount

$2,-

than for the

cur¬

year.

very

Nevertheless,
likely to trim

this figure to about
what it made
available this year. The

major

difference in the current Defense

Department expenditures for fisral 1963 and what
is proposed for
the next
year is a recommended

1964

reduced

by about $5.3 billion. On the other
visers

the

confident that because

are

would put

cut

the net

economy,

tax

zing
loss

would be substantially lower.
A

country.

will

The

fiscal

hand, the President's economic ad¬

period,

said

would

revenues

clamor probably will grow.-..v-"-.-:-:,.:?;;s the tax

proposed budget expenditures will
affect the economy of the

three-year

Chief

tax

recommended, would

program, as
cover

the;

the ^ president's

press,

few

President

President's

year,

but

recommendations

York-- Investment

of-the

committees

are

^preparing; to start hearings .soon
on

.■

various proposals.

the

Section

Sept.

Juiy 11.

22-26,

(Colorado

1963

Security

Asso¬

Broadmoor Hotel.

CHRONICLE'S Special Pictorial

Supplement Oct. 17.

Traders

Attention Brokers and Dealers

TRADING MARKETS
Botany Industries

an¬

Indian Head
*Maxson

winter

Bellevue

Mills

Electronics2 L

Official. Films

Association of

annual

Traders

]||||

Waste King

din¬

Stratford

Our New

York telephone

number is

CAnal 6-4592

March 10-15, 1963

(Philadelphia, Pa.)
Institute

from the nation's Capital and

may or

coincide with the "Chronicle's"
,

Association

CHRONICLE'S Special Pictorial

Hotel.,

the *"l>ehind the scene" interpretation

own'views.f

Philadelphia

Investment Traders

XThis column is intended to reflect

may not

ner

(Chicago, 111.)

Bankers

Municipal Conference at the Pick-

Congress, Congress will r not; be
fully organized for several weeks, Philadelphia
some

Investment

good : many of them Feb.
21, 1963 (Philadelphia, Pa.)

will,be sanctioned during the 88th

but

Association

bowling'' tournament; at the
Pennsylvania Lanes. •
]

nual

As¬

day,

same

(Philadelphia, Pa.)

Traders

apparent that not half of Association

Dealers

ciation Annual Convention at the

to try and solve some of their mass
ciation annual dinner at the S'tattransportation problems, and raise
ler Hilton. A luncheon for out of
the authorization for the Housing

corpo¬

June 19-21, 1963

National
Feb.

rate tax rate until at least Jan. 1,

to extend the present 52%

Securities

sociation Spring Party.

Springs, Colo.)

Hotel.

1964, when it would be, reduced to

every

amount is about

Club, respectively.

the

Board of Governors at the
There

Park

Congress Hotel.

28-29, 1963

Firms

the Hotel Con¬

•

Association

President's Program

things in his two important; mes¬
sages to Congress—the State-ofnow,

Nashville

Jan. 24, 1963

great fallout shelter

Legislative Outlook

many

the-Union and the Budget. As of

i-.''

Sheraton

May 16-17,1963 (Nashville, Tenn.)

property that has recre¬
y

Mutual

Country Club and Belle

Meade Country

Federal Government of

,•

annual con¬

Dealers annual spring party at the

possibilities.

43rd

the

Hillwood

for schools, hospitals, and

program

chase by

the

any

Authorize

Association

Savings Banks

May 16-17, 1963 (Nashville, Tenn.)

jis requesting $1,000,000,000 less in public buildings; authorize.

going to take some

The interest

Secretary

deficits, the f Agriculture Orville Freeman, who

the

Administration,

the ; Palmer

Nashville Association of Securities

Provide Federal grants to help

Meeting

Hotel.

Federal funds in the air pol¬

year.

Association

Bankers
Governors

convention

ference

streams, and increase the amount

what the

see

drop to $285 billion.

National

;

Sulphur

May 13-15,1963 (Washington^. C.)

•planets -hold fori?mankind. \ The
in the building of medical, dental,
budget for NASA a year from now
Obviously it is too early for the
more
than likely will be sub- and public health schools; increase
Departmentof; the /tfreasufy to ;
substantially the program to train
stantially' greater.
determine how big- a debt limit i
\
-*•1
* .*■/f/fnurses, and provide assistance to
it will ask of Congress later this j
vMany city residents will hail the medical and dental students.
will

(White

House.

but it^is jessentialjvevspend lution control

space,

1963

Financial Analysts Federation an"If you ask

•

going in the exploration of

permanent debt Ceiling- all of the billions to

so-called

the
John

May 12-15, 1963 (Chicago, 111.)

$1,300,000,000 in 1962.

ate

of
the

compared

$4,200,000,000

Of course

$305 billion effective April 1,

Exchange

the Greenbrier.

National

the

8-11,

Board

will drop to $300 billion oil June
25 of this year, and on July 1, the

Governors

Investment

fastest

Space Adminis¬

and

with $2,400,000,000
and

Stock

Meeting

Spring

Springs, W. Va.)

(called NASA) wotild; get
most of the money; NASA would

receive

May

re¬

space

tration

ceiling, which reverts to

billion

Government,

the

expenditures,
Congress will; have to amend the
Public Debt law, The present $308
falling

present

over

growing of all civilian agencies of

Because

(Richmond, Va.)

Marshall Hotel.

$6,100,000,000,

search and technology. The

fiscal year.

Board

increase of more than $2,000,-

las -Dillon holds out no hope for.
a

Firms

in the White House until

He recommended

Doug¬

Ballroom, Waldorf-Astoria

Association

January, 1969.

the present.

hopeless at

appears

in the

Annual Dinner

May 6-7, 1963

the moon and back while he is in

balanced budget again

Association

Hotel.

the White House. And he hopes to

City)

York

(New

Re¬

indication

will have

1963

Traders

New York

whether the Federal Government

As of now, there is no

Association

Bar

26,

Security

to; again amend ■ i'irith6$pace» exploration; prograni.^

Debt

gional Meeting.

dent Kennedy is

around to cutting taxes.

the

April 17-21, 1963 (Syracuse, N. Y.)

upcoming budget for exploration
and exploitation of space. Presi¬
keenly interested

perhaps would be surprised

CHRONICLE'S Special Pictorial

industries will be affected in the
ents

Convention

Statler Hilton Hotel.

the

Investment

vania— sponsored
ment

University
Bankers

Banking

LERNER & CO., Inc.
Investment Securities

Pennsyl¬

by the Invest¬

Association

and

10 Post Office

Square, Boston 9, Mass.

Telephone

Teletype

HUbbard 2-1990

617 451-3438

Kennedy's

additional legislative requests in¬

cluded

Major Pool

Raise the existing annual
$600,000,000 authorization for the Alli¬
ance

Equipment

for Progress

by $100,000,000;
$50,000,000 payment
this country's share of an in¬

authorize

crease

Bank;

the

extend

Inter-American

for

five

years

the

Export-Import Bank, and increase
its authorization

Provide
aged

medical

(there

citizens

over

increase

by $2,000,000,000.

are

care

now

for

the

17,500,000

65 years) by a further
the

Social

Security

tax; step up the.program designed

Corporation

Carl Marks & Ho. Inc.
FOREIGN

SECURITIES

Bought—Sold—Quoted

SPECIALISTS
Annual

y\/" ;

20 BROAD STREET • NEW YORK 5, N. Y.

TEL: HANOVER 2-0050

J: .v'-

Report available.

request

TELETYPE 212-571-1683

HILL, THOMPSON & CO., INC.
70 Wall Streat, New York
Tel. WH 4-4540

5, N. Y.?

Tele. 212 571-1708

Full text of Commercial and Financial Chronicle : January 24, 1963, Vol. 197, No. 6232, Section 1

FRASER