Full text of Commercial and Financial Chronicle : January 26, 1961, Vol. 193, No. 6024

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Volume

New York

6024

Number

193

7, N. Y., Thursday, January 26, 1961

Editorial

Price 50

Cents

Copy

President
;
:

;

Kennedy after the usual round of celebrations
incident to his inauguration must now face the manifold
and difficult problems by which the country is faced. He
has had exceptional opportunity to learn through the
close cooperation of the (outgoing Administration what

Evaluate Its
In articles

dividuals

likely to be henceforth. Hb probably is,
therefore, not surprised that the task of serving as Presi-

j his days
■

are

dent of the United States is

much

■

capital and

But the
it

The

statements ap¬

:To

some

extent, the movements

term

Nineteen-sixty
world

adjustments of
these

shorter-

developments it is possible to discern more
changes which are taking place in the major

basic

industrial

areas

of the world.

In recent years, sup¬

ply has overtaken demand, capacity has overtaken
order books. During the war, and for more than a
decade afterward, demand seemed
almost insa¬
tiable. In part, this demand stemmed directly from
real physical shortages of
goods; in part it reflected
exaggerated or inflated view of those shortages
accompanied by an expectation of rising prices. As
an

FLEMING

inevitable, business enterprise all over the
including Canada, pressed forward almost
feverishly with plans for capital expansion and
was

well

the United

new

The processes of

States.

problems

created

adjustment

environment.

Adjustments, some
still continuing took place in Canada

are

of adaptation to

was a year

economic

of which

for many

dian

sections of the Cana¬
community, but as the year
to

came

that

the

need

clear

was

for

adaptation

being successfully met and

was

there

ment.

the

Despite

dian

and

manipulation supply possibly the most ef¬
fective weapons against recessions, but the President
and some of his advisers have taken pains to let it be
known that they are well aware of the balance of pay¬
ments difficulties of the country and the consequent
loss of gold. Presumably, they are equally aware that
this situation tends very strongly to limit their freedom

Economies are already in process
adapting themselves to this situation, and we
can be confident that it is
temporary and will dis¬
appear.
Capital expansion will be resumed and

the Cana¬

countries
resources

the

ago

year

both

United

described

outlook

Canada

tomed.

Hon.

Against

Fleming

prohibits, or at least greatly restricts
looseness, then it places a
(Continued on page 28)

some

than

rich

with

the

have all become accus¬

broad

background Canada on the
faring well. Industrial production
level

in Janu¬

statistics,
increase.

industrial

has

production

shown

For the first nine months of

1960,

Gross National

sive

from 1959.

this

ceased and for the last three months for which we

Indeed, for the first 11 months of 1960 our
exports to the United States actually declined by

did not increase

hoped.

If this situation

blessed

1960, but by mid-year the hesitant decline had

ary,

have

consequence

are

declined somewhat from its record

had

States

Serious Road Blocks

whole has been

optimistic. Some
months later, however, it became clear that the
anticipated rapid expansion was not taking place
in the United States. Canadian sales to the United

/;V'.

that

ours

make

ant influences to which

and

States could

should

But for the time

exports.
A

such

appropriate preparations.
being, these industries cannot be
expected to exercise the same vigorous and buoy¬

records

business

economy

set

they do today.

grewin 1960
in production,
employment, consumption and

credit

recently

appeared some signs of the
temporary state of fairly wide¬
spread over-capacity.
This, of course, is not the first time, although it
is the first time since the war, that the industrial
countries of the .world have experienced a period
of vigorous competition associated with ample pro¬
ductive facilities; indeed, such conditions have in
the past appeared in a far more acute form than

problems

which confronted

have

emergence

the economy was prepared for
further
growth and develop¬

those within its ranks who believe that fiscal looseness

measure

Product, the most comprehen¬
of economic
(Continued on page 18)
——

United

in the

States economy reflected inventory
an
immediate nature.
But behind

world,

is real and deep, it will soon be hearing from some
its most influential political supporters. There are

fiscal

devel¬

new

Canadian Minister of Finance

reasonably certain what the new Ad¬
intends to do about many of the major

of action.

market,

money

and mining industries, and other

gas

DONALD

HON.

problems by which the country and the Administration
are faced. If it does not "do something^ to bring an end
to the recession, which it and numerous of its supporters
say

of the

herewith:

pear

ministration

the oil,

course

present

year

probable trend

expenditures, housing,

of the nation's business life.

aspects

country must await further developments be¬

can

in the instant

economy

consumer

opments in

deal which the facts of life do not warrant.

fore

accurately interpret the

The commentaries discuss the

of key factors, including

prosaic, task than one would have gathered from
his rather highfalutin acceptance speech last summer
with the "New Frontier" as its theme song. His inaugural
address was largely if not wholly in terms quite general
and unrevealing—as most inaugurals are. It may or may
not be particularly significant that he apparently felt it
necessary to provide an offset to the recent propaganda
of the Kremlin, which might otherwise have given the
world in general and Mr. Khrushchev in particular the
idea that the new President could be cajoled into a good

of Canada's

course

their views.

difficult, yes,

even

especially written for THE CHRONICLE, in¬

eminently qualified

Underwriters and distributors of

11,1

STATE, MUNICIPAL AND

CANADIAN ANNUAL REVIEW AND OUTLOOK ISSUE

PUBLIC HOUSING
BONDS

U. S. Government,

AND

AGENCY

NOTES

Dealers in and Distributors of Securities of

Public

Housing,

Federal Land Banks
Federal Intermediate Credit Banks

State and

Municipal

JAPANESE

Securities

Lester, Ryons & Co.

STATE AND MUNICIPAL

G23

So.

SECURITIES

Hope Street, Los Angeles

17,

California
Members New York Stock

telephone:

HAnover 2-3700

CHEMICAL BANK

NEW YORK

TRUST

BROAD

New

COMPANY

York

•

Affiliate:

SAN

Nikko

•

Inquiries Invited
California

•

FRANCISCO

Securities
LOS

Co.

Bond

Whittier

Santa Monica,

OF NEW YORK

TOKYO

Kasai

Corona del Mar,

Claremont,

Riverside, San Diego, Santa Ana,

THE FIRST NATIONAL CITY BANK

NY 1-2759 U

30 Broad Street

Marine Bonds and

and

Development (World Bank)

Oceanside, Pasadena, Pomona, Redlands,

4, N. Y.

Office:

Mortgage Association

United States Government Insured Merchant

Encino, Glendale, Hollywood, Long Beach,

Teletype:

Head

Cooperatives

Federal National

International Bank for Reconstruction

Offices

STREET

DIgby 4-5884

Banks for

Members Pacific Coast Exchange

Ltd.

Telephone:

BOND DEPARTMENT

New York 15

BONDS

The Nikko

Securities Co.,

Exchange
Associate Member American Stock Exchange

Federal Home Loan Banks

Dept. Teletype: NY 1-708

New

York

Southern

Securities

Correspondent

—

Pershing & Co.

THE

CHASE

MANHATTAN
BANK

ANGELES

HAnover 2-6000

Net Active
To Dealers,

MUNICIPAL

Maintained
and Brokers

Markets

Banks

canadian

ESTABLISHED

FOR

CANADIAN

securities

T. L.Watson & Co.

BONDS & STOCKS

Block

New York Stock

Exchange

American

CIVIC

Inquiries Invited

IMPROVEMENT

Exchange

Commission

Orders

Executed

On All

Canadian Exchanges
-

MUNICIPAL BOND

CANADIAN DEPARTMENT

DEPARTMENT

Teletype NY 1-2270

BROAD

STREET

DIRECT

NEW YORK 4, N. Y.

BRIDGEPORT

•

PERTH AMBOY

JflRES

TO MONTREAL AND

Goodbody
.

•

CALIFORNIA'S

1832

Members

Stock

BONDS

Dominion Securities

TORONTO

Co.

Corporation

MEMBERS NEW YORK STOCK EXCHANGE

2 BROADWAY
NEW YORK

1 NORTH LA SALLE ST.

.r'
-

...

v CHICAGO

Exchange Place, New

Teletype

York 5, N. T.

NY 1-702-3 A WHitehall 4-8161

BANK OF AMERICA
N.T. & S.A.

SAN FRANCISCO

LOS ANGELES

The Commercial and Financial Chronicle
2

Brokers, Dealers only

For Banks,

in the investment and advisory

Alabama &

Participants and

Their Selections

field from all sections of the country

participate and give their reasons for

Week's

This
Forum

each week, a different group of experts

A continuous forum in which,

Specialists for over
35 years

I Like Best...

The Security

Electric Storage Battery

favoring a particular security.

—

Louisiana Securities

Robert

Research

Newton,

1961

Thursday, January 26,

(434)

Dept.,

Dodge & Co., Inc., New
York City (Page 2)
Clark,

Quarterly

Comparison of Leading Banks

Co.

Dept., Cl\irk, Dodge &
Inc. New York City

Research

Our 115th Consecutive

and

ROBERT L. NEWTON

Bank Stocks

York Stock Exchange

New

Members

devices.

tery
but

Battery

Electric Storage

surely

of the

Available
;

•"

v'■"1'

New York Hanseatic

WOrth

Teletype NY

4-2300
BOSTON

1-40

Wire

such

tion appear
tric

c o m

o r

The
is
and

States.

Stock

Monthly

20-25%, and autQmotive batteries
30-35%.
Of these percentages, it

The Nomura Securities Co., Ltd.
York 6, N. Y.

Telephone: BOwling Gre^n 9-0187
is

not

offer

solicitation for

particular securities

orders for any

note that the sales

is important to

division,

Ray-o-vac

ac¬

Battery's business. This
has participated in the

division

•

when

last

could do
for new
devel¬

they

the

pave

way

they

Electric

year,

this

mobile

the

neering

packaged

It is in

units for vehicles.
Electric

that

area

Storage

distinctive advan¬
tage over a great many of the
companies now active in exploring
has

Battery

field

the

Electric

cells.

fuel

Storage Battery has an enormous

experience in supply¬

amount

ing

package

Vehicle

Cleveland
With

the

interest

51%

Electric

sources

power

BONDS

zinc fuel
manufacturers of
oxygen

Some

cell.

electric industrial trucks and

Company.

equipment

are co¬

division and more

of the industrial

than two-thirds of the

VIRGINIA

division.

automotive

sales of the
Earnings of

NORTH

CAROLIN

the

SOUTH

CAROLINA

pected to improve substantially in
1961 due to sharply reduced costs

& CO

fw.

closing

diana, and the concurrent
of the Cleveland plant.

VIRGINIA

RICHMOND,

the opening of
at Logansport, In¬

facilities

new

ex¬

are

result

the

division

automotive

greater

power

Electric

Storage

the

and longer life.
Battery is fully

research

emphasis in this field.
obviously not con¬

fined

Texas

Need Hard to Find

such

problems of mobile package power
devices, the basic business of the
company.;
:v:'';'v;/ ';b M''v^

YOU

FIND

WILL

Ltd., with

age

Bank & Quotation

Record
(Only $45

power

per

(Single Copy

of energy are a problem.
say

this

the difficulty in inexpen¬
sively storing large quantities of

year)

electric

$4)

power.

quirements
This

bound

give

you

all

Well
Over

publication

the

prices

monthly

listed
those

will

securities
"hard

find"

of the

concentrated

age for
electric

space
of

sources

the rising concern about
potential health hazards of

power,

the
as

With the new re¬

the

Counter

quota¬

porated
on
July 26, 1960.
Charles

enormous

tions.

poten¬

power sources were avail¬
able, a major research effort is
being placed iP this general field.

package
Write
WILLIAM

call:
DANA

CO.

25 Park Place

New York 7, N. Y.

The

field

devices
of

Si 1 b

very

broad,

consisting

e rm a n,

tbe

top

management,

objective of the corpora¬
this way: ".
to invest
.

principally through the purchase
of equity securities or securities
convertible to equity securities, in
established forefgn electronics
companies which, in the opinion
management, possess poten¬

of the

appreciation.'*

tial

for

The

management

there

are

capital

the
was

ago.

companies outside the

same

that

growth

inherent

possess

potential

many

companies

that

American
a

common

stock

offer

buy,

any

ENCE

that
is

than

Copies

report

are

part

our

EXPERI¬
infinitely
hindsight.

long

worth
mere

Confidential
available as
weekly—
this

now

BUSINESS & INVESTMENT
TIMING SERVICE.

ing

Special, 3-mo. trial TODAY
(Annual Subscription—$60)

pifrchased

was

by European
Some of Europe's most

financial interests are
helping locate the desired compa¬
nies. ' Key
men
from successful
foreign companies are being
hired.

Send $10 for

price

favorable

For

ANTHONY GAUBIS & CO.
Investment Counselors
122 E. 42nd St., New York 17

example, the corpora¬

tion has just

employed:

An executive of IBM World
Trade Corporation as head of its
(1)

office.

London

An executive from Philips'

(2)

Incandescent Lamp Works, Ltd.

International

Electronics
well

those of
the

prove

who

the

are

m a

for
fascinated by
answer

profit potential of foreign in¬

vestments, but who have some ap¬

prehension because of

lack of

our

knowledge of foreign markets and
managements. The answer to our
problem could be EICL's sophis¬
ticated
ment
dent
of

and

the

dent

successful

and

Mr.

team.

Chairman

and

fund

the

Board

corporation, is also Presi¬
Chairman

net

Cor¬

excess

attractive

means

Quotation Services

growth

record,
management has
been outstanding in the selection
and supervision of a portfolio of
which

Over-the-Counter

This fund has shown

$37,000,000.
most

assets

Board

mutual

open-end

with

the

Investment

Electronics

manage¬

the Presi¬

Salik,

the

for 48 Years

decade publicly owned domestic and in¬

A public offering of 1,600,000

circumstances to be construed

solicitation of

11-page study should he
who

A
substantial
original underwrit¬

amount of the

now

at, $10

EEctor 2-9570

(This is under

released.

companies

held

privately

that poration,

believes

number of established

States

power

hundreds of different products

state the

electronics

packaged

Board,

Executive Vice-President, and

lished

and

Richard

CarlG. Stevens

United

suitable

Chairman

electronics

developed

the

tion

which plans to purchase
ownership
in estab¬

Presi-

Salik,

tial for household appliances that

incor¬

was

management

respected

Electronics

exhaust from internal combustion

engines and the

Anthony Gaubis has just been

substantial

investors.

International

men

sophisticated'

unique
gain

This

licly held foreign securities.

vehicle.

could

tax

capital

other

another way, the
development of electrical devices
in vehicles has been severely lim¬
To

ited by

—

truly

propel

and

advantage,

office buildings and resi¬
dential homes, energy is used pri¬
marily in the form of electricity.
Other forms of energy have their
electric

built

has

vehicles where mobility and stor¬

investing in pub¬

Fund

extremely
management at
in
a
dynamic earnings ratios.

operating

team,

Mutual

proven

plants,

of
IN

written by

group

security I like best is unique.
Electronics International Capital,

greatest markets in the production

THEM

made on Oct. 25,

share was

EICL is not to be confused with

Capital, Ltd.

The

manufacturing

Exchange

Members Neiv York Stock

241st consecutive
quarterly dividend? In terms of
basic engineering design, electric
power represents the
most- con¬
venient form of energy available.
For example, in all stationary fa¬
cilities

QUOTATIONS?

STOCK PRICES

to be most applicable to the

pear

FOR

OUTLOOK

-BUSINESS and

number of systems

Electronics International

its

paid

just

OF THE

type of cell, but in¬

one

investigation of a large
that would ap¬

volves

ANNUAL

ZO APPRAISAL

The

The research is

per

industry, with

that

company

<%® th

opportunities indicated by the
fuel cell and have placed major

and

1960.

Battery. What
frontiers of science

new

with

DIgby 4-2727

of the enormous challenges

aware

Liquid

—

Exports—I mparts—Futures

problems involved. Early last ye^r
the company announced the de¬
velopment of new batteries for
electric
golf
carts
with
much

Lentz, Newton & Co., San Antonio,

of Electric Storage
have

Refined

—

believes

CARL G. STEVENS

much for the basic business

Raw

of real interest to anyone

WEST VIRGINIA

SUGAR

ma¬

This

replacement batteries represent
than half of the total sales

YORK 5, N. Y.

NEW

Battery announced that they
begin development engi¬

age

specialized applications.
Obviously from what has been
said above, the really large po¬
tential market for fuel cells would
be

branch offices

STREET

WALL

Stor¬

terial handling

our

LAMB0RN & CO., Inc.

are

operating in the development and
the solution
of the engineering

seem

at¬

new

MUNICIPAL

oped.
Early

done

been

has

cells

Direct wires

street

battery-powered
Obviously,

much

fuel

economically

NY 1-1557

HAnover 2-0700

Orleans, La. - Birmingham, Ala
Mobile, Ala.

New

believes it has

growth of transistor radios, pow¬
ered toys and a wide variety of
household appliances. Sales

the

tractive

for
mobile Misev "The
application of
quired in late 1957, can be best
this experience to new technology
classified as consumer disposable
can be seen in the, following,ways.
products and have had a notice-',
able stabilizing effect on Electric In 1960, the company acquired a
the

Storage

For

batteries

20-25%; industrial

ment

of the Japanese
economy as a whole.

picture

developed
truck.

far, it is evident that fuel cells
be useful at least in certain

power

the

into

roughly

divide

Sales

following groups:.Ray-o-vac, dry
cells and related lighting equip¬

Digest, and our other reports
that give you a pretty clear

This

United

the

produced

devices

IN JAPAN

61 Broadway, New

broadest

the

that

The company

Exchange

Stock Exchange

New York 6, N. Y.

would

With

fuel.

form

potentialities in fuel cells,

battery powered street trucks are.
receiving greatly renewed inter¬
est.

cell

the

York Stock

Members American

developments in batteries

new

and the

will
Robert L. Newtcn

line
of
any
manufacturer of packaged power

Opportunities Unlimteo
our

the

A fuel

outside

Steiner, Rouse & Co.
19 Rector St.,

battery in prin¬

work

limited

p a n y

producer
has

for

Members New

the

stored

the

age

largest

the

Write

would

Elec¬

S t

Battery.

System

forma¬

r a n s

exist

SAN FRANCISCO

•

Private

Nationwide

CHICAGO

PHILADELPHIA

growth

for

Broadway, New York

(Page

op¬

fact that the'
chemical reactants (fuel) can be
continuously added to the cell.
The
storage capacity of a fuel
cell
could
equal or exceed the
energy
stored by internal com¬
bustion
systems
since energy
only

ciple

The
ingre dients

Stock Exchange

American

cell differs from

pattern.

1920

intriguing

portunity for the future.

the

alter

basic

Associate Member

120

cell offers the most

could, over a
period of time,
greatly ex¬
pand markets
and

Corporation
Established

Texas

interesting to observe jbusiness has been advancing and
an
old well-established company the performance characteristics of
these
that is suddenly thrust into the
products enormously im¬
midst of rapidly advancing tech¬
proved. Beyond the consideration
of conventional batteries the fuel
nology which

request

y.i'i

Newton

Stevens, of Lentz,
Co., San Antonio,

It is always

United States

Bought—Sold—Quoted

Capital,

Ltd.—Carl G.

slowly
the past 10-15
of the battery

scope

International

Electronics

However,

over

the

years

and Trust Companies

number of

times that

many

applications. Advances in one field
may or may not have an impact
on the development of other
bat¬

offer to sell,

security referred to.herein )

ternational
Mr.

electronics

Salik

occupies

companies.
the

position with Electronics Capital
Corp., a closed-end non-diversi¬
fied
s

investment

company

Continued

National Quotation Bureau

same

which
page

,Incorporated
Established

1913

46 Front Street

New York 4,tl.

CHICAGO

SAN

FRANCISCO

Number 6024

193

Volume

The Commercial and Financial Chronicle

(435)

CONTENTS

The Stock Market Outlook
From

Technical Viewpoint

By Edmund W. Tabell,*

US.

Vice-President, Waist on & Co., Inc.

COMPANY

AND

Articles and News

Page

New York City
The

Technical analysis
reach modest
reached

low early in the

contained by a
tinue

Tabell

Mr.

would

relatively

—Ira U.

un-'

contain above average upside

Dow-

the

At the

esti¬
share
share.

the

pany

yield

low

yield
com¬

For

w-J

$30.70

the

1950,

earned

Industrials

ones

share and paid $16.13 in
At an average price

dividends.
level

times

seven

7V2%. To

the In¬
only
earnings
to
yield
a more recent ex¬
sold

1950

use

ample, the 1956 earnings at $33.10
about
1960
of

Industrial

the

were

average

between 524.37 and 458.21
1956 average price-to-

14.9

overpriced

the basis

earnings and dividends
and
at
present price levels, is
discounting
a
rise of at least
20% in earnings in the near future.
of present

Factors Determining

Stock Prices

However, there are other factors
that determine stock prices be¬

dividends.
diverse factors

Actually, the many
that influence equity

prices

much

Copy

Nissen Trampoline

____

Supply

Amer. Int'l Bowling

EVALUATE

Electronic Int'l Capital

ECONOMIC PROSPECTS

Singer, Bean
&

mackie,

HA 2-9000

Direct Wires

Anyone familiar with

Dallas

Cleveland

Chicago

Los Angeles

Philadelphia
St. Louis

San Francisco

Regular Features

little or no
the past few

inc.

40 Exchange Place, N. Y.

Teletype NY 1-1825 & 1-4844

over

As We

can,

See

(Editorial)

Cover

Bank and Insurance Stocks-.'!;

•Vtf-'V-.'

•,

___

O'ft-f

'v..

.■

The

earnings and dividends on
Industrial quoted

first

the

amples

paragraph

the

tremes of

are

influence

confidence,

vestor

;

PERMACHEM CORP.

FOTOCHROME INC.

in¬

IONICS INC.
Einzig: "Will Exchange Restrictions Follow Gold Mining

ex¬

HYDROCARBON
From Washington Ahead of the

ket.

in the

reached

fidence
had

never

tained

history.

siderably
1932,

been

PNEUMODYNAMICS

CORPORATION*

10
*

NSTA Notes

Prospectus

request

V
Observations—A.

Wilfred

Our

Governments

Reporter

May—

J.F.Reilly&Co.,Inc.

—

Public Utility Securities

Broadway, New York 5

at¬
Securities Now

True, prices were con¬
lower in 1932, but in
years

News About Banks and Bankers

market

stock

Funds

Mutual

investor con¬
low
which

previously

recent

several

CHEMICAL

our

that time,

News—Carlisle Bargeron

Indications of Current Business Activity

financial
history.
The
peak,
obviously
enough, was 1929. In fact, the
blind faith rampant during that
period
is
better
described ■ as
speculative
frenzy,
rather than
confidence. What many investors
fail to realize, however, is that
1949,
in
its
own
way,
repre¬
sented
an
equally important
turning
point
in
the
mar¬
of

Ban?"

been

have

both reached

years

Dealer-Broker Investment Recommendations

optimism and pessimism.

were

last

Security

Prospective

Dlgby 4-4970

Registration

Offerings

of depression

and World War were ahead of us.
In

; '

'.' Coming Events in the Investment Field

ex¬

of
its

and

extremes

fidence

and investor

>' ■'

Dow-Jones

the

confidence.

____

ings.

be boiled down
to four. These are: earnings, divi¬

rates

States

create
100% in

but which have doubled in
price due to improvement in the
multiplier applied to those earn¬

broad sense,

money

Cuba and United

years,

and

earnings

dends,

These

was

4-6551

economic trends in Canada.

confidence is of

magnitude

particularly noticeable in recent
years. In fact, the major peak and
the major bottom in investor con¬

market is

times

estimated

times
earnings and the yield was 4.9%.
Thus, it appears that today's stock

200

dividends

ratio

sides

the

earnings

____

Starting-on the cover page, we present the views of
leading Canadian Government Officials, Bankers and
Industrialists as to the probable course of Canada's
economy during 1961. These articles, of course, were ex¬
pressly written for the Chronicle and provide the reader
with
official, up-to-the-minute information regarding

com¬

same

the

$22.99 were somewhat higher.
the Industrials ranged
the

the

However,
in price

WHitehall

BBM Photo

Bullish

ITS

will make

and

same

earnings

and

to Be

____/

com¬

share sell-

and

high. Investor

for the year,

215

dustrials

sell

improvement

example,

Dept.

STREET, NEW YORK

earnings have shown

Edmund W. Tabell

periods in the
past.

equity markets can quote numer¬
ous
examples
of stocks
where

WALL

Foreign Owned Capital

still earning the same $10.00

stock prices.

very

pared

stock

same

variances of

earnings ratio,

when

low

sufficient

high price-toa

CANADA'S LEADING AUTHORITIES

earnings when investor confidence

extremely

and

earning $10.00

approximately
This

____

U. S. Photo

index number. Investor

confidence

___

—Roger W. Babson

ing at $75.00, or only seven and a
earnings when investor

times earnings

3.4%.

Reasons

half times

selling

about

rate

pany

aver¬

age

obsoletes.

Obsolete Securities

truly intangible/ Unlike the first
three factors, it cannot be meas¬
ured by a dollar sign, a percentage

that results in the stock of

In¬

the

big gulps

your

____

______

-—Hon. Donald Fleming

confidence is that intangible factor

present

dustrial

$21.80 a

level of

price
635,

$33.50

around

dividends

it—for

Telephone:

potential and small downside risk.

Jones Industrial average are

and

issues named are believed

patterns over a period of time. A variety of

mated

Cobleigh__>i______

Canada's New Tax Policy

cyclical groups, and anticipates upv/ard price rise in selected
issues that have been slowly building up extremely attractive tachnical

1960

Dollar Fears Unwarranted—Alfred Hayes

for

...

Steel Company Shares

With reference to

purchases

confine

.—Edmund W., Tabell

year's leaders will be replaced by some of the

issues that were last

Earnings

A TASTE

Technical Viewpoint

—sometimes

exploited issues which represent good value, expects the "glamor"

of money

A Tempered View of the

be one of

yet the market's characteristics will

selectivity compared to its pradecessors.

latter,

for the longer range may be

(2)

year;

low of 550-525 to a possible 750; and (3) may con¬

indicated

extreme
the

high in late this year or early 1962, after having

new

Stock Market Outlook From

explains why the D-J Industrial Average (1) may

Security Salesman's Corner

1949, despite the fact that we
on
the verge of the most

—

were

The

first

and

earnings

/two,

and

blue
at

predicting them probably oc¬

cupies 95% of all the time devoted
financial analysis.
The third,

which

confidence,

have

two

investor

have

specialized in

occurred

Continued

Tax-Exempt Bond Market—Donald D. Mackey.

ex¬
confidence

page

Washington and You

PREFERRED STOCKS

S. Patent Office

1868

Park Place,

WILLIAM

DANA

TELETYPE NY 1-5

Thursday, January 26,
Every
vertising

Albany
Nashville

Newark

Chicago
Schenectady

Glens Falls

plete

Worcester

quotation
clearings,

statistical issue — market
corporation news, bank
news, etc.)

Chicago

Office:

111.

135

South

(Telephone

Countries,
Other

(general news and ad¬
and every Monday (com¬

Bank
$45.00

STate

St.,

2-0613).

and
per

New

rate

$72.00

per

Record

(Foreign
of

39
—

Monthly
extra.)

fluctuations

remittances

subscriptions

and

must

made

York funds.

New

W« V. FRANKEL & CO.
INCORPORATED

Postage

the

exchange,
in

of
in

year;

year.

foreign
be

year;

per

Publications

account

Members
per

$68.00

Quotation

year.

Note—On

the

Salle

and
$G5.00

Canada,

1961

state and city
Other

Union,

Dominion
Other

Thursday
issue)

Febru¬

Rates

Territories

Pan-American

Editor

records,
Boston-

Subscription

Treasurer

MORRISSEY,

office

Subscriptions in the United States, U. S.

9576

SEIBERT,

post

the

Publishers

CLAUDE D. SEIBERT, President

second-class matter

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

Possessions,

Members New York Stock Exchange

TELEPHONE HAnover 2-4300

1942,

25,

7, N. Y.

New York

2-9570 to

REctor

GEORGE

ST., NEW YORK 4, N. Y.

COMPANY,

DANA

Company

...

Reentered
ary

Reg. U.

Spencer Trask & Co.

1960 by William B. Dana

Weekly

CHRONICLE

FINANCIAL

BROAD

Chemical

----

WILLIAM

Bzura

the

The COMMERCIAL and

Founded

Published Twice

For many years we

—

major

past
It is highly probable that
equally extreme levels will not
again occur within the lifetime of

future capitalization rates
to
be
applied to earnings and
dividends.
However,
the fourth

J:.—_______

The State of Trade and Industry.

1929 and 1949, there¬

30 years.

priate

and You—By Wallace Streete.

Security I Like Best-

The

eight times earnings

represent

tremes

by analysts in determining appro¬

investor

seven

fore,

rates, is also tangible and it
undoubtedly taken into account

money

factor,

...

yield better than 7%.
The years

The Market

decade in our history,
chip stocks could be bought

prosperous

dividends, are extremely tangible,
and the art of science of analyzing

for

advertisements

BROADWAY, NEW YORK 6
WHitehall 3-6633

Teletype

1-4040

& 1-3540

(436)

The Commercial and Financial Chronicle

lation;

OBSERVATIONS...
BY A.

coming

terstate
what it

SEC,

and

important for
is President
Order

—

variety of

Highly
reasons

Kennedy's Executive

providing for

several

Task Force reports to the
finding of Senator Paul Douglas'

team.

the

Douglas

group's

Securities

The

early workings of the

Administration

ernmental

impact

the

change

unem¬

ployment, the President's order,
citing
the
"desirability
of
strengthening farm prices" calls
for

variety

expanded

quantity

food

families.

The

include

the

allot¬

which
consisted of flour,
meal, rice, dried milk, eggs

ments
corn

lard.

and

The

the

new

officially

time

program

calculated

Mr.

Kennedy's sign¬
ing of the order last Saturday
morning; and is now thrown into
additional doubt by Secretary of
Agriculture Freeman's subsequent
disclosure
stocks

that

will

outside

the

some

have

food

bought

surplus. Neverthe¬

informed

less

the

sources

now

esti¬

mate the cost as about double the

new

appointments

two

processes

Securities

conclusion

and serious
legislation.

buttressed

him,

organizations

Landis'

them

latest

the

that

com¬

*"A

some

with

60,

In¬

generation

bar—and

keep

doubt

this

his

occupa¬

"overhauling" job

such

five

such

projections. It is

believed that he will take
absence

six

timetable will no
the postponements

entail
with

has

of mine

his

from

leave

New

York

The

SEC
In

"Overhaul"

the

event,

any

membership in the
will include
inner White House family.

"overhaul"

Law

Review

Certainly in the top popularity
Secretary

Labor'Arthur

J.
Goldberg who gives such a
strong impression of integrity and
relaxed

major

amiability. This presages
strides
forward
in
his

"Distressed
But

realized

that

the

Secretary's authority is seri¬
ously diluted by (1) the jurisdic¬
the

Service

ing

One of these,

apparently headed
long-term functioning for the
Inner Sanctum, is Myer Feldman,
appointed Special Deputy Counsel
to

the

President.

began

and

the

SEC,

later

first

1946

association
as

assistant

1953

he acted

liaison for the Commission be¬

tween

the

lic

attorney

executive

to the Chairman. In
as

Back

long-time

Truman

Eisen¬

and

hower Administrations. In 1955 he

joined

the Senate Banking and
Committee as counsel,
acting in that capacity during the
"Fulbright Stock Market Inquiry"
and
its
subsequent hearings on

Currency

into

concrete

The

ment

legislation).

Franklin

already
change

adopted

recommended

the

Landis

Report; namely that the
opinion-writing section be abol¬
ished; and that the statement of
each

opinion

assigned

single

commissioner, whose for¬
responsibility it would be to

mal

produce it and under whose

makes

harbor

settlement

John F.

\lso
ap¬

Mediation

the

H. M. Byllesby &

Corp.

Commonwealth Corporation

engaging

securities

busi¬

name

ness from offices at 420 Lexington
it would appear—with provision
matters, including the
for dissenting opinions.
Avenue, New York City.
investigation of proxy pro¬
Incidentally, in the legislative
cedure
("in
war
and
peace")."
Since 1958 he has been directly area, it is interesting that now

securities
1957

be¬

Co., under the

Schmick

and

Arthur

Bowes, Chairman, is a leading

national

banking firm

investment

offices

with

New

Chicago,

York, Washington, and Minneapo¬
lis.

common

participated

merger

stock

actively

is¬

and

Manufac¬

Koppers

Company,

with

companies

Mining

Minnesota

turing

industrial firms

for numerous
has

Co.

has been a principal

years

underwriter
sues

Bolger

Shillinglaw,
recent

and

First Commonwealth

will

Co.,

Bolger

vice-president of Byllesby.

the

Byllesby
would

move

Bolger, President of Shil¬

direction

strike.

Service.

First

the

Byllesby to extend its re¬
and capital facilities to a
broader list of companies, particu¬
larly those in the industrial field.

come

important the coming

pointments

Schmick,

said

enable

and

the

over

the

the manage¬

Byllesby Co.
B.

President,

elections

over

This tri-partite functioning

Commission

(SEC)
has
one
important

of the

ment

administrative

for

Stock

underwrit¬

their

activities under

linglaw,

unfair labor practices, and (2) the
Federal Mediation and Concilia¬
tion

consolidation

Re¬

good look-see at the
of labor disputes. This raises the
workings of jhis
alma mater, the SEC; with an¬ importance
ot
the
Secretary's
cillary consideration of legislative personality, whose extra-legal in¬
proposals.
(He has reported the fluence was so
dramatically evi¬
difficulties entailed in translating
denced this week in the settle¬
informal suggestions by the pub¬
a

Midwest

the

Exchange, and Shillinglaw, Bol¬
ger
& Co., have announced the

Labor

National

Board

CHICAGO; 111.—With a view to¬
ward
expanding their financial
services
to
corporations in the
Midwest, H. M. Byllesby and Co.,
Inc.,
135 South LaSalle Street,

Area."

should

Shillinglaw, Bolger
Byllesby

Joins H.

members

Secretary of Labor

lations

Administrative

Columbia

echelon at Cabinet-induction time

tion

firm.

law

the

The
429.
*

was

expects

completed

usual

that

concern

years."

months,

the

Commission

way"*)

Look

Agencies."
vol.

remarked,
re-evaluate a

process

continuing

tion
to

when

was

came

has

opportunity to

While

securi¬

two

ties experts to

with

cost

not

was

the

This

take

somewhat
and
Ex¬

Commission;

consideration

proteins,
represented
a
de¬

have

ficiency

needy

will

rations

broadened
which

all

for

and

new

eliciting

will

through

revamped

of "chronic"

regulatory

exercised

food

areas

will

sharply stepped-up interest by the
investment community. The'gov ¬

findings of the need for additional
in

given

been

World

in¬

non-gov¬

made

Commerce

missions from the President have

for

forms:

Based

Mr.

governmental

food

have

with

(including employ¬
the Kennedy family).

Thus

"an

expanded

distribution to
needy families. Signed by our new
President on his first working day
in the White House, it gave the
earliest
recognition
among
the
of

program

1937,

financial

who

interests

ment

country."; and thus re-affirm his
party platform's commitment to
costly welfare state-ism?

association

Thursday, January 26, 1961

again with the sort

members

ing

POST-INAUGURAL NOTES
C.

them

man

the SEC. His activities after leav¬

the

determined, non-partisan effort

ernmental

administrator

Kennedy pere in be¬
the second Chairman of

cluded

WASHINGTON

succeeded

MAY

WILFRED

and

Com¬

Standard

Corporation, The Hupp

Corpora¬

tion,

Rockwell

Inc.,

pany,

and others.

total
the

million

$60

past fiscal

lion

expended in
mil¬

for 525

year

above-listed
that the
figure is exclusive of boun¬
pounds

items.
new

And

the

appears

ties to institutions where cost

included

the

was

serving Mr. Kennedy, first as his
Senate
legislative assistant, and

Mr.

thereafter during the Presidential

mission's

director of research.

campaign

Thus,

Mr.

totals.

Feldman's

current

Although such cost hike of the appointment assures toppiest-level
program is substantial, it is
expert
attention
to
securities
not of itself too significant. Much matters.
more important are the facts that
new

the
or

cost, either as a fixed amount
by way of increase, was not

determined

ecutive Order
it

fare

Ex¬

signed; and that
adoption of
expensive Task Force

renewal,

Professor

the

bil¬

additional for
health and wel¬

programs,

compensation,
the

the

recommendations,
lion to $5 billion
urban

time

was

indicate

may

other

the

unemployment

etc.,

suggested

Paul

Samuelson

"group."

The

Return

Veteran

As
Furthermore, it raises questions field of regulatory agencies.
coming implementation of announced by Mr. Kennedy, this
the "New Frontier" program. Does involves a temporary assignment
it
plan "the overhaul" of the
portend
contradiction
of
the to

eloquent and muchquoted inaugural words, "Ask not

Federal

what your

thirties served

ask

what

country
you

do for you,
do for your

can

over

the

extension

the

powers

the

counter

Com¬

the

cover

market

—

directly contrary to his "com¬
promising" position opposing con¬
trol

the

over

both

when

change

unlisted

the

Act

markets

Securities

Ex¬

formulated

was

regulatory agencies.

Mr. Landis back in the nineteen
of

the New

Deal

key architect

securities

legis-

NOTES

NSTA

1934, and ensuingly administered.

The other significant portent of
Crucial Spillover
activity in the securities field by
Extremely important,
and
in
the new President, stems from his
our
opinion completely correct,
bringing James M. Landis back
is
Mr.
Landis'
criticism
of
the
into government service. Follow-^
Commission's preoccupation with
ing his recent "Task Force" Re¬
the quality of issues, in lieu of
port to Mr. Kennedy, in which
mere
disclosure.
Extensive
evi¬
he proposed a major shake-up in
dence of this is revealed in its
the
personnel and procedure of
many
decisions
in
stop - order
the
regulatory units, he is of¬
cases.
Also, it has gone way be¬
ficially serving as a special as¬
yond this, to the point that the
sistant to
the
President
in
the

about

President's

Landis, in his Report, advo¬

cates

Commission
to

seems

now

believe

Securities

Act

SECURITY TRADERS ASSOCIATION OF CHICAGO
The

following slate will be
upon
at the annual
meeting and dinner of Secu¬
voted

President: Morey D. Sach-

noff, Cook Investment Co.
Vice-President:

erroneously

that, under the
the

and

Securities

not

even

the

officer

corporation,

affected

man¬

Gerald

Jr., H. M. Byllesby
and.Company, Incorporated.
Ryan,

and

right of review of
decisions.

agement
most

Elmer

First Secu¬

Company of Chicago.

Secretary:

Act, it possesses the
right to determine who should or
should

Hammell,

rities

Exchange

director

Association of

rity Traders
Chicago:

Treasurer:

Morey D. Sachnoff

Wallace

Boyle, Glore, Forgan & Co.

Elmer W. Hammell

that

seems

have

managements

acceptedUhis usurpation of power
and not challenged it rather than
to

incur the

ili-will

the

Com¬

missioners.

This

represents

other

issue

basic

for

an¬

resolu¬

tion.

"Help" Wanted
Mr.

Landis

maintains

that

the

all-important thing for the agen¬
cies is to get good people, with the
implication that most of the major

surgical operations that have been
recommended

Correspondentsinprincipai cities

than

throughout the United States and Canqda

(This

good.

likewise

will

been

harm

conclusion

strongly stated

sell

large

has

Henry

UNDERWRITERS AND DISTRIBUTORS
OF INVESTMENT SECURITIES

J. Friendly who, as gen¬
eral counsel ot Pan American and

otherwise,
had
extensive
ex¬
perience before the agencies prior
to

his
recent
appointment
as
Judge of the Circuit Court of Ap¬

peals:
cies

Dominick

Members New York, American & Toronto
Stock
14 WALL STREET

NEW YORK

"The

are

sential

cure

are

medicine
their

Marketing Department

agen¬

They are es¬
working of
our
enterprise
system.
We
the

revamping
there

administrative

here to stay.
to

private
cannot

Exchanges

Call...

their

of
no

chest.

prestige

ills

the

structure

panaceas

and

can

Merrill Lynch, Pierce, Fenner & Smith
.INCORPORATED

major
in

—

the

restore

efficiency

70 PINE STREET
138

NEW YORK 5, N Y.

offices in the U. S., Canada and abroad

Volume

Number

193

6024

Commercial and Financial Chronicle

The

Retail

r'v

Trade

Auto

TRADE and INDUSTRY

Price

Production>

for

centers
is

•

the

for:

mary

Index

Food

general

ending Jan.
(000's omitted):

follows

leading, money

week

1961.

New York-

commodity Price index

i960

March

turn

that

orders

the magazine reports.

year,

metalworking weekly

the

current

standoff.

market

Improvement

7.7

from general steel

—

i.iss'.ooo

2.4

offset

tons (*77 7% Vnr

tUeV000'

strength,

shovv the first real upand shipments in

can

over a

+18.4

automotive

The

$16,465,459 $13,910,381

——Philadelphia

ordering is backed

renewed

Failures

Business

against

$29,962,558,916

$27,584,163,963 for the same week
in
1960.
Our comparative sum-

Output

Carloadings

The State of

stand

Production

Steel

Electric

(437)

no/

throueh

Tan

iQfin

P
7n^ Jan'
j960' \
ttJay i#
concludes with
t

„

°a aC r°n o7

WGGk ended Jan* 21U
follows.
Ingot

at)a
'

orders

*Index of

has been

users

2^^ ?n !he

(-146

says

period

tons

Production for

•

Boston-.,—

334,986

855,678

Week Ending

cutbacks from the

severe

District—

The

following

of general

national

business

conditions

summary

and financial

will

appear
in
the
January issue of the Federal Re-

Bulletin.

serve

highs in state and local

new

continued

and

the

gov-

mid-December

Steel ingot output passed the 1.5
million ton mark last week for the

service

contributed

tha°h^Unlwc

Steel Ingot Output Last Week
Highest Since October

indusUnusually bad weather in

ernment

tries.

Industrial production

non-manufacturing industries, although employment increased to

orders

October, Steel magazine said.

would

show

-...

: y

Pittsburgh

Youngstown

' "♦

+•

Cleveland

sharP decline in construction eraThe metalworking weekly estiJJ" ???*rJt
value
of
construction
activity Payment. ; Unemployment
rose mates production at 1,525,000 net !flgnt gain
om.hrs °Y.er
changed little. Reductions in em- 500,000 to 4.5 million, and the sea- tons, a gain of almost 3% abo/c ^rk^t hnc lhiffpd3 bf chariem¬
ployment were widespread and.^sonaUy adjusted rate increased to the previous week's total. That's ™ark(e* kfuSajJ1:"flv frn^ An?1
unemployment increased.
RetaL 6.8% from 6.3% in November.
close to the pace maintained for with emphasis away from
to

decline

December

the

and

declined

credit,
ments,

slightly.
"loans
and

both

Bank

;ih

^^
■ -'
Bank Credit and Reserves
^

invest-

16 weeks last year (July-October)

when

weekly

output

r011ea products,
Pickups in

averaged

Detroit

sales

Buffalo

suDSianuai

f™

North East Coast

Januarv
substantial

njckun

first time since the final week in

WaiifA^afrf™
notes

magazine

Jan.21, 1961

102

Chicago

Cincinnati

St.

Louis

Southern

orders

new

from farm implement makers, ap¬

Western

noted

are

Total commercial bank credit 1,527,000 tons.
increased sharply in December,
Reports to the magazine indi- pliance makers, oil country goods
Total
80.5
industry
yields on Treasury securities and following
little change in No- cate that production is nearing a jobbers, general steel users, and
other bonds changed little; com- vember.
Substantial loan expan- temporary plateau.
This week's for some structural products.
VIndex of production based on average
mon stock prices increased.
sion reflected largely temporary gain will probably be small.
Cutbacks in automotive sheet weekly production for 1957-59.
tax and dividend borrowing by
Inquiries and orders are on the ordering have hit the flat-rolled
Industrial Production
securities
dealers
and
finance upswing
in nonautomotive mar- market,
particularly
for
coldut® industry Reduces Production
Total
industrial production
in companies.
Holdings of
U.
S. kets, Steel said.
rolled
sheet.
Some
pickup
in
For January and February
December was 103% of the 1957 Government and other securities
As automakers push some of ordering by appliance makers has
The auto industry's January
rose

substantially. Between

mid-December

and

mid-January,

with

compared

average

November

and

110

105

accentuated

were

usual.

During the holiday period, output
curtailed more than usually
as manufacturers
sought to curtail

was

further.

Steel

operations, for example,

Member
the

mill

the

serves

weeks

and

year

showed

operations
seasonal
cember

early

January
the

than

rate.

tenth

auto

creases

assemblies

production

equipment

well

and

television

sets

somewhat

from

levels.

has

Curtailment

duction

continued

ary

stocks

for

this

time

Yields
and

new

and

slow

has

early

state

activity

2.15

in, late

country

Prices

Increase

Over

Show
Last

year-end, total pro¬
duction in the fuel mining, utility,

Year

Bank

nondurable

dustries
vanced

ter,

level

while

manufactures

was

below

the

second

output

manufactures
„

down

was

—

the

inad-

clearings

last

showed
.

quar-

tons.
still

ment

u s

nonfarm

d employ-

establishments

cities

Decreases

those

both

widespread

manufacturing

and

last

further upward

PuageA 26 -of
American

Reflecting the close gearing of
to sales and the promise

But

domestic

face

stiff

steelmak-

competition

issue, Steel 22)
and °eC', InnhonrfoH

week

Ward's
jror(j ancj

its

tion totals

eratjon

tion

AAn

foreign trade deficit
n^.

?atfi ^i^week^InTh^^ame

r\r-rr

we®k last year 31,859 trucks
Proctuce<L
tTilln

er f\

Imports

Tlnited
United"

for the

year.

were

topped

exports

The scrap market continued to

improve last week, but the chief

State;
State*

coming

support

from

exports,
exports

Steel's price composite on No. I
heavy melting rose for the fourth
consecutive week. It's at $32.17 a
Sross ton> UP 34 cents.

8.6% above

corresoonding w^ok

Our preliminary totals

2.7

million tons in 1959.

country,

^foA

1961

e«\

< 80'S%) ®

1,499,000

'fJ,.

Production

°f

this
thi

^Tnptrnit

Ward's describ<

nnn

bright spots

Chrysler Div. ass
assembly in Detroit
and
Lincoln
and
Thunderbird

through

production at Wixom (Mich.), the
Continued

4 342 000

Nonferrous metalmen hope cur-

rent prices wiil hold after
of

prices

the

cuts

market

since

has

flood

battered

early

the

month, the publication reported.

are

Primary

pleased to

that

announce

the

copper

producers

cut

Brass mill

prices also dropped, the

KRAFT, JR.

week.

trading department
of

609

S. Grand

announce

that

reductions

offices at

LAWRENCE HICKEY

especially, zinc.

and,

manager

because

prices for tin, lead, silicon,
zinc

The

new

Earlier, the mills had

announced
h lower

pleased to

PHILIP H. BLAISDELL

second across-the-board cut with¬

OSCAR F.

are

their price last week by one cent.

appointment of

industry

have been admitted to
is

sales

•

quiet,

are

doesn't

appear

but

partnership

sweating
in

out whether its latest price of 11.5
cents a pound will hold up. Lead

Ave., Los Angeles

the

our

firm

price

to be in jeopardy;

telephone MAdison 6-6277

Price

•

cutting is still rampant in
No letup is expected
picks up substan¬

aluminum.

until

demand

STEIN

ROE

FARNHAM

tially.
Investment Co unset

ALIFDRNIA

VESTORS

Members

Pacific Coast Stock

•

Exchange

March to Show First Real 7-

Upturn for "Year

March

now

shapes

first month

to show any

provement

The

Iron
the

Age

the

•

steel

135
as

market,

says.

current

South La Salle Street--.

the
real im¬

improvement in

Chicago
January 1,4961

AT1

l,4«z,uuu

n OCT

area

the Detrolt area>

described

year

amounted

tons

2ain over previ-

weeks output
tons (79.8%).
cus

Mercury at Wayne (Mich.) and
j)0jge ancj ijriperial assembly in

week

was

(Wis.),
Ford
at
Chester
(Pa.), Falcon and Comet at Kan¬
sas
City, Plymouth
at
Detroit,

ending

for

Production
Jan

ville

compared

the

Idled all of this week was
weekly Chevrolet car output at Janes/Win

average

on
n

•

week shutdown,

one

with 20,25o last week.. in tne ^a^

based
1

op-

American Motors fol-

-irucK output mis weeKwas es-

percentage of the

1960 over-all productive capacity, instead, and effective Jan. 1, 1961, the output figures
are given as an index of producJan.

GM,

longer relates produc-

industry's operating rate based on
the

declines by
T

said

Chrysler this week were
.

revised iowjng

The

operations.

short

partially* offset*'by rSurn'to

weekly report on the steel industry

and

output dropped to 99,453 units this

stitute has materially changed

formula

downtime

(see Week from 110,808 last week.

Iron

wAoI/winlltr

downward ad-

work weeks for auto workers, car

announced

previously

justment
can
be
expected as
January s^les., trends develop for
the industry.
output

ably show

for

from which it is possible to obtain

weekly clearings

among

ot
of

the

continued to decline in December,
were

car

wire, reinforcing bars, and standard pipe,
Final figures for 1960 will prob-

8.6%

telegraphic advices from

:ities
cities

all

unforeseen
erports will

our

from imported merchant

ate
indicate that for the week ended
Saturday Jan. 21, clearings from
■day,

Employment
Seasonallv

-niet
chief

the

Jan.

Ended

Packard

inventory in preparation for the
spring market but added that

pre-compact year.

Week

Age

Steel Production Data for the

booked

probably exceed imports by 600,000

Studebaker

now

'total tonnage of steel when comsame number of
a

Chrysler

Iron

much as 1,375,000 tons of
would beV"lost" from the

reduc-

the
by

cars

and

drives

Corporation to reduce the dealer

5.5 million

attributed

twin

Corp.

based

10%.

year

"Ward's
tion

°.f 150,000 tons, Steel said. It es- production for 1957-59
year ago.
Preliminary fig- timates I960 exports at 3.2 million
revisecj method of report
complied by The Chronicle, tons and imports at 3.35 million. jng presents the following data:

with
ures

durable

increase

estimates that in

than
they've
m°nth SinCe l3St

Barring

stoppage,

work

and

have

said

service

per-

produced,

the

Steel said.

and

mid-

Week Ended Jan. 21

At the

last

statistical

large

the

compact
The

centage

keing

The outlook for exports of steel
products is
brighter this
year,

ers

Clearings

ordering for
better

much

Commenting

spring.

and

were 1% below the 1960
highs attained last January,
Bank

The

March

the month
than
the
January-February period.

goods
^

sub-

December

January.

rate

business in oil

prices and

increased

inally planned. Ward's Automo^Ve ^eV°rts, said,

of continued

tubemakers
January
T

Some

January

tries, such as textile and rubber
products, have been partly offset
by
further
expansion
in
other
lines.

stock

since

seen

Treasury

between

orders
week—

tonnage.

shaping

-A steel

and

March

last

May.

mid-January,

91-day

Common

stantially

read-

number of indus-

yield

fluctuated

trading

justments since midyear to reduce
inventories in

and

bills

highs

show

Production

and

plates

Detroit

output program has been reduced
to 433,600 units from 450,100 orig-

much better February
goals have similarly
than
and
February, been
reduced to 430,300 from
January
Much of the setback tonnage has 454,200
completions
in
U.
S.
heen booked for March and the plants.

for

jare the largest some pared with the
have

mills

securities

corporate

The

2.30%.

continued

shapes

local

mid-December

pro-

of year.

decline.

for
now

swelling
because canmakers are building
inventories^
finished

government
bonds
changed little on balance between

Industrial output of nondurable

goods

those

demand

goods.<-:/
January
orders,! for

Treasury

plate,

making

automotive

good

out

looks

tin

Security Markets

early Janu-

were

somewhat

de-

reduced

auto

January,

business

recovered

lower

declined

Some
came

Seasonal
factors
are
aiding
other products and strengthening
*ne total market:

excess

previous four weeks.
increased
in

but

part of the

come

the delays in auto steel buying.

dare.

reserves

rose,

earlier

and

taking

are

not

con-

but because they ve carried inven^ory liquidation as far as they

the four

somewhat

early

one-

primary
Output of appliances and

metals.

the

same

sheets

oideied in months not because
they're using steel at a faster rate

re-

excess

for

orders

irjito March, other

slack.
They re coming into the market
for bigger tonnages than they've

mid-December, when bank credit

December

a;. reduction

the

were

Required

further

reflecting

sumers

averaged

over

February

and bars

ending Jan. 11. Borrowings

reserves

De-

Durable goo:s manufactures de-

clined

$740 million
about

were

than

from

recovery

sea-

borrowings from

Reserve

around $90 million and

cut

were

bank

Federal

sharply in the final weeks of

back

The

supply, on
a
daily average basis, increased
$200 million. Seasonally adjusted
turnover of demand deposits declined.

the influence of midmonth storms,

inventories

their

money

rose

Reductions in business demands in
December

than

sonally adjusted

midyear,

Broadway

New York

page

The Commercial and Financial Chronicle

(438)

issue

with

yields

TAX-EXEMPT BOND MARKET

was

The

DONALD D. MACKEY

relatively

Water

Service

enue

and

market

the

municipal

been

state

week. Real
in

denced
on'

the

week ago,

press a

note,

the

to
Friday,

and

climatic

for

except

that

adversity

sentiment

bullish

midst of

Jan.

awarded

ding

;

tional

dent

other

that

the

bond

municipal

market, having successfully with¬

20%

the

impact of

enormous

issue volume during the pre¬

being prepared
higher level of prices. Many
of the dollar quoted revenue is-,'
sues were upped
point or more
during this relatively quiet ses¬
sion. Sentiment at Monday's new
issue syndicate meetings in prep¬

group

aration
sales

for

Tuesday's

exuded

had

not

been

Chronicle's

general

The

high

obligation

Index showed

that

yield

bid

good

events.

deviations

measured

week's

new

some

from

against

the

York

State

sales

issue.

fair bid for the

days,

the

market

bonds
a

sounder
tained

for

The

months.
the

and

Blue

this week's
to

came

Jan.

has

been

not

November;
period

day

market.

Minneapolis-St.

The

Paul

was

new

issue

duced with the

tan

Airports
Commission,
nesota
(1964-1981)
issue

Min¬

total

was

awarded

to the syndicate headed
by Smith, Barney & Co. and in¬
cluding Blyth & Co., Eldredge &

Co., The Illinois Co., G. H. Walker
&

Co.,

are

both
fetch
case

others.

and

general
cities

and

sold

into

managed

was

The

Chase

time

Such

and

Investor interest
the bends
Because

Man¬

tax,

these

interest to
•

dollar

bonds

have

the

recent

Toll

Co.

noted
a

market

were

income

particular

group.

This
issue

Yields

Since Jan.

For

obligation

The

First

Dominick

30%

(State)

Connecticut
New

Rate

Co.,
J.

from

issue

sold.

Maturity

Bid

Ajked

Orleans. La

1978-1980

3.70%

33/4%
3%

1980-1982

3.30%

3.15%

1978-1980

3.35%

3.20%

1978-1979

3.25%

3.10%

1974-1975
1978-1979

3.15%

3.00%

3y2%

1977-1980

3.35%

3.20%

1978-1980

3.70%
3.40%

3.30%

iss u esi 1

a re

from

City, N. Y

January 25,

have

winter

weather

\,r 1V2

conditions

impeded surface travel,

road

revenues

vorable

generally

against

With

Okla

the

year

Belleair,

Florida

1932-1990
1964-1989
1962-1992

1965-1990

2:00 p.m.
11:00 a.m.
1:00 p.m.
3:00 p.m.

1961-1990

11:00

2,358,000
28,980,000

a.m.

1961-1987

2:00 p.m.

1962-1980

6:00

1983-1989

1:00 p.m.

p.m.

1963-1981

11:00

a.m.

1962-1980

11:00

a.m.

1962-1981'

10:00

a.m.

1962-1990

10:30

a.m.

ket

real

fa¬

are

•

market

problem,

the excess bank

conducive

reserve

bond

1,250,000

mar¬

Riverside City Sch. Dists., Calif.__

vestors

already
and

are

that

apparent

institutional

in¬

beginning to resist the

price push,
grades.

particularly

Colo.

>■■■

-,V

negotiated financings

market.

The

Sonoma

County

Water

Flood

Conservation

come

Co.

Control

O'Hare

bonds

via

seem

Charleston, South Carolina.
Pinellas County,

Glore,

Airport

Forgan

9:00

8:00 p.m.

2,720,000

1962-1996

10:00

Noon

a.m.

(Wednesday)
1,000,000

1962-1980

11:00 a.m

6,000,000

Florida....

1964-1988

10,000,000

North Carolina

Texas

1962-1973

11:00

a.m.

1963-1972

10:00

a.m.

2,000,000
—:

12.500,000

rev¬

market

Co.

1,328,000

Feb.
Parma

1,200,000

Feb. 14
Niles

East

(Monday)

City Sch. Dist., Ohio___

through

close to

a.m.

1962-1981

1961-1986

Calif.

Feb. 8

seem

and associates. About

$25,000,000
enue

market

a.m.

2,750,000

Dist.,

$38,000,000

Kentucky Turnpike financing may
soon

11:00

2,000,000

Dist., Mich.

Triway Local Sch. Dist., Ohio
Two

1962-1981

2,300,000

1,285,000

Segundo Sch. Dist., Calif

Minn

a.m.

high
Feb. 9 (Thursday)
v'-'v Minneapolis Spec. Sch. Dist., No. 1,

Negotiated Offerings Close to
Market

a.m.

11:00

;■
-K'-% '?-W'\ 5'
Feb. 7 (Tuesday)
Arapahoe County Sch. Dist. No. 6,

in immediate prospect. How¬

11:00

1962-1981

Feb. 6 (Monday)

activity, further market gains

seem

1952-1991

10,328,000

Milwaukee County, Wis

Roseville Sch.

with

Community

Monroe, La.

1,410,000

Charles Blumberg has become as¬
sociated with Frank C. Masterson

47,550,000
High

St.

School
St.

8:00 p.m.
10:00

a.m.

School

District; New Jersey.—.
North

1962-1981

(Wednesday)

Baltimore, Md.

Charles Blumberg
With Masterson

1985-1986

1,675,000

Feb. 15
Regional

1:00 p.m.

(Tuesday)

and

Clearview

1902-1981

Service

District, Calif

associates.

1,500,000

1961-1980

8:00 p.m.

_____T__

8:00 p.m.

Paul-Maplewood Indep.
District No.

622, Minn.__
Louis, Mo._________

_____

Feb. 16

1,000,000

15,802,000

1963-1981

(Thursday)

Co., 74 Trinity Place, New York
City, members of the American

Cuyahoga County, Ohio
Harrison County, County Develop¬
ment Commission, Miss

Stock

St. Louis County, Mehlville School

Exchange,
department.
Mr.

the

trading

Blumberg

was

formerly with B. N. Rubin & Co.,
Inc. in the trading department.
,

Federman, Stonehill Branch
BEVERLY
man,
a

branch

Monica
ment

HILLS, Calif.—Feder¬

Stonehill & Co. has

office

_____

District, No. R-9, Mo

9884

Dallas, Texas

Nason

3.55%

_________

3.5C%

3.45%

Nason

ties

New

business

Wellyn Road.

from

offices

a.m.

1962-1981

8:00 p.m.

19,000,000

1:45 p.m.

(Monday)
1,720,000

March 8
Los

Angeles

Power,

Paul,

Dept.

Water

Calif

—

12.009,000

10,634,000

Expressway

10:00 a.m.

1,4 (Tuesday)

April 3
ity, Fla

8:00 p.m.

and

Washington Sub. San. Dist., Md.__

Jacksonville

19C2-1980

(Wednesday)

Minn
March

Jersey

Opens

N. Y.—Randolph
conducting a securi¬

11:00

Roxbury Township School District,

Santa

BRONXVILLE,

3.55%

1962-1981

3,000,000
1,225,000

FeK

St.

8,030,0.00

Feb. 20 (Monday)

opened

Blvd., under the manage¬
T. Gray Loomis.

3.70%

3.28%

10:30 a.m.
10:00 a.m.

a.m.

Feb. 3 (Friday)

involves

3.70%

i980

1963-1986
1963-1982

1,715,000

which

1979

1,500,000
1,000,000

___

toll

ago.

tax-exempt

technically in good balance and
Treasury market in good con¬
dition for the February refunding,

1977

Index

11:00

8,500,000

No. 2, Mich.

the

3.20%

1961

points since Jan. 19. Even though
severe

3y4%

1, New York

3.25%

1930

2.90%

1963-1986

ington Toll Bridge 4.90s and other

3y4%

Chicago, 111.

example, Illinois Toll 3%r,

3.55%

1980

3.00%

2,000,000

2:00 p.m.

Central Sch.

3.55%

31/2%

Cincinnati, Ohio

3i/2%

1962-1981
1962-1969

_______________________

is¬

particular
•/

2:00 p.m.

1,925,000
8,000,000

Feb. 2 (Thursday)
1,000,000
Bay City Indep. School District,
Texas
1,200,000
Houston Indep. Sch. Diit., Texas__
14,000,000
King County, Highline Sch. Dist.
No. 401, Washington
1,415,000
Marlborough, Mass.
3,500,000
Topeka School District, Kansas
2,000,000
Wayne County, Livonia Drain Dist.
V V'

have

3 y4%

Calif

shown
1

Onondaga

Abilene, Texas

point.

markets

individual

and

5, New York
of)

County, Texas

Oklahoma City,

re¬

33/4%

Housing Auth. (N. Y., N. Y.)

New York

ran

The

3y8%

(State)____

Baltimore, Md
New

and

Trust

33/8%

(State)
Pennsylvania (State)
New

_____

(State)

Jersey Highway Auth., Gtd.__

Los Angeles.

Yields

3.20%.

(State

District No.

was

were

REPRESENTATIVE SERIAL ISSUES

New York
Vermont

for

On Wednesday, Jan. 25, an in¬
teresting, good quality Southern

California

Dominick
Co.

Northern

Forgan

by Halsey, Stuart &
Lehman Brothers, Eastman
Billon, Un.on Securities, Kidder,
ON

bonds

The

Glore,

MARKET

came

the

York,

Co.,

1.60%

Co.,

order

1.60%

group headed by
National City Bank of

about

the

high grade investment
funds, on Tuesday. $2,350,000 West
Hartford, Conn, general obliga¬

Bradford

headed

from

also

(1962-1931)

about

a.m.

Feb. 1 (Wednesday)

School District No.

Geddes

Kansas;Turnpike 3%'s, Richmond-

high hgrade

its share of

tion

these

strength.

Allen &

syndi¬

bonds

revenue

was

ran

England

$8,495,000

general

Diego,

3.60%.
New

awarded

attracting

rise

11:00

3,470,000

High Sch. Dist., Calif.

Galveston

date. The week previous
3.83% yield average, or

a.m

2:00 p.m.

School

Frankfort, Ind.

Co.

the last

10:30

1962-1981
1979-1986
1964-1986

1,000,000

High

improve¬

Barney &
yield Index
19,

7:30 p.m.

Brookhaven, Smithtown, Etc. Cent.

awarded

were

revenue

period.

Tulare Union

road

Smith,

Jan.

8:00 p.m.

1962-1986

2,250,000

___•

Dieguito Union
District, Calif

over

toll

San

sup¬

excepted

3, New York

St. Bernard Parish Sch. Dist. No. 1,
Louisiana

municipal

market

Bond

porting

been

bond

Road

3.81%

the Eastman Dillon, Union Se¬
curities & Co., Kidder, Peabody

New

(1962-1976)

San

Works

bonds

Cent. Sch. Dist. No.
New Mexico;

vol¬

little

the

and

not

The

ment.

relatively high bidding also came
to market cn
Tuesday. The city
of
Milwaukee,
Wis.
awarded

cate

dollar

Water

(1962-1991)

Tuesday.

half sold at the close of the

the

investors there.

Another quality issue

million

Calif,

for

bid

a.m.

mid-

not

quoted

issues

bonds have

individual

also

Smith, Ark
Lincoln County, N. C
Lloyd, Marlborcugh & New Platz

ever,

interesting West Coast issue

Five

to 3.20%.

the Minnesota

New

Guaranty

usually
was

general and

was

Bank

water

practically all sold.

are

bonds

prices

scaled to yield from

Chemical

against

such

fancy" bids.
this

These

obligation

stands

now

An
was

volume

10:00

1961-1979

1,500,000
4,832,000

Dist., Calif...

Fort

light. The
again re¬

1963-1984

Jan. 31 (Tuesday)
1,000,000
1,525,000
1,500,000

Antioch Unified Sch.

past week's mod¬

heavy

erately

long list of dealers.

planted with forthcoming volume,
at
least
as
yet. The 'scheduled

situation

total

issue

new

calendar

have

Co., Manufacturers Trust Co. and

$2,200,000
Metropoli¬

count

distribution,! Petersburg Turnpike 3.45s, Wash¬

York Trust Co., Morgan

highly rated issues

when

2,100,000

for

according

since

(Monday)

10, Mich.9___

Saginaw, Mich.

during the holi¬

extremely

ume

and

Co.,

lower

even

Wash.___._______

School District No.

ob¬

even

The

3:30 p.m.

Madison, St. Clair Counties Com.

municipal bonds offered
'$339,913,000 as of Jan. 26. It

Trust

first

the

23,

List.

Spokane School

Jan. 30

state and

hattan Bank and included Bankers
Recent Awards

has

inventory

sues

widespread.

buying group
and

than

1961-1990

(Friday)

County,

District No. bl,

municipal
generally

this week,

priced,

strong
receptive bond market is

York

The

stronger

by The First National City Bank of

weeks

lower again
to

and

1:00 p.m,

6,386,000

—

Jan. 27
Spokane
'

1963-1990

Union

Dist., New York

prospect.

condition

1.70%

from

are

state

been

normally the situation for
large, well placed offering.

New

Monday,

Free Sch.

1,300,000

Corp., Ind

Smithtown

re¬

Market

seems

usually perpetuated.

days back.

from

excellent

Sound

them

attractively

job

When

estab¬

week

yield

hands

lished by the large California and

New

groups

large

reoffered

thorough

any

sales, market
has been sharp and
10 to 15 basis points

level

$76,500,000
(1962-1991)

This is

this

issue

bidding

maturities are now being
sought at better than issue prices.

improvement
is

City

Some

frequently deriving from new is¬
sue volatility.
As

with its consequent advantages to-:
the
issuer,
was
accomplished.

gradual movement of the market

sharp

and

immediate

was

issue items, it represents the
the

ranging

Huntington

Despite the heavy volume com¬
pressed< in the last
10
business

investor and institutional response

offerings rather than

than

also

The

this

for

The groups made a

Since this Index involves second¬

rather

yields

4%,

appears

revenue

most

merged for the purpose of making

Thus

new

supe¬

and

dealer

two

market

dealers

was

obligation
to

3.80%.

ary

issue

awarded

York

bonds

market

course

demand

their

largest

schedule.

New

prices

in the

ception

Sch. Bldg.

Bremen

Connecticut

new

3.28%

(Thursday)

Jan. 26

1964
were

$300,000,000.

Tuesday's

grade

bond

average

ran

State

from

important

week. The Index went from 3.30%

about

yields

City's Well Placed

bonds

Na¬

period

always

due

week's

point during the

rise

interest

investors

general

20-year

order

2.85%.

issues

N. Y.

Financial

and

First

of New York,
Co., Inc., and

scale

1.85%

This

last Spring's bull

Commercial

2.25%

The

market period.
The

The

rior marketability.

enthusiastically

expressed since

Co.,

the

utmost

and

headed by
The
Chase

was

Bank,

Maryland
the

important

bullishness

Trust

sold

from

Tuesday.-Bid¬

City Bank
Stuart &

closed.

vious 10 days, was

(1964-1976)

strong underwriters. In this
too, the issue was less than

case,

stood

$20,303,000

keenly competitive. The

was

Manhattan

slowly

23,

involves

bonds

temporarily,, at
have been over-

Maryland

successful

Monday,

Halsey,

for

bids

State

generated activity, it became evi¬

new

large high grade issue

seem

Bankers
As

far

Thus

sold.

been

enthusiastic

absentia.
Bullishness Prevalent

yieid

2.90%.

which

least,

maae

Friday
an
exceptionally
quiet
municipal bond market session in
the

has

Another

record

importance

Thursday

issue

to
little

was

scaled

were

1.40%

reception has been un~
enthusiastic; less than 20% of the

going

After
there

award.

from

investor

Jan. 24, when sev¬
important new issues were

forJ bidding.

bonds

from

Tuesday,

eral

the

won

reoffered

Corporation and others.

the following tabulations we list the bond issues of
$1,000,000 or more for which specific sale dates have been set.

Rev¬

through. 1992 and the bonds

The

was

issue

matures

Securit.es

bond

evi¬
bidding

strength
new

and

issue

Peabody & Co., Stone & Webster

firm throughout

has

bonds

The

1961

with the best bid for $3,000,000

Thursday, January 26,

Larger Issues Scheduled For Sale

for competitively.
Smithers group came

Mobile, Ala.

The

generous

bid

10,000,000

(Monday)1

Author¬

40,000,000

2000

Volume

193

6024*.

Number

The Commercial and Financial Chronicle

decided

A Tempered View of the
Steel Company Shares
By Dr. Ira U. Cobleigh, Enterprise Economist

steel

attraction

The steel industry

selected

half. The

1959

was

has baffled the

ated

steel

116-day strike of

supposed
much

that 1960

such

and

to have cre¬
a
shortage in

demand

pent-up

to have been

was

But it wasn't.

year.

boom

Instead we

learned, in due course, that there
had been a king-size
inventory

before

built-up
that

there

were

abroad

filled

orders

after the

steel

lot

strike;

1959

the

and

during

strike; and that compact

equally with
their big car brethren in the unit
counting, require one - third less
while ranking

cars,

steel

manufacture.

their

(As

substantially
reduced
its
steel purchases in I960.);

total

industry

automobile

the

result,

Thus it was that 1960 which was
humming along at 90% of capacity
by

March, bogged down below
by August and wound up in
with

December
average

steel

dreary

65%

operating rate. The prices
these

followed

operating rates with considerable

fidelity.
Which

brings

What kind of

ing to

now.

steel year is it go¬

How much of tradi¬

be?

tional steel business has been lost

good and all to such competi¬

for

plastics, aluminum and
pre - stressed - concrete?
Is steel
slipping in the importance of its
position in the entire economy?
tors

Answering the first of the above

questions, 1961 should be as good
and may be a bit better steel year
than 1960.
The order should flow

that1 there'll be
less "start and stop" steel produc¬

evenly

tion; the newer and more efficient
mills
should
run
steadily at a
in the ab¬
of a large
urgent de¬
for deliveries in a hurry,
of the more ancient mills

satisfactory
sence

mand
some

and
and

rate;

not run at all, but remain on
standby basis.

may
a

The

What
ments?

Competitive Elements
about

competitive

ele¬

concrete

Pre-stressed

has

the

struction

fective

this

Iron

particularly

plastics

have

automotive

fields.

and

demand.

But

steel

the mills

com¬

About Individual Companies

United

trailers and road
building machinery, extra strong

lehem

alloy weight reducing steels are
being acclaimed. New thinner tin

Steel

(made mostly of steel) weigh
less than their prede¬

one-third

viding
but

Not only is research pro¬
the
mills

efficient

Quite

oxygen

new

plied

hearth

old

the

their

quite effective an¬
competitors of steel,
themselves are get¬

some

the

all

the

fashioned

time.

methods,

ap¬

open

have increased
by
over
30%.

furnaces,
production

baking processes are
efficient; so are con¬
versions of ores.
The building of

Rolling and
now

modern

ultra
the

45%

(like
turning out

times

capacity

been

little

ity",

since 1945.

industry,

the

means
that
could

steel

out

with

annually

each

plant running full blast around
the clock, 7 days a week. Further
such "capacity" relates to the ton¬

(as
a

you

possibility

billion

with

1960

Current

high

these

flexibility.

lower

panded
years

50%

over

and has

strategic location to
Louis

market.

Weirton plant,

the

very

Steel

Bethlehem

Laughlin

sold

above) existing at the
specified calendar year.
sometimes see the ano¬

National

up-trend

paying $3

89%

the

respected

This

announcement is

neither

move

ahead

answer

that the

com¬

has put into production a
plant this year; and this new
facility is not added, to potential
"capacity,"

part of the base for

the

percentage,

next year.

The Steel

neither

steel

stocks

statistical

list

not

book

muster

can

support

values*

the

uninflated

efficiency higher than at
in

time

any

history.

offer to sell

nor a

$4.50

solicitation of

offer to buy these

offer is made only by the Prospectus.

United Financial

Corporation

of California

largest company in
business.
Earnings for 1961
to

steel

650,000 Shares

Capital Stock
■

McLouth

Steejyis a highly re^
garded* and efficiently run spe¬
cialty steel company.
It's tied to
the automotive industry by virtue
of

major contract with General
McLouth

Motors.
over

with

$1 Par Value

by enlargement of stainless

and
alloy business, and a huge
expansion program* ;Qver the past
sift., years.

the

1960

counter

common

until

:•

Industry has recently

lawfully offer these securities in such State.

around $4.40 a share.

Lehman Brothers

Youngstown

the

plan with Bethlehem.
As
country's sixth largest pro¬

Goldman, Sachs &. Co.

Dillon, Union Securities <&_ Co.

Eastman

Smith, Barney <Sl Co.

Lazard Freres &. Co.

White, Weld <Sl Co.
Incorporated

Incorporated

Dean Witter & Co.

•.

Paribas Corporation

ducer the company

is in a position
plant additions and
improvements made in the 195C
decade totalling $591 million or

cash

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

per

estimated

$23.50

Copies of the Prospectus may be obtained in any State only from such of the
several Underwriters, including the undersigned, as may•

sells

around

earnings

Price
tithe

January 26, 1961.

buy

any

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

The

merger

calculating

fine

produc¬

securities. The

fourth

ought

the

price/earnings ratios, and over-all

total

equity

pany

The

leading

en¬

last year. It pays a $2.50 dividend
and

glamor category; but the merit of

solidly predictable

either

can now

only 45%
A

Obviously

Summary

going to replace electronics in the

capacity is

basis

profits

Some

Steel's

joys strong market sponsorship.

There

operation.

capacity.

low cost producer. National
at 81

because

earnings

(companies, not analysts)
show* net

which accounts for

common

net

favor
newer,

ha3
on

new

be?

the St.

serve

This announcement is neither

announcement is

past

levels

the

plants

show

can

analysts

with

Sheet and
Tube
Company
has
been
a
favored
equity, both before, during, and
after its proposed, but estopped

steel mill running at
110% of capacity. How could this
of

maly

made considerable inroads in con¬

This

ex¬

uniquely effective

A somewhat lower

efficient

City has

improvement in the in¬

companies

new

Granite

$1.6

plant addi¬

Investment

year.

plant of marvelous efficiency and

basis,

Jones

the
a

steel

About

figure has been projected for this

Among others Armco has

spent

was

and

1961.

dustry in I960.

dividend

market

138V2.

tion

higher

common.

since it customarily
pays out a higher percentage
of
net than most companies
in the
industry. Bethlehem common at
43 with a $2.40 dividend shows a
current yield of about 5.58%.

and

earnins

for

basis

consistently attractive

yield

ened

figures, have always
misleading. "Capac¬

this

Thus

the

on
now

against

1961

net

companies

here has been substantially broad¬

These capacity,' and percentages

nage

earnings.

been

sells

quote

per

share. The base for earning power

new

try by about 65%

end

capacity of the indus¬

creased the

turned

above

which

the

amount

are

mills have in¬

ernization and

the

prices for the

carry

towards $9 in

S..

common

around

rapid, to cut costs,
profit margins. Mod¬

of U. S. total capacity, U.

points
below the 1960 high. We'd expect
1961
per
share earnings to run

duction

and increase

Beth¬

and

together account for about

dividend the

2,800 tons a day of pig iron) arc
all doing their bit to make pro¬
more

Steel

States

suggest

tion

stock.

common

should

around 45% of its total

is, of course, the
major and magnificent equity in
the
industry.
At 81 with a $3

furnaces

new

at Armco

one

new

more—

product

on
order, that heavy ad¬
stock-piling has become a
thing of the past.

trucks, Mump

swers

any

turn out

can now

vance

back strong by researching
and
producing new
lightweight
metals.
In
machinery,
tractors,

cessors.

of 117,-

fast

ing

cans

inventory

tically for

advanced
appliance

have

steel

any

expect

and nobody scrambles fran¬

year;

Totally these competitors
made a 4% dent in

may

not

000,000
tons
achieved in
1955.
Probably the 100 million ton fig¬
ure
will be
more ; realistic
this

build¬

and

should

the peak production

1961

bridges, trestles, etc. Alumi¬

the

produced will be reported. In

ings
in

will

report

the

additions

share net

these figures.
In¬
stead. the actual tonnage of steel

;

Institute

These

So,, ef¬
American

the

year,

Steel

longer

market

industry.

wasi

confusing statistical tool.

num

ting

;

50%

business projectors for over a year
and

and the possible

capacity, plant efficiency

$170

that this."peri

however,

centage of capacity" figure

event

Notes

(439)

$50,000,000
NOT A NEW ISSUE

January 26, 1961

MontgomeryWard Credit Corporation
54,033 Shares

$25,000,000 4Vi% Debentures, due February 1,1981

The Emerson Electric

Manufacturing

Company,
Common Stock

Price 99%
and accrued interest

$25,000,000 5!4% Subordinated Debentures,
due February 1, 1981
Price 100.50%

($2 Par Value)

and accrued interest
''

'
•

Interest payable

■

•

■

•

•'

■

on February 1 and August 1
7\[ot redeemable prior to February 1, 1969.

Price $55.25 per

Copies of the Prospectus

may

semiannually

be obtained in

any

State only from such of the several Under¬
offer the securities in such State.

writers, including the undersigned, as may lawfully

Lehman Brothers

Copies of the Prospectus
and

the

may

be obtained in

other several underwriters

may

State from only such of the undersigned
lawfully offer the securities in such State.

any

BlythCo., Inc.
Eastman

Harriman

Carl M.

Loeb, Rhoades & Co.

Scherck, Richter Company

Dempsey-Tegeler&Co. A. G. Edwards & Sons Newhard,Cook&Co.

Alstyne, Noel & Co.

•

G. H. Walker & Co.

Glore, Forgan & Co.
Kidder, Peabody & Co.

Ripley €/ Co.

Incorporated

Lazard Freres £sf Co.
Merrill

Carl M. Loeb, Rhoades £5? Co.

Lynch, Pierce, Fenner & Smith

Dean Witter £=f Co.
January 26, 1961.

Smith, Barney & Co.
Incorporated

Incorporated

Stone £s? Webster Securities

Van

The First Boston Corporation

Dillon, Union Securities & Co.

Corporation

White, Weld & Co.
Paribas

Corporation

The Commercial and Financial Chronicle

(440)

Over-the-Counter

DEALER-BROKER

showing
son

stocks

INVESTMENT LITERATURE

used

Averages
counter

the

AND RECOMMENDATIONS
IT

tion

tablishment

Analysis

Securities

ardson

Corporation,

Insurance Stocks

14 Wall St.,

Sons, Inc.,
New York 5, N. Y.

trading

per

Circle

Toweif, Indianapolis 4, Ind.

James Rich¬

—

Stocks

share and above—Pamphlet—City

Canadian Oil and Natural Gas In¬
—

Compute Commissions

Listed

Canada, or 37 Wall St.,
New York 5, N. Y.
Toronto,

dustry

New

Broadway,

copy).

How

Scotia,

Nova

per

business

Canada—Bank

—John

Memorandum

—

Legg

Company,

Analysis — Light Street, Baltimore 3, Md.
Newburger, Loeb & Co., 15 Broad Japan
Analysis of outlook on
Street, New York 5, N. Y. Also economy and industries — YamaiCigarette Industry

stocks

Bureau

issues which

appear

Allyn

Co.,

Street, Chicago

available

analysis of

Industries.
of

Minister

—

Trade

and Commerce, Parliament Build¬
ings, Quebec City, Que., Canada.

Publishing

Industry—R

e p o r

Morris, Inc.

er"—Merrill

York

New

Lynch, Pierce,

Also

ports

issue

same

General

"How

Fen-

are

re¬

Electronics Industry

Also

—

Stocks

Potential

for

Gains—Report

Air

Mergers

Hickey,

York

—

Discussion—Vilas

Broadway,

New

4, N. Y.

Small

Plane

Manufacturers

—

Motor

Corp., 120
York 5, N. Y.

The

New

25
Y.
on

—

Survey

Co., Ltd., 61
6, N. Y
analyses
of

York
are

Limited

(elec¬
Sumi¬

Breweries;

Chemical;

Toanenryo

Oil

Toyo

Rayon;

Company;

Sekisui

(plastics);

Co.

Yoko¬

hama Rubber Co.; and Showa Oil
Co.

Prices

Life Insurance Stocks
J.

—

Report

—

Goddard

&
Co., Inc., 85
Street, Boston 9, Mass.

Devonshire

Dollar Problem—Re¬

port—Draper

Dobie & Company New Orleans Bank Stocks—Com¬
Ltd., 25 Adelaide Street, West, parative figures—Scharff & Jones,
Toronto, Ont., Canada.
Inc., 140 Carondelet Street, New
Also available

report

Orleans

12, La.

New
Problem

—Review

—

Bank

leading New York City Banks
—Laird,
Bissel
&
Meeds,
120
Broadway, New York 5, N. Y.

State

Guide

Market:

stocks

Success

Guide
for

the

Stock

Prices

Business

28th

and

market;

surging

sixties;
orders; tax-exempt in¬
and mutual funds explained

—

annual

weekly

Business

Timing Service—3
subscription $10.00

curity

New York 17, N. Y.

Co..

122

trial

Anthony
42nd St.,

—

Gaubis

East

Bonds

—

Bul¬

Exchange

Review

234

Bay

essen¬

Stock

Street,

all

Ex¬

Toronto

sj;

sjc

4, N. Y.

Schweickart &
York

Inc.—Report—
Co., 29 Broadway,

6, N. Y.

American

Bowling

Enterprises—

Co., 67 Broad Street, New
York 5, N. Y.
Certain-Teed

York

Also

Products

Analysis

Rhoades

Texas

Co.,

Corpora¬

Carl M. Loeb,

—

Wall

Street,

5, N. Y.

available
Gulf

and

Coca

reviews

are

Producing

United

Cola

Air

Co., A.

—

Cooley

are

brief reviews

Burry Biscuit, Standard Kolls-

—

Review

—

Ira

Haupt & Co., Ill Broadway, New
6, N. Y.

York

Duffy Mott Co.
G.

Memorandum—

—

Edwards & Sons,

409 North

Street, St. Louis
available

Epsco

Inc.

Bearing

Electronics

are

and

Hardart—Report—Robin^
son & Co.,
Inc., 42 South Fifteenth
Street, Philadelphia 2, Pa.

Hunt

Foods

Industries,

Co., Ill Broadway, I?ew York
N. Y.

Mays—Review—Ira

Haupt

Laboratory for Electronics

—

An¬

alysis—Winslow, Cohu & Stetson,
Inc.,

Broadway, New York

New York.

Langis

llusiness
Investment

Franklin

Wall Street,

Also available

Yonge

Cobalt

Company Ltd.
Brewis

Mining

Company

Stephan

Information

—

Canada.

Analysis

—

Stokely-Van

Camp

dum—Francis
Wall

Pont

available

Northrup

Report

—

Co.,

memoran¬

Combustion

Engineering.

Step & Shop—Analysis
&

Street, New York 5, N. Y.

.Also
dum

Memoran¬

—

Carreau

Company,. 115 Broadway, New

York 6,

N. Y.

Simonson

—

Analysis

Cohen,

—

Co., 25 Broad Street,
4, N. Y.

Struthers Wells Corporation—An¬

alysis—Gude,

Winmill

& Co.,
5, N. Y.

Wall Street, New York

Boenning & Co., 1529 Walnut St.,
Philadelphia 2, Pa.

—

111

Broadway, New York 6, N. Y.

—

Limited,
145
Toronto
1,
Ont.,

for

Securities Corporation,

Aetna

New York

White

Street,

Leeds

analysis of the outlook

Stop & Shop

Silver

Templeton,

Corporation

Damroth

—Report—Laird, Bissell & Meeds,
120 Broadway, New York 5, N. Y.

Loblaw Companies

Ltd.—Analysis Texaco Inc.—Analysis—E. F. HutYoung, Weir & Com¬ ton & Company, 61
Broadway,
pany, Ltd., 50 King Street, West, New York
6, N. Y.
Toronto, Ont., Canada.
United Air Lines, Inc.—Analysis
Manufacturers

Hanover

Company—Analytical
The

First

{Boston

Trust

brochure—

Corporation,

Company—Review—L.

Co.,

Broadway,

Narragansett

Capital

—Report—Charles

available

Corporation

Frontier

News

United Fruit Co.—A n a 1 y s i s—
Schirmer, Atherton & Co., 50 Con¬
gress Street, Boston 3, Mass.

120 Broadway,

New York 5, N. Y. Also available
is a review of American Aviation.

dum

Street, New York 5, N.

—Gruntal

New York 4, N. Y.

Taggart

memoran¬

Refining Co.

Shipbuilding

Dry Dock Company

Volkswagenwerk, A. G.
randum

Memo¬

Weldotron

Corp.—Report—Street
Company, Inc., 44 Wall Street,
New York 5, N. Y.
&

Wilson
A.

and

—

Bear, Stearns & Co., 1
Wall Street, New York 5, N. Y.
—

Co.

Hogle

—

Memorandum—J.

Co.,

Wall! Street,

New York 5, N. Y.

Report — Zenith
Radio—Data—Goodbody &
Dillon, Union Securities
Co., 2 Broadway, New York 4,
Co., 15 Broad Street, New York New York.
.-i':"
—

Eastman
&

Ogilvie Flour Mills Company, Ltd.

Analysis — Greenshields & Co.
(N. Y.) Inc., 64 Wall Street, New

—

DON'T MISS IT!

York 5, N. Y.

Philadelphia &

Reading

Corp.

—

Report—A. M. Kidder & Co., IncM
1 Wall Street, New York
5, N. Y.
Also available is a report on the
Gas Industry.
Report

—

Inc.,

—

Bigelovy

Security Traders
Association

Bruno-

Square,

Pittsburgh 19, Pa.
Ultrasonics

Data—Stearns &
New

York

Corp.

—

CHICAGO

Co., 72 Wall St.,

5, N. Y.

Also available

are

data

G. D.

Radar Design

Corp.

Bertner

Bros.,
York 5, N. Y.

—

Wall

Report

St.,

—

THE CHRONICLE

New

Will be Published

See's Candy Shops,
Broad

(Swedish

Company).

Picture Issue of

Telegraph.

Inc.—Analysis
Noyes
&
Co.,
15

Also

FEBRUARY 9th

Street, New York 5, N. Y.
available is a report on

Silver Stocks.

International

Capital

Sorg Paper Co.—Report—Hayden,
Stone & Co., 25 Broad Street, New

Do not miss the

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Broken, 'Dealers and Financial Institutions

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opportunity

advertise your Firm,

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Bank in this

SALUTE TO

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Members: New York

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Bought

•

LA SALLE STREET

Security Dealers Association

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TELEX 015-220

Sold

•

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Regular advertising rates
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Order* Executed at regular commission rates

Troster, Singer & Co.
74

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"

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The Commercial and

through and confirmed by

Members New York Security Dealers Association

The
<3

—McLeod,

Specialists in Canadian Securities

Continental Capital Corp.

Inc.—

Analysis—Courts & Co., 11 Mari¬
etta Street, N.
W., Atlanta 1, Ga.

Corp.

Small

Co.,

1961.

—Hemphill,

1, Mo.

memoranda

SKF

Ltd.—Analysis—Lentz, Newton &

Allied Small Bus.

Hutton

New York 5, N.

Searle and American Telephone &

Cooper Bessemer

Ball

CURRENTLY

Street, New York

Southeastern Public Service—An¬

6, N. Y.

and Metropolitan Broadcast¬

ing.

Co.—

& Com¬

Also available is
Wise Homes, Inc.

N. Y.
on

alysis—Shearson, Hammill & Co.,
14 Wall Street, New York 5, N. Y.
Star Market Co.— Analysis — W.

Horn

Powertron

;

Also available
of

Manufacturing

pany, 19 Rector

Lenchner
—

4, Conn.

man,

Shoe

Planetronics

Lines.

Review

Company, 100 Pearl Street, Hart¬
ford

120

York 4,

report

5, N. Y.

Memorandum—Myron A. Lomas¬

New

Green

Newport

American Airlines,

—

Co.,

Analysis—Steiner, Rouse

Also

York

tion

Memo¬

—

Co., 1516 Locust Street, Philadel¬
phia 2, Pa.

Industries—Report—B. N.
& Co., Inc. 56 Beaver St.,

Rubin

Oil

Pershing

Broadway, New York 5, N. Y.

Rothschild
Stock

listed—Toronto

Adson

ney

—

Martin

1, Ont., Canada.

New

American

memorandum

Hawaii.

—Monthly review showing
tial trading and other data

Also
For financial institutions

ACTIVE-

Toronto

New

General
randum

Broad

Bank

issues

Thursday, January 26, 1961

California

Also available is

Eighth

Calif.

A.
2SH

Also

Consol¬

Witter
&
Co., 45
Montgomery Street, San Francisco

v.y.uv.w.

Investment

months'

—Sponsored

by New York Se¬
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Stock

appraisal—
11 page study available as
part of

stop-loss
come;

for

letin—-Dean

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Outlook

review

Stock—Bulletin

Childs and Company Incorporated,
141 West Jackson Boulevard, Chi¬
cago

York

idated Cigar Corp.

Canadian Gold Mining Companies.
Gold

available

change,

Market

Hitachi

tomo

Hanseatic

Broadway, New

Ltd.,
4,

report

Securities

tronics); Kirin

—New York

available

Steel;

Internal

End

Co.,

—

Co., Ltd.

Stock

Chemical
and

Review

T—

New

way,

Yawata Iron & Steel; Fuji Iron &

New York.

Year

Se¬

Yamaichi's

York

available

Also

Service Electric & Gas—Purcell &

External

Re¬

view—Fahnestock & Co., 65 Broad¬

lier, Kerr-McGee Oil, and Public

Gold &

New

Broadway,

Inc., Celanese Corp., Crowell-Col-

Securities—1960

Japanese
by

Securities

—Nomura

Capital

York

Market

Japanese

Products,

Broadway, New

booklet

prepared

St.,

Honda

& Gas Ltd.

Foreign

York,

Department,

Nikko

Co., 120 Broadway,
New York 5, N. Y. Also available
is a report on Bailey Selburn Oil

New

and reports
Sumitomo Trading and Tokyo

Broad

Report

—

Invest

Japanese

Guar¬

anty Trust Co., and Unilever.

Co.,

Shibaura Electric Co., Ltd.

Corp., Diamond
Steel, General

Gas, Morgan

Tire, Laclede

Five

available

Also

Foreign

the

Reynolds

Co.

New York.

curities"

Carlisle

National,

N. Y.

Securities

Inc., 70 Pine Street,

Smith

Discussion

—

of "Investor's Read¬

current issue

ner

chi

Inc., Ill Broadway, New York 6,

Communications

t—

Troster, Singer & Co., 74 Trinity
Place, New York 6, N. Y.

Co., Alamo National Building, San
Antonio 5, Texas.
,

Quebec—Information

resources

Rail

—

analysis of Philip

—

Also

Stocks

—

122 South La Salle

3, 111.

Street,

—

available

used

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interesting

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value to those considering the es¬

over-the-

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matters of special

other

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from

outline of taxa¬

general

Over

quantities [minimum quantity 25]
New York Security Dealers

Canadian Business Guide—An up-

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industrial

National

Dow-Jones

Inc.,
46
Front
New York 4, N. Y.

(

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the

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—paper, 35 cents (by special ar¬
rangement brokers may obtain in

companies of the United States—
New York Hanseatic Corporation,
120 Broadway,

PLEASED

and

both as to yield and
market performance over a 20year period — National Quotation

LITERATURE:

FOLLOWING

Folder

—

Averages,

Edited by Ira U. Cobleigh—Avon
Book Division, Hearst Corp., 959

trust

and

banks

leading

WILL

MENTIONED

THE

Stocks—Quarterly compari¬

Bank
son

FIRMS

PARTIES

INTERESTED

SEND

THE

THAT

UNDERSTOOD

Index

up-to-date compari¬
between the listed industrial
an

Principal Stock Exchange* •/ Canada

National

AmociaHon

Security

Ihaltn

Broadway. New York 4. N. Y.

Financial Chronicle
25

NEW

PARK

YORK

PLACE

(441)

available in this country

resources

Dollar Fears Unwarranted

form

the

By Alfred Hayes,v President, Federal Reserve Bank of Netv York
New York central

protectionism
will

correct

our

dollar

balance

warns

control

voicing

confidence that

Mr.

Hayes declares

dollar

our

and

"hard-core" deficit is solved

our

once

providing we

made

decisions

our

discretion,

than

rather

concerning

threats

short-run

future

countries

most of

ago,

years

difficult

the

with

preoccupied

problem of ciiecking pronounced
inflationary
tendencies,
w h ic h
evident

were

throughout
our

t h.

gyro w

and

efforts

and

dwell

ing

tangible

along

1959
working

mestic

this

do¬
of

also

but

the

improved balance

While

payments.

monetary

only a part —
perhaps a small part — of the
credit, the objective of checking
policy

take

can

dangerous inflationary psychol¬

ogy

largely

very

was

accom¬

plished.
Unfortunately the twin
objective of fill use of our re¬
sources

what

this

extent

never

may

due

was

influence

disrupting
strike

achieved.

not

was

the

of the steel
be measured

full re¬
covery
was
not attained befoie
new
recessionary tendencies be¬
accurately.

therefore
to swing
early in 1960 from restraint
to

gan

over

policy

softness

tions

began

■'/

ease.

and

appear,

monetary
to

base,

any

persisted

accentuated,

condi¬

business

became

and

ening of credit demands, together
with a Federal Reserve policy of
monetary

brought

ease,

substan¬

tial decline in short-term interest
And

rates.
in

this

flow

considerable

reflected

was

that

the

rather

than

man's

age

that

capital from this country to

reaching

Europe,
it

that

demonstrated

was

peak

and early autumn of

summer

the
I960,,

mone¬

that were clearly
domestic point of

policies
helpful from

tary

having some effects
helpful to our in¬
ternational financial position. The

view
that

were

not

were

result
devise

led

would

that

was

were

policy that would assure
ample availability of credit for
as
long as it was needed, but
the

same

time hold

outflow of short-term capital
our

shores

This

tolerable

still
of

basic

the
our

reference

the

from
limit.

of
actions.

frame

current

During the past few months the

believe

in
as

live in—

economic

cotal

afford
rich

standard

our

tells him

enough
of

that

task—and

the

living

confident

feeling exists,

same

and

fact

increasing, in the more
countries of Western
Europe.
But where this popular
understanding breaks down is in
prosperous

drawing the

need

the

—in

the

conclusions

necessary

for

self-discipline
of

matter

exports,

excessive

depending

analyst's

en¬

point

costs

and

Just

Single Cause

there

cure

there is

for

also

single

cause,

easy

recent

A solution must be pursued

years.

vigorously

along

paths,

only

also

single

deficits

the

Solution

not

by ourselves

major

our

different

many

but
part¬

trading

for whom the preservation
strengthening of the interna¬
tional payments mechanism is no
ners,

and

these
been
mere fact

have

dollar

the

unwarranted.

the

But

of the utmost
importance to us. After all, the
dollar is the foundation on which
all of our international economic
that

they

exist

less

vital
to

least

for ourselves.

than

with

recently running at
is

This

than

high figure his¬

after allowing for
effects

but

boom;

pean

even

favorable

the

better

rate

annual

torically,

merchandise

favorable

the

billion.

very

trade balance
an

we can at
healthy rate
the past year,

exports,

our

point to

expansion

Euro¬

not

high

enough, in view of the continuing

heavy demanas
My

been

any

While
has

and

this

our

resources.

even

means

larger

above

all

exports,
a need

too

serious,

based

throughout the

cloud

reconstruction

cannot
dollar's

We
the

reputation to persist.

•

—

since we are
investments

productive

which will ultimately provide a
heavy return flow of interest and

place

balance.

meet

the

balance-of-payments

that

"tying"

deficit here and

normal

private

of the

One aspect

now.

matter that deserves study
lending, is the effect of existing U. S. and
large-scale public assistance prob¬
foreign tax laws on the flow of
ably does justify "tying" for bal- such investment and on the trans¬
ance-of-payments reasons — and fer of earnings to this country.

international

"in

kind"

cumstances
able to

trade

and

such

under

cir¬

clearly prefer¬

seems

reduction in the amount

assistance.

that

dens of

doubt

sharing

the

one

the

world

free

most

bur¬

finding

sticks" for

ized

are

domestic

national

income

the

and

their ability to handle the burden
from

balance-of-payments

standpoint, I
sonable
achieved

seeking

that

among men
common

rea¬

can

of good will

objective.

The

persistence of large surpluses

very

sure

compromise

balance-of^

countries'

some

been

have

long-term
Granted

in countries which

recipients oi
capital
long-term private

major

American
that

investment

remains

most

world-wide scale

promising

ably undertake
of

defense

and

of the bur¬
foreign

source

higher living standards every¬
where—just as it played a major
role
our

time

one

rethinking

some

problems which
ing

some

benefits
ment.

developing
should be
of these related

country—we

own

to be dilut¬

seem

the

great

international

Perhaps

the internationalization

equity

investment

rect
will

mutual
invest¬

vehicle

some

for

private
have

might

payments positions could, in some fruitful possibilities,

dens

in¬

appropriate for

international

of nationalism

special

significant problem ot
private invest¬
ment program is the growing tide

"yard¬
never

industrial¬

since

still

are

Another

problem

will

question

should not

laws

former.

our

for this pur¬
various
countries'

the

pose,

tax

countries,

centives

dividing such burdens.
agreement

complete

bal¬

appropriate

that there

Granted

our

Here

difficult

the

offers

promising possi¬

payments.

against

mind

bilities, for betterment in
ance

the

our

differentiate between the less de¬

foreign assistance and the the

defense

whether

veloped and the

greater

There

is that* our dircumstances, be taken as a rough
world obliges us indication that they might equit¬

the

strive for

not

dividends. Recognizing the valid¬
reducing ity of this argument from the
aid
to longer term
standpoint, we must
bring about still face the problem of how to

lead

recognize

States

international

with

private

extending

order

better

equated

funds

although di¬

corporations

probably continue to be the

mainstay of private investment.

aid

Assuming

I do, that by vari¬

prices as
prices, and in fiscal and monetary
Already I have been impressed ous means we can soon eliminate
competitive as we can make them.
policy—if we are to translate this
Fortunately, our effectiveness in by the fact that many responsi¬ our "hard-core" deficit, two re¬
inherent ability to create a better
attaining this goal should
also ble leaders in Europe recognize lated questions may still remain
world
into practical accomplish¬
contribute importantly to achiev¬
that something along these lines unanswered: First,
ment.
will we
ing substantial economic growth
can
and must be done; and I be¬ thereby
remove
a
necessary
Must First Overcome Two Hurdles with reasonable price stability.
Bankers

often

are

much

stress

ness,

tary

mindful

needs than is the

citizen;

they

to
a

an¬

American mili¬

expenditures abroad, and to
aid to developing countries

nomic

that

shall

see

tangible

this front in the com¬

ing year, possibly centered around
the co-ordinating

activities of the

source

will

of world liquidity? Second,

the

duly

dollar still

vulnerable

position

event that short-term

the

structure-^

choices

monetary stability,

faced

basic

the

that

our

own

exports, should have
if

salutary,

gradual,

effect

new

for

Organization

Continued

offer to buy

any

through

taxation

could

taxation.

as an

offer to sell

nor a

made

additional

these

automatically

January 26, 1961

NEW ISSUE

100,000 Shares

And

painless

within

United Automotive Industries, Inc.

pro¬

COMMON STOCK

resources

our

present

(Par Value $1.00

tax structure—or better still with¬

per

Share)

lower tax structure—we must

needs.

such

times,

given

already steep rates of taxation

PRICE:

some

have to

come

from

taxes

nize

$3.00 PER SHARE

the
on

income, additional revenues might
well

Copies of the Offering Circular may be
and

from such other dealers

as may

obtained from the undersigned

lawfully offer these securities.

of the less essential types of

that

there

hurdle—the

national
which

solicitation

if this

economic growth

by having

be construed

of these securities. The offering is made only by the Offering Circular.

willing to pay for these

while it would be pleasant

vide

sphere, either
abroad, its citizens

outlays

hurdle

balance

must

additional
our

inter¬

payments

overcome

—

before

the

Economic flows, and induced gold outflows,

Cooperation and Development.

This announcement is under no circumstances to

the public

home

must

wishes

nation

un¬

capital out¬

re¬

quirement of sound growth, is to
be
preserved.
They are aware

our

how¬

are,

financial

and

with

and

lieve

progress on

limitations

the

measures

human

tie

and

President last No¬

vember to reduce

less

are

various

nounced by the

sound¬

Yet most of the bank¬

human

costs

our

often better acquainted with
set by
our
eco¬

ever,

too

keep

The

bankers

placing

detriment

know

these

financial

the

objectives.
ers

central

ana

accused

—

period of postwar
and
development.
allow

others,
a

payments surplus,

the

and

outflow

acquiring

judgment

own

position

spending that now compete for
our resources.
Furthermore, when
and in fact many the question involves provision of
those of the entire free world— assistance abroad, we must recog¬

relationships
have

took

postwar

United

the

relative importance,

little later on why I think

doubts

when

tariffs

late-lamented
parallel situa¬

immediate

stubborn

the

our

been long-term capital account, leading
conscious to the conclusion that the
problem

the

gap").

payments deficit is

the

closing

years,

•

the

having

largely

There

Sees

dollar has been also recognize that in periods
questioning and when needs outstrip growth there
eyebrow-raising, here and abroad, will have to oe conscious choices
than at any time in the last quar¬ and perhaps conscious, but pur¬
ter century.
I shall try to show poseful, sacrifices to meet these
position

subject

jassistance, or excessive U. S. in¬ help

aver¬

enough to do its part in this

world

common sense

inadequate

The

rich

military outlays, too much foreign

as¬

from the in¬

decrease.

country

short-

sistance forthcoming

average

term

and

dustrialized nations must increase

weak¬

resultant

the

areas

ourselves

to the world

specific
balance-of-

payments deficit could be ascribed

view.

cannot shirk

obligation—to
as

and

that

initiated
aid

and

recognition

general

well

Alfred Hayes

economy

direction

total

and

our

shall

self-ex¬

Thus,

causes.

economic

life.

the

assistance in achieving a

standard

one

tirely

advice

sound

valid

Perhaps

trade

incentives

(such

ran

difference

inflow

total

abroad,

is the urgent need

for

this country

only in

healthy

the

when

mathematically

of attributing the

lack

this

inevitable

vestments

political

But

there

lines

behalf of

the

better

during
not

appro¬

For

underdeveloped

icy

were

them.

aspects

world

the

these

knowledge,

today

us
the

monetary pol¬

sphere the primary fact confront¬

By
the

large

time

amination.

economic

able

about

concern

come

attain

military

hibiting desir¬

has

dollar

not

in¬

this

sense

deficit—exclusive

large number of items of inflow

between

priate time, for the nation is ap¬
parently in a healthy mood of
self-examination, of reappraisal of
our
broad
objectives
and
our
of

without at the

time

the

means

economy,

same

were

balanee-

Out-Flow

help to

can

import duty-free foreign products

"hard-core"

Puzzling Aspects of Capital

are

incentives to American tourists to

total

For pur¬

subject.

tion

outflow

Two

tor¬

better

"dollar

way

development of a better private investment program, .r

and

try

this

capital movements—is
neighborhood of $2 billion

the

there

Our foremost problem, he points out, is aid to underdeveloped

essary.

shall
on

are
lined up against an equally
large number of items of outflow,

our

is unnec¬

dollar, Mr. Hayes explains why a central international bank

that

annually.

by-product of excessive spending and lending abroad relative to our
Moreover,

and

balance

for

There

most
puzzling
balance, aspect of our whole balance of
such as removal of quantitative
payments is the role played by
import restrictions abroad, lower¬
private long-term investment.
ing of excessive foreign tariffs, Many are
probably familiar with
and removal of special unilateral
the
analysis wherein the U. S.

resources.

balance

services.

other measures which

short-term

chance

and

discussion, I shall
in
present circum¬

vital

of-payments

liquidity, he expects our contributions to it will be the result of de¬
liberate

brief

favorable

trade

violence

said

that

this

the

stances

about future international

As for concern

assume

domestic policies which keep costs

pursue

prices competitive.

but

the

achieve

been

the

mercifully

poses

need not fear for

has

payments

tured

abroad

not

stability.

about

primary purpose is primarily to assure international redeemability
and that

much

gold reserve's

our

available
will

dollar's

against resort to gold devaluation,

payments and in averring doubts about

unwarranted.

are

that

written

banker

and exchange

our

made

can

Pacific Coast Securities Company
San Francisco

San Mateo

Los

Angeles

San Marino

Westwood
Las

Village

Vegas, Nev.

page

The Commercial and Financial Chronicle

(442)

foreign appraisals of the
stability.

Dollar Fears Unwarranted
Continued from page

first

the

payments

lars
tend

establish,

of
the
U.
S;
readily reinforced
through sizable drawings 011 the
International Monetary Fund.
.

,,,

Ow Gold

States

friends

add

shun

.hence

have

point that,

ited

stock is to

production. There
this argu¬
ment, if we take the long view,
although I am persuaded that for
gold

new

may

the

international

need'for

ample

liquidity

and

run,

liquidity should; be the

re¬

States

world
sult

longer

contributions

United

decisions

deliberate

made

discretion, rather than the
chance
by-product of excessive
spending and lending abroad in
our

relation
final

such
we

dollar

higher

that

holdings

modestly

lia¬
gold

our

This

supportable.

are

of the

consideration

faith

short-term

relation

whether

sufficient

aggregate

bilities

tenability

depends

maintain

the

leads

the

deficits

can

The

resources.

our

answer

sec¬

ond question.

Central

International

ordinary

basic

our

deficit

Bank

some

balance-of-pay¬

pluses

in others—I
to

reason

loss

and offsetting

years

fear

can

periods

confidence

sur¬

little

see

of serious

the

we are pursuing policies
home, both in government and
in the private economy, which are

keep

our

and

costs

prices

competitive. The balanceof-payments deficit having been
corrected, our present gold hold¬
ings of about $17 V2 billion seem
ample, both - in relation to the
world's total

and
of

monetary gold stock

relation

the

liquid

our

$19 billion

foreign

liabilities

(excluding

liabilities to interna¬
institutions, but' including

tional

foreign
TJ.

countries'

ily

the

with

course

cash).

situation

that of

read¬

comparable

bank, and

-of
and

notes

into

are

convertible

sense

holdings

Government

bonds, which

better

than 90%

ratio of cash to deposits
instill
confidence
in the

should

minds

this

the

banks'

customers.

cfude

yardstick,,
considerably
lower
ratio
probably be feasible.
;

Two

even

these

natural

ration
most

could

be raised
however. In the

may

increased

suddenly and
substantially if large numbers of
Americans sought to fehift their
funds
be

abroad.

Secondly, it might

contended

readily
like

the

in the
whom

that

accessible
Federal
of

there
central

Reserve

the

bank,
System

matically to replenish its
in

domestic bank, to
this nation may turn auto¬

case

event

withdrawals.

reserves

unusually

meet

the

heavy

the

cies at

home

first

long-term

purchasing

balance-of-pay¬
to pursue poli¬

which

erosion
power.

guard against
of the: dollar's

meet

the

with

held

in the form

view

the attraction of

its

short-term

flows

not

unmindful

our

trying

the

between

spread

those

and

the

present, with large

ployment

and

nesources

governments.

terms

the

gold;

Vice-President.

New

and

and?; the

to:

maintain

James

elected

country

tion

respond

all

to deny the need

use

both

resources

our

and
s0

Fhope that

rigid

large;
liberal will be

to deny the vital impor-

tance of conducting our affairs in
a

that

way

can

approach,

avoid

look

back

international

problems of these davs

ing

useful

or un¬

shall be able

the

panicky

wise actions—and
to

adopt such

we can

constructive

firm confidence

assures

in the dollar. If

discipline

provid¬
for
the

shaping of sound and imaginative
programs.
-a'
A 'V
* An address

•

by Mr. Hayes before

33rd mid-winter

meeting

p-fl* i?,fn?orV o^fsociallon' New York
v

■

* V;-

•:

banks

with

For

reserves.

one

thing, while this could conceivably have a beneficial influence
on
longer term market rates, it
could' do so only at the cost of
driving short-term rates to much

interest

rates

A llf PTTinir

OtULii x"Yll
,

sloppp

adjustments,

tend

U>
to

which

costs

—"
1"11 in
any
lull
activity.
As I have said before, we should
not expect monetary policy to do
accomparaccompany

economic

than it

can

do; and it

WBrci

movement

tivity.
our

the

resources

business

ac-

;

been

elected

dent

could

stimulating

fiscal

when

perform

adverse
credit

hot

useful

function.

certainly

whole

But

the

forget

effects

mechanism

1AAAAA

deficit
CA

19o8-59
verse

the

fiscal

year

and

effects

New

the

this

deficit

New

York.

and

1951,

York.

joined

succeeds
will con¬

Henry

G. Barber, who
tinue as Chairman. '

Plains,

proposal

capital

Jan.

meeting

increase

for

stock

the

of distributing a 5% stock
dividend,
William
L.
Butcher,
Chairman, announced, b
At

Board of Directors

Automotive

4,680 shares in the

approved by
shareholders of the Empire Trust
capital'

stock

was

permitting

Company, N. Y.,
ment of

meeting

W3S

Industries,

creased: from

000

-ppl/lfor'est Sou'tLrncTlUor!

nia, and in the manufacture, assembiing, and sale of automotive
^rake" slioes," brake" linings, and
drums. The company is the
as-

sembler west of the Mississippi.
The

■

of the cornny estimates earnings of 370 per

sbare
t0 elTd

management

for

tbe

fiscal

current

year

has

Bank

Trust

and

Company,

and

Knecht

Murray

Ira

Earl

■ ■

•.

Harkness, President
Greenwich

Chairman- of- the

Bank,

an¬

Vice-President.

Central

Savings Bank of the

election

the

of James

Bloor, for¬

merly Executive Vice-President, as
President and Chief Executive Of¬
ficer.

Mr.

Lee,

Chairman

who

the

Board

named

Committee.

Trus¬
of

the

They

are

April 30 and Oct. 31,
|

Gotham Bank, New York, has announced

the

election

of Laurence

Marchini, formerly Executive
Vice-President, as President. Mr.
Marchini

succeeds

George J.
Gross, who has been named ViceChairman.

Also

announced

the elections of Vincent F.

(Special to Th£ Financial Chronicle)
^

stockholders

the

new

business

27.

split and

been

Kennedy:

stock dividend

the share¬

approved by

holders of the Gramatan National
Bank

and

York.

Trust

Company,

four-for-one

New

stock

split:

increased the number of shares to

70,COO and reduced the

par value
of: each share from $20 to $5. The
stock dividend consisted of 5,000

shares, one for each 14 held,'
raising the total to 75,000.
new

the

Clifford, President of

Worcester

County-

Bank,

Worcester,

nounced

that

National

Mass.,

final

an-'

approval

for

the consolidation of Gardner Trust

Washington, D. C.

rency,

consolidation

fective

Jan.

ef¬

became

20.

Prior approval had been voted
by the shareholders of both banks'
at their respective annual
ings earlier in January.

meet¬

was

total

capital funds of $13,561,000.
Capital stock will amount to $3,-

935,000

which is represented by
shares- of $10 par value

stock.

Surplus of
profits

$7,940,000 and
of$1,686,000.

undivided

Total combined assets of the bank

will be

$165,974,000 based
figures.

end

on year-

The National

State Bank

of New¬

ark, N. J„ has announced the ap¬
pointment of David J. Connolly as
Chairman of the Executive Com¬
and

Wilfred

Rice

Paul

Keith

Stillman

the

ecutive
ton

will

man

will

continue

board

Officer.

and
■'«.

Albano,

Mr.,

Chair¬

Chief

and

named

was

President

"W.

succeed

President.

Furman

Ex¬

Den¬

Executive

Vice-

Cashier.'
![!

■

SjS

Shareholders of The National City
Bank

Vice-President

the

Federa¬

York.
-

>;:

Raymond J. Saulnier

Trustee of The Bank for Sav¬

proved
the

20,

annual

1961.

ings in the City of New York was
announced ' by
Alfred S. Mills,

Keith

Ohio

ap¬

stock

split

meeting held

Jan.

directors

Glennan,

brenner,
liam

Cleveland,
two-for-one

New

•

liam..H.

Wil¬

Vice-President, and Direc¬

Herbert H. Ruess has been elected

The consolidated bank will have

Jr.,

Election

Kennedy Wuille Opens

ARCADIA, Calif.

one

outstanding

Vice-Chairman of the board.

tion Bank & Trust Company, New

011

1961

mittee

Trustees.

16c per share and stock dividends
40^ payable in two equal in-

Jan.

now

succeed

was

Vice-Chairman

and

tees

will

Bloor

James. T.

nounced initial cash dividends of

1961.

17,

record

Sav¬

has

York,

New

and

an.

New York, announced the election

stalments

each

The

$5,850,COO to $6,084,result of this action,

tor.

in October, 1E61.
directors

agreed to distribute the

dividend

The
Trade

both

iargest such manufacturer and

stock

Company into Worcester County
capital has in-^ National Bank has been granted
by the Comptroller of the Cur-1

authorized

bank's

pay¬

4% stock dividend.

Executive

brake

directors

Edward
An increase of

elected .are

Alfred

Edward

Gloss-

Wil¬

Helm,

Laffer, George H. Rich-

man.

...

President.
3*:

>*;

9;i

'
Wmlle is engaging in a securities
1
business from offices at. 655 West: Kings - County
Trust
Company,
Duarte Road.
Brooklyn, New York, stockholders
'

especially the adof '

our

unduly large and protracted Federal

United

inadequate use of
long persist.
,

policy

the

a Vice-Presi¬
Manufacturers Trust

the

Company,
bank

-President

City of New York, has announced

6111

should

the time might come

title

Company,

purpose

A stock

Goldfine, formerly
Vice-President,
has

Executive

The

kjUlU.

over-subscribed

is very

probably too much to expect it to
create
all by itself
a
new up-

White

bank's

the

393,500

credit

iCrivemeT/ln 'efficiency
°vem®nt? in e:c ? 7

and

been

Senior Vice-President of

Haysworth

Pubhc offering. o£ 100,000 shares
? United Automotive Industriesl™™
JPacific Coast Se-

Further-

overseas.

excessively

more,

has

nounced the election of Charles G.

-V. :r,:'

lower

levels, needlessly accentuating the relative attractiveness of

annual

approved

William.

ings

—

U.^llCU -flULUlllUU.
Qf-f\plr A IT QaI A

the

Morrison

the

York

New

1 IriN

reason

Charles

Weiss, as-Vice-Presidents.

whatever,
conditions, to flood

Trust

City.

their

has

Mr.

constructive approach toward

see

include

heads

our

On the other hand,

current

and

inter-,

opportunities.
can

and

Alaska

and

this'•>firm-r York.

conservative will be

unbending

credit applications, and in fact to
seek
out
worthwhile investment

under

under the

the First Boston Corporation, New

at home and in the world at

unem-

worthy

Garden

Island

Company

necessary

whole

our'

objective»,and

the full

be¬

general policy of ease that will
nation's banks in a posi-

Long

Feb.

Tha.begfnrur*g ©G1961 is approa time for re-examination

for

the

put the

Linden-

Bank,

York,

New

areas,

Richardson,

■

Lindenhurst

hurst,

East¬

Central

England

District

James

ceived
the

Company,

City, New York, has re¬
permission to merge with

Vice-

Ross, a Vice-President,
in charge of the Southern and
areas

Long Island Trust

Garden

Stockholders of The County Trust

Costikyan,

Hawaii!

to pursue

on us

Folwell

and

«•

'Western

and

will

foundation

unused productive
the economy, it is

clearly incumbent

hope that

time such

Reierson

Scull, Jr., have been elected Trus¬
of
the
Bay
Ridge Savings

tees

Mr.

of the criteria of domestic

some

Roy

for

sure

monetary policy. At

1931,

later,

Bank, Brooklyn, New York.

President heads the

with foreign central

and

national financial'structure.

consideration

value to 266,200 of $10
keeping capital at $2,662,000.

par

Francis P. Beattie.

this price,

resources
-

coming unduly wide.
This leads

following the annual meeting, the

has

this,5

from

increase

The

and

equally certain that this

short-term

abroad

voted

iar

desirability

our

outstanding from 133,100 shares of

George L. Farnsworth, Executive

tampering with

have

and Sdnior Vice-President in 1958.
■ sis
*'
Jt* •:'' "';*v. '•

natiorfffl^ Royaf State Bank
by^f0|rams foi^&liniW^^Kfe J?!© was previously

prevent

years

Walter M.

of-priately

cushion

Vice-

National

of 16 in 1913 and became As¬

/•<}

confident

-Trr-r-

Revised Capitalizations

Hayward, Richard K. LeBlond, II;
N. S. Calhoun, Jr.; Daniel A. Finlayson;
Horace
C.
Bailey, and

minimizing^

adequate

Senior
First

the

sistant; Vice-President

Granger
I

••••',

•

certain that only harm could come
fr0m any depreciation of the dol-

temporary rate

Kane,

Vice-President, three

gold and the dollar, at $35

ounce,

banks

kind without any appreciable disturbance; but in saying this, I ana

all

•

great trading

heavy flows motivated solely

,n_0

second, it may be pointed out that,
besides holding such massive gold

world's

reserves

gold

should

the readiness of
this country to deal freely in gold,

—

framing their own monetary
policies
and
in
avoiding
abrupt shifts in the proportion of

rates

$20

all,

Offices, etc.

par,

age

invest-

present fixed relationship be-

tween

resto¬

both in

highly

the

•:

his 64th birthday,

ern

per

however, for the kind of
orderly policies already practiced
by many leading central banks—

their

But above

the

place,

deficit and

life

of
of

There is undoubtedly

countries.

should

eliminate

fact

•

New

18,

there must be

[Of external convertibility in
of

objection I believe it will suffice
ments

concomitant

v, •'

•

City Bank of New York, died Jan.

outgoing and the incoming Administrations would agree,

would

analogy,
place, the total of liabilities

first
„

objections

this

spoken

yet

foreign centers. To a
large extent I think we must lock

dollar,

provided

calculated

an '

international
flows
of
capital
to -take
ad-

provide

virtually elimi¬
nated—except for cyclical fluc¬
tuations that might cause deficits

not

Branches

Mr. Kane joined the bank at the

international economic

our

policy.

short-term

upon

that

jLoe

President

international

protectionism

p0se

the

price of $35

ever '

both the

I. have

absorb
If

and

of return. In any case, it seems to
me that
our|present gold holdings

Not Needed

ments

gold

pur-

ounce.

available

the

event

vantage of higher rates of return

need.

Moreover,

dollar at the fixed

no-

deficits

incur

such

meet

there

future

near

the

the international

assure

convertibility

force in

some

our

maxi-

international
means

Mr.

abroad,

for

•.

Further, we should firmly resist Vice-President, will, head Chemi¬
cal Bank New York Trust Com¬
anv
suggestion of exchange con- '
pany's project of expanding or¬
trols over the international flow
ganization of its national division
0f capital funds or other interto divide the
country into nine
national
payments. Such
action
districts instead of four, with each
would' not
only
be
futile
but
district under the supervision of
would also defeat the whole

emergency), there is no doubt at
all in my mind that the primary
purpose of our $17
billion gold

need
for world liquidity that could not
have been wholly met from lim¬
helped to fill

suspension

aid

forms, with all that it implies in
the way
of lower standards of
living
both
here- and
abroad.

decade have in fact
(Federal Reserve notes and liabilibeen a major
source
of needed
ties (which requirement is subject
additional
monetary reserves of
European and other countries, and

and

ment. This

despite the existence of the 25%
gold reserve requirement against

the past

over

freedom

•

New

•

of "

trying

world

war—a

trade

J;v;

this

the

Consolidations

which
kind

the

been

allies

and

mum

Primary

have

with

the

since

„

purpose

Let

deficits

U'. S. balance-of-payments

resources

the fact that

from

bal-

our

world

inimical

for

deficit

the long run.

remedies

of gold and dol¬
This would

reserves

over

all?

annually—in order to add to total
foreign

avoid

would

liquid

dollars

billion

BANKS AND BANKERS

need

ance-of-payments

could

balance

its

become

tial

should be borne in mind that the

it has been

averaging, say, one-

—

billion

could

assets

some

;

me essen-

available
through
acrepayment
by
debtor
governments; and furthermore it

argued that the U. S. should de¬
liberately continue to run mod¬
in

that

and

closing, it seems to
to
emphasize - the

celerated

point,

deficits

Questionable Remedies,
j11

Thursday, January 26, 1961

"NEWS ABOUT

quickly

Liquidity

half

account

these

Question of Future World

erate

very

term

currency?

the U. S. Government is
heavy creditor on long-

reserves,

dollar's

Opposes Gold Price and Other

should threaten confidence in our

Appointment of Robert L.

Day.

and

Philip- Sutherland,

Presidents

was

Vice-

also announced.

Volume

193

Number

6024

Commercial and Financial Chronicle

The

(443)

This mark identifies modern, dependable steel.
Look for it

on consumer

products.

:Xy>>?S/,y

ZmvMmmm
b-yv/C^^. •'/!•W»

&$&&<*:>>

■$?&&#><&&

<}-.

a<> \. v~

^
'

■■"W'XZf*'' ;.

mmssw&m?.

w-t.

'■•

■

The world's
YgSk f| j /%
■

1©|©§C0D W

}

biggest
This ^s an artist's concept of the world's biggest radio telescope. This giant telescope will use radio waves to locate
objects that are billions of light years out in space. The dish-shaped mirror will be 600 feet in diameter—about
the size of Yankee Stadium. It will be the biggest movable radio telescope the world has ever known.
As you'd imagine, it is going to take a lot of material to build an instrument this size. The American Bridge
Division of United States Steel, as a

major subcontractor, is fabricating and erecting 20,000 tons of structural

steel for the framework alone. The U. S.

it's

completed, there'll be

The site is

near

a power

Navy, through the prime contractor, is supervising the entire job. When

plant, office buildings and personnel facilities for

Sugar Grove, West Virginia.

United States Steel produces many

permanent 500-man crew.

of the materials that

are

essential for construction: structural carbon steel;

high strength steels; alloy steels; stainless steels; steel piling; steel drainage products; cements; slag; reinforcing
bars; welded wire fabric; wire rope; steel fence; electrical cable; and
other allied

products.

The most important

building projects in

our

nation depend
USS is

steel.

registered trademark

(UsS) United States Steel
V " #
.

(444)

-i

s-v

The Commercial and Financial Chronicle

fXl

~v T

}

.Q"nQ(]Q

VClllCi,U.C«

X 1 V VV

corporate and private capital in-

vyAAVJ

case

vestment.'1 Indeed

O 10 V

CAUV

dustries,

perhaps

the

Owned Capital
Canadian Minister of finance

fjgure
This is

Fleming provides a timely discussion of several matters of recent

Mr.

Canadian-American relations.

affecting

origin

They range from a

of our trade
ot ou■iraae

effect

Canada

tax and o

voted

put foreign firms on me
and to rectify balance of payments problem.

growth, to

Canadian ones,

exceeded

rate problem.

exchange
there

they

are

the
of

just

a
larger proportion than was
in

case

increase in,the inflow of foreign
capital tends to be harmonized

quantities of imported equipment
End other commodities.' When an
increased investment program
financed by foreign capital is

sides

large surplus

of goods and services

indeed
largely the consequence of, the
net inflow of foreign capital. The
matched

international

total

and

by,

payments

are

kept in balance with our total international

receipts, among other

by fluctuations in the^ exchange value of our dolla^Ohe
difficulty arises when the inftavv
of
particular forms
of foreign
capital is in excess of Canada's
real
requirements, so ,|hat the
ways,

such

Canadian dollar is forced to

that
difcompete witn foreign
Canada and in foreign
exchange
rate
producers find it

high

Canadian
iicult

goods

This

markets.

has

happen-

been

earlier

economic

periods

also

facing

problem

States is

United

the

course

balance of payments

though

today,

one

very

different type. Perhaps then

you

can

sympathize "owith our
uui
our efforts to inccu
eiiuita
tu
meet

problem ana
prooiem and
it.

pose, this has been rou^ y
Situation in Canada during m
periods over the ast
eca
>

would

hardly be

comment

for
implica-

proper

the

this problem

in terms of

United States nolicies. What I can
United States policies. What I can

should

and

have

Canada

appreciation of the factors which
have given rise to the difficulty.
We welcome the implicit unwillingness of the Administration and
the
Congress to seek solutions
which

would

difficulties

payments
countries

for

slow

balance

create

the

increases

J*®

level

n^H

„

capital

nr.mi.]ni

™

the

same

these

investments

the

economy

of the

has derived by

new

rea-

manufacturing and

jndustrial techniques which have

have been

Hollar

cost

pre-

dollar

increasing

pNces

exports

to de-

preventinr^

1 nces ln ^anadaThe Need for Foreign

Some

their

depressing

Canada

these

brought

have

miliar' ^ ?hlcY} invol+ved 00 bl§
a financial nsk' or too long a

But

is a case for greater Canadian
participation in some of these industries and that in altogether too
many cases they have not taken

the

spectacular

development of the Western Caoil

industry

and

the

re"

would

areas

not

likely have been achieved had it

Capital

borrowers

Consequently
add

the

that

For

may well be that this
inducement has been exaggerated.

brought in. by the larSe foreign

01^ companies. And the same conclU£aon. holds good for the great
Producing complexes of the alu-

expressed

effect

that

the

crease

that

certain
the

desire

in-

proposed

certain

of
an

indication

Canada's

been

quarters

rate

withholding taxes is
Qf

has

part

impede the investment of foreign
capital in Canadian business and
industry has no foundation whatever.
On the contrary, it should
be recognized that for Canada
think

terms

any

narrow

economic nationalism would

mean

running counter to the policies
of greater freedom of trade and
payments which we have supported

strongly

inter-

every

it would

own

best

Let me then emphatically assert,
as I have done already in Canada,
mat
supplementary
that my recent Supplementary
Budget is not an anti-American
budget. Those few persons who

CPTMrA

Panada

the interests of Canada,

serve

and it'has

other

purpose.

The

measures relating to the withholdin8 taxes ™erely withdraw

are

they

action

intended as a
to
restrict

;

foreign

New

prelude

-phis attitude is not inconsistent

I have proposed

States.

We have

that

course,

United

the

free

floating
exchange rate, and our economy
is in a position to attract unusually
large amounts of outside capital,
a

1950, when it became eviexperience that it was
impossible for Canada to main-

dent from

the

future, my belief is that
the ability of Canada to finance
a
larger share of its capital requirements is bound to increase.
For one thing, it seems likely that
our total
capital investment pro-

fore

constitute

rather

smaller

"flin,uP» mckel and iron ore inoustries, and for many other
resource and secondary manu-

±acturlnS industries.

ing

capital

which

able

and

willing to incur these financial
risks, to introduce new industrial
tain
a
fixed
rate
of
exchange js s0, it should be possible to fi- techniques, to develop unused natwithout
exposing the
domestic nance a greater proportion from ural resources and to find mareconomy to undesirable inflationCanadian savings than heretofore, kets for them at home and abroad,
ary
pressures
and
other
dis- i would therefore expect to see We have every reason for and
turbances. We were driven on to
SOme
changes in the sources to every intention of continuing to
the free
exchange rate at that which Canadian governments and maintain a climate that makes
time by reason of such a large
enterprises should look for funds such
capital investment thorcapital inflow, much of it specu- to finance their investment pro- oughly welcome in Canada.

lative in character with which
could not

It is

cope

other

any

way.

thing therefore for

new

proportion

national
expenditure in the future. If this
gross

our

in the future. To make this
possible, of course, there must

grams

also be

greater willingness on
of our people to save

Canada to feel disturbances aris-

the

ing

and
to
invest
Canadian securities.

from

amounts

of inward

The

years

the

structure

payments,
the

that

greater

has

than

have

influence

flow

stantial

capital
must

not

subject
capital in-

probably

the

economy
some

undSirable
and

exert

Pressor?
pressure

been
really
forms

part

?hese ,e.xtefnal lnve|tments haY<;
^oug.ht about' an? we ®0lild
ment its domestic savings to help
.e
?ee Provl|lon made by
new
industries to be Established external investors for a wider deand to increase the efficiency of gre- of Canadian participation of
our existing
industries our ores- ^".uUS klnds m such industries,
ent
economic
situation
is
such
At .the Present time external inthat We do not now need to at- vestors°Pera^nS usually by
tract the
large
volume
nf
m?ans of the Canadian subsidiwhile

Canada

will

continue

sub-

fnrpmn

require foreign capital to supple-

that
all

cir

Liip
thP
the PvrLnL"
exchange
m

foreign
that

capital

nnr

tomed to

prnnomv

rece^ve

fertain

ha?

hpPn

recent

forms
pppn«

£"ef

bave

Pac^rrTnTerapbJ0a,dn'
controlling interest in

corpora-

tion income tax concessions which
should enable all business, and
particularly smaller businesses, to
retain more of their earnings for
re-investment.
This
concession
applies to foreign as well as to
domestically controlled corporations, but since Canadian firms
constitute the major component of
our smaller businesses, they will

that larger amounts of domestic
savings will be invested in Canadian industry, and thus to promote a greater participation of
Canadian capital "in the owner-

ship and control of our industries,
I have proposed that the financial
resources of Canadian pension
funds and investment companies
will be directed to a greater degree than heretofore into Canadian rather than into foreign investments. Thus I proposed that
corporations desiring to qualify
purposes

in the future

The normal rate of withholding
tax is 15% and a non-resident individual who owns, for example,
anY shares of a Canadian .business

corporation or the bonds of
Canadian municipality payable

Caf

the

"fX
„tax; aL VI
be
?™rC£v
2J, Td
^
t?
^
feSard to these types of foieign
lnvestme,n,t: However, over the

that

of time

course

•

various concessions

fj,wer Tatpr0i?
have

erved

borrowing

nrovidP

attract

SDecial incentive to

^a
t ? the

r/h

exist m the form of

^abrond

foreien

to™T

can"

variou<?

cnmnanie^ nnprnting

For^

interest

bonds issued by Canagovernmental or corporate

other

foreign money market centers and
payable in a foreign currency has
alwa-s been free from

any

with-

holding tax.
the interest

other

issued

hand,
by

bonds

municipalities

the

and

corporations

Canadian dollars and paid to
non - resident investors has been
in

subject to tax at the full rate of
15%. The remittance of interest
abroad on provincial and provincially-guaranteed bonds floated in

Canada has been subject to
at the lower rate of 5%.

tax

These special concessions for interest

certain -typeS* of

ties permitted
to

derive

some

income

securi-

non-residents
from

Canada

without paying their proper share
0f Canadian taxes
They also per-

mitted, and probably encouraged
Canadian borrowers to go outside
ments

for their capital requirewhen

the

cumstances of the

immediate

cir-

market
It is this

money

induced them to do

so.

situation which I am seeking to
correct by imposing the tax on interest at a uniform rate.
As I
have said elsewhere, the original
concessions were made in cireumstances altogether different from

those existing today. The Canadian economy is now able to finance a larger volume of its total
capital requirements within Canada itself, and in present circum-

of steps which will diminish tosome"fances n" 1* appropriate
take

three-quarters of
their gross revenues in the form
of dividends from taxable Canadian corporations. I have also
proposed

hSsHlont? beent
de?uetl0/\uf

tbe, Jf'%

a
in

must ob-

vears" ab?ut. 56% °f a11 manufacturing tain at least

receiye in recent years. lndustry. In some branches of our
5 ? 8 the last decade and a manufacturing industries the perias ,had an unufu- centage of external control is
ally high level of governmental, much
k

higher than this,

Canada which pays the interest
or" dividend is responsible for
withholding them and transmitting them to the Receiver ^enfra* 5^ Canada. This kind of tax
bas long been a feature of the
Canadian fiscal system and is
common to most other countries,

naturally benefit most. To ensure Canada

Allcotl4^

*ear ADSe"lee control
As I have said many times we
a,re concerned over the growing
degree of control over many 1m-1
portant Canadian industries which

same

inflow*'nf

necessarilv

cumstances
ward
ward

balance

suggesting that

npt

the

been

required in terms of
of imported capital.
I

and

types

capital movedifficulty in recent
is that our exchange rate,

nients.
and

different

certain

usually described as withhold*n§ taxes, since the individual, or
corporation
or
government
in
are

borowers in New York and

since

from

interest and dividends paid to

non-residents from investments
°t one kind or another in Canada

paid
djan

^scal Measures: The

Withholding Tax

In view of this record there
should be no doubt in anyone's
or
to
borrow
unusually, large grams, while remaining very mind of the importance which
amounts
of
foreign funds.
We high, will increase less rapidly Canada and her Government athave had a free exchange rate
than in the past, and should there- tach to the desirability of attract-

situation, of

The taxes levied on income such
as

Canada.

with the view that, so far as it
is practicable for government to
help in such matters, Canadians
should be encouraged to invest
m0re vigorously in the development and management of our
economy. This was the purpose of
certain new fiscal measures proposed
in
my
Supplementary
Budget of Dec. 20. For example,

Our
ferent

The changes which I have proposed in the taxes on investment
income paid to non-residents have
aroused a considerable amount of

hardly

need

view

the

attractive. It

is dif-

seem

may

Measures Misunderstood

interest in the United States and
evidently a certain degree of misCanadian ownership and manage- understanding in some quarters.
ment, or engage in research and As'I have said,Jhere is no truth
other guch activities in Canada, whatever in the view that these
instead of leaving so much of the changes reflect an antagonism toresponsibility for such questions wards foreign capital.
We were
with the parent company. How- concerned, on the other hand, to
ever, these deficiencies must
be withdraw special concessions such
weighed in the balance against as those which have made it very
the great benefits which foreign easy for Canadians! to borrow in
investment has brought to Canada. New York or other external marBy and large, they are matters kets rather than in Canada, now
which should
be
corrected
by that we think that the Canadian
methods of persuasion and good capital
market can support a
sense rather than by direct govlarger volume of borowing than
eminent intervention.
heretofore.

sultant expansion of its markets special advantages and apply
to
refineries of Vancouver, equally to all countries. They do
Winnipeg, Sarnia, Toronto, the not discriminate against the U. S.
United States Midwest and the or against any other country. Nor
Sound

income

investment

advantage of their opportunities
to
increase
the proportion
of

example,

their

90%

from Canadian sources.
,

dian ±inance t0 handle raided.
For

such plans in future must derive

also believe that there

have so interpreted it have quite
misread it. It is a budget designed

dian fjnance to handle unaided.

rates

waiting period before any revenues COuld be earned' for Cana"

puget

^e belief that the level

jntereS£

benefits

great

tax exemption given to the trustees of employee pension plans,

Canada.

not been for the vast sums of investment.
for their capital require- ^ap
/ ,al:d ?
kn°w-how
Canadian

investments

external

interests.

ranadian

Canadian

ing

that

ural resources which

nadian

chne

gas,
mining and smelting. We believe

our

irakes Canadian exports more ex-

Thursday, January 26, 1961

natural

damaging

the extra

token

tup

without

in-

resource

our

oil,

?dditi™al been introduced, and of the nat-

fnr

tend to increase.

the

Rate

during

mor*e

ex-

productive facilithe last decade or

our

some

And

*ommoditV imDorts in comDarison
tThThfnrWrnf
Lds
Ltb
^nr J L„d toincrease
1° tbat mp

0£
ge

national forum.

rnnoriian

fup

men^s

expand-

^"^he exchange valul of the developed. Foreign capital has
do?1ar
developed many new enterprises
^ AtJfSe &nLian doIlar " were too, large or unfa-

Floating Excha

rapid and broadly based

pansjon

SQn

outrun tne need tor aaaitionai

W0J.
5.
^ abroad
international

P^?ig^eSS °

still freer system of
trade and payments.

savings and enterrequired to finance or to

promote the needs of

ties

Ho.wfver» there areumes wnen

other

down

Canadian

0£

prise

of the Canadian dollar on many £rom 0ther countries. We fully
past occasions when substantial recognize the great benefits which

like to say

is that we
sympathetic

Canada, it is a fact that too. small
a proportion was invested in new
industrial facilities, particularly
our new and dynamic resource
industries. To meet the deficiency

irJd*£ated by the relative s ab lty

tocheapenthe

tions

expansion

taking place in an economy which jng economy, United States and
is already employing most .of its 0ther foreign investors, attracted
existing domestic resources to the by the opportunities which existed,
full, the additional commodity were willing and glad to fill the
imports required are paid for out gap
were fortunate in being
of the
increased supplies of abie to attract this kind of capital,
foreign exchange provided by
.
foreign investors, without giving
Value of Foreign Investment
rise to any alteration of the exNone of us is under any illusion
change rate. By and qrge, I saP- ^bat Canada could have achieved

inflow were taking place.

ing in recent years.
Of

rate. In normal circumstances an

with an increased need for larger

different

coin. The

same

imports

this

four_fifths

much

since

not two problems,

are

in-

capital formation. While this is

Actually

payments problem and

balance of

de-

ings in Canada during most of
this period was sufficient to sup-

rapid
somewhat unusual

to be

private

and

has

Canada

25%.

high proportion of

public

and

tion

has

very

vestment projects, judged by any
standard. The high level of sav-

country to be used as a backdoor to frustrate
controls on Cuba. Placed rn perspective are

tention of allowing his

Gross National Product

forthright denial that last month's announced removal of tax concessions to nonresident security holders is anti-American to any inthe

economic de-

our

velopment. In 1946, capital investment represented
about 14% of
all expenditures; in recent years

By Hon. Donald Fleming,

been

has

outstanding

most

characteristic of

On Foreign

this

qualify for

the

what the total inflow of foreign
capital of certain kinds. In so doing I have also had in mind the
fact that an approach of this kind
would

somewhat

reduce

the

up-

Volume

193

Number

6024

The Commercial and Financial Chronicle

(445)
ward

the

pressure, on

dollar,
I

mentioned

of dividends

ada

occa¬

now

earlier

ume

done.

dent in the United States.

Canadian

indeed it has

sions it is my view that the exist¬
ence of a considerable amount of
unused

resources

the

economy

today makes the timing
change most appropriate.

this

of
'

the

pose

paid

I should mention that these
pro¬

the

States

this

par¬

provision
without
any
for terminating the rest of

withdrawn only for
interest obligations incurred after

the

Convention.

ent

agreement

the

was

When

pres¬

concluded it
might be

was

that

foreseen

the

night of the Budget. No new
tax is being imposed in
respect of
previous indebtedness. The inter¬

necessary

est

outstanding securities will
continue to be subject to the rate

sions

branches

fully

increase

den

such

deed

"foreign tax credits"

they

paid

subsidiary

American

country.

The

increase

result

the

upon

the

scope

turn

all.

total

tax

extent

both

increased

en¬

coun¬

depends

which

corporation

of profits that are
being remitted to tne parent com¬

and

pany,
I

have

heard

American

50%

that

one

point. I
important

added

the

corporate income tax to the

withholding tax of 15%
cluded

that

resident

the

and

earnings of

subsidiaries

con¬

non¬

the

tax

were

being

taxed

Canada

rate

65%. It forgot that the withhold¬

ing tax is applicable only to that
Continued

page

lies within the terms of the agree¬

exemption

fore

tax

Dec.

that

20.

prevailed

Nor

does

apply to interest

be¬

the

new

the

mention
draw

abroad.
that

the

The

would

levels
in

this

the

Federal

not

wish

also

with¬

exemption
tb

the

in¬

Canada

Government

treat

governments

respect

way

propose

Government

bonds.

should

complete
applicable

previously
terest

other

Canada

differently
prepared

from

treat

cial

tax

concessions
case

also

spe¬

.be

of certain divi¬

dends remitted abroad. To put this
decision in perspective I should

explain that
tax

have

dividends

Canadian

shareholders.

shareholders
the

last

and

individual

has

been

15%

change is being made

However, in the

dividends

dent

by
foreign

For

paid to

case

non-resi¬

parent
corporation
which
virtually all or all the vot¬
shares of the Canadian sub¬

owns

ing

sidiary.

the

withholding tax has

been levied at the concession rate
of

since

far

back

1947.

It is proposed that this exemption
from the normal 15% rate shall

also

will

also

removed,
longer justified. Bv
be

erential

dent

removing

treatment

ently exists

being
doing

companies

the

pres¬

non-resi¬

condition that

with

budgetary matters must be kept
strictly secret, it was not possible
the

inform

advance

United

intention

our

immediately

ever.

advised

afterwards

esteemed friend the
Secretary
of
the
Treasury
in
Washington of our proposals. The
my

Administration

has

withholding

than

from

Canada

automatic

the

for which we both have
provision in the tax treaty,
the
change in the Canadian

practice.
There was therefore no
question of the United States "re¬

taliating"

against Canada.

happened

that

It so

changes
were
announced at a time when,
unfortunately, the people of the
United States were already great¬
ly exercised, and understandably
so, by the confiscation of United
States properties and investments
in Cuba.
Had they been intro¬
duced

attention.

less

In addition to interest and divi¬

dends

there

which

another

earnings

ferred

carries

form

subsidiary,

attributable
to
its
Canada are taxed, of

profits

course,

their

poration income tax rates. In the
past no attempt was made to place
any tax on the non-resident cor¬

Canada,
happen to
control the Canadian company in
question.
not

they

short, the principle we are
proposing to adopt is that all for¬
eign shareholders in Canadian en¬
terprise.1 individual or corporate,
whether

they have

effective control
of

rate

the

pay

tax

sonable

few shares,

in Canada, shall in

company

future

full ownership

their

normal

same

fair

contribution

15%

and

rea¬

the

ex¬

of the Government of Can¬

penses

were

Canadian

cor¬

has

mention

should

that

Canada

number of agreements with

other countries whereby
undertaken

than

not

tax

have

impose

dividends

paid
by a Canadian subsidiary to its
non-resident
parent
corporation
a

whose

holdings

constitute more
voting shares.
There
are
provisions
in
some
other agreements under which the
than

rate

50%

tax

reduced

the

auestion

2V2%

may

zero.

Income Tax Act we
will, of course, observe our obli¬
gations under these treaties.
It
amending

will

our

therefore

into

enter

Which

negotiations

with

possible

have

15%

rate

soon

pro¬

15% tax on
to impose the full

every

case.

••

expansion program

products and improved existing

Management organization

ened

On this solid

business conditions

five-year major

our

...

HIGHLIGHT
FOR

;;

FISCAL YEARS

THE

ENDED

Canada

Tax

and

Convention

i960

Net Sales and Other Income

the

United

States

of special significance in connec¬
tion
with 1 the proposals
I have

outlined because of the large vol¬

general

...x7^.\_

1959

$152,082,287'n $150,743,809

Income Before Income Taxes

25,132,877

26,859,219

Provision for Income Taxes

12,444,000

13,457,583

12,688,877

13,401,636

7,553,875

7,536,395
5,865,241

Income

Dividends Paid

—

,....

Earnings Retained in Business

Net Plant and

5,135,002

. ... r

59,520,555

Equipment

62,052,670

175,594,103

163,220,609

94,771,801

100,604,126

Equipment

59,684,800

Long-Term Debt
Shareholders'

62,164,900

100,267,120

94,953,643

7,343,258

7,336,190

$1.70

$1.80

1.00

Equity

1.00

Common Shares Outstanding

Earnings Per Common Share
Dividends Per Common Share

the profits of the
by its

FACILITIES

OUR

Corporate Research

Hooker Research Center, Grand

Export Sales Office

New

European Office

London, England

view of the proposal
to
impose the full 15% tax on
dividends paid by subsidiaries, a

Eastern Chemical Division

though

even

Plants:

imposed

profits with¬

branches.

the

government's

desire.

shall

taxes,

bear

Sales Offices: Jeffersonville*..
Durez Plastics Division

Plants: North Tonawanda, N. Y.*.. .Kenton, Ohio
Los

Dayton... Detroit...

Angeles.. .New York

Mexico City, Mexico
Hooker Chemicals Limited; North Vancouver, B.C., Canada
Hooker Chemical International Limited; Nassau, Bahamas
Hooker Mexicana, S.A.; Lecheria, Edo. de Mexico
Marble-Nye Co.; Worcester, Mass.
Fosfatos Hooker, S.A.;

Subsidiaries

Quimicas Sociedad Anonima Industrial y Comercial; Buenos Aires,

Duranor Industrias

Affiliates and

Jointly Owned Plants

Argentina
HEF, Inc.; Columbus, Miss.
Solar Salt Company; Salt Lake City, Utah
♦division headquarters

;

tax

in lieu of the non-resident

withholding tdx imposed

.Chicago.. .Houston.. .Marysville, Ohio

Sales Offices: North Tonawanda*... Buffalo.".. Chicago...

Ac¬

special

Columbia, Tenn—Dallas, Texas...

Houston, Texas

ing on business in Canada, after
deducting the regular Canadian
and provincial corporation income
of 15%

■

Phosphorus Division

sidiaries. This is the very reverse

cordingly, I have proposed that
the
profits of the branches of
non-resident corporations carry¬

.Worcester

Plants:

Plants: Jeffersonville, Ind.*.. .Adams, Mass

wqu|d

position
offering to non-resident cor¬
porations which carry on business
in Canada a strong tax incentive
not to incorporate Canadian sub¬

Niagara Falls, N. Y.*.. .Columbus, Miss
Montague, Mich.
Niagara Falls*.. .Buffalo.. .Chicago.. .Detroit.. .New York...Philadelphia

Tacoma, Wash.*.. .Spokane, Wash....North Vancouver, B.C., Canada (Hooker
Chemicals Ltd.)
■>
Sales Offices: Tacoma*.. .North Vancouver.. .Los Angeles.

serious lack of balance would de¬

from

Island, N. Y.

York, N. Y.

Western Chemical Division

velop if some corresponding levy
not

York 19, N. Y.

Sales Offices:

divi¬

Our 1960 Annual Report

reviews the year's

operations and details the progress made in

dends.

expanding plant and equipment and diversi¬
Impact of Changes
The impact of these tax
will

depending

vary

stances.
may

some

both

virtually

Canada

cases

fying our product lines and markets. Copies
changes
circum¬

the

effect

negligible.

is generally known,
of

between

I960, AND 1959

may

be obtained upon request to Secretary,

Dept. b, Hooker Chemical
Fifth

Avenue,

Corporation, 666

New York 19,

N. Y.

the tax laws

and

the

United

The

growth

improve.

REVIEW

NOVEMBER 30,

payment of dividends by a
subsidiary
corporation
to
the

were

ones

strength¬

was

Both domestic and

...

the

parent.

Re¬

foundation, Hooker

looks forward to further

Considerable

666 Fifth Avenue, New

with

agreements

viding for less than
dividends

countries

made in

progress was

Corporate Headquarters

office,

necessary

...

withdrawn

then be in the anomalous

Tax Treaties With Other Countries

earnings

the
transfer of profits is analogous to

head

drawn

ada.

regular

poration when
branch

new

...

broadened

were

development activities resulted

Canada

1959

Gross Plant and

branch

investments

held earnings to slightly below the

record

owners.

shareholders will pav the full 15%
tax on dividends they derive from
whether

costs,

Working Capital

corporation

business

develop¬

and

combined with increased

activities,

trans¬

are

non-resident

of research

Expansion

ment

productive

non-resident

When

from

Canada

activities

...

search and

high in 1960

a new

Net

other time, I

daresay they would have attracted
much

subsidiaries reached

these tax

almost any

Sales of Hooker and its consolidated

conse¬

made

foreign operations

certain divi¬

made

States

rates

applied

payments

United

clear

the

tax

the United States
dend

made

increase

the

non-resident

CHEMICAL CORPORATION and Subsidiaries

'in

States

terminate the 5% exception. How¬

such

HOOKER

requirement that

without incorporating a

all

thus

States.

they hold a large degree of own¬
ership in the Canadian subsidiary.
future,

this

cover

proposal

United

the

Because of the

pref¬

which

in favor

quence,
a

abroad, the rate for

19i years

this respect.
of

long had

remitted

companies

included

Agreement With

the

policy of withdrawing

applied in the

rate,

were

ment

that

itself.
This

time to increase
and special provi¬

some

nor¬

companies

operating

contingency.

mal business borrowings of Cana¬
dian
individuals
or

final

one

newspaper

is already paying, upon

company

other factors.

upon

mention

there

for a tax credit, which
depends upon the effec¬

rate

the proportion

bur¬

there may be
The degree to

taxes

operating

will

not

reflected

total

cases

the

will

parent enterprise. In¬

some

tries

with¬

increase

the tive

that

Canadian

the

terprise

branch in the other

which

Canadian parent corporation take
account of the taxes
paid by a

cancellation

the

dividends and the

necessarily

by controlled are called. The general purpose
parent cor¬ is to prevent income from being
other
country. taxed twice.
Consequently, the

ticular

special tax

government. Cana¬

for

need

holding tax

dian law also makes provision for

taxes

tax

United

However, the agreement provides

posals do not apply retroactively.
The exemption from
withholding
is

paid in Canada by United States
corporations
may
be ' credited
against the taxes payable to the

the

poration

Non-Retroactive

one

provisions of this agree¬
country agreed to im¬
tax of not more than 5%

dividends

each

ment

subsidiaries

going from Can¬
resi¬

corporations

parent

States

provide for the offsetting of *

taxes paid to

■against the

another government

taxes

home government.

payable to the

Thus, the taxes

HOOKER

CHEMICAL

CORPORATION

hooker
CHE MICALS

PLASTICS

■■'Mi'

The Commercial

(416)

Canada's New Tax Policy
On Foreign Owned Capital
Continued from page 13

portion
after

the

taxes

profits

and

remaining

actually

Canadian

remitted

words,

whatsoever
have
trade

Assuming that

United

the

effective

rate

tax

50%, which is
rarely the case, the maximum tax
could not therefore exceed
and

only

then

that

event

remitted

all

the

unlikely

•

the ..profits

the

Exchange
As

57'&%

parent

Parity

were

company.

With

have

said, it is less ap¬
propriate today than it may have
keen

the

borrowers

foreign

have

capital

scale

same

for

past

Canadian
to

recourse

markets

the

formerly. In the
recent past the heavy inflow of
capital attributable to this latter
as

factor has tended to exert
ward

pressure

value

the

dollar

our

import

up¬

thus

that

had

trade

exchange

and

surplus

effects

verse

the

ad¬

and

em¬

ployment. I might recall that fol¬
lowing the regular annual Budget
last

March, in which the govern¬

ment

substantially reduced its de¬

mands

premium
moved

capital market, the
the Canadian dollar

downward from 5 cents to

little

the

over

cents.

The

Sup¬

plementary Budget has been fol¬
lowed
by
a
further
reduction,
•with

the

Canadian

trading

"United

States

The

the

place

result

will

economy

exchange
gratified that it

derive

immediate

orderly

thq Canadian
substantial

benefits

terms

production and employment.

The

Tariff

"Class

My Supplementary Budget

gave

Third

re-

snecting the importation of goods
of

class

Canada.
tariff

our

reduced

kind"

explain

accords

rates

goods

produced

should

free

made in Canada.

that

entry

duty to

class

imports

kind

not

Under these

ar¬

rangements the definition of goods
that were of a class or kind that
Canada produced was originally
auite

last

broad.

taken

decisions

Canada

operated to
to

However,

decade

the

over

have

been

which

have

the definition

narrow

significance.

time

when

our

commitments

items

ported
-0

the

present

GATT

number of im¬

machinery

undertaken,

were

and
I

proposing to revise the definitions
in

that

manner

Canadian

will

producers

restore

the

position
that was originally intended.
In
so doing I am satisfied that there
-will

contravention

obligation
objectives
receive

under
of

the

our

GATT,

which

the

continue

strong support of the

Government

cerned

There

which
since

With

another

should

there

has

tions

dian

trade

the

with

Let there be

ing about what
have

Canada

Cuba.

our

policy is.

used

of
as

allowing

backdoor

to frustrate the effect of the trade

controls
the

being

United States.

modity
be

mav

Cuba
may

the

now

United

exercised

First,

States

com¬

origin

exported from Canada to

unless it is-of

kind which

still be exported direct from
United

States

Cuba.

should

also

tive.

each

and

such

other

non-strategic

all

seen

perspec¬

including

country,

the

NATO

United

the

allies

Kingdom,

France, Belgium and Norway has
taken any action to impose a trade
similar

embargo
United

States.

that

Cuba

the

has

been

traditional market for certain Ca¬
food

United

exports

the

and

States itself has continued

ship livestock, food and

Cuba and

drugs

in much greater vol¬
the total of all exports

than

ume

from Canada. The most recent

available

ures

Cuba

vvnn

Canadian

cans

provide no evidence of
or sustained increase

the volume of trade. While the

the

for

the

earlier

' \

SECURITIES

the freedom

United

embargo

not imposed until Oct. 19; one
should not be too prompt, there¬

relating

Canadian

increase

the

exports

month

over,

Cuba

October

tween

scales

time

Potomac

hold

common.

allies

in the
defense of Western freedom; -we
are
upholders
together
of
the
are

vember,

declined

trade

our

together

ginia.

1960,

from

its

District

but for all mankind. To¬
gether we have learned to accept
the
implications of a shrinking

rhercial

preferred dividends increased
11%. The annual report remarked, "This was a satisfactory
relationship with respect to the
increase in expenses as compared
with the increase in revenue in

world

ernment agencies and the Govern-

part to the high efficiency of the
modern generating facilities and,

estimated
which

cause
of freedom, decency,
hu¬
manity and good faith in dealings
between nations. We are striving

shoulder-to-shoulder
better world not

build

only for

the

and

bilities

cast

Where

the

find

joining

forming

countries

member

Canada-United
Trade

and

its

From

similarly

Canada-United

Committee

Joint

tional
added

States /Joint

Through
these channels we speak to each
other
at
the
government
level
utmost

with

lose

frankness,

sight

but

have

interests

serve

that

shall continue to do so,A-

Canadians

are

neighbors

all the world.

is not at
be

have

stated

trade

and

these
trade

regard to Cuba at
make

clear

basis

for

the

some

Cuba

has

the

loans

expressed
in
that
Canada's

its relations with
to

make

States.

quick

expense

Canada

special inducements

incentives

policy with
length to

there

profit at the

United

offering
no

been

commercial
of

fear

concern

about

some

that

newspapers

chief

facts

exports to Cuba and

other special financial

arrangements

being

are

considered.

these

economic
of

are

commercial

considerations,
important

course

political and international factors

must

Canadian
means

situation

the

Government

the

shown

of Canadian

overlooked.

complacent
in

controls.

not

about

Caribbean

the

by
the

operation

military and strategic

Our

position

United

Nations

NATO,

and

else¬

where does, I think, make it clear

where

stand

However,

our

the

experience

ferent

from

States.

right of
ernment

policies

Offering

Just

the
to

that
as

of
we

United

the

States

determine

towards

Cuba,

the

Gov¬

stock

—

with

Brothers.

$23.50

Since

sued

own

know

,7771

"777%

and

'offered;

50,000

being
hold

who

company

after

the

approximately

1,430,504
standing.

the

43%
be

owns

stock

Loan

and

for

Rio

United

Hondo

Association

real

for

agency

coverage

the

currently

1953

would be

reflected

ning

lenders

Prv

"Ryyo

kjLt/lil

V_y(J.

JLvUo

•.

AdmilS F aFlIierS
'><

EHHHHy§||

;

the

due

ap¬

for

$2,278,946.

general

reserves

...

1955

(the

and

later
300

1959

being

per

an-

resulting
■„

from

the

depreciation,

were

increased

that without these

1953

might
in-

com-

the

1959

reflected in 1959

was

earnings and one-third in 1960.
determining the amount of the
increase, the commissions in the
District
of
Columbia, Maryland
and Virginia granted a 5,85% return on
an
end
of
period rate
base.
dent

Philip H. Blaisdell

Lawrence Hickey

CHICAGO,
dell

and

111.—Philip H. BlaisLawrence Hickey have

admitted

general

part-

ners *n the Urm of Stein Roe 8c
Farnham, investment counselors

°f Chicago and New York, it has
been
joined
curity
been

announced,
Mr. Blaisdell
the firm in 1954 as a seanalyst. He had previously
with Mathieson Chemical

Corp. in Baltimore and the Machinery and Allied Products Institute in Washington, D. C. Prior
to that time he

was

economics

University.

instructor

Northwestern

also',served

economist for the Departments

State,

Justice,

and

Labor

of
the

capital.
two-thirds

ended

before

in earnings

to this factor; the
share in 1959 was 240.

since

About

earnings

esti-

pounded.

consolidated

months

the

1959

estimated

crease

forma

has

savings, earnings for 1960
approximate $1.72 showing

escrow

1960 amounted to $7,122,-

were

the

been

about

1956,

165,000

Oct. 31,

propriations

around 4%. Based on es-

$1.00

8%.

accelerated

amount per

re¬

•

net

1960-

in 1958
The div¬

by $1,750,000, and in 1958 by $1,-

operations, and in ad¬
as

in
of

Earnings

in¬

and

for

and the tax savings, begin-

num)

South

and

both

increases

equivalent

cap¬

income

770

earlier

but

With

However, this gain

Sav¬

growth

normally required

licensed

pro

con-

the

1953-1955,
$1.32.

rate increase

Total

average

large

earnings for I960, the
compounded rate of
share earnings since

average

Savings

fire

protection

estate

high

except

remained

mated $2.00

lated

new

price earnings ratio is 17.8
compared with the average of 18.6
for 135 utilities (based on Dec. 27
prices),

Columbia.

years,

rate

out¬

89.24%

Gate, Calif. It also operates
surance

however,

during

use

been raised in each later year and

sale

glewood, Calif, and all of the
stock

the

they receded by 10.

level

ings and Loan Association of In-

ital

District
years,

idend

rate

company

capital

during

seven

when

proceeds to

of the

the

The

serves

351/2,

I961 (the 1960 low beinS 27): The
yield based on the $1.32 dividend
js 3.7%
compared with industry

suburban
area,
it was
participate in this growth.

the

past

remaining 600,000
already
outstanding
sold by a number of

stockholders

company

stock

good

population
the decade,

during

the

timated earnings of $2.00 for 1960,

the re¬
sult of more favorable regulation
earnings
have
made
a
better

The

are

the

recent

be available for general corporate
shares

85%

price

recent

the New York Stock Exchange

earnings remained irregular prob¬
ably because of strict regulation

being is¬
Financial which

the resultant

funds

purposes.

of the accelerated depreciation
provision for tax purposes." As a
result of excellent control of expenses, earnings per share were
$1-79 compared with $1.57 in the
previous year, despite an increase
of 24% in the amount of stock
outstanding.

part of the post-war period, share

new

United

will add

tinued to be favorably affected by
the benefits of continuing the use

some

other

suburban

However,

priced

in-

expense

showing, increasing in each of the

are

general

stock

The

the

able to

depreciation

siderable

share.

the

number

its

of
Washington declined
by about 7% but (as was the case

by Mr. Fleming be¬
Club
of
New
York,

650,000

gener-

favorable trend in fuel

and freight rates and to
increase
in
electric
rates.

the

was

145

Equity

Tntal

cities)
gained

agency.

respect

138% in the past decade. The pop-

today (Jan. 26) by an underwrit¬
ing
group
headed
by
Lehman

United

Millions

The/company has shown
growth, revenues increasing

capital stock of United Financial
Corp. of California is being made

dition

relations with Cuba has been dif¬

••.

Stock Offered:

world.
our

$40

5s early in

„

common

United Financial

will

from

approximately

Preferred stock

1961.

unlikely that they

forma

pro

Deb.entures

address

Canadian

roughly similar to, if not
than, those for 1959.

smaller
I

all

issuance

ulation
*From

further part, to a

The

„

Ameri¬

our

some

ally

ship that befits the best neighbors
in

following

December,

abiding friend¬

Maryland.

cherish and will

maintain

but let there

own,

doubt that for

can

our

are

follows:

;

their
independence;,,,£hey)v are
jealous of their sovereignty; they
are a self-reliant people. Our de¬

cisions

will

proud ,of

very

unit

million first mortgage

fundamentally,, co/nmon. I am

sure

and

kw.

Capitalization
basis

of the fact that

are

185,000
to the

another site

system in the spring
of
1962, and a 250,000 kw. (or
larger) unit is planned for completion by the spring cf 1964, at

Defense.

Columbia,

revenues

attributable

was

prices

1958

While

member of

of the District

which

1959

System generating capacity last creased because of more property
June approximated
1,412,000 kw. investment and interest and precompared with the peak load cf ferred
dividends increased be1,272,000 kw., indicating reserve; cau:e of the greater capitalization,
capacit- of about 12%. An addi- Federal income taxes have con-

Affairs.

Economic

com-

15%

only

bia, 28% in Maryland, and 3% in
Virginia.

joint

the

electric

and

gained

revenues

and

obtained in the District of Colum-

Committee

establishment

have been

the

States

from

are

residential

Fifty-nine per cent of

I have had the privilege of

being

ment

committees of both governments?
For the past three and one-half
years

revenues

customers;
and
of
this
amount, 16% and 4%, respectively, were obtained from U. S. Gov-

of two ad¬

governments

in the

are

you

area

1,464,000,

us.

upon

the world

,764,000

services

responsi¬

by destiny
all

about

Columbia, 679,000 in Maryland
and 21,000 in Virginia.
Some 94%

our own

common

people

18,

October

increasing 12% (in the previous
five years, the average increase
was 8%U With the aid of the rate
increase,

the

year 1959 made an excelshowing with the peak load

while operating expenses, interest,

fore

was substantially lower
November. 1959. When
figures become available for 1960

than

The

lent

Jan.

No¬

Population

original cost, plus construction work in progress, the
formula being the same as in the
1955 rate increase,
ly of net

en¬

serves

comprises the entire District of
Columbia,
substantial
parts
of
Montgomery and Prince George's
counties in Maryland, and a portion of Arlington County in Vir-

aspirations and

which

Power

city of Washington, D. C., and
adjacent areas; the territory ineludes about 643 square miles and

dust

are

Electric

the

be-1-

comparison with

those great values,

interests

.-U.Potomac Electric Power Co.

countries

two

our

the

time

from

over

the

friendship and

level and

our

ELY

their

forcement of this embargo. More¬

will

OWEN

difficulties

and

arise

ever

States

together

is
a
benefit
of neighborliness. In all things we
must preserve a sense of propor¬
tion. Such differences of approach
of

boon

the

part -of

was

Thursday, January 26, 1961

PUBLIC UTILITY

de¬

own

our

matters.

discuss

can

problems

trade

figure for October, 1960, was subtantially above the monthly aver¬

the

such

Conclusion

fig¬

dramatic

fore,

reach

is well known,

never

cisions

our

restric¬
Cuba of

I
think it
is
quite important,
however, that this peaceful trade

clearly

misunderstand¬

intention

Cana¬

export

Canadian goods of a

The

right

our

are no

nature.

apparent

matter

the

which

been

permit is issued.

The fourth and last feature of

comment

misunderstanding about it.
referring to

strategic significance;

policy is that there

there

subject

determine

export of goods con¬

has

Apart

Cuba

circum¬

case

if not, an export

and

Trade

Second,

The

each

whether the

Canada.

stances

the

disadvantage of Canadian
producers, as compared with the

embargo.

year,

definition

the

certain circumstances have strate¬

tion

the

evasion

tight control is exercised
on
the export of goods such as
aircraft
engines which may in

age

revise

provides

of tension anywhere in the world.

notice of the Government's inten¬
to

Cuba

ammunitions, mili¬
tary and related equipment or
materials
of
a
clearly strategic
nature.
This course is in keeping
with our policy of refraining from
the export of such goods to areas

Kind"

which

Canada's

ment of arms,

any

Imports

fears

have not authorized for export
from Canada to Cuba any ship¬

gic

that the United States will respect

nadian

the

and

taken

manner.

with

government welcomes this

markets

and

parity

now

dollar.

development
has

dollar

States

basis

that

with

backdoor

the

voiced

policy

for

there

for

been

dividends to the parent company.
income

with which Canadians and Ameri¬

other

payment

and,Financial Chrdnicle

This

based

"pruinvestment" consisting mainwas

Mr. Hickey became associated
with Stein Roe & Farnham in 1954
account executive. His previous
business
experience
was
with Longstreet-Abbott & Co., a
as an

st.
f.

Louis
„

commodity
„

counselling

sedition

mem-

'
s, m addition, a me*.
ber of the Chicago Mercantile Ex-

change from 1948 to 1953.

Volume

193

Number

6024

The Commercial and Financial Chronicle

(447)

Connecticut Brevities

Will

disadvantages of unfettered free¬

Exchange Restraints:

dom

its

(invest

It is to be

Company, Inc.,

Nor-

walk,
manufacturer
of
electric
signaling systems and devices, has
produeed through its Educational
Equipment Division what are be-

in the Far East and
South East Asia countries.
Perkin Elmer's agreement
is with Hitachi, Eta. With whom
it will form a jointly owned concern to cooperate on research and
development of scientific instru,ments. In'addition, Hitachi will
import
Perkin-Elmer
scientific
equipment into Japan and PerkinJEimer will export Hitachi instru-

lieved to

the first

mobile lan-

laboratories.

guage

housed

Two

specially

trailer-

vans

schools

which

will

than

units,

constructed
visit

250

cities,

contain

all the equipment found
typical- school laboratory—
teaching-iconsole, student-booths
and a library of tape recordings
representing
the
most
widely
spoken languages in the world today. Each unit comprises a complete classroom on wheels.
in

equipment

ElecInc., is being formed to
manufacture military and civilian

Hartford's recently
opened Bramard Industrial Park,

Onerations

Product^I.

uperations

W»are

The

industrial

park contains

175

located at the confluence of

acres

eight

major

and

expressways

Brainard Field,

adjacent to
the city s

Conn.

has supplied air conditionmg and vent systems for some
of
Hartford's
largest industrial

buildings.

Pratt,
of

Read

lis

Inc.,

manufacturer

keys an
and actions and organ

0
piano

tronic organ

keyboards. Keyboard,
Inc.'s production facilities will be

Pen

;The acquisition

company.

broad

RpoH'e

Carolfna ilantlnd Will
^vision if the narTn

transouth
onerate

PruH

part

program

expansion

being undertaken by the Ivoryton
firm.

Andersen

Laboratories,

Inc., of West Hartford was offered
to the public for the first time
in

December.

ganized

factures

and

The

1951,

company,

designs,

or-

manu-

sells

high precision
delay lines which act as
data
storage elements in various elec¬
tronic
now

circuits.

used in

electronic

Delay

lines

are

missiles, in radar, in

computers

technical devices

other

and

civilian

for

and

Britain
Skinner

tion's
ties.

changed

ner's

name

Industries

and

Paul

its

of the

scope

present
Mr.

corpora¬

activi¬

future

Rogers, 'Skin-

president,

company

rpfldv

the

to-28

aircraft which have al-

passenger

ordered

heen

Chicago

HdlicooterAirwavs^and

Los

An-

7.7^ ?J!? "uf_ ^
^lrways^jo^ruei y&iyjn.ine

ices

exoected

also

are

adoot

j^s are aiso expeciea 10 xioupt
^ne ^'b,L ^ ln wnicn case.it will

were

its

the President. Because the Sikorski helicopter produces less noise

explained
that
activities now include

is
js

undoubtedly a wise move. It
j?reat.
great nitv that those who ad^ thQse whQ ad_

a
a

holdings,

such matters did not

gold

^ed

six

months

least

deposits

into

movement will

been

—•

TWo Connecticut companies,, Fenn

Manufacturing

Co.

Newington

an<? •p®rkm"E-me^ ^°rp* of Norwalk, have recently entered into
licensing

agreements with Japafirms. Fenn Manufacturing's

agreement, to be signed early in
196i# wiH grant rights to Komatsu
Mfg. Co., Ltd. of Tokyo to build

vnoV.

•

\ ^

a."

oiifnmn

loo+

when uncertainty

ilfSpir

*1—

•-

increase

the

-P

OUUP

•

about the

TULSA,

vOkla.^Parker,

new■ "'
3
..UHUKCl!)

Ford

WILU

alOlTie

OlllCeS

171

T_
L.

c;e

position to increase the extent of repatriations by fixing an earlier *
time limit for the ban on Ameri- ~
can holdings of gold abroad.
a

President

firm,
cording

f iustified delay

goni,

r;d

g -time

Tulsa

invest¬

ment

banker,

was

re¬

of fire

for
Go,
Inc., in Tulsa.

manager
Blair

It was prbbably because of this politically easier for the Demo-....
unnecessarily -long period - given cratic Administration to proceed-

further m the same direction.

until

cently

o a

Mr. Rowe, a
1

taken by a Republican ^
should
make
it"

was

Chairman.

Administration

U^mcu UCWJ.

ac¬

to
Leslie P. L.a-

The ot+he.r tid%°ftbe ?.ictui?ui!

three weeks of grace for instances, that it

the

John L. Rowe

Mr.

Rowe

t.\*

ibdJd' ,charge 0f the new

. w,u

■

that

seems

mearure

ing

cu. \j tf ± •
AA/lfVi
Trv\7
VV ll/il vycXill. Ill V .

gold
sense

rush, so that in a negative
it produced a useful effect,

restrictions on current transac-; ^
tions end on capital transactions,
^ would be a thousand pities if
the United States, of all countries, tti r
ever felt impelled to defend the X . .
dollar by means of restrictions 7

.n Texas and OKlahoma.

LOS

ANGELES,

Jr.

Oscar

Calif

has

associ¬

ated

thp

with

certafn

effer-

There is bound

evagitn

amount of

and its extent will

denend

nartlv

nrJ administration'^
failifre in strengthening
oonfid Jnoe in toe dollar ° Should

Inas

the

cess

sue-

it resort to

measures

which would

dollaf

eivfrise

department at

give rise to a dollar scare a la g
to a
scare, a large

their

proportion of holders would pre¬
fer to retain their holdings, espe

of¬

new

fices

609

South

Grand

dally as in a great many instances
such holdings are difficult to
ac
.

rt-u:uuc-Kraft
Mr.

Indirect

rprpnfi„
.

Judging

w1 in

Gold

Ownership

the

increase

TV If

■

•

TTT'j.1

X dXliC,

AA/^p}TlTPI',

jnvestment

added

YiQrir.nn

the

years

making

influences

William Walters Opens

instability of exchanges. Unjegs and un^d far-reaching measfor

taken

are

dollar and
cies

safeguard

the

other foreign curren-

agajnst shocks caused by sud-

den wjthdraWais if seems

department.

that the

(Special to The Financial Chronicle)

LOS

ANGELES,

Walters, Jr.

Calif.—William

is engaging in a se-

curities business from offices at
3923 West Sixth Street.

excluded in The
°f investments in South AfAdmittedly- there

Japanese Securities

gold

are

mines in other parts of the world,
but any substantial

American de--

equities would
prices to prohibitive

these

mand

for

drjve

their

Mitchum, Jones & Templeton.

Exchange

bank stock

greatly

°f

Jackson & Curtis, 369 Pine Street, levels
owing to the
limited
He was formerly a partner in' amounts of stocks available.

CHAS. W. SCRANTON & CO.

securities

has

...

„

Some of the

•,

•

YAMAICHI SECURITIES COMPANY

capital invested in

likely to be
securities.
them, Swiss and German se¬
is

abroad

of NEW YORK, INC.

curities

are

countries

considered at present

to be the most attractive, but
are

anxious

Brokers and Investment

both

discour¬

•

■

the influx of capital and con¬
ceivably they may take measures

Bankers
.

age
to

that

end

addition

Affiliate of

those

YAMAICHI

already taken. In any case a flairYork—REctor

2-9377

Hartford—JAckson

7-2669

New

Fay
and

The

indirectly holdings of gold.

rica

SAN FRANCISCO, Calif. — Herbert M. Hanson, Jr. has become
associated with Paine, Webber,

foreign

recent

during

Pa-

?wjtch t!nto. eqtutaes reprwentmg

case

VV LUDci

AnvrnTcrirt

• (Special to the p.n.nc»l chronkxb) ■
SAN FRANCISCO, Calif.—Frank
L. Higgins has become associated
with First California Company

Incorporated, members of the
cific Coast Stock Exchange.
ways w0rk out in accordance with was formerly with Hooker &
the Public interest. Lar§e s.cale in charge of the insurance

risk oannot» be

p^oi-rip

ether hand, it would be no major*

disaster if the internationa1 movements of capital were to be Placed'
under some de8ree of control. The
examPle of the Ford transaction
has shown that unfettered freedom ln that sphere does not al-

ures

Tony Kraft
the American demand for South
?/fern'
African
gold mining
shares, a
Meyer
a'ld P/mr thereto was Sales Man- large proportmn of American
a®er or Oscar F. Kraft & Co.
holders of gold is.
^
.

what

seen

rule will

npw

tivelv enforceable

be¬

come

remains

pvfpnt

Kraft,

(Tony)

Teletype NH 194
■

has

ToVlIT

wel

taken by the outgoadministration nipped in the
bud a threatening revival of the

New Haven

it, became compulsory to give up the ban on gold holdings abroad
their holdings. There is no par- is the first step on the slippery
.tieular. technical argument against slope leading towards exchange
making th^ ban effective1'imme- restrictions. It is only the first
diately> possibly allowing two or step that is difficult and the fact

lug of gold. Even so, it

l\T*54Tf"

icnqr

Members New York Stock

abr°ad nearly sl* mon}hs .before represented by^ the ieeling that

the

(

mMNFrTiriiT

clear that tit

diate effect of the.measuie was
WU1 Exchange Kestrictions Be
Parker, t^ord offices in Tulsa, in
ndt very.impressive.' After somh
Pursued?
the Atlas .Life Building, which >is
tween
slow
ground
transports- selling on the first day .the bulit is-the second Oklahoma branch estion
and
fast, fixed wing air- lion market turned hesitant and
*rom till, point ot view it is
„
fi
planes.
there was buying as well as sell- necessary to discriminate between
^
This office gives Packer,Ford 11

SECURITlESj
)

admin¬

ban
other bans,

dollars.

if"rtheHr by giving holde™ °* gold

Primary Markets 'ws ^, <

by
it

intention

'©very

during

switched into European
<

make

new

the

^ VILLI lbu VV C V .""X
*A-f Pqy»1t/2>t» T?y\W1
The' ^X X-cXXJA.il/Xj XMJX U.

will

'tige Of the dollar. However, it is ministration would be in

gold
ft'

event wnicn was not exactly neip-

H.M.Hanson With. ^°rst

may

American

constitute

support

banWs^^^home ^offices16?!
^to^catse"wUhdrawat'of "funds ?DaUaS' haS recently elected
to cause withdrawals of funds
Rowe
pomtoi W^wof pr£- komtae
•
Tulsa, Vu
-

appropriates for'.use in city
and can fill the gap be-

♦

the

some

abroad

switched- back

would
spared the spectacle of
ag0

represented

money

t h

centers

0een

Division

hower s decision to ban private between now and the time limit
American gold holdings abroad for the realization of the gold

than turbine powered aircraft it
seems

exclusively
to
chucks.
However, it was pointed out that
the well known and highly respected designation "Skinner
Chuck" will be retained by the
company's Skinner-Horton Chuck

istration

-gold Iholdings
^should

Otherwise

seems probable that inherent strength of the dollar.

h? ons>

measures—
are
in¬

measures

tore, that, should the

enforceability, and the alternative resort of indirect

OArnriAT

merely amount to futile attempts
at taking such measures with im¬
punity. It is to be hoped, there-

intended—but

are

unsound

tended.

ownership of gold by purchasing gold mining equities.

be USed On OCCaSlOU to transport

nese

and

measures

<:if

major disaster if international capitdl move¬
controlled. Commenting on the gold ban
extension, he

a^^i^^a^^irci^t

product manufacture and sales not

ri,

unsound

Restriction's

useful against speculative an¬

ticipation of -unsound

Company of New

Precision

the

reflect

the

Chuck

has

ments

it would be

better late than never but it may
rt
t/well be asked why, once the decinirpmft uS*on
was taken, it was deemed
necessary to delay its execution

nffieiflic

California

purposes.

Skinner

f~reien

vestors

military

with

tare

by .'going

_•

Stock

lrpvfi -hn« apmiirpd Tfpvhnard
keys, has acquired Keyboard, Tnn
Inc.
of
Chicago, which makes elec-

fronofpyvprl

fifty, t
®

Cor-

Aircraft

...

onf

demonstrations

and -Company,

Ivoryton,

TTnitPri

;

Norwaik

measures—when

he says

+Via

}freS' *?£Lto1 smaller plant in P'
also operates a Ventila^ting which

and office

unsound

have

Hivicinn

not

gold holdings

fidence tin the dollar.

approves tof and,-inci¬

months ago,

some

|fath of exchange restrictions instead of facing up to dollarstrengthening policies. The writer, noted as an expert 4>n foreign
exchange, -can see restrictions against speculative anticipation of

moved to Stratford,

was

once

nniooto

n„A

Administration will not follow up the

oated when Manning, Maxwell
light until the eve of his
and Moore's industrial^ control departure Had the ban been imdivision

the ban

will

restrictions

alternative to pursuing poli¬
cies calculated to strengthen con¬

down the

vised him

m^or airport but now Sikorsky Aircraft of Stratford, a
for,corporatet and private div^on of Xh,«ed Aim^ Cor-

used

50 000

new

gold holdings abroad, which he

dentally, suggested in the "Chronicle"

was

middle of this year in,

U. S.

Evom

nroducts

are

Einzig Jiopas that the

ban

comments

Ironies,

Capitol Ventilating Company bethe first fully established
company

Dr.

maintains sales agents.

corporation,

new

behind

as an

ments to countries where the U. S.
-company

shelter

such

By Paul Einzig

—

certain

elertronir
electronic

came

hoped, however, that

admanistration

new

seek

and market Fenn's metal forming

abroad -outweigh

advantages.

the

Edwards

15*

over Berlin
would lead Americans to the con¬
up

clusion
nent

the

that

conflict
the

European

SECURITIES CO., LTD.

TOKYO,

JAPAN

conti¬

general, and Germany in

particular, is not really a healthy
place for investing their capital.
Allowing for all these consid-

111

BROADWAY, NEW YORK 6

COrtlandt 7-$680 ;

(448)

The Commercial and Financial Chronicle

THE MARKET.
BY

WALLACE

nies

AND YOU

acquired

only

STREETE

bit

Overhead

resistance

market's

leaving

week,
brink

reached

the

level

the

stalled

the

rally again this
industrials on the
that

had

encountered

resistance

that

kept

out

continued

high, so
profit-taking that

the

undue

absorbed

was

trouble,

with

leaving

the

running

multipoint

occasion.

Scrambled

Electronics

unit

should

Otherwise,

electronics

tried

recapture their old enthusiasm

price

the

were

reactionary

even

the oils seemed to

occasion and

out of steam at least

Steels

showed

have

run

temporarily.

life

nor

better than

$3 net this

Technical Factors
The

rally late last

carried

the

average

initial

session

had

summer

closing

641.

industrial

this

there

had

been

for

the

closing figure. It re¬
fused to give ground
importantly
after the rebuff, which

the

hopeful

For

the

case

rails

the

was

among

signs. I

far

was

waverings

peake & Ohio than

Chesa¬

any group ac¬

tion

that killed off its rally. An
advisory service cast grave doubts
C. & O.'s

over

ability to retain its

$4 dividend if

nexing

the

it succeeds

Baltimore

an¬

Ohio.

Despite company protests that this
prediction
was
inaccurate,
the
shares

time for

pathetic

had

easiness

The

was

sym¬

the

other

in
group to
interest in the

not

cide

necessarily at

with

They

those

the

issues

1961

that

upturn

ticularly autos
are

little
had

the

for

those

of the

sparked

to here, par¬
where shutdowns
up

underway until dealer inven¬

tories

whittled. While

are

RenominatesReilly
F.

the

re¬

also

were

Steel
bleak

sales of the

less

standard

pinched off.

prospects

since

the

even

opti¬

hope for

turn

decided

any

operations

before

up¬

March

at the earliest.

Aluminum
show

able

were

Location
It will be

ports of Galveston

Christi,

Edward

All

and

Company.
The

Stock Ex¬

Joseph F. Reilly

will
Feb. 13

protect
the

Montgomery Ward

Aluminium, Ltd.,

majority
O.

opinion

position

dividend, as the
But they caution
succeeds in

hold

company

that

taking

that
its

avers.

even

the Balti¬

over

&
Ohio, it will be some
before the economies of the
merger will become apparent and
more

result of

contract

concellation, since it is
generally regarded as being in po¬

sition

show

favorable

orofit results this year than it did
last year.

years

during

that

the

will

Shares
rated

time

the

dilution

affect

of investment

adversely

earnings statements.
the

with

common

still

are

quality and,
most

other

neglected rail shares, offer a lib¬
eral 6% yield. For last
year the
earnings reported
by
the
road
to

came

$5.15

share, covering the

dividend

quately.

The showing

one

lower

requirement

the

face

was

the

ade¬

good

sharply

earnings

reported by
business generally.

railroad

Despite

the

airlines

times,

not

terest
this

has

surprising

strength on real
developments. None

fancied
more

and
was

high-flying

than
Interna¬
tional Business Machines and here

the

cause

real—a

was

50%

dividend proposal. The
it soaring for a peak

stock

gain of

than

points

sent

news

within

minutes,

too

much

for

market

in¬

peak.
Air transportation is

one

of out¬

standing growth, hampered in the
by—among other things—the
ligh costs of shifting to the jet

oast

The

preference

for

from its pending
Capital Airlines to
make it the largest trunkline in
the country. Some of its
problems
jre

part

evaporating

future

even

steadily, and its
brightened further

the prospects of a recovery in
business
activity generally that
oy

the best the

old shares did

reading of 603.

The

ran

past that by
hundred points.
IBM

stock

go on

splits

issue

for

stock dividends.
paid a 3-for-2 distribution in
1959, a 2-for-l split in 1957, a 5in

nancial
note

200,000

staid

called

for

publicly,
has

1925

outstanding

last

stock

make

feature

split

was

Mergenthaler
on

near

future,

payout currently
plus 6% in stock.

50c

num¬

au¬

were

Linotype

strength,

and

drug

which

one

Plough

occasion proved to be

market

fireball, after having been

of the

more neglected in the
when others were popular.
Plough's popularity stems in part
from its position as an
important

group

factor

household

cosmetics
than

which

the

products

held

ethical

drug

100.50%

lines

Plough's record of higher
year

intact

last

its

here is

outlook, and

the

interest and the

the

subord¬

nor

redeemable

are

1969, after which

debentures

will

op¬

tionally redeemed at prices rang¬
ing from 102% to 100% and the
subordinated

debentures at prices

ranging from 103V2%
plus accrued interest.
Net
the

proceeds

issues

general
Ward

will

Credit

available

the

from
be

funds

100%,
sale

added

of
the

earn¬

after

record

baker's dozen of compa¬

the

Alaska and
I

Alaska

We
Siberia at

don't worry.

not
directly
Cuba, but I
once
taught in and owned a col¬
lege in Guatemala. I know that
the Spanish people get easily ex¬
cited. They love to threaten and
fight by propaganda. This is what
Castro is now doing.
We should
not take it too seriously.
I feel

personally
much

that

about

Eisenhower

President

got

frightened too easily and made a
great mistake by breaking off dip¬
lomatic

relations

Wealth

Cuba

the

Cuba

rich
marvelous
of rain in

It possesses
enjoys plenty

right

seasons.

flooded

with sunshine. Neither Florida
Gulf

the

fear

Coast

has

down

sections.

will

great

nor

anything

After

Cuba.

from

these

Cuba

.settles

asset

could

well

develop another boom in Florida
that President Kennedy

investment of $35,000,000. The
parent will contribute an addi¬
tional $15,000,000 to the affiliate's

capital

winters at Palm Beach.

prior to Feb. 7, 1961.

parent

company

sure

will work out

tion,

sales

There

the

fiscal

year

ended

Feb. 3, 1960 in excess of a billion
dollars. Branches are operated in
all
major areas of the
United
States and include nine mail order

houses, 542 retail
catalog stores.

and

616

has
634

been

West

formed

are

chief

one

Russia

Aetna

with

Flagler

offices

Street

securities

Securities

market.

Castro

now

Just

do.

Cuba

relations,

will

think

now

playing
Russia
against the U. S. It is a great
game of poker and I am ready to
bet on President Kennedy. Hence,
am

perhaps

bullish

Cuba

entire

the

and

United

States.

Emerson Elec, In

Com. Secondary
A

offering

secondary

stock

common

54,033
The

Electric

Manufacturing
(St. Louis, Mo.) was made on
Jan. 25 by a group headed by Carl
M.
Loeb,
Rhoades
&
Co.
and
Co.

Scherck,

Co.

Richter

$55.25

share.
The stock is

being sold by D. J.

liquidation
the

Electric

Lighting,
316,119

Inc.,

common

standing

received

when

Emer¬

Day-Brite

in exchange for
shares of Emer¬

total

Electric

Emerson

The

June

acquired

Electric.

son

which

and
last

son

Klingsick, former

2,205,191

out¬

was

Dec. 31, 1960.

business

Elec¬

Emerson

tric, incorporated in 1890, and its
subsidiaries

divided

mercial

production
work.

into

and

com¬

military

Commercial

prod¬

light¬

ing fixtures, fans, air conditioners,
electric heat devices, bench saws
and arc welders. The military de¬
fense work of the company's Elec¬

tronics

Avionics

and

Division

in¬

cludes

research, engineering, de¬
velopment and production of com¬
plex electronic systems, missiles
air-frame

and

structure^.

Consolidated

sales

net

the

ended Sept. 30, 1960 totaled
$125,468,000
and
net
earnings

year

were,

$6,000,000 equal to $2.80
share

common

calculated

per
an

it.

net

common

$2.25

and

reasons

Castro

one

Russia

with

war

knows

of her satellites

sales

were

earnings
share

$112,597,000

available

stock

were

for

and
the

$4,530,000 or
average of 2-

016,293

against her. Do not forget that
Lyndon Johnson, our Vice-Presi¬

ing during the period.
25c

that Cuba holds the

gateway to Texas. It is silly
think
of
Russia taking overwith

forces
in

our

being

the

Guantanamo

among

Bay

the strongest

world.

quarterly
a

fiscal

1960

share
stock

mon

the

common

cash

was

outstand¬

dividend

paid on the com¬
31, 1960.
For
ended
Sept. 30,

Dec.

year

dividends of 95c plus a
dividend were paid on

stock

each share of

common

stock.

What Kennedy Wants

business.

Corp.

may

diplomatic

restoring
wihch

would alienate all of Latin Ameri¬

Cuba

Officers are Joseph C. Douglass,
President; Frank C. Gardner, VicePresident, and Durand A. Holladay,
Secretary- Treasurer.,
Mr.
Douglass was formerly with Atwill & Co., Gordon Graves & Co.
and

bull

bought off—or3 shot off. Kennedy
could make a spectacular play by

several reasons, but the
is that such a war by

not

Cuba,

get

Douglass, Coffin Opens
MIAMI, Fla.—Douglass, Coffin &
Co.

used to

average

ocean

possible that Cuba
develop another

very

dent, knows

stores

our

2,146,785
common
shares
outstanding
during
the
year.
In the previous fiscal year,

several

would

for

a satisfactory solu¬
he knows Cuba from his

For

one

world's

It
could

defense

did.

wonderfully

Co.,

interest

.but

ucts include electric motors,

counts

little

market;

stockholders of Klingbill Real Es¬
tate
Co. which is in process of

soil.

of
Montgomery Ward &
Inc., which owns all of the
corporation's stock,
representing

mar¬

the Kennedy
family is stock-market minded. It
always was and surely will be
during the next two years.

stock

Emerson

2,000

closer

are

country.

February 1960 for the purpose
financing deferred payment ac¬

good

Ex-President Eisen¬

had

hower

have

can

1962.

already

corporation's parent, Montgomery
Ward & Co., Inc.

organized

Biller and O. W.

Montgomery

was

adjustment." He is willing to "let
recession come and get over

Russia is friendly with Cuba?

the

corporation

Yet

Moscow.

about

ferred payment accounts from the

The

controls

miles from
Vladivostok. Siberia, thee astern
terminus of the Siberian Railway.
So why should we fear even if

Corp. and will be
purchase of de¬

for

from

only

know

interest.

accrued

inated debentures
date

debentures

prior to Feb.

engage

run.
It is also
actively
acquiring other operations to ex¬

pand

and

priced

are

Neither debentures

better

tion.

each

de¬

and

along with adverse publicity
from
a
Congressional investiga¬

ings

$25,-

and

largest retail mer¬
chandising organizations with net

Fireball

favorite

accrued

subordinated

the

Market

nine-year

able

99 %

debentures

The

vear,

year.

also

independent

small

19,875,000
18,268,943

increased from

thorized of which
as

fi¬

1,050,223

and

employees, the

another 5-

the

feel

except

sold

stock sales to
ber

and

Even

manuals

that

1956

1954.

the

its

The

and

for-4 split in

for-4

since

ones

than half

celebrated

was

present

The

increase

1981

1981 is being
made today; (Jan. 26) by a group
headed by Lehman Brothers.

To some, the $3 estimate
of profit for last year could well
increase to $5 this year and

dend

000,000 of 5V4% subordinated

will stimulate the demand-Tor air

profit-taking

The company had taken
similar
action last year, but at that
time

service.

from there in
subsequent years.
only able to
United in a few quarters is even
pare the peak gain by half a dozen
considered a candidate for a divi¬
points.
with

tures

United

with

off

coun¬

By airplane Cuba is about 6,000

Feb.

during 1961 as a part of the "re¬

but

Distance of Cuba from Russia

miles

better

Lines, which seems to be
something of a preferred issue by
analysts and has been -hovering
Dnly a shade under its its 1960-61

merger

While the averages
faltered, in¬
were able to show

were

that

Canal,
written

been

Cuba,

controls

debentures comprising $25,000,000
principal amount of 4%% deben¬
due

higher than they are today.
His friends may let prices fall off

gateway to the heart of the U. S.

offering
of
$50,000,000
Montgomery Ward Credit r Corp.

Air

stems

dividual issues

predictions

yet been stirred up in
An exception is United

area.

age.

High-Flying IBM

many

has

wanted

was

Therefore, you can be sure it will
not be Russia or any other enemy.

bentures due Feb. 1,

Airline Issues Lag

site

Panama

our

latter

try

Public

it.

this

since the Atomic Era. What

Debens. Offered

The

extreme

time

one
on

base at Guantanamo Bay
southeast end of

our

Cuba, about 50 miles east of San¬
tiago de Cuba.
This is Cuba's
great shipping port for sugar.
.Ai

Ameri¬

change

the

was

the

Tex¬
Corpus
leading

our

and

Or¬

ports, could be closed.
anticipated when we

this

built

Krabel,

well

This

shipping

Mississippi River,

Mexican

also has the added help of an end
co last year's
penalty payments to

all

Co.

1962

con¬

New

for

have

Alcoa

city

our

outlet

Mabon

can

the

will

Mexico.

Yucatan,

Cuba

the

p p n a u

and

that

leans.

and

Fred
u

the

means

components of the rail average to

lately.

S.,

were

keep it heavy, but nothing drastic

firmer

Dow-Jones Averages in

the

have

ket in

It may truly be said that

Gulf

governing

Cuba

that Cuba is not

seen

controls

been

trol

the

and

just east of Florida; but is at the
mouth of a body of
wat^r between

West,

the way so

out of

get

good market in 1962.

geography

recession

whoever

board

the

The financial pub¬
stock-minded family, to be

the

Also
to

from

comes

having

Kennedy in Cuba's

President

with"

Key

generally good tone for a
change since prices of the metal

child's

study Cuba.

Mexico.

hold its annual election

issues

his

change,

mistic industry sources could hold
out

the

who

of Cuba to us concludes with

against U.S.A.

writing this in Florida—
only a "stone's throw"
Key West (100 miles).
My
request is for every reader

get

been

nominated

similarly

were

again

first
to

bet

Ex¬

Halden

profit since

Stock

companies 'in

position

has

Chairman

American

cars

Reilly

Governors
the

ception accorded the compact cars
was
enthusiastic, and did curtail
the inroads being made by
foreign
imports, they also put the major
a

Cuba

ASE Board of Govs.

Board

interested

there will

from

Joseph

expects JFK.

quite

time coin¬
"Chronicle."

only.]

would

of playing U.S.S.R.

game

any

the

presented,

are

author

nominated
offered

news

cyclical

rough

while. There

issue

revival

section.

week's

reading during the day at 640, but
the
profit-taking
picked
up
enough tempo to drop it back to
639

occasional

spark

that

licist

[The views expressed in this article

were

the vending machine issues
despite singlehanded attempts by

Babson's analysis of the meaning
observation

poker

year.

were

and the list break free

side.

Mr.

the

25-times estimates

scrambled pattern. Aircrafts

the motors able to do
anything de¬
cisive.
Chemicals were drab as

the top¬

By Roger W. Babson

is so steady. On a priceearnings basis, Plough is still not
at any excessive
level, since it rep¬

occasion, but mostly rushed back

technicians hopeful that the of¬
ferings could be absorbed in time
on

On Cuba and United States

for

growth

1961

Thursday, January 26,

Reasons To Be Bullish

are

when

four

one

yardstick

market

resents around

into

Activity
had moved

gains
on

summer

them hobbled.

much

the
size

been

rally that
topped out last August. Rails also

the

growth

last

token

superior, and there

willing to put

what

stock

the
a

1%, but its growth

over

record

few

Its yield is

years.

President
to make

Kennedy

wants

most

good President. Second,
he wants to develop some kind of
an
as

out

understanding with Russia so
honestly say: "I kept you
of war."
Third, he wants to

have

good

stock market and to

Kamen &

Goldberg Opens

CHICAGO, 111.—Kamen & Gold¬
berg is conducting a
securities
business from offices at 221 North
La

Salle

Richard

berg.

■

Street.

Kamen
■■

V'"

•

and

'*/

Partners

are

Pprry Gold¬

Volume

Number

193

6o24

The Commercial and Financial Chronicle.

(449)

MUTUAL
BY

ROBERT E.

$1.44

The Funds Report

FUNDS

for

1960,

cluded

This

country has entered upon
age of homage to education.

an.

Even

before

and

the

Wall

Washington

the

covered

Rhodes

Phi

Street

had

dis¬

scholarship
Kappa key,

Beta

taken

view¬

ing the economics of education.
In

the

Financial

District,

ana¬

lysts long have been combing out
companies

that

produce

student

microscopes, text books, seats and
furniture,
and
numerous
other
items that go into a well-rounded
curriculum. In the words of one

broker, whose favorite reading for
a
quarter century has been cor¬
porate balance sheets: "Education

going
dustry."
is

And

leading

our

in¬
cul¬

are

tivating education. As might be
expected, their approach is inimi¬
table.

While

remains

what President

seen

achieve

Kennedy can
amassing
a
record

volume

brains

Potomac

and

capital
have

offers

the

onto

are

"the

novel

instant

story

versified

had

the

there

industry," the fundmen

latched

that

beside

whether

gains

education

idea

This

money.

Growth

whose investments

by Di¬
Fund,
supervised

are

graduation

some

months

off, the Class of 1961 at
Brown University is making plans
to give what it hopes will be the
largest 25th reunion gift of any
class.

make

the

1961

dream

1986

reality, class members are
signing pledges to contribute $10

each
be

for 25 years to
in shares of Diversi¬

every

year

invested

fied

Growth

Stock

Fund.

James

Gordon, the class gift chairman,
and Roger B. Simon, vice-chair¬
man, at a recent visit to the Long
firm's

offices,

initiated the pro¬
$100 collected

gram with the first

from
are

the

class.

Additional

funds

to be invested in the fund

received.

that

program

this

type will make it possible to give
much
R.

the

last-minute

drive

were

conducted before the 25th reunion.
If

only

80%

members complete

the

500

class

years

past 25, the class gift
multiply handsomely before

turned

this:

"We

stantial

over

Brown.

pitch

The

goes

hope to collect
the

equity

years

investment

fact that

because

have

increased

over

while

the value

of the

the

years

dollar has

the

Morton

from

the

Best of all, many fund salesman
will

agree,
is this one by Mr.
Gordon: "This is a wonderful op¬

portunity for each
to

$3,000

repay

education

Brown.

in the

person

worth

received

It costs Brown that much

more
per
student than average
tuition fees to provide educational

facilities

over

four-year term."

folks

but

who

want

help

houses of worship, medical foun¬
dations
and
charitable
causes.
This

how

campaign
To

the

Gordon-Simon

works:

expedite

the

drive

for

pledges, 130 of the original
signers are assigned two or three
other

students

whom

idea. This system is designed
provide full coverage and per¬

sonal

contact

with

member. At each

class

every

five-year period

of the program in the future there

8V2

cents

investment
25

drive to have

renewed

alumni

the

double

the

pledge. As the alumni

minimum

in
their chosen business or profes¬
sion it is anticipated that many

will

prosper

participate in the stepped-up

program.

This

establishing

The

deciding
field

fund

was

when

capital growth
was

fund.

select

narrowed

the

over

con¬

objective

the long term

vestment
same

its

65th

dividend
income.

tailed—

many

giving,

investing

—

the

basic virtues
education,
program

succeed. It also

from

The

in¬

net

amount

that paid in the first

The

net

the

1,709,067

Dec.

value

each

outstanding

$22.32.

was

year

figure was
$22.33, with 1,659,640 shares out¬
standing.
Of
total
net
assets
amounting to a new high of $38 152,745 at the end of 1960, 94.4%
in

v;ere

93.2%

common

stocks,

During the past
eliminated

ing

against

year

holdings in the follow¬
automobile, auto

parts, banks, paper and industrial
machinery. Steels were reduced
sales

10.3%

the

first

deserves

the

be¬

U:S.A--;'

opportunities

pre¬

vailing prices."

Annual Report

FUND, INC.

s(s

Mutual

Income

31, 1959.

Electronics Fund,

per

468,109,

equal

$11,996,766

come,

payable

end

Dec.

net

assets

amounted

$4.82

$12,share,

and

$5.03

of the like

1959

when

assets

$15.10.
end

per

share also

were

473

and

assets

STOCKS

SERIES...
is

1960

totaled
a year

11,317,895,
earlier.

Fnergy Fund informed stockhold¬
ers

at the annual meeting that since

Sept. 30 it had made

new

commit¬

ments in

Vitramon.

Over

the

same

Systems, 3,000 Philadelphia
Electric and 1,500 shares of Varian
Associates.

$5.69

Send

today

for

Free Prospectus and de¬

scriptive literature.
NATIONAL SECURITIES &
RESEARCH CORPORATION

Broadway, New York 5, N.

New York Capital Fund, Ltd., for¬

merly

offered

the

continuous
will

net

public

basis.

amendment

The

asset

the

offering

value.

registration

statement filed with the Securities
and

Exchange Commission to

mit continuous

Heretofore

been,

sale of

the
on

the

Corp.

an¬

equal

were

for

1960

was

the

per¬

continuing basis
is, and has

fund

investment

open-end

has

and

redeemed

time

any

value.

shares have not

its

list of securities selected for

possible long-term growth of
capital and income.

The shares will be offered

con¬

through Carl M. Loeb,
Rhoades & Co., as sole
distributor,
sales commission

load

the investor.

The
fund

investment

policy of the
recently broadened to
geographical
restric¬

was

eliminate

the

company's
invest¬
ments, incident to which the cor¬
porate name was changed to give
expression to the extended invest¬
ment

concept.

the fund
of

The basic policy of

Incorporated
Income Rind
A mutual fund investing in
0 list of securities selected for

current income.

A prospectus

each fund is available

from your investment dealer.

THE PARKER CORPORATION

$00 Berkeley Street, Boston, Mass.

is to invest in securities

companies
from

come

EST. 1925

A mutual fund investing in a

tinuously

without

Investors

asset

net

deriving

sources

their

in¬

outside of the

United States.
*

One
net

William
assets

Investors!

Street Fund reports
Dec. 31 were $265,-

810,100, equal to $12.91 a share. A
year
earlier net assets totaled

$295,905,129,
On

equal

Sept.

The

report

annual

ice

same

have

Further

the

been

HOWARD'

Balanced Fund

The

preferred, and common

en¬

stocks for current income

serv¬

been

aug¬

and

Investing in bonds,

and

possible growth of
principal and income

representation

scientific

fields has

EATON &

and

consumer

industries

mented.
in

stated:

holdings of companies

gaged in the

CONSIDER

30 assets were
$11.76 a share.

fund's

$14.02

$246,572,000,
Holdings

$41.72 per
share on the 1,553,414 shares out¬
standing compared with $43.39 per
share on the 1,554,014 shares out¬
standing at the end of 1959.

since 1932

technical

achieved.

At the

time, the fund's investments

of December 31, 1960

Stock Fund
Investing primarily in
selected common

stocks for possible

growth of principal

Affiliated
A

Common Stock Investment Fund
Investment

objectives of this Fund
long-term capital and
income growth for its shareholders.

are

44 Wall

and income

since 1931

Fund

Available upon request

Street,

possible

Prospectus

upon

request

Prospectuses available from
your
EATON

Investment Dealer or
& HOWARD,

New York

5, N. Y.

Name.

Lord, Abbett & Co.

Chicago 3, Illinois
New York

—

Atlanta

Chicago

——

.Los Angeles

—

Address.

San Francisco

Incorporated

t24 Federal St., Boston
□ BALANCED FUND

President

with

$1,144,291

120 S. La Salle Street,

fund

earlier.

a year

share.

International

Dividend reinvestment date:

Trij-'r

mutual

securities selected for pos¬
sible long-term growth of

unit of $6.38,
and

per

with

compared

Shares outstanding at the

2,1961.

Chester D.

10,-

Mutual
Bond
Fund
at
Dec.
31
showed total net assets of
$1,627,-

February

January 19, 1961

during

from

GROWTH

120

$170,898,771 and assets per share
were
$15.10. This compares with
$95,086,377 at the close of 1959,

28, 1961, to shareholders

February 2, 1961.

11,189,265

Established 19 30
*

Inc. have

of record February

share at

rose

NATIONAL

quarter.

dividend of 4t

share from earned in¬

wmmmmmmmmm

The Directors of Television-

declared

year

capital.
at the close

Fund

of 1960 had total net assets of

Dreyfus Fund, Inc. reports that at

Ordinary income

49th CONSECUTIVE DIVIDEND

its

earlier.

year

company

•

$64,808,506,

ELECTRONICS

value

although

equities afford attractive in¬

nounced net assets at Dec. 31

TELEVISION-

asset

steel

trol

INC.

been offered

span it eliminated 2,000 shares of
Allied Chemical, 1,000 Data-Con¬

Lazard Fund,

and

position in steel "in the belief that

and

The

has become effective.

Alloys Unlimited, Brush
Beryllium, Geophysics Corp. of
America, Hamner Electronics,
Microwave Associates, Ohio Oil,
Pall Corp., Polaroid, Richfield Oil

spread emulation.

under

$7.50, against $24,298,285 and $7.43
a

tion

deserves wide¬

funds

ginning of 1960 to 3.7% at yearend.
However, late in the year
the
fund
began
increasing
its

en¬

thrift,

equal

This compares with

industries:

largely by
quarter—from

$103,094,026,

share.

New York Capital Fund
Canada, Ltd., announced that
the fund ^shares- of the fund henceforth will

earlier.

year

063,491
(

earlier the comparable

Dec.

of
a

$26,-

share at the

Fund, Inc. reports

asset

three

against
$

Dominick

that

the

consecutive

from

$9.21

Inc.

1960 net

Mutual Accumulating Fund
reports
at Dec. 31 net assets were

net

quarter of 1959.

against 6,298,344

selected.

With

go" gift

mutual

which to

from

siderably

as you

the 25th reunion be¬

program for
fore

"pay

per

income, payable Feb.

vestment

The program leaders report the
class studied several methods of

management:

shareholders of record Feb.

quarterly
the

for

—

Diversified Investment Fund, Inc.
declared a first quarter dividend

the
to

record Jan. 27.

investment

new

Shares,

of the end of

the

total

offices.

"sell"

with

ports for the quarter ended Dec.

❖

Now, this could be the begin¬
ning of something really big, with
drives aimed not only at students

stock

firm

American

194,423.

The dis¬

Mutual Funds Management
Corp.,
Ltd. of Montreal has issued re¬

opened

reports

the

during the like 1959 period.
During 1960, the Boston-based

declined."

free

$17,582,300

remains

$104,894,064 and $10.28

option of
cash, payable Feb. 28 to stock of

the

fourth-quarter
$20,720,600 for a 17.8%

gain

Selected

tribution of these long-term
capi¬
tal
gains was
declared
in
the

record

sales

27,

assets

form
out

Jan.

industries

$1.28 per share in 1959.

investment

closed

basic

gains of $2,268,082, equal to
$1.46 per share, compared with

with

year

78-office

Feb.

record

the

tal

and realty
syndication, ac¬
cording to Bernard Carver, Presi¬

group.

substantial.

cents

During 1960 International Hold¬
ings realized net long-term capi¬

ments

dent

with

bringing total dividends in respect
of 1960 income to $1.42
per share.

shares, bank time
deposits, savings and loan place¬

pledges, about

in stock values is

stock values

common

volume

payable

stockholders

fund

sub¬

and
see
it grow with American in¬
dustry." Or like this: "We selected
over

sum

$100,000 will be contributed. And
if the growth

the

Gordon-Simon

Providence,

I., university than would be the

case

the

mutual

Mr. Gordon and Mr. Simon have
reasoned

Stock

by Investors Management Co., Inc.
under
the
sponsorship of Hugh
W. Long & Co.:

Although

was

will

class

'.A
the fundmen

now

good

combined

mutual

The Alma Mater Fund

dividend

share,

per

increase of 10.2%
from
the previous year high of
$93,513,900. The 1960 total in¬
an

compared

share in 1959. The board

per

declared

Ik
C.
Morton
Organization re¬
ported record sales of $103,049,500

RICH

share,

per

$1.25

^Address

10, Mass.

□ STOCK FUNO

I
i

f!
-L |

The Commercial and Financial Chronicle

(450)

Thursday, January 26, 1961

Canada's Leading Authorities Evaluate Its 1961 Economy
assist small business in its capital

activity, was running 2.9% above the same period; of
1959, and 2.2% above the entire year 1959. Investment

by business in fixed capital assets did not reach the lev¬
els anticipated by business early in 1960, but neverthe¬
less remained at very high levels. Housing activity like¬
wise showed a decline from the extraordinarily high

Canadian

tant

factor

1960

there had been

total

economic

activity.

tives

At the

million

final

total

sales

the

1959

ment

months of 1960, compared with
and

the

economy

same

provided an element of stability to the economy.
expenditures were supported by a 3% gain in

well

other products in

year

States

employment,
and

1960

1.7%

rose

than

100,000

after

the

Capital expenditure by the chemical industry in 1961
is

expected to be at about the
Emphasis will again be on new

way

products.
Defense

address

new

given

tax

in this issue, Mr.
minute detail.—Editor.

elsewhere

program

duction.

the first time.

from

ALLEN

The

1960,

the

consumer

chemicals

expansion

of research

demand for such

exports

achieved by such chemi¬
In contrast to 1959,
of
chemical
products in¬

creased

sharply,

the

extent

75%

by the Federal Government

gains
cals

over

the next two years.
Associated with

the

of skills

the issue

productivity. In this highly competitive world, a coun¬
try cannot meet existing competition if its costs are
steadily rising. The Canadian Government has stressed
the importance of keeping costs down and products com¬
petitive. The evidence indicates a measure of success in
this regard.
The Consumer Price Index rose just over
1%

remarkably

have

had

abroad.

success

stable
in

for

two

retaining

years.

and

Our

In
are

the
now

some

changed economic circumstances

operating there is

sewage

year

lower

hand,

had

adverse

uranium
effect

Higher sales by the

our

individual

may
a
a

companies differed widely.

show that

earnings

of chemical

corre¬

whole in 1960 fell below the level of 1959.

and

our

construction
universities.

postwar

for

enterprising sectors of the

program

rural

develop-

Legislation has been passed to

years.

invested

profit

new

than

one

company

product at the

same

r\V

some

to enter manufacture of

time,

even

though the market

for that
-

chemical

only

plant of economic size.-This duplication reduces

one

Canada

may

i/j

This

last

suspect.

revalued
We

that

year

repeat
the

could be doubled in
would
a

realistic

highly inflated
be

The year

$35.00. History

ad¬

paper

harm¬

records that the value

increased—the price has

way—up

1961 will

see

many more

A prospecting for gold,
exploring
ing old gold prospects. Gold

new

gone one

mining companies

finds and reactivat¬

mining is destined

into its

be large enough for

profit margins and, by raising production costs, makes

soon.

effects; certainly there were none
"L1?3* when the price of gold was
officially increased from $20.67 to

J. C. Byrne

This implies

margins

must

gold, and

ful

capital below that of most

Unsatisfactory

dollar, the world's accepted

currency. There would

chemical groups is partly brought about by the tendency

will be, provided with additional

far-reaching

ment will be proposed.

the

rate of return

dare

scale

gold is cur¬
premium price on world
This in an indication that

justment of

Final figures

manufacturers

the

forecast

?nl£e
1961.
a

austerity
Trading in

dollar

terms

exports during
sulphuric acid

industry did not bring

be stemmed

m™e*ary un^» *s becoming
The

sponding increase in profits, although the performance

The Government

disposal works,

have been,
A

other

of payments,

politicians

attempt

markets.

consumption.

appropriate at this time to provide

the same time other vital and
economy

because

demanded.

was

hospitals and student residences in

assistance.

1959

such

products

the

additional incentives for urban renewal and slum clear¬
ance,

the U. S.

cut

gains made by the export industries which they serve.

fresh opportunity to meet

of the needs of the public sector.

decided that it

spiral, cannot

effectively

rently at

were

com¬

which

TuotedmwDhgthS- The deterioratPS Glance
price
coupled with the wage

by a long strike.
Exports of
acids and fertilizers were also

demand.
in

the
the

not

other

a National Productivity Council has been estab¬
lished to encourage industry to seek out the most up-todate and efficient methods of producing the goods and

customers

BYRNE

higher, and certain heavy chemicals including ammonia,
chlorine and caustic soda were helped indirectly by the

petitive,

services which Canada and her

Part

impv_r+ant

and Managing Director

which

markets

remain

year.

Europe, but the year-to-year im¬
provement also showed up in synthetic rubber exports

exporters

extending

To assist industry in its efforts to

especially

the

time.

The accelerated outflow
of U. S.
monetary gold holdings
will continue m 1961
despite the efforts of Government

increase came from greater economic
activity in the United Kingdom and

P. C. Allen

in 1960, and the General Wholesale Price Index has

been

take

Consolidated Discovery
Yellowknife Mines Limited

year.

first -half

problem

President,

were

last

assets.

toilet

preparations and
pharmaceuticals, whereas only slight
as

bound

are

industry includes

previous year. In 1959, much
higher production came from

increased

little

hearings and

arising from them

The industry continues to be
conscious of
impor¬
tance of research and
development in growth arJ diver¬
sification
About one-quarter of the
total investment
in research facilities
by Canadian industry is accounted
tor by chemical
manufacturers, and the 1960 capital
program of the chemical

how¬

help deal with this problem, the Canadian Govern-_
ment has increased substantially its contributions toward
technical and vocational training including the construc¬
tion of training schools, the cost of which will be borne

There seems, however,
immediate relief as the tariff

action

any

had different origins from those

of the

improvement

pro¬

industry's efforts to achieve more balanced
limited, of course, by intense competition
imports, particularly organic chemicalsyIt is
hoped
are

prospect of

rose

ever,

AA-A'AAAaA--A

some

chemical manufacturing.

chemical

by the Minister of
increase in synthetic

that the Tariff Board's current review
of chemical prod¬
ucts will lead
to
decisions that encourage Canadian

only slightly, the increase
output last year com¬
pared favorably with the average
growth rate of the postwar period.

prices

Canadian
products at home and abroad and thus the demand for
Canadian labor was so high that youngsters with little
or no training could easily find well-paid
employment.
Today the situation is changing and young people are
finding that more training is necessary. The heaviest in¬
cidence of unemployment at the present time is amongst
young men without special skills.

forecasts

The

growth

industry's shipments approached $1,500 million for

for

announcement

products, such as maleic anhydride and
pentachlorophenol, will be manufactured in Canada for
the first time in 1961, few of the
projected capital out¬
lays represent diversification of Canadian chemical

Fleming

Although the economy was hesitant throughout much of
1960, chemical output increased again and the value of

recent

plants abroad.

Although

President, Canadian Industries Limited

the

Production

rubber production at Sarnia
by Polymer Corporation and
the construction of two

11
*In

firmly planned for the manufacture in the West of such
products as phenol, chlor-alkali, ethylene oxide deriva¬
tives and pesticides; and a substantial
increase is being;
made in
capacity for producing oxidized hydrocarbon

past year,

growth; to overcome the deeper causes and mani¬
unemployment; to achieve a better balance
relationships with the
outside world; to facilitate and encourage the most ef¬
fective use of the savings of Canadians in the develop¬
ment and control of their expanding economy; to main¬
tain the purchasing power of our currency; and to chal¬
lenge the enterprise of our people.
>

explains

1960.

million tons per annum, may double
again over the next
12 months.
Whether it can be sold or not is another
matter., Other major new projects are under

foreign

•

expanded plants fop

manufacture of established products,
including am¬
monia, caustic soda, chlorine and phthalic anhydride. In
western Canada, investment will be
helped by the ap¬
proval last year of large-scale natural gas exports. For
example, capacity for the production of petro-chemical
sulphur, which roughly doubled in 1960 to about 1.3

Canada

interests.

best

level

same

the

Canada's trading and financial

new

demand

the

war,

chloride, caustic potash, refined
oil, sodium cyanide and pentaerythritol tetranitrate,
of
which had been
previously supplied through
imports.

are

climate hospitable to

sulphuric acid plant in Manitoba

all

festations of

the

decade

first

the

during the

in Canada of aluminum

nomic

problem of unemployment is related to
the needs of industry for highly skilled workers.-In the
first

Canada's

not

and
up

tall

' A.
A
,'AA:1
government policies and actions
have been designed to help Canadians adapt to the chang¬
ing economic environment; to promote balanced eco¬
the

Over

and the labor force.
Part

would

investment.;

The Cana¬

the first

Nor

other country.

any

example, new or additional capacity
caustic soda and chlorine in western

urea,

year.
In eastern Canada, addi¬
plants began production of nitric acid and poly¬
ethylene. 1960 alio saw the first commercial manufacture

They do not discriminate against the United

will continue to ni&intdift

jobs were
created. At the same time our labor force grew by 2.8%
as the large numbers of babies born in Canada
during
and immediately after the war began to enter the labor
market.
There was some increase in unemployment as
a result of the differing rates of increase in employment
more

for

tional

relating to withholding taxes merely
special advantages and apply equally to all

started

normal rate.*

the

Canada

payments to nonresidents and

the standard

industrial output in the

still

production;

they intended as
There
is no intention on the part of the Canadian Government
of pursuing policies antagonistic to foreign capital.
To

doing all that it can to ensure that
developments in trading organization now taking
place abroad will not result in new forms of discrimina¬
tion against Canadian products.
■/ ■/'V/
of

law

came

prelude to action to restrict foreign investment.

new

Canadian

measures

measures!

countries.

dian Government is

months

dividend

and

our

withdraw

1959.

these markets.

certain

expected for 1^961, if

other hand, growth in the chemical industry
closely related to the broadening of markets for
established chemicals and the introduction of new prod¬
ucts. Capital investment in the industry in 1960 rose by
an
estimated 50%, to $115 million, reversing the sharp
decline which took place in the previous year. Much of
the plant construction program was in heavy chemicals

will

The

It was
previously noted that exports to the United States fell
by more than 2%. However, this decline was more than
offset by gains of over 20% in sales to overseas coun¬
tries. Rising levels of economic activity in Europe and
Japan and the removal of some import restrictions
against Canadian goods have provided the opportunity
for Canadian exporters to sell their manufactured goods
record

economic environ¬

institute

purpose.

desirable

became

nized in

months of 1960 exports of goods were

should

profits of Canadian branches of nonresident cor¬
porations to the uniform rate of 15%, which is recog¬

mately $1 billion in 1960.
the

that

sul¬

'United K ingdom and Europe confirms present signs of
a
leveling off.
o V: A ■
A"-VA!' bf'AA.'"

the

accordingly reduced from $1.4 billion in 1959 to approxi¬

above

for

light of the present world

interest

personal income as wages and salaries rose by 4% and
government transfer payments increased by 8%. Per¬
sonal saving was 5.7% of disposable personal income for
the first three quarters of 1960.
*
A /
Exports of goods and services reached a record level
in 1960 while imports of goods and services remained
relatively stable, and the deficit on current account was

For the first 11

number

the

help the Canadian economy to achieve an
improved equilibrium with the outside world.
It has
been considered appropriate at this stage of our national
development to withdraw some of the special incentives
which in past years were designed to attract foreign
capital. To meet this situation I introduced in my Sup¬
plementary Eudget of Dec. 20, 1960, changes in the
Income Tax Act which would raise the withholding tax

These

6.4%

which

in the first nine
period in 1959,

expenditure grew by 4%

the

evident in the United States.

has also been

trend

Consumer

Government

increased, the amount of current production necessary
to meet these sales did not increase by as much.
This
same

time the Canadian Government is propos¬

same

commence

celeration

that while

■not ,fall much until well into.the year;
reduced sales to this use will show up

and to at¬

processes

new

although

again this year,

rise

points to a smaller advance than
growth figures for last year were
the high output of synthetic rubber com¬

Production

did
the full effect of
in 1961 sulphuric
acid production. In addition, no great expansion of over¬
seas
shipments similar to that which occurred in 1960

new

of chronic unemployment.

areas

should

sales

information

1960.

distorted

specific major .projects
for resumption and ac¬
long-term growth of our natural re¬
source
industries. These projects include rail lines, to
parts of our northern frontier and flood control projects.
The Government is also actively concerned with the
development of the vast Columbia River project and has
negotiated and signed a treaty with the United States
ing

rate

helping the consumer with lower prices.

pared with the strike period in 1959. Furthermore,
phuric acid consumption by the uranium. industry

which will lay the groundwork

buildup had been halved in the
second quarter. In the third quarter of 1960, there was
a
liquidation of business inventories at'a rate of $336
the

industries

new

manufacture

the

available' for

now

goods and the introduction of

buildup of some $355 million in busi¬
ness inventories.
For the first two quarters of 1960 the
substantial increase in business inventories continued,
although

are

tract

impor¬

have

banks

Canadian

the

and

established new export financing facilities to
provide assistance to exporters of capital goods. Incen¬

preceding two years. In part, this decline
reflected a digestion in the housing market of the almost
300,000 housing units completed in 1958 and 1959. How¬
ever,
changes in housing legislation affecting, among
other things, down payments and maximum guaranteed
government loans, and the more ready availability of
mortgage funds, should lead to some increase in house¬
building. Already in October and November there was
a significant increase in the rate of housing starts.
was

Government

Chemical

present

jointly

levels ot the

The movement in business inventories

tion without

requirements, and the
legislation to provide greater
flexibility in the investments of insurance companies to
permit a more dependable flow of funds to nieet the
capital needs of Canadian industry and housing.
The

vulnerable to import competi¬

domestic producers more

Government will introduce

Continued from page

own

in the near future
after

.parSvGold will
Afind

•i

lapse of

never be in over.supply

ready market,

come

some

and will always
.

Number 6024

193

Volume

The Commercial and Financial Chronicle

miles

CAMPO

Nineteen-sixty
Canadian

growth for the

modest

year of
industry.

was

petroleum

import

Region.

producing
be

will,

accentuated

1961

caboose

also

for

Canadian

crude

meet

States.

and

recent

trends

While

a
slowing down of oil exploration and develop¬
activity, as well as refinery construction
may be
expected for 1961, projects related to gas
exports should
be a strong
supporting factor in the industry's invest¬

has been

policies,

and

affecting the prospects for the Canadian
while

the

level

business activity has

effected in 1960, and while there
passenger train revenues, this was

for

the

off-season.

services

next ..June

trans-continental "Domin¬

for

planned to re-introduce
the summer season.
In

well

cially

bringing to 32 the number of terminals extending
across Canada from Saint John, N. B., to Vancouver, B. C.

been

the

chief

cautious

time

the

causes

Exports

the

investors

overseas

areas,

integrated.

Merchandise
Island

Services

was

August 1959,

was

has

been

well

received

..Communications

ground
the

for

future.

system

the first of its

transmits

and

handwritten
documents.
centers

Montreal and Toronto.
in

Canada

drawings,

industrial

potential

of the country and

the

abilities

facilities, including Telex, were
during the year. One microwave 'termi¬

well patronized

nal

station

and

five

microwave

repeater stations

The prospects for ocean

this

unofficial

strikes

June to late

continuous
ended

the

had been

The

were

COMPLETE

action

with

beset by a number of

was

the U.

September.

strike
year

scene

both

and .Canada, from

The upshot of this almost
that

was

the

loss rather

ocean

than

Canadian

service
She

Pacific

Canada"

between

was

Montreal

and

Liverpool

EACILITIES

The

liner

new

will

650 feet

i.r»*yy. \

'•!

>■

Hi.

Continued

■■■

of the Cana¬

coverage

investment

market is

pro¬

British

Columbia,

James Richardson
ESTABLISHED

& Sons

1857

ALL

STOCK

,
,

AND

EXCHANGES

The Investment Dealers' Association of Canada

securities may reach any part of
the expanding market through

of the Commission is

31st

the burden

Action to relieve

1961.

expected to be completed by March
on

the

rail¬

grain and grain products
will necessarily be delayed until the Royal Commission
has made its report to the Government of Canada.
of the statutory rates

ways

The

strike

of Dec.

date

•'

American investors in Canadian

abroad.

Hearings before the Royal Commission on Transporta¬
tion have continued throughout the year and the Report

investing

the

combined

two

long established Investment

facilities

these

Houses.

3rd

set by the

non-operating

railway unions was averted under an Act of Parliament
providing for the continuation of the operation of the

railways until May 15th, 1961.
continued

Dieselization

livery of 45
handle

although
if

all

Canadian Pacific with

de¬

units, thus enabling the company to
its rail transportation by diesel power,
steam locomotives were held in readiness

new

some

centralized

which

system

and
was

utilization

increased

continued
on

and

total

continued

traffic

control, a modern
results in greater efficiency
of equipment and facilities,

the main line

of 55

Hope and Agincourt, Ont.
were

ESTABLISHED

Installation

Toronto

Dominick & Dominick
MEMBERS

required.

signalling

Canada

between

Montreal

and

miles

of track between Port,
Similar C. T. C. installations

44 miles of track between Moose Jaw

Swift Current in

Saskatchewan;

additional eight

spring.

long, fully air-condi¬

tioned and will accommodate 1,060 passengers.

energetic and growing population^ will call for a
recognition of the fact that Canada'? future prosperity
depends directly upon our ability to produce goods and

for

being completed at the Vickers-Armstrong

now

MEMBERS

steamships
profit that

passenger-cargo
liner
launched
May 10th. The
27,300-ton flagship of the White Empress fleet will enter

"Empress

CANADIAN

the

anticipated.

new

COMMODITY

much better

in 1959 and indications to -the end of
that C. P. S. S. would enjoy a profitable
year;

were

however, the shipping
late

steamships

than

year

June

that are attractive both as to quality and to
price, and to revitalize our efforts to sell those goods and
services in competition with others, both at home and

were

added to the communications network in
.I960.

Serving Investors Across Canada

services

and

increases.

suggest that given policies

sketches

Other communications

the realities of the current economic

situation

The

instantly
typed or

It is planned /to .expand "Wirefax" to other
demand

Victoria,

Rather,

management, labor and government alike
that make for greater productive efficiency, for greater
incentive to save and to invest, Canada's competitive
position in domestic and world markets can be improved
and expansion and growth will resume. To achieve these
objectives, however, and to utilize to the full the vast

and

,exaqt vcopy

reports,

notably

the part of

Pa¬

Among -the in¬
Raqific-Canadian
high-speed public facsimile

kind

reproduces

letters,

operated by .Canadian

Montreal, Quebec. A complete
Canadian investment service via
direct private wire is available
through Dominick & Dominick.

part

lack

the

by shippers.

facilities

Europe and Japan, how¬
have shown significant and
encouraging growth during the year.
There

city of Vancouver in October 1959, and combines
through
one
agency the handling of all l.c;L ra.il, truck and ex¬
operations in British Columbia. "This new service

ever,

confidence

inaugurated
extended

to Western

N. R. Crump

Pacific

Winnipeg.

vided through 26 offices of James
Richardson & Sons, located from

alike.

servicing

Canadian

Merchandise

Complete

con¬

being, led

attitude
and

consumers

Inspection and
trailers

west

under Canadian Pa¬
Services Department was achieved
May 1960 when interior British Columbia points .were

cific's

dian

to the slowing down of
Canada's growth rate. These factors

for

heated

and

tributing
have,

extended

was

high, the

activity, espe¬
housing, has

residential

one

run.

flatcars

private,

economy

been

construction

the

and

Naval Yard at Newcastle-on-Tyne, England.

economy has lacked the buoyancy of
most of the post-war
years; the de¬

cline

end

of search¬

year

public

pas¬

was

year,

CRUMP

those

passenger

Piggyback terminals were opened in Hamilton, Lon¬
don and Windsor, Ont., and North fEdmonto,i}. during the

President, Canadian Pacific Railway Company
of

reduction

unremunerative

A substantial decrease in

freight train units ordered during 1960.

program.

reappraisal

train miles

reducing

101,600 trailers in 1959.
A total of 1,130 piggyback flatcars are now on the
company's inventory, an increase of 290 from last year
at this time.
New piggyback cars were among 1,600

ment

ing

Smiths

meantime, stainless steel sleeping and dining cars,
as scenic-dome lounge and
skyline coffee shop
cars, have been placed on other inter-city runs.
Piggyback services continued to expand. Canadian
Pacific handled 110,000 trailers in 1960 as compared to
as

practices. Any progress towards
marketing conditions, together with fur¬
reductions in operating .costs, should have
highly
beneficial effects en earnings.

Nineteen-hundred-and-sixty

Toronto,

the

competitive

program

accommodation from

these

problem in the refining-marketing sector
depressed price structure—a result of un¬

ion"

ther

ment

Edmonton, thus providing second-morning delivery

either

National operation of
a
"Wirefax" service between

car

normal

refrigerated

Further extension of
integration
to the

proportionately much less than the train mile reduction.
Major inter-city trains continued to find favor with the
traveling public and the trans-continental. service, fea¬
turing the speedy, scenic-dome stainless steel stream¬
liner, "The Canadian," provided upwards of half the
company's passenger revenue during 1960.
It was decided to remove through sleeping and dining

specific petroleum markets indicate a gain of less than
3%
for
petroleum
consumption
in Canada
for
the
coming year.

realistic

Flatcars have been equipped for
operation in passenger train service between Vancouver
and

cific continued to grow
during the year.
novations
was
the
joint
Canadian

was

commodity

the

transportation continues to grow,
developing new techniques to suit

press

The

substantial way

towards Canada's foreign earnings with which
interest and dividend payments and current

main

such

quirements and lower freight revenues; this decrease is
particularly accounted for by the reduced construction
activity which prevailed throughout most of the year.

growing volume of

oil and gas exports will contribute in

The

further

Vancouver

progressed

of shippers.

Canada.

yards

method

Pacific

the needs

The previously mentioned slowdown in economic con¬
ditions resulted,; of course, in lesser transportation re¬

oil were the most significant
developments in 1960 from
the point of view of the industry's immediate
prospects.
It is hoped that over the years the

remains

Western

marshalling

senger

short-term business outlook

with

Montreal.

refiners in the Detroit-Toledo

The

pro¬

many units
operating on the Pacific
fixed wayside stations were also radiohelp speed train movements through the

train mileage continued.

United

our

A. F. Campo
crude petroleum
and
natural gas liquids. Approval of gas
exports to the United States and recent nominations by

the

continued

was

this

Agincourt in the Toronto
a large electronically-controlled hump reyard, similar in operation and design to Canadian
Pacific's large St. Luc yard in Montreal, will be con¬
structed to serve this important rail hub.

gas,

imports from

C.,

tarder

in¬

area

where

area,

creased domestic and export demand
for primary energy in the form of
naural

and

Work

probably,

due

existence

Falls

30%.

industry

of C.

already

Eastern

rapid expansion of the

extensions

Canadian

To speed up operations, extensions were made
radio and loudspeaker communication facilities

gas

The

these

mountainous sections

liquids, although below
original expectations, increased at a
slightly greater rate. Natural gas
production in Western Canada was
-

Six

equipped

Canada. Production of crude oil and
natural

and

installations

slower tempo

similarly signalled between Greely

was

of road train radio communication between loco¬

motive

demand for petroleum

displacements

track

addition to

gram

of business in general,
averaged about 860,000
b/d, a gain of over 4% over 1959.
Refinery crude runs were estimated
at 760,000 b/d, the higher through¬
put
being partly due to product
the

Reflecting

domestic

Revelstoke in British Columbia.

and

President, Canadian Petrofina Limited

(451)

f^EW

TORONTO

1870

YORK.

STOCK

BARCLAY

AMERICAN

EXCHANGES

7-4600

14 WALL STREET

NEW YORK

The ship
'

page

The Commercial and Financial Chronicle

(452)

Continued from page 19
will

have

service

of 21

speed

knots

for

and,

added

President, Paton

comfort, will be equipped with stabilizers
specially-designed bulbous bow to reduce rolling
and pitching motion.
The "Empress of Canada" has been designed for both
passenger
and

When all

the

St.

Lawrence

route

for

and

number of

cruising

finished

public

and

sold

The

the

France"

end

20,400-ton liner

ship

new

are

being

decorative theme.

Canadian

The "Empress of

in the

rooms

withdrawn from service

was

the

St.

1960

Lawrence

season.

launched in 1928 as the "Duchess
of Bedford," and after extended service during World
War II as a troopship, was renovated, renamed and
returned to perform 12 years of post-war service.
The cargo ships "Beaverburn" and "Beaverlodge" were
sold. Smaller freighters were chartered as the trade of¬
fered and four of these were assigned to the St. Law¬
was

the

high

and

operating costs

into

Canada and

as its potential
Another improvement in

Britannia

jet-prop

Pacific

and

routes

into

with

While

flight

international

the

routes.

South

and

These

have

the overall financial results.

Chateau

the

Frontenac

collection

and

improved

fabrics,

processing

over

the forefront

broad field, and
developments.

very

new

manufacturing in general

are

continent in

that

to
costs
,

iJHni

may

made

available

in the nature of

for

management

In the field of equipment control, one hundred
pertaining to units of equipment on

purposes.

records

thousand

Canadian Pacific

rails, and Canadian Pacific equipment
carriers, are received each day. These
records are recorded, transmitted, processed, analyzed
and assembled in reports for operating, transportation,
traffic and accounting purposes at various levels and for
government reports.
on

rails of other

Expanding demands have taxed the capacity of the
high speed electronic computer—-the most powerful in
the world in transportation service—and plans are un¬
derway for its replacement late in 1961 by a transistor¬
ized model that will be six times faster

re-

believe

and

policy toward foreign in¬
might be of interest.

of capital.

vast amounts

Its

capital investment in relation
gross national product has been

one

of the

highest in the world, often

amounting to more than 25%.
Al¬
though the rate of Canadian savings
has

also

been

high,

import capital
The

facing
John G. Diefenbaker

shall

continue

substantial

panied

For

many

large scale.
capital has

this

United

States.

welcomed

foreign

capital

and

welcome
to

it has been by

have had

very

the

from

contribution

markets.

■new

bulk

great

come

have

be asked why, in the face of these

new

it.

has

made

development,

our

technology,

very

accom¬

ideas and

new

■

years

provided special tax incen¬

now

tives to encourage the inflow of foreign

capital—an ap¬
propriate policy during the period of very rapid ex¬
pansion when our economic capacities were stretched
to

the

limit

when

and

with

resources

large

needed

amounts

supplement

capital

from

our

abroad.

But today our resources are not

stretched; indeed many
are less than fully utilized.
Moreover,
exchange is free to vary according to sup¬
ply and demand, the continuing inflow of capital on such
a large scale maintained
the Canadian dollar at a pre¬
of

our

capacities

rate of

mium
and

the United States dollar.

This put our pro¬
competitive disadvantage in both domestic
foreign markets.
over

ducers

these

altered

circumstances

the

government

de¬

population growth and the existing unemployment prob¬
lem do riot indicate ap expanded market. British imports
are firmly entrenched
and, despite their suffering a loss
in volume in 1960, have not fallen below the prior five

cided, and announced in the supplementary budget of
Dec. 20, that it was no longer necessary to provide
special tax incentives to foreign investment in Canada,

into
Canada tripled from 1956 to 1957 and more than tripled
again to 1959. The pattern of Japanese penetration into

the

control information

and improvements

tude

connection

rate of

Japanese

average.

wool

fabric

and

imports

Canadian markets has

intelligence

harmony and mutual

that

quired

assessing the prospects for 1961, the slower rate of

years'

business

our

problems,

Canada's growth and development
since the Second World War has re¬

woolen

large segments of the basic paper work of
the company now fully mechanized, emphasis has moved
to refinements
that
will
provide more sophisticated

With very

interests,

short review of Canada's atti-

vestment

their markets become dominated by
cost imports.
so,

appreciation by'

individual

sPect-

Europe, has

integrated data processing, Canadian Pacific has
developed a working integration of transportation data
continues

new

Canada

better

aspirations, will help to strengthen still further the
of friendship that enable us to share this great

No doubt they will continue to
in styling and designing, to

stimulated European demand, extended
industry's, deliveries and contributed to
a loss in its exports to Canada.
This loss is the domestic
industry's gain, but a precarious one dependent as it is
on the order position of the British mills.

Quebec.

other's

tired sound, it has recently gained

very

being

British

showed an improvement over the
previous year, reflecting earnings from the first full
year
of operation of the 400-room extension to the
Royal York Hotel in Toronto, and improved convention
at

each

that

bonds

single source, the economic revival of that country and

operations

business

high labor content product in a high labor cost

given it

This

carryings, the fact

between Montreal and Vancouver continued
adverse effect

from

project this trend

difficulties, the domestic woolen and worsted industry
not
only survived, but made limited gains in 1960.
Without discounting the industry's own efforts, it might
first be noted that fewer producing units remain than in
former years and that the factors responsible for the
attrition of the industry still exist.
Those remaining
units operate in a market whose price level is depressed
by imports, with the result that domestic mill earnings
are
at best inadequate to strengthen financially their
competitive position. Secondly, while importations from
Great Britain continue to be larger than from any other

providing more than one
its trans-continental route

prohibited from
day each way on

Hotel

low wage

aircrafts

improvement

some

cargo

is
a

satisfaction

some

and

DIEFENBAKER

Minister

conviction

peoples

similar problems as

powerful

most

experienced

passenger

derive

rising high cost economy.

has

international

and

equipped

strength and wider acceptance from the added protesta¬
tions of the garment industry.
Also many segments of

delivered to Canadian
service in 1961 on the trans¬

jet liners will

placed

JOHN.

Prime

imports.

HON.

consumption,
their

of hooe.

measure

lead

promote

and

RT.

spare-part expense.

beyond.

future with

nations, who have vast domestic and world markets open
them.
Although constant reiteration of this plaint

well

commercial
jet engines—the Rolls-Royce Conway Mark 15—capable
of developing 18,500 pounds thrust.
As part of its jet program, C. P. A. has joined 19
major international air carriers to form a world-wide
equipment pool to effect savings in maintenance and

that

and

Canadian secondary

DC-8

continental
will

may

containment of the Japanese problem and a continuation
of Britain's prosperous preoccupation, could look to the

the industry is limited to the domestic market,
50% of which is supplied by foreign low wage exporter

becomes fully developed.
service was the introduction

aircraft

Although the immediate prospects for 1961 are not
reassuring, the industry has weathered adversity before
and, given a revival of Canadian economic progress,

economy,

Italy, providing
on

tions. The situation will most probably continue through
at least the early months of the new year.

the year

It would not be realistic,
however, to believe that the industry's future success
or failure is dependent entirely on its own efforts.

ad¬

America.
Four

for

total

and

increased

also

expense

mills

themselves

With

for Canadians to fly to Rome
carrier; this route is expected to be

patronized
of

1961

develop
in

the first Ca¬

opportunity

Canadian

the

capita

per

fabrics

worsted

market

exert

eliminated.

Air Lines inaugurated

nadian air service between
an

decreasing

Canadian

Steamship Services, with the result that the Vancouverwas

to have experienced

appear

these results and would be pleased to

versely affected operations of the British Columbia Coast
service

available

maintain modern and efficient plants and to reduce

Kingdom and Europe.
Increasing competition

Canadian Pacific

domestic

Seaway service, connecting Canadian and Ameri¬
ports on the Great Lakes with ports in the United

Victoria

probably

spite

rence
can

are

have caused garment manufacturers hesitancy
placing forward orders or in taking inventory posi¬

moderately
successful year.
Success is measured modestly in this
industry where mere survival is achievement.
Per capita consumption of woolen and worsted fabrics
in Canada declined last year and total domestic woolen
type cloth shipments lost some ground but importations
suffered to a greater degree as Canadian mills appear
to have increased slightly their share of the market. In

winter

statistical data

the

Thursday, January 26, 1961

economy

Limited

Company

1960, the woolen and worsted fabric industry in Canada
will

months.
A

DANIELS

Manufacturing

Let

industry

where the interests of Canadian manufacturers

judicially

Canadian
years
newer

mills

have

world

raw

could favor

pre¬

degree in recent

Joins

the

and

uncertain

we no longer consider it
incentives to foreign in¬

putting barriers in the

interest

the

dividends

and

way

shall

We have

of the

move¬

believe

Canada

that

entitled to expect businesses

are

which

controlled

themselves

earns.

would

foreign

capital

Canadian-owned

enter¬

prises.

We expect them, for example, to make it possible
for Canadian personnel to take an
increasing part in
their management, to conduct a fair share of their re¬
search in

return to all wool fabrics.

prices

conduct

blends, which have met
consumer response; however, the decline
wool prices could be detrimental to the
of
higher priced synthetic blends and

Fluctuating wool

special

still welcome such investment and

intention of

provide

Foreign
capital will continue to participate in Canadian develop¬
ment on essentially the same terms as domestic capital.

man-made fibers in wool

attractiveness

internally.

benefited

from their prompt adoption and promotion of the

with favorable
in

are

envisaged in

emphasize that while

ment

injuriously affected.

manner

continue to provide a hospitable climate for it.

be mitigated only by

can

in the

agreement with the United States.

vestment,

segment of

withdrawn

were

necessary

generally been one of devastation
an industry and the poten¬
Government
action, enforcing the authority presently available to fix
values for non-Commonwealth goods for duty purposes
of

tial of this threat

these

taxation

Canada, and not to be denied

fair opportunity

to sell their Canadian-made products in the export mar¬
kets of the world. In these and other areas of corporate

domestic

Newhard, Cook

(Special to The Financial Chronicle)

ST.

LOUIS,

Mo.

Robert

—

Kenny has become affiliated with
Newhard, Cook & Co., 400 Olive

BONDS

Street, members of the New York
Midwest Stock Exchanges.

STOCKS

and

CANADIAN SECURITIES
IN

With Merrill Lynch

THE UNITED STATES

(Special to The Financial Chronicle)

Our office in New York maintains active markets in Canadian bonds

CLEVELAND, Ohio—Kathryn A.
Eder has joined the staff of Mer¬

and other

rill

and

high-grade Canadian investment securities for institutions

dealers.

offices

across

are

Canada

connected
to

private wire system with
provide prompt and reliable service on all
our

Canadian markets.

Lynch,

Pierce,

Securities

(Special to The Financial Chronicle)

15 Broad Street

•

New York 5, N. Y.

Telephone*: WHitehall 4-1770

Teletype: N.Y. 1-4808

An Affiliate Of

LOUIS,

Mo.

Stock

Montreal

Quebec City

KING

Sherbrooke

Ottawa

STREET

WEST, TORONTO,

Hamilton

Kitchener

London

Windsor

Winnipeg
Calgary

Correspondents in London, England

With Stifel, Nicolaus

Two

CANADA

Edmonton
-Vancouver

(Special to The Financial Chronicle)

ST.

LOUIS,

Strano
now

and

Mo.

—

Russell

Robert V.
C.

Tuffli

are

Inc., 314 North Broadway.

classes of Canadian

Direct private wires

,'f

the Montreal and Toronto

net New York markets quoted

request.

Toronto, Montreal, Ottawa, Winnipeg,
Calgary, Vancouver, Victoria and Halifax
BELL SYSTEM TELETYPE

1-702-3

Bomimon Securities Gepokatiozi
Boston

London, Eng.

with Stifel, Nicolaus & Com¬

pany,

Exchanges,

—

McLEOD, YOUNG/ WEIR & COMPANY LIMITED
50

Stock orders executed

Edward C.
Maue has become connected with
Bankers Securities Co., 509 Olive
Street.
He
was
formerly
with
Scherck, Richter Company and
Fusz-Schmelzle & Co., Inc.
ST.

maintained in all

external and internal bond issues.

I
t.

With Bankers

McLeod,Youmg,Weir,Incorporated

MARKETS

Fenner

Smith Inc., 55 Public Square.

Associate Member American Stock Exchange

40 EXCHANGE PLACE, STEW YORK

0ttawa

Calgary
Halifax

Telephone WHitehall
Canadian

Affiliate

and

—

Member

Canadian

Stock

Toronto

Montreal

4-8161

Toronto,
Exchanges

Winnipeg
Montreal

„■

Vancouver
Victoria

Volume

Number

193

6024

The Commercial and Financial

policy Canadians expect these companies to behave as
good Canadian citizens and to have in mind at all times
Canada's interests.

These of

suasion and mutual
lation.

rely

can

judgment of these enterprises to pursue
lightened self-interest.
There is

development.

understanding rather than for legisthink that

the good
of en¬

course

ment not recover from the last recession

one

•

The special treatment of private

the most

corporations; to establish wholly owned
private companies in Canada without being subject to
the obligation imposed upon Canadian public companies.
This
has
meant
that the Canadian
public has been
denied the minimum knowledge about their operations in
Canada which other companies are required to disclose.
It is our intention to ask Parliament to remove this

DeYOUNG

GEORGE

seem

upturn in the national economy in the immediate future.
There are some signs of a softening of demand in the
world markets outside of North America which would
indicate

increasing availability of

goods and

continuation of the high

of 1957-58.

our

It is these .features which

our

recent history

our

are

because they

least to the approximately 3% level at which
during the early part of the 50s. But for the
past four years it has not fallen below.5%% and by last
November had reached

past decade shows

almost 8%.

In fact, data for,the

steady rise in the rate of unemploy¬
ment that appears to be independent of the cycle.
Ex¬
planations for this must be sought in our low rate of
growth and the inability of our economy to absorb the
•

'■

entrants

new

workers who

into

expanding labor force and the
being displaced by technological change

are

and automation.

These developments have, of course, been reflected in

personal income.

For the past three or four years per
capita personal income has levelled off and has shown

little annual increase.
incomes

likely to be
ment.
per

long

this is particularly
high and increasing,
consumer
spending is not

think

prices

are

are
steady,
major factor in stimulating

new

invest¬

The decline in residential construction and in the

capita
purchase of durable consumer goods in
terms, so closely associated with house and

volume

apartment building, bears this out.
The relative decline in our exports

1W -,
■

Increases

costs.

bor

lilllHSi
iggljHfc ?

labor

costs,

couPled with the increasing flow of
imports will leave little possibility
Canadian manufacturers counter-

Ill. •' IPleviate

our

access

threatening even
foreign markets.

trading blocs through¬
seriously to limit

years

Gross

also

con¬

our low rate of growth.
Over the past dozen
exports have constituted a decreasing share of our

National

Product.

These

symptoms, to my mind, point to the basic struc¬
long-term nature of the problems we face. I

tural and
not

suggesting that short-run, cyclical forces are not
but merely that they may be less important
a
key to the assessment of the prospect for 1961.
Essentially these symptoms indicate that we must look
as

primarily to the factors affecting our long-run growth
and not to patchwork measures aimed at minor
prob¬
lems.

Unless we do I am not sure that we can
expect
significant improvement in our economic position.
Finally, they indicate that government has an important
role to play and in fact must be
prepared to underwrite
any

rate of economic growth. If we are
prepared to rec¬
ognize this and embrace the public policies appropriate
to meeting them, the
prospect for 1961 can be much
improved.
To say

that consumer demand may not be sufficiently
have much impact is not to suggest that it
strengthened. Indeed this is one place where
government action can be effective and where radical
departures in public policy are necessary.
It may be

strong to

cannot be

that effective demand on the basis of the
present
relationship between income and prices has substantially
been met.
But there are large segments of the
popula¬
tion which still lack essential
goods and services because
they cannot afford them. This is particularly true of

true

the

farm

and

needed

sector

where incomes have been depressed
purchases postponed for a long time. It is
equally true of the two million income earners who
don't make enough to pay income tax. Here we can do
a great deal more than we are now
doing both through

possible increases in needed private spending
through increasing social consumption by the pro¬
of necessary goods and services publicly.
The
means for achieving these ends are well known.

making
and

vision

Another

has

tributed to

certainly is no lessening in
pressure towards increasing la-

out the world is

our

rate of unemployment would

There

economies, Canada has not been able to share in
the growth of overseas countries to the same extent as
earlier. Further, the emergence of

operating

basic weakness.

hoped that

serious because

toward

Although they

have not de¬
clined on the whole in absolute terms they have not
kept pace with even the modest rate of growth in our
G. N. P. In recent years because of the revival of over¬

are

area

which

demand

must

to witness any substantial

tions.

The

emergence

reconsider

our

traditional

trading

arrangements.

Continued

economy is such that we anticipate
that Atlas sales in 1961 will be about

,H. George DeYoung

less than the 1960 figure.

10%

mies

America

North

^ompetitve

the

place

take

must

the

their
world

change

decided

outside

improve

are

added jobs needed for our growing labor
of all segments of the Canadian

the

provide

position

that

necessary

Canada

climate

unification

The

force.

makes

market

countries

the

is imperative so we can work together toward
increasing the Canadian competitive position.
change in thinking of our Can°dian Government

economy

the goal of
The

been indicated by the actions in Parliament as ex¬
pressed in the supplementary budget, indicating a grow¬

has

ing

situation.

Canadian

the

awareness

taken

The

actions

certainly in the right direction, but cannot
be expected to have an immediate effect toward improv¬
ing the condition of the Canadian economy. I feel that
are

in the realm of direct or¬

further action will be needed

ganization of the economy toward maintaining our com¬

petitive
position.
Further
action
to
implement the
competitiveness of Canada's raw material and manufac¬
turing industries ' in the export market is imperative
if

going to meet the competition of the organized

are

economies

the

world.

HON.

DOUGLAS

Premier, Province of Saskatchewan
Any
will

forecast
follow

what

1961

the Canadian

course

will, of

course,

depend

economy

one's

sessment of current conditions and of the forces

within
we

the

economy.

as¬

at work

that the recession

seem0

experiencing

currently

are

Canada is not the result of short-run

factors
nant
can

that

may

earlier

Rather

greater

extent

been

domi-

richly
provides

that

and

rials

correct themthink it is, to a

expected

selves.

have

recessions

portation

world's

province, Quebec
labour and raw mate¬

endowed
power,

abundance.

facilities

markets

—

Its

modern

reach
from

trans¬

out to the
its strategic

position astride the air and sea lanes

of the

that have taken
place in the Canadian economy.

111

the

than

ever

the

period,

postwar

before

result

fundamental changes
We

much

find

ourselves

now

very

position, both domestically and in our external trad•ing

relationships, from the

POPULATION:

::::

one

occupied in the first postwar decade.
At home, a pent-up demand was released

the

end

the

war

provided,

tremendous

stimulus

economic expansion. Our rate of
;and we were well able to absorb

;In

recent

years

.disappeared
as

vital

and

this

to
growth was very high
a growing labor force.

postwar-! buoyancy

consumer •,

role.

LA PROVINCE

T. c. Douglas
PERSONAL INCOME:

•

$6.938.021.0<

(estimated value of shipments)

and

demand
•-

seems,

has
*•

not

to
-

have

commerce.

equal opportunities for all.

LABOUR FORCE:

PRODUCTION:

world's

Its people are noted for their ready
adaptability to technological advances,
and the development of managerial
skills. Soundness of its government is
a guarantee of freedom of enterprise,
harmonious
social
conditions,
and

different

INSTALLED

POWER

11,315,407 H. P.

played
For further

information

Province de

Quebec, write The Minister of
;

Abroad, Canadian exporters enjoyed

advantage in

disappearing.'-The: devasta¬
tion of war in Furope, and elsewhere* destroyed a good
deal of productive capacity and retarded technological

foreign markets that is

now

$6,337,000,000

HYDRO-ELECTRIC

rela¬

strengthening of European economies and the
of trading blocs has made it essential that we

falling return on investment.

stimulated

is foreign trade. This may
greatest significance for Canadian-American

recovery

degree of economic
be one of the areas

general effect on the Canadian

seas

has

stood

very

working

forces

fewer

construction

return at

while

There

residential

must attribute to these fundamental changes

disturbing of

We had

foreign

President, Atlas Steels Limited

our

reveal

:'■;L'"1-'
To summarize, Canada has no intention of discrim¬
inating against or discouraging American or other for¬
eign investment, which in the past has been highly
beneficial, to the investors and to Canada.

the recession

com¬

'■

cutback

major factor in this decline.

I think

panies was really intended to exempt a business owned
a small group from the normal requirement to release
financial information. .This provision has, however, per¬

anomaly.

The

;our

mitted

had every

position a large measure of the responsibility for
declining rate of economic growth and for the con¬
sequent limited recovery of the Canadian economy from

private companies. Public com¬
panies are required to submit financial and other related
information about their business, whereas private com¬
not.

to expect, but it has been declining steadily since

time.

been

companies and

are

reason

;that

Canada; this is in the field of providing information per¬
taining to their Canadian operations and financial posi¬
tion.
Canadian law provides for the establishment of

panies

(453)

•

respect, however, in which companies in
Canada which are entirely owned by non-resicent com¬
panies have had an advantage over other companies in

public

Canada reaped benefits from this mis¬
Now, however, the situation has changed. The,
restoration of industrial capacity and technological ad¬
vance
in Europe and Japan has limited the extent to
which we can share growing overseas markets.
Both of these changes dampened private investment
in Canada in recent years. Not only did private invest¬

fortune.

matters for$per¬

are

course

Chronicle

Trade

and

Commerce, Parliament Buildings,, Quebec
City, P.Q„ Canada —. or 50 Rockefeller
Plaza, New York 20, N.Y.,. U.S.A.

Not

page

The; Commercial and Financial Chronicle

(454)

Continued from page 21

competition in selected fields. Confronted with a decline
demand, the housing industry was forced to cut back
construction after three record-breaking years.
Indus¬

Canada, telephone service must often be brought

trial expansion and capital expenditures on engineering
projects tended to offset the decline in housing activity
with the result that totals in capital investment main¬
tained a high plateau.
Although there were widening
areas of maladjustment and an increase in the ratio of
unemployment resulting from the slackened rate of
growth, the number of workers employed increased by
50,000, an average rise for the last 10 years.
vw.H'.',

the International Grenfell Association Hospital
mining and exploration center and at the Northern
Quebec iron ore center of Wabush. Also, in cooperation
with Quebec-Telephone, we began to build a new radio
relay system from the St. Lawrence River to Gagnon, a
major mining headquarters and townsite. Service at
Gagnon is at present provided by a link from our
tropospheric scatter system that extends to Schefferville,
Quebec.
I,.."I,I."V,■■ "•/■
•,

through

through new forms of credit, through longand tariff adjustments to provide the oppor¬

tunity for overseas countries to sell their goods in our
markets and to buy our goods in their markets. Not only
is this sound economic policy; it is also essential political
and social policy.

Area

the future are
renting of a group of channels for varied
communications purposes, the transmitting of business
machine information over the entire telephone network,
as
freely as a long distance call, and an optional offering
of flat rate calling which should prove advantageous to
Among

increase- our

markets

There

least to

at
V

the

preserve

;

that

immediate

"The Challenging 60's" was
stability in the business field.
economy of the country showed no spectacular
growth—but neither was there any great decline. Some
confidence

Canada's

lion

public policy and, per¬

them, I believe 1961

can

mark

already

stable

Of great importance to us are our
our

deal* therefore,
southern neighbor country.
*• ■/

depends

$200,000,0G0, and it is expected that the year ahead will
require investment on a similar scale.

service

represents

than

time

line with

difficult

foresee

improvement in the Canadian

LESLIE

Prime

econ¬

omy until the latter half of 1961. It
has been assumed that the Canadian

too

obligations to fulfill and should
opportunities that develop.
It

Minister

responsive

the

volume of national production
be about the same in 1961 as in 1960. In

such

circumstances, the general employment situation
a matter of
continuing concern, with the number
of new jobs offered failing to match the increase in the
number of people seeking work.
;
will be

Our

ited

Company's public financing during 1960

the

sale

three

bend

issues.

March, $60,000,000 of bonds were sold
at 614%.
A-$50,000,000 issue in June
All

three

were

December,

announced,

Ontario

good

one.

'Asia
The

most

United

was

the

residence
It

ects. We opened new central

space,1 in

over

also

customers
saw

now

marked

converted

dial,

wide variety of proj¬

offices,

100' localities.

phones with dial service

Some

sales abroad

single influ¬
economy in

tele¬

not be
in 1960

able to

was

increase

short

run

decline

in sales

The total effect of rising exports
to nations other than the United States reduced reces¬

sionary

pressures

but did not give sufficient strength to

the economy to generate

adequate employment opportu¬
compensate for the expansion of our labor force

1960.

Economic

conditions in Ontario closely paralleled de¬

As „the nation's largest producer

velopments in Canada.
of

gcods

economic
duction
ness

for

both

currents

Canada

domestic
which
were

export

stimulated

reflected by the

activity throughout the Province.
were

the

other

markets,

depressed

our

the
pro¬

levels of busi¬

The resource in¬

able to take advantage of overseas

products of

Secondary manufacturing,

hand, felt the impact

down

the

hard

won

way

not going

are

from

heaven, but
increasingly tough,

manna

have

faced

heretofore.

of growing foreign

Implications

Government

Finance

Looking back over the past 12 months, perhaps
most important change in the Canadian financial
vironment

has

the
en¬

been

ond not directly
related to the
banking field. I refer to the further impressive improve¬
in the condition of the nation's public finances.
For two years now, the Federal Government's demands
ment

national

have

savings, by way of additional borrowing,
steadily diminished to the point where they can be

satisfied

without

strain

the

financial

markets.

The

advantages of this, in providing much needed leeway in
the capital markets for the requirements of
provincial,

municipal

and corporate
over-emphasized.

borrowers,

scarcely

can

It is only realistic to recognize,
however, that a near
balance in Federal finances may not continue/ The fail¬
of national

earlier

production, thus far, to reach the level
mean a shortfall of government
expectations. Moreover, the numerous
stimulate
employment, which were in¬

envisaged could
below

revenues

measures

timated

the Speech from the Throne at the recent
opening of Parliament and will be developed in detail
in the

supplementary budget,

may

well require substan¬

tial additions to expenditures.
It-seems

demand

mines and forests and production

reached unprecedented levels.
on

and

realizing that economic gains

need not emphasize that, in, achieving a resurgence
growth, the forces that confront us are deep, strong
and complex and represent, I suspect, a combination of
short-term and long-term influences perhaps unlike any

ure

dustries

94%)

and freedom from currency troubles.
What
the kind of economic stimulus that Canada and

Some

partially offset the dampening effect of

overcome

Change

therefore,

has

of rising .e'x-

that Canada

Underlying

their major customer.

for the

than

and

notable degree of ex¬

Hohl. L. M. Frost

exports to the United States.
It was
encouraging to witness the resiliency of many of our
major export industries and their ability to shift their
markets

The

American

North

decline

80,000

telephones

fortunate

the

extended existing

bringing the number
to

world

higher than during the previous year.

were

competitive world.

■

Of growth of the Canadian economy could
sustained and, as a result, unemployment levels

the
a

States.

United

the
on

situation

markets is

must

competition
and
and

surprising,

should be,
be wafted

rate

would be

business

the

States derived from their political federations a
century and two centuries ago is now beginning to be
felt in Europe and elsewhere in the forming of trading
groups and the forging of economic integration.
We are,

stability of the
economy.
Without

stimulating effect

also

about

-United

the relative

increase during the year in the
proportions of residence
customers with extensions and
colored phones.

Construction activity covered

pace

not

is more,

years;

ports to the United States, it was obvious that the 1959

This/interest resulted

service.

Canadian

States

nities to

line

applicable

-l'-

said

ganization

Europe

domestic

important

the

was

growing interest in better types and grades of tele¬
phone service was a favorable feature in the operation

individual

have

virtually« unchanged

been

years.

compelling us to appreciate that North
inevitably been losing some of the com¬
parative advantages it possessed during earlier postwar
years — advantages
of ample natural
resources,
un¬
damaged physical assets, an undisrupted productive or¬

faced with the
of

seas

that the

1960

having

years
was

meeting

both

and

issues, each
sold at 5%%.

January

1959.

company during 1969.
to six out of 10 urban

America

underlying

markets.

in two

the

The

had enjoyed
have been

industries

the

from

Installing some 180;000 new telephones, we carried our
total in service beyond the
3,500,000 mark. We now serve
about 2.500,000 customers in our
territory in the Prov¬
inces of Ontario and Quebec. The annual
total of long
distance calls also rose,
though at a slower rate than in

were

necessity

ence

Preliminary figures for 1960 show that while revenues
did not increase at the
average rate for previous years,
our programs for cost control
continued to achieve ex¬
cellent results.

ich

Canada

lim¬

bond issue for $35,000,000, at 6%, was
January 2, 1961, also payable in

Canadian funds.

prosperity
for
the
past

was

placed in Canada.

dated

conditions

the

altered.

earlier

clear, however,

fundamental

is expected that the

in Canada will

exhibited

became

have

that the prevailing
mood of businessmen is one of introspection and hard
thinking. Keener competition in both domestic and over¬

which

mentum
Thomas W. Eadie

its

has

G. Arnold Hart

pansion in Western Europe.

Business

continent has been in contrast to

Government, through financial and
monetary measures, will have done
its part to create a climate favorable
recovery.

what

pedestrian

FROST

Canada

for

showed a 2% increase over the previous
year,
was at
a
record level, ■ while employment and
earnings were also higher than ever before.
Many
sectors of the economy achieved new •
•
:
*
records in production, although some
Wv:Ms .*# $
\ -*
groups failed to maintain the mo¬

real

The year 1960 was, by most standards, a

GNP,

any

general

Currents

12 months.

Much

productivity.

our

HON.

progress, despite a busi¬
climate less favorable than dur¬
is

.1 -'

corhpetition

evidence

foodstuffs, consumer prices have been more
at any
time since 1955, while wholesale

$800.

The year 1960 has been one of well

ing the preceding

V\;

increasingly severe

The

throughout the past two
-

successful

how

maintained
ness

aof

than

prices

economic growth
conditions in our

Canada's position depends to a large extent on
we are in keeping wages and prices in

trade,

the present cost' of buildings
equipment, each new telephone

great

this

With

into

livelihood.

tuations

exports to the United States and

with

disquietingly apparent in the amount
surplus industrial capacity and in the number of un¬
employed. In such circumstances, it is hardly to .be ex¬
pected that there would be any general bidding up of
commodity prices, and in fact, apart from typical fluc¬

export trade is an extremely vital factor in the
economy.

the

the Federal Government.
major challenges facing
Canadian business today is the main¬

of The Bell Telephone

brought

seek

an-<

taining of ' Canada's- position as a major trading nation,
Canadian

that

said

economy as a whole has
short of its productive poten¬

for

our

diffi¬

therefore

tial and has failed to keep pace

One of the

Company of Canada, the annual capital expenditure, to
improve service and provide new service, has exceeded

investment

been

can

increases in the number of those who

rising unemploy¬

figures, but steps to combat the
have

fallen

The slowdown in the
in

But

Canadian

nounced by
J. A. Fuller

r.»u

first time in the history

tion of conditions
cult.

growth of the economy has

situation

President, The Bell Telephone Company of Canada
For the

son,

annual rate of $35.3
third
quarter of

reflected

been

ment

the

higher.

rate

EADIE

divergent; some say, and with rea¬
that we are again suffering a
recession; others, with equal justifi¬
cation, say it has been a good year
for their business. A general descrip¬

toward

national

gross

never

the beginning of- a new economic era for Canada.

THOMAS

vidual enterprises has similarly been

product
bil¬
1960
compared with $34.6 billion in the
corresponding period of 1959. Earn¬
ings and saving of Canadians were

reached

haps of even greater consequence, a whole new set of
relationships with the other nations of the world, the
most crucial5 of which may be with the United States.
If we have tlie wisdom to select the appropriate policies,
and; the courage to pursue

starting

diversity than for any
or
downward
The experience of indi¬
upward

tendency.

sight—possibly

for their

concerted

the end of this year.

But this

economy.

our

will involve radical changes in

action

government

dicators last year have been notable
more

being expressed that
upswing in the business cycle is

has, in

respects, failed to bear out the optimistic predica
year ago.
Thus far, the "soaring six¬
ties" have shown little inclination to soar. Business in¬
dictions voiced

The

postwar period have

planning and bold
strengthen the foundations of

HART

ARNOLD

many

of relative

One

continue to grow; children born

economip

President, Bank of Montreal, Montreal, Canada

--I,

FULLER

President, The Shawinigan Water and Power Company

begun to enter
tile labor force and' Will continue to do so in increasing
numbers. This increase will be augmented by the work¬
ers we can fully expect to be displaced by machines.
It
must be matched by a commensurate growth in our
G. N. P. or the problems we now face will be greatly
intensified,
f believe it is possible, through rational

and

For Canada the first year of

can

labor force will

the

4 an ever-widening circle.

; -

exports

Business activity in Canada during the past year

pinnings of growth are strengthened, the next recovery
will be no stronger than the last.
in

•

latter part

yboth Ontario and Canada will continue to move forward
with the developments throughout the world, expanding
their markets for goods and raising living standards in

expected

Our

slarge users of long distance service.

high level of growth. Informed opinion holds
expect to see some recovery towards the
end of 1961. This may be so, but unless the basic under¬

achieve

many

1961

that

those

command.

factors that will influence how well
but, in my opinion, the crucial ones are
will affect the ability of our economy to

are

fare in

trade,

export

now

if not

to such an arrangement,

of 1969, measures were adopted to
abroad. The decline in the premium
on the Canadian dollar will bring about
some improve¬
ment in our trading position.
We are confident thao

the economical

Canada is dependent on both blocs and it
is essential that we have the best possible access to both
We must look

advances

the

stimuate

creasing demand for flexibility and variety of service.

trading blocs.
markets.

service offer¬

our

ings to business during the year were the growing use
of computers and other business machines, and an in¬

important steps we must take to solve our foreign
problem is the formation of an Atlantic Free Trade
which would comprise the European and American

trade

Two main trends which influenced

J have always arguedj in the face of the development
of the "common market" institution, that one of the
mere

and

barter deals,

term loans

Thursday, January 26, 1961

site

must we guard against shortsighted and costly
protectionist? pressures but, more positively, we must
an entirely new approach particularly toward
the uftderi-developed countries.
We must be prepared
only

pursue

necessary,

remote, hard-to-get-at customers.
In the fall, we
opened a dial exchange at North West River, Labrador,

to make whatever arrangements are

learned

should be
is

that

very

imperative,

recent years,

therefore,

that

kept prominently in mind today.

there

are

definite

lesson

not altogether painlessly,

practical, limits

The lesson
the extent

Volume

193

Number

6024

The Commercial and Financial Chronicle

(455)

which government debt may be
expanded in a short
period of time. The facile assumption that it does not

matter

how

owe

much

public

ourselves"

debt is

has

been

created

because

false.

proven

have

learned that, however justified and beneficial massive
governmental expenditures may be as a spur 10 business
activity, too rapid an accompanying enlargement of debt
set in train

can

those benefits.

series of consequences that may
negate
For an overly rapid increase of debt can '■
a

beget public unwillingness to absorb it, thereby com- '
pelling the monetary authorities to enable the banks to •'
take up all or most of it, with a consequent expansion of •
the money supply that may be unduly large.: Subse¬
quently, in order to combat the-hifiatiorrary potential of an over-expanded' money supply, the central bank
may not permit any-further increase for
some
time. ;
Unfortunately, however, such a sudden "shifting of;
gears" creates problems of its own. A restrictive credit
policy designed to offset the consequences of excessive

creation of debt
to

boom

economic

go beyond

can

become

growth.

deterrent

the salutary checking of
to

normal

and

desirable

•

Nineteen

hundred

difficult year

tries

■

and

•

■

sixty-one

probably

our

export indus¬

prosper and
outlays on new
plant and equipment be close to the levels achieved in
1960, unemployment could, never\
r
theless, increase.
Improvements in

productivity, together with greater
import competition, will contribute
to this mixed situation.

balance,

these forces could prevent the Cana¬
dian economy from growing at its
rate

before

much

the

spring of 1962.
A good deal has been said about
shift

labor force,
high wage paying
primary
resource
and
secondary
manufacturing industries and into
the

trades

the

and

services.

This

ten¬

dency

towards lower average in¬
comes, together with a growing pool

A. E. Grauer

tion's

purchasing

unemployed, has affected the na¬
Furthermore, Canadians as
apprehensive mood.
They expect

power.

are

consumers

things to get worse before they get better.

To this

ex¬

tent, psychological factors may obscure the underlying
forces of increasing per capita' consumption and popu¬
lation

growth which bode well for bur nation's future.

will have its disappointments.

No doubt 1961

How¬
In¬

have weathered situations like this before.

ever, we

creased outlays on housing, utilities, community services
and public works may be in the offing.
Some indus¬
tries, like newsprint, seem to be approaching another
round of expansion.
These factors, together with a high
level of savings, will doubtless tide us over to the more
prosperous years which lie ahead.
The

which

,in

situation

find

ourselves

can

described in moderately

optimistic as well as pessimistic
terms.
New orders are up slightly and inventories are
being brought into line with current sales volumes. On
the other hand, construction and engineering contract
awards
have
been
discouraging, while actual hours
worked and corporation profits are down as ^compared
to

another

ended

good

Product established

between

two

cent

and

three

per

year

National

1960.

the

previous year. Although prices,
were up slightly, the- total output of
Canada's
economy
is higher than
ever
before.
Personal
incomes, in
total, have risen by 3 %. On a per
capita
basis,
real
earnings
have
maintained the

achieved

The

Gross

record, which
above the level

new

the

was

for

average,

unprecedented level

1959.

Employment

has

from 73%

continued
on

1.7%'

or
.

upward, having increased
average by 100,000 persons,

between

1959

countries

1960.

grounds for complacency. Canada

competition
have

world

George Hees

job opportunities must be

evolved.

This

is the

challenge now before Canadians. The achievements of
the
past provide a firm base from which to move
forward. Yet, move forward we must with intensified
vigor.•, ■..
/":;.
• />
■■■■■
' ,V"-'
Iri the

were

This

tries,

first

6.4%

months

higher

increase

exports

than

due

which

1960, merchandise
the

larger sales
are

period

same

about

exports

last

overseas

one-sixth.

year.
coun¬

Sub¬

stantial increases have been achieved in Canadian sales

the three largest overseas market areas, namely, the
United Kingdom, Western Europe and Japan.
Most of
this rise represents larger shipments of forest and min¬
eral products, including pulp and paper, lumber, base

metals, iron and steel, asbestos and chemicals. In addi¬
tion, widespread increases have been achieved
for
various
types of processed and manufactured goods.
Despite continuing world surpluses, Canada's sales of
wheat in commercial markets have held up well.

Mean¬
while, Canadian products have maintained their position
in the United States import market, even though the
actual level of shipments is a little lower than that for
the preceding year.
' y
; l\
,

Imports into Canada last year;t>rem^ined/a,tP the 1959
level; and are now lower than four years, ago- Though
still facing intensified competition from
imports, Cana¬
dian
own

manufacturers,

as:a -group,
in the domestic market.

have, about held their
V

' V:,

Higher exports, together with an unchanged level of.
imports, have brought a substantial reduction in Can¬
ada's

deficit

merchandise

trade.

This

deficit

amounted to $116 million in the first 11 months of 1960,

compared with $410 million in the
and $730 million in 1956.
notable

feature

same

period in 1959,

Canada's trade last year, and
has been its growing geographic
diversification. This has involved a lessening concen¬
tration of trade with the United States, and a growing
A

for

its

in housing starts foreshadows a firmer trend
housebuilcing activity. Public and institutional build¬
ing is continuing to expand. Information now available
on
investment plans indicates that capital spending by
the business community in 1961 will hold close to the
previous year's level. The sustained upward movement
in personal income should give continuing support to
the consumer market. The liquidation of inventories
now taking place in a number of industries will pro¬
vide the basis for a strengthening in new orders in

several years past,

due

course.

These

sustaining forces are being reinforced by the
special program to stimulate Canadian development.
New provisions under the National Housing Act directed
toward residential
development, along with the im¬
proved availability of mortgage funds, have already had
a stimulative effect upon house-building. New supports
for urban re-development and low-cost loans for sewage
;

construction
local

will

contribute

rounded

program

first

the spring of

gains in

1959, the

Viewing

guaranteed bank loans to
additions to equip¬
ment and
premises, will give new support to small
enterprises, and will add to activity in construction
trades and other capital goods industries. Through the
establishment of a National Productivity Council, and
in other ways, particular attention is being given tp
the competitive position of Canadian producers and t6
Legislation, providing

for

small business for improvement and

other

measures

that will

incr^a^e 'participation of, Cana¬

industry in both domestic arid foreign markets.
'Taxation proposals recently announced will encourage
new enterprise and increase production^ These and other
measures will stimulate Canadian development and add
to employment opportunities.
•>'
dian

foreign markets are now somewhat
easing in the tempo of business activity
States and by signs of hesitancy in the
United Kingdom and some other overseas economies.
Industrial activity in these countries has an important
bearing on the demand for many of Canada's major
exports. Despite the possibility of temporary fluctuation
-

Prospects

clouded

the

United

Continued

pace

modest 2% advance in Gross National Product
people feel that the steam is going
many of our expansionary forces at
once.

with concern, some
out

too

Exports, already
lift

latest
that
on

over

investment

intentions,

sector

be spending

surveys

business

the

by about 5%, cannot be expected

other and more serious difficulties.

may

expenditures
that

consumers

behavior of

the

and

many

The

suggest

less

money

So it is to mounting govern¬

physical assets in 1961.

ment

also,

Canadians

look for the first signs of

recovery.

It may be

through
trends

that

seem,

North American economy is going

our

period

adjustment. Up

of
a

general

Also inflation,

another.
in check.

It may

one

for the moment, is being heM

1961.

inclined to think

has

so.

is import

competition

threat

already cast its shadow across some

of the

manufacturing industries in Eastern
For this
ness

down

really decisive factor which could disturb this

equilibrium

uneasy

which

trends and

be .offsetting

be that these circumstances .may pro¬

ject themselves into
The only

way,

reason

outlook

Southern

—

Canada.

concerned

Ontario and

about the

Quebec.

busi¬

Western Canada may be growing in fits and starts. But
a

persistent

increase

materials

which

make

demand for

produce

should,

capacity.

of the

most

sooner

later,

Loaded Ore Cars in the Canadian National

are

genuinely competitive in world markets and, to

us,

output

in,

Producers

the

excess

our

continuing recovery

of,

Western Europe and

some

tries

good

news.

and

high

levels

the

other hand,

secondary manufacturing is important

^bad time.

Without

tinue to lose
as

well.

of the Commonwealth

may

areas

.S.U Steel Industries
and Canadian
the

where

greater, protection, they may

Requirements in

of High-QualityIron Ore to meet Exacting

coun¬

be in for

ground, not only in 1961 but in later

Railway Yards at Atikokai}

raw

As exporters,

use

STEEP ROCK IRON MINES LIMITED

con¬
years

Mines, Plants, and Head Office

—

Additional impetus, given in 1960
to the "Winter Works Program," is helping municipali¬
ties get ahead with needed facilities, and at the same
time
is
providing
a
major stimulus
to
off-season
employment.
improvement.

Canadian advance has slowed down considera'^

our

upturn

retarding effect upon the ab¬
of new productive resources.
Although em¬
ployment has increased, ways to achieve further expan¬

of overseas'

correspondingly.

risen

Following a period of hesitancy earlier in 1960, com¬
prehensive measures of general activity now show a
firm trend. A number of strong sustaining forces under-;
lie demands within the Canadian economy. The recent

has moved ahead, but so have other
other countries. Conditions of ample

sion

to less than 68%, while the share

has

and

While the past year has been one
notable achievement, there are

dom, West Germany and Japan. The steadily improving
competitive position of overseas industrialized countries
has enhanced their importance as sources of supply
for the Canadian market. At the same time, strong
internal growth rates within these areas have produced;,
sharply-expanded markets for Canada's products.
Reflecting these broad influences, the proportion of
Canada's
exports to the United States has declined
from 59% to 57% during the past four years, which
means that 43%
of Canada's total exports now go to
overseas markets. During the same period, the United'
States share of Canada's import market has declined

ago.

year

From

relative importance in our trade with the United King¬
4

Canadian

the

from

away

HEES

sorption

accustomed

Canada

had

■

• ••

■

will

Although

for Canada.
continue

should

GEORGE

supply and intensified
throughout the trading

GRAUER

President, British Columbia Electric Company Limited
; /-

HON.

Canadian Minister of Trade and Commerce

"we

Steep Rock Lake, Ontario, Canada

page

The Commercial and Financial Chronicle

(456)

Continued jrom page 23

tive world in which

commodity markets, however, Canada's
position in world trade remains basically strong. Rising
income and consumption levels in overseas countries,
together with the widespread reduction in import re¬
strictions, has opened up new opportunities for the sale
of

Canadian

Vigorous

goods.

action

became

Minister
needed

apparent

Trade
to

was

and

call

Commerce,

trade

our

took

one

over

the

1961

enter

state

forecasts of what

facts of

our

things

commissioners

Trade

Promotion

Conference,

Ottawa, government and management
their efforts to explore all avenues

united

were

leading to the

curement

for

11,000

merchandise.

firms

held

interviews

with

Representatives

aggregate

110

trade

extent

actions. We are not
captive's of economic con¬
ditions. While we certainly are all
affected
by them, in varying degrees,
Canadian businesses collec¬

Busi¬

nessmen

sought their views on the sales potential for
wide range of products in their
respective territories,
and left the department with the
a

effort will

made

impression that every
display and sell their wares in

foreign fields.
We

know

that

markets

were

competitors,
of

are

that

high

living

and

should

Not

reasonably

for

her

recently,

full

priced.

present

that

employment

must

order

her
and

the

preserve

many

enable

competitive in

labor
us

world

quality

mar¬

our

goods, but the price must be right. I am confident that
many of the businessmen who talked with our
trade
commissioners

carried

home

their

respective

plants

message that will encourage all
concerned, and that a
great unifying force will be created to move
forward
on our objective.

ROSS

HERINGTON

President, H. Corby Distillery Ltd.
Canadian

distillers

business

did

Canadian

not

and

depend

well

sales

primarily
1960.

taxes

domestic
increases in

The

imposed

April 10,
1959, resulted in higher retail prices of
beverage prod¬
ucts sold by provincial
liquor commissions in Canada
throughout 1960.
Even

before the

spirits

age

tion and

other bever¬
taxa¬

onerous

the

whiskies

and

largest

from

whiskies

depressing

Canadian
not

and

highly priced due

buying public reacted strongly to the new
trading down from older to younger Canadian

levies,
with

increases, whiskies

too

were

effect

business.

distillers

This

not

was

whose

lower

priced

products
earnings from
significant for the

distillers'

exports

the

were

revenues

also

were

adversely

affected

plans with energy, will play an important part
solving the current problems as quickly as it is

their
in

do so.
principles apply in exports, which have
not been as great in volume as most of us would like.
While we cannot sell all types of goods in all export
possible

may

effect
For

said

for

1961

levies

for

that

its

Ottawa

example

some

own

such

could

diminishing return is
the

the

burden

incidence

the
the

now

applies, as a tax on a tax,
Tcere have been precedents.
action is taken, more or less

duties.

Federal

step with the

reduce

changing

which

excise

normal progress in

law

Federal sales tax
on

the

all.

1961 is to be expected in the
industry

Canadian

economy

generally.

President, Western Canada Steel Ltd.

concentration

and

agriculture, oil and gas, fishing, mining and forest
industries, results in sharp changes occasioned
by the
shifting world markets.
-■'/

may

cally

Nineteen-hundred-and-sixty
are

was a

disappointment,

that the first quarter of the

and
new

will

be difficult, characterized
chiefly by a high
unemployment. The situation should
improve
through the second quarter, and a considerable
upturn
may develop during the third and fourth
quarters. The
impact of Mr. Fleming's interim budget will have
a con¬
of

siderable

influence

our

rate

recovery.

well,
heavy capital spending by the
Government, oil and gas
companies, and hydro-electric
developments, should play
a major roll in /the
shaping of the new year. There are
two hopeful and
significant trends on the horizon.
Firstly,
the readjustments

of the past few

to be

un¬

management

and

years

derlining the mutuality of interest

labor.

There appears to be a trend for
eration in this field,
provided that all

seem

increasing
concerned

coop¬
main¬

tain

a realistic and reasonable
viewpoint. Secondly, the
active stimulation of our exports now
being undertaken
by the Federal Government, in conjunction with
indus¬

try, should have
underlines
as

There is good
at

most

growing

beneficial, long-term effect, and

awareness of the

the opportunities before

us.

problems

well

reason to hope that Canadian
industry,
long last, is throwing off the lethargy,of
prosperity,

are

petition.

However, the prices

encountering problems from foreign com¬
of the shares of many
of such companies are
sufficiently depressed that they
could prove to be attractive special situations in the
coming year.
Further tariff protection would stimulate
many of them and several, which are selling below the
value of their net current
assets,

would appear to present
buy-out opportunities.
reason for optimism for
1961 is the author¬

favorable

Another

ization of natural gas exports to the United States.

This
a
major development which will be of significant
benefit to the whole economy.
It is estimated that over

$500 million will be spent by the natural gas industry in
the next few years and that
by 1965 gas exports will
reach a level of $230 million
per year.
Natural gas is
coming of age and in the future will rank among Can¬
ada's

leading export industries.

For the present year, considering the
tage of stocks and business conditions

ever-changing

ments in Canada's natural

resource group.
Natural gas,
accounting for the ^greatest capital expenditures of any
industry in the coming year, also presents a favorable
field for investment.
Electric power generation, a basic

indicator

is.

economic

However

else

the

past,

reason

view

the

know

there

because where

the

demand

will

industry

can

wants

will

President,

consumers

may

changes in

After

experiencing steady if somewhat

in most sectors of the

Canada, in
self

business

our

demands,
are. But
in. the food

us
as

what

long

the

consumer

■

•

of which

this

time

last

with

year

Canadian

corporate

bonds

yielding 6%% and common stocks only 4% it was
pointed out that the advantage was all one way.
The
past year has witnessed considerable strength in the
bond market for on Sept. 1 corpor¬
ate
bonds
yielded
approximately
5.30%

and

Since

then

stock

common

the

bond

weakened. Corporates

4.25%

that

4.30%.

market

has

common

advantage while
not entirely one way is quite con¬
siderable again and militates against
prolonged
strength
in
the
stock
prices also

While

move

Finance, the Hon.
Fleming, in his recent

state

when

the

said:

expansion

"While

have

the

Canadian

fallen

records

new

duction

have

been

set

number

the

course

fields

pro¬

years

employed

was 1.7%
higher in the first 11
compared to 1959 and in the past three
has increased almost twice as fast as employment

the

The

1906

United

States.

recent trade

kets.

business

The

Ottawa

highlights the

working in cooperation with

mobilize

initiation

drive

for

export

by the government and

mar¬

the Cana¬

dian banks, of new export financing facilities will
vide assistance to exporters of capital goods.
In
base

metal

exports

pro¬

1960

substantially exceeded those of the

year.
In the first nine months copper exports
a
52.5% gain in dollar value, nickel exports a
gain and aluminum exports a 20.3% gain.
Con¬
tinued strength in the European economy and recovery

showed

24.7%
in

basic

> much

production

to Canada

Hungerford

reduction

substantial

pearance

Canadian

the

premium

disap¬
the

dollar

should, barring a
sharp world-wide down-turn in business, aid Canadian
exports considerably in 1961.
While the balance of payments deficit dropped sub¬
stantially in the first nine months of 1960 by $259,000,-

tration, affecting

they do the whole of the free world,
the greatest interest by all Cana¬

will be followed with

dians.

■

FRANC.
President,

Bralorne

■■

■

JOUBIN

Pioneer Mines Limited

inflated

they

may

price

level.

Trade

imbalances,

when

terms
a

seems

realized

fact for

that

consumer

some years.

tions
this

ready to

appear

unique

accounts

pay

medium

tional credit confidence.

during the

for

balancing
maintaining interna¬

and

The

nation

likely to work
at less than its full
capacity.
The
unemployment problem bring i out
economy

year seems

whole

does

not

Franc. R. Joubin

the

benefit

fact
from

that

the

increased

production

conference

government's intention
Canadian

the
J. G.

only admit this fact in increas¬
ing the price of gold. Trading na¬

consumption, trade and employment."
Al¬
though unemployment figures tend to be featured on
the headlines of the daily newspapers the fact is that
the

govern¬

sponsorship to expand com¬
modity exports. These have shown a
healthy increase during the year, and

and

months

being made under

are

ment

goods has been
H. R. Jackman

our

expectations, it; remains the fact that, in the
1960,

em¬

feeling the effects of out¬
competition, and strenuous ef¬

side

devaluation

and

were

in any year

labor—is
forts

pointless

pres¬

growth

than

in
country's history, it was not pos¬
sible to sustain a degree of growth
that would absorb the rapidly increasing labor force. Secondary in¬
dustry — the largest employer of

to what is called "devaluation"

economy

short

Canadians

1960

temporary,
require such volumes of gold trans¬
fer at the
pre-inflation price that
"panic corrections" tend to be ap¬
plied rather than long-term adjust¬
ments.
The psychological resistance

The Minister of

budget address summed

difficult at this time to

ployed in

although

up.

Donald

States, finds her¬
immediate results

assess.

ducted

the

market unless bond

15 years,

Canada's gold mining industry may in 1961 benefit from
an overdue increase in the price of its product.
A vastly
increased volume of international trade is being con¬

yield 6%

now

are

growth

uneven

000, the over-all deficit for this period was still close to
$900,000,000, and over 85% of this was accounted for by
other than commodity transactions.
The fiscal policies of the new United States adminis¬

JACKMAN

President, Dominion and Anglo Investment
Corporation Limited
At

United

the

Limited,

for more than

readjustment—the

and basi¬
adjust their
are selective

consumer

to
"■

■'

.•

economy

with

common

state

measured

HUNGERFORD

Trust Company
Toronto, Canada

consumers.

there always

there, and those of
optimistic about 1961

orient

the

show

with

1961

for

National

striving to anticipate

demands

concerned

continues

food

food is

outlook

confidence.

companies in 1961 can expect
to be successful if they are progressive in their policies,
flexible in their production facilities, sound
in their
financial planning and efficient in all their operations.
We

conditions

growth of about 10% a year. Abundant cheap energy is
a vital factor itra
competitive economy.
Overall, there

to be the stablest of goods,

seem

yield disadvan¬
generally, it is

difficult to foresee a runaway bull market.
However,
special situations in the depressed secondary industries
could produce excellent
results, as could selected invest¬

the

of continuous

one

for

spending, they must buy food. But they
in what they buy and they are alert to new forms of
food, greater convenience and improvements in quality.

ent

level

the

meet

Food

present indications

seize

can

industry is less affected by general economic
waverings than some other industries in Canada. The
company with which I am associated made steady prog¬
ress
in
1960
and there is every
reason
to anticipate
further progress in 1961.

compared

Western Canada is subject to more
pronounced economic
swings than the rest of the Dominion, due to its
speciali¬
zation in resource-based commodities. This

year

The food

stocks

HOBBS

premium on the Cana¬
our competitive
position and is
believing that 1961 will be a good
year for Canada's export industries.
With their high production costs, Panada's secondary
improves

reason

opportunities that do exist.
Imaginative negotiating and aggressive merchandising
of Canadian products can open up additional distribution
channels, and it is encouraging that our Department of
Trade and Commerce now appears to be giving strong
support and liaison in this regard.

to provincial revenues increases
the pres¬
provincial sharing of the Federal "take" so

for

same

markets,

setback

any

and carrying out

people, by planning realistically

ness

varying degrees but the Federal excise is based on
gallonage rather than sales values so that the Federal
Treasury was protected from
down-trading. However,
sures

change them

do much to

can

it is people who have the
power and influence, not inanimate charts or amorphous
"economic clouds." I am confident that Canadian busi¬

continue

affected.

Provincial

tively

and

In all things,

better.

the

for

Our outlook is

who

fare

excise

Grant Horsey

The

management

that

are

standard

understanding that will

goods

only

and

essential

produce the
kets.

reach

until

merchandise, are now our
products they offer for sale

the

maintain

may

provide

industries,

which

Canadian
that

quality

Canada

countries

many

for

and

the

policies
helpless

commissioners.

1961

fare

just how well Canadians
will depend to a large
soundness of business

that

lieve

pro¬

1,268
approximately

predict how these factors will inter¬
act in the coming months. But I be¬

larger proportion of the world's markets

Canadian

high level of productivity
exceptional business poten¬
I leave it to the economists to
a

tial.

Export

many

expect in the year ahead.

tries,
and

the

and

economy

can

from

countries

During

The recent decline of the

dollar

„

pessimistic
The
economy are indisputable.
We have a good
deal of unemployment and a definite
decline in some segments of busi¬
ness
and industry.
We also have a
broad base of resources and indus¬
Canada's

Thursday, January 26, 1961

industries

gloomy opinions about

hear many

throughout the world, and to bring them
together with our primary and secondary producers.

HORSEY

GRANT

President, Salada-Shirriff-Horsey Ltd.

when

me,

rials.
dian

live.

now

another

being taken to
see
that these new market prospects are exploited in
a
practical way. For instance, new credit facilities are
being made available to heavy goods exporters to en¬
able them
to
compete on better terms with foreign
competitors.
It

preparing to take its rightful place in the competi¬

and

in international

in
an

the

United

States

should

important supplier of

raw

mean

mate¬

efficiency until the excess labor is again
constructively occupied. The historical increase in new
industries following technological unemployment should
gradually improve conditions during 1961. Some tariff
encouragement may be required to develop new types
of Canadian secondary
industry.
Canadian-U. S. relations will
undoubtedly continue to
discussed during the year. The loudest talkers will
include those who have
thought least on the subject.

Canadians for years have been "selling the
family heir¬
looms," initially to produce capital gains for the enter-

uprising and subsequently to support
as

much

rand

income

possible

like .-the

generated

all in

"U. S. Jones'.''

foreign

manner

The

investments

gains
would

Volume

Number 6024

193

The Commercial and Financial Chronicle

permit Canadians to regain ownership in substantial
degree through purchase of stocks. They have not yet
shown much tendency to do this, but will continue to
desire

the

opportunity.

accentuated worldwide

competition for increased living
standards may fundamentally weaken the position of
small economic units.
There may be further discussion
on the desirability of an economic union between Can¬
ada

the

and

United

States.

(457)

ing from importation'of oil and refined products. The
government of every other oil- producing country has
helped to protect its industry.
It is time for Canada
to

Progress of the European common market, increasing
transportation costs, within the scattered British Com¬
monwealth, heavy drains on U. S. natural resources, and

establish

ment

policy of control, to assist the develop¬
industry and to strengthen its own

its

oil

economy.
A far

kets

proceeding

Columbia

and

rapidly.

Alberta

Gas

will

throughout Canada but also

fornia,

LAMBERT

....

optimistic outlook appears in prospect for
natural gas producers in Western Canada. Construction
of pipelines to carry Canadian
gas to United States mar¬
more

the

Puget

Sound

produced

not

only
be

soon

President, The Toronto-Dominion Bank,
Toronto, Ontario, Canada

Prior

British

markets

exported to
the

and

area

northern states.

reach

Cali¬

tier

whole

"t /

;

respects. It has nevertheless been disappointing in that
growth has been less than we had hoped

for, and the

industries.

The year 1960 has been a record

for Canada in many

one

the amount of

has evidently levelled off. It looks

economy

1961

same

will":be

pretty much

the

real

downturn, but not
enough expansion to provide jobs for
all of the growing labor force.
—

It has become pretty clear that we

going

are

through

fundamental
business
has

than

cycle,

for

remained
since

ever

•1957-58

back,

something more
just
a
normal

the

recovery

recession

there

seems

break in the

unemployment

uncomfortably
from

began.
to

postwar growth rate in

former

this

period of

with

coincides

the

in world markets.

is working to our

At the

coun¬

time I believe

ultimate good, for international

this

pros¬

making considerable progress, perhaps better

progress than we may immediately
of the year I would expect to see

has

been

Under these conditions I do

interest rates

drive

because

help

money

easy

industry

make

down

create

the Western Canadian economy,

we can

interests

our

Strengthening of
port potential for
for

sulphur

of oil and

are

gas

and

natural

our

rates

Under

the

and

gas

try

and

which

the

at least

given

HERBERT

II.

The mildness

of the

cently given rise to

current

Until

tion;

domestic

until

elements
are

seen

will

costs;

sideways

advances

given

are

recognized

are

until

internal

and

At
ex¬

possibilities

time when

to make and
tic

about

Canadian

Gross

■the

that

National

past four

Quebec looks

economy

downwards while the rest of the
new
industrial heights.
We cannot

JEAN

outlook

ahead

with

dict

re¬

services

reach

the

ended.

Wiselyhelp

1961

level

will

for

well

1961,

;;

An economic climate characterized

necessary

the

absence
must

the

strong

dynamic

inevitably adversely

chemical

industry.

But

progress has been slowed rather than

halted.

Herbert H. Lank

cals

Total

production

and

chemi¬

products

for

1960,

1.5 billion dollars, will be 6% higher
preceding year. This rate of advance, how¬
ever, cannot be sustained during 1961.
Under present
conditions, it is difficult to see any marked improve¬
at

estimated

the demand for industrial

chemicals.

The

the

confidence

authorities

than this unless it

free

the

occupations, mindful
solidarity that must
Western

nations,

need

disadvantage of
growth

our

ada, to

ward off
free way of life.

Hon. Jean

Lesage

The

taken

Government

With

respect

Western
at

Canada

serious

world

oil

Canada

in
the

the
only

Ventures

producing country that has no
import restrictions to protect its in¬
dustry. At the same time, for our
exports of oil to the United States,

further because
costs

more.

price for
•

ALMINEX

The

government is

those
our

who

wish

fully

enter

too of the needs
partnership with us

aware

into

for

our

Continued

MALARTIC
MAGNESIUM

FAHRALL0Y

oil not only for export but also, relatively
all the oil produced for the Canadian

industry produces a far larger percentage of
consumption than is the case with

domestic

Middle East and
other cheap labor areas would be even greater except
for the protective influence which major Canadian oil
companies have exerted to restrain the flow of foreign
oil into the uncontrolled Canadian market.
Neverthe¬
Canada.

LIMITED
GOLD

MINES

Nepheline syenite
LIMITED

LIMITED

Gold

Magnesium,

calcium, thorium,
alloys

zirconium

and

LIMITED

CANADA

Alloy sieel castings

FALC0NBRIDGE NICKEL MINES LIMITED

Nickel, copper, gold, cobalt and precious metals

GIANT YELL0WKNIFE

Gold*.-.',

KILEMBE

COPPER

MINES

COBALT

LIMITED

LTD,

Copper

(Kilembe Mines Limited)

oil

company,

other metals and

total

•

Oil and gas

NEPHELINE

DOMINION

Despite these handicaps, we in Canada have to use the
same equinment and techniques and pay the ^ame wage
scales that are being used to find and produce oil in the
United States. Even with strict pro-rationing the United
States

WEST, TORONTO, CANADA

exploration and mining financing

E. H. LaBorde

Canadian dollar

market.

its

STREET

LIMITED

CANADIAN

Unfortunately, these discounts establish the

our

speaking,

25 KING

LUZ

MINES

LIMITED

METAL HYDRIDES

R0SITA

MINES

UNITED KEN0

Gold

INCORPORATED

0PEMISKA COPPER

MINES

(QUEBEC)

Metal

LIMITED

HILL

MINES

and chemical

hydrides

Copper, gold, silver
Copper

LIMITED

Lead, zinc, silver and cadmium

Canadian oil imports from the

Canada's imbalance of trade in 1959 was close to
$775 million, with more than half of this amount result¬
less,

MINING
EXPLORATION

DEVELOPMENT

development, whether they be from within the Con-

interests in the following producing companies:

AMERICAN

natural

market, we have to lower
our
price to justify the customer
paying the U. S. import duty. We
then have to discount the price still

Limited,

has substantial

oil

OFFICE:

has

through sound legislation and making available the re¬
quired services to private interests wishing to partici¬
pate in our development.

has been operating

disadvantage

market.

HEAD

Quebec

We fully realize that in a free enterprise economy the
role of the government is one of coordination of efforts

rate

production,

our

AMD ASSOCIATED COMPANIES

gas.

provide leadership in the well-ordered
and intelligent development of the Province's natural
and human resources, since it is no longer permissible
in this day and age to be content to improvise in matters
of economic growth.
measures

ENTURES LIMITED

the
related
expansion of our
sulphur production as a by-product

particularly
threat to
-

natural gas industry,

and

free
pre¬

she is of the
exist between

any

Ca¬

oil production, the very satisfactory

the

her

between the United States and Can¬

LaBORDE

in 1961. These are the urgent
for government action to alleciate the competitive

and

is forced on the

major factors influence the outlook for the

generally.

least

President, Canadian Homestead Oils Limited
Three

pre¬
year

service

world

contribution
not

re¬

nadian oil and gas industry

the

by events in financial markets.
E.

the

for

resources

the

world

than in the

ment in

difficult

pessimis¬
Province of

are

growth
„

Quebec's

just

year

rather

are

people, of the Canadian nation

and

the

\ **:<'/:■

Canadian;

Quebec

sufficient

her vast

Product

the

LESAGE

continued

her

cumstances, the production of goods
-and

85%

Quebec disposes of a wealth of the
fundamental. requirements for eco¬
nomic development and is increas¬
ingly aware of the necessity to place

Under the cir¬

years..

largest

Canada's

generally voiced prediction that the declining ten¬
dencies in the economy will be halted by
mid-year.
Unfortunately, there are no factors
in the offing
sufficiently strong to
bring about a healthy economic re¬
fact

the

markets

particularly when economists

optimism and underlies

harsh

external

economic forecasts

•

cyclical downturn has

The

considera¬

one

afford to lose sight of the fact
that
production is consumed in Canada.

the

vival.

consolidation

perspective, the Canadian

in their true

drift

world

producers

taxes

LANK

note

way

ahead.

can

enough to

has

years,

economy..

acquire

President, Du Pont of Canada Limited

encounter

circumstances, it is understandable that
expansion, which characterized the indus¬

drive for

spread between Canadian and U. S. interest
minimum, but it seems unlikely that we will

anything

see

all factors favoring the continued growth
industry in Western Canada.

affect

the

also

domestic markets, plus the

our

elements

duce

but

gas

has
sus¬

new

potential sulphur production.

look for

productive emphasis can be effected, and indeed
absolutely essential for such a climate, but it is not
just a matter of shovelling out more money to stimulate
indiscriminate spending.
By the end of September last
the money supply (that is notes, coin, and checking de¬
posits with the chartered banks) had almost regained
its previous record level, and it has since risen rather
sharply by about 3%. This is quite a contrast to the
relative stability of the preceding two years. We might
reasonably hope that the Bank of Canada would permit
somewhat further

strong

Capital investment by the chemical
industry during
was
substantially higher than in the preceding year.
Although such expenditures next year will be aided
by
the large carry-over of unfinished
projects, additions to
capacity will once more be below the peak reached
in 1957. Capacity in the
industry is in excess of market
requirements; foreign competition is reaching dangerous
proportions, and profits have failed to rise proportion¬
ately with the rate of new investment.

Prime Minister

oil

are

increase

by providing

products
a

1960

HON.

diversify into

shifts in

it to

consumer

severe foreign
competition as production facilities
being built abroad come into operation.

only to

stimulate recovery,

structural readjustments.
monetary policies
climate

now

for

Exports, which were
during 1960, are likely

taining .element
more

market

major product for export. Already, some of the largest
sulphur companies have gone into Western Canada, not

does not do very much directly to

favourable

transportation.

the

has shown very little growth during

chosen and well-administered
to

that a pipeline can be successfully
ship sulphur in slurry form, as is being
done with coal. Cheap and safe
transportation of sulphur
to deep water at the Great Lakes would
greatly strength¬

realise. By the end
much more definite

not think
and

methods

substantially easier monetary policy in 1961, designed

of the sulphur which
locally will then require

proposed

constructed

signs of renewed vigorous growth.

marketing
consume

development of low-cost

the

perity is the basis of growth for a trading country like
Canada. It may take a while yet for these factors to
themselves out, but there are encouraging signs
we are

Effective

will be unable to

work
that

coincidence

restoration

same

re¬

readjustment

competitive position of Europe and other overseas
tries

1957,

remove

noticeably.

momentum/Fur¬

thermore I think it is
that

America

the economy has never since

gained its

North

the

Looking
distinct

most economic series in 1956
for

A. T. Lambert

high

growth

slowed

shipment most of this Canadian gas is proc¬
the by-product sulphur.
As a result
cf the
growing demand for gas, in the • near future
Canada will be producing far more
sulphur than it can
immediately use in its own paper, mining and other
essed

PRODUCTION

FINANCING

page

26*

(458)

The Commercial and Financial Chronicle

Continued from page 25

federation

from outside the frontiers of Canada. Their

primary need is the complete and lasting assurance that
they are welcome and that'opportunity will; be given
them to invest profitably in our Province.- It is for this
reason that the Department of Trade and Commerce of
the Province of Quebec has been completely reorgan¬
ized and is now staffed by experts in the various fields
related to investment and development.
The Services
of that Department are available to all interested parties
so that they may establish in Quebec with assurance and
confidence. As well as inviting those who are interested
in partnership with us, and while working to maintain
the stability that will provide continued security for
their investment, we encourage them to cooperate to
the greatest possible extent with the requirements, of
good corporate citizenship.
* ;
v-."'v
The participation of Canadian capital and directorship
in development resulting from foreign investments off¬
sets the obvious danger which results from too much
control of our resources being held by persons residing
outside Canada and contributes much to strengthening
the faith of our neighbors in the value of our resources,
in the stability of our economy and in the welcome
which we offer them in establishing here.
Looked at in these terms, foreign investment, whether
American

vince, is in
of Quebec.

European

nomic outlook of the North American Continent in
1961,
on evidence .of increased unemployment ;in 1960.

Quebec however, economic trends in that year, showed
balancing effect on the forces of regression

favorable

and

recent

our

facilities

optimistic

way

those

and

domestic

the

market

Installed

power.

the

and

further

availability

power

at Jan.

1, 1960

installations under

was

way

there is

reason

believe

President, Chartered

undertaken in the years to

Quebec's population

is growing at

that of the rest of Canada.

faster rate than
This will mean an increasing

growing labor force and the necessity for the
government to promote new industry to provide broader
employment opportunities. Thus, new industries wish¬
ing to settle in Quebec will receive a favorable welcome.
market,

Quebec has

ing not only

efficient transportation system cover¬

large domestic market area, but reach¬

ing out to surrounding markets and to all parts of the
World.
' 1
'
■

enticement to invest¬
are foreign to
legislation and equality of
by us as a basic requisite

Quebec's social structure is
ment from

Restrictive

abroad.

thes pirit of our business
opportunity is looked upon
of growth and prosperity.

measures

Capital and repair investments, increased in 1960. For
the first nine months of the year gains have been regis¬
tered in various sectors of the economy: in agriculture,
forestry, mining, manufacturing and population.
The

employment index went from 121.7 to 123.7 for all in¬
dustries, and from 111.4 to 112.0 for manufacturing in¬
dustries alone.
The average weekly wages went from
$70.38 to $72.28 which should guarantee an increase in
personal income and buying power.
Economists

have

expressed pessimism

to the

eco¬

LANGFORD

Can.!

:my.

fore¬

economy last year was that busi¬
forecasting is extremely hazardous. I closed, my
with the: unoriginal but at the time
popular
.

"Soaring Sixties."

The Canadian

economy not only refused to soar in
1960 but toward year-end was hav¬

trouble holding level flight.
into 1961 many factors
to a rather uncertain year

some

Fortunately several major segments of Canada's econ¬
omy should continue to hold up or even expand
what in 1961, e.g. pulp and paper, the extractive

ahead.

Efforts

ernment

lar at a discount can be envisaged in 1961. Flutters in
; the market for Canadian Gold stocks can be anticipated
during 1961 as. European money centers continue to sus¬
pect the validity of the U. S. dollar; These alarms Will■
probably occur from time to time until the U. S. Treas¬
ury works out a permanent
of balance of payments.

the

downturn

view

The

omy.

petroleum industry showed considerable
1960, despite the levelling-off trend of the

general economy.
Demand

for

petroleum

the

reduce

effects

inflow

foreign

price struc¬
calls for action

our

capital

because

its

manufacturers, on the exchange rate
Many in high places in Canadian
financial circles disagree with the Governor but at least
his remarks are generating vigorous discussion across
of the Canadian dollar.

and

external

trade

with
A. N.

also

before

long,

oil

Unfortunately one cannot see at this
real sign of understanding of the
urgency of

Bache & Co. Will
Admit Partner
Hans

will

Czernin

become

Paris

partner

production

Bache

the

expected

is expected to

over

increase

1960.

activity
will
likely
slowdown, while crude

increase by

more,

on the growth rate of Canadian crude
exports
Natural gas activity; influenced
by the export

1961.

40-odd

refineries

high level.

should

utilize approximately 87% of
This is only slightly below the
average utilization of the past five years.
their installed

•

capacity.

The growth in Canada of the market for
aviation fuels

..-A'--;'.

,-r

'.•••

V/."'

•

l'v

•

■'

lI/;'1 '

;

'■

(1.

V;-.

Continued

Over Half

Feb.

that

existing conditions no major additions to re¬
fining capacity seem likely during 1961, and Canada's

price structure.
any

Maritime

are

Under

a deterioration in its employment situation."
Competition from the revived West European economies
and from Japan point up the
urgency of the problem of

time

1961
.

demand

market, will continue at

declines, to

our

attributed to

the

depending
in

its competitive power

for

by about 3.5%
Exploration

Lilley

experience

concerned,

possibly the recent remarks by the Director of the Inter¬
Monetary Fund, Dr. Per Jacobsson, should be
recalled "Any country which permits the
price level to
go on rising will be exposed to balance of payments dif¬
and

industry in Canada will
progress
at a slightly,'more rapid
pace than the economy as a whole,

national

ficulties

can

refinery

petroleum

ployment figures are disturbing—a hard core of gradu¬
ally increasing numbers of unemployed. This problem
bedevils Federal, Provincial and Municipal authorities
but cooperative
efforts by all levels of Government
appear to be on the way.
internal

increase

new

Indications

the statistics showing the start of a business
recession warrants some action on their part. The unem¬

record

Provinces.

cated that

far

of this

the nation and the Federal Government has at last indi¬

increased

by about
high of nearly
860,000 barrels daily, while refining
operations were up 4% to 760,000
barrels daily.
The industry increased its
refining
capacity by. about 90,000 barrels per
day over the year before. A portion

Canadian

products

4V2%

econ¬

The Governor of the Bank of Canada hammers at

the theme of the noncompetitiveness of
ture both externally and internally and
to

Canadian

progress

the old-fashioned law of supply and
demand will be the final determi¬
nant in this vital sector of the

A. N. LILLEY

President, Texaco Canada Limited

of the large inventory of
unoccupied dwellings in several
major areas of the country. Perhaps
Langford

in former years

new

H. E.

balance

dians.

building by increasing the
availability of credit and extending
the
terms
of
repayment may not
effectual

solution to the U. S. problem

1961 will be a good year for most Cana¬
mid-year we will finally decide "to have a go
at" this competitive price business.

by the Federal Gov¬

arrest

home

prove as

some¬

industries and retail trade.- The expanding natural gas trans¬
mission gathering and distributing industries will pro-,
vide a major prop:for the eeonohxy. .Manufacturing could,
benefit from the efforts, to do something-ubout foteigii
dumping. A further reduction in the "premium on the
; Canadian' dollar uis-a-vis the U. S. dollar -would be
jbf
; great help; to our export trade; If the inflow of U. S.v and;.
other capital should show a decrease, theGuriadiah' dol-

we move

point

increase

article

expec¬

come.

cast for the Canadian

important requirement of in¬
dustrial development.
For instance, the Manicouagan
project will harness an additional potential of 6 million
H.P. which represents over 50% of present installed
power and this is only one of the projects which will be

way,

Trust Company, Toronto,

ing

govern¬

of Quebec

Perhaps the most accurate statement made.-in
ness

;
;

under ./

every

that the economy

will grow to new and greater,
heights.

this

the

encourage industrial investment in

11,748,804

will

determination of

ment to

Certainly there is

planinng board, the increasing

the

and

;

and

Thursday, January 26, 1961

by labor leaders nor, indeed, by some indusno reason to think Canadians
can
compete successfully ., inworld- markets with the
industry and intelligence of Europeand other areas.
unless they are ready to work as hard. The solution may
call for a national .effort, maybe on the scale of Mr.
Churchill's blood, sweat and tears; at least, some extra
sweat would help to put our' costs on
more realistic
basis.'
rV-V ' :
trialists.

to maintain

projects

tations for growth in 1961 are based, particular emphasis
is placed upon the abundance of low-cost hydro-electric

H.P.

restoration

small way

no way incompatible with the best interests
We therefore welcome as partners those who

Of the many resources on which our

economic
no

the level of investment and
employment.
t
:
Moreover, when we consider the stupendous natural
wealth of the Province, the numerous

from another Canadian Pro¬

wish to take advantage of the development
extend to them.

program

expansion will contribute in

the problem

mostly
In

page

Century

of Investment

Experience

Co., 36 Wall Street, New York
City, members of the New York
Stock Exchange. -

With

over

ments,

50 years of experience in Canadian
invest¬

our

organization is well prepared

investors interested in Canadian
securities. Our

Canada's most active
pup

A. G. Edwards Sons

To Admit Two

LOUIS,

realty investments

Mo.

Jensen

the

On Feb. 2,

Bay Street, Toronto,

035 Dorchester

Street W.,

Ontario
Montreal, Que.

Jan.

26,
a

G. Edwards

Sons, 409 North Eighth Street,

Midwest Stock

320

will become

limited partner in A.

members

Ltd.

—

also become

New

York

banks and dealers.

fourteen

and
able

New York, N.Y.

stock

;

service in Canadian

execute

exchanges,

securities, and

orders promptly

net

en¬

all Canadian

prices in United States
)

•

Exchanges.

partner in the firm.

Wood, Gundy & Co., Inc.
40

Wall

Street, New York 5, N. Y.
Telephone DIghy 4-0633
Affiliated with

Lexington Avenue.

Wood, Gundy & Company
Members

Oscar Gruss & Sons

The

Toronto

Oscar
New
New

Gruss
York
York

Feb.

bein

will

Son,

80 Pine St.,

City, members of the
Stock

Exchange,

^idmit

A. Jack

partnership.

Helf-

Stock

Exchange
Montreal
Canadian Stock
Exchange

Stock

Exchange

and

To Admit Partner
t

funds if desired.

Tankoos & Co.
331 Madison Avenue,

quarters in the New York office,
485

serv¬

investing institutions,

principal Canadian cities provide fast

accurate

Swirbul will make his head¬

Mr.

and

Leon P. Swirbul will
a

readily available

are

Direct private wire connections with
affiliated offices
in

ST.

George A.

Tankoos Yarmon

ices

serve

Wood, Gundy & Company
—

Limited
Head

—

Office—36 King St., West, Toronto 1, Canada

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

Volume

193

Number

6024

The Commercial and Financial Chronicle

Continued from page 26

Gold Holdings
Abroad Denied to

esses

that

from

ing

used

are

barrel

for

oil.

;

Eisenhower

extends

ban

held abroad.,

any

general, the highly competitive conditions exist¬
in the Canadian petroleum industry in 1960 will

against

The

President

signed
ther

Jan.

14, 1961,
Order, fur¬
Executive Order

amending

of Aug. 28,

1933, to

diction

situated

gold

abroad

States,

United

■

cubic

and

of
on

has

se¬

representing gold

curities

posit

United

de¬

not

abroad

since

believed

gold

this

that

held

manner.

individuals

States

not

With

S.
balance of payments.
prohibition of such holdings

also

gold
principally
a
settling
international

countries.

amendment
No.

6260

The

prehensive
wards

the

United

Order

jectives
dent's

Directive

taking

assure

United

step

forth

all

Nov.

dollar

ob¬

17,

cor¬

M':: ':/T~:;
It was/announced that! imple¬

monetary system;
;

menting

amendments

the

Treasury Department's Gold Reg¬
ulations,
to' be
issued
shortly,
would
afford
existing American
holders

gold abroad, and
representing gold

securities

deposib. abroad,
riod

reasonable

for

least

•

1960

pe¬

for

1, 1961 to
dispose/of, their holdings.

crude

before

Willard

—

the

election

Becker,

Mason

Lee

and

for

Shackett

one

organization

pally; with

since

690 East Green Street.

also

been

the

all

the

business
and

the

has

had

the

Moines

Des

since

1933.

joined

NHA

connection for 10 years*

Harris,

n,.

could

should

by an
right

the

institutional

hold

their

and

engineering

There

own.

should

con¬

10% increase in residential construction and this
be

conservative.

compared

expect

total,
small

therefore,
increase

seems

activity

1960.

Continued

•

page

•

••

•

/'//;■

Canadian

doubling of

A.;-/'•"

/'■»/ •.«///A;

Investment Securities

•

1889

1961

heavy decline in resi¬
with increases in

building

reasons

offset-

ascribed

are

for

;

heavy

attached

the

use

such

order

discuss

mind

that

under

Housing

Act

1954

banks

these

must
the

A. E. Ames & Co.

be
Na¬

Incorporated

well

the

char¬

insurance

New York

Boston

houses

which

were

demand

and

which

Canadian

Toronto

;;

1959

•

Winnipeg

•
,

;

Vancouver

Calgary

„

"/"•

j /

Victoria

and other Canadian Cities

and

as.

good as that frem industrjbal feands. and .other forins

investment which required less-

/banks

./'

•

Affiliates in

Montreal

the

was tapered off substantially
drastically in 1960 when the cry became;;
/"balance the budget."f t
;'/- ///" "*
V;/ - //•/./.-'
/ - In- the early part at I 960* the approved lending instittfrtionsj other thaii chartered- banks, were doing very little/
NBA -mortgage: lending as ther return at 6% % was; not/

;

Upham> & -Co/f? 912

-/Baltimore Avenue;

Commercial,

reasonable

government 'direct- lending

CITY, . Mo.—Jamesr M.
Miller has been added, to the.staff/
'

least

government thought it desirable tos encourage, hence
government soon ./resorted to direct loans which/
attained, a large total in the year 1958, This /rate of

-KANSAS
of

down.

the

'////-/•;: £ •//•
V

Harris, Upham

summarize

struction

|,i

followihg his tour of duty in
Marine Corps. /-Mr.: Pearson,:
former officer bf the Bank of

a; .'

expanded

and

the prospects for 1961, there seems to
enough uncertainty in the profit outlook for manu¬
facturing that industrial construction will be somewhat

panies were made eligible to be approved lenders
against government insured NHA mortgages. This Act
was
supposed to have made it possible for the govern¬
ment to refrain from any direct government lending.
However, for various reasons the approved lenders did
not always provide sufficient funds for the number of

America, has been in his present
,

greatly
right type

the

companies, trust companies and mortgage and loan com¬

the
a

government money as was available
and lack of demand for houses. In

tered

ago
"

daily,

sectors not sufficient to

tional

L. F. Long

Mr.

securities

-the

Coast

Becker

mar¬

-*'•

borne

He has been

Omaha,

very

tions

Bateman,

Administration.

with

lend¬

decline in house
building.
Among
them
are
lack
of mortgage funds,
undue restric¬

the Bate-/,
Eichler organization 11 years

Mr.
man

•

expected

are

offering of houses
prices and terms.

Products Limited

it. Various

Long Beach office^ 4216 At¬
lantic Avenue, since its opening

/connected

other

Cronk, /
office, has

and

January of 1959.

1958.

million barrels

dential

of the

in the total domestic and export

show

Mason has been resident manager.,

Loughney

progressed the rate of indus¬
and
engineering construction
slowed down, but it now looks as
though the year as a whole will

the War Production Board and the

Assets

E. D.

was

trial

wide experience with the Securi¬
ties
and
Exchange Commission,
War

there

—

with

1950

building in 1961

as lack of demand is
concerned, the evidence
inconclusive. It is probable that the demand for hous¬
ing is quite elastic. With a good level of
disposable
income this demand can be

year

since

house

very diverse trends. In the early part of the year
types of construction were showing increases aver
previous year except residential building. As the

Mr.

Pasadena

associated

Eichler

;

direct

some

princi¬
Pasadena office,

the

1961.

The construction- industry in Canada in 1960 has shown

1952

the
and

So far

F. LONG

/
Mr. Shacksett has been with the

/ President, Building

Cronk,

Norman

office.

production in only 10 -years.

of the Pasar

manager

branch

end

thought

getting the government out

compared with an average of about 522,By 1970, total 'industry production,

as
Vice-Presidents, and
appointment
of -Louis
V.

rdena

1960.

Pearson

/the

little

Bate

Floyd

the

increase of 50%

b/d

1960

Eichler & Co.,-/ 453 South
Spring Street, ' members of the
".Pacific/ Coast Stock
Exchange, /
J;

with

■

man,;

announced

and

sound housing policy or a stable

long-term development of oil and gas re¬
in Western Canada, it is not unreasonable to look

should exceed

Richard

some

accounted for by a 21,000 b/d rise

/a'a'AU/
Calif.

figure.

oil.

rate

Meanwhile, there could easily be overstimulation

crude

the

house

Act

the

000

.Promotes Five
President

1,200

producing potential by expanding

Canadian

800,000 b/d

has

was

that

market-for Canadian crude by 1965. This would increase
the levels of industry crude oil production to close to

Bateman, Eichler
LOS -ANGELES,

1954

volume.

$450 million..

serves

of time until June

i;GV; DeGroot,

1959

considerations

Although drilling footage for the first 10 months of
1960 showed an approximate increase of only 4%, the/
future for drilling activity
and exploration work in
Western Canada looks promising particularly with the
encouraging future anticipated for gas production.
The pipeline industry should have a' busy year during
1961, following a lean season in' I960 which saw only
a
couple of major projects-4 completed. However,'next
year should see a boom in pipeline construction, with
the carry-over of this year's projects, plus those planned
for 196F
calling for an anticipated investment of at

1960

the

Canada

Presi¬

intqrna^

Vr M C

was

the

apparent

building industry. There is a growing
for a Royal Commission or some
similar in¬
vestigation to determine how the financing of
housing
can
be handled so as to attain the
objectives of the

Consumption of petroleum products increased by less
5 % and the levelling off in this area of growth
was
reflected in a slow year for refinery construction.
However, this decline should be offset by the construc¬
tion of 20 or more gas processing plants in Western

being

the

day,

demand

ing.
at

year,

than

possible measures
strength ;of...-the

the

States

kets

to¬

the

background

development of
efficient

com¬

work

balance

furtherance

set

nerstone

excess

equilibrium

States

This

payments.
taken

program

reasonable

political

and

prove

this

this action

activity in Canada is greatly dependent
upon house building activity and that this in turn is
dependent upon government action, often based
upon

exports to the U. S., made possible by efforts of the
major integrated oil companies to relieve the current

should be viewed in the

light of the Administration's

should

other

the

With

present

Executive

for

1960. Most of this

payments between individual for¬

eign

construction

of construction

Although crude oil production did not live up to the
somewhat optimistic predictions made towards the end
of 1959, production rose 22,000 barrels per
day during

represents
of

billion

;

charge

government

able and eliminate the restrictions.
However,
came so late that it had no effect in
1960.

economic

continued

double

underlines the fact that

means

290

some..

expansion of both
domestic and export markets, daily
sales of natural gas by the end of
1961 should be 80% greater than the
1960
average.
Export sales in 1961

holdings abroad where purchases
generally represent an outflow in

today

MMCF of gas per
MMCF
over

hold gold in the United States,
reasonable to prohibit such

the

Canadian gas annually
motion a large program

200

permitted

The

rate

Production

and

are

Canada's

ring economic activity.

However,

enterprises
subject to the jurisdiction of the
United

great value in combating the present
unemployment situation ,and spur¬

large

being

States

feet

set

of drilling, plant
pipelining, which

abroad.

amount

slowdown

the

than the chartered banks. At the same
government became alarmed at the mounting
unemployment and decided to Jadd to the funds avail¬

from the 1957-58 recession, 1960 proved a suc¬
cessful year for the Canadian petroleum
industry—par¬
ticularly for the natural gas segment.
Approval from Canadian and U. S.1"
Governments
for- .export into / the

pro¬

subject to the juris-

the

With

were not interested

was

time

recovery

hibit the holding by United States J
citizens and enterprises and
by t
other persons

spite

level.

lenders

LOUGHNEY

President, The British American Oil Company Limited

Executive

No. 6260

E. D.

this

permitted

6%, and

restrictive

continue in 1961.
Pres.

not

were

limiting the funds
making available for direct lending and placing
conditions on such loans, there was a
very
definite shortage of NHA mortgage funds.
Toward the
latter part of the year with interest
rates declining
NHA
mortgages did become attractive to approved
it

they

than the legal bank rate of

proc¬

upgrading the products derived

of crude

holdings of gold domestically to include

that

reason

and petrochemicals will continue to influence the

U. S .Citizens

(459)

were

not

servicing. Chartered

making NHA mortgage loans for the

London, England

•

-j ;-'/>

r\v- ,/.;.v

/•.'

/-/./'-■"*> rarls, France

/ "

v.-;

•

(460)

The Commercial and Financial Chronicle

AS WE SEE IT
roadblock

supposedly

are

heart

Democratic

Further

additions

page

istration intends to do,
that

least

paths of a parently been the general
projects that trend of thought of the new
close to the Administration. Thus hard

the

regime.

from

the

number of other

Continued

facts

seem

substantial much

to render

problems

difficult

than

the

outlays on they appear when mere critidefense would present a prob- cism of some other Adminislem. Higher taxes are hardly tration is all that is in order.
anti

and
cause
or

recession

deficits

from

measure,

whatever

arising may well bring
foreign uneasiness

increase

about

our

dollar

and

thus

complicate the gold loss problem.
Various
other plans
which would increase Federal

similarly insharp curtailforeign aid of any

expenditures
Any

volved.
ment

sort

would

counter ; to

are

seem

what

run

has

ap-

Then
has

the

Administration

undertaken

none

Thursday, January 26, 1961

at most excellent device for the tax system,

sufficiently
specif ic to be of much
enlightenment. There are
groups supposedly in substanPart responsible for the
President's successful political campaign last autumn
who have very definite ideas
on
the subject. Influential
labor unions, in fact virtually

Others

purpose.

bigger

say

and better subsidies for housing would do the trick, or at a man who has substantial
least help do it.
income, and particularly the
man who hopes to develop a
.

What Will He Do?

substantial

hoped that the
President will, if he has not
already done so, soon see the

most productive group in the
whole population—can afford
to
give his
time
to
the

fallacies

creation of wealth rather than

these

arguments,

permanent prosperity, is to be to place us on a better footing
found in higher and higher vis-a-vis foreign producers
wages
and shorter and and to give a lasting fillip to
shorter work hours.
The industry in general are not.
farmers, or some of them at far to seek. It is difficult to
least, are equally convinced see how any rational man
that bigger and better sub- could doubt the benefits that

formation

sidies

been

vouch-

income

—

the

aH labor leaders, are ap- But what will he decide to to ways of making ; certain
parently convinced that the do? Some of the things that that Uncle Sam will not take
way to faster growth, if not he, or someone else, must do all or nearly all of his gains

give, an
enduring stimulus to American industry so that it may
show a greater growth ratio,
Presumably measures designed for this purpose are
not quite so urgent and
in
any
event would normally
take some time to develop
and perfect. Virtually no inhas

one which would
reduce the rate of progressiveness very sharply so that

agricultural

safed about what the Admin- ducers would

prove

pro-

would

basic

derived

change in

from

income

our

if by some chance he is successful in his undertakings,
In view of the widely accepted New Deal view of the
m„ftprit

nlainlv

i.nwpwr

' f ,
a P°lltlcal problem as to how
such a change in the tax laws
,

can

be made.

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The Commercial and Financial Chronicle

(462)

Continued from page 27

Our

and

D. S. MacDONALD

;

this

area

facing

are

uneasiness

business

There

funds,

either
and

ment,

two

are

that

off.

business
the

due

Line

and

the

for

insolvable

seem

signs that the backlog of demand for new houses
largely been met.
Government measures to

many

now

stimulate the industry by

favorable mortgage terms have
However, the na¬
gas industry is enjoying vigorous growth while
the government has indicated it will increase expendi¬
tures on public works. As a result of the stimulus from
these sources, capital spending should hold up well and
although a decline is expected it should be of moderate
not

may

yet had the hoped-for effect.

tural

the

of this year the Atlantic Provinces Grid

proportions.

into being when the three major electric
of Nova Scotia and New Brunswick joined

Buoyant

the industry

ing the removal of trade restrictions. A marked expan¬

construction

for

and better service to the public.

increase in exports in

sion in

general forecast for 1961 we would expect to see
study made of our productivity and costs and a
efficent and aggressive salesmanship carried out in

closer

this

take

McGOWAN

all

affected

The

Secord Candy

United

Although general business activity did not reach the
expected level during 1960, there was improvement over
the previous year in most industries. The candy industry
experienced another good year, with our own company
again
registering
a
record
sales

have
date

revised

been

now

element

for

1961

accomo¬

There
any

level

trend

nonresidential

uncertainty, in¬

prepared

The

1960

urban

some

areas

expenditures.
would
of

strain

months.

two

Canada.

business

the

dian-owned

greater

firms

extent

investment

may

than

ness

the

past

capabilities
have

people

growth of the Canadian market, will be helpful in this
struggle.
A,y''
"■■■ ':i;;■
'/y<
"AvA '

A doubtless

characteristics

L. J. McGowan

change in the Canadian market has not been only
of size.
Our increased population has been
drawn from many parts of the world. These new Cana¬
dians have brought with them
consumption patterns

In addition, foreign construction firms are
showing a
tendency to seek association with Canadian firms on

businessmen

the

In view of the close¬

Canada

the

and

display much
the coming year.
DeM.

in the past,

United

the

States

will

general

same

■

MOLSON
;

During the second quarter of 1960, the Gross National
Product, seasonally adjusted, declined by about 1.5%.
Since final prices were/substantially
unchanged, the
decline represented for the most part a drop in the
"/physical
volume
of
production.
'

they launch here.

terms

whole in

relaxation

President, Molson's Brewery Ltd. '

welcome tendency for more of
these firms to avail themselves of Canadian
engineering
and construction services in
projects

The

among

a year ago.

HARTLAND

years the special
engineering and construction
brought to the attention of foreign

been

continue

Canadian

investors and there is

economy

slight

being watched carefully, for,

are

the activity generated by foreign in¬
vestment in this country.
Over the

R. J; McGilles

the

increased

factors.

associations, business conditions in the United

our

States

the ^economies

time, Cana¬
shareTto- a V I

same

evidence

;

unknown

little

-over-optimism apparent

are

rate

the exact form its
are

the

aims, justify optimism for
good sales year in 1961.
profit picture is a bit more
difficult
to
predict. Certainly the
candy industry along with all other
fields of endeavour in Canada, will
have to contend with rising costs.
The economies of large scale pro¬
duction,
made
possible
by
the
The

doubt feel disposed to increase

take

few signs of any special
encouragement for an
increase in

another

How much the government would

accompanied

.was

There

the

high

level.

of the economy is
an
adequate level,

sector

business

to spend and

absence

activity

economic

of the
monetary stringency which existed at the beginning of
the year.
Conditions within the banking system and in
the money markets have both tightened up in the past

;

during the coming year, with activ¬
ity continuing on a fairly even keel,
and

private

government will
own

expenditures

the

maintain

principal market.

our

demand

construction

levels

lower

its

business

can

States,

insufficient
'the

expected to reflect the over-all trend

by some disappointments
in 1960. However, for the candy in¬
dustry, Canada's growing population
and
the
high
living
standard
at

part of the Canadian picture

troduced

which

slowed

activity.
The

predictions

1959

expect 1961 to be character¬

can

ized

volume.

early

1960.

inhibit

begun

recovery

still seems to be enough un¬
sharp upturn in 1961.
How¬
ever, there is little danger of a reversal of the trend of
the
last five years.
Consequently,

certainty

Most

economic

general

somewhat in

Shops

possible steps to protect her markets in these

Canada's exports would, of course, be unfavorably

areas.

McGILLIS

Laura

unlikely in view of the apparent

pean

President, The Foundation Company of Canada Limited

President,

have been captured follow¬

taking place in the European Common Market and Euro¬
Free Trade Association and can be expected to

world markets.

problem in 1961 will be to secure a satisfactory
profit under extremely competitive conditions.
J.

sector

slowing down in the growth of the European economies.
Canada
will
continue to watch closely developments

industry,

our

markets were primarily responsible
1960 but it is not yet clear

overseas

whether permanent markets

business available

now

new

forces to operate as a unit for the generation and trans¬
mission of power, and makes for greater efficiency in

D. S. MacDonald
or canceling plans for ex¬
pansion and making do with their
present facilities. This, naturally, is affecting the amount

the

came

companies

delaying

that

in the future.

business

which

In September

govern¬

moment

uncertainties

economic

prosperous

disappear
impact of electronics.
Our country is
blessed with the sources of power for this industry,
water, coal, oil and uranium. Here we have grounds for
optimism in the future,
i
' ' 4 A
•
because

„

Residential construction also declined and there are

has

should not be

fall

within the bounds of human ingenuity

reason

problems

de¬

sources

actual expenditures

contraction is under way,

of living with enormous potential for change and
growth. This change will be for the better. Some of our

pends largely on capital expendi¬
tures, whether for replacement, ob¬
solescence, expansion or new develment.

When

by businesses

way

construction

The

to be changing with greater

markets appears

consumer

emphasis being placed on non-durable items and services
and these trades should continue to do well in 1961.

The amazing growth of the electrical industry is by no
means ended.
We are on the threshold of an electrical

chiefly American.

competition,

need

This means

of prob¬

lot

both

Thursday, January 26, 1961

plant and equipment customarily
behind those anticipated. It is therefore significant
such a development occurred in 1960 and it appears
Canada's sustained capital boom has at last topped

why

the list are lower
rising costs and an
about
growing foreign

lems, and high
profit margins,

economy.

we will need to make adjustments with the
trading blocs in Europe, but trade is always a mat¬
adjustment, and as we have thrived in the past,

there is

firms

growing

ter of

business.

construction

Canadian

There

expanding.
our

No doubt
new

operations cover an area including Northwest
Ontario, Manitoba, Saskatchewan and Alberta, and con¬
ditions are not entirely the same over this whole area,
However, speaking generally, I would say that 1961 is
not going to be an exciting year in
Our

construction

for such in

greater home markets and looks well for the future.

President, Bird Construction Co., Ltd.

the

population

room

^Downward

trends

the

economy,-

major projects instead of attempting to bid Canadian
Canadians,. ;
including a sharp decline in exports,
jobs on their own.
; <
A '
';,y
- >
a
reduction in housing? starts,
enriching our living standard and providing not only a
and
The substantial backlog of construction
further reductions in' business out¬
larger, but also a more diversified market for Canadian
projects in the
field ,of social capital investment is an
industry. .*
r
••
A-i y.' v..
important support
•A ';>■ A.-.;
lays for plant and equipment, were
for a prediction of stability in the construction
The overall situation could be summed up as one in
industry. A partly offset by a recovery in con¬
Canada's .rapidly - growing population and the quite re¬
which the serious challenges presented by such things
sumer
spending, mainly for non¬
markable change in our economic and social character
as rising costs and more severe competition can be met
durable goods and.' services, which
during the last ten years or so have created urgent needs
using the opportunities offered by a growing and inihelped towards an increase in beer
for more schools, hospitals, and
utility services. A sub¬
sales. However, it is noteworthy that
creasingly diversified market. - '
.* \ - Av -"
<
•
stantial amount of government spending can be expected
/personal ."'disposable
income
de¬
which have

been

included in those of other

•

,..

MacKEEN

directed

into

these ^areas

if the

investment prbves to be disappointing.

"President, Nova Scotia Light & Power Company Limited

rate

business

•

Competition within the construction industry will un¬
doubtedly become even more severe, and in engineeringconstruction it is going to be difficult for
marginal firms
to stay in business through 1961.

If the sixties

to be

surging and glorious as some have
predicted, and Canada is to share that prosperity, there
two

are

fully.

are

trends with which

The

must deal

is inflation and the other is
These two factors are in¬
one

economy.

our

success-

high cost

Inflation

not

confined

our

to be

country, but the fact of its existence
in

other

lands

does

not

lessen

with

satisfactory

which,

year

we can

corrosive
slower

living

us.

expansion

for those in

brackets,

The

relatively fixed income
must hold inflation in

tend to accentuate underlying economic problems.
a. further rise in the seasonally adjusted
'level of unemployment, it is
eestimated that Canada

expect, will end

will face this winter

beginning to cut into

with

J. C. MacKeen

two

problems

;A
•
•

Consumers
and

that

.activity

there

the

boom

Consumer

overseas

appear

and

somewhat

spending
less

than

mainly

result

come and

disposable

towards

encountered

not

doubt

that

re-adjustment,"

concerted

and

per¬

amplify both the duration

serious

difficulties

earlier postwar recesssions.
further adjustments are in

than
There

prospect,

however.

•

Growth

1960

tions-

hesitancy

the

to be

economy
no

during

the fiscal

than -nominal:

year

under

1961

condi-

high

unemployment, and a continuing large
balance of payments deficit.: Government action to
im¬

was

anticipated,

plement expansionary policies could temper the adverse
adjustments anticipated.* But even under the most opti-

mistic

■

assumptions, it

appeai-s

business expansion will be

doubtful that any genuine

forthcoming during the next

six months.

personal income

,V-

•

'recorded^

gains. .However, personal
v
be wheat, oil or lead. .Over-production, may be
C.incomefhas tended recently to level
.partly
A' solved by technological
break-through.,' For instance, t* off and;this is likely to be a restrain- :.
N. J.' McKinnon
there are encouraging possibilities of : uranium*
being ^ Ang influence on consumer spending.-used in steel. In the fast approaching space and atomic
Moreover, consumers are not displaying the same will-,
age, lead could be more in demand and we have vast
yingness to incur debt as they did throughout most of V
supplies of both of these minerals.
the postwar period.
On the other hand, the nature of

■

in
eco¬
is losing

barely held at the previous year's
levels although both personal in:

•

emerge

that could

part, of consumers .in buying^
.major durable goods.
Retail' sales

petitive basis. Like other countries, in the western bloc,
we- have,
relatively speaking, solved the problem of

out of .every

As yet, the economy does
to have undergone re-adjustments indicative

movement

were

the

•

one

severity of the recession.

not appear

pro¬

mounting

situation where

may

movement

.is expected

production.- Ours is the problem of surplus, whether-.it.

sectors, do not

in the labor force will be looking for work.

- The
outlook for 1961 is
conflicting. Perhaps the pre¬
dominant questions are whether the
pattern for the year
will be
one
of
so-called
"rolling

vasive

momentum.

mind, it is possible to
Knowledge of a problem is al¬

part of its solution and with the Canadian people
there is an increasing awareness that the
postwar era
of scarcity is ended and markets are now on a
very com-

and

persons

^whether there

Canadian economy will

clearly viewing the future

caution

nomic

ways
•

are

evidence

these

emerging.

ducers

home markets. In simplest terms,

With

that the

the slackness evident in certain

it is high cost of making. Rejuvenated
Europe and Asia,
with costs of materials and labor a fraction of
ours, are
able to undersell us in some fields.
.

are

/'AAvv

to lack buoyancy
during early 1961 at least.
Strong expansionary forces, which are needed to take up

equally sensitive point is
high cost economy. This is hav¬
ing adverse effects on our foreign

evaluate certain trends.

Canadian Bank

Board, and President,
Commerce, Toronto, Canada

continue

our

now

the

Present indications

The other

our

N- J- MCKINNON

Chairman

check.

trade and

H. DeM. Molson

may

eight

tempo.
If our standard of
is not to decline, especially

out¬

widespread.

Even without

the

Its effect is especially

when

Unemployment
causes
particular concern, not least to the brewing in¬
dustry, and gives rise psychologically to atitudes Which

—

datiger for

taxes, that the rate
saving fell-sharply. A

Concern about the short-term

look

good long-term outlook.

very

of direct

of personal

The tough financial discipline
imposed on engineer¬
ing-construction firms through 1960 will prove valuable
in the coming year to those that made the
'necessary
adjustments. For these organizations, 1961 should prove

terrelated and may merge with each
other.

creased, and, since this decline was
accompanied by an increase in col¬
lections

"factor- upon
increase

which the brewing industry
about

1.8%: which

will

may

occur

population. Aa aA-A' A;Ai;•.

rely is
the

adult

A-"v-AvAAA;

Continued

page

Volume

Continued

193

from

Number 6*>24

page

The Commercial and Financial Chronicle

;

V ' ^

great

;

:};

Although prospects for agriculture in general do not
appear promising for 1961, the livestock industry should
do at least

well

in 1960.

■

Hog; production has "beeir up and down
two

three years,

over

but is

the past

on a more

stable-basis* as

we enter 1961. The
chmraerdal outpat "of hogs in Canada
for the marketing year 1958 and 1959
was 8,300,000 head.
A change in the

;

policy of the Agricultural Stabiliza-

fion Board
-

deficiency payments

brought about

ketings in the

reduction in

mar-

1959-1960 when

year

production

fell- to

There is

cattle

industry.

7,300,000

head.

the
R. S. Munn

of-

case

obvious

larger producers.

that

continued

those

who

producers

operate normally now
have hogs to sell at remunerative prices.. It is evident

expected to be much of
:

deficiency payment policy

Agricultural Stabilization Board

Government

Canada
to

the

upon

six

prices

over

prices

nine

those

current

are

concerned;.

about

expected

ago,

the

owner

least

see

appear

there

Some

are

than

upward trend in

middle

the

and the United States
ment of

The

economic

has

concern

market.

information

are

that
will

present

should

year 1960 Will be remembered
international tensions increased to

1961.

20%

Prices

time

been

felt

year

ago

sources

the

United

States

indicates that the build-up in cattle population is not as

British

Columbia

described

hesitant.

will

be taken

Government

Studies
first

Some

three

months

recession in

made

the

collapse

C. H. McLean

the

stems

benefits of

residential

Canadd**SOTL in

beneficial

the'Uiilted

States

will

have

age

those

construction

large

degree

Columbia

engineering'projects

large

industries

service

and

dependence.

River

early

have

start

its,

Communistic

sixty-one

important

year

developed to the point where they

ignored

action

necessary

resolve

comprising

groups

can

these

society

our

problems

Sound Value
In Canada

Co., Inc., underwriters and dis¬

of state, general market
public
revenue
municipal
bonds, and financial consultants,
has opened a new office in At¬
lanta, Ga.
and

CANADA'S

MAJOR

Located in the Bank of

office will

new

PRODUCING

Since

Georgia

rection

COMPANY

nicipal

bond

firm's

Carolinas,

and

Inc.,

bama.
■

with

Van

Ingen

also

and

business

increased

and
their

over

total of $15.8

billion of the

holdings of Cana-

jjg|,

Boston.

dian bonds and securities and the

|lf
|p

headquarters in New York,
maintains offices in Chicago,

Miami

Over $5.6

total represents

Ala¬

Co.,

Georgia

billion.

Canada

$10.8 billion to

mu¬

activities

If.

have

investment in

di¬

Fred E. Adams.

Adams will direct the

Mr.

the

under

1945

individuals

Building at 34 Peachtree St., the

URANIUM

balance is in direct investments

in plant and equipment.
We offer

Hooker Fay Names
New Officers

extensive investment

service in all Canadian securities

|
;

SAN

FRANCISCO, Calif.—Charles
W.
Fay, formerly President of
Hooker &
Fay, Inc., 221 Mont¬
gomery
Street, members of the

including latest quotations and
prompt execution of orders in
American funds. Our Canadian
affiliate maintains offices in lead¬

New York and Pacific Coast Stock

Exchanges,

has

ing Canadian cities and

elected

been

coast-

Chairman of the Board.

Rio

Algom,

Rio Tinto Group company and

Canada's leading

uranium producer, is geared to

meet the uranium

needs of nuclear

manufacturers and operators

power

plant

through the impor¬

sixties and beyond.

President

of
j

RIO

ALGOM

THE

RIO TINTO MINING

335 Bay

MINES
COMPANY

LIMITED

OF CANADA LIMITED

Street, Toronto, Ontario, Canada

firm.

the

'•

Crerie

with

Co.,

Ill
W C. Pitfield &

Inc.

offices

has
at

been
Pine

(c/o Bor¬
in a securi¬

Iff

30 Broad

den &

Ball) to

business.

engage
Frank

Crerie

President and Treasurer,

and M. S.

Crerie, Secretary. Mr. Crerie for¬
merly conducted his own invest¬
ment

business

Houston.

New

York

and

Co., Inc.

Street, New York 4, New York

HA 2-9251

Street, New Yoik City
ties

Forms Crerie Co. Inc.
formed

tant nineteen

to-coast wire service.

Raymond M. Young, formerly
Vice-President, has been named

1-1979

An affiliate of

W. C. Pitfield &

Company Limited

•!$:' ■

17 offices

across

Canada and

direct

private wire system covering all Cana«
dian Markets

longer

...

can

their collective

assume

ATLANTA, Ga.—B. J. Van Ingen
tributors

business, labor and all other
Continued

Van Ingen Adds
Atlanta Office

de¬

deferred. The wise decisions and positive

development, the Peace River

power

of life.

materialism.

will be

realized only if government,

the

way

portant issues in both international and national affairs

short¬

which

cisions. The time for further theorizing and rationalizing
is past. The time for decisive action is at hand. Im¬

very

developed

and virile peo¬
veritable showcase of

resources

free-enterprise

our

and

Nineteen

have
a

and

now

socialistic

effect here.

British Columbia has suffered since 1957 from

peace

that

housing

make

awakening millions in less-fortunate
being wooed by Communist propagandists,
freedom-loving nations such as Canada have some¬
thing better to offer than the way of life that stems from
lands,

the

world

demonstrate to the

the

industry with its imme¬
lumbering and plywood industries
and secondary effect on the construction and building
supply industries. While residential housing is unlikely
to improve in British Columbia, an upturn in the rest
effect

situa¬

Unless effective steps are taken to remove the causes
of economic recession, we will lose our opportunity to

construction

diate

It is

successful democracy founded on respect for the dignity
and freedom of the individual and demonstrating the

from

beyond the
is inflicting

could

towards

security. Canada with her vast
ple could and should be made

unemployment

Columbia

The seriousness

hardship it
of our people.

many

nation

British Columbia.

economy of
The
bulk
of

British

effect

highest level of debt since

contributions

Hon. E. C. Manning

same

to a recession of relatively
proportions and an economic
upturn about mid-1961. If this is the

little

new

which, if permitted to continue,
will imperil one of the most effective

mild

the

tion

the

point

may

immediate

duration
and
severity. Indications,
admittedly somewhat premature,

there

en¬

We cannot shut
fact that Canada

of this situation extends

period of former recessions and their

case,

the

threshold

the last World War.

present

comparison to the

the

and

unemployment.

been

concern

with the largest number of un¬
employed, the biggest trade deficit

by the Federal

ease

have

dangerous
occasion, ap¬

ypar

present national recession and what

steps

economy.

eyes

crosses

the

in which

year

and

nation, public

national

Company

gendered by the unsettled state of
world affairs has been amplified by
a
pronounced deterioration ' in our

below

move¬

best be

can

Canada

own

our

Mclean

Columbia Telephone

new

levels and civilization, on more than one
proached precariously near the brink of disaster. Within

in line

well

Alberta, Canada ;

The

indicators show signs of decline; some signs of improve¬
ment.
The biggest question marks are the effect of the

over

production is

such that there is little

reliable

from

Demand

c. manning

Premier of

population in both Canada and

situation

return

pork between the two countries.

cattle

V/.: .J.:'".- :' ' hon.

our

regarding the future of
it was predicted that a
substantial decline in values might well take place dur¬
ing the year 1960 because of a build-up in the cattle
population in Canada, but particularly in the United
States. While cattle prices currently are somewhat lower
than a year ago, the decline has been moderate. Latest
the

exports

factor in 1961.

President, British

that period. Now that

would

months

marketings

year

years

supply and the total income of the livestock pro¬
ducer should equal that of 1960.
;•
v;'.

reasonable balance between supply and demand. Prices
should remain at a level profitable to the producer.
While

two

would, therefore, appear that, in British Columbia,
1961 is likely to be at least as good a year as
1960, and
quite possibly a better one. w. :
:
;
/

with

inaugurated,

was

1961 should

year

conditions.

normal

past

sumption of .meat, are favorable factors which support
any increase in overall production. The situation in 1961
would appear favorable as far as both cattle and hog

product has been disposed of either in

off-shore, the

the

V •W V "

situation.

United States, and also the greater per capita con¬

large quantities of frozen and canned pork. The disposal
of this product in the first nine months of 1960 had a
all

;

important factor in the Cana¬

The increase in human

the

deficiency payments will be made in 1960 be¬
national weighted average price for the year
price.

depressing effect

continued

ample supplies of cattle
on the other side of the line.
Beef exports in 1960 were
somewhat lower than in the previous year and are not

the

When the

power

the

development* the Pacific Northern Railway and
and increasing petroleum and natural
gas
exploration and development could easily remedy this

fairly

over

Over

is above the floor

the

contemplated

export of live cattle and beef to

have declined because of

support policy was responsible for this decline; The adop¬

deficiency payments disr" couraged production, particularly in

circumstances,

least.

Three years ago the
the United States was

dian

the

can

;

Government
tion

cause

situation

doubt that the change in

that

price

next nine months at

President, Burns & Co., Limited

estimated.- Under

steady

v'munn ■'/j'f

(463)

page

(464)

The Commercial and Financial Chronicle

march

Continued from page 31
and

individual

responsibility

objective.

common

The Canadian gold

ing

mining industry faces a more promis¬
outlook for 1961
than it has had for a

profits

considerable time past.
two factors: j V.
\
i,

This prospect stems mainly from

{*':

not

receiving

Cost Aid;

Canadian dollar from

placed

dis¬

and

Canada

from direct

preserved

by default to socialistic forces within because

haven't

the

all agreed.

are

fortitude

strength within

resist

But let

them.

free economy is

not sur¬

The

for

need

the need
military strength to deter direct aggression.
The
world looks to America for leadership.
Unless we, its
our

approximately
5%%
in
1960
to
virtual parity with the United States
dollar at

great

citizens accept that

this

appears

the

desire

responsibility and all it entails, Com¬
munism is ready, willing, anxious and determined to
seize that leadership and extend their iron-bound do¬

and

the

Canadian Government in power that
should, it will have the effect, of

minion

the entire world.

over

by almost

5% the price
which the producer has received for
his gold from the Mint in recent
years.
What

President, The Bank of Nova Scotia,
Clifford W. Michel

producer, and appears to have been
exciting to the markets for gold mining

shares, was the
gold market prices that developed in
October, 1960. Incident to a renewal of the drain on the
United States gold
reserves, which have declined from
a high of
approximately $23 billion in 1952 to a
strength

free

present

low of $17.8
in

London

billion, the price of gold in the free
and

elsewhere

broke

out

the

markets

set

range

by the United States Treasury's official
buying price of
$35 per ounce. It climbed

quickly and sharply to above

$40 per ounce, from which it has now
dropped back to
the area of
$35.50-$35.75. At this level, it still offers a
modest advance to the non-subsidized
Canadian

operator;

but, more important, it has shown that unless the
United
States Government protects its
gold supply by reversing
the unfavorable balance of

payments, people throughout
the world will turn to
gold and bid its price up to protect
themselves from the inflation that has taken
place
through the past 20 years.
The

two

favorable price factors mentioned

above are
continued upward creep of oper¬
ating costs, but the Canadian operators as a
group have
exhibited remarkable
ingenuity in finding cost-saving
devices to offset higher labor and
offset in

part by the

material

factor that all businesses must
since thein
ability to raise

now

work

costs,

assiduously,

selling prices freely to meet

higher costs is meeting world-wide resistance.

GLENN

forecasters

over

the

coming

attention

better able to

are

I will

year.

problem

use

that

estimate oil industry

this

opportunity to call

be¬

the

United

States

and

the past year has held at a high
level but has not shown the strong expansion which was

nuclear

wyage

for the minds of

rather

than

Asia.
emy
to

But

succumb

would

hear

within

little of the

us—our

resist

own

able

have

the

death

were
being imposed
package by force.

upon

But most

this

will continue

fluences

should

fail

aggression.
to

This

recognize the

system

through peaceful means.
This
receiving even greater attention.

From

without, the threats

that

some

omy and

are

obvious and

threat

awe¬

place stringent demands

natural

resources

upon our econ¬
for defensive needs.
But the

necessity
of conserving
wealth
and
resources
from
within receive little, if
any, statesmanlike attention. At
our
recent election,
both parties tried to
.

each

other

dividuals

outpromise

and, with the exception of

who

were

the

coming
to

year.

see

of expan¬

sources

to bring" about an early reinvigorathe Canadian economy. The world

notable

Canadian

which

pipelines

now

the

now

business

perhaps

under way

the

picture,

the

network

new

in the west.

most

gas

addition, the
should be sustained by the various "automatic

economy

stabilizers" which

now form such an
integral part of our
structure, while the Federal Government is
undertaking a variety of measures which may be ex¬

strengthen business

ROSS

The

new

sales

life

Life

very

almost

few

completely disregarded,
publicly recognized the internal danger or the
sponsibility of each of us as citizens to resist it.

in¬
no

one

re¬

The

rise

above

the

peak.

new

$50

billion

and

the position

the best insured

Canadian

coverage

shown

tremendous

trend

families

parties,

seem

perfectly

willing

socialistic

political

accept its contents
piecemeal. In the face of the guaranteed wage, featherbedding, the rampant abuse of unemployment compensa¬
tion

and

the

wanton

denial

individual

the cry

obligations,
practically unheard.

for moral responsibility goes
As individuals, we need more intestinal
more

moral

of those

Our

responsibility ahd

who seek

our

representatives

fortitude and
should demand them

support.
in

government

should

assume

responsibility by placing national solvency above the
political expediency of the hand-out. The inexorable

surplus

beginning

now

and

Canadian families

should

money

are

exceed

million, about two-thirds
will

holders.

received

natural

see¬

caps

and

our

The

life

Canadian

life

one.

are

European countries.

this

concentrated

stantial

source

funds

One

activity

A. Ross Poyntz

will

than

of the

has

import

been

United
and

policy in Canada would

between

interest

dollar.

somewhat

the

do not

narrow

Canada

and

the
the

the

Canadian

bring to Canadian

producers for both foreign and domestic markets might
well be more
important, in present circumstances, than
the more general effects
usually expected from lower
interest rates.

on previous
occasions, mone¬
only one part of a national economic
policy. Appropriate fiscal policy, the mobilization of
Canadian savings, attention to
increasing productivity,

the

policy

maintenance

high degree of

adaptability and

resourcefulness of

our industry and labor, may all be
used, in varying combinations with monetary policy, to
achieve both internal and external
policy objectives.
Indeed, with an appropriate over-all economic policy,
the monetary action
required might be quite limited.
B.

RAMSEY

branch of the

our

1961

can

Canadian primary textile

summed

our

With unemployment the

domestic

concern

all

Ca¬

million

expected
Canadians

pay

is
80

that

extremely
insurance

available

benefits
very

sub¬

finance

present

particularly
and

ways

this

problem, and with

Session

concerned

means

Parliament

with

finding

ameliorate

municipalities will

Canadian

corporations have financed their expan¬
sion, modernization and working capital requirements
to the extent of 45%
by loans from life insurance com¬
panies. This ratio can rise during 1961. In the postwar

nearly 900,000 homes for Canadian families have

this

condition, I cannot see any other de¬
cision by our
governing bodies.
Although Canada is better known
for

life

major

the present
time, with a
Senate
Committee
now

the

the domestic market than in recent
years the
investment operations of the life insurance
companies will have even greater importance. Since

years

premium

its

resource

industries and

agri¬

culture, manufacturing supplies em¬
ployment to a quarter of our work¬
ing population, and contributes 20%
to

that

our

national

income

than

agriculture, mining, quarry¬
ing, oil wells, forest industries, fish¬
ing and construction combined.

1945

rates

The stimulus which this would

apparent that, there

heavily

States, weaken the incentive to borrow abroad,

reduce

Canadian development. In 1961 when it is
expected that
more

which

resources, by which our national growth
greatly stimulated and which we would not

Canadian corporations, Provinces and

rely

excess

working

$600

insurance market

There

inflation.

continued

Special

$100 million in health insurance benefits.

competitive

have
our

An easier money

differential

nadians

which

companies

<
on

domestic production will be felt ini Canada
international indebtedness will grow more than

countries?"

insurance

J. S. Proctor

necessary.

major

living policy¬
The remaining amount of about
$200

the

about

produce

monetary

A large part of the rise of our foreign debt has come
about, however, by the sale "abroad of securities by
provincial and municipal governments and corporations,
who found they could borrow at cheaper rates in New
York. By this borrowing the Canadian dollar is
kept
at a high price in the foreign
exchange markets, exports
are handicapped
and Canadian producers of goods that
compete with imports put at a disadvantage. So long as
this very high level of borrowing persists these handi¬

"Will

will be in the form of death claim payments.
In addition to these benefit payments it is
that

and

be adapted to hold the line

up in one sentence
government take action to give us reasonable
protection from
imports, particularly from Asiatic

re¬

ing tangible evidence of the premi¬
um dollars
returning in the form of
planned benefits. In 1961 this return
flow

might

fiscal

can

now

due

industry for

flected in the flow of benefits. More
and

productive

control inflation. We have

capacity which
goods

The fate of

This

con¬

neither such

our

has

growth.

other¬

President, Belding-Corticelli, Ltd.

and

offered

import

na¬

companies operating here. These have their origins not
only in Canada but in Great Britain, The United States

package

help

tion in the world will be maintained.
In
the
post-war years the total

collectivist

with

the

rapid expansion of

tary

responsibility for maintaining internal strength
the individual
citizen, the government and
business management. One of the
strange paradoxes of
our times
is that people, who would never
accept the

rests

however,

severe

objectives. As I have said

Assurance

insurance will
a

The easier money policy which would be
required to
lower interest rates need not be in conflict with other

POYNTZ

Imperial

able

Currently,

activity.

rising sales of new life insurance in Canada levelled
a high plateau of about
$6 billion in 1960. In spite
projection of trends into 1961, it is expected

of Canadians

subtle, but equally dangerous plan of communism
which is to bring about
hopeless insolvency and collapse
our

into

At the moment it is difficult

sion strong enough
tion of activity in

exceed
Nielson

F. W. Nicks

in¬

creased to uncomfortable proportions. For the
past few
months, moreover, the economic trend has been one of
slight slackening, and the latest indications suggest that

billion level to establish

been

wish to restrict.

Before the end of the year total life
insurance
in force in Canada will

Glenn

have

without the very
inflation which would

has been

exports,
and
employ¬
keep pace with
working force.

the
growth in the
Unemployment
accordingly

heavy foreign borrowing.
Less than half of this borrowing takes the form of those
direct investments, particularly in the development of

transactions to

production

ment in 1960 did not

ex¬

within

obtained which

were

not

wise have been generated.

That

Even with the increase in

that

goods

would

need

of diverse

avowedly is
preparing to destroy the capitalistic
system by military might, if neces¬
sary, and we are preparing powerful
deterrents
to retaliate
against such
obvious.

consumer

off at

The communist world

threat is

heavy foreign borrowing such

our

however,

over

capacity

1955-57. In this way both capital and

policies which

something like $1.2 billion compared
with over $1.4 billion in 1959.

The

they

and

the

than
offsetting
the
downturn
in
shipments to the United States and
helping to reduce the deficit in our
current international

production

excess

Such an import excess is bound to arise in
periods of great domestic expansion

Company of Canada

Can.

continued

the country.

idle

coun¬

strongly,

increased

en¬

which

overseas

anomaly of

capacity nor need for heavy imports
of goods to supply domestic demand

pressure;

side, exports to

tries

commodities

under

come

President,

willingness

conditions

buoyantly; prices
fairly
general
house-building
has experienced a marked setback;
and business profits and investment
have declined. On ^the more favor¬
have

downward

the

of imports of goods and services
there

tinues though we have

compete
in Africa and

men

when

and

war

excess

widely expected. Demands have developed in indifferent

We hear and read much about the
power of
international communism
to

large

fashion

pected to

Canada.

confronted with

ports

price

economic

coming increasingly important to the
future

business

highly competitive, and the recent
buoyancy in Europe seems to be subsiding. At the same
time, however, there are a number of encouraging in¬

Ltd.

the industry to
major oil com¬
panies which, with their staffs of economists and
busi¬
ness

Canadian

environment

NIELSON

President, Canadian Husky Oil
I will leave the state

Canada

capacity

Toronto, Canada

encouraging to the

PROCTOR

produfce at home. These permitted a
higher rate of growth in production

NICKS

President, Imperial Bank of Canada, Toronto,

increasing

JOHN

ag¬

On this

for

the close of the year.
latter trend continues,

tions. It should be

New emphasis must be

render

investments, the maintenance of the reasonable rate
rmirtality and continuing control of the cost of opera¬
a good year for
additipnal growth in
this strategic industry.

it has evolved in the United

must

by life insurance funds, and in 1961 the
housing industry will continue to derive its
support from the life companies.

institutional

During this new year we may expect a continuation
of the favorable trend in the cost of
coverage to policy¬
holders due mainly to an extension of favorable returns

quality of goods and services.

Thursday, January 26, 1961

financed

Canadian
main

gression.

and,

been

citizenry must

,7'.. ' 7;

capitalistic system

States

high of

!,.

should receive careful attention.

The

(2) A decline of the premium
the

arrested.

which

government

subservient

Business
management must meet the challenge of
foreign encroachment squarely through improved fiscal
policy, careful cost control and enlightened marketing
practices.' Ruinous practices undertaken in the name of
competition must be arrested.
The reduction of waste

-v

(1) A higher free market price for
gold now available to those Canadian
mines

omnipotent

Dome Mines Limited

Chairman,

toward

economic benefits to

penses

;

this

MICHEL

CLIFFORD

achieve

can

L. B.

Ramsey"

In consequence it is
very

permanent improvement
employment without stimulation of the manufactur¬
ing industry. That there is great need for more
in

pro¬

tection

very

obvious by

the statistics for

imports of

finished manufactured
ada

goods—$262 per capita for Can¬
against $28 for the United States and
$48 for Great

Britain.
than

Our

50%

primary textile industry now supplies less
of the domestic fabric market
against almost

«?mw

Volume

193

Number

6024

The

Commercial and Financial Chronicle

(465)
in

70%

1951 and employment
98,000 at that time.

from

view

than 700

the

fact

that

textile plants

down

roughly

24,000

most

the

country's

situated in the smaller

are

market for fabrics

more
com¬

that

fact

estimated

that

manufacturing industries,

100

employed

persons

can

have

flood of

all kinds

to 9

Last

year

figures

gave

the

growth

main lines of manufacture in

Coaticook

our

available

except

(one of the

This

Mill) show¬

M
m

our

fact that shipments of Canadian

of the

view

market

home

only 429,000 lbs.

were

1959

lbs.

In fairness to our government I must say they are now
securing statistics from the industry preparatory to dis¬
cussing with the Japanese new quotas for 1961, and we
are

that

sell

also

must

buy,

but

strongly

tiles

(more than 40%

from
to

all products we are equipped
we
are injuring the whole

Japan in 1959, and
this

make

of tex¬

of all the exports to this country

country, as if pur manufacturing is
depressed, the domestic market for agricultural products
diminishes, taxes decline, unemployment insurance re¬
serves are dangerously depleted, etc., etc.
As mentioned

our primary textile industry
position to supply 70% of the home

above, if

could again be in a

INev.—Estate Funding Corp. is engaging in a securi-

ties

LAS VEGAS,

East

business

offices

from

Bonanza

is, of

All

from

American

have been

can

removed

adverse effect

any

"vt

y
l
1 OFK

IN GW

mick, Inc., of Los Angeles.

JdOHQS

-«*-

due

and

Jan.

which

has

been

ical

organi¬

Bank

New

Morgan

pany;

turers

uniquely

serve

you

branches

viding the facts and services
need to

operate in

bid

3V2.

feel

indeed.

headquarters for

Canadian information.

pretty

small

will

continue

factor
too

number

employed—well
J. H. Ranahan

and

credit,

should

at least at its

There

aggravating

perhaps
of

Canadians

over

six

the
now

million

Trust

man

increasing

ensure

that

availability of funds and
spending remains

consumer

present high level.
indication

the

current

level

con¬

instalment

sumer

and

cannot

sources

of instalment

Continued

page

Prospectus
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designed to give investors a convenient means
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and

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of $5,000

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Amount

the sales charge is reduced

follows:

Sales Charge as a %
of Offering Price per Share

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September. This fact, coupled with
the
continuing
upward
trend
in

the

wages

economy.
But
has
been
made

little

record

the

tinental Illinois National Bank and

Bank

it
As

was

Brothers

Street office of Canada's First Bank.

it your

total,
one

100.5872

The sale

Halsey, Stuart & Co., Inc.; Barr
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of
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emphasis has been placed on
unemployment, and no doubt this

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be very close
Even if there is some

Much

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1

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U. S. businessmen in Canada for

Canada, is

overall

business will

24.

Bankers Trust

zation

American rice mills

Among other members
offering group are:

Street is the address

rice.

during which the

year

On reoffering the bonds were
priced to yield 1.70% to 3.80%.

Information

Bank,

made

f^'4-

$76,500,000

1962-91

held

Agency

the

RANAHAN

lVl^rKGLGQ

for the bonds

York

Canada

York various purpose serial bonds

«;

First

being made

year but I
am
more
hopeful
that the 1960 level may be exceeded

headed by The First Na¬

awarded

New

$76.5 Million
y-x

w
the

population
progress

standing with the three principal

barrier

possibly have

■

Canada's

Royal Rice Mills during

good

unnatural

Canadian

pessimism is threatening to curtail the undertaking of
relatively medium term obligations. The amount out¬

Headquarters

Two Wall

States, including the American

friends in the United

;.j

learn

Rice Growers Cooperative Association representing 40%
of
the Louisiana-Texas production of rice,
that this

our

for

■Jir.V'Vij

will

are

rice

grown

credit, reflecting as it does the think¬
ing of hundreds of thousands of Canadian families, that

■

this

good

Canada.

representations which have been made both by

If'tV:'

r-jW

that

such it would still
represent a

tional City Bank of New York and
The Chase Manhattan Bank was

Your

will

same

they

the

shrinkage

It is hoped that during the coming year the continuous

A group

•••1

mills

American

to that of 1960.

purchase
is

that

and

Growers

level

Canadian

to
if

important

merchandising and distribution

course,

associated with Gordon C. McCor-

110

rice

the

cannot foresee
any marked change in the immediate
prospects for Canadian business. -There
may be certain
industries subject to wider
fluctuations, up or down
but I cannot
help but feel encouraged that 1961 wili

less of a problem to Canada, which
can draw its supplies from
elsewhere, than to the United
States which is simply losing a not inconsiderable vol¬
ume
of export sales since Canada, not being a ricegrowing country, must import all its requirements.

retary-Treasurer.

Officers

Avenue.

afford

grown
on

satisfactory

competi¬
to Canada

Rice

purchase

increase

stated,

with

This particular barrier to trade between the two coun¬

Gordon C.

dent;

yV'l

rice

McCormick, Presi¬
McCormick,
VicePresident, and E. M. Carroll, Secare

Form Estate Funding

price basis as
to other countries. This undoubtedly
Eric Reford
would
lead
to
a
very
substantial
increase in the importation of "cargo rice" from
the
United States and far outweigh the small export of

country),

the

economy

has

only

can

available

tries

contend that in allowing such a high percentage
i

American

from

uneco¬

it.

prevailing world mar¬
It is obvious, therefore,

the

American

milled

mills

selling substantial quantities of wheat to Japan,
other primary products, and we are well

are

well

aware

•

Rico.

imports

entirely

President, Industrial Acceptance Corporation Limited

rice
it

Canadian mill

vulnerable

Association

hopeful the figure will be materially reduced.

very

We
as

to t

■

that if

other

prices.

that

or,

than half the market.

from

ket

in other words, we would be allowed 70%
of the domestic market. Imagine our consternation when
we learned
that the quota was fixed at 500,000 lbs. or
000

would

the

countries

other

Puerto

why

dealt

probable

of rice at the

mills

hoped that Japanese quota would be set at less than 200,'WA

;

which

tion

all

and

means

from

appear

the

purchased American "cargo" rice at
the higher American domestic price,

Cuba

"cargo"

grown

terms

same

therefore not pur¬

can

American

the

reasons

m2?e ProsPects of the Mount

1961

milling industry is practically ex¬
purchasing "cargo" rice in the United States
since Canada is not eligible, under the Payment-in-Kind
chase

pounds

re-export

oyer a period and the longer Canadian mills

continues

rice

the

should

excluded

the

this field, among other textile items.

■

'is'i

ir^'k

lished

ing these shipments had grown from 41,000 lbs. in 1954
to 559,000 lbs. in 1959, and mentioning that our govern¬
ment was working with the Japanese to fix a quota in

'I ,'i

REFORD

Export Certificate program and

permitted,

100

per

expeditiously and effec¬
tively is that channels of trade
frequently become estab¬

cluded from

of Japanese

shipments to this country of braided elastics
'

One

President, Mount Royal Rice Mills Limited
Canadian

were

proposition.

without

The

if it

even

problem

ERIC

be reduced to normal proportions and general prosperity
would return.
'
.

W.3

protected by a duty of $2.50
entry of cleaned rice, making

nomic

come

is for

see

;

apparel from Japan and Hong-Kong) and other badly hit
industries, such as canvas and rubber footwear, radios,
electrical supplies, etc., unemployment would, I believe,

•111

industrial

sizable segment of the popu¬

seriously affected by

most

anxious

solution

(the largest employer of labor in the country and

now

to our shores, the only
policy of reasonable encour¬
agement for manufacturing industry.

are

lation would be taken off the- unemployment rolls.
If
similar action were taken to protect" the clothing indus¬

try,

are

the

Canada,

country with only 11%
of the population in agriculture and, in consequence, if
we
are
to grow and provide good jobs for our school
and college graduates, and for the new Canadians we

24,000 people put back to work and, in view of the

and

Canada

since 1951.
\fs?

we would be quite happy, and surely
industry to imports is a very generous figure,
particularly in view of our present huge trade deficit.

munities, where there is very little other industry, con-*
ditions in these places have been deteriorating
steadily
If, through adequate protection, employment
in our industry would be brought back to the 1951 figure

who

30% of

Newbury St., Boston

16, Mass.

free prospectus and additional
about UBS FUND of CANADA

information

Name,

£ Address_
Lone
Zone

state
State.

JA26-CF70
,jaio-c,r

-r

!■

■

(466)

The Commercial Hind Financial Chronicle

Thursday, January 26, 1961

•1'

Continued from page 33
V"

purchase credit—sales finance companies, retail dealers
department stores—was approximately $1,380,000,000

and

Sept. 30, lb60, for an increase of 7Vk% over tne same

date last year.
1/1

Optimism,

too,

reflected

increased

in the

use

purchase credit extended by sales finance companies to
.v

Canadian

t;
ih

industry for the acquisition of capital equip¬
ment.
Such purchase credit outstanding at
Sept. 30,
1960, stood at $397 million against $331 million for the
same date last year.
These figures, reflecting the purcnase
of additional capital equipment, indicate confi¬
dence from a' wide segment of business people.
Also,

■>

because

J1/

■'

such

revenue producing, it can
that it will contribute to the overall volume of

said

equipment

normal load growth and from the
of the province's

anticipated expansion
mining and pulp and paper industries.

part of this program, planning is
to add additional
generating

already underway
capacity to the Beechwood
Hydro and St. John thermal operations during the next
few

any statement such as this, one must invariably
proceed at two levels—the first, in an attempt to relate
what changes have occurred and

business.

too,

sound,

anticipate that the out¬
can be further safely

standing credit in both these fields
!

expanded.
Housing

?/■•

ment
would

ming

clear

that

■

has

bucked

govern¬

activity in this field and

expect

improvement

over

1960.

national

trend

largely due to the
foreign demand.

and

exciting but the least

rew

arding—we must

strong

the most
estimate

now

how these numerous variables will interact
during
For
Canada generally, it does not

that

1961.
there

exists

either

from

much

consumers

potential

increased

demand

business; government spending can act as
stabilizing force, but will unlikely generate any sig¬

nificant

expansion. Export markets also may be some¬
what depressed due to lagging rates of economic growth
in both the United States and Western
Europe. In sum¬
mary

trends

influence.

strong

very

also

may

the beginnings this year of a re¬

see

placement market for television predicted for

1961

then, it
will

omy

be expected that the Canadian econ¬
subjected to a continuation of current

may

during 1961, which will have

mild recessionary

It will be

impossible for the New Brunswick economy
to completely avoid the full impact of such national and

optimism
I
would support the view that retail sales at the worst
will not be off 1960 volume by very much and could
well exceed this year's figures by 5%.

international trends and, accordingly, it will be difficult
to maintain the current rate of
growth.

1962.

t:
i»r

in,
•)(!

;
manufacturers

Automobile

the sales

over

outlook

have

expressed

this important industry and

not

felt

that

LOUIS

HON.

„v

Premier

New

slide

any

severity of the

1957-58

toward

the

industrial

further

utilization

M:
1

reflect recent

expansion in the Canadian
The New Brunswick economy

At the second, or predictive level—which is

and

HI:

should

1961

this

favorably influences the sale of household durable goods,

)

stimulate

during

economy

little

was

nature of both domestic

influence on the overall economy.
Particularly, increased activity in housing construction

;

to ;

there

appear

the I960 levels.
W/die some of the demand may move toward multiple
dwellings rather than individual housing units, never¬
theless any increased activity in the construction trade

S-

■

starts

action

why; and the second,
predict what is going to happen. In sum¬
the analysis at the first level, it is now quite

effort to

years.

are

However, it is
will have the

economy

recession

and

extensive

diversification

and

efforts

planned to take up the slack.
HON.

DUFF

ROBLIN

spread

not the

was

year

case.

facturing.

accounting of the statistical re¬
sults of the year's developments, the
trends of economic activity in the
fourth quarter pointed to only nom¬
inal expansion
and relatively high
rates of unemployment in the Cana¬
dian
economy.
Subjected to both

\ft

national

international

and

nomic

i».

expansion

1959, and there
ment

Brunswick

year.

their

The

•>;t

same

was

setting,
remarkably well.

30%

some

greater than

year.

situation has prevailed in the

the

index

its

expansion

The

■

industrial

employment

highest point in nearly four
factors

rose

August to

years.

which' supported this
both domestic and

level

economic

were

foreign; clearly, the
expansion of export markets played a dominant role.
This, combined with increased spending by
consumers,
business and governments in the
province, was sufficient
to promote a
significant degree of economic growth. In
addition, the high levels of investment spending in re¬

it
rfi

cent years are

now

ing

sources

additional

most

becoming productive and are creat¬
of employment and income.

this investment has
promoted the type
diversification necessary for balanced eco¬
nomic growth. In the southwest
portion of the
cases

of industrial

—an

province

area

traditionally dependent upon primary fishing
and forestry
operations—the establishment of
secondary
manufacturing plants has contributed to greater utiliza¬

tion of the area's resources.
These trends towards greater

processing

and

industrial

diversification

have become
pronounced in the Saint John area.
Here, during
the past year, the
Irving Oil refinery commenced opera¬
tions with a capacity of

most

J
»*

40,000 barrels

Kimberly-Clark
Kleenex
*k

tissue.

interests
This

began

the

per

day, and the

manufacture

highly integrated industrial

com¬

plex will continue to expand in 1961 with the addition
of the Union Carbide chemical
operation, the expansion

-V

of the dry dock and

pletion of

shipbuilding facilities

and the

com¬

high pressure, high temperature steam
gen¬
year. The first 50,000 KW unit
of this 200,000 KW
plant is scheduled to come "on-line"
in July, 1961.
a

erating plant during the

■"M* *
■

•<.-

This latter development is
part of the expansion pro-

fra.™designed to provide generating
facilities to
meet the

demands for

the

this

land

vast

nation.

With

velopment

and transmission
power resulting from

and

1960

over

industry.

Hon. Duff Roblin

rightly

so,

the

influence

province

broadening

eco¬

has

been

Under

encouraged.

growing population and increased
employment, commercial activity in the province is ex¬
a

pected to double within the next 20 years. By
expect a 46% population increase to 1,300,000.

1980 we
In 1960
the province at rather
better than one each week, as they did also in 1959.
Over the previous 10 years, 538 new industries had been
established in the province.
At the present time, more
than 1,700 firms employ some 45,000 people.
During the ,'fifties manufacturing production increased
by 61%. Salaries and wages paid in 1960 were estimated
at the record figure of $160,000,000, some $3 million up
on
the 1959 figure which in itself represented an 80%
increase for the decade. Manitoba's per capita personal
firms

income

located

now

for 1959

throughout

stands

$1,518,

of $1,488 which

Personal
tion with

income
some

was

well

area.

increasing

the

figure

above that for all Canada.

distributed

studies

economic

ies

across

the

present at press.
economic activity at

With

International Nickel

high level, 1960 capital:
$629,800,000.
Utilities
(up $2 million), followed^

institutional services and government departments
$149,700,000 (up $15 million), and the primary and
$105,500,000 (up $3 million).
accounted for $85,600,000 and manufacturing
Of the latter figure, the food and bev¬

Housing

for $58,800,000.

industry recorded $11,100,000, showing a $2,300,000
!
7

erage

increase.

billion

increase

bank

life

clearings in

Winnipeg

all-time high of $20,590,-

;;,"

sales

insurance

1960

totaled

$202,-

million), retail sales $822,000,000 (up $11 million), and personal income jumped
$45 million to a record $1,365,000,000.
(up

Tagged

than $11

prairie province Manitoba, has, however, an
geographical characteristics providing a

well-balanced array of terrestrial features. Three-fifths
of the province lie within the highly-mineralized preshield.

cambrian

Forest

Manitoba's

miles.

support
world.

one

area

lakes

are

totals

some

famous

for

120,000
their

square

fish

and

freshwater fisheries in
major industry, ranking

largest

of the

Tourism, too, is

the
sev¬

enth in relation to the gross dollar production of manu¬
facturing groups in the province. More than 1.250,000
holiday visitors left a record estimated $36,350,000 with
the province.
In

Manitoba

"sixties"

with

Our industrial

look

forward

confidence.

every

the

activity is expected to

future

have

the

to.

reason

than double

itself within the next 20 years and

the anticipated gross
manufacturing production is predicted for
the neighborhood of $1,500,000,000.
We expect a very
substantial growth in industries based on agricultural
value

and

our

extractive

ited potential

resources

and feel there is almost unlim¬

existing in the development and expansion

basic industries.

our

SAMPSON

President, Chateau-Gai Wines, Ltd.

swinging into production their
mining-smelting-refining-hydro complex
that will give Manitoba the largest integrated nickel
mining operations situated anywhere in the world. At
Portage la Prairie the $5,000,000 170-employee Campbell
are

$175,000,000

Although the trend of Canadian business activity as a1
whole did not resume its steep rise during 1960, as had
been hoped, it did hold at a healthy level
throughout
the year.
A similar pattern seems
to

generally

expected

for

This development has forced

cipline
should

1961.
a

dis¬

Canadian industry which
produce substantial benefits
on

Soup plant commenced production. Of major importance
to the province's forest products
industry will be the

in the future,

new

will

$3,000,000 poplar-utilizing particle-board plant be¬
ing located in southeast Manitoba by Columbia Forest
Products.
set

Manitoba's

first

basic

chemical

industry

was

in July

with the opening of Border Chemical's new
multi-million dollar sulphuric acid complex with the
related chemical plants being completed this year. Other

major

projects

include Tallcrete's

the

six-

concrete

and

seven-figure

categories

block

operations, Stonewall
Hosiery, Winkler Clothing, Dressier Headwear of Morden, Irish Potato Chips of Winkler, Catelli Food Prod¬
ucts' plant at Transcona, and those by firms in
Winnipeg
such as the Inter-Collegiate Press.
By yearend 1960
over 40 major plant extensions had been slated as well
by already established Manitoban firms.
A

totaled

Manitoba

Sparking industrial activity in Manitoba are a number
large projects and large firms newly establishing in
-

Western/

popula¬

$2,000, and less than 1% earning

the province.

South

development stud-

are

than $15,000 per annum.
of

and

Central

South

Manitoba have been made and these

two-thirds of the taxpayers earning be¬

tween $5,000 and

■■

pally through the construction of buildings made avail¬
able for leasing.
iii
The
provincial government is fully aware of the
importance of regional development and emphasis is
directed along these lines.
Integrated and coordinating

Ca¬

Since World War II industrial decentralization

throughout

major portion of which are
outside of the Metropolitan

The Corporations have assisted in locating
several of the larger firms across the province, princi¬

700,000

nomic base is the keynote of Manitoba's manufacturing

the

support of MDF loans, a
ticketed for loans to projects
Winnipeg

assortment

wide front and

they raise funds locally and receive

facilities,

and

credit

Provincial

nadians in all walks of life.

Diversity

over-?3

slightly more
of industrial de¬
concern,

;

provision

Working in conjunction with the government
the

brought the year's figure to
000,000.\

immediate

steady growth in population—now topping the 450,000- '
saw Winnipeg becoming the second Cana-1
dian city to achieve metropolitan
government. MetroCouncil of Greater Winnipeg, with
allocated servicesand functions, has jurisdiction within the 240-squaremile metropolitan area- and includes planning control"
over another 420 square miles representing a surround¬
ing "green belt" zoning of a 5-mile depth. In 1960, the-

there

;

$9,750,000.
■:■ ;..' ■' ■;v■.&
Supporting rural industrialization, and the extension ,
of secondary industries in the area, are some 15 "estab- /
lished-to-date" i Community" Development Corporations.;

best the needs

expansion,

;

mark—1960

when

serve

over 45% of all bank clearings for the three
provinces," Winnipeg is Canada's major midwestern financial and commercial center. Continuing its

the

$30,000,000

Maniloans
totaling in the region of $5,000,000, leading to capital
investment in the province of twice this amount,, .Tjie
Manitoba Agricultural Credit Corporation by the end of
the 1960 year had assisted 965 farmers to the tune of

Handling

manu¬

twice

over

some

time

evidenced

new

the

leisureliness in pace

this national

manufacturing
economy;
the value of plant shipments
generally was some 9% higher than 1959, with pulp and
paper production nearly 5% greater than the
previous
year. These levels of production, supported
by an esti¬
mated
6%
increase in
provincial consumer demand,
produced a substantial demand for labor, and as a result
sector

industry is

extension

development by two funds started in 1959. The
toba Development Fund already has authorized

"prairie

agriculture, 1960 has

and desirable to
Hon. L. J. Robichaud

fared

during the previous

province.

people are
querying economic growth rates vital

The volume of fish landings was running, during
the fourth quarter, of the
year, some 7% higher than
1959; coal production had risen by over 4%, and by

levels achieved

the most

the

figure.

Elsewhere

year.

mid-year farm cash income

1959

appears

Apart from the effects of a lagging construction indus¬
try, particularly residential housing, most sectors of the
economy indicated substantial gains over 1959. At the
primary level of production, all areas of activity ex¬
perienced substantial increases in output during the

.'b

increase

influ¬

economy

one

us
a
manufacturing produc¬
figure expanding to $772,000,000, a Federal computation showing

during
signs that there

during the coming

New

growth

given

will not be any significant improve¬
the

economic

tion

achieved

are

1960 has been

year

the

Now well

value

gross

ences, the Canadian economy simply
failed to maintain the rates of eco¬

the

Manitoba's major

Even though there has not been a
full

'!»{"

Manitoba

important

construction industries with

growing industrial economy
for their province.
No longer, on a "prairie economy,"

of unprecedented
economic expansion. That, however,
over

For

townsite

new

with

back

ushered in by

the

encouraged with capital investment and

been

Manitobans have every reason to be proud of the very
substantial, progress made towards a balanced and wide¬

was

work

5,000-population by 1970—has begun.
The first reactor, an organic-cooled
natural-uraniumfueled, heavy-water-moderated type, is expected to be
running by 1964.
A great strengthening factor in the province s econ- .
omy has been the provision of credit by the Manitoba ;
Government.
Manufacturers, as well as farmers, have ;
for

head the list with $174,300,000

great wave of opti¬
mism,
indicated by such descriptive and emotional
phrases as the "soaring sixties" and the "sizzling sixties."
Now at the end of the first year of the decade it would,
indeed, be nice to be able to look
I960

plant before 1980, is the establishment
nuclear research plant in Manitoba s

Construction

Whiteshell.

investment

ROBICHAUD

Brunswick, Canada

Chalk River

scheduled

resource

Premier of Manitoba
The year

000

of Canada's second

major development of 1960, and which is expected
to be comparable in size to the
2,400-employee $165,000,-

when, as seems almost
inevitable, the economy as a whole
its rapid upward climb.
major factor in this strongly
optimistic view of the long-term is
resume

The

the

development

market. In the last

has

not

only grown

the

impressively, it

has also become much

fied; thus providing

domestic

10 years or so

diversi¬

many

secondary

opportunities for Canadian industry.
This, of course, enhances the oppor¬
tunities to

realize the advantages

large scale production. For this, industry
attractions Canada holds for
lands

who

country.

have

Some

decided

10%

of the

A. G. Sampson

can

thank the

many people from

make

their

homes

Canadian population

other

this

now

composed of postwar immigrants. These
people have not

Volume

193

Number

6024

The Commercial

and Financial

Chronicle

(467)
only retained much of their old
have

also

exerted

consumer

wines especially, it strengthens the
competitive

patterns, they

considerable influence

the

vis-a-vis

con¬

suming habits of their native compatriots. The result has
been both growth and diversity on the Canadian market.
influence of these

The

ticularly

pronounced

with

Wine

meals,

life,

European

volume

the

and
table

industry that this

the

Canadian

instance, is
is

evident

wines

sold

from

the

retained

by the new arrivals but also
adopted by the native Canadians,
.■/.
The

opportunities

presented

not

that

KARL E.

tal

than

others

because

character

had

these

the market.

expand

changes

rapidly

in' the

and

size

indicated

above, the wine
industry has had to expand rapidly to meet the require¬
ments of a swiftly developing market for fine Canadian
wines.
Our

)-'■

been

years

program

has

market

increased

why

reasons

through

1961

company,

shall

in spite

such

able

rate

population

costs.

facilities

new

support

the

price

For

our

the

and

number of
and
'

other

the wine

North

—

cars

are

finding them

own

larger
for

particularly Tor

Canada's
I

most

petition both in

worrisome

products

our

find

and

asset. We put it

that,

premium

flowing into Canada.

The

basic

efficient

and

meeting

to provide

so as

stitute product.
Government aid to
dairy farmers is undoubtedly here to
stay and floor prices as set by government may be very
necessary
but at least they should be realistic and

ex¬

Canadian consumers should be given a break. Undoubt¬
edly this butter situation is the key to the entire dairy
surplus problem.
1
■
The

com¬

has

our

and

has

facing

great

Sales

volumes

expect

tendency to

cry

new

competitive

pressures

increase

1961

suggested that the cost of renewing a consumer pay¬
quart, might not exceed what govern¬

ment of say 20 a

jobs by regaining markets

ment

has been too
of

cream

declined

greatly since the war years.
At
consumer milk prices were subsidized and the
consumption of milk was greatly stimulated. Mr. Pierre
Cote, President of the National Dairy Council cf Canada

unem¬

home

capita consumption of fluid milk and

per

likewise

that time

is now expending on other forms of assistance to
dairy farmers and might be vastly more effective in re¬
lieving rather than encouraging surpluses.

increasing output.

There

competition

our

to be

Because the ice cream industry requires milk in large
quantity when milk production is at its peak, it serves
an
important function as a balance wheel for the dairy
industry. Ice cream comprises about 20% of the dollar

productivity.
not

are

amongst the pessimists.

1961

new

good

in alarm,

models

are

excellent.

year.

Continued

page

Betts, Borland to
Admit Gen. Arnold

GOLD AND THE DOLLAR PROBLEM

CHICAGO, 111.—Arthur M. Betts,
senior
&

partner

been

that

Betts,

firm,' as a
Lieut. Gen.
who is ap¬

partner, of
H. Arnold,
proaching
retirement
U. S. Army.
Born in

64 Wall

TORONTO

Teletype: NY 1-3708

QUEBEC

SHERBROOKE

has

military

graduation

had'

25 ADELAIDE W.

Mining

Follow¬
Point

career.

from

Exchange

TORONTO, CANADA

Companies

distin¬

Toronto Stock

Members The

Gold

the

West

Military Academy in 1924, he rose
in
rank
to
lieutenant
general.
finishes

Canadian Affiliate: Greenshields & Co Inc—Business established 1910

MONTREAL

from

Since 1923

Street, New York 5

Telephone: WHitehall 3-9525

ing

& COMPANY LTD.

report on

24 Canadian

Dyersburg, Tenn., Gen¬

Arnold

guished

Greenshields & Co (N.Y.) Inc

and
our

their

William

eral

report

the New York

general

investors and dealers

Write for

has

Exchange for the approval

of admittance

Inquiries welcomed from institutional

Borland

application

forwarded

Stock

Canadian Securities

Co., Ill South La Salle Street,'

stated

OTTAWA

WINNIPEG

LONDON

his

Army

career

Commanding General of the Fifth'
Army,with
headquarters * in

Chicago and Fort Sheridan. ^
Betts, Borland & Co. is the
oldest
Chicago
brokerage
firm
holding
since
the
continuously
1890's, memberships in the New
York
and
Chicago
stock
ex¬
changes.

ILVER

PRECIOUS METAL IN SHORT SUPPLY
The
70

demand

million

Silver

for

ounces

per

has

year

outrun

supply

for the past four years.

than

1959

World production was short of demand by 100 million ounces.

Speed System of
Underwriters

Distributors

Government of Canada Bonds
Provincial and

Dealers

Treasury Bills

LANGIS SILVER & COBALT

Basic Math.

Mining Company Limited

"The

Trachtenberg Speed System
Mathematics," developed
by Professor Jacow Trachtenberg,

of Basic

Municipal Debentures

Corporate Bonds and Shares
Prime Acceptance and Commercial Paper

presented

lated

and

volume

profitable

Silver

producer

the

Cobalt-Gowganda district of Ontario.

trans¬

adapted by Ann Cutler

Rudolph

scribes

McShane.

de¬

remarkable new method'

Production at the LANGIS mine has increased
in

the

four

last

years.

Proven

and

over

10 times

ore

reserves

broken

for

high-speed multiplication, di¬
vision, addition, subtraction, and

EQUITABLE SECURITIES CANADA LIMITED
Member of The Investment Dealers' Association of Canada

root

square

metical
ferent

and

are

employs arith¬
radically dif¬

from

the

conventional

Member

MONTREAL

U. S.
Direct

•

Subsidiary:

private wire with

shortens

Toronto, Canada

HAMILTON

shorthand

price

offers

•

cal

KITCHENER

Equisec Canada Inc.

Goldman, Sachs &

Co.,

New

York

the

Silver

attractive

makes
for

the

operating
rise in the
the

Langis

Investment

The shares of Langis Silver & Cobalt

time for mathemati¬

its

rapid

New York 22,

trade

80%, and
checking

method, gives 99% accuracy. The
book is published by Doubleday
&
Company, 575 Fifth Avenue,
$4.95.

good

in han¬

computations

because

Portfolio.

greater

accuracy

for

dling numbers which, it is claimed,

Office

Head

sort

mathematics, it
speed, ease and

of The Toronto Stock Exchange

60 Yonge Street,

making

of the mine.

profit the probability of

an ability
to count to 11 to master the entire

system.

the highest ever in the history

Already

procedures

methods, and requiring

EQUITABLE BROKERS LIMITED

in-;

the gap between the retaiF
price' of butter and that of itis sub--

unemployment.

solution

this will be

E. G. Silverwood

export markets and against imports

our

good deal lower'

convinced

narrow

recent

Ford of Canada

problem

evitable unless something is done to

mainly from failure to meet

We in Ford of Canada
an

and

ployment problem is for Canadian industry to become

this country.

"Canadian" is

conceivably drop

Canadian-manufactured vehicles this

believe this results

major efforts to

distinctly Canadian character in products made in

name

capita consumption, from a highpounds during the war, to less;
than 17 pounds this* year.
It could'
of 32

year.

industry although it is becoming characteristic

wines, the

have

cars

satisfactory.

proudly

compact

per

expect sales to increase again in 1961.

American-type

prices

Butter,
utilizing 47 % of Canada's milk sup-J
ply, has been declining steadily in^

Value of Canadian exports have
record levels for the postwar period.

will be sold in Canada by the end of 1960

instead

high

certain products that are entirely out
of line with world markets.

New capi¬

1961.

for most fields of Canadian enterprise—is the acceptance
a

many people are taking a second look atAmerican compacts compared with
imports and

abroad,

important development

continued

Apparently,
North

another record volume year.
One

has

months tended to stem the growth of imported car sales;

line

expectations

our

1960

The total per capita
consumption of
dairy products in Canada is declin¬
ing, surpluses continue to be a head¬
ache and yet the Canadian consumer
is expected
to pay

1960, but personal income was still higher than ever
before, and should increase again this year. A record

of the main

one

hold

of increased

Chateau-Gai's

Canadian

running

pects to sell

instance, completed its $700,000
during 1960. This was about two
ahead of the original schedule. The fact that our

expansion

time unpredictable.

The rate of increase in personal income slowed down in

"-V

company, for

own

Europe

very high
level, only slightly below previous records, and should

are

have

show increases in

industries

investment

Ltd.

dairy industry will be influenced to'
a great extent
by government policy at both the Federal
and Provincial
level, and what this will be is at this

SCOTT

economy.

SILVERWOOD

The outlook for the

the

Too much pessimism is
being expressed about the pres¬
ent and future state of the Canadian

accurately geared to anticipated
market development and market requirements.
*
Some

President, Ford Motor Company of Canada, Limited

being

portant developments by Canadian industry as a whole.
Expansion of production facilities has been impressive
and also, because of the absence of the "boom" psy¬
chology of a decade ago; well and carefully planned'.*'
Productive facilities

President, Silverwood Dairies,

growing Canadian
market and the challenge presented by the careful
shop¬
ping being done in it have combined to produce im¬
.

counterparts,
not
only in competition
market, but also at exhibitions in

Canadian

premium Canadian
price than many of
and
these
wines have

where Chateau-Gai products have been awarded medals.

only been
it

position

The

market

themselves

Canadian wine

pattern has

consumer

increase

products.

higher

imported

proven

wine industry.
integral part of

by the

imported

command

their

Canadians has been par¬

new

for

wines

N. Y., and sells for

Full

information

obtained from

the

the Toronto Stock Exchange

LANGIS

SILVER

AND

COBALT

can

Principals: Brewis & White Limited 145 Yonge

Street, Toronto 1, Ontario.

trtwfl^irrpvw*^ ta if

I -Jf

.«'

(468)

The Commercial and Financial Chronicle

Thursday, January 26, 1961

>P''

Continued from page 35

competition

labor

facilities

results

i*
.J"

severe

low-cost

the weather

■

tinued

sales volume of Silverwood

year

Dairies, Limited. In Ontario,
this summer was not nearly as favorable as
and consequently our ice cream sales are

ago

down slightly.
However,
that is gradually gaining

ice cream is

lower

possible to achieve in

those

with

countries

where

manufacturing
prices than it is

consumer

many areas

ment in

•

f»r

courage

for

," &C
I ;.

the

ii1'

hfr
<,i.'

unreason¬

! '

year

new

pay¬

Hr
H'

fit
i \t

■

<Fl|<

was

year

which

fell

well

below

general business activity with the

for

fallen

has

1960

National

Gross

result-that

1960

machinery and equipment. These factors, together with
a much
lower rate of inventory ac¬
cumulation, resulted in a lower level

'it;

i,'

retrospect

Product

did

estimated

which to

•tyi
'?>■
')y

mand

within the

factors

there
these

'III

h'r

for the

significant

any

improvement in

substantial

increase

goods

can

down in 1960,
looked for in this

were

be
-:

up
■lY

come into play which are not at
present discernible, the electrical manufacturing indus¬
try can look for an overall reduction of sales in 1961.

must

nr
>y

Ill

continue

There
1960

were

that

invest

heartening indications in the latter part of

the

Federal
Government
is
earnestly en¬
deavoring to stimulate the growth of secondary indus¬
try, and by so doing to increase the availability of jobs
in this important sector of the economy. While the re¬

Si,

■

progressive

and responsible companies
heavily in product innovation
and manufacturing improvements if they are to be pre¬
pared to meet the demands of the economy in Jthe future.

u
iv

this,

Despite

Iff

)»?

j*J'.

sults of many

H
{•

to be felt, they cannot fail to have a long-term
positive effect on the level of economic activity.
Today's business conditions, both at home and in the

of the

measures

thus far announced have

yet

international

sphere, constitute an unprecedented chal¬
lenge to Canadian management, labor and government.

Farsighted

i:
*

to
w
viv

#>[

Canada

and

is to

effective

provide

saw

the

think

with

and

particularly, the last quarter of
business activity in the Rubber

whole

when

compared

10%

decline

the

then,

will

followed

this

about

upward

support

1960

level.

personal

the

The

income

opportunities.
These
provisions under the National

of industries.

pacity
with

result

a
full-year
activity at a

pace

that
f

and
way

seems

for

indefinite

than

vigorous export

is
a
non-diversified,
with assets of approxi¬
mately $100 million.
1961 is likely to approximate or
moderately exceed the income level of 1960—with un¬
derlying earnings of the company's major holdings
somewhat improved.
In 1960, the company received in
dividends only some 40% of the earnings attributable to
its holdings.
':,
" •
■;
;. ' v! -

these

prices"

conditions,

continue

squeeze.

anticipated for MasseyFerguson Limited,, a major farm machinery producer
that has been making notable progress in recent years,
particularly in overseas markets.
Canadian Breweries

earnings
downward, ex¬

cept to the extent that costs

lowered,, either

by new
ficiencies in operations.

can

tunities

for

certain:

the

sale

Canadian

goods.

One

thing

result of Ottawa's Export Trade Promotion

Conference, Canadian business is going after exports In
a

much

bigger

Canada

has

cross-section

solid

foundation

for

economic

growth,
but efforts which were considered
adequate in the pa^t
will not suffice
today:
To achieve expansion in job
opportunities an increased effort on the economic front
be

made

by management and labor

well

and

ef¬

•

Likewise, under these highly: competitive conditions
which, for the most part prevail throughout the
important
manufacturing nations of the. world, we can expect con-

,»

one

of the largest food chain operations

Argus' holdings represent

way.
a

Limited,

Canada, has recently improved its earnings position
considerably and anticipates another good year in 1961.
The outlook for the company's other investments is also
considered satisfactory.

provide

Canadian

growth

factor

interest in

industry.
at

least

Its

important

portfolio should

equal

and,

opinion, somewhat higher than the promising long-term
prospects for the country as a whole.'
PHILIP

TORNO

governments.

President, Canadian Wine Institute

Scotia

hopes

benefit

from

the

special

measures

referred

with

(the f'rst six to nine month periods), agricul¬
a
slight advance in farm cash income; the

ture

1959

above.

comparison

1960

ures

1960

Grape
was

excess

the

notable

also

fruitland

reflected

Canada's
of

forecast

public

and

southern

shores

which

Wineries,

are

situated

the
in

majority
the

heart

peninsula, welcomed the large
surplus of grapes in a bid to re¬
plenish inventories of premium and

are

the

quality dessert wines.
Growers

"industrial

foregoing, a cautious optimism can
be expressed in
forecasting continuing progress into 1961.
The one serious exception is
likely to be the coal mining
industry which is faced with the probable closure of
some
mines in Cape Breton.
The overall employment
picture will obviously be affected by this, as well as by;
the seasonality of certain
types of work.
-The

the

of the

These downward movements
reduction

along

of Lake Ontario.

evident.

employment index for mining and construction

particularly.

Canada's sunny Niagara
record, with tonnage fig¬

The grape growing area, stretch¬
ing from Hamilton to Niagara Falls,
comprises
22,000
acres
of
fertile

lobsters); lumber and coal production
the selling value of factorv

was

largest

of 52,000.

advances;

growth

Harvest" in

Estimated crop value was placed at $5 million.

showed

bountiful
grapes

hours

private*

investment

—

are

Philip Tcrno

The

tender

Canadian

growers

pleased

of
fitting

crop

sizable financial

On the basis of the

Leland E. Spencer

are

composite" employment index for September, 1960, com¬
pared to the same month in 1959 (the similar figures for
Canada also show a 2% reduction).

improved methods

1961

Stores

are

corporate

trend

profits in

Limited, the world's largest brewing concern, is also an¬
ticipating a year of higher sales and earnings. Dominion

affected most

Under

Limited

Increased

business activity in the United States, theKingdom and other overseas economies. On the
hand, rising income and consumption levels in
overseas countries, together with the
widespread reduc¬
tions in import restrictions, have opened up new oppor¬

The

"rising

costs-lower

year.

Corporation

closed-end investment company,

Nevertheless, unemployment continues to be a prob¬
lem in the provincial economy, as in the rest of Canada.

consequent pressure on profits,
which
are
caught
in
the

of Canada's industries with indigenous
as pulp and paper, most of the non-

demand

Argus

economy

with

intense competitiveness will continue
improvement .in, profit.;margins.

other

much

period,

a continuing problem in a number
will show some closing of these ca¬

metals, iron ore, natural gas, petroleum and
our
agricultural products, will be in more in¬
in foreign markets.
1961, however, is
likely to be a prelude to such a period of activity rather
sistent

production.
supply and intensified

basis,

highly compet¬
likely to remain

some

shipments of manufactured products was up 4% (third
quarter comparison); and in most other sectors of the

Business continues

projects

United

showed

in the last half of the

capital

some

merchandise

to lower prices for

social

and

near-term

of the fishing catch showed a slight increase
(although the value of the catch was down slightlv, due

return

ferrous

trade has been brought about.
Regarding the direction of trade, there has been a lessen¬
ing concentration of trade with the United States, and a
growing relative importance in trade with the United
Kingdom,_West Germany and Japan. Prospects in for¬
eign markets are now somewhat clouded by an easing

tempo

mark

are

1961

advantages, such

substantial reduction in Canada's

construction

but

gaps,
little

Ultimately,

competi¬
throughout the trading world have had a retarding
effect upon the absorption of new productive resources.
Nevertheless, exports have been the brightest spot in the
I960 economy.
While exports have increased bv about
6% imports have remained at approximately the 1959
on

residential

Over-capacities

in¬

tion

deficit

will

offsetting indicated declines in business spending.

increase

ample

Edward P. Taylor

interfere with the financing of capital pro¬
generally in the country. These in aggregate are
likely to approximate the 1960 level—with some increase

loans
to
small
business for improvements and
additions to equipment and premises; and taxation pro¬
visions (recently announced) which will encourage new
of

com¬

force

grams

bank

and

also

labor

are

our

seriously

Housing Act
directed toward residential development; improved avail¬
ability of mortgage funds; new supports for urban re¬
development; additional impetus given to the "Winter
Works Program"; legislation providing for guaranteed

Conditions

when

Federal Government deficit, but not on the scale of
1958-59. Federal debt management, however, should not

should

measures

time

Nineteen-hundred-and-sixty-one
to

sus¬

market,

consumer

employment

level, and

kets.

are

new

while

is expanding rapidly and when Canadian businesses are
facing severe competition in domestic and foreign mar¬

upturn in housing fore¬

building activity. Indi¬
spending by the business commu¬

movement

continuing

However, they

ing at

volume
wm

level-out with

business

basis

for

preceding

year.

itive

that capital

adjustments,

trade.
R. L. Stanfield

firmer trend in house

are

of Canadian Gross Na¬

current

Peninsula

upturn.

1961

stronger

;';*-

recent

some

Product.

The

1960—taken

•>;

27%

ticular, Nova

This mild recession is expected
over in the first months of

gradual

•f

shadows

must

carry

1961

■»

consumer

will

make

surge of capial invest¬
carried such outlays as

that
as

The

hand,

overall demand.

painful, are taking place in a noninflationary environment, and at a
relatively high level of international

further

diminished

time

Turning to the Nova Scotia scene, the general trends
and prospects are much the same as for Canada.
In par¬

and,

decline

year

year.

'fi

and

further

half

latter

Industry which will result in about

■

other

working

however,

tional

purchases.
On
less house building
rate of inventory
accumulation
have
been
important
influences
limiting the growth in
the

the

1961,

1955-57

high

continu¬

from

QVz%

the

institutional

and

well

but not

adjustments that must take
place in the Canadian economy fol¬
lowing the rapid expansion of the
postwar years, which culminated in

economy

the

contain

opinion,

The growth rate should
significantly reduce Ca¬

1960.

over

1960.

provide
of

President and General Manager,
The
1960

L.E.SPENCER

(fl

,'V

now

The Goodyear Tire & Rubber Company of Canada
Ltd,

necessary

job op¬
portunities for the growing number of Canadians in the

y»)

1*1

this challenge,

meet

labor force, and return the nation to the path of
growth.

*s\
M
■

action

public
as

enterprise
consumer

product field in 1961.
Thus, unless factors

1961

areas.

Sales of electrical
and

will

growth

Canadian

slight gain

rate

age

force

ment

stimulus from

rise

clude:

J. Herbert Smith
past two years. Demand for heavy
equipment for power utilities is also
at a relatively low level. There is little indication that

i.S>

Per¬

forward.

move

investment

add

■w

economy

was

likely to be uneventffil

scene

nadian unemployment from its aver¬

and
presently some solid financial reasons to
anticipate a small upturn in confidence and spending.
These
sustaining forces are being reinforced "by a
special program to stimulate Canadian development and

;.v

affecting the

1939.

over

business

be sufficient to

During the past year, overall de¬

there

tal goods continues at a low level,
mainly as a result of the decline in
major industrial projects which has
been one of the dominant negative

expected in 1960, but

in total, have risen
3%; employment increased on an
average by 1.7%
between 1959 and
1960; and exports were up by ap¬
proximately 6%. Such achievements
of the past provide a firm base from

give

ness

n
»v

grow

TAYLOR

1961—with over-all economic activity, in my

showing

incomes,

tained

Activity in electrical manufactur¬
ing will pick up only as other busi¬
activities
gather
momentum.
Current demand for electrical capi¬

)'r■%:

The Canadian

Scotia

nity in 1961 will hold close to the

$35.3 billion—over $1 billion short of
the level anticipated.

'ji

not

between 2% and 3%

cations

Product

STANFIELD
in

ous

expectations in many fields of economic activity. It saw
a decline in housing starts and a drop in investment in

SMITH

HERBERT

President, Canadian General Electric Company Limited

President, Argus Corporation Limited

In the year 1960 Canada moved ahead, not with sensa¬
tional economic expansion but with moderate growth
and some valuable achievements.
The Gross National

received
t

ROBERT

Premier of Nova

sonal

year after year.
will move into a fine new
fluid milk plant in London, necessitated by a steady
growth of our volume in that market. This will be our
third new plant in Ontario since 1956.
We expect that
capital expenditures will be about the same next year as
they have been in 1960.

-f

may result in
situation in some

rolls; wage rates invariably go higher,

Early in the

HON.

the

ably priced, due to keen competitive practices.
We expect little change in the number on our

consequently

markets, where certain containers have been

;j:

;

and

cost

the correction of the odd unprofitable

t"'

■

company

stantly rising costs and declining earnings

":'H:
i' B
<«

markets in a manner which will en¬
industrial expansion and the nation's rapid
f
-f
f ,'f
vf-f f. ■■v.,,

export

development.

selling price
of fluid milk in Ontario will bring about a further in¬
crease of 0.190 per cwt. before next fall.
However, con¬

ill*

■"

our

determines

■>

and

in nine years.
We do not expect that the Provincial formula which

'rf.

•■

!•

in per capita consumption and
continuation of the steady increase in

our price schedules we
anticipate that there will
slightly higher revenue in our ice cream division next
year. This will be the first increase in ice cream prices

tic

l,{'

})

Therefore, the Canadian public may expect to receive
plentiful supplies of higher-than-ever quality products
at attractive prices while management and
labor to¬
gether seek ways and means to compete in both domes¬

anticipate

and

high-wage low-

our

sales that has characterized this product 'since the lifting
of wartime restrictions on April 1, 1947.
With adjust¬

:; j!

approximately $300,000,000 for 1960 was encouraging in
that it represents an increase of 6.3% in total capital
repair expenditures over 1959. A substantial addi¬
tion to manufacturing facilities'is represented by the
construction of a new pulp mill in eastern Nova Scotia
(approximately $40,000,000), and other new plants re¬
cently completed or now under construction which will
produce electrical wire and cable, alginic. ,acid from
rockweed, elastic webbing and underwear, batteries,
potato chips and a variety of other products.

modern

volume domestic economy.

dairy product

one

from

combined

the

above
return

vineyard

with
for
care

investments.
Wine

Institute

peninsula

the

average

are

long
and
i

and
ex¬

pressing concern over the disturbing encroachment made
by industry and other factions on the irreplaceable rich
acreage of Niagara.
f
!,%':/•; -•
f,;/ I'd
..

Fear

has

bedn

expressed Hhatf futufef'demands • of
wineries will not be met if the present trend toward
commercial
encroachment
continues.
Once
valuable
>

Volume

193

Number 6024

The

Commercial and Financial Chronicle

(469)

fruitlands

are now

ways.-

•

the sites of homes, industry and high¬

Canada's Wine Industry, enjoying a comfortable

application of nickel in electroplating, mainly as a result
of the use by the automotive industry of
improved tech¬
niques, permitting higher quality nickel plating.
Following is an estimate of free world nickel con¬
sumption in 1960 by fields of use:

econ¬

striving for better table, dessert and
wines.
Research on the governmental and
industry level is continually going on. New vines are
being experimented with in an effort to produce wines
of the finest quality.
Growers too are anxious to raise
omy,

ever

premium

standards

the

order

Field:

Grape

Wine

and

Festival

Canadian

the

Wine

Institute

and

the end of the growing season.

serves

•

Steel

Castings

Copper and Brass Products

•'■-v-

156%

As grapes are

held

in the

Garden

Free World Nickel Production
Increase

City at the end of September.

HENRY

for many

years

was

Europe

has been the

consumption of nickel in the

will

States

and

Canada

last

year

approximately the same as
in 1959. Large inventory liquidations
by consumers of steel products in
held

back

the

pro¬

alloy steels, during the second half
of the year, thus limiting the con¬

Henry S. Wingate

I960* the geographical distribution of the

Nickel Applications
All markets for nickel advanced during the year,

of nickel in stainless steels

A substantial increase

Angeles,

American

the

Because

Board

Laboratories, Inc., spe¬

Okla.—Personal Invest¬
Services,
Inc.
has
been

formed

offices

with

at 6336

Admiral Place to engage in a se¬

Officers

curities

business.

Clarence

Saint, President; Leo

and

Keeling,

Secretary-Treasurer;

hospital

Appel,

management,

announced

Uranus

President.

has

and

Carl

Hall,

Jr.,

are

Assistant

Secretary.

the

developments

political

Cuba,

research, market development,
were

sales

Joseph
R.

has

Schwarz

Dickson

increasing the sales
anticipation of the greater supplies which
forthcoming this year.
in

again

of the

be at

slowness

in industrial pickup in the
consumption of nickel will
very high level in 1961.
Spurred on by

States,

free

world

intensified market and research
activities, and supported
by increasing supplies of the metal, industry through¬
out the world will be
receptive to using nickel in an

expanding variety of applications. The economies and
technological advantages which nickel
can
provide
should

result

reaching

new

the

free

world

nickel

consumption

peaks in the years ahead.

FRANK W.

YOUNG

President, Canada Foils, Limited
I

sincerely believe Canadian economy faces a great
challenge in 1961.
Shorn of the complacency gained
through more than a decade of expansion fostered by
foreign capital, stark realism dictates that Canadian

industry must

now stand on its own feet and seek the
solution of its problems amongst its own people.
The
a

heady wine of foreign investment has resulted in
complacent ^attitude frOih" which Canadians must, of

necessity, rid themselves.
ress

has

been

made

For too long the path of prog¬

smooth

the

influx

smooth

the

ride

now

over

and

will

require

Continued

Complimentary

Company Incor¬

Copy..

fice, 30 Broad Street.
Mr. Schwarz was formerly with
Merrill

Lynch, Pierce, Fenner &
Smith, Inc., and before that, was
with Harriman Ripley & Co. Inc.

;

Of Clark, Dodge
On

Feb.

become

1, Thomas K. Ware will
Vice-President of Clark,

Dodge & Co. Inc., 61 Wall Street,
New

York

New

York

City, members of the
and

Exchanges.
from

American

partnership

Maynard &

Co., Jan.

Stock

will retire

Mr. Ware

Stillman,
31.

CORRECTION
In the Financial Chronicle of Jan.
19

let the BNS help you
The Bank of Nova Scotia

spot Canadian business

usually find out things
yourself—market cir¬
cumstances, labour situation, whom to meet, etc. More
than 600 BNS offices across Canada and abroad keep in
close touch with each other, including the U.S. office
nearest
you. Phone, write, or visit it for any help you need.
One particularly helpful BNS service is the Canadian
Business Guide—an up-to-date, general outline of taxa¬
tion and other matters of special value to those consider¬
ing the establishment of a business in Canada. Your free
copy is available from either of the addresses below.

THE BANK OF NOVA SCOTIA

reported that Raymond

was

engaging in his

securities

business

Calif.

are

can

about Canada faster than you can

New York: 37 Wall Street

H. Miller

Chicago Representative: Board of Trade

Building

is in error,
still

with

Inc.,

2030

own

Oakland,

informed that this
.

and that Mr. Miller is
Insurance

Franklin

St.,

Securities,
Oakland,

with which he has been connected

The

Toronto

Stock

Exchange

Monthly Review, showing essential trading
and other data on all issues listed, will be
sent; to you free on request.

for many years.

Chicago Analysts To Hear
CHICAGO,

111.—James

Coul-

trap, Executive Vice-President of

THE TORONTO STOCK

EXCHANGE

Miehle-Goss-Dexter, Inc., will be
guest

speaker

the

luncheon

meeting of the Investment Ana¬
lysts Society of Chicago to be held
Jan. 26 at the Midland Hotel.

com¬

posed of the cost of interest and dividend payments. The

joined

Ware to be V.-P.

outside

capital with little regard for the rocky road ahead

the municipal bond
department of the New York of¬
porated

pro¬

continued by Inter¬

Nickel

Jos. Schwarz With
R. S. Dickson Co.

per

did the

and technical services

spite

United

the

East

cialists in medical test laboratory

been

Continent.

foregoing figures do not include the planned capacities

TULSA,
ment

United

Outlook
In

Form Personal Inv. Services

Stanley Ross, Presi¬
dent of California Investors, Inc.,

Los

with

the

long ton, remained unchanged,

nickel

will be

originating mainly from the facilities of The
Mining Company in Riddle, Oregon, remains at
approximately 23,000,000 pounds per year. The balance
of the free world's nickel production capacity consists
largely of the capacity of Japanese refiners employing
imported ores. The refining capacity of such refiners
could support, if sufficient ore is available, an annual
production of 35,000,000 pounds of nickel.

showing the greatest

also registered for the

was

Named Director
Election

facilities

Inco's

With

during the year.
These efforts con¬
tributed materially to the increased nickel
consumption
in 1960. They were directed to
meeting the strong com¬
petition from other materials and

States,

as follows: Europe, 43.5%; United
States, 43%; Canada,
2.5%, and others, 11%.

gain.

after

Ontario.

nickel

during 1960 at 74 cents

the

national

Hanna

free world's consumption of nickel by areas is estimated

use

motion

Nickel, with mines on the island of New
Caledonia, has been estimated at about 55,000,000 pounds
annually.
Nickel production capacity in the United

sumption of nickel.

the

in¬

planned capacity of the French nickel company,

Societe

duction of stainless steels and nickel

For the year

The

America

North

world

the

trict

world.

Total

in the Sudbury Dis¬
Thompson project in full
operation, International Nickel's total capacity of nickel
will be more than 385,000,000 pounds per year. Planned
annual nickel production
capacity of other Canadian
producers will include 65,000,000 pounds or more of
Falconbridge Nickel Mines Limited, and about 25,000,000
pounds of Sherritt Gordon Mines Limited.

largest

United

continued

International Nickel's new nickel project at Thompson,
Manitoba, which is rapidly nearing completion, will con¬
tribute substantially to the anticipated increase in 'the
nickel
production
capacity of the free world. The
Thompson project, which will be the world's first fully
integrated nickel-producing operation, is scheduled to
begin commercial operation in early 1961 and will have
an annual
capacity of fully 75,000,000 pounds of nickel,
making it the second largest nickel production operation

market for nickel,
below that of the balance of the

free

world

refined

per

Further

free

capacity of the free world, exclusive of Cuban
sources,
will approach 600,000,000
pounds
annually.
Canada will account for more than three-quarters of the
free world's total nickel production capacity in 1961.

Canada, Limited

,.A substantial increase in the use of nickel
was the main contributing factor to
the
free
world's
record-breaking
consumption during 1960. Differing
from the pattern of past years, total
consumption
in
North
America,
which

of the

duction

Consumption of nickel by the free world will set a new
high
annual
record
in
1960,
exceeding
500,000,000
pounds, an increase of over 15% above that of 1959.

world's

producers

for

Marketing and Research Activities

their production capacities in 1960 and it is esti¬
mated that before the end of 1961 the total nickel pro¬

Chairman of the Board,

£600

price

Capacity to

crease

WINGATE

The International Nickel Company of

V '

Intensified

Nickel

price

pound, including the 1% cents U. S. import duty. The
corresponding Canadian currency price reflected pre¬
vailing exchange rates, exclusive of the 1V4 cents import
duty. The price of nickel in the United Kingdom, which

8%
>

market

States continued
unchanged

■

hauled to the wineries, Niagara uncorks
its effervescence with
a
mammoth
parade of floats,
bands, marching units and special attractions.
The Tenth Annual Grape and Wine Festival will be

The

15%

All Others

signal

12%

and

sources.

Nickel Prices Remained Unchanged

13%

Iron

annually in St.
The event is sponsored by the Mu¬
nicipality of St. Catharines, the Ontario Grape Growers

Cuban

16%

Nickel

held

Catharines, Ontario.
and

High-Nickel Alloys
Alloy Steels

supply the vintner with the
quality grape sought for Canadian wines.

It is not possible to
predict how soon there will be a
resumption of nickel supply for the free world from the

32%

Electroplating

totaling about 100,000,000 pounds of the plant built
by
the United States
government at Nicaro, Cuba, or the
Cuba built by Freeport
Sulphur Company.

facilities in

Percentage of Total

Stainless Steels

234

BAY STREET

TORONTO-CANADA

united

page

'1
\.

n
V-

(470)

The Commercial and Financial Chronicle

;*f[
6

Thursday, January 26, 1961

Continued

from

page

of the need for Canadians to live within

position.
The

depressing of the

Canadian dollar to parity or
our exporters.
The doors of
open for selling our prod¬
ucts on a more competitive basis. It will be up to Cana¬
dian management and labor to work together to keep
the prices of our products from spiraling beyond foreign
produce.
•
>, '
•'•••;' •. " \
••
;•„, •
Foreign made imports will cost more due to a lowlower Is

'•

)>(
>1
n

•>

;

costs

remains

ito

individuals

;$•

k'
j?

M'
i?!:

'f
H'
tjlf'
;IV

;

■

>)h

;

than

income

from

Canadian

financially in the expansion of
A much needed campaign to have
Canada's future must be imple¬

retain

our

present

our

only* the \gojng, will be
rougher than previously anticipated.

■»?>

I)'j
f)><

was

year

ago

little

■))\

TAYLOR

President and General Manager, The Huron & Erie

'Iff

Mortgage Corporation, and

The

Canada

Trust

Company,

Ontario

London,

when

and

trfjb-

see

consumer

•tn(

export

the Canadian economy
income rising to new heights
of

trade

expanding by
particularly so when there is
increasing likelihood that the
our

»'•

Canadian

jj)»,

some

year.

count in relation to the

; •<*>.

dollar will

move

dis-

U. S. dollar,
development which should further
improve our export prospects.
Furthermore
our
government has
recently initiated * moves to foster
a

:fv

;:lr"

ernment

budgeting,

voluntarily,
in

the

for

current

To be

perhaps

moderate
fiscal year.

fig
•I

are
J.

—

Allyn Taylor

further substantial expansion in the Canadian econ¬
omy can take place. More people are joining the labor
force each year than are
being absorbed, resulting in an
increasingly high level of unemployment. New residen¬

actually

,-T

I'll)

over-supply of mortgage funds.

most

sector

every

witness

capacity in

Excess

al¬

industry including

raw

causing severe competition and seriously affecting
profits in many cases. Obviously this can not go too far
as industries' plans for
capital expansion will be post¬
poned.

Canada's

prosperity in

1961

will

depend

great
activity in the United States, the
United Kingdom and
Europe because over 15% of our
gross national product is currently represented
by ex¬
ports to those areas. In certain of them a noticeable

■

extent

'f1

t1'
■

!»•

have

ii*

•F

down is occurring and if not contained
detrimental consequences in this
country.

^expenditures

slight net declines in other respects. Because
ing world markets exports might taper off

may

worsen¬

slightly

J
Mr

decline to

an even greater
extent, thus producing
favorable trade balance. This will be
important
to our balance of payments as
capital inflow is likely
to decline still further.
a

offsetting

the year progresses but as a
consequence of a softening
dollar and a levelling off of business
activity, imports

could

It would appear that our
gross national product for
1961 will approximate the 1960 level
of about $35.4 bil¬
lion
with
larger government

•.v

the level of

slowing

■'

7
u'

resources

I/;.1
'h

It, will

interesting to watch the

extent

which

foreign investment will decline and whether the
savings
of

Canadians will be

cline. In any event

expansion which

It'

sufficient to match any such

can

Canada

has

sure

goods

durable

captured

area

services;
share of the
continues

market

the

and

greater

foreign

made

all

durable

industries,
supplies

goods

has

made

goods.
For example, 10 years ago, imports of
apparatus and supplies accounted for 22% of
total domestic production and by 1959 had risen to 38%.
Unfortunately, this upward trend is still continuing. For
the
first
eight months
of
1960,
electrical
imports
amounted to over 41% of domestic production.
electrical

the

check the inroads being made

attempt to

domestic market by foreign competitors,

into
the indus¬

despite substantial increases in the cost of labor,
capital and materials, has had to suppress the general
price level of its products.
Consequently, profit mar¬
gins have been depressed to such an extent as to threaten
the ability of the industry to maintain itself.
This, then,
try,

is the environment in which

ing industry is operating

the electrical manufactur¬

it enters the

new

year.

the

present time, prospects for improvement in
this situation during 1961 are not encouraging.
Capital

spending, while it may be equal to or possibly slightly
higher than in 1960, will not be concentrated in the
areas most significant to
the electrical industry.
Con¬
sumer
spending should be somewhat higher than last
year but it is not expected that this will result in a
proportionate increase in the sale of consumer type elec¬
trical products. There will also be a downward pressure
on
the level of production in 1961, stemming from a
cessation in the rate of inventory accumulation.
Inven¬
tories have been rising steadily for the past two years
relation

the

current

of business

level

are

and

immediately

fore¬

excessive.

a similar statement, I said that 1960
in which the industry would have to
strive vigorously to resist the further shrinking of its
home market.
The experience of the past year indicates
the necessity for even more vigorous
efforts in this
direction since in spite of large capital outlays to provide

year

would

ago,
a

year

efficiency and in spite of new product and
development, the industry's working force, and

still

are

being eroded by foreign

producers

that

enjoyed

the

de¬

automatic

the

capture

This situation, coupled

The provisions recently presented in the supplemen¬
tary budget will have little direct effect on the imme¬
diate problems facing the industry but they do represent
a growing appreciation by the government of the need
for creating a more favorable climate for secondary in¬

tial housing which has been one of the
mainsprings of
economic activity is showing signs of saturation in
many
areas
and this coming year
may

increasing share of the home
with the current pros¬
pects of little change in the overall level of business
during 1961, can only result in another year of reduced
activity for Canadian Electrical Manufacturers.

in¬

realistic, however, there

perhaps suffered the
most from the devastating
erosion
markets caused by the influx of foreign-

home

its

market.

any

to'

industry

who continue to

deficit

fundamental problems present which
must be faced and resolved before

G. L. Wilcox

earnings,

saving and investment by
Canadians in Canadian enterprises.
Monetary expansion has occurred in
the past few months and the gov¬

and

the electrical apparatus and

greater

increased

4
i,J!

weather

goods.

market

•

non-durable

tinued

development

concentrated

domestic

seeable

This is

-v.

and

rapid

unseasonable

and, finally,

At first glance it is hard to have doubts about the con¬

•'i1'

been

plemented efficiencies wherever necessary. The time of
pampering and whimpering is over and the hard facts
of economic life must be faced.
Canadian ability, ca¬
pabilities, and common-sense can make Canada the great
country it is intended to be.
The future is no less rosy

Vl•

well

rise

high economic standards
present standard-of-living. The lessening
of foreign investments must be replaced by Canadian
investors. It may require more than the spirit of nation¬
alism to accomplish fhis fact. The tight-money policy
must be relaxed to provide needed funds ,to stimulate
construction and industrial expansion.
The unemploy¬
ment situation demands a remedy of steady work rather
than spasmodic injections of public work programs.
I have no doubts about Canada's great future. I firmlv
believe that it is time Canada's industries and producers
took a soul-searching look at their operations and im¬

it'"-

assist

invest

mented

•i

The continued

expectations;
consumer
which has been sluggish

levelling in total labor income, has

investment

could

sources

Canadians

ascertained.

Canadian operations.

:tlj

spending,
due

provided small Canadian busi¬
through increased exemption on profits subject
to higher tax rates and the removal of the 4% surtax

•3f

short

New

reasons.

capital

equipment have
dropped
substantially
due
to
the
capital investment program falling

The incentives recently

twr

for

postwar

dustry in Canada.

million

pounds of

million

pounds for the

was

announced in November, 1959,

Atomjc Energy Commission that it would not
exercise any of its options on further Canadian uranium
production, beyond the expiry dates of present sales
contracts, substantial readjustment
has taken place in Canada's uranium
mining industry.
To avoid an almost total eclipse of
the

industry,
which
would
have
taken place in 1963 if existing sales
contracts had simply been allowed

same

period.

amount

the extent that

over

•

and

mills

continuing to produce in the
expiry of their

are

of Ontario until the normal

area

contracts about two years from now.

Further closures

are expected between now and 1966.
the absence of the
development of a really sizable
civilian market for
uranium, Canada's uranium industry
is in fact
shaking down to a hard core of the most pro¬
ductive mines.

The effect of these
large scale closures on the mining
communities concerned, and in particular on Elliot
Lake,

has been severe. This is
to the individual

matter of

companies.

While

continuing

concern

mining company likes to reduce the size of

its operations it

be said that most of the individual

can

companies are using the
"stretch-out" formula to

financial

implications

the

possible

best

the

advantage.

The

continuing producers will almost certainly continue
substantial earnings during the life of their
existing or extended contracts, and much of this
money
will probably be available for
reinvestment in new proj¬
to

achieve

ects.

Some of the
continuing companies
strong financial position.

already

are

Looking to the more distant future, Canada will
prob¬
ably maintain indefinitely the nucleus of a
strong and
efficient uranium mining
industry, which will be in a
position to expand again when the
already steadily ris¬
ing demand for uranium for civilian
the sizable proportions
the present decade.

purposes

EDWARD

The

retail

value

reaches

generally expected about the end

WOOD

President, Imperial Tobacco Company

of Canada, Ltd.

tobacco

products sold in Canada
approached three-quarter billion dollars in 1960.
Over
50% of the retail value went to the Federal
in

Government

the form

the

enue.

Excise

tobacco

the

Taxes.

Cigarettes represent 80%

manufacturer's

1960 the

1959

rev¬

continuing burden
increase

tax

and

the

general sluggishness of the economy
severely retarded the normal 7%

growth

rate

resulting in

cigarette volume,
increase of less than

2% in volume and

a no-growth posi¬
capita usage. The total
increase in cigarette volume over the
full 21-month period since the tax

tion

rise

per

is far
for

crease

less

than the average in¬
12-month period in pre¬

vious years.
Unless there is

the

tax

some

improvement
areas, the

economic

situation appears imminent for

same

1961.

Given

prosperous

Edward C. Wood

eco¬

nomic

conditions, there may be some minor consumer
adjustment to the current tax-dictated price and some
semblance of normality will be restored.
This would
bring the estimated increase for 1961 up to 4%. How¬
ever, an excise tax adjustment to a less unreasonable
level

would

restore

the

long-run

growth

average

and 7%.

higher

rate

growth

is absolutely necessary for
cigarette industry's commend¬
The manufacturer's selling
price (net of taxes) is actually less now than in 1951,
but the costs of labor, leaf and freight have increased
tremendously since then and especially in recent years.
maintenance

10-year

price

the

record.

Tobacco leaf, at the farmer's price, represents the
largest single cost in the production of cigarettes. The
small 1959 flue-cured crop produced the
highest price
it has ever brought.
The 1960 crop, now being pur¬
chased, will reach a record 200 million pounds, but
because of insufficient

the

high demand

reserves a

may

keep

for

wage

non-durable

goods

industries

Canada.
The

freight
over

essing

billion
Hon. Robert Winters

individual mines

production compared with the previous year, and, physi¬
cally, in the closing down of a considerable number of
mines. Those mines which have closed in advance of
the expiry of their sales contracts have found it advan¬

tageous to sell to continuing mines the balance of their
"rights" to deliver uranium, and the continuing mines,
as they have acquired contract delivery "rights"

industry
which

100

further, pressured

involves

the

cigarettes;

330

Ontario

manufacturing

same

of leaf tobacco from the proc¬
centers of the industry; 35

million

manufactured

and retailers

by the cost
transportation annually

production

pounds

the

million pounds

have been

first

eight months of this year, the average
of the Canadian worker in the tobacco and
products industry was 6%
higher than the

average

1959 peak.

wage

tobacco

have accepted the delivery "stretch-out" proposals, this
has been reflected, during 1960, in a decline in uranium

insofar

mines

hourly

To deliver the

material

longer period obviously implies the
need for a lower rate of production.
To

two

Bancroft

For

expire, the U. S. A.E.C. offered to
accept extensions of existing con¬
tracts for
periods up to Nov. 30,
1966, at the latest, with the proviso,
however, that only the same amount
of material would be accepted over

with

compared

beginning of 1961, only five of the original
large integrated uranium mining and milling

the price around the

U.i08,

period of 1959.

same

operations in the Elliot Lake area will still be produc¬
ing, and another mine and mill are scheduled to close
during 1961. In the rest of Canada, the Port Radium
mine closed down this
year; two mines and mills remain
operating in the Beaverlodge area of Saskatchewan, and

able

the U. S.

the extended

longer

By the
eleven

the

contained

working fairly close to capacity.

This

ROBERT WINTERS

President, The Rio Tinto Mining Company
Canada Limited
Since the decision

year, the decline will be even more pronounced, as for
the first few months of this
year the industry was still

between 6%

HON.

themselves

assured

21.7

main

three

orders

nesses

\ i)f-

hit—for

adverse effect

have

26.3

ticularly durable goods manufacturers have been hardest

price of its products.

;

This could have

some

mines

production for the first 10 months of 1960 amounted to

WILCOX

the

freight costs have proved a mill-stone around the neck
of Canadian industry and added to the ultimate selling

it
hi:

other

operating life.
Latest available statistics show that Canadian uranium

of the economy have not been equally af¬
current cyclical downturn which began
10 months ago. Manufacturing industries and par¬

industry especially those producing materials
having imported content. It means that Canadian industry despite any assistance from duty or tariff regulations,
must conduct a thorough examination of operating effi¬
ciencies.
This could prove to be a salvation to Canada's
secondary industry who realize only too well that price
is a major factor even on the domestic market.
The deferred railway strike spectre still hangs over
Canadian industry. The ramification of its solution to

;

fected

from

means.

All segments

home

.•

Ill-

their

President, Canadian Westinghouse Company Limited

again

are

ered Canadian dollar.

•>

markets

welcome tonic to

the world

is ended and that in its place will come a more
rate of growth and an increasing realization

years

moderate

Canada to restore the economy to a more even balanced

across

plants

Canada.

cigars

tobacco
to

and

million

from

Quebec
and
thousands of jobbers

Traditionally, freight

rates

subject to increase and it appears
likely that
pressure

will

exist in the future.

The tax burden has proven too
excessive for all con¬
and, in the absence of some excise tax
reduction,
will continually depress the future
of the tobacco in¬
dustry. It is hoped that a tax decrease will soon
follow
cerned

and, if it does, the industry should once again become
dynamic contributor to the Canadian
economy.

I?
$

Volume

Number

193

6024

The Commercial and Financial Chronicle

YORATH

There has been much
months.

President, Canadian Western Natural Gas Co., Ltd.
And Northwestern Utilities, Ltd.
The year

a most encouraging one for
industry. Applications to export
to other parts of Canada and to the United States

natural

gas

the

received

gas

brought

many

the

interested

Some

/multi-

already

are

by the Fall of 1861, Alberta will be
supplying its natural gas to con¬

When these

sumers

lal

;he

'■

ge.

are

from

completed

the

Mid-Western

network

Western

and

far

south

jfci1'

eir

•

r 'l

oj-

The result

area.

D. K. Yorath

•

fit
M

,nd
i

will

cost

the

neighborhood

$151

million.

gas export reaching as
high as another $350 million to be spent on field gather¬
ing systems, processing plants and exploratory drilling

The Canadian Bank of Commerce estimate field

1961.

expenditures by the oil and gas industry on exploration,
development, natural gas utilization, production and

'is-

payments will total over $702 million in 1960
nearly $772 million in 1961, exclusive of pipelines.

aiid

The

same

from

;

ies

md
t

••

figures, staggering

unrealistic

Ad.

pipeline

ver

its

when

they

realize

California

the

authorization

from

one

ent

This

does

not

evidence

development of large

any

border

something in
day, despite the fact

the

Canadian

National

day.
lack of faith in the further

reserves

the next several years. :
The capital expenditures

stations

compressor

Energy Board is for 458;75 million cubic feet

seem

project alone,
taking gas to California has designed its

of 800 million cubic feet per

present

do not

are,

that

that with the addition of

deliver

can

excess

ada

which

that

t
;y

per

of natural gas each year

over

*'■•3
«"

m
U'J

employment
sales

will

berta's

and

the

naturally

will

annual

have

almost

result

considerable

from

revenue

beneficial

natural

effect

upon

gas

Al¬

impossible

to estimate at this
time. In addition the sales to the United States are bound
to

i-':>

have

economy

noticeable

impact upon Canada's foreign ex¬
the nation's earnings from foreign trade.
accomplished without endangering the
of natural gas to the citizens of Alberta. The
a

change and

upon

All this will be

supply

V.." -i

Alberta

Government's

the agreements made
and

Canadian

The

year.

S"'S

gas

¥-a
KAa

the

legislation

and

regulations

£P

utility

companies,

Natural

Western

Gas

Company

continue

three

companies,

export

Limited

ample supply of

gas

come.

•

the long-term

assure

serving

the

over

1959

the

same

period

available for

183

1959.

billion,

the

m.c.f.

the

first

consumers

half

1960

and

$0.93

only

end

1960

increased

1960

their

some

from

3.8 billion

than in 1950.

cubic feet

1960

over

1959

at the

Canadian

Western

Natural

Gas

this issue

limited to

was

residents

parent

company

As of

and

International Utilities

held

Canada

1,601,638

1,023,758

Countries

234,640

Britain____

.32

and

airline

TCA
the

will

end

48.46

With

the

1.20

carried

1960,
1961.

With each
to

have

taken

the

creasing passenger traffic
longer routes.

49.99%

100

that

feels

and

passing

fares

and

other

substantial effect in

in¬

1961, particularly on the

some

3,400,000 passengers by
figure should be close to

this

year more and

the air for

added

low

new

benefits will have

4,000,000

4,158
4,030

35.68
8.18

common

55.82%

9,335

Great

Of the

;

same

passenger

Lim¬

Shareholders
United States

class service to

economy

rates in North America.

The

follows:

manner.

time, the airline will increase baggage
reduce excess baggage charges to give
passengers the highest allowances and lowest ex¬

cess

as of record of October 19,
$2 convertible preferred stocks of
were

the

allowances

It is interesting to note that
common

new

addition, TCA will'extend

TCA

ited and Canadian Western Natural Gas Company Lim¬
ited is International Utilities Corporation of New York.
1960 the

2, and initi¬
round-trip excusion fares 25% lower than even the
new
low economy fares on virtually all routes during
eight months of the year.

of Northwestern Utilities,

400

ate

that
company's register, the great majority being citizens of
this province. Northwestern is planning on making a
similar offering of its common shares to the Alberta
/public in 1961.
The

the

all of its North American routes after Jan.

Company

of Alberta.

miles

600

calculated in this

were

3,790 shareholders

were

over

fares were calculated on a unique cost curve
bringing the charge on each route segment
into closer relationship with the actual costs of operat¬
ing over that route. More than 2,200 individual fares

Limited offered approximately $3 million of its common
shares to the public. In so far as possible the distribution
the end of October there

domestic routes.

routes

The

compared to 39 in 1950.

airline,
who have flown on

principle,

total

the

substantially reduce fares
length, maintain fares on
600-mile range at close to
present levels and increase slightly fares on those routes
under 400 miles in length.

182,000 at the end of

1960

for

routes

those

(estimate) for the year or 54.1 billion more
They added 22 communities in 1960 bring¬

ing the total to 155
In

and

comfort

The new rate structure will

by some 5,700 since the end of 1959. In the
two companies annual gas sales increased by an esti¬
of 98 billion

attract

two occasions. They should, we believe, be¬
regular airline customers, attracted by both the

fares

and

mated

standards

will

and

feel that the im¬

perhaps the single most important contribution to
Canada, and the one which will
have the greatest effect of air travel in 1961, will be the
introduction by TCA on Jan. 2, of completely revised

consumer

95,973

maintenance

But

Canadian Western Natural

customers

proved

And

commercial aviation in

per

estimated

to fore¬

standardization

comfort and convenience of turbine air travel.

m.c.f. and the rate $1.25.

Gas have

that

one or

come

averaged 137 m.c.f. and the average rate approximately
$0.46 per m.c.f.
In Ontario the consumption was 63
Northwestern Utilities and

costs

people who have not yet flown,

average used

paid

the

speed

gain of 20%
period the

m.c.f. The consumption of a residential Alberta

many years

F. T. Wood

same

know

overhaul.

number of gas consumers increased by 8% up to
1,140,000.
Of the total Canadian consumption Alberta con¬
sumed the most—44% of the total, with Ontario next at

32%. Canadian residential

traffic is hard

just three aircraft types and a
single
engine
manufacturer
will
substantially reduce the problems

scene,

total

Rolls-

according to the Canadian
Association, during the first half of 1960 the sales
of natural gas in Canada increased
by 31 billion cubic
feet

turbo-prop
All of these

Just what effect this modern fleet
will have
cast.

and

Canadian

Viscount

short roMes.

aircraft will be powered
Royce turbine engines.

source

medium-length routes and

inimitable

aircraft

communities
a

President,

only Douglas DC-8 jets on long-haul
routes,
Vickers
Vanguard
turbo-

North¬

Gas

and of their

consumers

additional

the

Lines

airline operating an all-turbinepowered commercial air fleet. By the summer of next
year the airline expects to be flying

was

Air

1961, Trans-Canada Air Lines will retire the
piston-powered aircraft to become the world's

decrease

located within economic reach of

WOOD

intercontinental

the

are

resi¬

were

last of its

first

compared to 14,519 in 1959.

plus

by Northwestern Utilities, Limited

requirements of the Alberta

having

two

services in 1960

Other

with

During

props

to the producers

natural

•:

/•

revenue

These
V':'^
-

estimates that

source

gas sales will increase from $67,600,000 in
$182 million in 1962 and to nearly $254 million
by 1968.'
;
v:;"
1959

value

and

supply when that supply becomes available.

royalty
)b-

the

Trans-Canada

basis will start to be felt.

revenue

shareholders

Assistant

new

which

Various authorities have made estimates of other capital

a better year in 1962
beneficial effects of natural gas export on an

companies

the

pipelines which in
'
1945 would only have been contemplated
by the most
daring visionary.
The transmission pipelines to be built in Canada in
1861

of practically all of the communities that are within
economic reach of present sources of
supply having been
connected
already. It is the intention of- these two

Pacific

expenditures directly related to

icy

Canada

Francisco

vast

projects

States

United

San

annual

and 3,390

50.59%.

Administrative

leading to what should be

when the

sound

year

1961

38.66%

partly caused by a drop off in resi¬
dential construction and by fewer additional communi¬
ties being connected in 1960. The latter was the
result

Ocean to the St. Lawrence and in the

Eastern,

;rn

Canada

dent in Canada

9,200

under¬

p
w

not

from.

Utilities, Limited and Canadian Western Natural
Gas Company Limited, estimated
they would add some

and others are on the drawing

I
KV,'.-a.

the past

western

boards.

quoted

receding

are

This

approvals

these
way

phenomenal

million dollar projects resulting from

building permits in the Cities of
Calgary was down substantially over
1959, from $195 million in that year to some $88 million
as at the beginning of October 1960. But then 1959 was a

appear¬

the

of recession

what

recession—at any rate not for Alberta. I think in Alberta
levelled off in 1960 preparatory to another good

Edmonton

before Government Boards and

Commissions.

talk

wonder

True

years

preparation, negotiation and
ances

from

These 'approvals

fruition

approvals

necessary

Governments.

often

Certainly the figures I have

just concluded was

Alberta's

(471)

both

incentive

Canadians have

business

and

faster,

vacation

travel.

modern

air¬

craft, lower fares and added passenger amenities, 1961
:could well be a record year for Trans-Canada Air

.35

both

Lines,

2,869,371
100.00%
8,317
100.00%
alone, 952,798 shares were held

stock

terms

passengers

carried

total

and

revenues.

li
m

11
¥'t
m

Continued from page 2
with

first

offered
asset

value

<rL"

June,
in

electronics

owned

1959,
of

large

and

outside

medium

the

f
I

excess

America.

Federal
siders
the Small Business
is

ECC

companies of
size located

United

T h

medium

ject Electronics International into
the future three to five years and

States

Government

"undertaking"
antee

not

that
tax

tax

has

the

given
will

guar¬

corporation

con¬

size company

see

potentially most rewarding

picture—a

picture

until

profit

potential

tion,

which

at least July, 1986. In addi¬
the corporation will not be
licensee under
required to distribute income, or
be one having annual sales in ex¬
Investment Act of 1958. Electron¬
capital gains, to maintain the tax
cess of the equivalent of $5,000,000
ics Capital Corp. was the nation's
exemption, and does not intend to
but
less
than
$20,000,000. Large do so. As a
first publicly held small business
result, Electronics In¬
size
companies would be those ternational will be able to reinvest
investment company and the first
with
annual sales of $20,000,000
SBIC to specialize in the electron¬
its income and capital gains from
or more.
>
ics
foreign sources free of such taxes,
industry. The 1959-60 price
Electronics International is ex¬ which means that over a period of
range of. this
stock was 73/s-30.
This performance record is indica¬ empt from present United States years the impact of this tax privi¬
Bermuda
taxes.
tive of public acceptance of the and
EICL,
by lege could be substantial.
virtue
of
its
A
incorporation
in
simple comparison of this
management's ability.
Electronics
International
was
Bermuda, possesses the ability to tremendous tax advantage is most
accumulate and reinvest all earn¬ revealing:
organized to enable the investor
to participate in the burgeoning ings and capital gains. It is the
(1) EICL can plow back into
growth
of
the
established pri¬ Corporation's intention to reinvest the corporation a dollar profit as
vately
held., foreign
electronics any earnings so that through the a 100 cent dollar because there are
companies at an advanced stage compounding thereof it may in¬ no tax deductions under its Ber¬
the
capital value of its muda Charter.
in their development, but prior to crease
their public offering. A real bonus shares. Management projects the
(2) If EICL were a U. S. cor¬
for
the
long range investor in total effect over a 10 year period
poration it would plow back ap¬
Electronics International Capital, of compounding reinvested funds,
proximately 50 cents from a dollar
Ltd.
could
be
the
appreciation tax free, gives this corporation
profit because of the U. S. cor¬
potential in bringing these issues investment leverage of almost 4
poration tax.
to the public. This could be ac¬ to 1 over domestic taxable invest¬
Thus, with EICL, one dollar
complished by a "rights" offering ment companies.
to stockholders of EICL granting
The corporation has no present profit can do the work of two.
A growth stock with a proven
them the option to purchase shares intention
to
declare
dividends,
being offered by the portfolio other than possibly dividends of management, operating in a dy¬
namic industry, with an attractive
its common stock, except in un¬
company;
tax
advantage—this is it—Elec¬
The corporation will invest pri¬ usual circumstances. Under pres¬
tronics International Capital, Ltd.
marily in
established privately ent United States and Bermuda
net

$16,000,000.

It takes little imagination to pro¬

muda

was

receipt

of such stock dividends. The Ber¬

tax laws there is

THE SECURITY I LIKE BEST...

want

ticipate.

—

loaded

personally
look back at

Of Illinois Co.

with

picture

Gebhart to be V.-P.

in CHICAGO, 111,—On Feb5. 2, Harold

par¬

this

Gebhart

President

will

become

The

Illinois

ViceCom¬

Inc., 231 South La Salle St.,

winning rec¬
ord with Electronics Capital Corp.,

pany,

it could

Midwest Stock Exchanges.

management team's

strike

that—"Lightning does

twice"

—

this

time

International

Electronics
Ltd.!

International,

weighing the
advantages against
the
inherent
risk,; the ideas in
favor surely outweigh those op¬
listed

above

posed

the

selection

International

tronics

Elec¬

truly

unique growth stock—Electronics
International
in

the

Capital, Ltd., traded

Over-the-Counter

is "The

the

New

York

and

with

Capital,

A close second look at Electron¬

ics

members

Market,

Customers Brokers
The

Association

Brokers

meeting
Jan. 24
of

will hold

Hear

Customers

educational

Electronic

at the New

Stocks

York

Security Analysts,

Society
William

Street.

Speakers will be G. Fuhrman
Nettles, Shearson, Hammill & Co.;
Felipe Propper, Carl M. Loeb,
Rhoades & Co.; and George D.
Stewart, Lee Higginson Corp.

Security I Like Best"!

Form Amber, Burstein
CORRECTION
In

the

formed with offices at 853 Empire

Boulevard (c/o Lawrence Levine)

been

of V.

Co., Inc.,

to engage

of the New York of¬

Lawrence

address

elected

Osborne

fice

stein, Levine & Co., Inc. has been

Vice-Presi¬

had

dent

the

Chronicle

19 in reporting that Eli Bal-

Jan.

lan

Financial

BROOKLYN, N. Y.—Amber, Bur¬

was

incorrectly

given.

Shearson,

securities business.

Levine, formerly with

Hammill

Co.,

I
h

should be 40 Exchange Place.

President.

The Commercial and Financial Chronicle

(472)

Indications of Current

rThe following statistical tabulations
latest week

Business Activity

week
Latest

IRON

AMERICAN

Indicated

steel

INSTITUTE:

STEEL

AND

—Jan. 28

Week

Steel

oil

Crude
42

Crude

output—daily

(bbls.

average

stills—daily

runs

(bbls.)

average

fuel oil

Distillate

fuel

7,108,771

8,167,000

7,927,000

(bbls.)

(net

28.602,000
2,956,000

2,724,000

14,542,000

13,272,000

12,924,000

6,584,000

6,668,000

6,644,000

200,269,000

♦199,777,000

189,959,000

29,546,000

34,603,000

26,583,000

127,567,000

♦30,714,000
♦133,975,000

AMERICAN

159,534,000

138,539,000

45,290^000

♦45,262,000

48,632,000

51,263,000

output

oil

Refined

(number of cars)
freight received from connections

Revenue

Jan. 14

439,193

(no. of cars)—Jan. 14

466,909

486,059

605,793

426,670

516,210

454,392

554,171

stocks

Jan. 19

State

municipal

and

$372,900,000

158,600,000

203,500,000

263,800,000

285,400,000

169,400,000

156,600,000

177,100,000

194,500,000

100,800,000

28,800,000

86,700,000

90,900,000

68,600,000

S. BUREAU OF MINES):
Bituminous coal and lignite (tons)
(U.

AVERAGE

SYSTEM—1947-49

RESERVE

INDEX- -FEDERAL

SALES

STORE

DEPARTMENT

Jan.14

—

7,985.000

♦6,830,000

7,335,000

8,825,000

Jan,14

429,000

369,000

403,000

440,000

-!:

118

305

—

14,817,000

14,684,000

14,630,000

340

335

252

302

DUN

(per

$66.44

$66.32

$66.41

$31.17

$28.50

Lead

(St. Louis)

Zinc

an. 18

—

tin

26.375c

27.950c

31.325c
12.000c

Commercial

18
18

10.800c

12.000c

13.000c

13.500c

11.500c
26.000c

26.u00c

26.000c

100,750c

100.125c

101.000c

12.500c

13.000c

87.31

81.02

Private

86.65

83.28

Public

91.05

87.32

State

88.67

85.07

Utilities

Public

86.38

86.24

80.93

81.29

77.97

83.91

84.04

83.91

81.17

87.86

87.72

87.86

83.03

88.67

88.54

88.13

85.59

85.85

COMMODITY INDEX

MOODY'S

PAPERBOARD

NATIONAL

—

3.88

3.93

3.81

PAINT AND

4.65

4.66

4.92

4.32

4.34

4.61

4.48

4.51

4.68

4.69

4.72

5.11

5.08

5.36

4.87

4.86

4.87

4.57

4.58

4.57

ACCOUNT

FOR

4.52

4.55

4.74

360.7

359.2

357.0

379.7

4.94

294,387

207,300

246,628

314,647

305,418

167,049

300,066

408,384

333,862

447,667

109.64

109.70

108.80

transactions initiated

Other

Total

Sales

Short

Total

the

470,340

427,470

331,530

31,200

62,100

14,810

367,560

429,660

312,350

880,761

951,513

Dec. 30

67,850

144,540

180,390

86,660

549,844-

1.016.021

649,736

830,126

706,043

717,825

Dec. 30

617,694

1,160,561

Dec. 30

3,541,421

4,189,983

3,601,500

3,119,815

Dec. 30

404,770

603,790

686,300

322,280

LOT

DEALERS

sales

Number

SPECIALISTS

EXCHANGE

(customers'

Number

dealers

(customers'

orders—Customers'

total

1,541.794

1,618,289

1,651,053

$72,605,329

$80,123,202

$75,313,989

Utilities
Banks

$77,675,354

other

Dec. 30

1,784,949

1,972,710

1,748.802

1,346,392

Dec. 30

$72,951,341

$90,520,319

$78,388,464

$63,931,822

Dec. 30

635,290

715,430

586,470

322,730

EXCHANGE
FOR

Total

AND

ACCOUNT

ROUND-LOT

STOCK

MEMBERS

Short

Dec. 30

WHOLESALE

635! 290

7T5~430

586" 4 70

322" 7 30

383,820

382,890

468,600

NEW
=

—

DEPT.

507,600

735,780

948,130

18,748.160

16,325,810

Processed

All

figure.

delivered

16,828,020

19,483,940

17,273,940

average

other

than farm

and

foods

119.9

"119.9

119.5

119.3

89.8

♦89.9

♦88.9

86.6

109.8

"809.8

109.6

3.43

,—

Tel.

Amer.

Tel.)

centers

where

97.3

♦98.2

97.6

92.5

128.2

"128.1

127.9

128.7

introduction

freight from East St. Louis

107

3.53

(24)

3.08

5.73

3.57

5.03

3.75

4.01

3.92

3.93

-2.76

2.97

2.72

3.49

— —

3.60

3.28

3.33

association

November:

Motorcycle Tires

(Number

of):
7,348,162

8,760,476

5,480.437

7,978,594

Implement Tires

(Number

8,461,143

7,093,995

22,492,834

21,816,128

22,016,833

183,113

—

of)—

260,147

178.516

228,728

243,399

924,764

902,055

989,796

and Bus

Tires

(Number of)—
954,902

1,253,830

981,919

1,065,649

1,068,919

1,259.437

3,797,265

3,682,610

3,137,422

——

Motorcycle,
(Number

of)

Truck

Bus

Inner-

—-

—.

2,657,297

;

Rubber

Monthly Investment

exceeds one-half

cent

Plan

pound

fPrime

Western

Zinc

Western Zinc

Net

3,096,993

3,067,067

3,755.874

10,588,702

9,917,968

44,057,000

48,327,000

(Camelback) —

(pounds)
(pounds)

42,271,000

44,630,000

28,856,000

$39,703,700

transactions

42,578,000

19,946,000

$105,503,500

$113,103,000

$290,372,753

market

44,541,000

20,012,000

;

(pounds)

$290,567,171

$290,924,917

di¬

Guaranteed
securities
a.—Month of December:

and

purchases

united

2,999,934

2,920,595

10,859,375

Production

106.1

HI-II Jan!

tNumber of orders not .reported since

109

yield—100

Net sales;.:
jan

-Jan!

105
106

102

(10)—

Inventory

13,650,270

jan

basis

103

203,292

2.93
2.04

Dec.:

5.61

incl.

(200)

rect

foods

commodities

♦Revised

.—

—.

Shipments

13,278,090

products

$2.27

stocks—Month-of December:

(not

Tubes

100):

commodities

Farm

2.10

reserve

federal

(125)

Passenger,

372,180

16,320,420

Commodity Group—
All

the

Production

Dec. 30

2.46

2.11

goods

*$2.30

2.47

Shipments

Dec. 30,

SERIES

$2.32

(25)

treasury

PRICES,

39.8'

;

510,590

Dec. 30

LABOR—(1947-49

41.1

*38.8

1
'.

Inventory

40.6

*39.6

38.2,

Production

TRANSACTIONS

;

*39.2

39.3

Truck

STOCK

sales

99.87
81.19

Inventory

(SHARES):

sales

*97.42
*81.48

38.8
—

goods

manufacturing

Tread

Sales

Other

$92.1(5

97.07

80.60

Inventory

round-lot sales—

Total

♦$90.16

;

Shipments

Dec. 30

purchases by dealers—Number of shares
THE N.

dept.

Production

Dec. 30

Shipments

SALES

$90.02

(15)

Tractor

Sales

90,039

64,763

hours—weekly

—

Inventory

4,306

99,749

130,254

December:

Production

1,350,698

16,655

STOCK

weighted

Industrials

1,535,093

1,765,457

sales

91,163,.
139,272

goods

inc.—Month

7,313

ROUND-LOT

and

estimate

common

Passenger

1,980,023

Other

•old

moody's

rubber

5,858

Round-lot

pounds)

—

Unadjusted——.

Average

1,790.807

TOTAL

2,000

adjusted——_—

Insurance

sales)—

Round-lot sales by dealers—
Number of shares—Total sales

46,302

stocks at end of period (tons

Shipments

sales

35,281

149,277

production—board of gov¬

Seasonally

STOCK

sales

♦110,187

152,211

system—1947-49=100—Month

3,041,473

Dec. 30

Short

110,098

goods

ernors

2,719,193

Dec. 30

value

01"

goods

industrial

3,570,286

short sales—

Dollar

Dec.:

manufacturing

2,883,986

Customers'

All

4,006,441

Customers'

goods

Durable

3,402,651

Dec. 30

Hourly earnings—

2,974,754

Dec. 30

purchases

Month

pounds)
2,000 pounds)

manufacturing

2,569.984

COMMISSION

7,541

tons)

(tons

Nondurable

purchases)—t

value

Dollar

Odd-lot

AND

—SECURITIES

by dealers

205,350

8,357

352

pounds)

Durable

Dec. 30

EXCHANGE

212,891

145,979

(8,817

2,000

earnings

Dec. 30

sales

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

Odd-lot

Railroads

Other sales

tons)

Weekly earnings—
All
manufacturing

619.383

763,140

transactions for account of members—

Sales

labor—Month

297,540

357,860

(net

copper

Nondurable

Dec. 30

purchases

Total

393,490

220,810

326,660

sales

Total round-lot

154,336

126,646

fabricators—

average

2,023,080

28,500

tons)

;

tons)—-.

(tons
to

2,000

factory

1,802,270

2,310,500

292,250

sales

Short

443,810

1,866,690

2.488.020

Dec. 30

Other

Total

428,050
2,059,970

floor—

Sales—

Total

308,420

1,756,390

2,064,810

263,750

purchases

Short
'*

initiated

Refined

2,070,460

Dec. 30

transactions

Other

2,410,890

—Dec. 3o

sales

(tons

Refined

All

2,768,130

—Dec. 30

Other sales
Total

231,000

production in U. S. A.—

Durable

2,267,170

Dec. 30

228,000

869,000

Hours—

floor—

off the

purchases

490,000

40,013

(net

tons)

America

Nondurable

Dec. 30

—:—

(net

Delivered

111.62

Dec. 30

sales

721,000

667,000

mines)—

America

institute—For

Crude

399,021

Dec. 30

Other sales

Central

and

South
Asia

Copper

324,592

of specialists in stocks in which registered—
purchases
—Dec. 30

Total

(bureau

•

Europe

copper

MEM¬

Sales

880,000

175,828

895,000

802,000

•

„

of-November:

North

EXCEPT ODD-LOT DEALERS AND SPECIALISTS

Short

778,000

1,097,000
295,000

Undesignated

Transactions
Total

$1,590,000

exports of Pennsylvania anthracite (net

4.94

4.51

$1,775,000

en¬

municipal

exports

5.09

Jan

3,072,000

$59,556,000

$1,875,000

—

Month

—

7,309,000
$84,463,000

4.78

4.47

INDEX—

100

TRANSACTIONS

ROUND-LOT

BERS,

REPORTER PRICE

DRUG

AVERAGE

1949

at end of period

(tons)

orders

Unfilled

10,453,000

3,579,000

construction

tons )

4.48

4.65

Jan. 14
—Jan. 14
Jan. 14
—Jan. 14

activity

8,736,000

13,443,000

16,683,000

$78,971,000

news record

and

Month)
U.

(tons)

Percentage

coal

ASSOCIATION:

(tons)

Orders received
Production

liabilities

construction

Jan. 24

Group

9,091,000

22,493,000

83.03

Jan. 24
Jan. 24
Jan. 24

Group

$23,822,000

8,211,000

Federal

5.11

Industrials

$28,887,000

1,080

28,104,000

construction

91.34

Jan. 24
Group

1,311

20,199,000

construction-—

89.09

Jan. 24

Railroad

163

111

(000's omitted):

91.34

Jan. 24

_ZIZHZ

OIL,

89.23

Jan. 24

corporate—

Average

228

;

110

engineering

Bonds

Government

1191

478:

1,353

service

gineering

DAILY AVERAGES:

YIELD

number

liabilities

December

86.75

4.32

civil

86.78

Jan. 24
Jan. 24

Group

231.

124

617

245

liabilities

Total

100.000c

11.500c

Jan. 24

Public Utilities Group

BOND

231 >

11.800c

12.000c

Jan- 24

Industrials

number

Construction

11.000c

87.15

Railroad Group

MOODY'S

249,087,000

130

liabilities

.11.000c

Jan. 24
Jan. 24

73,680,000

444,791,000

637

liabilities

11.000c

86.78

Baa

Retail

Jan. 24

146,100,000

231

number

26.450c

——Jan. 24

—

——

126,529,000

121,800,000

$2,026,529,000$ 1,867,646,000$ 1,151,157,000

number

service

Jan. 24

corporate-—.—

Aaa

33.250c

Total

Government Bonds

U. S.

29.600c

DAILY AVERAGES:

MOODY'S BOND PRICES
Average

29.525c

Jan. 18
Jan. 18

(primary pig, 99.5%) at
(New York) at

Aluminum
Straits

—

—.—

28.600c

Jan.
fan.
—— Tan.
Jan.

(delivered) at
(East St. Louis)

tZinc

215,776,000

$18,878,000

—————

—

35,282,000

295,446,000

$41.83

Wholesale

—

309,4'8,000

12,935,000

BRADSTREET,

number

Commercial

$66.44

number

Construction

$31.50

Tan. 18

(New York)

Wholesale

Total

refinery

Export
Lead

$357,061,000

646,746,000

between

QUOTATIONS):

(E. & M. J.

refinery

shipped

——

6.196c

Electrolytic copper—
Domestic

and

FAILURES—DUN

6.196c

Jan. 16

•—

ton)

gross

„

stored

Total

6.196c

Jan.16

(per gross ton)

steel

Scrap

I
2—~~

credits

countries—..

Manufacturing

Jan. 16

METAL PRICES

$401,238,000

BANK

;

INC.—Month of December:

Retail

COMPOSITE PRICES:

Pig iron

$403,342,000

524,122,000

RESERVE

of Dec. 31:

goods

$261,121,000

12,727,000

exchange

$235,1831,000

669,092,000

warehouse

13,398,000

$257,022,000

shipments-

Based

275,945,000

14,347,000

OUT¬

Domestic
Dollar

276,189,000

SYSTEM—Month

FEDERAL

—

17,284,000

14,806,000

GOVERNORS

ACCEPTANCES

YORK—As

Exports
7,

121

15,114,000

129

Jan.19

INDUSTRIAL)

20,634,000

export

I__,

—

BUSINESS

AND

(COMMERCIAL

FAILURES

and

17,000

20,989,000

—

30,355,000

••

Jan.14

Jan. 21

IRON AGE

domestic

Imports

foreign

ELECTRIC INSTITUTE:

EDISON

STANDING

27,439,000

16,000

32,691,000

283,060,000

(barrels)

(000's omitted.)—_

DOLLAR

OF NEW

241,704,000
214,248,000

28,706,000

31,458,000

(barrels)_

Domestic

OUTPUT

COAL

$443,900,000

360,100,000

Jan.19

—

Federal

$623,900,000

185,400,000

Jan. 19

174,400,000

Jan. 19

construction

$359,800,000

Jan.19

construction

Public

237,211,000
209,119,000

17,000

FEDERAL RESERVE

of December

Private

4,841,621

29,715,000

;

BANKERS'

NEWS-RECORD:
Total

imports

DEBITS—BOARD

THE

11,989,319

215,687,000

(barrels)

(barrels),..

consumption

CONSTRUCTION—ENGINEERING

ENGINEERING

CIVIL

output

(barrels)

product

all

6,171,940
4,800,000

(barrels)

BANK

5,836,000

tons)—

INSTITUTE—Month

output

imports

Indicated

Ago

245,419,000
oil

gasoline

Benzol

Crude

Year

Month

4,516,020

(net
—

;■]■

crude

Natural

production (barrels of 42 gal¬

RAILROADS:

freight loaded

Revenue

of that date:

are as

produced

each)

Increase
ASSOCIATION

December

PETROLEUM

Domestic

196,514,000

products

November

domestic

lons

7,127,000

castings

October:

Total

13,667,000

Jan. 13

29,084,000

3,351,000

of steel

AMERICAN

8,302.000

29,333,000

3,097.000

jan. 13

(bbls.)

output

8,342,000

29,158,000

13,

oil

Residual fuel oil

7,132,260

7,164,710

either for the

INSTITUTE:

for

and steel
tons)—Month

Month

7,150.760

STEEL

AND

ingots

Shipments

jan. 13

output (bbls.)
jan.
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
jan.
Kerosene (bbls.) at
Jan.
Distillate fuel oil (bbls.) at
Jan.
Residual

2,717,000

jan. 13

jan

output (bbls.)
output (bbls.)

Kerosene

Not, Avail.

IRON

AMERICAN

of
-Jan. 13

of quotations,

cases

are

Month
95.2

each)

or,

Ago

1,482,000

1,499,000

Jan. 28

.—

INSTITUTE:

condensate

and

gallons

Gasoline

(net tons)

castings

PETROLEUM

production and other figures for the

cover

Dates shown in first column

that date,

Steel

and

ingots

Thursday, January 26, 1961

Latest

Equivalent to—

AMERICAN

Year

Not. Avail.

50.5

51.5

month available.

month ended
Month

Week

capacity)

(per cent

operations

—

states

gross

debt

direct

and

guaranteed—(000's omitted)
As

Dec.

General

Net

30—

funds

balance

debt

Computed

annual

6,411,189
——

rate

—

$283,961,564

—

3.137%'

5,831,025

5,583,376

$284,736,146

$285,341,541

3.143%--

3.300%

Volume

193

Number

6024

The

Commercial and Financial Chronicle

(473)

The Stock Market Outlook
From a Technical Viewpoint
Continued from page 3

old

anyone

enough

read

this

since

article.

Despite

the

fact

that

swings
be somewhat less violent, in¬

may

vestor confidence will still remain

the

major

factor

stock

levels.

ways

felt

The

that

determining

writer

the

has

best

al¬
and

—

probably the only accurate means
of forecasting this investor con¬
fidence

factor

—

the

technical

analysis of the equity market it¬
self. To this end, we maintain an
extensive

library of charts and
giving various data
on

graphs
stock price movements going back
for many years. This work, when
combined

with

analysis, can,
the

most

fundamental

believe, provide

logical approach

the

problem of forecasting the future
of

course

then,

side objectives have been reached
and
that
downtrends
in
effect

stock

look

market

technical

prices.

the

Let

current

terms

barometers

versed

the

mentioned

base

rally

cycle theory,

longer term base
indicates

least

the

less well

Theory, but
probably more valuable from a
forecasting point of view. This is
Elliott's

Wave

into

cycles

Principle.

divides

major

five

the direction of the
and

two

cyclical

This
market

three

waves,

primary trend

intermediate

contra-

waves.

Under

the

call

market

theory,

1949

the

started

stock

major

five-wave upward cycle. This up¬
ward

cycle

equal

the

magnitude

77-year

cycle

from

1852 to

1929 that coincided with

period

the

tremendous

American

major
of

This

cycle

upward

will

growth

economy.

reached

this

consist

overextensions

trend.

Under

the

first

the

this

theory,
is probably still

the stock market
in

this

wave

upward

cycle.
first

161

trials,

started

wave

the

should

and

Dow-Jones

consist of five sub

1949

Indus¬

itself

also

From

waves.

technical

viewpoint

probably

completed

four

this

waves
now

This

fifth

the

movement

ability
its

fwhether

major

Octo¬

the

first

the

fifth

sec¬

waveband

ondary
at the

reached their peaks

wave

January 1960 high of 688.21

the

^second

market
down

now

the

of the major

wave

pattern.

Early
V Studies

action
my

leads

1961

and

market

the

fifth

secondary

wave

are not yet
completed and that the
Industrial average will reach new

high territory in late 1961

early

1962.

sideration

decisions
One

if
are

valid

going

these

con¬

the

that

made.

2,000-

chart library. A point and figure
chart on the Dow-Jones Indus¬
trial

showing

average,

tribution

formed

area

The

these
low

was

been

October,

1960,

average

has

will

market.

and

the

pect the

since

Industrial
to

technical

our

further rise

the

rise

mentals of
and

the

loss

involved

advanced

pared

patterns as
rather modest

the

potentials,

would

new

purchases

fined

that

unexploited
good value.
dicates

the

that

and

that

still

con¬

represent

action

"glamor"

the leaders of

were

that

Technical

in¬

issues

1960 will

replaced by some of the more
cyclical groups.
We also expect
upward price movements in se¬

lected

issues

that

slowly building
tractive

been

technical

patterns over a
The issues listed

period of time.
below

have

extremely at¬

have

done

little

very

selling
at
reasonable
price-toearnings ratios and are yielding
to

risk

5%.

over

these

tively

The

issues

small

downside

compared

rela¬

appears

the

general market and the upside

po¬

reverse

low of the

late

very

Names

the

includes

group

1960.

ex¬

will be

year

the

oreign

Yield

operations

5.4%.

(65), with

priced

forized

Division,
"kicker"

added

vision

entering

18%

unimpressive,
yields

(31)
other

the

from

are

contained
a

Principle,

remembered that

will

beet

than

Great

such

expect

mentioned

pre¬

was

further increase

bring

upturn
as

correc¬

investor

now at relatively high
is, therefore, unreason¬

confidence

major

the

about

stock

case

prices,
1953

1956, or 1957 to 1960. This type of
thinking also seems to favor the
idea

over a

This

which

will

broad

market

trading

have

which
its

period of time.

market, however, will

doubtedly

many

will

un¬

character¬

differentiate

predecessors.

One

such

characteristic will undoubtedly be
extreme

ready

selectivity.

witnessed,

1957 de¬

example of how selectiv¬
work.
Although
this

can

decline

We have al¬

in the

was

recent

one

history, it

the
was

sharpest

possible,

throughout the period, to remain
fully invested in stocks in groups
such

drugs,

grocery

Western

should

and

think

that

salesmen miss opportunities
they don't try. They say,
"What's the use, he won't do busi¬
with me."

ness
—no

And they are right
do
business with

will

one

if you don't give them

you

portunity

so.

ence

bear

out

ment.

the

truth

this

state¬

could

City

Hall

near

office.

sizable

not

pieces.

attractive

very

small town located

mortgage and
split up into small

The interest rate

was

very

exceptional and the mortgage had
made

obligation
majority vote

This

the

attractive

was

tax-free paper that you don't find

often, with an interest rate
that, as I said, was very generous.
Anyone who locked into the secu¬
rity would have no fault to find
very

with

it.

for

small

satisfied, with

only

was

individual,

institution

vestment.

that

could

short-term

There

was

inducement for

date.

in¬

refunding at

Problem

buyer who could
The

offering

entire

find

—

the

our

same

Naturally there

first with the order and the entire
force
with

man

got

busy.

firm

The

order

such

firsi

got it for

It is not easy

buyer for

(35), recently
higher earnings

sharply

quarter of the fis¬

World

demand

major

two

for

the

products,

phosphate and potash, is growing
The company has large

strongly.

to find

investment,

potash

deposits

Swift

meat

packing

world

Co.

in Saskatchewan.

(47),

largest
in

company

should

and

the

benefit

the
from

chains,

modernization

Other

this

attractive

indus¬

situations

where

yield is low but growth po¬
tential is good, include American
Potash

Chemical

Northern

Paper

(44),

Great

Electric

(54),

Battery

Storage

Associates

(55), Microwave
(37), National Aviation

(28), Pitney Bowes (41) and U. S.
Borax

(42). —7

addition

above,

the

issues

listed

the

following also appear
long-term uptrends and

portation; General Mills; General
Precision E; Georgia Pacific Ply¬
wood; Gerber Products; Granite

City Steel; Great Western Finan¬
cial; Great Western Sugar.
Haveg

Powder;

Newport;

American

Broadcasting

Para¬

American Chicle; Ameri¬
can
Metal Climax; American Op¬
tical; American Smelting & Re¬
mount;

fining;

American

Stores;

Viscose; Arkansas
Gas; Audio Devices.
can

Ameri¬

Louisiana

Holly Sugar; Ideal Ce¬
Insurance Co. of N. A.; In¬
ternational
Telephone
&
Tele¬

Deere

Co.;

Paso

Natural

Gas; ExCello; First Charter Fi¬
nancial; Food Machinery & Chem¬
icals;

Freeport

Corp;;

General

Sulphur;

man

Garret

American Trans-

was

away

struck out the^e.

Magnavox

Co.; Marquette Ce¬
Martin Company; McCall

Corp.;

Mclntyre Porcupine; MeIron; Mississippi River Fuel;
Newmont Mining; North Ameri¬

sabi

Aviation; Northern Natural
Northern Pacific Railway;
Northrop Corp.

can

Gas;

Gas

Royal Dutch.

didn't

with

Line

RR.;

Sea¬

board

Finance; Singer Manufac¬
turing; Southern California Edi¬
Southern Natural Gas; Stand¬

want

bothered

possible reinvestment in a
or
two. Another could use

year

half

but

not all, he didn't
anything to buy it.
I went through the list and made
two
long distance calls but by
want

o'clock in the evening I was
ready to call it quits and let

about

sell

else obtain

someone

ment for

fine invest¬

of hiS clients.

one

But You Try Again
On

inactive list I had kept

name

for years.
and then

not

about

few bonds

day he told

that

give busine^ to

one

He did not want to break up

man.

business

for

I sold him
one

he could only
his

has

who

man

business with

done

mind

the

and

had

been

man

had

servicing

his

account for many years.

They had
developed a close friendship. So
I did the gracious thing, and al¬
though I met him occasionally at
social

affairs
and
at
religious
services, I did not try to do busi¬
ness

with him. This

the

best

is not always

procedure,

but

this

instance I knew the

circumstances,
that

understood

said "No" he didn't
I

got

the next

Kentucky;

Sterling

Sulphur;
Thompson-Ramo
Wooldridge;
Twentieth-CenturyFox.

the

Lines; United Art¬
ists; United Biscuit; United Shoe
Machinery; Universal Oil Prod¬
ucts; Warner Bros. Pictures; Wil¬
son
&
Co.; Winn-Dixie Stores;
Woodridge; Twentieth - Century Jr.; Zenith Radio.

around

call

was

of
01

York

the

New
inew
citv.

Brokers at

the

York
i urn
Jan.

Financial

rmaauai

is.

i£6i.

mortgage

yet,

pretty strong

some

long.

very

was

the

offered

deal.

him

narily

market.

also

something that ordi¬
not find in the
luck

happened, he
early and I told

desk

that

had

special that after
him

wanted
was

making

it.

was

inter¬

that

had

and

also

idea

that

might

investment.
the order and the sale

short-term

closed.

was

do not believe that

knock

with

unable

set

case

himself

business

should

years

about

available

He gave me

hear

happened

the

liked

something

all these

cordial and when I

very

funds

the

him the facts he

gave

realized

offended if I

could

his

him

decided

friend who had been in¬
years.
I knew he
wealthy man and he could

that he could not be

time when I might

for four

handle

But

trying

people
due to

circumstances,

here.

salesman,

out

don't

who
some

was

give

the
on

"four-star" account if you can't

connect

this

year.

Stay

friendly basis, and try again next
year.

before

Mr. Tabell

Customer's

room
npw

had

no one

active

address

nine

about

morning and
were

"Maybe."

mean

office

man

When he

indications that it wasn't going to

are

Air

this

sincere.

absolutely

was

Gulf

meetmg
meeting

ested.

Air

Seaboard

Association

cruise,

Another wanted

something non-callable; he would

was

Oklahoma

AnaivfitK.

are

have bought if he could have held
the paper for 10 years or more.

that this

ploration.

♦An

that

fine little town.

but there

&
Johnson;
Kennecott
Copper; Kern County Land; Lone
Star
Gas; Louisiana Land Ex¬

United

My list consisted of about six pos¬
sible buyers for such a deal.
One

Johnson

Oil

have

this tax free mortgage on.

the City Hall ol

sold the tax-free

ard

should

stocks

common

ments

Drug, Inc.; Tennessee Corp.; Texas

Barber Oil; BestwaR Gypsum;
Boeing Airplane; C I T Financial;
Carnation
Co.;
Caterpillar
Tractor; Central & South West;
Chicago
Pneumatic
Tool;
City
Products;. Columbia Pictures; Co¬
lumbian
Carbon;. Consolidated
Mining & Smelting; Consolidated
Natural Gas; Crown Cork & Seal.

salesman

graph; Jewel Tea; Johns Manville;

son;

the

speculative to such prime invest¬

ment;

and

Industries; Hercules
Hertz
Corp.;
Heyden

Electric; Pacific
Gas & Electric; Panhandle Eastern
should be considered as part of
an
investment portfolio, depend¬ Pipeline; Penney, J. C.; Phillips
ing on quality and yield require¬ Petroleum; Pillsbury Mills; Pitts¬
burgh Plate Glass; Richfield Oil;
ments:
to

Every

healthy rivalry to get there

his customer.

Individ¬

confidence

I went to work.

the

released to

was

organization

sales

had

firm would be the best prospects,

the

it.

use

time to everyone.
a

who

call

protection and the high rate of
interest
would
certainly
offer

early

check-up as to
aspects of the
they would wish to
a

legal

seven

However,

suitable

was

uals

from

bought a
mortgage on the
a

various

list of people who buy different
types of investments. This ranges

You Try and You Do

was

it without

buy
the

have time to consider it.

of perseverance.

a
single investment.
As I
stated, most institutions would not

Sometimes necessity is the

mother

into

this

ever

especially if the sum involved is
nearly $200,000 that has to be put

situation,

made clear to me, an
experi¬
of my own last week should

was

AIL"

op¬

International Min¬

try.

sharp

Furthermore,

able

among

Chemical

company's

either in

are

which began in
1949. Such phases usually take the
form of a fairly lengthy consolida¬

and

because

Fuel

appeal because

producer

sugar

released

the

upswing

levels.

most

fully participate in the expanding
market in the United States.

will, before too long, enter the
second or correctionary phase of a

viously, is

Gas

holdings of Norfolk &
and
Algonquin
Gas

Western

rather

(39)

of its large

by a
possible high
of 750. Going back for a moment

major

paper

National

has

is 5.0%.

present

that

low of 550-525 and

Elliott's

Clupak Di¬

future

over

reasons

erals

long period which will

possibly

very

extensible

Eastern

Yield

how¬

Try and Lose Than Never

sugar

longer range, my

would

guess

its

becoming a packaging company,
and while its past record has been

the

percentage rise of

the

there

but

Diamond

process.

year.

Arrow

the second

For

appears

its

and

cal

15%

Cluett

line of men's apparel and its San¬

lor

only

large.
Peabody

are

yield of 4.2%

reasonably

The

year.

general market,

Anderson

(37), which has a world¬
wide
operation in cotton, veg¬
etable
oils, and
food
products.

win!

you

free-holders.

This

many

town

Strong Issues

Clayton

Sometimes

been

Sugar (31) is the largest domestic

1961

BY JOHN DUTTON

To Have Tried

mar-

ketwise for several years, but are

It's Better

gain

relatively

are

com¬

appear

should

issues

stage

market

750 would be

earnings and dividends

risk

purchases at this

will be of rather modest
proportions. An advance to 725-

level

Transmission.

ever,

high

the market in terms of the funda¬

pattern

foods, tobaccos, etc., and actually
recent high
of 639.17. The point show
gains rather than losses.
and figure charts of
This type of action will undoubt¬
many indL
vidual stocks indicate that down¬ edly
continue during the wide

CORNER

importance.

Considering

is probable that

reached earlv in the year, and

ity

back

line

effect

time

the

late

be of extreme

interesting.

market

reached

was

rallied

majority

the

cline,

605, the lowest 550.

564.23

now

downtrend

indications point to

dis¬

1960, gave various
downside objectives. The highest
of

which

High to Be of Modest Proportions

the

1959-early

index

April, 1959.

from

media

extensive

without

advanced

the:

has

point-and-figure charts of which
an

meas¬

turned down at that time has

istics

maintain

These

upside volume

breadth

penetrated

reached

attempt to

averages

ever,

investment

technical

SECURITY SALESMAN'S

prob¬

pressure or market breadth. How¬

The averages
may do nothing, but moves in in¬
dividual stocks up and down may

studies

the

accompanying rise in. buyiiig

any

range

into

market

things

devices

taken

higher

even

accumulation, downside volume
or
liquidation, advances and de¬
clines, etc. These ratios turned
highly unfavorable in 1959 when

contained

potential

iq October.

studies

Although Elliott's Wave Prin¬
ciple is important, other technical
must

the

confidence factor,

conclusion, in
opinion, that both first primary

wave

could

indicated 725-

credence

such

ure

tion.

1962

technical

correction

tion

Expects New High Late

Febru¬

occurs,

now

point

breadth

best

both

not

the

long-term

that

low

are

ber 1957 at 416.15 in the averages.
The important question
is now

and

lend

levels.

phase.

back

Breadth-of-the-market
also

sub

and

phase started

have

fifth and final

would

whatever high

if it

indicate

part

the

over

next several years.

tential is above average.

high

This
at

and

the

new

waves,
three
of these
waves
will be advancing phases
and
two
will
be
corrections of

main

the

objective.

January

nature,

broaden

action

It is possible that

ary.

600

the lower

upside

625-610 level from

five

temporary

level.

correction

the

advance

technical

for

The

639.17, the indus¬

640-660

Normal

the

this

around

725-750

where

area

supply.

trials had reached
of

term

750.

known than the Dow

principle

640-660

high

uptrend.

shorter

overhead

level

recent

Indus¬
low

during 1960 in the
indicates an initial

the

re¬

many

its

now

of'the

area

there

that the

reached

formed

600-565

One of the most useful technical

trend

conclusion

measure

been

upward. This leads

level than the

Elliott's Wave Principle

tools

now

October and is
A

have

the

average

base

above.

the

trial

1959

and

issues

us,

equity

some

early

trading range I envision

Things

you

may

change by then,

also may come across an

investment that is just too attracuiw->

nr»

tive for him to pass up.

(474)

The Commercial and Financial Chronicle

Through Continental Illinois National's

BANK AND INSURANCE

STOCKS

activities

Continental

the

was

Check-Credit

first

plan.

leading

Established

Correspondent
U. S. and foreign banks.
Continental is

TR)

CONTINENTAL ILLINOIS NAT'L BK. &

Progress
i

toward

largest bank

establishing
achieved

was

Continental

tnis

week

(CHICAGO)

Illinois

when

its

Chicago's

stockholders

1959.

effective

agency

May 26,

merger is scheduled to become
Continental will exchange 1.05 shares of

its stock for each of

City National's 450,000 presently outstanding,
bringing total shares outstanding for the combined bank to
3,472,500.
Besides an immediate gain in deposits, Continental

lending

complementary combination,
operating economies, and broader and

power,

flexible

at this time to favor

large

National holders (the bid price went up 34% from
high bid market price prior to announcement), terms agreed
probably can be justified when due recognition is given to

Continental

Chicago

long

not

there

funds

income

66%

3.3%

stock

dividends

have

$4.00

shares.

is obtained

dividend

the

rate

recent

continued

price

mean

the

121,

this

issue

offers

bank

stock

investors

bank commitment with

soundly

past record

serving

continue

its

unless

larger

lead

average

moded

the

which

only

within its borders.

permits

Our Reporter on

Texas

Relative to

banks

and

about

50%

State

tant

be will continue to take

the

overcome

branch

the

present

banking whatever.

number

unit

commercial banks of the nation.

the

H ■ >»«>••

Near

weekly

ASSETS—

Dec. 31, 1960

Cash
U. S.

S584.3
Gov'ts

527.5

OUier securities

1959

18.3

1958

27.8%

20.5

Other

9.3

8.7

5.2

47.4

37.3

2.4

1.3

100.0%

assets

$2,886.3

1.1

$2,722.7

100.0,%

Capital

lunds

$285.3

9.9%

2,481.7

(Time

deposits)

10.0%

86.0

(392)

has

9.3%

89.4

(14)

1.1

1.2

Other

88.2

3.0

1.7

liabilities

$2,886.3

100.0%

$2,722.7

$2,858.0

Book

% Earned

Divid.

Value

materialize.

thrust

maturity

would

when,

bring about

the

debt

favorable

are

terest

which

recently in
Governments
appears
ground

reason

the

revival

the

most

rates

excesses

market

given

not

will

in the

for

the

minor

psychology.

the

commitments.

there is

than modest

However,

are

Gordon O. Larson, Presi¬

Schuchert

Mr.

with

was

$4.00

$95.09

1959

8.53

4.00

90.73

3.90

87.09

Ratio

9.6

8.10

Price Range

10.8%

1958

Avg. P/E

prevent

With Pacific Coast Sees.

sentiment

inflation

fears

■

•'

'■

■'

LOS

A fast turn about in

9.5
9.5

The

Leonard

with

has

Pacific

become
Coast

141-111

14.8

financial

115-

11.8

cate

82-

9.9

wide

movements

markets

1957

7.70

3.60

82.63

1956

6.90

3.45

78.71

9.0

83-

11.6

among

3.00

75.47

7.9

83-

13.2

appear

difference of

the

indi¬

1054 Broxton St.

small or
nonexistent, which would not be
very

with

First

was

California

Co.

Y0DR PRIME SOURCE FOR

economic

1955

5.85
*

Adjusted for stock

dividends.

and

advancing
would

early

cession

NATIONAL AND GR1NDLAYS

I960

Head

Office:

26, BISHOPS GATE,
London

BANK STOCKS

LONDON, E.C.8.

Branches

54
13

Bulletin

Members

120

New

York

American

Stock

Exchange

BROADWAY, NEW YORK 5, N. Y.
Telephone: BArclay 7-3500
Bell

Teletype NY 1-1248-49

Specialists in Bank Stocks

ST. JAMES'S

Request

Laird, Bissell 8 Meeds
Members

PARLIAMENT STREET, S.W.I.

Bankers to the

in
Branches

UGANDA, ADEN,

in:

the

other

hand,

movement

interest

still

shared
the

been

INDIA, PAKISTAN, CEYLON, BURMA,
KENYA, TANGANYIKA, ZANZIBAR,

sure,

SOMALI REPUBLIC,

longer

which

SOLD

QUOTED

any

not

great extent

trend

which

-new

has

much in evidence in other

Treasury
.

term

have

heaw demand for the most liquid

RHODESIA

BOUGHT

for Banks, Brokers, Institutions

decline.

the

bonds

far to

favorable

the

fixed income paying issues. There
has
been,
nonetheless,
a
very

NORTHERN AND SOUTHERN

all

re¬

bearing obligations, non-Federals in particular,
would appear to be predicting that
the cost of obtaining funds is on
the way down, since the yield of
corporate and municipal obliga¬
To

KENYA, UGANDA, ZANZIBAR

the

upward

Government

Government in: ADEN,

stock
forecast

go¬

strong

tions

SQUARE, S.W.I.

business

through.

prices of

common
seem

country has been

the

11 N. Y. CITY

end

the

ing

BANK LIMITED

COMPARISON & ANALYSIS

opinion

investors about the future
picture. The ver^ active

market

are

securities,

namely

bills

being bought by those

</nc.
39

Dlgby 4-2370

"• v

"A*

'.A

„associated

Securities

Sentiment Varies

recent

ANGELES, Calif.—Laurence

rowings by the Treasury since the
be

.•

(Special to The Financial Chronicle)

shortage of these bonds

Investor

12.0

133-107"

First

Pennington Co.

Another

bullish

deficit, would

engag¬

and Joseph S. Schuchert,
Secretary - Treasurer.
Mr.
Price was formerly with Graham
& Co. and Bruno-Lenchner, Inc.

hardening in in¬

equity market might be
of

business from

Jr.,

strong upward
pattern,
likely
eventually

economy.

securities

dent;

Whitehall

—

dent; William J. Price, Vice-Presi¬

order

Pa.

offices at 4 Gateway Center. Offi¬
cers

the economy would cut down bor¬

being termed

concerned.

ing in

business

some

Germany

Securities ^Corporation

course
of events, then prices of
equities will most likely continue
to advance, and Government bor¬
rowings of funds and the forecast

deficits

West

3%%.;';, With interest

yet.

Approx. Bid

Book Value

$10.02

1960__

mone¬

Whitehall Securities

going to be right about the future

budget

PITTSBURGH,

stock buyers are

common

likely

prevailing
again

If the

rate

—-

Earnings

—

have

pattern,

undertaking.

professional

been

sized

100.0%
$2,674.3

Selected Per Share Statistics*.
Net oper.

Year

Case for Equities

1.0

that the

most

extend

The

extent of late since investors
have been in this area with what

100.0%
Total

measures

if not end it
the favorable

,rates on the decline in free world
areas, this will not be an unfav¬
orable force as far as the gold pic¬
ture and the position of the dollar

nomic horizon has cleared.

obtain

some

31.1

liabilities

89.5

A (ii)

Reserves

long-term

9.1%

87.7

(16)

conditions

such

The

$2,674.4'

$2,858.0

for

LIABILITIES—

Deposits

this

will

investors who appear to want a
safe haven for funds until the eco¬

the

means

there

efforts

and

1.6

100.0%

order

of the Government

43.5

70.3

also,

although
be

6.4

49.8

100.0%
Total

should

26.7 A

267.7

assets

bills

time at least the pattern which has
been
used
in
the
past for the

22. *%

28.6

bell¬

obtaining
of
new "money.
The
impending refunding operation

1,436.5

Loans

1957

obliga¬

the

Treasury will be following for

■

22.1%

20.2%

needed funds. This

Dec. 31,

31,

offerings

Government

of Condition

Dec.

Government

continue

wethers of the Treasury securities
market in spite of the increased

top

(In Millions of Dollars)

term

tions

350
The present prohibition of branch
among

Dec. 31,

CHIPPENDALE, JR.

offices, which dates back to 1923, is restricting the growth and
development of Chicago in the financial field.
Statement

from

banks

by Continental-City

representation

JOHN

is well below

coverage

accounted for

down,

One

bank

the

out¬

Outside of the Chicago area, the impor¬

has

this

slow

well be the acceleration

may

population,

will be

Illinois

outflow

entirely.

$11.2

A and First National Bank.

Outflow

factors in the international

which leads to inconvenience for the public. In Chicago,
billion in bank deposits held by the 77 commercial
banks, approximately 70% of this total are held by the top six
the

Gold

of gold continues
proportions and there is
question that the powers that

The

average,

com¬

tary situation is the recent cut in

people of Illinois to

second

bonds

made

are

in sizable

for

legislation

Illinois

long-term

rates

markets.

provide a competitive banking bal¬
Midwest region. First National Bank will

significant fundamental result
by

opera¬

point where investors will have a
real interest in such obligations.
It
is
evident
that
the
coming
months will tell something about
what is going to be the course of
events in the money and capital

City National respectively.

effort

selling

these

put

money or

refunding

petitive with non-Federal rates or
the capital market is built up to a

only to Continental; about 23% and 20% of total deposits
represented by correspondent bank balances for Continental
A

new

favorable

bank will

the

question but what
is not going to

tions

second
are

Government

be able to raise

market appreciation.

having more savings deposits, while Con¬
tinental Illinois will strengthen its leading correspondent banking
position. As a percentage of total deposits, City National ranks

and

through the sale of the

The

combined

for

area,

amounts

small

over

conservative

above

short-term

the

There

the

3,000,000 shares presently outstanding.
With strong reinvestment of
earnings, lower reserve require¬
ments, and the broadened lending activity under development,
Chicago

distant issues.

paid

yield

borrow

quarters

some

modest

picked

the

money

with

reserves

been

Gov¬

the

to rise
In order to do
this the Treasury will most likely
obtain
the
greater part of this

including 20% in 1956 and 11.1% in 1958, with the

established
of

Several

reserves.

that

have

time goes along in order
a
deficit which is ex¬

pected

from

came

will

to,sizable figures.

Government

down a relatively
earnings.
For 1960 and
increased 17.4% and 5.3%

operating

belief

the

finance

operating

earnings

1960

$66.76.

The
ance

total

against these considerations,

ernment

loans, 20% from income from securities, and 14% from

loss

number

reports,
billion; deposits, $2,874 billion; (savings deposits,
$355 million); and total loans, $1.6 billion. City National's per
share earnings for 1960 increased 13% to $8.02 and book value
to

been able to bring

net

operating

the years,

over

will total $3,293

rose

Deficit Financing

Prospective

$3.33, and undisclosed

security

become the nation's ninth largest bank; presently the Bank ranks
eleventh.
Combined resources, based on 1960 year-end

and

other income. Book value is understated due to bad debt
of $21.33 a share, free
general reserves of

only will supplant First National Bank of
the largest commercial bank in the Midwest, it will

gross

per

interest

marketability of the closely held City National stock
competing bid for acquisition of City National by First
National Bank of Chicago. The combined bank will have a history
dating back to 1857, since it will operate under Continental's
a

charter.

percent

1959

limited

and

1960

w^uld

bullish'

there

and long-term rates go down.

Although the bank's growth has stagnated
expansion should be aided in 1961 by reductions
deposit reserve requirements, from 18% at the begin¬

respectively.

upon

the

taken in

unless

too

that short-term rates would

Active in international

were

business

exactly

going to be
change in the monetary pattern

years,

demand

not

revival

fast

3,000

ning of 1960 to 16.5% at the beginning of 1961.

present City
the

than

fixed income

are

bonds

Continental Illinois has
may appear

reduced.

were

in recent
in

facilities.

Although the share exchange

extend

important to

for

Securities losses

holdings

increased

activities

introduce

are

During 1960, Continental opened foreign

year.

shareholders should benefit from indicated advantages arising from

competitive strength,

bank

activities

of five

one

market

facilities in New York.

approval, the

1961.

Chicago

trust

far

concerned, especially
Government obligations,
However, higher interest rates
that would most likely accompany

exchange trading
banking, the Con¬
tinental's correspondent network of its established
Foreign Depart¬
ment is being enhanced by tbe St. Lawrence
Seaway development.
In 1960, assets increased 6% to
$2,886 million; total deposits
gained 4% and loans were up 11.4% to $1,436 million.
Time
deposits continued their faster rate of growth, up 13% for the

and

those of City National Bank and Trust
Company of Chicago
ratified the proposed merger terms announced in December. Sub¬

ject to Federal

primary

CO.

issues

major commercial banks providing
obligations ' of the Federal Government.
Its growing municipal bond operations include expanded services
through the New York bond facilities that were established in

Bank Stocks

—

unfavorable

office, diversified

one

conducted. In recent years consumer or retail bank¬

are

operations.

Week

Thursday, January 26, 1961

ing services have been developed more intensively; special check¬
ing accounts and in-plant banking services have been established.

BY LEO I. BVRRINGTON

This

Broadway, New York 6, N. Y.
Teletype No. N.Y. 1-5237

Co.,

formerly

Volume

193,, Number 6024

The

Commercial and Financial Chronicle

Securities

Now

(475)

* INDICATES

Registration

inations of $1,000 and $500 each.
NOTE—Because

Proceeds

large number of issues
awaiting processing by the SEC, it is becoming
increasingly difficult to predict offering dates
with a high degree of
accuracy. The dates shown
the

index

and

the

accompanying detailed
items reflect the expectations of the underwriter
but are not, in general, to be considered as firm

stock.

offering dates.

—

Price—$108

porate purposes.
—

Rauscher,

statement

Acme Missiles & Construction

Jan.

1961

filed

stock.

common

Business—The

Corp.

30,000 outstanding

Price

—

construction

class

supplied by amendment.

and

installation

missile

launching platforms.

Office

Underwriter—None.

Electronics

ACR

Z/i/ /"'

■

75,000

■.,:/ :/v//';

Corp.

withdrawn

stock,

Jan. 23.

share.

Business—The

phosphate

York

mineral

business

Proceeds
For salaries of additional
personnel,
liquidation of debt, research, and the balance for work¬
ing capital. Office—551 W. 22nd Street, New York City.
Underwriter—Robert Edelstein Co., Inc., New York City.
—

A-Drive

Auio

Leasing System, Inc.
Jam 19, 1961 filed 100,0U0 shares of class A
stock, of
which 75,000 are to be offered for public sale
by the
and 25,000 shares, being outstanding stock, by
holders thereof. Price—$10 per share. Busi¬

company

the present

ness—The company is engaged in the business of leasing
automobiles and trucks for periods of over one year.
Proceeds—To repay loans; open new offices in Philadel¬

phia, Pa., and New Haven, Conn.; lease and equip a large
in New York City and lease additional trucks.

garage

Office—1616 Northern

Boulevard, Manhasset, N. Y. Un¬
Darlington & Grimm, New York City
(managing). Offering—Expected in early March.

derwriter—Hill,
Adler

Aug.

Built

29,

(letter of notification)

1960

100,000 shares of
(par 10 cents). Price—$3 per share. Pro¬
For acquisition and development of land and

—

Proceeds

operating capital. Office—1201 W. 66th St., Hialeah, Fla.
Underwriter—H. P. Black & Co., Washingtdn, D. C.
Investment Management Corp.
13,1961 filed 300,000 shares of common stock. Price—$3.50 per share. Business—The company was organ¬
ized

October, 1960 to operate

service and

insurance home of¬
management company with the related
an

secondary purpose of owning investments in entities en¬
gaged in the insurance business.
Proceeds—The com¬
will

the

estimated

proceeds

$851,895 as a
acquisition of interests in life insurance;
for furniture and fixtures; for the establishment of a
sales organization and for working capital.
Office—The
pany

use

Rector

Building,

Little

Rock, Ark. Underwriter—Ad¬
Underwriters, Inc., Little Rock, Ark. //

vanced

Aerosol

Dec.

Techniques, Inc. (2/20-24)
28, I960 filed 125,000 shares of common stock. Price

—$4

per

and

share." Business

—

The company manufactures

packages

cosmetic, household, industrial, pharma¬
ceutical, medicinal, dental and veterinary aerosol prod¬
ucts for other concerns for sale by them under their own

I
I

brand

111

Proceeds—For

names.

Stilliman

Michael

working

Ave., Bridgeport,

Kletz

Conn.

capital.

Citizens
(The

stock.

Price—$25

Co., Inc., New York City

—

(manag¬

this

Insurance

life

insurance

capital and surplus. Office

and

allied

lines

class

stock

(par

(J.

Steel

notification) 62,300 shares of
common stock
(par 10 cents). Price — $2.20 per share.
Proceeds—To go to selling stockholders. Addres:—Clear¬
water, Fla. Underwriters—French & Crawford, Inc., At¬
lanta, Ga.; Powell, Kistler & Co., Fayetteville, N. C.;
Clark, Landstreet & Kirkpatrick, Inc., Nashville, Tenn.;
Courts & Co., and Clement A. Evans & Co., Inc., At¬
lanta, Ga.
Alaska
Dec

19,

(letter

Creamery Products, Inc.
(letter of notification)

1860

stock

common

—

(par $1). Price—$2.25 per share. Proceeds

St.

1960

30,

common

stock

ceeds—For
42nd

Inc.

general

Price—$3

corporate

shares of
share. Pro¬

100,000
per

Office—60

purposes.

Street, New York 17, N. Y. Underwriter

—

due

units

stock

subordinated debentures,

subscription by holders of class A
of

Union
one

the basis of

Texas

Natural

Gas

Homes,

Inc.

Jan. 24, 1961 filed 172,500 shares of common stock.
be supplied by amendment. Proceeds—To be

Price
used
subsidiary to finance
Summit St., Niles, O.

—To

the

future

company's
credit

Underwriter

sales.
—

wholly-owned
Office
H.

—

931

Walker

Co.,

Ne\^ York City

(managing).
_■* Alkon
Dec.

29,

Industries,
(letter

1960

Inc. (1/30)
of notification)

and

Corp.,

$100 debenture and five common

50,000

capital and general corporate purposes.

Avenue, Long Branch, N. J.
Co., New York, N. Y.
-k Allen

Steen

Acceptance

Office—400 Mor¬
Underwriter—Meade &

unit for each 70 shares of class

one

Co.

stock

Union Texas.

Business

—

Price—To

The

company

was

Delaware law on Aug. 15, 1960 and
later entered into an agreement with Union Texas and
others to purchase the properties of Anderson-Prichard
organized

Oil

Corp.,

for

total

Anderson-Prichard
use

the

proceeds,

Houston.

its

company

$12,000,000 to be
purchase the business and prop¬

Anderson-Prichard.
Texas.

plus

Proceeds—The

together with

borrowed from banks, to
erties

$25,200,000

liabilities.

Office—811 Rusk Avenue,

Underwriters—Carl

Loeb,

Rhoades

Smith, Barney & Co., both of New York
City. Offering—Expected sometime in March.
&

Co.,

and

Dec.

Traffic

Clubs

Insurance Corp.

Co.)

Inc.)

$900,000

$258,000

—Common
$463,125

Co.)

Pont

1960, filed 250,000 shares of common stock
on

.Common

70,000

Co.)

.Common
&

90,000

Co.)

Corp.;

Homes,
&

Units

Gleich

Roman

Inc.

Harrison

and

Co.)

$810,000

—.^..Common
Kletz

Underwater Storage,

(par

page

$600,000

& Co.)

Inc

Ahalt

—.Units

Inc

Co.$

(Searight,

and

Co.

$612,500

...Common

O'Connor.

$300,000

Inc.)

Universal Electronics Laboratories Corp...Common

Life

$300,000

(Tuesday)

January 31

Co.

Assurance

of Pennsylvania

Parker

(Auchincloss,

Redpath)

—Capital
shares

60,000

Common

Mortgage Guaranty Insurance Corp
(Bache

Co.)

155,000

National Equipment Rental, Ltd
(Offering to stockholders—Burnham

..Common
Co.)

136,000 shares

(Wednesday)

Capitol Associated Products, Inc
(Thompson

Tube

Electronic

Common

$300,000

—(\

Co.)

100,000

Common

.....Units

Inc

Instruments,

Mandel & Longstreth)

(Warner, Jennings,

Co.)

Corp

(Harrison

Elion

60,000 units

—Common

Freoplex, Inc.
(Alessandrini

$300,000

Inc.)

Co.,

—...Bonds

Kentucky & Indiana Terminal RR
(Bids

Resisto

(Offering

Co.)

$372,050

Co.,

Inc.)

Common

James

Co.;
Inc.)

$300,000

Inc.)

Co.,

(Thursday)

Products
L.

Baird

...Common,

February 2
(H.

(Vincent,

Does-More

;

$500,000

Whiteside & Winslow,

Chace,

and

Co.

Inc.

Westmore,

•

.Common

—

Treat

stockholders—underwritten

to
Buck

Common

—

Corp.

TelAutograph
Richard

$6,800,000

Inc

Chemical, Inc
(Amos

EST)

noon

Mustang Lubricants,

—Common

Corp

Wright

$300,000

Inc.)

Co.,

Super Market Distributors, Inc
Securities

(Clayton

.Common

$1,000,000

Corp.)

(Monday)

(Reynolds

Cruttenden,

and

Inc.

Co.,

Units

Corp

Banking

Automobile

Podesta

Co.)

$2,000,000

Common

Berkey Photo Service, Inc
(Paine,

Bowl-Mor

Jackson

Webber,

(Blunt

360,000

Curtis)

Jackson

Webber,

Curtis

and

—Common
& Weeks
$5,000,000

Hornblower

Simmons,

Podesta

Cruttenden,

Granbery,

$2,000,000

Co.)

Capital Corp
Ellis

Co.)

Coral Aggregates
(Peter

Morgan

Investors

$250,000

Common

and Robinson & Co., Inc.) $400,000

Crumpton Builders,
(Courts

Digitronics Corp.

Units

Inc.
&

Co.)

150,000

units

..Capital

—

Marache

(Granbery,

Corp.)

Corp...

& Co.

and

Common

Compression Industries Corp
(I.

Debentures

Co., Inc

(Paine,

Business

Gulf Guaranty Land
(Street

Co.)

50,000

& Title Co
&

Co.)

Units

$1,500,000

Common

Jouet, Inc.
(Edward

Kleer-Vu

80c), to be sold to the Associated. Traffic Clubs of AmeriContinued

Common

Co.,

(Michael G.

under

Associated

Jan. 17, 1961 (letter of notification) $200,000 of 6% sink¬
ing fund debentures, 1975 series to be offered in denom¬

class

supplied by amendment.

will

common
stock
(par 10 cents).
Price — $5 per share.
Business—General construction. Proceeds—For working

ris

and/or

and Granbery,

Co.

Common

Marache

ic Albee

$16,250,000

Hcgle

February 6

consisting of

for

offered

..Common
Co.)

Photolab, Inc^

April 1, 1981 and 505,105 shares of common stock to

class

$300,000

None.

Apco Oil Corp.

Jan. 13, 1961 filed $10,102,100 of
be

Alaska.

Seaway Land Co.,

of notification)

(par 25 cents).

—To purchase equipment,
for distribution of dairy

and other necessary materials
products. Address—Anchorage,
Underwriter—Paul Nichols Co., Inc., Anchorage,

Lawrence

(letter

Alaska.

210 E. Lexington St.,

(1/30-2/3)

•

130,000 shares of

American &

Dec.

Sloss

(Marron,

per

Baltimore 2, Md. Underwriter—Investment Securities Co.
of Maryland, Baltimore, Md.
«

Crest

Town

1961

Corp.)

Johnson)

ating recreation centers. Office

13,

$297,999

Common

(Copley

★ Aerosonic Corp.
Jan.

Inc.)

Co.,

Co..

Securities

(Aetna

share. Proceeds—For expenses in constructing and oper¬
—

Speedee Mart, Inc

February 1

Price

cents).

220,000

Co.

Recreational

common

Common

Standard & Shell Homes Corp

■

(letter

Co.,

Common

Securities

Dowd

(Francis

Corp.

Development Corp.
of notification)_100,000 shares

150,000 shares

Corp.

(Underhill Securities Corp.)

4% 20-year collateral trust
of class A non-votings com¬
that these securities will be
units (2,000) known as In¬
vestment Certificates, each representing $900 of bonds
and 783 shares of stock. Price—$1,800 per unit. Proceeds
—To be used principally to originate mortgage loans and
carry them until market conditions are favorable for
disposition.
Office — 210 Center St., Little Rock, Ark.
Underwriter—Amico, Inc.
..,/.•■*
1960

Co.)

(James

April 29 filed $1,800,000 of
bonds and 1,566,000 shares
mon
stock.
It is proposed
offered for public sale in

Union

Scrivner-Stevens

and small trailer bodies and other custom molded

American

Inc.._

Securities

Insurance

(2/24)

Investment

Allyn

Rajac Self-Service, Inc

(letter of notification) 37,043 shares of
stock (par 40 cents). Price—$4 per share. Busi¬
Manufacturers of fiberglass swimming pools,

Mortgage

Lyon & Co.)

(Copley

fiberglass products. Proceeds — For general corporate
purposes. Office — 40 Lane St., Paterson, N. J. Under-,
writer—Vestal Securities Corp., New York, N. Y.

Sept.

Harris

(R.

1960

American

$450,000

Machine, Diesel & Electronics, Inc.__Common

Mohawk

Dillon, Union Securities & Co., New York City
(managing).

—

Inc.)

Peerless Mortgage Co

Proceeds—

•-

$200,000

Corp

Marache

Eastman

canoes

Co.,

Mosaic

(Eastman Dillon,

and
•

$300,000

and Ross,

(Vestal

short-term loans and furnish additional working
capital for domestic and foreign expansion. Office—261
Madison Avenue, New York 16, N. Y.
Underwriter—

common

Inc.)

Midland Capital Corp.__

duce

ness

Co.

$1,650,000

Common

(Schwabacher

International

Rights expire March 16.
supplied by amendment. Proceeds—To re¬

Fiberglass Co.

Sergei,

Laboratories,

held of record Feb. 28.

Molded

Courts

Inc.)

Common

Nadler

Debentures

(Globus, Inc.

Foundry Co. (2/28)
Jan. 17, 1961 filed $40,500,000 of convertible subordin¬
ated debentures, to be offered to common stockholders
on the basis cf one $100 debenture for each 20 shares of

27,

Corp.;
Co.,

International Electronic Research

American Machine &

American

$1,250,000

Corp..Common

stockholders—underwritten

Geochron

Bldg., Nashville, Tenn.
Underwriter—Standard Ameri¬
can
Securities, Inc., Nashville, Tenn.
(

common

Space

Inc.)

Third National Bank

—

Units
Inc.)

Co., Inc
Grumet

$300,000

Co.,

Corp.

(Offering

vot¬

ing).,:;/;.,;/.. :/;v;;:
ii

Credit

(Joseph

FWD

Co.

insurance.

•

Edwards Industries, Inc

share of class

one

•'*

Common /

Capital

Lane,

(Brand,

J-F

common

$300,000

Corp.)

Securities

Robinson-Humphrey

letter has

unit. Business—The writing

per

For

Dec.

Securities

Southern

Johnson,

Coburn

Beaver

that

consist of 4 shares of class A stock and
B

Proceeds—For

ing stock (par $1) and 240,000 shares of class B non¬
voting common stock to be sold in uints, each unit to

Office—

Underwriter

Life

$250,000

Industries, Inc

(B.

Educational

.Common

Co.)

underwriting)

(Netherlands

withdrawn.

American

for the

reserve

states

and

*orp.

Enclosures, Inc.__Z_
(Acme

Banner

Mfg.

underwriter

Securities

$210,000

American & St. Lawrence Seaway Land Co.__Com.

Dec. 5, 1960 filed 960,000 shares of class A

Advanced

Jan.

fice

The

—

Karen

Baldwin

Co., Inc.
(letter of notification) 39,5uu shares of
(par 33^ cents). Price — $5 per share.
For advertising and promotion and accounts

—

Ltd.;

Investors)

(Meade

1960

Note

been

Co.,

January 30 (Monday)
Industries, Inc

St., Philadelphia, Pa. Un¬
derwriter—Martin, Monaghan & Mulhern, Inc., Ardmore,
Pa.

stock

common

Price—To be

stock

common

ceeds

Industries, Inc.

27,

Consolidated

$300,000

Common

Meyerson

Alkon

Note —This

Street,
York City. Underwriter—Casper Rogers
Co., New
City (managing).

American

Co.)

cor¬

receivable. Office—835 N. 19th

share. Price—To be supplied by amend¬

per

(No

—

Common

Zeller

Selected

Israel.

Office

Sept.

ment.

(M.

Coi

resources

purposes.

(Friday)

Polysomes, Inc.

offering price. Price—$4 per
prospecting and exploration for

tially at $2

ISSUE

Fibers, Inc
(M.

discount of 25% from the

warrants, and
75,000 series II common stock purchase warrants, to be
offered in units, each unit to consist of two common
shares, one series I 5-year purchase warrant, and one
5-year series II warrant. Warrants are exercisable ini¬

jjl-1

Dallas.

REVISED

January 27

shares, at

New
common

Co., Inc.,

ITEMS

Plastics &

Office—Arlington, Texas. Underwriter

Pierce

was

Proceeds—For general

NEW ISSUE CALENDAR

Dec. 23, 1960 filed 125,000 shares of common
stock, each
share of which carries two warrants to purchase two
additional common shares in the next issue of

general

28, 1960 filed 150,000 shares of
series I common stock purchase

Sept.

Proceeds—To selling stockholders.
Village Avenue, Rockville Centre,

North

—

unit.

per

America-Israel Phosphate

(2/15)

Price—At face value.

For

working capital. Office—28 S. 8th St.,
Terre Haute, Ind. Underwriter —
City Securities Corp.,
Indianapolis, Ind.
• a.iieu
Bowling Centers, Inc.
Dec. 29, 1960 filed $750,000 of
sinking fund debens. and
300,000 shares of capital stock, to be offered in units of
$75 principal amount of debentures and 30 shares of

the

ADDITIONS

SINCE
•

Stern

Industries, Inc

(Paul Eisenberg

Co.)

$300,000

...—Common

Co. and Godfrey, Hamilton,
Co., Inc.) $402,500.

Magnus

Continued

page

The Commercial and Financial Chronicle

(476)

Continued from page 43

February 15

Marine View Electronics, Inc
Planning,

(Fund

$158,400

Inc)

„•

(Kidder,

Peabody

(Baker,

(J.

Simonds

Hogle

(Bids

(S.

and

Co.

Hallgarten

Shinn Industries

Inc
A.

(Myron

(William,

$900,000

David

(A.

Inc.)

(Hill,

West

Consolidated

Natural

(Bids

Grayway

11:30

and

Co.

Co.;

Co.)

Wegard

(Bids

Lifetime

Pools

(Pacific

Sloss

CST)

in.

Co.

Co.,

Samitas

(Dean

Hentz & Co.

and

(William

Vector

Paper

Common

(No

(Tuesday)

Securities,

International

General

Inc

Inc.

Foam

Common

Maryland

Seigel,

Corp
Co.,

(Pacific

Rixon

Securities

Coast

Co.)

200,000

Electronics, Inc
(Auchincloss,

Southern

(Pacific

Redpath)

EST)

Co.,

Co.)

Continued
and

from

their

page

(Brand,

United

Co.,

Ben.

Inc.)

263,000

the

—900

(Lee

York

and

share. Business—

per

Market

Atlantic Fund for investment in U. S. Government

22,

Price

—

1960,
$25

with
the

filed

per

ment company,

(2/14-17)
shares of common stock.
Business — A diversified invest¬

which will become
shares

the

upon

registered.

being

open-end company
and issuance of

sale

closed

York

City. Underwriter—Capital Counsellors, 50
Street, New York City. Note—This company was
formerly the Irving Fund for Investment in U. S. Gov¬
ernment Securities, Inc.—
*

Automation
24,

common

Development, Inc.
(letter of notification) 40,000^shares of
stock (par 5 cents). Price—$3.75
per share. Pro¬
1961

ceeds—For further

development of the "Skyjector." Of¬
fice—342 Madison Ave., New York
City. Underwriter—
First Philadelphia Corp., New York, N. Y.
Offering—
Expected in late February.
Automation
Jan.

25,

1961,.

common

Laboratories, Inc.
of notification)

concerns

(letter

66,700

non

Inc.)

Co.,

D. C.

Inc.)

Baldwin

Common
Corp.)

and

Corp.

Podesta

Allvn

Co.,

Gulf
;

Chicago

fields, with

underwriter, but

Dec.

22,

class

1960

Co.

proposed

there

possibility

elevator

for

cabs

Securities

pected in late February.

notification)

stock.

Office

300,000 shares of
($1 per share).
development of oil and_

Price—At

for

par

First National Bank

Building,
Denver, Colo. Underwriter—Equity General Investment
Corp., First National Bank Building, Denver, Colo.

27,

attached

warrants

consisting of
to purchase
To

one

to be offered for public sale in units
$1,000 debenture and a 5-year warrant

50 shares of class A

common

stock.

Price—

supplied by, amendment. Business—The financing.

of instalment sales for-automobile dealers. Proceeds—To

retire

outstanding 5V2% capital convertible debentures
and for expansion. Office—6 Penn Center
Plaza, Phila¬

delphia, Pa.

Underwriters—Reynolds

Co., Inc., New

received )

$15,500,000

stock

and

.Preferred

received)

$8,000,000

(Thursday)
Bonds

...

received)

$5,000,000

& Co.

(letter of notification) 100,000 shares of
(par 75 cents).
Price — $2 per share.
issuer

broker-dealer

with

the

SEC,

member of the NASD. Proceeds—To take positions
and maintain markets in securities, participate in undera

writings, and the balance for working capital; Office—
1518 K St., N. W., Washington, D. C. Underwriter—Same.
Bertbow

Jan.

18,

class

Astronautics, Inc.

1961

(letter of notification) 100,000 shares of
(par 5 cents). Price—$3 per share. Busi¬
ness
The company supplies the missile and aircraft
industries with hydraulic valves and regulators and re¬
stock

—

mechanical

components. Proceed.;—For additional
for research and development in

capital

the fields

and

cryogenics and high temperature pneuma¬
City, Calif. Underwriter—
Hindley & Co., 99 Wall St., New York City
(managing). Offering—Expected in mid-February.
systems.

Office—Culver

Edward

Berkey Photo Service, Inc. (2/6-10)
28, 1960 filed 360,000 shares of common stock of
which 80,000 shares will be offered for the account of

—

and

280,000 shares for the account of selling
Price
To
be supplied
by amendment.
Business—Photo-processing. Proceeds—For-general cor¬
company

stockholders.

—

porate purposes.

City.

Office—77 East 13th Street, New York

Underwriter—Paine,
York

Webber,

Jackson

Curtis,

City (managing).

ic Baltimore Associates
18, 1961, filed $603,000 of participations in this joint
Price—$6,000 per unit. Business—Associates was

venture.

under

New

York

quire title to the land and
discount

department

store

law

January

1961

building containing
erected

1960

to
a

ac¬

retail

the

sub¬

of Baltimore, Md. Proceeds—To be applied to the
purchase price of the property. Office—220 Fifth Ave.,
New York
•

City. Underwriter—None.

Banner

Dec.

Industries,

Inc.

(1/30-2/3)

common

shares and 125,000 common shares under¬

lying the warrants. Offering wi'l be made in units, each
unit to
warrant

consist of
for

the

two

shares of

purchase of

May 1, 1962. Price—$10

common

one

per

+ Bicor Automation
Jan.

23,

stock.

1961

stock

and

$6 per

one

unit. Proceeds—$200,000

filed

Price—$4

per

Industries,

110,000
share.

Inc.
of

class

common

Business—The company was

organized in December, 1960, to acquire all the capital
of four corporations in Fairview, N.
J., whose
principal business is the) importation and sale of em¬
broidery manufacturing rihachinery. Proceeds—For new
equipment and working capital.
Office — 333 Bergen
Boulevard, Fairview, N. J.
Underwriter—Mortimer B.

stock

Burnside

6, 1960 filed 250,000 shares of common stock (par
125,000 warrants for the purchase of a like num¬

ber of

1960, filed $2,000,000 of capital debentures and

(R.)

1960

Business—The

New

10c)
(2/6-10)

Bonds

Dec.
..m

expenses

properties.

Corp., New York, N. Y.

urbs

missiles and space vehicles, for automatic
of machinery operations and for geodetic
surveys. Offices — 80 Urban Ave., Westbury, and
179
Liberty Ave., Mineola, N. Y. Underwriter—Sandkuhl and
Co., Newark, N. J., and New York City. Offering—Ex¬

20,

lated

(1/30-2/3)

(letter

common

Proceeds—For

ballistic

Baruch

(man¬

tic

Oil

(Bids

working

Bal-Tex

(Bids

Power

notification) 60,000 shares of
stock (par 10 cents). Price—$5 per share. Busi¬

Underwriter—Acme

$5,000,000

(Wednesday)

(Bids,

/.mm

common

Inc.

$5,000,000

.Preferred

received)

Georgia Power Co.

Inc.)

be invested in any one such enter16th Street, N. W., Washington,

December

1000

(letter

received)

Co....

Power Co

.<77 .7:777'

Inc.)

Co.,

diversified management investment

Bonds

Stock

and

(Thursday)

■■

Common
Sloss

Marron,

Enclosures,

1960

Bonds

$27,000,000

$175,000

apartment
houses and office buildings. Proceeds—For general cor¬
porate purposes. Office—59-33 55th St., Maspeth, N. Y.

formed

positioning

Georgia

Manufacturers

27,

ness"—

gas

October

$480,000

that the filing may be withdrawn.

Dec.

EST)

a.m.

(Bids

.Class A

Seigel,

Underwriter—The company states that it is nego¬
an

Bonds
$35,000,000

$299,950

avionics and related

—

$30,000,000

Generating Co
11

Mississippi Power

Investing Corp.

Office

(par 10 cents). Price—$4 per share. Busi¬
ness—The company is engaged in the research and de¬
velopment of infra-red devices used for the alignment

Automobile Banking Corp.

received)

(Thursday)

Common

Enterprises, Inc

limit of $800,000 to

Jan.

stock

Dec.

Common

$675,000

Proceeds—For investments in small business

company.

investment

Office—50 Broad Street.

Broad

Jan.

Inc.)

7/7 100 900 shares

Higginson

end

common

Proceeds-—For

in U. S. Government securities.

New

Co.,

1960 filed 250,000 shares of capital stock (par
Price — $10 per share.
Business — The issuer is

tiating with

2,000,000

share.

redeemable

Inc.

(Bids

Sept.

price.

July

12,

$1).

;

Mississippi Power Co.

Cruttenden,

Avionics

July

Bonds v

$12,000,000

(Tuesday)

September 28

Units

aging).
Price—$2

amount

Securities,

June

$777,300

100,000 shares

St., Wilmington, Del. Underwriter—A.
Co., New York, N. Y.
Offering — Expected
early February.
•

Inc.

received)

Southern Electric

$148,172

Philadelphia

Co.,

Virginia Electric & Power Co...

Common

Corp.)

Corp

Corp.

■

Wometco

Trust Ctfs.

required by law and to carry on
and further develop the business of the company. Office
Brod

Sloss

$522,500

members.

..Bonds
$30,000,000

PST)

a.m.

(Thursday)

(Bids

Boatbuilders, Inc

(Birr

—....Common
Inc.)

8:30

and

Co.;

June

Corp

Grumet

(First

Provides insurance coverage to the members
of the
above club. Proceeds—To be added to surplus to main¬
tain

162,500

Roblin-Seaway Industries, Inc
Techmation

$300,000

Toledo Plaza Investment Trust
(Hodgdon

Co.)

underwriting)

(Blaha

Capital

Securities

$13,000,000

(Monday)

Measurements

900,000

Bonds
EST)

a.m.

Common

Collateral

Corp.
Coast

Progress Webster Electronics Corp
Radar

Capital

115,000

Broadcasting Co
(Reynolds

Invesco

Common

Stancil-Hoffman
Storer

$8,000,000

Orange & Rockland Utilities, Inc

$500,000

Securities

(Marron,

_•

Parker

3:45

Lichtenfeld

Co.)

Podesta

(No

Preferred
EST)

a.m.

(Bids

Common

Co.
(Bids

Common

Kirsch

February 27

235,100

Co....

(Tuesday)

April 20

Co.___Common

11,170,000

McMahon,

Co.;

(Vestal

Common

Brothers)

(Lehman

$800,000

Monarch Electronics International, Inc

Southern California Edison Co

'Bids

Units

Inc.)

Corp

Cup

April

Common

(Friday)
American Molded Fiberglass Co

$550,000

Lewis

150,000

Co.)

Co.____

(Bids

February 24

Units

Inc.)

——Common

Corp..,.

(Thursday)

Power

Debentures

Grumet

(Edward

Power

Alabama

$300,000

250,000

Stone

(Bids

$400,000

Photo Service, Inc

Investor Service Securities,.,.Inc.)

and

Gruber

(Cruttenden,

Corp

Leasing Credit

Alabama

Common

Falls Plaza Limited Partnership

E^uip. Trust Ctfs.,
$7,800,000

EST)

noon

(Wednesday)

Common

Corp.)

Co.)

underwriting)

(Underwriter to be named)

(Brand,

March

—_.Units

Inc.)

(Hayden,

units

50,000

Bowling Corp

(P.

Corp

$1,150,000

Securities

Forge

(Thursday)
Telephone & Telegraph

American

Stonehill & Co.) 200,000 shares

Federman,

Financiera

Compania

and
Inc.)

(Tuesday)

Leaseway Transportation

Co., Inc
&

Inc.

February 23

(Capital Counsellors) $50,000,000

General

March

$300,000

Noel

(Bids

of Delaware—Common

Securities

Units

—

Co.,

Inversiones,

(Bids

Atlantic Fund for Investment in U.

(Hodgdon & Co.,

Brooks

Common

Inc.)

Board

Alstyne,

(Monday)

Common

Motti,

Common
$300,000

Corp.)

$500,000

Inc.)

Inc

(Plymouth

Whippany

Canaveral

Co.,

Inc

Co.,

David

Industries,

.Common
shares

300,000

Inc.)

(Friday)

February 14
Government

Securities

Chalet, Inc..—

(P.

Machines, Inc

(Hodgon

$750,000

Inc.-——

Louisville & Nashville RR

Corp.)

Renwell Electronics Corp.

Shore-Calnevar, Inc.
(H.

Swiss

..Common

Co.)

$8,000,000

Inc. and Valley
Inc.)
$255,000

Co.,

Business

Jonker

Co.)

(Van

February

Co.,

Common
Fontaine

Grant,

Texas Gas Transmission Corp
Read

..Bonds
Bonds

Securities

Crest Records,

Golden

Bonds

(Wednesday)

(Dillon,

Inc

Kletz

(Vestal

$3,000,000

and

Electronics,

March

$15,000,000

received)

$375,000

—-—Common

Lomasney

(Plymouth

(Monday)

Techniques,
(Michael

$568,750

February 8

Inc.)

Co.)

Common

i*,

326,682

Co.

be,

Ram

190,000

Lomasney

(Myron

Dixie Natural Gas Corp...

$300,000

Inc.)

Co.

Equipment Corp

Securities

Coast

Common

—

(Myron

$300,000

Common

$600,000

Corp.)

Milo Electronics Corp

Common

Co.,

Utilities

Texas

Aerosol

Common

Marron,

Co.)

180,000

Inc.)

Corp.

$3,500,000

Common

Grimm)

& Co.,

February 20

$45,000,000

Inc

Lake Superior District Power Co
."

Stonehill

—

Securities

(Plymouth

March

Co.

Debentures

EST)

a.m.

$285,000

Gas

Precision,

(Harrison

$5,400,000

EST)

noon

(Wednesday)

Dodge Wire Corp
Ilikon

Common

Walker
Sherman

Common
Units

Sons)

$300,000

Corp

Puget Sound Power & Light Co

(Bids

and

(Bids

—

Securities)

(Blyth

Common

February 7 '(Tuesday)
Kleinzahler,

Trust Ctts.

Ry._-_ —...-Equip.

Northern

Great

March

Co., Inc

Darlington

(Blyth

(Rodetsky,

Bonds

Puget Sound Power & Light Co

$225,000

Circle Controls Corp

$5,000,000

and Minis & Co., Inc.)

Thalmann & Co.

$20,000,000

180,000

Co.)

Edwards

Patrician Paper

$264,900

Co.)

Asbestos

(Federman,

-Units

Motti,

Securities

Common

of America, Inc.:

(Ladenburg,

Management Assistance Inc

•

Telephone & Electronics Corp
(Equity

Lake

Common

—

Co.)

Lomasney

Solite Products Corp

EST)

a.m.

Fuller

(Lloyd

Jefferson

Co.) "300,000

11:00

Hydro-Electronics Corp,

Debentures
$1,100,000

Screen Gems, Inc._
:
Common
(Offering to stockholders—underwritten by Hemphill, Noyes
&

Fund

Common

snares

Consolidated Airborne Systems, Inc._.Class A Stk.

$1,184,400

Co.)

(Tuesday)

February 28

30,000

Chesapeake & Potomac Telephone Co

Common

Mortgage Corp.__

underwriting)

Thursday* January 26, 1961

100,000 shares

& Co.)

New Moon Homes, Inc
Palomar

(No

Common

Midland-Guardian Co.

(Wednesday)

Acme Missiles & Construction Corp

Common

Boonton
Dec.

23,

Co., Inc., New York City.
Electronics

Corp.

1960 filed 60,000

shares of common stock plus
warrants, to be offered for public sale in units
consisting of one common share and one-half of a twoattached

year

warrant.

chase

will be used to expand the company's imports from Eu¬

and

rope'

and Japan and the balance will be used for addi¬
tional working capital. Office—1311 South 39th St., St.

sion,

One full warrant will be required to pur¬
per share during the first year

share at $5.50

unit.

Louis, Mo. Underwriter—Netherlands Securities Co., Inc.,
York City.

one

New

$6.50-per share the

second

year.

Price—$5.50

per

Business—The design and -manufacture of
precision
electronic measuring equipment. Proceeds—For expan¬
and

advertising and sales promotion and for research
development.

Office—738 Speedwell Avenue, Mor-

Volume

193

Number

6024'.'.

The

Commercial and Financial Chronicle

(477)
ris

Plains, N. J.

Underwriters—Ross, Lyon & Co., Inc.,

Globus, Inc., both of New York City.
pected in early March.
and

•

Fenner & Smith

Offering—Ex¬

Weld

1960 filed

28,

120,000 shares

class

Cinestat
Jan.

—

•/: ','/

Oct. 28, 1960

Co.,

Inc.

-V,

(2/6-10)

filed $2,000,000 ot tJ>t, 2onvertible subordin¬

Road,

Littleton, Mass.

Underwriters—Paine,

Webber, Jackson & Curtis and Granbery, Marache & Co.,
both of New York City (managing).
Bowl-Mor
Oct. 25,

Co., inc.

1960 filed 78,955 shares of common stock, being
holders of the outstanding common on the

offered

basis of

one

Jan.

new

12, with rights to expire

—For

working

capital

for

and

Jan. 30. Price—$20

costs

per

the

company's
Office—Newton

the "tenpin" bowling field.
Littleton, Mass. Underwriters — Paine, Webber,
Jackson & Curtis, and Granbery, Marache & Co., both
of New York City (managing).
into

entry

Road,

•

Bradford

Oct.

24,

filed

160,000

class

common

stock, with stock purchase warrants attached, to be of¬
fered in units consisting of five shares of stock and one
warrant. Price—$10 per unit. Business—The
construction,
sale, and installation of pools in New Jersey and neigh¬
boring states. Proceeds—For general corporate purposes,
including working capital.
Office — 245 Nassau St.,

Princeton, N. J. Underwriter—R. A. Holman & Co., Inc.,
New York City. Offering—Expected in early
February.
•

Business

Capital Corp.
(2/6-10)
Dec. 19, 1960 filed 500,000 shares of common stock. Price
—$10 per share. Business—A closed-end, non-diversified
management
Small

investment

Business

business

company

Investment Act.

purposes.

Office—728

licensed

under

the

Proceeds—For

West

general
Roosevelt Road,

Chicago. Underwriters—Blunt Ellis & Simmons, Chicago,
Weeks, New York City and Cruttenden,
Podesta & Co., Chicago (managing).
Hornblower &

Business

Aug.

common

Finance Corp.

(letter

1960
stock

195,000 shares of
$1.50 per share.
Office—1800 E. 26th

Price

—

Underwriter—Cohn Co., Inc., 309

Ridge Road, Little Rock, Ark.
Canadian

■.

Advertising Corp.
(letter of notification) 30,000 shares of
(no par). Price—$10 per share. Proceeds

28,

1960
—

Corp.

(letter

stock

common

Business

Controls

(par

notification)

95,000 shares of
$3 per share.
rebuilding of electronic,

cents).

Manufacture

and

For general

corporate

Price

—

Proceeds—

and working capital.

purposes

Boulevard, Vineland, N. J. Underwriters
—Rodetsky, Kleinzahler, Walker & Co., Jersey City,
N. J.; L. C. Wegard & Co., Trenton, N. J. and L. D. Sher¬
man
& Co., New York, N. Y.

Superior Oil of California, Ltd.
1,200,000 shares of common stock to be

(U. S.) and $8.75 (Can.) per share. Proceeds—To
debts.
Office — 703 Sixth Avenue, South West,
Calgary, Alberta. Underwriter—None.

repay

Canaveral International Corp.
(2/14-17)
Aug. 12, 1960 filed 300,000 shares of common stock (par
$1). Price—To be supplied by amendment. Business—
Land sales and development. Proceeds—$150,000 for ac¬
counts payable, $335,000 for mortgage and interest pay¬
ments, $250,000 for advertising, $250,000 for development
costs and $290,000 for general working capital. Office—
1766 Bay Road, Miami
Beach, Fla. Underwriter—To be
named.

Inc.

$330,(10-year 8% redeemable). Price—For
stock, $1 per share; debentures in units of $1,000 at their
principal amount. Proceeds—For initiating sight-seeing

000 of debentures

Office—Washington, D. C.

Underwriter—None.

Citizens & Southern

Canterbury Fund, Inc.

has

been
organized to serve principally investment
clients of Fiduciary Counsel, Inc., and its subsidiary, The
Estate Planning Corp. Proceeds—For investment. Office

Village Rd., Madison, N. J. Underwriter—

Estate Planning Corp.

22,

(letter

Products, Inc. (2/1)
of notification) 100,000 shares

J'or

stock (par $1). Price—$3 per share. Proceeds—
expansion, machinery and for working capital. Of¬

fice—539 E. Main Street, Waterbury, Conn.
—Thompson & Co., New York, N. Y.

Office—Marietta and Broad Streets, Atlanta, Ga. Under¬
writers — The Johnson, Lane, Space Corp., Savannah;

(managing).

Underwriter

Coastal

Acceptance Corp.
3, 1960 (letter of notification) $100,000 of 10-year
7% registered series notes, to be offered in denomina¬
tions of $100 to $1,000 each. Price—At face value. Pro¬
ceeds—For working capital. Office—36 Lowell
St., Man¬
chester,
N.
H.
Underwriter — Shontell
&
Varick,
Manchester, N. H.
Oct.

•

Coburn

Nov.

Credit

Co.,

Inc.

18, 1960 filed 50,000 shares of

value

$1).

Price—$4

per

sales finance business.

share.

Proceeds—For general corporate

purposes. Office—53 N. Park
N. Y. Underwriters—Brand,
&

stock (par
Business—Consumer
common

Avenue, Rockville Centre,
Grumet & Seigel, Inc. and

Co., Inc., New York, N. Y.

Colorite

Dec.

Plastics, Inc. (2/13)
1960 filed $900,000 principal

22,

mortgage
able

bonds,

6%%

stock

common

first

purchase

1976 (with detach¬
warrants)
and 100,000

stock. Price—For the bonds:

common

face amount

amount

series, due

plus accrued interest.

100%

For the stock: To be

lated items.

Commonwealth International & General

Fund, Inc.

Dec.

19, 1960, filed 400,000 shares of common capital
stock. Price—$12.50 per share. Business—A diversified,
open-end, managed investment company. Proceeds—For
investment. Office—615 Russ Bldg., San Francisco, Calif.
Underwriter—North American Securities

cisco

Co., San Fran¬

(dealer-manager).

For additional

facilities, acquisition of outstanding stock
Organo-Cerams, Inc. and for working capital. Office
S. Avalon Blvd., Gardena, Calif. Underwriter—

—16627

Lomasney & Co., New York, N. Y.

1960 "(letter of notification) 100,000 shares of
common stock
(par 10 cents). Price — $2.50 per share.
Business—Construction of swimming pools. Proceeds—•
For general corporate purposes. Office—313 W. Jericho
Turnpike, Huntington, N. Y. Underwriter-+-I. R. E. In¬
19,

vestors

Corp.,

3000

Hempstead

Turnpike^

Levittown,

N. Y.

Consolidated Airborne Systems,

Inc.

(2/15)

15, 1960 filed 180,000 shares of class A stock. Price

supplied by amendment. Business—The design,
development and production of proprietary devices in
the field of electronic
and cryogenic ground support
equipment and airborne instrumentation for the military
commercial

and

aircraft industry.

Proceeds

For debt

—

stock. Price

Business—The company and its wholly-

owned

subsidiary, Chemline Corp., buy, sell and refine
by-products of the chemical and petrochemical indus¬
tries, manufacture and sell lime, and reprocess used
thermoplastic resins. Proceeds — For construction, new
equipment and general corporate purposes.
Office—74
Dod

Godfrey,
Hamilton, Magnus & Co., New York City (managing).
Offering—Expected in late February.
•
Street,

Elizabeth,

Underwriter

—

• Chesapeake & Potomac Telephone Co. (2/15)
Jan. 23, 1961 filed $20,000,000 of 37-year debentures due
Feb. 1, 1998.
Proceeds—To be applied toward repay¬
ment of advances received from American. Telephone &

Telegraph Co., parent.
Office — 930 H
Washington, D. C. Underwriters—To be
competitive bidding.
Probable bidders:
& Co.
Inc.; First Boston Corp. and Merrill

Consolidated Natural Gas Co.
Jan.
1986.

Street, N. W.,
determined by
Halsey, Stuart
Lynch, Pierce,

(2/7)

1961 filed $45,000,000 of debentures, due Feb. 1,

Business—A

holding

company

for

six

engaged in the natural gas business.

—To repay a

Jan. 16, 1961 filed 200,000 shares of common

share.

Ave., New Hyde Park, N. Y. Underwriter—S. D.
Co., New York City (managing).

Fuller &

concerns

Chemsol, Inc.
per

rock.

Cortez

Co., Inc., Philadelphia, Pa.

Life

Insurance

Co.

Jan.

12, 1961 filed 500,000 shares of common stock.
Price—$3 per share. Business—The company is engaged
in the business of

writing life insurance, annuity policies
re-insurance. Proceeds—For general corporate
pur¬
Office—304 Main St., Grand Junction Colo. Under¬

and

writer—None.
•

Crumpton Builders, Inc. (2/6-8)
17, 1960 filed 750,000 shares of common stock, $1,500,000 of 9% convertible debentures due Jan. 10, 1981,

Nov.

and

warrants, to be offered in units, each unit to consist

of five shares of

("shell") homes.

Atlanta, Ga. and New York City.

Office—30

operating
Proceeds

short-term bank loan and for construction.

Rockefeller

ton

Co.

Inc.

determined

White, Weld & Co., and Paine,
(jointly); Halsey, Stuart &
Bids—Expected Feb. 7, 1961 at 11:30 a.m. EST.

Corp.,

Webber,

(letter of notification) 37,115 shares of com¬
stock (par 50 cents) to be offered for
subscription
by stockholders of the company with the right to pur¬
mon

chase

one

days.

share for each five shares held.

Rights expire
Price—$3.75 per share. Office—North Mar¬
gin Street, Franklin, Tenn. Underwriter —
Clark, Land30

street &

Kirkpatrick, Inc., Nashville, Tenn.

^ Custom

Components, Inc.
24, 1961 filed 165,000 shares of

common stock. Price
share. Proceeds—For debt reduction, inventory,
working capital. Office—Passaic, N. J. Underwriter
—Manufacturers Securities Corp., New York City.

—$3

per

and

•

Datamation, Inc.
30, 1960 (letter

Nov.

•--T

■.'»

notification) 80,000 shares of
common stock (par 10 cents).
Price—$2 per share. Busi¬
ness—The processing of paper work on a 'service basis

for business

organizations to provide them with the costcutting and time-saving benefits of electronics. Proceeds

—For general corporate purposes.
Office —■ 100 S.'Van
Brunt St., Englewood, N. J. Underwriters—Bertner Bros,
and

Earl

Edden

Co., New York City. Offering—Immi¬

nent.

^ Delanco Electric Co., Inc.
17, 1961 (letter of notification) 100,000 shares of
common stock (par 10 cents).
Price—$3 per share. Busi¬
ness—Operates three retail stores selling electrical appli¬
ances.
Proceeds—For general corporate purposes. Office
Jan.

—Ill

Delancey Street, New York, N. Y.

Underwriter—

Michael Pariser Corp., New York, N. Y.

Digitronics Corp.

(2/6-10)

Dec.

27, 1960 filed 50,000 shares of capital stock.
Price
—To be supplied by amendment. Business—Makes digi¬
tal computers. Proceeds—To retire short-term loans and
for working capital. Office — Albertson, L. I., N. Y.
Underwriter
Granbery, Marache & Co., New York
(managing).
•

(jointly);

Jackson & Curtis

Dixie

Dec.

Natural

Gas

Corp.

(2/20-24)

(letter of notification) 75,000 shares of
common stock
(par 2 cents). Price—$4 per share. Busi¬
ness—Develops oil and gas leases in West Virginia. Pro¬
ceeds
For general business purposes. Office — 115
1960

—

Broadway, New York 6, N. Y. Underwriter—Vestal Se¬
curities Corp., New York City.
®

Dodge Wire Corp.

(3/1)

Dec.

7, 1960, filed 100,000 shares of common stock. Price
—$6 per share. Business—The manufacture of woven
aluminum screen cloth. Proceeds—The repayment of in¬
debtedness and general corporate purposes. Office—In¬
dustrial Blvd., Covington,: Ga.
Underwriter—Plymouth '
Securities Corp., New York City. ,
•

Does-More

Oct.

Products

Corp.

(2/2)

of notification) 75,000 shares ol
common stock (par 10 cents). Price—$4 per share. Pro¬
ceeds— To pay notes payable, purchase inventory, for
purchase of die and equipment and additional working
capital. Office—201 W. Semmes St., Osceola, Ark. Un¬
derwriter
H. L. Wright & Co., Inc., New York, N. Y.
1960

12,

(letter

—

Note—Statement effective Jan. 23.

Plaza, New York, N. Y.

Under¬
competitive bidding.
Probable bidders: Morgan Stanley & Co., and First Bos¬
writers—To

Cumberland Shoe Corp.

—

Compression Industries Corp. (2/6-10)

Third

Contour Corp.
19, 1961 (letter of notification) 100,000 shares of
capital stock (no par). Price—$3 per share. Proceeds—

—$3

Robinson &

Jan.

(1/30-2/3)

• Chemical

D. A.

Jan. 3, 1961

reduction, research, development and expansion of man¬
ufacturing facilities and for working capital. Office—900

sale

corporate purposes. Office—7200 Coral Way, Miami Fla.
Underwriters—Peter Morgan & Co;, New York
City, and

Courts & Co. and Robinson-Humphrey Co. Inc., Atlanta

Jan.
;■

and

Proceeds—To increase mortgage notes receivable and the
balance for general corporate
purposes. Office — 2915
West Hillsborough
Ave., Tampa, Fla. Underwriter —
Courts & Co.,

subsidiary of Citizens & South¬

National Bank of Atlanta. Proceeds—For investment.

ern

—To be

common
.

extraction

common stock, one debenture and one
warrant. Price—To be supplied by amendment. Business
—The construction of owner
completed

Dec.

Associated

1960

the

Capital Corp. (1/30-2/3)
Dec.
21, 1960, filed 300,000 shares of common stock.
Price—$5.50 per share. Business—A small business in¬

Dec.

Dec. 29, 1960 filed 150,000 shares of capital stock. Price
—To be supplied by amendment. Business — The fund

Dec.

equipment, working capital, and the re¬
indebtedness, with the balance for general

poses.

March 30 filed 165,000 shares of common stock and

service.

engage

tirement of

Of¬

fice—204 S. W.

Circle-The-Sights,

Proceeds—For

(2/7)

electro-mechanical and mechanical controls.

shares of

—$9

Capitol

intends

Circle

plastic garden hose, tubes, rods, strips, gaskets, and re¬
Proceeds—To purchase land, buildings and
equipment and for working capital. Office—50 California
Ave., Paterson, N. J. Underwriter—P. W. Brooks & Co.,
Inc., New York City (managing).

•

necessary

business. Office—Penn-Sheraton
Hotel, Pitts¬
burgh, Pa. Underwriter—C. A. Benson & Co., Inc Pitts¬
Coral Aggregates Corp.
(2/6-10)
Aug. 25, 1960 filed 100,000 shares of common stock
(par
10 cents). Price—$4 per share. Business—The
company

offered for subscription by common stockholders on the
basis of one new share for each 3.75 shares held. Price

Green

equipment, real estate and other materials

burgh, Pa.

supplied by amendment. Business—The manufacture of

—55

Inc.

stock

Jan 5, 1961 filed

Copter Skyways,

16, 1961 filed 15,000,000 shares of no par common
stock. Price—3 cents per share.
Proceeds—To acquire the
commence

None.

Oct.

Jan.

1961

Kesselman

Proceeds—For business expansion.
N.

195

2315,

purchase equipment and for working capital. Of¬
fice—604 Graham Ave.,
Madison, Wis. Underwriter—

notification)

(par 20 cents).

St., Little Rock, Ark.

Room

vestment company and a

Pools, Inc.

1960

—To

share for each 10 shares held of record

share. Business—The company manufactures pin-setting
machines for various types of bowling games. Proceeds

common

•

ated debentures, due 1975.
Price—To be supplied by
amendment. Proceeds — For working capital. Office —
Newtown

received

(EST) in Room 1900, 195 Broadway, New York, N. Y.

common

building, leas¬

ing and operation of bowling centers. Proceeds
For
working capital. Office—26 Broadway, New York, N. Y.
Underwriter — Arnold Malkan & Co., Inc., New York
City (managing). Offering—Expected sometime in FebBowl-Mor

Feb. 15 at 11 a.m. (EST).
Information Meeting—Scheduled for Feb. 9 at 2:30
p.m.

stock. Price—$5 per share. Business—The

ruary.

(jointly); Morgan Stanley & Co.; White,

Bids—To

Broadway, New York, N. Y.

Bowling & Construction Corp.

Nov.

Co.

Dolomite Glass Fibres,

Inc.

27, 1960 filed 200,000 shares of 7% preferred stock
(cumulative - convertible); 200,000 class A common
shares (voting) and 1,000,000 common shares (non-vot¬
ing). Price—$10 per share for the preferred and $1 per
share for the class A and common shares. Business—The
Dec.

Information Meeting—Scheduled for Feb. 2 at 10:30 a.m.

manufacture

EST at Bankers

glass fibre threads, mats and rovings for use in the pro¬
duction of reinforced plastics. Proceeds—For working

Club, 120 Broadway, New York City.

Consolidated Realty Investment Corp.

April 27 filed 2,000,000 shares of common stock. Price—
$1 per share. Proceeds—To establish a $250,000 revolving
fund for initial and intermediate financing of the con¬
struction of custom or pre-fabricated type residential or
commercial buildings and facilities upon properties to
be acquired for sub-division and shopping center devel¬
opments; the balance of the proceeds will be added to
working capital. Office—1321 Lincoln Ave., Little Rock,
Ark.

Underwriter—The

Huntley Corp., Little Rock. Ark.

and

sale

glass fibre for insulation

and

capital and the purchase of additional equipment. Office
—1037 Jay

Drexel

Oct. 25,
10

St., Rochester, N. Y. Underwriter—None.
Equity

Fund,

Inc.

1960 filed 500,000 shares of common stock

(par

Price—$10.20 per share. Business—This is a
mutual fund, organized as a closed-end fund on Oct.

cents).

new

19, which will become open-end pursuant to
i

Continued

the public
on

page

The Commercial and Financial Chronicle

(478)

Continued

from

Office—48 W. 25th St., New York, N. Y. Under¬
writer—Kidder, Peabody & Co., New York, N. Y.

poses.

page

Proceeds—For portfolio investment.

sale of these shares.

Office—1500 Walnut Street,

Philadelphia, Pa. Distribu¬
Co., Philadelphia,

tor and Investment Adviser—Drexel &

Pa. Offering—Expected in early February.
•

Eastern

Florida
Nov.

stock

common

Proceeds

Bowling Corp.

& Trust Co.
(letter of notification) 83,125
(par

—

pay

cents). Price—$3.60 per share.
second mortgage instalment, for

unit. Proceeds

79th St., Miami, Fla.
Co., Inc., Chicago, 111.

—For

pected sometime in February.

ment used by

Eastern
Dec.

29,

common

Camera

of notification) 75,000 shares of
cents). Price—$4 per share. Busi¬
chain of retail stores and concessions

(letter

1960

film

cameras,

supplies

photographic

and

Oct.

and

Industries,

Jr.

department, drug and variety chain stores,
Proceeds—For expansion; to repay a
loan; advertising, sales and promotion; for working cap¬
ital and general corporate purposes. Office—250 W. 57th
St., New York, N. Y. Underwriter—Richard Bruce & Co.,
Inc., New York, N. Y.

sale of bulk food

Inc., New York, N. Y.

tion

it Eastern Can Co., Inc.
/•v/\ v.,
\V;23, 1961 filed 200,000 shares of class A stock. Price
—$7 per share. Business—The company is engaged in
the business of manufacturing tin plate cans for the
Jan.

marketing of different types of food,
petrochemicals and other products. Proceeds—For new
equipment; completion of a new manufacturing plant at
Passaic, N. J.; the moving of a metal container manufacturing/equipment from Brooklyn to Passaic, and for
working capital.
Office — 20 Kent Avenue, Brooklyn,
N. Y. Underwriter—Milton D. Blauner & Co., Inc., New
packaging

York

and

City.

(1/30-2/3)

homes, and working capital relating to such activities.
Office—Portland, Oreg. Underwriter—Joseph Nadler &
Co., Inc., New York City (managing).
Electro

Industries, Inc.
(letter of notification) 75,000 shares of
class A common stock (no par) and 20,000 shares of addi¬
tional class A common stock to be offered to the under¬
1960

19,

writers.

Prices—Of

class

share; of
share. Proceeds

common,

additional class A common, 2% cents per

per

into the
packaging and export of electrical equipment, and for
working capital. Office—1346 Connecticut Ave., N. W.,
Washington, D. C.
Underwriter — Carleton Securities
Corp., Washington, D. C.
To

—

Electro-Nuclear

Aug.

inventory

company's

the

expand

Metals, Inc.

(letter of notification) 250,000 shares of
stock. Price—At par ($1 per share). Proceeds—
1960

31,

common

equipment, rental and for administra¬
tive costs. Office—115 Washington Blvd., Roseville, Calif.
Underwriter—A. J. Taranto & Co., Carmichael, Calif.
To

•

purchase

new

Electro-Tech

Nov.

29,

Instruments,

Inc.

(letter of notification) 75,000 shares of
(par 50 cents). Price—$4 per share. Pro¬
inventory, advertising and working capital.

1960

stock

common

ceeds—For

Office—5 N.

Mason

St., Portland, Oreg. UnderwriterCo., Inc., New York, N. Y. OfferingExpected sometime in February.

Robert Edelstein

•

Electronic Tube Corp.

(2/1)

sale

and

cathode

tubes

ray

and

associated

City.

Fund of
Jan.

America, Inc.

—$10
named

Business

share.

per

Industries

Southern

company,

Price
formerly
open-end

Inc., is

Fund,

Office—60 East 42nd

trust.

investment

balanced

The

—

Street,

New

York, N. Y. Underwriters—Ladenburg, Thalmann
Co., New York City and Minis & Co., Inc., Savannah,
Georgia.
&

FWD

(1/30-2/3)

Corp.

15, 1960 (letter of notification) $300,000 of 6% 10year convertible debentures to be offered for subscrip¬
tion by holders of common stock in multiples of $100.
Price—At face value.
Proceeds—To purchase the out¬

Address—ClinA. C. Allyn & Co., Inc.,

standing stock of Wagner Tractor, Inc.

Underwriter

tonville, Wis.

—

Chicago, 111.

—

Va.

Bowling Corp. '(2/23)

17, 1960 filed 100,000 shares of common stock (par
10c).
Price—$5 per share.
Business—The issuer owns
two bowling establishments, and a tract of land in In¬
diana

County, Pa.,

which it hopes to build a third.
prospective establishment ($150,000), to repay a bank loan ($50,000), to add eight lanes
to a bowling facility ($50,000), and the balance will be
used for working capital. Office—2 Park Avenue, Manhasset, L. I., N. Y. Underwriters — P. J. Gruber & Co.,
Inc. (managing); McMahon, Lichtenfeld & Co., and T. M.
Kirsch & Co., all of New York City.
on

Proceeds—To equip the

General

Foam

(2/14-17)

Corp.

and

distribution of

urethane foam and foam rubber products. Proceeds—For

equipment

and working capital. Office—640 West
St., New York City. Underwriter—Brand, Grumet

Seigel, Inc., New York City

(managing).

General

Ave., Passaic, N. J. Underwriter — Godfrey, Hamilton,
Magnus & Co., Inc., New York City (managing).

for working

and

indebtedness

production;

fered

for

tenth

sale
a

units

warrant.

one

sale

such units. Price—To be

will

stock

made
to

the

and

one-

less

than

price of the

company's stock in the over-the-counter market imme¬
diately prior to the offering. Business—The firm makes
and sells instruments and equipment for scientific and
industrial measurement and analyses. Proceeds—To sell¬
ing stockholders, who are two company officers who will
lend the net proceeds to the company. Office—430 Buck¬
ley St., Bristol, Pa. Underwriter — Warner, Jennings,

Genie

Petroleum,

Falls

Longstreth, Philadelphia, Pa.

Plaza

Limited

Partnership

(2/14-17)

Dec. 5, 1960 filed 480 units of limited
partnership inter¬
ests. Price—$1,000 per unit. Business—The

building and

operation of

shopping center

Broad Street in Falls

Church, Va. Proceeds—For the purchase of land and the
erection of a shopping center. Office
1823 Jefferson
—

Place, N. W., Washington, D. C. Underwriter—Hodgdon
& Co., Inc., and Investor Service Securities
Inc., both of
Washington, D. C.

Inc.

Nov. 10, 1960 filed 838,718 shares of common stock. Price
—$1 per share. Business—Development of oil properties.
Proceeds—For general corporate purposes. Office—5245
W.

Irving Park Road, Chicago, 111. Underwriter—The is¬

suer

intends to

become

made, and to offer
338,718 of the shares through its officers and employees.
The remaining 500,000 shares will be offered through
other

licensed

broker-dealers

"best

efforts"

basis.

Jan. 23, 1961 filed 500,000 shares of common stock. Pro¬
ceeds—For investment. Office—39 East Chestnut

lumbus, O. Distributor

—

St., Co¬
Interregional Securities Corp.,

Columbus, O.
Filmohm

Corp.

...

Dec.

27, 1960 (letter of notification) 110,000 shares of
stock (par 10 cents). Price—To be supplied
by
amendment. Business—Manufacturers of thin film elec¬
tronic components. Proceeds—For general

/common

corporate pur¬

vestors with

interest in diversified

income-producing

properties consisting principally of real estate interests.
Proceeds—For investment. Office
Bankers Securities
—

Philadelphia
February.

(managing).

Drexel

—

Offering—Expected

Co.,
eariy

Guild Musical Instrument
Corp.
*
Oct. 25, 1960 filed
110,000 shares of common stock. Price
—$3 per share. Proceeds — For general corporate pur¬

including debt reduction, machinery and equip¬
ment, inventory, and working capital. Office—Hobokqn,
N. J. Underwriter—Michael G.
Kletz & Co., Inc., New
York City.
Offering—Expected sometime in February.
poses,

•

Gulf Guaranty Land & Title Co.
(2/6-10)
Nov. 29, 1960 filed $750,000 of 7%
convertible subordin¬
,

ated

debentures, due 1968 and 150,000 shares of common
stock to be offered in
units, each unit to consist of $100
of

debentures

$200

and

unit. Business

per

common

stock.

Price—

The

development of a planned
community in Cape Coral, Fla. Proceeds—To reduce in¬
debtedness, repay a mortgage, construction, and general
—

corporate purposes. Office—Miami,
Street & Co., New York
City.

it Harvey
Jan.

(Fred)

1961

Proceeds

(no par).

For

—

Associates, Inc.
of notification)

(letter

stock

common

Fla.

Pricef-At

Underwriter-

30,000

par ($1 per share).
Address — Queen's

mining operations.

Howell Instruments Inc.

Oct. 4,

1960 filed 140,000 shares of outstanding common
stock. Price—To be supplied by amendment. Proceeds—
To selling stockholders, a Address
Fort

Worth, Texas.
Underwriters—G. H. Walker & Co., New
York, N. Y. and
Dewar, Robertson & Pancoast, San Antonio, Tex. Offer¬
—

Hydro-Electronics Corp. (2/15)
21, 1960 (letter of notification) 150.000 shares of
stock (par one cent).
Price—$2 per share. Busi¬
ness—The design and manufacture of
precision measur¬
ing equipment, automation equipment and general
Nov.

common

pre¬

cision fluid
N. Y.
•

controls.

Proceeds

Office—691

purposes.

—

Merrick

For general

Road,

corporate

Lynbrook,

I.,

Underwriter—Lloyd Securities, New York, N. Y.

Hydromatics,

Inc.

Nov. 25, 1960 filed $1,000,000
1971 with warrants for the
be

offered

debenture and

debentures, due Jan. 1,

purchase of

common

units, each unit to consist

stock

$1,000

one

warrant; and 20,000 outstanding com¬
shares. Price—To be supplied
by amendment. Busi¬

mon

ness—The

designing, manufacturing and selling of ball
loans, purchase addi¬
equipment and for working capital.
Office
5
Lawrence St., Bloomfield, N. J.
Underwriters
Paine,
Webber, Jackson & Curtis and Tucker, Anthony & R. L.
Day, both of New York (managing). Note—This state¬
valves. Proceeds—To retire bank

tional

—

ment is to

be withdrawn.

Hydroswift Corp.
Oct. 20, 1960 filed 70,000 sharesof common
stock.
—$5 per share. Business—The firm, which was
ized

Price
organ¬

February, 1957, makes and wholesales products
services for the
fiberglass industry, including par¬
ticularly fiberglass boats known as "HydroSwift" and
"Skyliner." Proceeds—For general funds,
including ex¬
pansion. Office — 1750 South 8th
St, Salt Lake City,
Utah.
Underwriter—Whitney & Co, Salt Lake Citv.Utah.

Geochron
Nov.
filed

Laboratories, Inc. (1/30-2/3)
29, 1960 filed 150,000 shares of common stock. Also
were 30,000 common shares
underlying 6% con¬

vertible

notes

and

60,000

warrants

purchase a like
be supplied by
amendment. Business—The operation of a laboratory at
common

shares.

Cambridge, Mass., to furnish
terminations

Proceeds

capital.

the

age

Price—To

rock

commercial basis, de¬
and mineral samples.

For

construction, equipment, and working
Office — 24 Blackstone St., Cambridge, Mass.
—

Underwriter—Globus, Inc. and Ross, Lyon & Co., both
of New York City.
j
Golden

Crest Records,

Inc.

(2/20-24)

16, 1960 filed 85,000 shares of 10c par class A com¬
mon
stock.
Price—$3 per share.
Proceeds—The firm
will use the proceeds of its first public offering for
working capital and general corporate purposes. Office
—Huntington, L. I, N. Y. Underwriters—Dean Samitas
& Co., Inc., Ill Broadway, New York City and Valley
Forge Securities Co., Inc., Philadelphia, Pa. (jointly).
it Grayco Credit Corp.
16, 1961 (letter of notification) $150,000 of 10-year
7% sinking fund debentures and 75,000 shares of com¬
mon stock
(par $1) to be offered in units consisting of

Jan.

June

Inc.

filed

Price—$2.50
and

600,000 shares of

per

rate purposes

common stock
(par $1)
Proceeds—To further the corpo¬

share.

and in the preparation of the
concentrate

enfranchising of bottlers, the local and national
pro¬
and
advertising of its beverages, and where

motion

Dee.

it Fifty State Mutual Fund, Inc.

21, 1960, filed 500,000 shares of beneficial interest.
be supplied by amendment. Business — The
company was organized on Dec. 20, 1960 to provide in¬

broker-dealer in the

licensed

states in which this offering is to be

number

Mandel

•

and

Elion

Instruments, Inc. (2/1)
Oct. 28, 1960 filed 60,000 outstanding shares of capital
stock (par 50 cents), together with five-year warrants
for the purchase of 6,000 new capital shares, to be of¬

Dec.

debentures, due 1976. Price—At 100% of principal

amount. Business—The manufacture

134th

Centre

Price—To

Dec.-16, 1960, filed $550,000 of 6% convertible subordin¬
ated

Office—121

Underwriters—Harrison & Co.,
Marron, Sloss & Co., Inc., New

ing—Indefinitely postponed.

General

Nov.

•

instruments.' Proceeds

purposes.

Canyon, Nev. Underwriter—None.

;

Industries, Inc.
Oct. 25, 1960 (letter of notification)
16,000 shares of
common stock
(par 25 cents). Price—$5 per share. Pro¬
ceeds
For equipment, advertising and sales, working
capital, research and development. Address — Clifton
Forge, Va. Underwriter—Storer Ware & Co., Roanoke,
•

75,000 shares of
per share. Busi¬

Greenfield Real Estate Investment Trust

Gala

Philadelphia, Pa. Underwriter—Harrison
Co., Philadelphia, Pa. (managing).

initiation

Mermaid Lane,

•

(2/28)

6, 1961 filed 500,000 shares of common stock.

acquisition of equip¬
repayment of existing
capital. Office—1200 E.

ment;

York

Supermarkets, Inc.
Jan. 17, 1961 filed 110,000 shares of common stock. Price
—$3 per share. Proceeds—To be used as working capital
to expand the number of supermarkets. Office—200 Main

electronic products. Proceeds—The

Brunswick, N. J. Underwriter—Alessandrini & Co., Inc.,

new

Nov. 28, 1960 filed 100,000 shares of common stock. Price
—To be supplied by amendment. Business—The manu¬
facture

retail super market.

Dec.

Sept. 27, 1960 filed 100,000 shares of common stock. Price
—$4.50 per share. Proceeds — For land, financing of

July

shares of
share. Busi¬

60,000

the
supplies for freezer use and the opera¬
Proceeds — For general
corporate purposes. Address—Route 18, Tices Lane, East

New

corporate

Bldg, Philadelphia, Pa, Underwriter

common stock (par 10 cents).:Price—$5 per
ness—The sale and servicing of home food freezers;

•

Edwards Industries, Inc.

•

(2/1-3)

(letter of notification)

1960

25,

general

York, N. Y.

institutions.

Nov.

Price—$4

ness—Manufacturers of precision

Philadelphia, Pa. and

Freop!ex, Inc.

(2/7)
notification)

stock (par 10 cents).

1960

equipment; also processes and prints black and white
photographic film. Proceeds—To reduce indebtedness in¬
curred by acquisitions, to pay notes due, and for general
corporate purposes.
Office—68 W. Columbia Street,
Hempstead, N. Y. Underwriter—Casper Rogers & Co..

Underwriter—Branum

Avenue, Secaucus, N. J.

Inc.

(letter of notification) 100,000 shares of
(par 50 cents). Price—$3 per share. Busi¬
ness—Manufacturers of stainless steel food service equip¬

•

(letter

stock

14,

common

and

stock (par 10

ness—Operating

selling

Exchange, Inc.

Foremost

Cerf

$100 of debentures. Price—$200
working capital. Office — 1012

For

Co., Inc., Nashville, Tenn.

i960

23,

of class A stock. Price
Business—The acquisi¬
tion, establishment and operation of bowling centers.
Proceeds—For general
business purposes. Office—99
West Main St., New Britain, Conn. Underwriter—Schirmer, Atherton & Co., Boston (managing). Offering—Ex¬

—

Grayway Precision, Inc.
Dec.

common

Underwriter—Floyd

Thursday, January 26, 1961

St., Johnson City, Tenn.

Investment

advertising, and for working capital. Office—1090 N. E.

Nov. 29, 1960 filed 150,000 shares
—To be supplied by amendment.

50 shares of common and
per

Market

Guaranty Title

1960

29,

to make loans to such
bottlers, etc. Office—
Building, Denver, Colo. Underwriters-

necessary
704

Equitable

Purvis & Co. and Amos C. Sudler &
Colo.

Ilikon
Dec. 23,

—$5

of common stock

share. Business—The company
1960, to undertake research and

field

Denver

(3/1)

1960, filed 75,000 shares

per

June

the

Corp.

Co., both of

"materials

was

engineering and science"

ceeds—To

Price

formed

development

Pro¬

carry on work on projects now in the
labo¬
ratory stage and for general corporate
purposes. Office—
Natick, Mass. Underwriter—Myron A.
Lomasney & Co
New York City.
''

Income
Dec.

29,

Planning Corp.

1960

cumulative
of class A
units

open

common

consisting

sharesof
for

(letter

notification) 5,000 shares of
(no par) and 10,000 shares
(par 10 cents) to be offered in
share of preferred
and
two

preferred stock
of

stock
one

common.

new

Price—$40 per unit.
Proceeds—To
branch office, development of
business and

working capital. Office—3300 W. Hamilton Boule¬
vard, Allentown, Pa. Underwriter—Espy &
Wanderer

Inc., Teaneck, N. J.

Volume

Number

193

6024

The Commercial

Industrial Leasing Corp.

415

1960

common

to selling stockholders. Office—515 S. Aiken Ave.,
Pittsburgh, Pa. Underwriter — McKelvy & Co., Pitts¬
burgh, Pa.
■/'
.

International

Business—Makes and sells diodes. Proceeds—To
a staff of production and sales engineers, fi¬
nance
new
product development, buy equipment, and
add to working capital. Office—90 Forrest St., Jersey

and

N. J. Underwriter—T. M. Kirsch Co., New York
Electronic

Research

Corp.

which

rocket engine industry.

Co.,
New York City (managing).
International

•

30,

Sept.

common

ness

Mosaic

San

Francisco,

Calif,

York

(1/30-2/3)

(letter of notification) 99,333 shares of
stock (par 10 cents). Price—$3 per share. Busi¬

Dec.

Proceeds

G. Harris &

machinery, and for working capital. Office—350 Equit¬
able Bldg., Denver, Colo. Underwriter —- Copley & Co.,
Colorado Springs, Colo. Offering — Expected in midFebruary.

Sept.

common
ness

(par $1).

general

27,

(2/27-3/3)

Corp.

machines.

due June

registered de¬

30, 1964; $300,000 of 6%

notification) 66,500 shares of
Pro¬
Price—$4.50 per share.

corporate

purposes.

Mountains.

Proceeds—To

—

Electronics

Sept. 22,

1960

common

stock

232

share.

Underwriter-

Manufacturing Inc.
(letter of notification) 100,000 shares of
class A (par 10' cents).
Price—$3 per

metal

Office

—

•

Marine View Electronics, Inc.. (2/6-10)

Oct.

28,

(letter

1960

notification)

52,800 shares of
$3 per share.
equipment. Pro¬
ceeds
For general corporate purposes.
Office — 88-06
Van Wyck Expressway, Jamaica
18, N. Y. Underwriter
—Fund Planning, Inc., New
York, N. Y.
common
stock
(par 10 cents). Price
Business—Manufacturers of electronic

—

Marmac

Industries, Inc.,
22, 1960, filed 108,000 shares of common stock.
Price—$4.50 per share. Business—The manufacture and
Dec.
sale

indebted¬

reduce

Proceeds—For expenses in the fabrication of sheet

parts for missiles, rockets, radar andN marine items.
Address—Hagerstown, Md. Underwriter—Batten & Co.,
Washington, D. C.

1960

Bernadino

Proceeds

For general corporate purposes.
Exchange Place, New York 5, N. Y. Under¬
writer—Federman, Stonehill & Co., New York, N. Y.

Jan.

bentures, series due June 30, 1965, and $300,000 of 6%
registered debentures, series due June 30, 1966. Price—To be offered for'sale iriJ$5#00 units at $4,450 per unit
for the 1964 debentures, at $4,315 per unit for the 1965

shares of
stock (par 10 cents). Price—$5 per share. Busi¬
Consulting services and installation of business

Office—40

Arrowhead Development Co.
10, 1961 filed 300,000 shares of common stock. Price
—$10 per share. Business — Managing and developing
the Arrowhead property, which is located in the San

8, 1960, filed $300,000 of 6% registered debentures,

—

Marine

(letter

stock

Court, Redwood City, Calif. Under¬
Associates, Menlo Park, Calif.

Management Assistance In<?. (2/15)
28, 1960 (letter of notification) 60,000

Dec.

Lake

Collateral

Invesco

series

due

Renato

writer—C. R. Mong &

Savings Stamp Co., Inc.
(letter of notification) 30,000 shares of
common stock Price—At par
($10 per share). Proceeds
—For purchase of creative design and printing of cata¬
logs, stamp booklets, advertising and for working cap¬
ital. Office—300 W. 61st St., Shreveport, La. Underwriter
—International Sales & Investment, Inc., 4501, North
Blvd., Baton Rouge, La.
Sept.

(par $2). Price—$5 per share. Proceeds—To retire out¬
standing loans, buy seed, buy or lease land, building, and

•

19, 1960 (letter of notification) 18,000 shares of con¬
vertible'preferred stock.
Price—At par
($5.75
per
share). Proceeds—For working capital and expansion.

Root Co.

1960

C. Nome Co.

Office—61

LP Gas

SafUower Corp.

Aug. 3, 1960 filed 60,000 shares of class A common stock

Dec.

notes

East North Island Street, Appleton, Wis.
Milwaukee Co., Milwaukee, Wis.

Co., Inc., New York, N. Y.

International

,•

Underwriter—Emanuel, Deetjen & Co., New

ceeds—For

For general corporate purposes.
Office—45 East 20th St., New York 3, N. Y. Underwriter

—B.

30,

common

—

4V2%

Dec.

stock, of

City.

Kurz &

Manufacture of glass mosaics by machines and

—

Inc.
common

The balance of the proceeds will be added to work¬

1969.

and

1960

processes.

......

be offered directly to five per-

company's

Electronics Corp.

products. Proceeds—To the selling stockholders.
Office—825 Bronx River Avenue, New York
City.
Un¬
derwriter—None.
1

offering price and 58,000 shares are to
a price related to the cur¬
shares at the time of the

the

Co., San
Oakland,

Co.,

metal

Business—The company operates four depart¬
in the New York City area.
Proceeds — To
purchase from the Prudential Insurance Co. of America,

$1,350,000

Business—The company is engaged
research, development and production of electronic
equipment for military use, and manufactures and sells
wire
products, electro-mechanical relays and certain

ment stores

ing capital.

Corp.

are to

Securities

in the

offering.

Proceeds—To

Office—135 West Magnolia Blvd., Burbank, Calif. Under¬

writer—Schwabacher

72,000 shares

Coast

Fontaine

the time of the sale.

Pro¬

offered for public sale at
rent market for
outstanding

outstanding loanu and increase working capital;

repay

items.

Grant,

19,

Department Stores,

AC instruments, and does subcontract work

precision

Klein

at the initial

sons

in the aircraft and

Ja^. 23, 1961 filed 130,000 shares of

supplied by amendment. Business—Pro¬
heat dissipating tube shield for electron tubes,

and

City (managing).

(S.)

•

(1/30)

I960 filed 220,000 shares of common stock, of
which 110,000 shares will be sold by the company and
110,000 shares for the account of selling stockholders,
duces

accessories

Pacific

—

and

1961 filed 9,450 outstanding common shares.
Trice—At the prevailing market price on the American
Stock Exchange or-in the over-the-counter market at

Godfrey, Hamilton, Magnus & Co., Inc., both of New

York

;

price—To

Loral

loan, purchase additional equipment,
enlarge plant facilities, hire more staff engineers, and
provide additional working capital. Office—76 Madison
Ave., New York City. Underwriters—Paul Eisenberg Co.,

establish

International

transparent

ceeds—To retire

Calif,

Note—Statement effective Nov. 23.

Jan.

ily in the business of manufacturing acetate and poly¬
ester

share.

Deci

Calif.

Industries, Inc. (2/6-10)
21, 1960, filed 115,000 shares of common stock.
Price—$3.50 per share. Business—The company, former¬
ly American Kleer-Vu Plastics, Inc., is engaged primar¬

Diode Corp.

Underwriters

Francisco,

IKIeer-Vu

City. Offering—Expected sometime in February.

Pa.

Y. Offering—Expected in

Dec.

July 29, 1960 filed 42,000 shares of 6% non-cumulative
convertible preferred stock (par $8). Price — $8 per

City,

Lexington Ave., New York, N. Y. Underwriter—Ira

early February.

To go

•

(479)

Investors Corp., New York, N.

(letter of notification) 1,000 shares of
stock (par $5). Price—$45 per share. Proceeds—

25,

Nov.

Financial Chronicle

and

cabinets.

wood

Proceeds—For

general

business

Office—Wenonah, N. J. Underwriter—Metro¬
politan Securities, Inc., Philadelphia (managing). Offer¬
ing—Expected in early February.
purposes.

with the balance for general corporate purposes,
including working capital. Office — Lake Arrowhead,
Calif. Underwriters
Van Alstyne, Noel & Co., New
York City, and Sutro & Co., San Francisco (managing).
Offering—Expected in late February.
>
ness,

—

and

debentures

ing
may

$4,190 per unit for the 1966 deben¬
purchasing, investing in and sell¬

Business—The

tures.

of real estate mortgages.
However, the company
buy, invest in and sell other types of securities.

Office—511 Fifth Ave., New

Lake
Jan.

Investors

Preferred

Life

Insurance Co.

(letter of notification) 150,000 shares of
(no par). Price—$2 per share. Proceeds<
capital and surplus accounts. Office—522 Cross St.,

Sept.

26,

—For

Little

1960

Baird &

P. O. Box 3662,
•

body

Securities, Inc.,

Rock, Ark. Underwriter — Life
Little Rock, Ark.

received

Machine, Diesel & Electronics, Inc. (1/30)
Dec. 9, 1960 (letter of notification)
100,000 shares of
common stock (par 10 cents).
Price—$3 per share. Pro¬
ceeds—For reducing
present obligations and working
capital. Address—Route 23, King of Prussia, Pa. Under¬
writer—Vestal Securities Corp., New York, N. Y.
J-F

Lake Asbestos

Jefferson

Corp.

(2/15)

9, 1961 filed $2,625,000 of 6%% series A subordi¬
nated sinking fund debentures due 1972 (with series A
warrants to purchase 262,500 common shares), and 175,000 shares of common stock to be offered for public
Jan.

shares and a
$60 debenture (with a warrant to purchase six common
shares initially at $5 per share).
Price—$80 per unit.
Business—The production and sale of asbestos. Proceeds
—For construction and working
capital. Office
1408
sale

units

of four

consisting

common

account

ital, which
the

the

may

to consist of
of

class

one

issuer's

borrowing

power.

Office

common

—

11700

Leasing

-Nov.

Credit

Corp.

common

Jouet, Inc.
28,

(2/6-10)

—

(letter

stock

Business

items.

the

Proceeds—For

purchase and

installation or

molds and for working capital. Office
Carroll Street, Brooklyn, N. Y.
Underwriter—Ed¬

machinery and
346

ward
®

H. Stern & Co.,

32 Broadway, New

York, N. Y.

1960

(letter

and

Fidelity

Investors

Service, East

Meadow, N. Y. Offering—Expected in mid-February.
Kanavau

Corp.

•

Life Assurance Co.

Sept. 30, 1960 filed 250,000 shares of common stock (par
$1). Price—$10 per share. Business—A real estate invest¬
companv. Proceeds—For acquisition of properties,
working capital and general corporate purposes.

of Pennsylvania

(1/31)

Nov. 29, 1960 filed 60,000 shares of capital stock.
be supplied by amendment. Proceeds—For
in

Office
Parker
•

Office—

Price—invest¬

income

producing securities and mortgages.
Philadelphia, Pa. Underwriter — Auchincloss,

—

Redpath, Washington, D. C.

Lifetime

Pools

Equipment Corp.

(managing).
(2/7)

July 1, 1960, filed 175,000 shares of common stock. Price
—$3.25 per share. Business—Engaged in the manufac¬
ture and

selling of fiber glass swimming pools.

Proceeds
machinery and
equipment; $200,000 to purchase raw materials, parts and
components; $40,000 for sales and advertising promotion;
$30,000 for engineering and development; and the bal¬
ance will be added to working capital.
Office—Renovo,
—$125,000

ment

new equipment; ad¬
vertising and promotion; engineering research and for
working capital. Office—470 Park Ave., S., New York,
N. Y. Underwriter—H. B. Crandall Co., New York, N. Y.

of notification)

stock

New1 York.

150,000 shares of"

120,000 shares, of
(par 25 cents). Price—$2.50 per share.
Proceeds—For working capital and expansion. Address
—Seattle, Wash. Underwriters—Planned Investing Corp.,
28,

(letter of notification)

stock (par one cent). Price—$2 per share. Busi¬

will

used

purchase

stock

common

Baltimore, Md.

open

(man¬

new

licensed

departments

1961.

Building, Kansas City, Mo. Under¬
Co., Inc., Kansas City, Mo.

Securities

(par five cents).

100,000 shares of
Price — $3 per share.

Business—Manufacturers of testing equipment.
—For

general

corporate

Proceeds

Address—Mineola,
Underwriter—S» Schramm & Co. Inc., New

I., N. Y.

York

purposes.

City.

Mesabi Iron Co.
Jan.

10, 1961 filed 180,000. shares of capital stock, to be

offerbd for subscription by the company's stockholders.
Price—To be supplied by amendment. Proceeds—To es¬
Fifth

reserve

for

1960

tax

payments. Office

452

—

Ave., New York City. Underwriter—None.

Metropolitan Securities, Inc.
17, 1960 (letter of notification) 100,000 shares of
A common stock (par $1).
Price—$3 per-share.
Proceeds
For working capital.
Office — 919-18th St.,
N. W., Washington, D* C.
Underwriter—Metropolitan
Brokers, Inc., Washington, D. C.
Nov.

class

—

•

Mid-America

Oct.

ceeds—For payment of bank loans;

ment

Jungle Juice Corp.

Oct.

common

1960

Inc.

manufacture, research, sale and distribution
of communications equipment and related products. Pro¬

of notification) 300,000 shares of
(par five cents). Price — $1 per share.
The manufacture of dolls, toys and similar-

1960

common

28,

—

Mercury Electronics Corp.
30, I960- (letter of notification)

tablish

(2/14-17)

ness—The

Nov.

Office

Medco, Inc.
19, 1960 (letter of notification) 60,000 ghares of class
common stock
(par 10 cents). Price—$5'per share.

Street, New York City. Underwriter—Edward Lewis"
Co., Inc., New York (managing).

Washington, D. C.
Nov.

•

34th

Lee Communications

area.

Dec.

29, 1960 filed 200,000 shares of class A stock and;

expansion, and the bal¬
ance for working capital. Office—404 No, Frederick Ave.,
Gaithersburg, Md. Underwriter — Hodgdon & Co., Inc.

Boston

writer—Midland

accounts receivable, inventories and purchase of equip¬
ment. Proceeds—For working capital. Office—440 West

establish distributorships,

the

Proceeds—To

200,000 warrants to be offered in units of one share and!
one warrant. Price—$4 per unit. Business—The company

Office—211 Altman

plans to engage in business of advancing funds to finance

price and the

basis of the rights offering will be supplied by amend¬
ment. Proceeds—To establish sales and information cen¬

ters,

Shaker

subscription by

be offered for

stock. Price—The

be supplied by amendment.
produces paper cups, straws,

Dec.

Blvd., Cleveland, O. Underwriter—Hayden, Stone & Co.,
New York City (managing). '
•

aging).

to enhance

and 3 shares

share of class A common

common,

holders of its

Division

present

be used for acquisitions

—

company

Underwriter—Lehman Brothers, New York City

outstanding

stock, are to be offered for
holders thereof. Price—To
be supplied by amendment. Business—The company was
formed last November, and has gained or will gain con¬
trol of 81 corporations. The company will lease trucks
and other commercial vehicles on a long-term basis,
and will engage in the intrastate operation of trucks
as a local contract carrier. Proceeds—For working cap¬
the

Price

The

matches,
ice cream
cones
and
plastic
con¬
tainers. Proceeds—The company will
apply its funds to¬
ward the cost of additional equipment for its Plastics

Leaseway Transportation Corp. (3/8)
Jan. 11, 1961 filed 150,000 shares of common stock, of
which 75,000 shares are to be offered for the account
of the issuing company and the remaining 75,000 shares,

representing

—

book

Co.; White, Weld & Co. (jointly); Robert W.
Co., Inc.; Salomon Bros. & Hutzler. Bids—To be
in Chicago on Feb. 7 at 10 a.m. (CST).

„

Underwriter
A.
(managing).
• Jonker Business Machines,
Inc. (2/20-24)
Sept. 30, 1960 filed 50,000 common stock units, each unit

Whitney Building, New Orleans, La.
Edwards & Sons, St. Louis, Mo.

stockholders.
Business

Underwriters—To be determined by competitive bidding.
Probable bidders; Halsey, Stuart & Co. Inc.; Kidder, Pea-

stock

common

stock (par
of which 21,000 will be offered for the account of
company
and
$214,000
for the
account
of
selling

series

Funding Corp.

Investors

•'
common

$1)

(2/7)

1961 filed $3,000,000 of first mortgage bonds,
F, due Feb. 1, 1991. Proceeds—To finance part of
the company's construction expenditures, including the
payment of $2,500,000 of bank loans incurred for that
purpose. Office—101 West Second Street, Ashland, Wis.

York, N. Y. Underwriter—
wholly owned subsidiary

None. Note—This company is a
of

Superior District Power Co.

Maryland Cup Corp. (2/14)
29, 1960 filed 235,100 shares of

Dec.

Life Insurance Co.,

(letter of notification) 100,000 shares of
stock (par 25 cents). Price — $2.75 per share.
Proceeds—For capital and surplus accounts. Office—318
Northwest 13th St., Oklahoma City, Okla. Underwriter—
F. R. Burns & Go., Oklahoma City, Okla.
11,

1960

common

ic Mid-Eastern Electronics, Inc.
(letter of notification) $150,000 of 7%

Jan. 18, 1961
vertible
benture.

subordinated
Business

equipment.

—

debentures.

Price—$100

Manufacturers

electronic

Proceeds—For general corporate

Office—32 Commerce

con¬

de¬

per

test

purposes.

Street, Springfield, N. J.

Under¬

writer—None.
•

Midland

Capital Corp.

(1/30-31)

Dec. 16, 1960

filed 1,300,000 shares of common stock (par
$1). Price—$12.50 per share. Business—The corporation
was organized in August 1960 by Marine Midland Corp.,
a bank holding company, as a small business investment
company. Proceeds — To provide management services
and investment capital to small business concerns. Of¬
fice—241 Main St., Buffalo, N. Y. Underwriters—East¬
man Dillon, Union Securities &
Co., and Granbery, Marache &

Co., both of New York City (managing).
Continued

page

The Commercial and Financial Chronicle

(480)

•-

Continued

from

page

•

--•

—

Midland-Guardian Co.

(2/6-10)

Oct. 27, 1960 filed 100,000 shares oi common stock. Price
-—To be supplied by amendment. Business ;— The firm

finances

cars;

wholesale

chase

Midwestern Acceptance Corp.
Sept. 8, 1960, filed 1,169,470 shares of common stock and
$994,050 of 6% debentures, to be offered for public sale
in

units

Price

one

per

unit.

and

stock

Business

850

debentures.

will do
financing in the home building industry. Pro¬
ceeds
To start its lending activities. Address — P. O.
Box 886, Rapid City, S. D. Underwriter—None.
—

The

—

company

Milo

Electronics

Corp.

distributor of

(3/1)

debt

reduction,

electronic

inventory

equipment.

Proceeds—For

general

and

municipalities,

states,

States.

Sponsor—

Co., Ill Broadway, New York City.
ing—Expected in early February.
•

Mustang Lubricants,

Inc.

Offer¬

(2/1)

May 9, 1960 filed 74,410 shares of common stock (par
10c). Price—$5 per share. Business—The firm distributes

specialty lubricants for heavy duty equipment. Proceeds
—For general corporate purposes. Office — 2145 South
Clermont, Denver, Colo. Underwriter — Copley & Co..
Colorado Springs, Colo.
National Airlines, Inc.

1960 filed $10,288,000 of convertible subordi¬
nated debentures, due 1975, to be offered for subscrip¬
Sept.

21,

tion by

Dec. 27, 1960 filed 150,000 shares of common stock. Price
—$5 per share. Business—The company is a wholesaler
and

securities

territories of the United

Ira Haupt &

interim

—

tax-exempt

corporate

pur¬

holders of the outstanding common stock on the
basis of $100 of debentures for each 18 common shares
held. Price—To be supplied by amendment. Business—
Domestic and international transport of persons, prop¬
erty, and mail.
and

(managing).

Pre ceeds—To make payments on planes
indebtedness, with the balance

short-term

reduce

poses, Office—530 Canal Street, New York City. Under¬
writer— Myron A. Lomasney & Co., New York City

national

7. 77.'

;7:

Mineral Concentrates & Chemical

Co., Inc.

Nov. 10, 1960 filed 75,000 shares of common stock. Price
—$5 per share. Business—Production of beryllium oxide.
Proceeds

ments;

To pay two corporate notes; plant improve¬

—

and
experimentation with flotation
working capital. Office—1430 First National

research

process; and

Bank

Bldg., Denver, Colo. Underwriter—None.

Minitone
Jan.

Electronics, Inc.

filed 249,33373 shares of common stock,
of which 129,000 will be publicly offered. Price—$3 per
11,

1961

share. Business—The firm

organized last March for
the purpose of making and selling small DC motors and
certain consumer products using such motors. Proceeds
—For debt reduction and
general corporate purposes,
including working capital. Office—55 W. 13th St., New
York City. Underwriter—None.
v. ' '77*.
•

was

Minneapolis Gas Co.

Nov. 21, 1960 filed 228,346 shares of common stock being
offered
for
subscription by common stockholders of
record

Jan.

held

$29.25

with

the

basis

rights

one

share for each eight

expire

Feb.

and for additions to the property.

Office—739 Marquette
Ave., Minneapolis 2, Minn. Underwriter—Kalman & Co.,
Inc., St. Paul, Minn.
•

Model

Finance

May 26 filed

Service,

cumulative

second

pre¬

ferred stock—650 convertible series, $5 par—and $1,000,000 of 6Vz% junior subordinated debentures, due 1975.

Price—To be supplied by amendment. Proceeds—To be
added to the company's general working funds. Office—
202

Dwight Building, Jackson, Mich.
Kimball

Co., Chicago, 111.

Underwriter—Paul

Offering—Expected

Price

stock.

common

Proceeds—To

—

300,000 shares of
($1 per share).

par

purchase furniture and for working

which
and

—

Materials

1961

the

Corp.

filed

150,000 shares
will be offered for

50,000

(1/31-2/1)

common

sale

by the

stock,

company

remaining 100,000,

being outstanding stock, by
the present holders thereof. Price
To be supplied by

—Burnham &

Co., New York (managing).

Navajo Freight Lines, Inc.
May 9, 1960, filed (with the ICC) 250,000 shares of com¬
mon
stock, of which 189,000 shares, being outstanding
stock, will be offered for the account of the present
holders thereof, and 61,000 shares will be offered for
the account of the issuing company.
Price—To be sup¬

amendment.
of

Business—The

aluminum and

sories.

Proceeds

general

—

manufacture

For

the

•

corporate purposes.

Office—7018

Price—$12 per share.
Dowd

Co., De¬

common

stock.

Proceeds—For general funds.

Of¬

Broadway, New York City. Underwriter—R. F
Co., Inc., 39 Broadway, New York 6, N. Y.

it Mokan Small Business Investment Corp., Inc.
Jan. 17, 1961 filed 3,000 shares of common stock. Price
—$100 per share. Business—The company was organized
under

Kansas

law

October

1960

and

the Small Business Administration for
to operate as

ceeds—For
Walnut
•

applying

Federal license

small business investment company. Pro¬
general corporate purposes. Office — 719

Monarch Electronics

Homes,

Inc.

(2/6-10)

Nov. 28, 1960

filed 131,600 shares of common stock (par
which 66,668 shares are to be offered by the
company, and 64,932 shares for the account of selling
stockholders. Price—$9 per share. Business—The manu¬
$1),

ing capital and new product development. Office—7808
Carpenter Freeway, Dallas, Texas. Underwriter—Baker,
Simonds & Co., Detroit, Mich, (managing).
New Western

Underwriting Corp.

Oct. 25, 1960 filed $2,000,000 of 15-year 6% subordinated
convertible debentures. Business — The company which

in August, 1959, is developing, through
dealer-recourse finance business and a~
expansion. Price
Office—Helena, Mont. Underwriter—Wilson,

organized

was

par.

Ehli, Demos, Bailey & Co., Kook Bldg., 3203
Mont.

Normandy Oil & Gas, Inc.
Aug. 31, 1960 filed 750,000 shares of
—$1 per share. Business—Oil and

3rd Ave.,

stock. Price
gas exploration and
production. Proceeds — For general corporate purposes.
Office—620 Oil & Gas Bldg., Wichita Falls, Texas. Un¬
derwriter—None, but 102,500 of the shares are reserved
for commissions to selling brokers at the rate of- 15
shares for each

common

100 shares sold.

International, Inc., imports and sells electronic

and high fidelity parts and equipments
Proceeds—To
retire bank loans and for working capital. Office—7035
Laurel Canyon Boulevard, North Hollywood, Calif. Un¬

derwriter—Pacific Coast Securities Co., 240
Montgomery

Street, San Francisco, Calif.
•

Mortgage Guaranty Insurance Corp. (1/31-2/1)
Oct. 17, 1960 filed 155,000 shares of common stock
(par
$1). Price—To be supplied by amendment. Business—
Insuring lenders against loss on residential first mort¬
gage

loans,

principally

Precision

Instrument

Corp.
notification) 24,428 shares of
common stock (par 10 cents). Price—At-the-market (not
more than $2 per share). Business — Manufacturers of
precision instruments in electronic, aircraft and missile
industries. Proceeds
To go to underwriter. Office—
4400 Austin Blvd., Island Park, L. I., N. Y. Underwriter,
—Robert Edelstein Co., Inc., New York, N. Y. Offering—
Expected in early February.
27,

(letter

1960

P. & C.
Dec.

23,

Food

which 32,000
to

Markets, Inc.
filed 40,000 shares

1960

food

and

State.
and

Price—$12.50

Proceeds—For

for

New

stock

per

inventories

for

five

new

stores

corporate purposes.
Office — Geddes,
Underwriter—First Albany Corp., Albany,

general

York.

New York

12,

common

share (to public). Busi¬
operation of a chain of 46 retail self-service
grocery supermarkets in central New York

employees.

ness—The

will be offered for sale to public and 8,000

single

family

non-farm

Thursday, January 26, 1961

•

,■

Investment

1961 filed $725,459

■■

■«

•'

■

Co.

of joint venture interests to

be offered to the

public in units of $18,136. Proceeds—To
Office—1802 North Central Ave.,
Phoenix, Ariz. Underwriter — O'Malley Securities Co.,
real

estate.

•

■

•

v,'

Palomar

Patrician

Mortgage Co.
(2/6-10)
Dec. 15, 1960 filed $1,100,000 of subordinated convertible
debentures, due 1975. Price — At 100% of principal
amount. Business—The obtaining, arranging and servic¬
ing of real estate loans. Office—5th & University Ayes.,
San Diego, Calif. Proceeds — To retire bank loans and
for working capital. Underwriter — J. A. Hogle & Co.,
Salt Lake City (managing).
1
...

Paper Co., Inc. (2/15)
Oct. 14, 1960 filed 180,000 to 190,000 shares of common
stock (pari 10c). Price — To be supplied by amendment.
Business-7The company manufactures facial and toilet
tissues. Proceeds—For acquisition of
property, to acquire
machinery and equipment, and for repayment of certain
loans.
Office
485 Lexington Ave., New York, N. Y.
Underwriter
Hill, Darlington & Grimm, New York,
—

—

N. Y.
•

Peerless

Mortgage Co. (1/30)
(letter of notification; 430,000 shares of
common stock (par 20 cents).
Price—60 cents per share.
Proceeds—For general corporate purposes.
Office—403
Ursula Street, P. O. Box 187, Aurora, Colo. Underwriter
—Copley & Co., Colorado Springs, Colo.
7?
v
v;:
77 7 7
7
'7 7 t
•
Perry Electronic Components, Inc.
Nov. 30, 1960 (letter of notification) 75,000 shares of
common stock
(par five cents) Price — $4 per share.
Business—The production of electronic components used
by manufacturers of electronic instruments and equip¬
ment. Proceeds
For the purchase of electronic test
equipment and machinery; for advertising and sales pro¬
motion; for research and development; for the acquisi¬
tion of basic raw materials; for reduction of outstanding
indebtedness; for working capital and for general cor¬
Nov.

16,

1960

—

porate purposes. Office—81 Water St., Ossining, N. Y.
Underwriter—S. B. Cantor & Co., and Farrell Securities
Co., New York City. Offering—Imminent.

•it Personal Property Leasing Co.
1961 filed 150,000 shares of capital stock.

Jan. 24,

(managing).
Gas

convertible de¬

1, 1981 being offered for subscription
by stockholders on the basis of $100 principal amount
of debentures for each 16% common shares held of rec¬
ord

Jan.

($100)

Office—245

rights to expire on Feb. 8. Price—At
unit. Proceeds—For pipeline expansion.
Market
St., San Francisco, Calif. Under¬

with
per

writer—None.
•

Palm

supplied

amendment.

Price

Business—The

com¬

is engaged in the business of leasing a variety of
equipment and machinery to industrial and commercial
to

meet

their

specific

requirements.

working capital.

Boulevard, Los Angeles, Calif.
Tegeler & Co., St.

Proceeds—

Office—6381 Hollywood

Underwriter—Dempsey-

(Louis (managing).

Philadelphia Aquarium, Inc.
14, 1960 filed $1,700,000 of 6% debentures due 1975
170,000 shares of capital stock (par 50 cents) to be
offered in units, each consisting of one $100 debenture
and 10 shares of stock. Price—$150 per unit. Business—
Operation of an aquarium in or about Philadelphia.
Proceeds—To acquire ground and to construct an aquari¬
um building or buildings. Office—2635 Fidelity-Philadel¬
phia Trust Building, Philadelphia,. Pa.
Underwriter—
Stroud & Co., Inc., Philadelphia, Pa.
,

Oct.
and

Photo
Dec.

30,

Service,

Inc.

(2/23)

1960 filed

162,500 shares of common stock of
which 125,000 shares will be offered for public sale by
the company and the remaining 37,500, being outstand¬
ing, by the selling stockholder. Price—To be supplied by
amendment. Business—The processing of photographic
film, the wholesale distribution of photographic equip¬
ment and the operation of three retail camera shops in
the Chicago area. Proceeds—For construction and new
equipment, repayment of debt, purchase of stock or
assets of other firms in the
for

general corporate

photo-finishing business and

purposes.

Office

—

220

Graceland

Ave., Des Plaines, 111. Underwriter—Cruttenden, Podesta
& Co., Chicago, 111. (managing).
•

Plastic

Fibers,

Inc.

(1/27-2/3)

June 14

(letter of notification) 150,000 snares of common
stock (par 20 cents). Price—$2 per share. Proceeds—For
general corporate purposes. Office—Whitehead Avenue,
South River, N. J. Underwriter—M. R. Zeller
Co., New
York City.

•

7' 7'

Polychrome Corp.
Dec. 29, 1960 filed 125,000 shares of common stock. Price
—To be supplied by amendment.
Business—The design
and manufacture of offset

printing supplies and mimeo¬
graph stencils. Proceeds — For new facilities and new
products and for working capital. Office—2 Ashburton
Ave., Yonkers, N. Y. Underwriter—Westheimer & Co.,
Cincinnati (managing). Offering—Expected in March.
©

Polysomes, Inc.

Nov.

18,

1960

(1/27)

(letter

notification)

70,000 shares of
Price—$3 per share. Business
formed last July, will act as theatrical
producers and will produce jazz festivals, concerts, rec¬
cent par common stock.

—The company,

Transmission Co.

1960 filed $13,260,000 of 572%

par

pany

bentures due Feb.

31, 1960 filed 200,000 shares of common stock. Price
—To be supplied by amendment.
Business—The com¬
pany, organized in 1958 under the name Arrow Elec¬
tronics

Northfield

Dec.

Oct.

Verde

23,

purchase

North Billings,

Pacific

international, Inc.

(2/14-17)

For additional

Moon

New

St., Coffeyville, Kan. Underwriter—None.

Palo

firms

itely postponed.

—

(1/30-2/3)

Aug. 8, 1960, filed 75,000 shares of class A
fice—198

Insurance Co.

acces¬

South. Street,

Underwriter—Smith, Hague
(managing).
7

Mohawk

distribu¬

repayment of loans and for

Detroit, Mich.
troit

and

asphalt siding and related

■

Jan.

—

plied by amendment. Office—1205 So. Plate River Drive,
Denver 23, Colo.
Underwriters—Hayden, Stone & Co.
and Lowell, Murphy & Co. (jointly). Offering—Indefin¬

—

tion

cap¬

Building, Denver, Colo.
Equity General Investment Corp., First
National Bank Bldg., Denver, Colo.
Modern

Ltd.

136,000 shares of common stock to be
offered for subscription by common stockholders. Price
—To be supplied by amendment. Business—The rental
or
leasing of equipment to business organizations, in¬
cluding production, processing, and packaging machin¬
ery. Office—1 Plainfield Ave., Elmont, N. Y. Underwriter

—At

ital. Office—First National Bank

Underwriter

Jan.

Equipment Rental,

life insurance business. Proceeds—For

it Modern Furniture, Inc.
Jan. 12, 1961 (letter of notification)
A

National

Dec. 20, 1960 filed

subsidiaries,

February.

class

pected in late February to early March.

facture and sale of mobile homes. Proceeds—For work¬

inc.

100,000 shares

general corporate purposes. Office — Miami Inter¬
Airport, Miami, Fla.
Underwriter — Lehman
Brothers, New York City (managing),
Offering—Ex¬

Price—

share. Proceeds—For repayment of bank loans

per

for

•

Office—606

Municipal Investment Trust Fund, Series A

counties and

Sept. 30 amounted to $31,529,000. Office—1100 First
National Bank Bldg., Cincinnati, O. Underwriter—Kid¬
der, Peabody & Co., New York City (managing).

•

Sept. 1, 1960 filed $20,000,000 of interest in the Fund to
be offered in 20,000 units. Business—The Fund will pur¬

insurance

Wisconsin

inventories of dealers in mobile homes and cars; makes
small loans directly to borrowers; and operates various

subsidiaries, including a life insurance com¬
pany. Proceeds—To repay short-term bank loans, which

capital and surplus.

Avenue, Milwaukee, Wis. Underwriter
—Bache & Co., New York City (managing). Note—This
stock is not qualified for sale in New York State.

discounts retail instalment sales notes for dealers in shell

homes, mobile homes, and

Proceeds—For

homes.

West

•

Developers Limited

ords and commercial films.

The firm also plans to enter
the development and merchandising of new
commercial
color sound process for industrial and
commercial ad¬

vertising. Proceeds—For working capital. Office—480
Lexington Avenue, New York City. Underwriters—M H
Meyerson & Co., Ltd., 15 William Street, New York
C?ty
(managing); Karen Securities Corp., New York City
and Selected Investors.
Brooklyn, New York.
Porce-Cote

Research

1960, filed 100,000 shares of common stock
(par 1 shilling). Price —$3 per share. Business — The
company intends to deal in land in the Bahamas.
Pro¬
ceeds—To buy land, and for related corporate purposes.

Development Corp.
(letter of notification) 50,000 shares of
class A stock (par 10 cents).
Price—$5 per share. Busi¬

Office—6

Proceeds—For general corporate
purposes.
Office—336
Uniondale Ave., Uniondale, N. Y.
Underwriter—Subur¬
ban Investors Corp.,

Sept.

Terrace, Centreville. Nassau, Bahamas. Under¬
writer—David Barnes & Co., Inc., New York City.
Of¬
fering—Expected in mid-February.

Nov.

18,

1960

ness—Research

and

development of chemical

Uniondale, N. Y.,;

products.

Volume

g-'J

193

Number

6024

Commercial and Financial Chronicle

The

Product Design & Engineering, Inc.
Dec.

Riviera of Atlanta Motor Hotel at

1960

(ieccer of notification) 225,000 shares of
common stock
(par 10 cents). Price—$1.15 per share.
Proceeds—To purchase a plant and equipment and for

J#
''

—10

working capital. Office—7o0 S. Florida Avenue, Minne¬
apolis, Minn. Underwriters—Continental Securities, Inc.,
Minneapolis, Minn, and Sampair & Egan, Inc., St. Paul,

owned by two

2.8,

acq an e

fice—5U9

—lo

Progress Webster Electronics Corp. (2/27-3/3)
Jan. lo, 1961 filed 150,000 shares of common stock. Price

pany

•

ment

ing

equipment

and

■'A>

1-1

the basis of

one

each 10 shares held of record Feb. 15.

:;5r

Ratar Measurements

28,

Sept.

common

(letter

1960

lessor of
a

Inc.,

York

expenses

Dec.

28,

common

Aug. 29,

Office—600

dustrial Ave., Paramus, N. J. Underwriter
Securities Corn.. New York. N. Y.

14,

Estate

Mutual

—

per

new

Proceeds—For general corporate

Properties, Inc.
2, 1960 (letter of notification) 40,000 shares of class
stock (par $1). Price—$7.50 per share. Pro¬
ceeds—For working capital. Office—2540 Huntington
Dr.,
Dec.

common

Marino, Calif. Underwriter
Marino, Calif.
~
Shinn

Industries

Inc.

$765,000 of convertible

common

subordinated

deben¬

outstanding

common

stock

basis of $100 prin¬

common

supplied by amendment. Business—
development and production of plastics

research,

electronic instrumentation systems. Proceeds—For
working capital, the acquisition and development of
Plymouth Industrial Products, Inc., Sheboygan, Wis., and
for expansion. Office—Northfield, Minn. Underwriter—

In¬

Craig-Hallum, Inc., Minneapolis, Minn, (managing).
Screen

Gems,

Inc.

(2/6-10)

8,1960 filed 300,000 shares of common stock ($1 par)
subscription by common stockholders of

to be offered for

Columbia Pictures
the

estate.

Office—606 Bank of America Building, San Diego, Calif.
Distributer—Real Estate Mutual Distributors, Inc., San

basis

Corp., holder of all outstanding shares

one

shares of Columbia

of Screen

Gems for each five

Blalack

—

'•*

Co.,

San

; /

(2/6-10)

Nov. 29, 1960 filed

150,000 shares oi common stock. Price
share. Business—The manufacture, assembly and

-—$6

per
sale of aircraft and missile components and the construc¬

tion

industrial

and

repay a bank loan,
for working capital.

research

facilities.

Proceeds—To

expansion and inventory, and
Office — Wilmington, Del. Under¬
writer—Myron A. Lomasney & Co., New York City.

for

Shore-Calnevar, Inc.

(2/10)

Nov.

25, 1960 filed 200,000 common shares, of which
100,000 shares will be offered for public sale by the
company and 100,000, being outstanding shares, by pres¬
ent stockholders.

Price—To

Business—Designs

supplied by amendment.

produces automobile hub caps,
washroom dispensers and other janitorial supplies. Pro¬
and

ceeds—To repay outstanding bank loans and to increase
inventories.
Office
7701
East
Compton
Boulevard,
—

Paramount, Calif.
Underwriter — H. Hentz & Co. and
Federman, Stonehill & Co., both of New York City
(managing).
Simplex Wire & Cable Co.

Cambridge, Mass. Underwriter—Paine, Webber, Jackson
& Curtis, New
York City (managing). Offering—In¬
definite.
Soiite Products Corp.

(2/6-10)

Dec.

8, 1960, filed 750 units, consisting in the aggregate
$225,000 principal amount of 7% debentures due

shares.

Price

common

stock to be

—

$100 of debentures and 100 common
$300 per unit. Business — The design,
sale of

advertising signs, displays and
Proceeds—For general busi¬
purposes, including the purchase of tools, dies and
equipment; for research, sales and inventory and for ad¬
ditional working capital. Office—375 East 163rd St., New

miscellaneous plastic' items.
ness

York, N. Y.
New York

Underwriter—William David & Motti, Inc.,

City.

Jan.

1961

Co.

Southern

...

filed 900,000 shares of common stock (par
be supplied by amendment. Proceeds—

$5).

Price—To

For

the

repayment of bank loans and for

construction.

Offices—1330 West Peachtree

Street, N. W., Atlanta, Ga.,
and 600 No. 18th Street, Birmingham, Ala. Underwriter
—To be determined by competitive bidding.
Probable
bidders: Eastman Dillon, Union Securities & Co.; Blyth&
Co., Inc. and Equitable Securities Corp.
(jointly);
First

Eoston

Corp., and Lehman Brothers
(jointly);
Stanley & Co.; Kidder, Peabody & Co., and

Morgan
Merrill

& Smith Inc.

(jointly).

basis by participating employees under the Colum¬
bia-Pictures Corp. Employees'
Stock Purchase Plan.

Bids—To be received at the office of Morgan

Guaranty

•

Price—To

3:45

Rercwell

-—$4 per share.
in'

Business—The

common

company

stock.

was

assemblies

and

Proceeds

For

—

Corp.,

various

Price

organized

electronic

tures

Underwriter—William

York

•

Motti,

1
rs

Resisto Chemical, Inc. (2/1-3)
Aug. 29, 1960 filed 200,000 shares of common stock (par
10 cents).
Price—$2.50 per share. Business—The firm
makes

and

sells

H
in

the present

protective coatings for packaging and

:to

Richards Aircraft Supply Co.
Dec. 29, 1960 (letter of

Dec.

(par 10 cents).

Blaha

inventory,
33rd

200,000 shares of
Price—$1 per share. Pro¬

bank loan and

equipment loan, in¬
and for working capital. Office—111
an

Street, Fort Landerdale, Fla.

Co., Inc.,
Expected in April.

Long Island

City,

more,

Offering—■

share for each three shares held.

supplied by amendment. Proceeds—To

Price—To be

repay

loans from

Underwriter—Robinette

Co., Inc., Balti¬

Feb. 14.

uled at the N. Y. State Chamber of Commerce, 65

Liberty

Street, New York City, at 3 p.m. (EST) on Feb. 10.
Southwestern

Capital

Corp.

filed 1,000,000 shares of common stock.
Price—$3 per share. Business—A closed-end investment
company. Proceeds—For investment purposes. Office—
1326 Garnet Ave., San Diego, Calif. Underwriter—None.
Sept.

30,

1960

Oil Producers, Inc.

shares of common stock. Price—
Proceeds—For the drilling of three wells
balance for working capital. Office—2720 West

March 23 filed 700,000

per

share.

and the

Mockingbird

Dallas.

Lane,

Underwriter

—

Elmer

Aagaard, 6 Salt Lake Stock Exchange Bldg., Salt Lake
City, Utah.
•

Speedee

Mart,

Inc.

(1/30-2/3)

_■

1960 filed 90,000 shares of common stock. Price
—To be supplied by amendment. Business—Enfranchis¬
ing others to manage and operate retail food stores under
the name of "Speedee Mart." Proceeds—For acquisitions,
Nov. 21,

equipment and store inventories. Office — 7988 Normal
Ave., La Mesa, Calif. Underwriter—J. A. Hogle & Co.,
Salt Lake City, Utah.
©

Stancil-Moffman Corp.

(2/14-17)

Sept. 30, 1960 filed 150,000 shares ot capital stock. Price
—$2 per share. Business — The research, development,
manufacture, and sale of magnetic recording equipment.

Investments

company.

Proceeds—For
Office—1620

working

Rand

capital

Tower, Minne¬

Office

—

921

North

Highland

Ave.,

Hollywood,

Underwriter—Pacific Coast Securities Co., San

Calif.

Francisco,

Calif.
•

Standard

Nov.

Shell

Homes

Corp.

(1/30-2/3)

1, 1960 filed 210,000 shares of common

stock and

of 9% subordinated sinking fund debentures,
Nov. 1, 1985, with warrants to be offered in 35,000
units consisting of six common shares, a $10 deben¬
ture, and two warrants.
Price — $17.50 per unit. Pro¬
ceeds
For construction, mortgage funds, and work-

$350,000

Underwriter—None.

Brothers, Inc.

21, 1960' filed 98,150. shares of-5% cumulative con¬
vertible preferred stock (par $20) and a like amount of
underlying common shares. Price—To be supplied by
amendment.
grocery

Business—The
a

(letter of

investments.

Seeman

19, 1961 filed $1,400,000 of limited partnership in¬
terests to be offered for sale in 140 units. Price—$10,000

partnership has entered into a
96-year, leasehold interest in The

Inc.

Dec.

Riviera Associates

contract to purchase

New York 15, N. Y. by
Information Meeting—Sched¬

Street,

Liberty

EST

due

Smelting, Refining & Mining Co. Office—75 Fed¬
St., Boston, Mass. Underwriter—None.

unit.

for

Co.,

p.m.

products. Proceeds—$200,000 will be used

Md.

apolis, Minn.

Jan.

per

Md.

investment
and

U. S.
eral

To be supplied by
distributor of

and

Corp.
Jan. 4, 1961 filed 1,000,000 shares of common stock/Price
—$1 per share. Business—A non-diversified closed-end

• RiYmond-Eureka Mining Co.
24, 1961 filed 103,133 shares of capital stock, to be
offered to stockholders for subscription on the basis of
new

1960

Jan.

one

19,

Underwriter—

—

notification) 150,000 shares of
class A common stock (par 10 cents).
Price — $2 per
share.
Proceeds—To start operations in manufacturing
and selling boats.
Office—2228 McElderry Street, Balti¬

notification)

stock

Price

wholesaler

Pierce, Fenner

Lynch,

Southwestern

short-term

reduce

Sea3arsder

•

crease

Business—A

Trust

borrowings, $56,000 for a partial
payment of a note due 1975, and the balance for working
capital. Office—122 East Washington St., Oklahoma City,
Okla. Underwriter—Francis I. du Pont & Co., New York
City (managing).

York City.

ceeds—To retire

(1/36-2/3)

holders thereof.

food and allied

fabrics, and products used in insulation. Proceeds—For
working capital ($235,358),7with the balance for ma¬
chinery, equipment, and general corporate purposes.
Office
New
Castle
County Air Base, New Castle
County, Del. Underwriter—Amos Treat & Co., Inc., New

common

Co.

filed

1960

amendment.

—

/./l'

70,000 shares"of common stock, of
which 62,840 shares are to be offered for the account
of the issuing company and 7,160 shares, representing
outstanding stock, will be offered for the account of

Inc., New

required under the operating agreement. Office

Scrivrcer-Stevens

Dec.

City.

David

supplied

New

equipment, plant expansion and
Office—129 South State Street, Dover,

Del.

Fifth Avenue, New York, N. Y. Underwriting—
Hemphill, Noyes & Co., and Hallgarten & Co., both of
York City.

components

new

working capital.

the

—711

manufacturer of electronic

other

amendment.
Business—The
production and distribution of television feature films,
shorts and commercials. Proceeds—For general business
purposes and the making of payments to Columbia Pic¬

December, 1960, to acquire all of the outstanding stock

of Renwell Electronic

Pictures, and for subscription

same

Electronics Corporation of Delaware

(2/20-24)
9, 1961 filed 100,000 shares of

Jan.

••

(2/14)

Diego, Calif.

\ f;

Sept. 28, 1960 filed 118,000 shares of outstanding capital
stock. Price—To be supplied by amendment. Office—

manufacture and

Schjeldahl Co.

and

Plymouth

real

pur¬

Records, Inc.
(letter of notification) 100,000 shares of
(par one cent). Price—$3 per share. Busi¬
manufacture and distribution of long-playing

Price—To

The

Dec.

investment

tures, due 1971. The debentures will be offered to holders

Fund

specializing in

Shareholder

1960

and

of the

200,000 shares of beneficial interest.
share. Business—An open-end real estate

investment trust

28, 1960 filed 9,000 outstanding shares of

stock

1960 filed

Price—$5

Brand, Grumet & Seigel,

W., Washing¬

ton, D. C. Underwriter—None.

offered in units

Nov.

ness—Manufacturers of electronic and replacement
parts
for television receivers and other electrical circuits. Pro¬

Real

—

struction. Office—1823 Jefferson Place, N,

February, 1968, and 75,000 shares of

held.

purposes.

nickel

stock

(G. T.)

(3/1)

corporate

rolled

products. Proceeds—For
Office—1437 Bailey Ave.,

(managing).

Partnership
18, 1961 filed $426,000 of limited partner^nip inter¬
Price—$1,000 per unit. Business—The partnership
was
formed under Maryland law in December 1960 to
buy a 50% ownership in The Shadyside Apartment De¬
velopment in Suitland, Md., which is now under con¬

porate purposes. Office — 1631 Broadway, New York
Citi\ Underwriter—A, T. Brod & Co.. New York, N. Y.

(letter of notification) 75,000 shares of
stock (par 10 cents).
Price—$4 per share. Busi¬

general

non-

stevedoring business,
of

k Stvadyside Gardens Limited

records. Proceeds—For debt retirement and general cor¬

1960

ceeds—For

and

nickel

purposes.

City

manufacturer

cipal amount of debentures for each 100

Inc.

Inc., which

Roulette

Avenue, New York 17, N. Y.

Electronics,

Roblin,

Office—233 Holden Street, Seattle, Wash. Under¬
writer—Craig-Hallum, Inc., Minneapolis, Minn.

offering the stock, and the balance will be used to reduce
indebtedness and purchase equipment. Office—Mt. Ver¬
non, N. Y. Underwriter—The James
Co., 369 Lexington
Ram

other ferrous

equipment,

rolled

agencies.

ness—The

the

cover

and

will be consolidated

poses.

(1/30-2/3)

bemused

other

New

mental

outstanding note, $87,500 will be used for the
acquisition, constructing, and equipping of an additional

will

business

ruary.

San

high energy propellant systems, the de¬
velopment of a miniature rocket for application to
satellite and space vehicles and in the preparation of
proposals which have been submitted to certain govern¬

additional

$22,500

2414

Underwriter—Auchin-

company

steel

and

corporate

research

plant,

repay
—

Research Corp.
19, 1961 filed 300,000 shares of common stock. Price
—$2.25 per share. Business—The company is engaged in

15, 1960 filed 154,375 shaies of common stock (10c
per share. Proceeds—$30,000 will be used

to pay

Office

dan.

par). Price—$3

Oct.

broker

and

common

Nov.

Proceeds—To

capital.

process¬

★ Rocket

Proceeds—For

Inc.

Self-Service, Inc.

the

scrap

demolition

Rarac

1960, the

Buffalo, N. Y. Underwriter

equipment,
machinery, and
working capital.
Office —14801 California Street, Van
Nuys, Calif. Underwriter—Morgan & Co., Los Angeles,
•

carry

metals

anodes

(2/27-3/3)

notification) 85,700 shares of
Price—$3.50 per share. Business

Calif.

wording

Steel Corp., which operates
rolling mill producing bars, rods and other shapes of
steel and nickel. The
company will also have interests
ranging from 50% to 76% in a demolition contractor, a

Dec. 28, 1960
(letter of notification) 100,000 shares of
capital stock (no par) of which 16,000 shares are to be
offered by a selling stockholder.
Price—$3 per share.

Proceeds—For

for

use

geneial corporate purposes.
Office—190 Duffy Ave.,
Hicksville, N. Y. Underwriter—Blaha & Co., Inc., 29-28
41st Avenue, Long Island City 1, N. Y.
Radiatronics,

for

ferrous metals and Seaway

share for

Price—To be sup¬

—Manufacturers of electronic equipment.

eiectronic_systems.

and

buys and sells

general

Corp.

equipment

Drive, Silver Spring, Md.

with, and

stock (par $1).

other

law in December

Proceeds—To repay bank loans
and for construction. Office—1400 Washington Building,
Seattle, Wash. Underwiters—Blyth & Co., Inc., and Mer¬
rill L> nch, Pierce, Fenner & Smith, Inc., both of New
York City (managing).
•

com¬

Koouin-Seaway Industries, Inc. (2/27-3/3)
Dec. 29, 1960 filed 80,000 shares of class A stock. Price
—$6 per share. Business—Organized under New York

by amendment.

plied

7:
ft.

new

electronic

communications, instrumentations, data

and

Price

Business—Tne

electronics

specialized

Sons, New York City and Straus, Blosser & McDowell,.
Chicago (managing). Offering—Expected in early Feb-

ests.

Puget Sound Power & Light Co. (2/15)
iJ, 1961 filed $15,000,000 of first mortgage bonds,
series due 1991.
The registration also /covers 326,682
common
shares which .the company plans to offer to
stockholders

amendment.

Jan.

closs, Parker & Redpath, Washington, D. C.

Underwirter—Marron, Sloss & Co., Inc., New York City
(managing).

common

Reedie

Jan.

of Associates.

engineering and develop¬
engaged in the development and produc¬

indebtedness

and related products for residential, com¬
mercial and military use. Proceeds—For working capi¬
tal. O.fice—10th Street, and Morton Avenue, Chester, Pa.
components

custom

modern

electronic

gexierai partners

supplied

concern

tion

—$4.5u per share. Business—The company and its sub¬
sidiaries are engaged in the business of manufacturing,

developing

Of¬

Rixon

Electronics, Inc. (2/14-17)
Dec. 30, I960 filed
115,000 shares of capital stock.

Minn.

and

Atlanta, Ga. Proceeds

above property and for expenses.

Madison

Avenge, New York, N. Y. Under¬
writer—Group Equities, Inc., New York City which is

distributing

If:

(481)

fruits,
.

225th

Business

—

The

wholesale

distribution

products and the processing and sale of frozen

vegetables and prepared foods. Office—40 West
St., New York, N. Y. Underwriters — Gregory &

—

Office—Miami Beach, Fla. Underwriters—
Securities Corp. and D. Gleich Co., both of New

ing capital.
Aetna

York

City, and Roman & Johnson, of Ft. Lauderdale, Fla.
*

Continued

page

■\
50

The Commercial and Financial Chronicle

(482)

Thursday, January 26, 1961

b
Continued

from

Starfire

Sept.

page

subset; for initial production expenses of facsimile equip¬
ment to be made by its subsidiary Hogan Faximile Corp.,

Boat Corp.

ers—Baird

Oklahoma City, Okla.
Steel Crest

Nov.

22, 1960
$450,000 of 8%

shares of common stock;
subordinated sinking fund-debentures

Stephen Realty Investment Corp.
16, 1961 filed 1,400,000 shares of beneficial interest,
of which 1,000,000 shares will be publicly offered and
400,000 shares are to be exchanged for real estate ven¬
tures. Price—$5 per share. Office — 1930 Sherman St.,
Denver, Colo. Underwriter — Stephen Securities Corp.,
Jan.

710 American National Bank

Bldg., Denver, Colo.

Broadcasting Co.

(2/14-17)

Dec. 30, 1960 filed 263,000 outstanding shares of common
stock. Price—To be supplied by amendment. Business—
company

owns

and

operates five television

stations, seven radio stations, six F.M. radio
broadcasting stations and a daily newspaper. The com¬
through a subsidiary also owns a majority of the
voting stock in The Standard Tube Co., Detroit, Mich,
pany,

steel

tubing and

ucts. Proceeds—To the

—Reynolds

Co.,

other tubular

prod¬

selling stockholders. Underwriter

Inc.,

New

York City

(managing).

•

Sts aus-Duparquet Inc.
Sept. 28, 1960 filed $1,000,000 of 7% convertible subordi¬
nated

debentures, due 1975. Price—At par. Office—New
York City. Underwriters—To be supplied
by amendment.
•

Super-Market Distributors, Inc. (2/2)
Dec. 1, 1960 filed 200,000 outstanding shares of common
stock. Price—$5 per share. Business—The wholesale dis¬
tribution

non-food

consumer

items

supermarkets.
Proceeds—To selling stockholders. Office—39 Old Col¬
ony Ave., Boston, Mass. Underwriter—Clayton Securities

Corp.,

Boston,

Swiss

Mass.

preferred
be

stock

and

115,000 shares of

offered in units, each unit
preferred and one share of

stock

consist

one

Price—$10 per
Chalet Restaurant

common.

unit.

Business—Operates the Swiss
San Juan, Puerto Rico.
Proceeds—For the construc¬

tion

and

furnishing of

seven-story hotel adjacent to
Office—105 De Diego Avenue, San Juan,

the restaurant.

Puerto

Rico.

Underwriters—P. W. Brooks & Co., Inc.,
City and Compania Financiera de Inversiones,
Inc., San Juan.

New York

Tax-Exempt Public Bond Trust Fund

Jan.

16,

1961 filed $5,000,000 of interests

(5,000 units).

Price—To be computed on the basis of the trustees eval¬
uation of the underlying public
bonds, plus a stated
percentage (to be supplied by amendment) and dividing
the sum thereof by 5,000.
Business — The trust was
formed by John Nuveen & Co., Chicago,
111., to invest in

makes

Nuveen

States.

Sponsor

—

John

17,

(letter

1961

(par

one

The

company

ery

through

cent).

notification)

Price

—

87,500

Office—1873

share. Business—

per

designs and develops automation machin¬
systems of hoppers, "seeders" and other

designinnovations for the manufacture of industrial,
cosmetic, toy, plastics and other products. The company
proposes

ture

and

ture.

to adopt its oriented seeding devices to minia¬
sub-miniature electronic components manufac¬

Proceeds—To

develop a proprietary line of auto¬
machinery products, for working capital, to fill
orders, for oriented seeding and automation machinery,

matic

for patent

and

applications and the prosecution thereof.
Office—19-79 Steinway St., Long Island
City, New York.
Underwriter—First Philadelphia Corp., New York City.

£ Techmation Corp.
17, 1961 (letter of

Jan.

notification)

87,500

common stock
(par one cent). Price—$2 per share. Busi¬
ness—-Manufacturers of automated machinery. Proceeds

—For repayment of

machinery

note due

underwriter, purchase of
advertising and sales, re¬

and

equipment,
development, and working capital. Office—
19-79 Steinway
Street, L. I. C., N.Y. Underwriter—First
Philadelphia Corp., New York, N. Y.

•

and

Tech-Ohm

Sept.

Electronics,

I960

(letter

Inc.

notification)

99,833 shares of
(par 10 cents). Price—$3 per share. Pro¬

common

stock

ceeds

For general corporate
purposes. Office

33rd

—

Street,

—

36-11

Long Island City, N. Y. UnderwriterCo., Inc., New York, N. Y. Offering—Im¬

Edward Lewis

minent.
•

TelAutograph Corp. (2/1)

Nov.

18, 1960 filed

an unspecified number of
shares of
(par value $1), to be offered to common
stockholders for subscription. Price—To be
supplied by
amendment. Proceeds—For initial
production
common

stock

Telescriber

expenses

compatible with

Eastern Parkway,

analog

convertible subordinated

used

for the erection of a primary alu^facility. Office — Los Angeles, Calif.

pay

reduction

Underwriter—Straus, Blosser & McDowell, Chicago, 111.
(managing).
United Telecontrol Electronics,

Inc.

Dec. 8, 1960

(letter of notification) 60,000 shares of com¬
(par 10 cents). Price—$5 per share. Business
—Manufacturing components designed for use in con¬
mon

corporate pur¬

stock

nection

with

telephone and telegraph communication
a prime contract basis.
Proceeds —For
general corporate purposes, including working capital.
Office—Monmouth County Airport, Wall Township, N. J.
Underwriter
Richard Bruce & Co., Inc., New York,

N. Y.
Co., Michael & Co. (managing),
Co., Inc., all of New York City. Offering

will

minum

Brooklyn,

equipment

Underwriters—Dresner
Satnick

Corp.

Development Co.,

Proceeds—For general

instruments.

poses.

and

Aluminum

Pacific

United

debentures, due 1975. Price—To be supplied by amend¬
ment. Proceeds—Together with other funds, the proceeds

ness—The manufacture and sale of electronic components
and

—Expected in late February.

—

Texas Gas Transmission

Corp. (2/8)
30, 1960 filed 300,000 shares of common stock (par
$5). Price—To be supplied by amendment. Business—
The operation of an interstate pipeline system in Louisi¬

New York.

Dec.

Electronics

Universal

Laboratories Corp.

(1/30-2/3)

Arkansas, Mississippi, Tennessee, Kentucky, Illinois,
Ohio. Proceeds—To be applied toward 1961
expansion program estimated to cost $27,000,000. Office
—416 West Third St., Owensboro, Ky."' Underwriter—

Oct. 28, 1960 (letter of notification) 75,000 shares of com¬
mon stock
(par 10 cents).
Price — $4 per share. Busi¬

Dillon, Read & Co., Inc., New York City

modern

ana,

Indiana and

ness—The
ment

(managing).

Inc.

ceeds

Dec.

27, 1960 filed 315,089 common shares of which 285,000 shares will be offered for the account of the issuing
company

known

are

distributes German made Stihl chain
Kart"
and

saws

makes cryogenic gas

saws;

Urban

Underwriter—Union
Co., Memphis, Tenn.

phis,

reclamation and

Murphy

derwriter—Lowell,

Co., Inc., Denver,

capital.

Overlook Road, N. E., St. Peters¬
& Co. and R. James
Co., Inc., New York,| N. Y.

Office—4030

Fla.
&

Underwriter—Dunne

Finance

Corp.

of 6% convertible
1, 1976 ,and 150,000
underlying common shares. Price—At 100% of principal
amount. The debentures will be convertible at prices
1960

30,

subordinated

$1,000,000

registered

debentures

due

Jan.

$15
per share in January 1970. Proceeds—$96,560 to increase
volume of accounts receivable financing; $24,145 to in¬
ranging from

$7.50

per

January

1961

volume of direct industrial loans and dealer con¬

crease

$24,145 to increase volume of small loans; and
$700,000 for the reduction of notes payable. Office—Salt
tracts;
Lake
Lake

Underwriter—Whitney

City, Utah.
City, Utah.

Co.,

and
•

First

Trust

Toledo

Dec.

Plaza

Investment

1960, filed

Business

—

The

209

Trust

(2/14-17)

Beneficial Trust Certificates in

Investment Trust.
company

Price—$2,500 each.

will purchase

apartment

project of not less than 242 units on 10 acre site in Prince
Georges County, Md. Proceeds—To purchase the abovementioned apartment project.
Office—2215 Washington

Ave., Silver Spring, Md,
Inc., Washington, D. C.
Town Photolab,

Inc.

Underwriter—Hodgdon & Co.,
(1/30-2/3)

30, 1960 filed 150,000 shares of common stock. Price
—$4 per share. Business — The processing and sale of
photographic film, supplies and equipment. Proceeds—
For general business expenses. Office — 2240 Jerome
Avenue, New York City. Underwriter—Michael G. Kletz

Co., New York City.
Inc. (1/30-2/3)
notification) 100,000 shares of
(par $1). Price^-$3 per share. Proceeds—
working capital.
Office—1028 Connecticut Ave.,

Underwater
Nov.

common

For

1960

stock

Vector

Storage,

(letter of

Industries, Inc.

(2/20-24)

(letter of notification) 150,000 shares ol
common stock
(par 10 cents). Price—$2 per share. Pro¬
ceeds—To pay in full the remainder of such subscription
to capital stock of International Data Systems, Inc. and
to retire outstanding notes. Office—2321
Forest Lane,
Garland, Tex. Underwriter—Plymouth Securities Corp.,
Aug. 29,

1960

New York City.
Vim

Oct.

Laboratories, Co.,

1960

26,

class A

(letter

common

Inc.

notification)

90,000
(par $1). Price—$2.75

stock

shares
per

share.

Proceeds—To provide funds for further expansion of the
company's operations. Office—5455 Randolph Rd., Rockville, Md. Underwriter—First Investment Planning Co.,

Washington, D. C.
Visual

12,! 1961

(par

five

Business—Manufacturers

educational

and

(letter of

stock

common

Dynamics Corp.

».

notification) 100,000 shares of
cents).
Price—$3 per share.
of

audio-visual

entertainment purposes.

device

for

Proceeds—For

general corporate purposes. Office—42 S. 15th Street,
Suite 204, Philadelphia, Pa. Underwriter—District Secu¬
rities, 2520 L Street, N. W., Washington, D. C.
if

(P. W.)

Jan.

18,

Voorhees, Inc.

1961

common

stock

(letter of notification) i00,000# shares of
(no par). Price—$3 per share. Proceeds—

To retire indebtedness of the
company, with the balance
for working capital. Office—941 N. Highland

Ave., Los

Angels, Calif. Underwriter—None.
West Texas

Utilities Co.

(2/15)

Jan.

Nov.

1961

stock

late February.

Jan.

Co., of Lincoln, Lincoln, Neb.

The Toledo Plaza

;

Salt

Tip Top Products Co.
Get. 4, 1960 filed 60,000 shares of class A common stock.
Price—To be supplied by amendment. Address—Omaha,
Neb.
Underwriters—J. Cliff Rahel & Co., Omaha, Neb.

16,

common

Colo.

(Reed A.) & Co.
>
Dec. 19, 1960 (letter of notification)
100,000 shares of
common stock (par 10 cents).
Price—$3 per share. Pro¬
ceeds—For building sites, installation and for working

Investment

(letter of notification) 100,000 shares of
(par $1). Price—$3 per share. Proceeds—
For expansion. Office—Minneapolis, Minn. Underwriter
—Stroud & Co., Philadelphia, Pa. Offering—Expected in

and

Thursby

Office—Mem¬

Securities

Tenn.

(no
cor¬

if Van Dusen Aircraft Supplies, Inc.
Jan.

for working capital.
Office—1366 W. Oxford Avenue, Englewood, Colo. Un¬
for expansion

debts,

Development Corp.

porate purposes, including debt reduction.

and Stihl "Go-

transferral systems, L-P gas thermo-shock weed control
devices, portable furnaces, etc. Proceeds—For the repay¬
ment

St., Hacskensack, N. J. Underwriter—Underhill

Aug. 30, 1960 filed 300,000 shares of common stock
par). Price—$10 per share. Proceeds—For reneral

gasoline engines; U. S. made tractor attachments

power

—

Securities Corp., 19 Rector Street, New York, N. Y.

30,089 shares,

Price—$3.50 per share. Business—Formerly
Agricultural Equipment Corp., this company

company.

manufacture, sale and-installation of equip¬
by schools and colleges in the instruction of
foreign languages (language laboratories). Pro¬
For general corporate purposes. Address — 510

used

Hudson

representing out¬
to be offered by two officers of the

and

new

are

standing stock,

Time

common

•

Aug. 24, 1960 filed $7,750,000 of

Inc.
1961 (letter of notification) 100,000 shares of
stock (par 10 cents). Price—$3 per share. Busi¬

common

Dec.

(2/27)

Jan.

Electric

Tensor
Jan.

1961

strong Corp., 15 William St., New York. N.Y.

ciates, Inc., 680 Fifth Avenue, New York City. Offering
—Expected in mid-February.

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

if Techmation Corp.

-V:

prompting machine for television and an elec¬
editor. Proceeds—To expand plant and sales
force, enter closed circuit television, repay a $20,000
loan, and for working capital. Office—155 West 72nd St.,
New York City. Underwriter—Robert A. Martin Asso¬

U. S.

Foster

United

.•

Bldg., Hamilton,

Bermuda

CVSfg. & Galvanizing Corp.
: A./.
(letter of notification) 100,000 shares of
stock (par 10 cents). Price—$3 per share. Pro¬
ceeds—To reduce current liabilities, sales promotion,
purchase inventory, and for working capital.
Office—
5165 E. 11th Avenue, Hialeah, Fla.
Underwriter—Arm¬

tronic tape

burg,

the

■

Office—Bank

common

Telescript C.S.P., inc.
Dec. 23, 1960
(letter of notification) 60,000 shares of
common stock. Price—$5 per share. Business—The firm

tax-exempt obligations of states, counties, municipalities
of

•

and

territories

•

Proceeds—For

open-end mutual fund.

new

Underwriters—Kidder, Peabody & Co., Bache
Co., and Francis I. du Pont & Co., all of New York

Jan.

17, N. Y. Underwriter—Equity Securities Co., New York,
.

Ltd.

Fund

City (managing). Offering—Expected in February.

Office—7 East 42nd St., New York

speaking telephone.

Marron,

Co., Inc., San Francisco and

Bermuda.
&

(letter

1960

International

United

—This is

Telephone & Electronics Corp.
18,

(2/27-3/3)

Inc.

Oct. 20, 1960 filed 1,000,000 shares of common stock (par
one Bermuda pound).
Price—$12.50 per share. Business
investment.

Thermo-Dynamics,

common

•

(2/6-10)
of notification) 52,980 shares of
common stock (par 25 cents).
Price—$5 per share. Pro¬
ceeds-—For general corporate purposes.
Business—Elec¬
tronic communications equipment and automatic, loud-

Chalet, Inc.

(3/6-10)
Jan. 4, 1961 filed 115,000 shares of 700 cumulative first

•

Bcatbuifders,

Sloss & Co., Inc., New York City.

—

Aug.

United

derwriters—Birr

1960

stock

Underwriter—None.

broad¬

casting

manufacturer

Ahalt

1961, filed 100,000 shares of common stock. Price
—To be supplied by amendment. Busineess—Makes and
sells fiberglas boats. Proceeds—To be added to working
capital. Office—9th and Harris, Bellingham, Wash. Un^

(letter of notification) 100,000 shares of
(par $1). Price—$3 per share. Business—
Patent holding and development of its patent structure
and preparation to develop for manufacture its patent¬
able products. Proceeds—For general corporate purposes.
Office
514 Hempstead Ave., West Hempstead, N. Y.
16,

common

New York.

•

Storer

W., Washington, D. C. Underwriter—Searight,
O'Connor, Inc., New York, N. Y.

Jan. 3,

Tele-Graphic Electronics Corp.
Dec.

(1/30-2/3)

Pa.

•

Angeles, Calif. Underwrit¬
Co., and Richard J. Buck & Co., both oi
New York City, and Chace, Whiteside & Winslow, inc.,
Boston, Mass.

Offering—Imminent.

Homes, Inc.
filed 180,000

($10 face amount), due Sept. 1, 1981; and 45,000 warrants
exercisable at $15 for the purchase of two shares and
one
debenture > (for which 90,000 underlying common
shares and 45,000 underlying 8% debentures were also
filed). The securities will be offered in units, each unit
to consist of four shares of stock, one $10 face amount
debenture and one warrant. Price—$18 per unit. Pro¬
ceeds—For the financing of homes sold by the company
and
its subsidiary, and for working capital. Office—
Center Square, Pa. Underwriters—Marron, Sloss & Co.,
Inc., New York City and Harrison & Co., Philadelphia,

—8700 Bellanca Avenue, Los

stock

(letter of notification) 70,000 shares oi
(par 10 cents). Price—$4.25 per share.
Proceeds—For working capital.
Office—809 Kennedy
Bldg., Tulsa, Okla. Underwriter — F. R. Burns & Co.,'

The

and the balance for the reduction of indebtedness. Office

1960

common

16, 1961 this subsidiary of Central and South West
Corp., filed $8,000,000 of first mortgage bonds, series F,
due Feb. 1, 1991. Proceeds—To repay bank loans
gnd for
expansion.
Office —1062 North Third Street, Abilene,

Texas.

Underwriters—To

be determined

by competitive
Halsey, Stuart & Co. Inc.;
Corp.; Merrill Lynch, Pierce, Fenner &
Smith Inc.;
Equitable Securities Corp.; Blyth & Co.;
Kidder, Peabody & Co.; Eastman Dillon, Union Secu¬
bidding.

First

rities

Probable

bidders:

Boston

Co.;

White,

Weld

/jointly).

Bids—Expected

Feb.

15.:

•

&
to

Co.,
be

Shields

and

received
...

■.

Co.

about

Volume

193

Number 6024

The

Commercial and Financial Chronicle

Western

Factors, Inc.
1960, filed 700,Ouo shares of common stock. Price
—$1.50 per share. Proceeds—To be used principally for
the purchase of additional accounts receivable and also
may be used to liquidate current and long-term liabil¬

lit

June 29,

Office —1201

ities.

Continental Bank Bldg., Salt Lake
City, Utah.
Business—Factoring.
Underwriter—Elmer
K. Aagaard, Newhouse Bldg., Salt Lake
City, Utah.
Westminster

(483)

Yuscaran
Mining Co.
May 6, 1960 filed 1,000,000 shares of com. stock. Price—
$1 per share. Proceeds—It is expected that some $100,000
win

used to

purcnase and install

Arizona

Jan.

preferred

essing of ore; $60,000 for rails, ties, rail cars and related
equipment; $10,000 for rebuilding roads; $30,000 for
transportation equipment; and $655,000 for working cap¬
ital.

amount

ness—This is

the

securities

mutual

new

holders

offer

fund, and its intention is to
$25,000 worth of acceptable

least'

opportunity

worth of such securities for
receive

will

maximum

exchanging

one

share in the

commission

each

$12.50

4%.

Office-

Parker, Elizabeth, N. J. Investment Ad¬
visor—Investors Management Co. Dealer
Manager—
Kidder, Peabody & Co., New York City. Offering—Ex¬
pected in early 1961.
-

Wesinnore, Inc. ..(2/1)
Dec.

.//

of notification)
150,000 shards of
stock (par 40 cents). Price—$2
per share. Busi¬

common

ness—Inventing, developing, producing

and marketing
equipment. Proceeds—For production,
and development; for repayment of loans and

of electronic

research

test

for working capital.

Office—Fanwood, N. J.

—Vincent, James & Co., Inc., 37 Wall
N. Y.

Underwriter

St., New York,

that

another

been

indefinitely postponed.

Zurn

South

•;

holders thereof. Price—To be sup¬
The

—

manufacture

building plumbing

drainage

products

and

assembly for
equipment, the
repayment of loans, and working capital. Office—Erie,
Pa. Underwriter—Lee Higginson
Corp., New York Citv
(managing). Offering—Postponed.

)

and

•

Wilier

Color

Television System,

ATTENTION
Our

to know about it

Department

that

can

would

prepare an

Dec.

Inc.

write

telephone

you

item

REctor

at 25 Park Place, New York

common

The company produces

steel and

wire

equipment for treating flat rolled
variety of ways, including chemical

change

through
through thermal

alloying
and
physical
treating. Proceeds—For the

gas

change

selling
stockholder,., JJftdenyriIqihTrPrescott, Shepard & Co., Inc.,
'

Cleveland.

/ /

expansion, working capital, the financ¬
ing of accounts receivable, and general corporate pur¬
poses.
Office—Astoria Blvd., and 110th St., Flushing,
L. I., N. Y.
Underwriters—Globus, Inc. and Ross, Lyon &
Co., Inc., both of New York City. Offering—Expected in

mid-February.
WoPard

Dec.

14,

Aircraft

Service

per

Equipment,

Inc.

filed
135,000 shares of common stock.
share. Business—The manufacture and sale

of equipment used to service commercial and
military
aircraft. Proceeds—For a new plant and
equipment, for
moving expenses and the balance for working capital.
Office—2963 N. W. 79th St.,

Miami, Fla. Underwriter—

Amos

Treat

Co., Inc., New York City
Offering—Expected in late February.

(managing).

H
<

Inc.

•

Advance

1960 filed 100,000 shares of stock, consisting of
18,591 outstanding shares of class A common stock; 19,155
outstanding shares each of class B, series B, C and D
common; and 23,944 outstanding shares of class B, series
E

Proceeds

common.

Business—Owns

—

For

the

selling

stockholders.

and

operates television station WTVJ,
Miami, Fla. and station WLOS-TV with its affiliates
Wj^OS-xYM and FM, Asheville, N. C.
The company
also

owns

and

operates television station WFGA, Jack¬
sonville, Fla., and it recently signed a contract for the
acquisition of station KVOS-TV, Bellingham, Wash.
It
also operates a chain of 23 motion picture theatres, sells
soft drinks and related
items, owns a franchise to bottle
and

sell

interest

Pepsi-Cola
in

the

Bahamas

and

Seaquarium at Miami, Fla.

holds
>

share.

Office—306

Avenue, Miami,' Fla.
Underwriters — Lee
Higginson Corp., New York and A. C. Allyn & Co., Inc.,
Chicago.
-5,

treet,

;

property, for constructing

t $
•

Los

Industries

Corp.

Business—Manufacturer of

Alabama
Jan.

id for

ilene,

filed

110,000

issuing company and 10,0G0 shares, representing out¬
standing stock, will be offered for the account of a
selling stockholder. Price — To be supplied by amend¬
ment.
Business
This firm, which up to npw has been
privately held, believes it is the largest independent
laboratory in America providing testing services for the
missle-space-aircraft industry. Proceeds) — For expansion, with the balance for working capital. Office—
128
Maryland St.. El Segundo, Calif. Underwriters—Kid¬
der, Peabody & Co., New York City, and Mitchum, Jones
&
Templeton, Los Angeles (managing). Offering—Ex¬
—

said property arid

shares of common stock, of
which 100,000 shares will be offered for the account of
1961

the
.

Wyte Laboratories
17,

pected in early March.

Power Co.

1961

radio

similarly constructed

Office—63-65

band.

the "Marlin 200." Pro¬

of the "Marlin 300," which

Mt.

Pleasant

with a ship-toAve., Newark,

company

wholly-owned sub¬

furniture.

—

Probable bidders:

Halsey, Stuart & Co. Inc.; White, Weld
Corp. (jointly); Harriman Rip¬
ley & Co., Inc. and Alex. Brown & Sons (jointly).

Proceeds—

Co.

Enterprises Inc.
18, 1960 it was reported that a letter of notifica¬
tion consisting of 100,000 shares of 10 cent par common
stock will be filed for this company. Price—$3 per share.
Business—The company is engaged in the manufacture

(3/23)

was

for zippers. Proceeds—For expansion and gen¬
eral corporate purposes. Office—11-54 44th Drive, Long
Island City, N. Y. Underwriter—Harwyn Securities, 1457
of parts

Broadway, New York City.
Brooklyn Union Gas

12, 1961 G. C. Griswold, Vice-President and Treas¬
urer stated that company has not made definite financing
plans but is considering an issue of $25,000,000 to $30,000,000 of mortgage bonds in late 1961. Office—176 Remsen St., Brooklyn
1, N. Y.

(jointly); Morgan Stanley & Co.; First Boston
Eastman Dillon, Union Securities & Co., Equi¬

Drexel & Co. (jointly); Leh¬
Brothers; Halsey, Stuart & Co. Inc. Registration—
Expected about Feb. 13. Bids—Expected at 11 a.m. (EST)

California Asbestos

March 23.

reported that this company is nego¬
sale of about $18,000,000 to $20,000,000
of bonds. Proceeds—For expansion of facilities. Office—

24, 1961 it
tiating for the

was

Antonio, Tex. Underwriters

Alberta

new

Trunk

Gas

Line

White, Weld & Co.,

Co., Ltd.

form

1960

of first

American

in the form

Co.

St.

of about $6,000,000 of capital notes and

$6,000,000

subordinated notes.

Office—

Louis, Mo.
American

Corp.

1960 it was reported that this company plans to
refile in February a registration statement covering 300,000 shares of common stock. This will be a full filing.

Dec.

Feb.

one

23.

new

the

form

$5,000,000

the

Based

the

about

11,170,000

somewhat
stock

below

the

estimated

common

Underwriter—R. F.

Underwriter

& Co., Inc.

Registration—Ex¬

Casavan

Industries

1960 it was reported by Mr. Casavena, President, that registration is expected of approximately
$11,750,000 of common stock and $10,000,000 of deben¬
tures. Business
The company makes polystyrene and
Sept. 21,

Proceeds—For expansion.

Broadway, New York 7, N. Y.

Dowd

pected in late January.

additional shares.
Price — To be
market price of the outstanding

—None.

Equipment Corp.
was reported that a full filing of about

1960 it

$300,000 of units, consisting of common stock, bonds and
will be made. Proceeds—For expansion of the
business. Office—97-02 Jamaica Ave., Woodhaven, N, Y.

Dec. 31, 1960, this would amount

the time of offering.

Office—195

223,400,000

Office—216

warrants

share for each 20 shares held of record

shares outstanding on
to

Dec.

$7,000,000 of bonds and
stock. Proceeds—For the repayment
W. Main St., Medford, Oreg.

approximately

common

loans.

bank

its stockholders

—

18, 1960 it was reported that the company expects
to come to market in Oct. 1961 to raise about $12,000,000

Telegraph Co.

21, 1960, the company
offering of additional shares to

Oregon Power Co.

California

Carbonic

(2/23)
announced that it plans

Merrill Lynch, Pierce, Fen¬

Oct.

intends to operate an amuse¬
ment and recreation park
on
196 acres of land near
Liberty, N. Y. Proceeds'—For development of the land.
Office—55 South Main St., Liberty, N. Y. Underwriter—
M. W. Janis & Co., Inc., New York City.
company

American Telephone &

Kidder, Peabody & Co.; Halsev, Stuart &

Co. Inc.; First Boston Corp:;
ner & Smith Inc.

Dec. 21,

Business—The

*<.:

pany's early need for long-term financing. With its 1961
construction program tentatively scheduled at $20,000,000, the company can wait at least until fall before it
needs financing. Proceeds — For construction.
Offire—*
2885 Foothill Boulevard, San Bernardino, Calif. Under¬
writers—To be determined bv competitive bidding. Prob¬
able bidders:

Playlands

Power Co...

18, 1961 it was reported that this company's plans
$8,000,000 of bonds will be governed more by
the conditions of the money market than by the com¬

3, 1960, Donald L. Barnes, Jr., executive vice-presi¬
dent, announced that debt financing is expected in early
1961

Electric

offer

Nov.

$4 000,000

Jan.

St., S. W., Calgary, Alberta, Canada.

Investment

not

California

mortgage bonds, is expected early in 1961.

Office—502-2nd

filing

Calif. Registration—Indefinite.

Bailey, President, announced that
financing of approximately $65,000,000 mostly in the

Sept.

full

a "Reg.,. A." Business—The company,.,
yet in operation but which has pilot
plants, will mine and mill asbestos. Proceeds—To set up/
actual operations. Address—The company is near Fresno,
Calif. Underwriter—R. E. Bernhard & Co., Beverly Hills,
a

which

Underwood,, Neuhaus & Co. *■'

—

Corp.

Sept. 28, 1960 it was reported that discussion is under
way concerning an offering of about $300,000 of common
_stock. It has not yet been determined whether this will

ic Alamo Gas Supply Co.
Jan.

Co.

Jan.

man

First Boston

Bo-Craft

$100). Proceeds—For expansion. Office—600 North 18th
St., Birmingham 2, Ala. Underwriters—To be deter¬
mined
by competitive bidding.
Previous bidders on
bonds included Blyth & Co., Inc., and Kidder, Peabody
&

Co. and

Nov.

reported that this subsidiary of the
Southern Co., plans to sell $13,000,000 of 30-year first
mortgage bonds and $8,000,000 of preferred stock (par

basis of

Jan.

t'-l

West

motel

writer—Standard Securities Corp., same address.

p
Hi

■

various leasehold improvements on the property. Office
—7805 Sunset Boulevard!/" Los Angeles, Calif.
Under¬

eds—

lance

i/i

WociderBowl, Inc.
April 14 filed 3,401,351 shares of common stock (par $2).
Price—$2 per share. Proceeds—For purchase of certain

'1
1/!)

Secu-

sells

and

makes

it was reported that the utility expects to sell
$20,000,000 of additional securities, possibly bonds
or
preferred stock, sometime during the first half of
1961. Office—Lexington Building, Baltimore, Md.
Un¬
derwriter
To be determined by competitive bidding.

For equipment and general
corporate purposes.
Office
—Washington, D. C. Underwriter—Allen, McFarland &
Co., Washington, D. C.

91%

North Miami

offering, consisting of a
undetermined number
Business — The
a
"water - tight,
un¬

of its $1 par common stock.

about

25, 1961 it was reported that a "Reg. A" filing cov¬
ering 100,000 shares of the company's 10 cent par com¬
mon stock is
expected by mid-February. Price — $3 per

and

(2/27-3/3)

Transistor Corp.

1960 the company reported that it is contem¬

Oct. 3, 1960

Jan.

San

Wometco Enterprises,

Dec. 30,

Baltimore Gas & Electric Co.

Prospective Offerings

table Securities Corp. and

1960

Price—$4

Underwriter—To be determined by com¬

ing. Note—The issuing

Corp.;
•

Light Co.

sidiary of Auto-Temp Inc.

Dec.

Proceeds—For

made

N. J. Underwriter—Mr. Roth, Comptroller, states that he
is actively seeking an underwriter to handle the offer¬

7, N. Y.

•

Wings & Wheels Express, Inc.
9, 1960 filed 85,000 shdrbg'bf common stock. Price
—$3 per share. Business—Engaged in freight forward¬
ing by air and terminal handling service at Chicago.

shore
2-9570

Office—501

sources.

was

Corp.

ceeds—For the development

stock. Price—To be supplied by amendment. Business—

bonds

breakable" marine radio known

similar to those you'll find hereunder.

29, 1960 (letter of notification) 80,890 shares of ckistock (par $1). Price—$3 per share. Proceed'.—For
general corporate purposes. Office — 151 Odell Avenue,
Yonkers, N. Y.
Underwriter—Equity SecuritL-s Co., 39
Broadway, New York City. Offering—IncT « nite.

deter¬

table Securities Corp. (jointly); Blyth & Co. and Dean
(jointly); Lehman Brothers,;Stone & Web¬
ster Securities Corp. and White, Weld & Co» (jointly);
Merrill Lynch, Pierce, Fenner & Smith Inc.

company

mon

Engineering Co., Inc.
30, 1960 filed 67,500 outstanding shares of

sale

Power &

time in March.

of shares

you're planning to register?

Corporation News

been

Sept. 20, 1960 it was announced that this subsidiary of'
Middle South Utilities plans the issuance of approximately $12,009,000 of 30-year first mortgage bonds, some

Atlantic

UNDERWRITERS!

Do you have an issue

Would

(Lee)

last

plating filing its first public
notification covering

Jan.

-Wilson

from outside

come

letter of

sale

yet

Boston

Sept. 12,

of container liner
board, cor¬
rugated board, chip board and box board. Proceeds—For
plant conversion and working capital. Office—10 North
Jefferson Road, Whippany, N. J. Underwriter—Val Alstyne, Noel & Co., New York City (managing).

not

some

quarter. The

Witter & Co.

Dec. 28,

The manufacture

has

plans

Inc.; Eastman Dillon, Union Securities & Co. and Equi-

re¬

search and development of a synchro-gear
atomic submarines. Proceeds—For new

Whippany Paper Board Co., Inc. (2/20-24)
1960 filed 250,000 shares of common stock (par
10c). Price—To be supplied by amendment. Business—

in the fourth

and

petitive bidding. Probable bidders: Halsey, Stuart & Co.

mechanical power transmission equipment, fluid control

devices,

1961

Ave., Phoenix, Ariz. Underwriters—To be
The

Arkansas
■

by amendment. Business

stocks

securities

and The First Boston

issuing company and 100,000 shares,
representing outstanding stock, are to be offered for the
account of the present

company

privately
26, 1959 through Blyth & Co., Inc., and The
Corp. The last sale of preferred stock on
June 18, 1958 and the last sale of common (to stockhold¬
ers on May 24,
1959) was also handled by Blyth & Co.
First

the

account

that this
quarter of

March

Industries, Inc.

Third

determined.

Jan.

5, 1961,
negotiating a merger
financing plans have

that

and

company

Sept. 26, 1960 filed 200,000 shares of common stock ($1
par), of which .100,000 shares are to be offered for the

plied

(letter

1960

reported

company

statement.

with

Fund, which

Westminster at

and adequacy of this

type

second

common

$250,000,000 will

writer—None.
racy

Co.

reported

mined. The company expects to spend about $320,000,000
on construction in the period 1961 to 1965 of which some

Office—6815 Tordera St., Coral Gables, Fla. Under¬
Note—The SEC has challenged the accu¬

Fund, Inc.
Oct. 14, 1960 filed 4,000,000 shares of
capital stock. Busi¬

Service

was

issue bonds in the

mill for the proc¬

Public

25, 1961 it

—

Approved
Nov.

Finance

Inc.

11, 1960 it was reported by Paul O. Sebastian, Vice-,

President-Treasurer, that the company is considering a
rights offering to stockholders of additional common
stock via a Regulation "A" filing, possibly to occur in
mid-1961.
Office—39 E. Chestnut St., Columbus, Ohio
Underwriter—Vercoe

Co., Columbus, Ohio.

polyurethane

insulation

for

and

processes marble for
to meet $10,000,-

construction. Proceeds—For expansion
000

backlog. Office—250 Vreeland Ave., Paterson. N. J.
be named. Registration—Expected in

Underwriter—To
late January.

/
Continued

page

f*.

vVV

(4G4)

The Commercial and Financial Chronicle

«>

Thursday, January 26, 1961

;VV
W

■

Continued

from

if Caxton

House Corp.

page

sisted of 232,520 shares offered at
$35 a share to holders
of

Jan.

24,

1960 it

reported that a full filing of this
constituting its first public offering,
Price—Approximately $3 per share. Busi¬
ness—Book
publishing.
Office—9
Rockefeller Plaza,
New York City. Underwriter—To be named.

company's

was

stock,

will be made.

:;f

•

,Ij!

Charles

The

18, 1961 it was reported that this company plans a
public offering of common stock. This will be a full fil¬
ing, registered secondary. Business—Operates a chain
of ibeauty salons. Office—11 E. 58th Street, New York
City. Underwriter—White, Weld & Co., New York City

vt||
jj#

fill'
V »>/

(managing). Registration—Expected in early March.

ji'-

Stroud &

Co.

was

Gas

reported by Mr. A. N. Porter of the

treasury

that

department

Proceeds—For expansion.
rado
•

«./!>

the

is
with reference
company

■■</')

Columbia

Gas

19, 1961 it

sell about

120

East

System,

was

Inc.

reported that this company plans to
or bonds and about
stock in 1961 or 1962. Office—

common

41st

N. Y. Underwriters

bidding.

Probable

Morgan Stanley &
Smith Inc., and

Sjil

St., Columbus 15, Ohio. Underwriter—Dillon, Read & Co

Commonwealth

•if

Jan.

4
Wii'

Office—72
—To

i|'!

W. Adams

determined

Community

Jan.

Street, Chicago, 111. Underwriters
by competitive bidding. Probable

$5,000,000

1961.

iii

Public Service Co.

10, 1961 it

sell

Office—408

7th

Street,

Fort

Worth 2,

Texas.

Probable
Webster

Securities
Corp.; Paine, Webber, Jackson &
Curtis; First Southwest Co.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly).

•(-

flashbulb
sell

Automated

in late

Sales

Corp.
by Frazier

The

—

makes

company

vending machine

called

film

Consolidated

17,

1961

Edison

was

Co.

reported

New

that

York,

this

and

DASCO, which will

sizes and prices,
processing. Office
Ave., South, Nashville, Tenn. Underwriter—
Negotiations are in progress with several major under¬

8th

Dynamic Center

writer—To be named.
•

Dynamic

Instrument

27, 1960, this

made.

netic

Price—$2

brakes

reported

and

stock

common

per

full

—

For

full filing
—To

additional

debt.

Office

writer—To

Films

stock

Inc.

duction

and

per

share.

Proceeds—For

the

Feb.

•

20,

1961

Houston

Inc.

6, 1961 it

lon,

plans

spend

$305,000,000 in 1961 for expansion of which
about $125,000,000 will come from outside
sources, prob¬
ably from the sale of bonds. Office—4 Irving Place, New
York City. Underwriters—To be determined
by competi¬

repayment
was

Union

Idaho

■:

tive

it!'

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;

First Boston Corp.; Morgan Stanley & Co.

$10,000,000

share. Proceeds—To increase capital. Office—2029 E.
St., Cleveland 15, Ohio. Underwriters — Joseph,

per
V.)

14th

i'.ijltl

Mellen

Miller, Inc., and Ball, Burge & Kraus, Cleve¬
(managing). Offering—Expected in late January.

land

yt/f

if Baffin Corp.
Jan.

reported

that

Reinsurance Corp.
was
reported by Walter H. Johnson,
President, that the company plans its first public offer¬
ing of an as yet undetermined amount of its $1
par

i960 it

28,

field

Business—The company will enter the
of reinsurance on a
multiple line basis. Office

—

Dallas
...

669, Yankton

Power

Sept. 14,1960 it
that there

1961, with
1506

Box

South

Dakota.

Mr. Johnson states that the
company
an
underwriter.

1:5

may

Underwriter—

is actively seeking

stated

possibly be

indication
Commerce Street,
no

by the company/s presidents
some

new

financing during

to type and amount. Office—

Dallas, Texas. Underwriter—To
bidding. Probable bidders*

be determined by
competitive

Delaware Power &
Light Co.
Dec. 23, 1960, Frank P.
Hyer,

Chairman, stated

company

i-Vv"

summer
,»

*■}

•t

Us-:

may
issue additional
of 1961
The

common

offering would be

stockholders first on the basis of
shares held. Based on the

made

5ron*o*gun Sept\30' 1960' the sale
418,536 shares

common

■!;p

;,(!■

stockholders

the

com¬

out-

would involve about

valued at about
$14,600,000.

fering

share for each

one

number

that this

stock

mon

10
.< n-

2nd

Ave., Miami, Fla.

Underwriter—
bidding. Probable bid¬
Fenner & Smith Inc. and

Pierce,

Kidder, Peabody & Co. (jointly); Halsey, Stuart & Oo
Inc.; White, Weld & Co.; First Boston Corp.; Blyth &
Co., Inc.

clude
occur

plans
the

was

for

borrowing

issuance

General

operations, which
securities, and

debt

may

The last of¬

June, 1956,

con-

•—

Electric

fi¬

bonds

for construction.

Underwriters—To

bidding.

Probable bidders

Co.

Inc.;

reported

deter¬
on

the

that

Blyth

Co.,

16,

Terminal

1961

was

RR.

this company plans
$8,500,000 of first mort¬

Office—710 North Twelfth Blvd., St. Louis,
Underwriter—Halsey, Stuart & Co. Inc., Chicago.

gage bonds.

reported that this company is devel¬

in the first quarter of

—

reported that this company plans.to
and about $5,000,000 of com¬
third quarter of 1961.
Proceeds—To repay
of

the sale later this year of about

Ford Motor Credit Co.

oping

the

and

Illinois
Jan.

Mo.

in¬

Indianapolis Power & Light Co.
According to a prospectus filed with the SEC

possibly

1961. Office—Detroit. Mich

Aug.

25, 1960, the company plans the sale of about $14,000,000

Resistance, Inc.

Sept. 19, 1960 it

was reported that the company will file
letter of notification,
comprising its first public offer¬
ing. Office—577 East 156th Street,

additional

securities in

Circle, Indianapolis,

1963.

lnd.

Office

—

Monument

—

if Industrial Control Products, Inc.
Jan/24, 1861 it was reported that the company plans to
file 165,000 shares of 100 par class A stock.
Price—$3
per share. Business—The design and manufacture of con¬
trol systems and subcontracted precision
machining. The

Bronx, N. Y.
Georgia Bonded Fibers, Inc.
Sept. 14, 1960 it was reported that registration of 150,000
shares of common stock is expected.
Offices—Newark,
N. J., and Buena
Vista, Va. Underwriter—Sandkuhl and
Company, Newark, N. J., and New York City. Registra¬
tion—Expected in late February or early March.
,
r

Georgia Power Co.

firm has recently begun to make
base

(10/18)

2.9, 1960 this subsidiary of the Southern Co.,
plied to the Georgia Public Service Commission for

to issue $15,500,000
of 30-year first mortgage
bonds, and $8,000,000 of new preferred stock. Proceeds—
construction, plant modernization or refunding of
outstanding debt. Office—Electric Bldg., Atlanta 3, Ga.

ding.

To be

for

bonds

included

be received

Geriatrics

Oct.

18.

Pharmaceutical

Corp.

•

Jan. 11, 1961 it was
reported that this firm is
letter of notification

planning a
shares of 100 par

common

stock.

covering 50,000
general

Proceeds—For

Harriman

Ripley & Co., Inc.; Lehman Brothers; Blyth & Co., Inc.,
Kidder, Peabody & Co., and Shields & Co. (jointly);
First Boston Corp.; Morgan Stanley & Co.;
Halsey, Stuart
& Co. Inc.; Equitable Securities
Corp., Eastman Dillon,
Union Securities & Co. (jointly). Previous bidders for
preferred were First Boston Corp., Lehman Brothers,
Morgan Stanley & Co,; Eastman Dillon> Union Securities
& Co.; and Equitable Securities
Corp. Bids—Expected
to

Industrial

determined by competitive bid-,

bidders

double-diffused, broad

yet

commercial

pro¬

tising and selling, inventory, and general funds. Office—
78 Clinton Road, Caldwell
Township, N. J. Underwriter
—Edward Hindley & Co., 99 Wall Street, New York
5,
N.
Y.
(managing). Registration — Expected in early
February.

ap¬

per¬

mission

—

diodes, but is not

development, adver¬

Dec.

Underwriters

silicon

duction of these items. Proceeds—For expenses of semi¬
conductor production, research and

For

Light Co.

was

To be named.
,1

Office—25

To be determined by competitive
ders:
Merrill Lynch,

stock.

common

reported that an undetermined
be offered in the Spring of 1961.

was

Office

Inc.;
Lazard Freres & Co., and First Boston Corp.
(jointly);
Merrill Lynch, Pierce, Fenner & Smith
Inc.; Kidder,
Peabody & Co., and White, Weld & Co. (jointly); Salo¬
mon Bros. & Hutzler, and Eastman
Dillon, Union Secu¬
rities & Co. (jointly); Equitable Securities Corp. Prob¬
able bidders on the common: Blyth & Co.,
Inc.; Lazard
Freres & Co.; Kidder, Peabody &
Co.; Merrill Lynch,
Fierce, Fenner & Smith, Inc.

•

was

Dakota

Nov.

loans.

Underwriter

was

mined by competitive
bonds: Halsey, Stuart

Proceeds—For gen¬
Office—105 West Adams Street,

Power & Light Co.

1960

Oct. 17, 1960 it

20, 1961, it

registration is ex¬
pected to be filed covering 150,000 outstanding shares of
common
stock
(no par).
Price — To be supplied by
amendment. Business—The
company makes agricultural
implements, feed grinding and mixing equipment for the
livestock
industry, and conveying and seed cleaning
equipment. Proceeds—To the selling stockholders. Office
—121 Washington
Ave., South, Hopkins, Minn. Under¬
writers—Lehman Brothers,-New York
City, and Piper,
Jaffray & Hopwood, Minneapolis, Minn, (managing).

24,

amount of bonds may

Continental Bank of Cleveland
Jan. 4, 1961 it was reported that this bank
plans to offer
publicly 16,000 common shares (par $10). Price—$26.50
a\ I;

Florida

mon

loans

Chicago 3, 111.

Oct.

bank

Power Co.

10, 1961 it

sell

Business—General real estate.

eral corporate purposes.

headed by Lehman Brothers, Eastman Dil¬
Securities & Co. and Salomon Bros. &

Jan.

Estate Trust

some future date, an SEC registration statement
covering 1,500,000 trust shares to be offered for public

sale.

Co.

Hutzler.

reported that this company plans to

was

and

nancing

•

Jan.

Power

Building, Houston, Texas.

v/ZH'/y
Real

Lighting

publicly sometime in 1961, probably in the form of pre¬
and debt securities, with the precise
timing de¬
pending on market conditions. Proceeds—For construc¬

reported that this family-owned
publishing business is contemplating its first public of¬
fering. Office—Greenwich, Conn. Underwriter—To be
First Continental

included

ferred

was

named.

determined

bidders

tion

Jan.

17, 1960 Mr. T. H. Wharton, President, stated that
between $25-$35 million dollars is
expected,.to, be raised

15.

Publications,

Co.

Oct.

motion

about

Insurance

7, 1961.

pro¬

picture films, the reduction
of indebtedness, and for
working capital. Office—619 W.
54th St., New York City. Underwriter—McClane
& Co.,
Inc., 26 Broadway, New York City. Registration—Ex¬
it Fawcett

National

rill

Oct. 28, 1960 it was reported that the
company will file
a
letter of notification consisting of
150,000 shares of
common

pros¬

Treasure Books, Wonder Books, and

by competitive bidding. Pre¬
Halsey, Stuart & Co. Inc.; Mer¬
Lynch, Pierce, Fenner & Smith Inc.; Salomon Bros.
& Hutzler and Drexel & Co.
(jointly); Equitable Secu¬
rities Corp.; Kidder, Peabody & Co. and White, Weld
& Co. (jointly). Bids—Expected to be received on Dec.
vious

—

early February.
Exploit

owning the largest interest. The

owns

Gulf Power Co. (S.2/7)
■/.:
Jan. 4, 1960 it was reported that this subsidiary of The
Southern Co., plans to sell $5,000,000 of 30-year bonds,
Office—75 North Pace Blvd., Pensacola, Fla.
Under¬

Stephens, Ark.
Registration—Expected

Underwriter—S. D. Fuller & Co.

publishing firm owned by Little Brown, Harpen's,
House, and Book Of The Month Club, with the

Proceeds—General corporate purposes. Under¬
writer—Copley & Co., Colorado Springs, Colo. Registra¬
tion—Expected in March.

was

long-term

surance.

reported that this company plans a
135,000 shares of common stock. Proceeds

reduce

25, 1960 it was reported that the company plans a
Regulation "A" filing of 120,000 shares of common stock.
Price—$2.50 per share. Business—Fire and casualty in¬

Roofing Co.
it

//■ ■/•:/• ;.y_//';V.

(EST).

Jan.

Avenue, Westbury, N. Y. Underwriter—T. W.
Co., Inc., 61 Broadway, New York City. Regis¬

1961

noon

if Guaranty

filing

tration—Imminent.

Feb. 28 at

jointly with Curtis Publishing Co. Office
—1107 Broadway, New York City.
Underwriter—Blyth
& Co., Inc., New York City
(managing).

New York

Elk

company

Bantam Books

working capital; for research and development of new
products and for the retirement of debts.
Office—59
Lewis &

this

equipment trust

year

Office—39

last-named firm

(par

Proceeds

that

reported

was

$5,400,000 of 1-15

pective issuer

10 cents) will
Business—Makes mag¬

shafe.

clutches.

that

(2/28)

Random

Corp.

company

150,000 shares of

Ry.

23, 1961 it was reported that this firm is contem¬
plating its first offering of common stock. Business—This

equipment,
Norcross, Ga. Under¬

—

Registration—Expected

Inc.

Jan.

Engineering Co., Inc.

working capital. Office

1961

Co.

it Grosset & Dunlap, Inc.

Oct. 3, 1960 it was reported that the
company plans a
full filing of its $1 par common stock. Proceeds—To
pro¬
mote the sale of new
products, purchase new
arid for

Northern

17,

sell

cates.

file, at

Inc.

company

the

plans
certifi¬
Broadway, New York City.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders; Salomon Bros. & Hutzler and
Halsey, Stuart
& Co. Inc., both of New York
City. Bids—To be received

many as 18 products of various
and will also accept exposed film for
—223

Dowd

January.

Great
Jan.

Jan7

Inc.

Under-'

pected

reported that this company plans to
debentures in the second quarter of

Farms

writer—R.

was

Underwriters—To be determined by competitive bidding.
bidders: Halsey, Stuart & Co. Inc.; Stone &

.■»)

Goshen

Nov. 16, 1960 it was reported
N. James,
President, that a "substantial" issue of common stock,
constituting the firm's first public offering, is under

•

Halsey, Stuart & Co. Inc.; First Boston Corp.;
Kidder, Peabody & Co.; White, Weld7& Co.; Blyth & Co.,
Inc.; Merrill Lynch, Pierce, Fenner & Smith, Inc.

Co.

bidders:

Hi¬

Edison

10, 1961 it was reported that this company plans to
$30,000,000 of bonds in the second quarter of 1961.

sell

Diversified

Jan.

-Proceeds—For expansion purposes. Office—215 N. Front
•

Probable

(jointly); Kidder, Peabody & Co., and
Lynch, Pierce, Fenner & Smith Inc. (jointly).

Merrill

Columbus & Southern Ohio Electric Co.

Sept. 22, 1960 it was reported the company will sell about
$10,000,000 additional common stock sometime in 1961.

Underwriter—

bidding.

Street, New York 17,
—To be determined by competitive
bidders: Halsey, Stuart & Co. Inc.;
Co.; Merrill Lynch, Pierce, Fenner
White, Weld & Co. (jointly).

:Sli

competitive

Proceeds—For

Dec.

$85,000,000 of debentures

$21,000,000

Mill'

Office—P. O. Box 1087, Colo¬

Springs, Colo.

Jan.

Co.

awaiting a hearing before the full FPC
to approval of its application for
expansion of its sys¬
tem, which will require about $70,000,000 of debt fi¬
nancing which is expected in the latter part of 1961.

til
it
|4rj

Registration—Imminent.

Interstate

Oct. 17, i960 it

company's

Street, Wilmington, Del.

determined

fice—45 Commonwealth

writers.

Colorado

(jointly).

Market

discussion. Business

^Colonial Mortgage Service Co.
Jan.
24, 1961 it was reported that this company is
planning to sell 100,000 shares of common stock. Office—
Philadelphia, Pa. Underwriters — Drexel & Co., and

V'vl)

6, on tne basis of one share ^r.^each
held.
Proceeds—For construction.
Office

—600

deluding the hiring of additional detail men. Of¬
Boulevard, Beilerose, L. I., N. Y.
Underwriter—T. M. Kirsch & Co., 52 Wall Street, New.
York City. Registration—Expected in late January.

poses-,

June

and Shields & Co,

Ritz

Jan.

[<;4
•;f

record

eight

corporate

pur¬

•

Gauge &

Oct, 5, 1960 it
mon

stock

was

will

Instrument Co.

reported

be. filed.

that

Proceeds

com-

~^^^ansiori'",of ""thS.

business, and for the manufacture of a new product by a
subsidiary. Office—1947 Broadway. Bronx. N Y Under¬
writer—R.

Dowd

Co.

Inc.

Registration—Expected

in late January.
•

Interstate

Power Co.

Jan.

•

10, 1961 it was reported that this company plans to
sell $8,000,006 of bonds and $4,400,000 of common stock
in 1961 or 1962.
Office
1000 Main
Street,'Dubuque,
Iowa. Underwriters
To be determined
—

by competitive
bidding.„ Probable bidders: Halsey, Stuart & Co. Inc.;
Lynch, Pierce, Fenner & Smith Inc.; Kidder,
Peabody & Co.; White, Weld & Co.; Salomon Bros. &
Merrill

Hutzler.

-v

-v"

Volume

193

Number 6024

The

Commercial and Financial Chronicle

(485)
Iowa-Illinois Gas & Electric Co.
Oct. 24,

1960 it

Donald

Mr.

was

Shaw

reported by the company
treasurer,
that the utility expects to come to

market, perhaps in mid-1961, to sell long-term securities
in the form of bonds and possibly
preferred stock with
the amount and

timing to depend

market

conditions.

1961 construction program is estimated at
$17 mil¬
lion of which $10-$11 million will have to be raised
ex¬
The

Office—206 E. 2nd St., Davenport, Iowa.

ternally.
Japan
Oct.

1960 it

was

announced

that

this

American Natural Gas

government-

plans a $20,000,000 bond issue in the
United States. Proceeds—For expansion.
Underwriters
—Dillon, Read & Co., First Boston Corp., and
Kidder,

Peabody & Co. Offering—Expected in the Spring of 1961.

000 of bonds in 1961.
Proceeds
For construction.
Of¬
fice—500 Griswold Street, Detroit
26, Mich. Underwriters
—To be determined by
competitive bidding. Probable
—

bidders:

Halsey, Stuart & Co. Inc.; First Boston Corp.;
Blyth & Co., Inc.

& Indiana Terminal RR. (2/1)
10, 1961 it was reported that the company plans to
sell $6,800,000 principal amount of first
mortgage bonds
due March 1, 1986.
Proceeds—To repay advances re¬
ceived from the Baltimore & Ohio RR. and the Southern

Office—70 Pine Street, New York 5, N. Y.

Un¬
determined by competitive bidding.
bidders: "Halsey, Stuart & Co.
Inc.; Salomon
be

Bros. &

Hutzler; Eastman Dillon, Union Securities & Co.;
Kidder, Peabody & Co.; R. W. Pressprich & Co.; First
Boston

Corp.

Bids—To

Pine Street, New York

received

City

Room

Feb. 1 at 12

2018, 70

noon

EST.

Laclede Gas Co.
Nov.
the

15, 1960 Mr. L. A. Horton, Treasurer, reported that
utility will need to raise $33,000,000 externally for

1961-65 construction program, but the current feel¬
ing is that it will not be necessary to turn to long-term
securities until May 1962. Office — 1017
Olive, St., St.
its

Louis, Mo.
7f

$4,000,000.

Proceeds

Jan.

24,

1961 it

was

reported that this perfume firm

contemplating its first public financing, to consist of
issue

York

City. Underwriter
City (managing).

York
•

stock.

common

Office—767
—

Fifth

is
an

Avenue, New

Goldman, Sachs & Co./ New

Long

Island Lighting Co.
25, 1961 it was reported by Fred C. Eggerstedt, Jr.,
Assistant Vice-President, that the
utility contemplates
the issuance of $25,000,000 of 30-year first
mortgage
Jan.

bonds

probably in the second

third

Office—250 Old Country
Road,

quarter of

1961.

Mineola, N. Y.

due

March

15,, 1962-76.

Proceeds

—

Offices—9th Street and

cars..

buy

additional

Broadway, Louis¬

ville 1, Ky., and 71 Broadway, New
York, N. Y. Under¬
To be
determined by competitive bidding.
Probable bidders: Salomon Bros. & Hutzler and
Halsey,
Stuart & Co. Inc.
Bids—To be received on March 7 at
writers

ordered.

f.
£

Macrosc Lumber & Trim Co., Inc.
Dec. 20, 1960, it was reported that this

company plans
public offering of about 500,000 common shares (par
$1) in early 1961. Office—2060 Jericho Turnpike, New
Hyde Park, L. I., N. Y.
a

Martin Paint & Wallpapers
Aug. 29, 1960 it was announced that registration is ex¬
pected of the company's first public offering, which is
expected to consist of about $650,000 of convertible de¬
bentures and about $100,000 of common stock. Proceeds
—For

expansion, including

tional stores.
L.

I., N. Y.

New York
n

Office—153-22

Underwriter

—

new

warehouse and addi¬

Jamaica

Avenue, Jamaica,
Hill, Thompson & Co., Inc.,

City, N. Y.

finance

order

Business

Corp.
Nov. 28, 1960 it

was

$1,000,000 of $10

Co.,

and

issue

about

$17,500,000

first mortgage bonds due 1991. Offices—939 Southbridge

St;, Worcester, Mass., and 441 Stuart St., Boston, Mass.
Underwriters—To be determined by competitive bidding.
Probable

bidders:

Halsey, Stuart & Co. Inc.; First Bos¬
Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc.;
Kidder, Peabody & Co., and Coffin & Burr, Inc.
Offering—Expected in May.
ton

Masters

Inc.

is
Business—The

6, 1961 it was reported that this
contemplating its first public financing.

corporation

operation of

Office—135-21

chain of discount

houses.

Avenue, Flushing 54, L. I., N. Y.

McCulloch

Corp.

Jan.

9, 1961 it was reported that this corporation will
schedule its initial public financing for late 1961 or
time

ip 1962.

Business—The corporation manufac¬

tures Scott outboard motors and

Office—6101

West

McCulloch chain saws.

Century Boulevard, Los Angeles

45,

Industrial

Development

common

Mississippi Power Co.

(9/28)

★ Metropolitan Edison Co. /

that this subsidiary of
General Public Utilities Corp., plans to sell about $11,
000,000 of first mortgage 30-year bonds in the late sum¬
mer
of 1961. Office—2800 Pottsville Pike, Muhlenberg
Township, Berks County, Pa. Underwriters—To be de¬
termined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; White, Weld & Co.; Kidder, Pea¬
body & Co. and Drexel & Co. (jointly); Blyth & Co., Inc.
1961

•

was

reported

Michigan Consolidated Gas Co.
Jan. 11, 1961 it was reported that this company plans
to sell about
$30,000,000 of bonds in 1961. Proceeds—To
prepay notes and for construction. Office—t415 Clifford St.,
Detroit 26, Mich. Underwriters — To be determined by
competitive bidding. Probable bidders: White. Weld &
Co.; Lehman Brothers; and Halsey, Stuart & Co. Inc.

Northern

States

Jan. 10, 1961 it
sell

was

$20,000,000 of

Power

Co.

reported that this company plans to
bonds in the third quarter of 1961.

So. La Salle Street,
Chicago 4, 111.;
15 SO.
Street, Minneapolis 2, Minn.; Ill Broadway, New

York

6, N. Y.
Underwriters
To
be determined by
competitive bidding., Probable bidders:
Halsey, Stuart
& Co. Inc.; Merrill
Lynch, Pierce, Fenner & Smith, Inc.;
—

Kidder, Peabody & Co., and White, Weld & Co. (jointly);
First Boston Corp. and
Blyth & Co., Inc. (jointly).
<

1961 it was reported that this subsidiary of The
Southern Co., plans to sell publicly $5,000,000 of 30-year
bonds

and

$5,000,000

Proceeds—For

14th

preferred

stock

(par

$100).

construction and expansion. Office—2500

St., Gulfport, Miss. Underwriter—To be deter¬
by competitive bidding.
Previous bidders for

mined

bonds

Eastman

were

Dillon, Union Securities & Co., and
Corp. (jointly); Halsey, Stuart &
Merrill Lynch, Pierce, Fenner & Smith Inc.
Previous bidders for preferred stock included Halsey,
Stuart & Co. Inc.; Eastman Dillon, Union Securities &
Co., and Equitable Securities Corp. (jointly). Bids—Ex¬
pected to be received on SepU28.
Equitable

•

Securities

Inc.;

Monroe

Mortgage & Investment Corp.
Dec.
12, 1960, Cecil Carbonell, Chairman, announced
that this company is preparing a "Reg. A" filing covering
150,000 shares of common stock.
Price — $2 per share.
Business—The company is engaged in first mortgage
financing of residential and business properties in the
Florida Keys. Proceeds—To expand company's business.
Duval Street, Key West, Fla.
Underwriter
Registration—Expected by mid-February.

—None.

Montana-Dakota
Dec.
pany

Co.

sometime

January.

Lane

13, 1961 it
pected later this
stock.

For

Fund, Inc.
reported

was

month

Business—This is

of
a

300,000

new

York

38,

Maiden

registration is ex¬
shares of common

mutual fund.

investment, mainly in listed

and U. S.

that

Proceeds—

convertible debentures

Treasury Bonds. Office—1 Maiden Lane, New
N. Y.
Underwriter—G. F. Nicholls Inc., 1

Lane, New York 38, N. Y.

Orange & Rockland Utilities, Inc.

(4/20)

Jan. 6,

1961 it was reported that this company plans to
$12,000,000 of first mortgage bonds, series G, due
April 15, 1991. Proceeds—For redemption of $6,442,000
of first mortgage
bonds, series B, due May 1, 1961; lor
repayment

of bank loans and for construction.

Office—

10 North

Broadway, Nyack, N. Y. Underwriters—To be
determined by competitive bidding. Previous bidders:
Halsey, Stuart & ,Co. Inc.; Equitable Securities Corp.;
W. C. Langley & Co.,
Glore, Forgan & Co. (jointly);
First

Boston

Corp.; Merrill Lynch, Pierce, Fenner &
Inc., Eastman Dillon, Union Securities & Co.,
Kidder, Peabody & Co., and White, Weld & Co. (joint¬
ly). Bids—Expected to be received on April 20.
Smith

Pacific
Jan.

urer

that

Lighting Corp.

1961

reported by Paul A. Miller, Treas¬
probably go to the market
$30,000,000 to $50,000,000 of new financing in 1961
and that it probably would not be a common stock offer¬
ing.
Office—600
California
Street, San Francisco 8,
the

was

company will

for

Calif.

Sept. 28, 1960 it
tures

are

was

Panhandle Eastern Pipe Line Co.

reported that $65,000,000 of deben¬

expected to be offered

in the

second

quarter

of 1961.

Office—12Q Broadway, New York City. Under¬
Lynch, Pierce, Fenner & Smith Inc.,
and Kidder, Peabody & Co., both of New York
City
(managing).
- ■
r
<
•• 1•';
;

writers— Merrill

1, 1960, F. R. Gamble, Treasurer, stated that com¬
plans to sell $5,000,000 of preferred stock ($100

par),
ers

Utilities

Maiden

Jan.

ifell

Jan. 4,

Dec.

stockhold¬

13,

voted to increase the authorized preferred. Proceeds

—$3,000,000 will be used to repay bank loans and $2,000,000 will be added to working capital. Office—831 Second
Ave., South, Minneapolis, Minn. Underwriter—A previ¬
ous
preferred issue was underwritten on negotiated
basis by Blyth & Co., and Merrill Lynch, Pierce. Fenner
& Smith Inc., New York.
Monticello Lumber &

Mfg. Co.
Jan. 3, 1961 it was reported that this company plans a
"Reg. A" filing later this month covering 75,000 shares
of common stock. Price
$4 per share. Proceeds — For

+ Pennsylvania Electric Co.
Jan.

24, 1961 it was reported that this subsidiary^ of
Public Utilities Corp., plans to sell $10,000,000
30-year first mortgage bonds. Office—222 Levergood

General
of

St., Johnstown, Pa. Underwriters—To be determined by
competitive bidding. Probable bidders: Blyth & Co., Inc.,
and Harriman

Ripley & Co. (jointly); First Boston Corp.;
Corp.; Kidder, Peabody & Co.;
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & ,Co. Offering;—
Expected in May.
Equitable

Securities

Pennsylvania Power Co.

—

Dec.

equipment, plan expansion and working capital. Office
Monticello, N. Y. Underwriter — J. Laurence & Co.,

14, 1960, it was reported that this company has ap¬
plied to the SEC for an order under the Holding Com¬

Inc,. New York City.

pany

—

National

Jan.

State

1961

10,

Bank

(N.

Newark

stockholders approved

holders of record

J.)

the plan

to offer

the right to sub¬

about Jan. 26

40,000 additional shares of capital stock (par
$12.50) on the basis of one share for each 15 shares held,

scribe

stock dividend. Rights will
expire about Feb. 13. Price—$52 per share. Proceeds—
To increase capital and surplus. Office—Newark, N. J.
Nedick's

Act, authorizing the issuance of $878,000 of first
mortgage bonds, 3%% series, due 1982. Proceeds—For
sinking fund purposes. Office — 19 E. Washington St.,'

New

Castle, Pa. Underwriter — To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &

Co. Inc.; Kidder, Peabody & Co.; White, Weld & Co.;
Equitable Securities Corp. and Shields & Co. (jointly);

Lehman

Brothers; Merrill Lynch, Pierce, Fenner
Inc., and Dean Witter & Co. (jointly).

Smith

V'/-

Peoples Gas Light & Coke Co.
Jan.

styne, Noel & Co., New York City.

10, 1961 it was reported that this company plans to
$35,000,000 of first mortgage bonds in 1961.
Proceeds—To retire maturing bonds and for construc¬
tion/ Office—122 So. Michigan Avenue, Chicago 3, 111.
Underwriters
To be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.; Glore,

^ New England Power Co.

Forgan & Co./First Boston Corp.

24, 1961 it was reported that this subsidiary of New
England Electric System plans to sell $20,000,000 of

Jan.

Stores, Inc.

1960 it was reported that a filing of ap¬
proximately 17,000 shares of common stock is under
discussion, but registration is not imminent. Office—513
W. 166th Street, New York City. Underwriter—Van Al15,

sell

mortgage bonds/ Office—441 Stuart St., Boston 16,
Mass. Underwriters
To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb & Co.; Equitable Securities Corp., and Blair
& Co. (jointly); Merrill Lynch, Pierce, Fenner & Smith
Inc., Kidder, Peabody & Co., and White, Weld & Co.
(jointly); First Boston Corp.; Lehman Brothers. Offer¬
ing—Expected in October.
—

New

Orleans

Public Service,

Inc.

St., New Orleans, La. Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Lee Higginsqn Corp., Equi¬
table Securities Corp. and Eastman Dillon, Union Securi¬
Baronne

Co.

(jointly); Kidder, Peabody & Co. and Stone
Corp. (jointly); White, Weld & Co.;

& Webster Securities

Salomon Brothers & Hutzler.
Northern Fibre Glass Co.

derwriter—Irving J. Rice & Co., St. Paul, Minn.
Northern Illinois Gas Co.

9, 1960 C. J. Gauthier,

Vice-President-finance re¬

ported that of the $95,000,000 in outside financing that
will be required in the next four years to complete a

$200,000,000

construction

program,

Terminal

Co.

16, 1961 it was reported that the ICC exempted
from competitive bidding, a proposed offering by com¬
pany

53/4% bonds due Feb.

of $9,850,000 first mortgage

1986. Proceeds—The company will use $9,350,000 of
proceeds to pay at maturity $9,350,000 of first mort¬

the

gage

bonds due July 1,

1961.

The balance of $500,000

will be

paid to Maine Central RR., parent, for 7.098 miles
acquired. Office—222 St. John Street, Portland,
Maine. Underwriter—Coffin & Burr, Inc., Boston, Mass.
of road

Power Chem

Industries

Oct.

18, 1960 it was reported that the company plans a
"Reg. A" filing of 75,000 shares of common stock, con¬
stituting its first public offering. Business—The com¬
pany is in the process of organizing and will manufac¬
ture additives for fuel oils. Proceeds—For expansion and
general corporate purposes.

Office

—

645 Forrest Ave.,

Staten

Island, N. Y. Underwriter — Ronwin Securities
Inc., 645 Forrest Ave., Staten Island, N. Y. Registration
—Indefinite.

Sept. 28, 1960 it was reported that this company is plan¬
ning to issue 100,000 shares of $1 par common stock un¬
der a letter of notification. Office—St. Paul, Minn. Un¬

Nov.

Portland

Offering—Indefinitely postponed.

Nov. 10, 1960 it was reported that an issue of $15,000,000
of first mortgage bonds is expected in May, 1961. Office

ties

about

—

Jan

—317

Calif.

23,

first

Jan.

stock issue

stock, of which $500,000
will be subscribed for
by utility companies and $500,000
will be sold to business and industry and the
general
public. Business—To assist via loans, investments, and
other business transactions, in the location and
expan¬
sion of businesses in
Mississippi.

Nov.

Jan.

reported that the company will issue

par

sachusetts

Electric

common

Aurora, 111. Underwriters—
Corp. and Glore.Forgan & Co., New
York, N. Y. (managing).

One

Mississippi

Underwriter—None.

some

transportation

expected

Office—Cincinnati, Ohio.

System into Worcester County Electric Co., also a sub¬
sidiary. Latter will change its corporate name to Mas¬

38th

river

and

after giving effect to a 7.14%

Massachusetts Electric Co.

Jan. 24, 1961 it was reported that the SEC has approved
the merger of six subsidiaries of New England Electric

report

aggregate amount not to exceed

—

annual

before March 31,

—

(EST).

noon

company's

Office—700

* Louisville & Nashville RR. (3/7)
Jan. 24, 1961 it was reported that this
company plans to
to sell about $7,800,000 of
equipment trust certificates
freight

presently

Co.

Lanvin Parfums, Inc.

bond issue in

equipment

Kentucky

Probable

might be raised through

in 1961. Office—50 Fox
St.,
The First Boston

Fifth

that it contemplates the issuance
1961 of

Jan.

derwriters— To

Offices—15

business

Ry. Co.

amount

subsidiary

Co., plans to sell about $30,000,-

Midland Enterprises Inc.
April 8 it was stated in the

Telephone & Telegraph Corp.

27,

owned

-Michigan Wisconsin Pipe Line Co.
10, 1961 "it was jreporied that this

Jan.

unspecified

Public Service Co. of Colorado

Dec.

2, 1960, W. D. Virtue, treasurer, stated that com¬
plans the sale of about $20,000,000 of common stock
offered stockholders through subscription rights
in mid-1961. Proceeds—For expansion. Office—900 15th
pany

St., Denver, Colo. Underwriter — Last equity financing
on a negotiated basis by First Boston Corp.

handled

Continued

page

The Commercial and Financial Chronicle

(486)

Continued

from

Probable bidders: Halsey, Stuart &

page

Co. Inc., and Morgan
York City. Offering—Ex¬

Stanley &

Co., both of New
pected in March.

Public Service Co. of New Mexico

10, 1961 it was reported that this company plans to
$12,000,000 of first mortgage bonds in 1961 or 1962.
Office—819 Simms Building, Albuquerque, N. Mex. Pro¬

ceeds—To

bank loans and for construction. Un¬
determined by competitive bidding.

repay

derwriters—To

White
& Co. Inc.; Blyth & Co., Inc.; Kidder, Peabody & Co.;
Glore, Forgan & Co.; First Boston Corp.; White, Weld
Halsey, Stuart & Co. Inc.; J. G.

Probable bidders:

Co.; Salomon Bros. & Hutzler.
Electric & Gas Co.

Service

Public

16, 1961 it was reported that this company expects
to'spend $150,000,000 on capital improvements in 1961,
but has not made definite plans for the financing that
Jan.

required. However, it is possible that the com¬
sell common stock if market conditions are
favorable. Office—80 Park Place, Newark, N. J. Under¬
writer—The last sale of common stock on Dec. 15, 1959

•

Tronomatic

Corp.
20, 1960, it was reported that a letter of notification
consisting of 57,000 shares of common stock will be filed
for the company. Price—$4 per share. Proceeds—For new
product development and sales promotion. Business—■
The manufacture of plastic forming, molding and fabri¬
cating equipment: Office — 25 Bruckner Blvd., Bronx,

(4/4)

Co.

1961, J. K. Horton, President, stated that the
company will require about $60,000,000 of new financ¬
ing in 1961. Earlier, the company announced plans for
20,

sale

the

$30,000,000 of first and refunding mortgage

Merrill Lynch, Pierce, Fenner & Smith

handled by

Inc., and associates.
Radiation

Corp.; Dean Witter & Co.; Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc., all of New York City. Bids—To be re¬
ceived at the company's Los Angeles office on April 4,

Inc.
Jan. 17, 1961 it was reported that this company is con¬
sidering a public offering of stock in 1962. Business—
Develops plastic and chemical materials for the elec¬
tronics and missile industries, and performs extensive
research and development in the fields of atomic energy,
extractive metallurgy, plastics, and electrical insulation.
Schenley Industries, Inc., owns about 36% of the out¬
standing stock. Office—Long Island City, N. Y. Under¬
writer—To be named. Hayden, Stone & Co., New York,
recently handled a private placement of the company's
stock.

House, Inc.

1961 it was reported that a secondary offering
about 150,000 outstanding common shares is planned.
18,

Business—Publishes

Proceeds—

distributes books.

and

the

For

selling stockholders. Office—457 Madison Ave.,
New York City. Underwriter—Allen & Co., New York
City (managing).
:
•

Rochester

Gas

Electric

Corp.

-.V-'i:j■.

(6/15)

•

Jan. 4, 1961 it was reported that this company, jointly
owned by Alabama Power Co., and Georgia Power Co.,
both

controlled by

in turn

Underwriter

construction.

For

—

determined

by competitive bidding. Probable bidders: Halsey, Stuart
& Co.

Inc.; Kidder, Peabody & Co.y White, Weld & Co.
(jointly); Kuhn, Loeb & Co.; Salomon

and Shields & Co.

Bros. &
and

Hutzler, Eastman Dillon, Union Securities & Co.,
Securities Corp. (jointly); Blyth & Co.,

Equitable

National

"'■/j', V
Natural

Southern

12th

■

;■'/Y

Gas

market

conditions.

Corp.;

—

Dillon,

Universal

bank

loans.

Building, Birmingham; Ala. Underwriter
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; First Boston Corp.;
Blyth & Co. and Kidder, Peabody & Co. (jointly).

Nov.

stockholders approved the issuance of
bonds. The issuance of an unspeci¬
fied amount of additional bonds for other purchases was
also approved. Proceeds — For general corporate pur¬
poses, including the possible acquisition of Central of
Georgia Ry. Office—Washington, D. C. Underwriter—
21,

1960

new

Halsey, Stuart & Co. Inc., will head

group

that will

the bonds.

Jan.

17, 1961 offered holders of capital stock of record
Jan. 10 rights to subscribe for 39,126 additional shares
at the rate of

one

new

share for each

seven

shares held.

Rights expire Feb. 6. Price—$20 per share. Proceeds—
For capital funds. Office — Suffern, Rockland County,
N.

Y. Underwriters
M. A. Schapiro & Co., Inc., and
Joseph Walker & Sons, both of New York City.
—

Southwestern

Jan.

March

secondary offer¬
ing might be made. Underwriters—Merrill Lynch, Pierce,
Fenner

Smith

was

Inc.

both of New York

18, 1961 it

the

basis of

of record

$20

per

Ripley & Co. Inc.,

City.

was

97,371 shares of

Harriman

and

Security National
Jan.

reported that

Bank

Long

Island

reported that the bank is

offering
(par $5) to stockholders

common

stock

one

share for each

new

shares held

Jan.

17, with rights to expire Feb. 6. Price—
share. Proceeds
To increase capital. Office—
—

Huntington, N. Y.

Underwriter— Bache & Co.
/;...■■• Y; -vu-'.v ■

aging).
* Sierra

Pacific

Power

(man¬

South

Virginia

St., Reno, Nev.

Underwriter—(Bonds)
by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Stone & Webster Secu¬
rities Corp.; Dean Witter &
Co.; Kidder, Peabody &

To be determined

Co.

and

White, Weld & Co.

common

1960

stock

was

made

(jointly). The last sale of
stockholders

March

Silo's

Discount

House

reported that this retail chain is con¬
first public financing.
Office—Philadel¬

phia, Pa.
South

Nov.

14,

Lynch, Pierce, Fenner
City.

utiiity
and

Electric & Gas

Co.

of first

refunding mortgage bonds and $5,000,000 principal

amount of

a new series of
preferred stock in March 1961.
Address—P. O. Box 390,
Columbia, S. C. Underwriter—
To be determined
by competitive bidding. Previous bid¬

ders

for

the

company's bonds

were
First Boston Corp.
(jointly); Kidder, Peabody & Co.;
Halsey, Stuart & Co. Inc.; and Eastman
Dillon, Union
Securities & Co.
The last preferred
offering was nego¬
tiated by Kidder,
Peabody & Co.

and Lehman Brothers

^ Southern Bell Telephone & Telegraph Co.
Jan.

24,

1961

was

reported

that

this

subsidiary

telephone & Telegraph Co., plans to sell about
,$70,000,000 of debentures. Proceeds—To refinance $70,000,000 of 5V2% debentures due 1994 issued on Oct.
21,
1959 at the highest interest rate in
the company's his¬
tory. Office
67 Edgewood
Ave., S. E., Atlanta 3, Ga.
Underwriters—To be determined
by competitive bidding.
—

(6/13)

Virginia Electric & Power Co.

17, 1961 the company announced plans to sell $30,000,000 of first mortgage bonds. Office—Richmond 9, Va.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Stone &
Webster Securities Corp.; Eastman1 Dillon, Union-.Secu¬
rities & Co.; Salomon Bros. & Hutzler; Goldman, Sachs
&
•

Co.

Bilds—Expected on

Waldorf

Auto

1961 it

about June

reported that this

was

13.

Inc.

Leasing

plans a

company

"Reg. A" filing covering 100,000 shares of common stock.

new

priced about

purposes.

per share. Proceeds — For general corporate
Office — 2015 Coney Island Ave., Brooklyn,

Underwriters—Martinelli & Co.;

N. Y.

First Atlantic

Inc.;

Sons,

Securities

V. K. Osborne &
Registration—

Co.

Washington Natural Gas Co.

Office—720

mon.

Mercantile Dallas Building, Dallas 1,
Underwriter—Dillon, Read & Co., Inc.

Jan.

16,

1961 it was reported that this company may
$4,000,000 in the spring of 1961 through bank
a public offering of securities. Office — 1507

raise about

Spiegel,
Jan.

17,

Inc.
it

1961

that financing is being
but details have not been de¬
cided upon. Business—The company is engaged in the
sale of merchandise by mail, principally on a monthly
payment basis. Office—1061 W. 35th St., Chicago 9, 111.
considered

for

was

this

Underwriter—To

consisted

reported

year,

named.

The

last

sale

securities

$15,417,500 of 5% convertible debentures,
due 1984, which were sold to stockholders through sub¬
scription rights in June 1959.
The offering was under¬
written by Wertheim & Co., New York.

Stockholders

will

vote

Jan.

increasing
the authorized common stock from 6,000,000 to 8,000,000
shares to provide additional underlying shares for the
proposed convertible issue. Proceeds -— For expansion
and working capital. Office—Union Stock Yards, Chi¬
cago 9, 111. Underwriter—The last issue of 4%% deben¬
tures on Oct. 29, 1958 was placed privately through Salo¬
mon

Bros. &

Hutzler, New York City.

Gas

1961.

Ave., Seattle, Wash. Underwriter—The last pub¬
offering comprising common stock, was made in
September 1958 through Dean Witter & Co., San Fran¬
cisco. v">
'■/•
lic

•

Union

Western

Jan.

Telegraph Co.

reported that this company filed a
plan with the FCC to transfer its Atlantic cable system
to a newly organized company, Western Union inter¬
16, 1961 it

national,

was

plan provides

The

Inc.

for

of about

the issuance by
$4,000,000 of sub¬

ordinated debentures and 400,000 shares of class A stock

tb be offered to stockholders of Western Union

Tele¬

graph Co. In addition, American Securities Corp., New
York City, would purchase from Western Union Inter¬
national about 133,000 additional shares of class A stock

giving American Securities ownership of approximately
25% of the outstanding class A stock of WUI.
Then
Western Union Telegraph would purchase 250,000 shares
of class B stock for

$100,000.

York

City. Underwriter
(managing).

—

Office—60 Hudson St., New
American Securities Corp.

Transmission

Corp.
Jan. 11, 1961 it was reported that this company plans to
sell $10,000,000 to $15,000,000 of bonds in the third quar¬
ter of

Fourth

1960 the company disclosed that it is consider¬
ing the issuance of up to $35,000,000 of convertible de¬
bentures.

loans,

Western Union International

& Co.

Office—416

West Third

Street, Owensboro,
Ky. Underwriter—Dillon, Read & Co., New York City.

Corp.

Winter

Park

Jan.

5, 1961 it

sell

about

holders

4, 1961 it was reported that this company is
templating some new financing.
No confirmation

con¬
was

Telephone Co.
reported that this company plans to

was

33,000
the

additional

basis

one

common

new

Price—About $40 per share.

expansion.

Jan.

p tentatively planning to issue $8,000,000

& Smith Inc., all of New York
^

GV2% below the then existing market price of the com¬

Traid

Carolina

whether the product,

sale of common stock on Feb. 5, 1959 was handled
by Lehman Brothers, Smith, Barney & Co., and Merrill

shares held.

1960 C. M. Over, Treasurer, reported that this

Co.

Imminent.

Texas

was

templating its

Co.

14,

without underwriting.

Jan. 9, 1961 it

Service

Dec. 28,

Co.

Products

Oil

last

offering is planned, with the

Swift

Jan. 25, 1961 it was reported that this company expects
to sell about
$6,000,000 of bonds and common stock in
1961 or 1962.
Proceeds—For construction.
Office—220

Lehman Brothers; White,
(jointly); and Blyth & Co.

Co.,

No
named
"Compound X," will be produced. Business—The com¬
pany is a major petroleum and chemical research and
process development concern: Office—30 Algonquin Rd.,
Des Plaines, 111. Underwriter—To be named. The com¬
pany has never sold debentures before. However, the

Price—-$3

Schlitz & Co.

11, 1960 it

Read

decision has been made

1961 it was reported that in March, 1961, the
company expects to offer about $15,000,000 in bonds and
about $3,000,000 in preferred stock, and that about one
year thereafter a one-for-twenty common stock rights
19,

Texas.

(Jos.)

Public

To be deter¬

Jan.

Railway Co.

$33,000,000 of

—

major field which the company would not identify.

Office—Watts

Southern

plans

17, 1961 it was reported that this company may
require financing either through bank borrowings or the
sale of debentures in order to further expansion in a
'

retire

company

Jan.

Co.

Proceeds

that this

Blvd., St. Louis, Mo. Underwriter

Weld & Co. and Shields & Co.

1960 it was reported by Mr. Loren Fitch, com¬
pany comptroller, that the utility is contemplating the
sale of $35,000,000 of 20-year first mortgage bonds some¬
time in 1961, with the
precise timing depending on

•

Bank

reported

was

$20,000,000 to $30,000,000 of preferred in late 1961.
expansion of facilities. Office — 315 N.

mined by competitive bidding. The last sale of preferred
in November 1949 was underwritten by First Boston

Lynch, Pierce, Fenner & Smith Inc.,
Co., Inc., (jointly); Morgan Stanley & Co.,
White, Weld & Co., and Kidder, Peabody & Co. (joint¬
ly); Eastman Dillon, Union Securities & Co., Equitable
Securities Corp. and Drexel & Co. (jointly); First Boston
Corp.; and Halsey, Stuart & Co. Inc. Registration—Ex¬
pected about May 8. Bids—To be received at 11 a.m. on
June -15.

Proceeds—For

Jan. 16,
Rockland

1961

•

Co.

and Blyth &

bid

Inc.; The First Boston Corp.

Electric

19,

to sell

The Southern Co., plans the

Merrill

included

Union

Jan.

1, 1992.
Proceeds—For expansion.
Office—600 North
Eighteenth St., Birmingham 3, Ala. Underwriters—To
be determined by competitive bidding. Previous bidders

Jan. 24, 1961 the company stated

it plans to issue about
$15,000,000 of 30-year bonds in September. Proceeds—

Underwriters—

York City.

Lynch, Pierce, Fenner & Smith Inc., and Kid¬
der, Peabody & Co., both of New York City (managing).

Electric Generating Co.

Southern

Random

Office—120 Broadway, New

Oct. 28,

Jan.

Co.

Gas

Merrill

(PST).

public sale of $27,000,000 first mortgage bonds due June

Applications,

—

Sept. 28, 1960 it was reported that approximately $15,000,000 of bonds and $5,000,000 of preferred stock are
expected to be offered in the second quarter of 1961.

may

pany

Underwriter
Plymouth Securities Corp., New
City. Registration—Expected in late January. 11

Trunkline

Angeles 53, Calif. Underwriters—To be determined
by competitive bidding. Probable bidders: First Boston
Los

1961 at 8:30 a.m.

York

bonds, series N, due 1986. Proceeds—To retire short-term
debt and for construction.
Office—601 West Fifth St.,

will be

was

Edison

California

Southern

Jan.

Thursday, January 26, 1961

Dec.

Jan.
sell

Office —132

East

Winter

New

Park, Fla. Underwriter
Expected about March 15.

—

for

three

Proceeds—For

England

None.

stock¬

to
each

Avenue,

Registration

—

available. Business—The company specializes in airborne

photo instrumentation and manufactures aircraft motion

and accessory items. Office — Encino,
Calif. Underwriter—Previous financing was handled by

picture

cameras

D. A. Lomasney &

Co., New York City.

it Transcontinental
Jan.

Gas Pipe Line Corp.

1961 it was reported that this company plans
to
spend $100,000,000 to expand its pipeline system,
which brings natural gas to the New York City area.
It was stated that the company expects to raise up to
$50,000,000 this spring, by the sale of bonds, debentures
or preferred
stock. The type of securities offered will
depend on FPC approval and the successful completion
of a court case now in progress. Office—3100 Travis St.,
Houston, Tex. Underwriters—To be named. The last sale
of bonds in April 1960 was handled by White, Weld &
Co., and Stone & Webster Securities Corp., both of New
York City.
17,

Wisconsin

Jan.

19,

Power

Light Co.

it was reported that this company plans
to sell about $6,500,000 of preferred stock in the third
quarter of 1961. Proceeds—For expansion. Underwriters
—The

1961

last

sale

preferred

stock

handled by Smith, Barney & Co.,
W. Baird & Co., Inc., Milwaukee

Wisconsin
Dec.

that

Southern

12, 1960 it
an

Gas

undetermined

amount of

will be sold in 1961-1962.

short-term

bank

loans

tions. Office—Sheridan
Underwriter

(managing).

—

The

Co..

reported in

was

in May, 1958 was
New York and Robert
(jointly).
v

—

company

prospectus

capital stock

Proceeds—For the

incurred

for

bonds

repayment

property

addi¬

Springs Road, Lake Geneva, Wis.

Milwaukee

Co.,

Milwaukee,- Wis.

193

Volume

Number

6024

The Commercial and Financial

STATE OF TRADE AND INDUSTRY
of

Continued from page 5

plant planning to build cars

latter

corresponding

date

last

Dun

Bradstreet,

Inc.

Wholesale Food Price Index
^

Than in 1960 Week

amount

The

and

light

ministry for the week

power

Saturday, Jan. 21, was es¬

ended

total of the

sum

pound

and

meats

general

not

price

foodstuffs

raw

use.

cost-of-living

ended

rep¬

index.

Its

Wednesday of last week

chief function is to show the gen¬

kwh., eral trend of food prices at the
according to the Edison Electric wholesale level.
Institute. Output was 133,000,000
Wholesale Commodity Price Index
kwh. above that of the previous
Close to Prior Week
week's total of 14,684,000,000 kwh.
With -price increases on some
and showed a gain of 187,000,000
kwh., or 1.3% above that of the grains, flour, steers and steel scrap
offsetting declines on lambs, hides
comparable 1960 week.
at * 14,817,000,000

timated

energy

electric

the

distributed

resents the
per

electric

Central

—1

Central

—2

Car Loadings for Week
14.8% Below Corre¬
sponding 1960 Week

Down

rubber, the general commod¬
ity price level this week remained
close to

The

week earlier.

Wholesale

Commodity

14.8%; below the
corresponding week in 1960, and

year

ago.

There

the

1959.

port

Loadings in the week of Jan. 14,

show

the

districts reported decreases

All

compared with the corresponding
weeks in 1960 and 1959.
Shipments Dropped 9.5%
Below Production During

the

14, 1961 a 17 %

System,

week ended Jan. 14 showed
increase

the

14%

period last
In the preceding week ended
over

same

Jan. 7 sales showed

decrease of

somewhat

below production. Un¬

3.1%

were

to 24%;

amounted

mills

reporting

orders

filled

of these mills

orders

of gross stocks.

reporting softwood mills, un¬
orders were equivalent to

For

filled
13

Uni.ed States r;pe ana Foundry Company

DIVIDEND NOTICES

GREEN

BAY

The

Board

$50

WESTERN

RAILROAD
Directors

has

fixed

and

declared

amount payable on Class "A" Deben¬
ture Coupons (Payment No. 65), and a dividend
of
$5 to be payable on the capital stock out
of the net earnings for the year 1960, payable
at
Room
No.
3400,
No.
20
Exchange Plaee,
New York 5, New York, on and;after February
6,
1961. The dividend on
the stock
will
be
the

the

Class

"B"

substantial

decrease

York,

New

Debentures

net

NOTICES

DIVIDEND

Hudson
AMEIKICAN ELECTRIC

POWER COMPANY.
f

and

Common

1961

trading

corn

NO.

Inc.

($.50)

Late-in-the-week

prices

February 10, 1961.
THOMAS R. CAMPBELL, Secretary
One Broadway, New York 4, N. Y.

shareholders of record at the close
on

February 10,. 1961.

(47c)

per

Southern

the

issued

and

outstanding in the hands of

W. J.

prices

the

New York, January 24, 1961.

Company have
declared a dividend of forty (40)
cents per share designated as the
first regular quarter-annual
dividend for 1961, payable
February 17, 1961 to holders
of record on February 3, 1961.

Dividends aggregating
shares

reporting identical mills were
below
production,
new
were
0.8 %? below produc¬

ing

Lenten

rice

matched

week earlier. Some siz¬

5.0%?

those-of

orders

able

tion.

Europe, Africa, and the Near East,

sales

rice

made

were

and
negotiations were
pending
Compared
with
the
previous
for deals with Israel and Canada.
(holiday)
week
ended
Jan.
7,
Although coffee trading dipped
1961, production of reporting mills
at the end of the week, prices,
was 35.0%?
above; shipments were

28.9%;

above;

orders

new

were

Compared with the

above.

corresponding week in 1960, pro¬
duction

17.0%;

20.4%o

below.

ing week,
crease

Business

Continue

Failures

Commercial and
ures

edged

ended

to 340 in the week

Jan.

industrial fail¬

335

from

the

w^ek, reported Dun &
Bradstreet,
Inc.
Casualties
ran
noticeably higher than a year ago
preceding

when

occurred

302

when the
ness

toll

was

pre-war

level

A
in

occurred

steady trading and
a
slight dip in salable receipts.
In contrast, lamb prices finished
appreciably
lower
on
sluggish

Promotions and Good Weather
Stimulate

Retail Trade

sales
retail

ended

areas

week

the

earlier.

week's

Fifty-

failing busi¬

Wholesale Food Price Unchanged
In Latest Week of Jan.

The Wholesale Food Price Index,

compiled
Inc.

prior

Dun & Bradstreet,
change from the

showed

week,
but it was up moderately from a
year ago. On Jan. 17 it remained
period

at the *«.T5
was

Directors

dividends

terly

6.0%

the

latest

we^k earlier, but

higher

than the $5.80

January

declared

quar¬

$1.09

per

$1.40

per

Stock and 46 Vi
Common

the 5.60% Preferred

cents per

Stock,

1961

all

business

holders

the

March

payable

record

February

the

1961.

10,

COMPANY

1961,

The Directors

ruary

1961,

15,
the

(70<)

per

without

par

has

the

surplus

Company for the fiscal

ended December 31,

March

i960,

payable

stockholders

business

Feb¬

15, 1961.
J. J. MAHER, Secretary

Company have declared

Harvester

out

1961

Company

Stock

Railway

declared

15,

Aug. 15, 1961

seventyvcents

Southern

been

record

International

Common

the

Feb.

May 15, 1961

1961

quarterly dividend No. 170 of one
dollar and seventy-five cents ($1.75)
per share on the preferred stock,
payable March 1, 1961, to stock¬

holders

record

business

the

February 3, 1961.

GERARD J. EGER, Secretary

Netting, Jr., Secretary

Common Stock

j*/

Dividend

and South West

Corporation at its

meeting held

Southern

stock

common

The Board of Directors of Central

Edison

California
Company

January 19, 1961,

declared

dividend

regular quarterly divi¬

dend

(25% c)

share,

per

one-half

twenty-five and

NO.

January 18, 1961

121
a quar¬

terly dividend of 50 cents

the Corp¬

was

declared

per

the

oration's Common Stock. This divi¬
dend is

Corporation's Common Stock,
payable March 10, 1961 to

payable February 28, 1961,

stockholders of record January

stockholders of record at the

;

31,1961.

close of business

LEROY J. SCHEUERMAN

DIVIDENDS

The Board

of Directors has

authorized

the payment

the

dends:
CUMULATIVE

Secretary

Central and South West

Dividend No. 44

SINCLAIR

Corporation

OIL CORPORATION

10,1961.

PREFERRED

STOCKf

4.08% SERIES

February

helped

following quarterly divi¬

—_

25Va cents

per

share;

moderately over both the prior
week and the similar 1960 period.

600 Fifth Avenue

Wilmington, Delaware

ger cars was

higher than a year ago, according
to spot estimates collected by Dun
& Bradstreet, Inc.
Regional esti¬
mates varied from the comparable

following per¬
+5 to -f-9;
+8; West
North
Central +3 to
+7; East
North Central and Mountain +2
to
+6; South Atlantic and Pa¬
cific Coast 0 to +4; West South
levels by the

centages: New England
Middle Atlantic +4 to

4.24% SERIES
Dividend No. 21

New York 20, N.Y.

26'/2 cents

per

share;

4.78% SERIES
Dividend No.

29% cents per share;

4.88% SERIES
Dividend No. 53

30'/; cents per share.

The above dividends are pay¬

dicate that volume in new passen^

1960

15,

of net profits of the

HARVESTER

24,

the week:
Wednesday of last week

promotions
trade

close to a year ago
The total dollar volume of retail
nesses had liabilities in excess of
$100,000, climbing steeply from 33 trade in the week ended Wednes¬
in the preceding week.
day of last week was 2 to 6%;
three

today

the 4.36% Convertible Preferred Stock,

snopping weather in
and extensive reduced-

Favorable

and ex¬
There were year-to-year gains in
261 of
this size last year. A decline, on apparel, floor coverings, furniture,
and linens, which offset declines
the other hand, appeared among
in major appliances, draperies, and
small casualties, those with losses
housewares, Scattered reports in¬
under $5,000, which dipped to 26
from

the Board

cents

trading.

boost

in the previous week
ceeded
considerably the

dividend

value

year

meeting held

price

301

picked

increase

hog prices

most

involving liabilities of
more
rose to 314 from

Sept. 15, 1961

1961

slight de¬

lower- supplies.

somewhat

in the com¬

of 367

June

15,

transactions dur¬

volume

below its

parable week of 1939.
Failures

week

1959

296. But, busi¬

mortality was 1%

$5,000

There was
cocoa

fractional

Upward During Jan. 19 Week

of Business on:

Mar.

INTERNATIONAL

below;
below;
12.8%

were

Recordattheclo.se

Date of

Payment

President

•

out

follows:

To Stockholders of

COMPANY
Pittsburgh, Pa.

declared

unchanged from the preced¬

were

this

payable

earnings,

l'/4% (250

reporting mills was ing the week and prices were
down fractionally.
shipments
were
Steer prices edged up slightly
- and
new
orders

1960

Southern

value of $20

par

been

l'/4% (25£)

flour

again increas¬

prices

Stock

today

iTO)

slightly higher
Although

season

volume,

have

per

Amount

WILLIAM H. DEATLY

33/i%on 3,000,000

Preferred

Railway Company of the

gross

NOTICE

DIVIDEND

EQUITABLE

earlier.

week

NOTICE

[Trustees of The Title
Guarantee

occurred

and

week,

finished

than

that

increases

earlier

declines

Company

COMPANY
DIVIDEND

ROSE, Secretary

January 25, 1961.

Railway

THE TITLE GUARANTEE

public, has been declared payable

March 10, 1961, to the holders of record
at the close of business February 10,1961.

not enough to offset

were

marked

the

21.5%;

of Common Stock of record

Common Stock

cents

seven

fifty cents

share payable March 3, 1961,

per

holders

J. M. McCARTHY, Treasurer

dipped

oats

The Board of Directors has authorized
the payment of a dividend of

Common Capital Stock of the Company,

light

were

Bay Mining

A reSu'dr quarterly dividend of Forty-

•

was

moderately.
on

Stock

Smelting Co., Limited

of business

trading expanded; this helped

prices move up
contrast, prices

year-to-date, shipments

For the

Company

because

A Dividend of seventy.five tents
($.75) (Canadian) per share has been
on the Capital Stock of this
Company, payable March 13, 1961,

204th Consecutive Cash Dividend

supplies;

trading in sugar was sluggish,
stocks
were prices were unchanged from the
equivalent to 53 days' production. preceding week. With buying for
and

United States Lines

the

Secretary

TRANSMISSION

able

COMPANY

February 28, 1961, to
of record Feb¬

stockholders
HOUSTON, TEXAS

ruary

Checks

will

mailed from

the Company's
office in Los Angeles} Feb¬

The

DIVIDEND

NO. 54

Board

of Directors

has declared

ruary

28.
p, c. hale,

quarterly dividend of 28< per share on
Common Stock, payable March 14,

the

January 19, 1961

1961, to stockholders of record on Feb¬
ruary

17, 1961.
J. E.

IVINS, Secretary

j
;

income.

COX,

January

j
j

;

was

declared

JOHN W. BRENN AN, Secretary & Treasurer

Eaid to stockholders of 1961, Noatpayment of
usiness
record
the close
January
18,
of

United States Pipe-and Foundry Company

In¬

steady.

Offerings

1961

The transfer books will remain open.'

COMPANY

days' production at the current

rate,

New York, N. Y., January 20,

Board of Directors this day declared
quarterly dividend of thirty cents (30<)
per share on the outstanding Common Stock,
of this Company, payable March 15,
1961,
to stockholders of record on March
1, 1961.

declared

and

the

NOTICES

orders from flour mills expanded

than

DIVIDEND

appreciably,
reflecting
sluggish
shipments of 451 mills volume. Soybean prices remained
reporting to the National Lumber close to the preceding week, de¬
Trade Barometer were 9.5% be¬ spite a moderate rise in export
low production during the week buying; domestic purchases were
ended Jan. 14, 196Win, the same steady.
new

DIVIDEND

Day this year occurred
ending Jan. 7 whereas last

week

ending Jan. 2,
1961, there¬

The

Lumber

week,

Jan.

Daily

Price

ample

week

fore, had one less trading day
corresponding week last year.

gain

the

was

The

14 Week

Jan.

was

Year's

*New

four

the Federal Re¬
department store
sales in New York City for the

According

year.

there

1960.

1960

year

decrease

reported. 'For

ended Jan.

serve

1959

year

4%.

week

the

For

was

over

reported above the

was

period, and for the

over

reported. The year 1950
1959 showed a 1% increase.

gain

fractional increase

buying and

and

Lumbe

was

17% rise

ending Jan. 14

year.

Jan.

was

weeks

cars

last

ended

11%;

week in 1969.

same

increase of 7% above like

period

17.5%? above noticeably. Following the move¬
ment in wheat, rye prices edged
preceding holiday week.
77,017

were

sales

for the week ended Jan. 14, 1961,*

of 70,132 cars or 12.0% in wheat prices during the week,
corresponding week in reflecting good domestic and ex¬

decrease

below

1960 Week

store

from the

1959

taken from
the Federal Reserve Board's index

of levenue freight for dex, compiled by Dun & Brad¬
the
week
ended Jan. 14, 1961, street, Inc., stood at 267.30 (1930on
Jan. 23, compared
totaled 516,210 cars, the Associa¬ 32 = 100)
tion
of American Railroads an¬ with 267.26 a week earlier and
nounced. This was a decrease of 274.10 on the corresponding date
cars

13%

For the four weeks

7% From

country-wide basis

89,583

Department

and

Freight

South

East

+3;
+2.

Nationwide Department Store
Sales

The

Electric Output 1.3% Higher

(487)

the

year.

Saturday.

Chronicle

Treasurer

(488)

The Commercial and Financial Chronicle

Thursday, January 26, 1961

and

WASHINGTON AND YOU

predicting that he
great President. Pres¬

are

many

will make

ident

former

who

CAPITAL

FROM THE NATION'S

also

and

BEHIND-THE-SCENES INTERPRETATIONS

Eisenhower has reappraised

him,

before

WASHINGTON, D. C.—The par¬
amount reason the average tax¬

and

is burdened with Federal
taxes is very simple.
It is the
cost of national defense and past
These

wars..

sponsible

items

two

are

half

deductions every

billion

for

veterans

Piled

interest
tional

payments

debt.

interest

the

will

payments

benefits

the

Veterans Aid

fiscal

rent

ans

over

cal 1961

year

will be

expenses

Some

because World War

principally
I

survivors

and

veterans

border

added

the

of Wrorld

number

reaching

ans

will

who

pension

rolls.

able

veter¬

War

age

eligibility standards, and the ef¬
fect

liberalizations

the

Now that the educational pro¬

training programs to

grams and

conflict *

veterans of the Korean

nearing

are

expenditures

sions,
cal

end, in

bulk

ture' the

the

will

the fu¬
veterans

for

pen¬

compensation and medi¬
benefits.

care

Congress in 1959 authorized
more pensions cases and higher
pension rates. The costs of the
rates has caused
organizations to

pension
veterans
der

the

about

future

will

some

these

the

under
ans

serious

present

expenditures

and up

Just

for

take

many

going up
years to come.
what

has

happened since 1957.
The an¬
nual pension, compensation and
medical
more

has

care

than

liberalizations
medical

increased

billion.

and

Million

Still

are

major

reason

for

of them

benefits

families

becoming

their

eligible

for

benefits.
There
erans

out

now

22,500,000 vet¬
living in our country. One

every

seven

will

ceiving compensation
benefits

another

The veterans

and

re¬

pension

year

so.

their fami¬

District

—

dependents and survivors

—comprise

total of about 80,-

000,000 of the 180,000,000 peo¬
ple in the United States. A great
number of dependents and sur¬
vivors

are

potentially

recip¬

passed
to the

That's all

vote for'

can

Vice-President.

they have a right to do.
enlarge the electoral

would

It would
allow no

by three votes.
no
other change,

Senators

Congressman.

welfare

and

now.

are

There

are

developed no substantive-

opposition.

The

the future.

Massachusetts,

last

message

Con¬

surance

State

New

has

resolution

York, New Jersey,

Maryland

have

the

It is rather

commentary

pathetic but the peo¬

District have for the
years
been conduct¬

the

last

eight

ing

unofficial

dele¬

for

votes

gates to the national conventions
vote
has
no
standing and

The

to agree to
political parties

neither party is bound

two

the

Yet

it.

have followed the

results in good

faith.

rank

Lincoln's

address.

local

IN INVESTMENT FIELD

Jan.

30, 1961 (Chicago, 111.)
Security Traders Association of
Chicago annual Mid-Winter Din¬

Federal

Feb.

President

that

recting

the

needy

some

caused

has

lifting

Under

brows.

hower

order

surplus

into

sent

Kennedy's

President

di¬

foods

Eisen¬

and

the

sent

needy

was

Chicago

families.

fiscal

1962

Feb.

1961

24,
&

(Houston,
Club

Bond

field

day

March

1961

Houston

Cham¬

the

(Chicago, 111.)

subject

April 7, 1961
New York

(New York City)
Security Dealers Asso¬

ciation annual dinner at the Hotel
Commodore.

only to the requisition of the local
authorities.
The particular items
that could be sent were author¬

April

12-13-14,

Tex.)

Texas

ized

Bankers Association annual meet¬

that

President

Congress.

It would seem

Kennedy

has

got

get1 further authorization from
Congress to increase the variety
food.

authority,

can

but he

easily get this

doesn't have it

Group

(Houston,

Investment

ing at the Shamrock Hilton Hotel.
May 1-3, 1961
National

Savings

Probably he

1961

(Philadelphia, Pa.)

Association

Banks

ference

41st

the

Mutual

annual

con¬

Penn-Sheraton

Hotel.

yet.
Both

crats

Republicans

are

and-Demo¬

Attention Brokers and Dealers:

reappraising his ability

TRADING

MARKETS

American

Cement

Botany Industries
W. L. Maxson

Official Films
Waste

King

will

16,500,000 people of all ages, in¬
cluding 12,000,000 aged 65 and

Tex.)

pions Golf Club.

their

$12.9 billion in benefits to

Society of
economic

methods.

survi¬

Analysts

forum

and disability insurance
systems now cover nine out of
American workers and

Am¬

districts, Investment Analysts Society Mid¬
of eye¬ west Forum.
\;v ',

Secretary of Agricul¬
Benson tne amount of food

ture

the

(Chicago, 111.)

1961

16,

Investment

Stock

Guildhall

the

bassador Hotel.

retire¬

old-age,

ner

vors,

pay

will

speech

long time. There are
critics who say that history

annual

would

States

United

gracefully vote to let the citizens

ple

have that right.

would still

favor

and

something that an island possesssion

Columbia

right.

ment systems.

The

COMING

under other

program or

Federal

Hawaii.

Mr. Eisenhower said that

There as

ratify it if they will.

yet has

been

his

legislatures
enough in session

•

Our New

Carl Marks & Co Inc.

York telephone

CAnal

number is

6-3840

over.

We
known

[This

SECURITIES

FOREIGN
are

living

20 BROAD

the space-welfare age.

column

intended

TEL:
to

own

views.]

STREET

LERNER & CO.

NEW YORK 5, N. Y.

•

HANOVER 2-0050

TELETYPE NY 1-971

Investment

re¬

flect the "behind the scene" inter¬
pretation from the nation's Cap'tal
and may or may not coincide tcith
the "Chronicle's"

SPECIALISTS

period
-

lies

people of the

of Columbia

college
to

District

the

Constitution

the

greatly different from what it
is today and what it will, be in

gress,

Congress

the

the President and

growing in this
The first
security act of 1935 is

social

10
are

year

providing that the

country all the time.

becoming eligible

and

body
cemetery to another. •

amendment

93% of our workers are
protected under the basjc oldage, survivors, and disability in¬

because of the advancing age of
veterans resulting in more and

one

resolution, submitting
state legislatures,
a
proposed

insurance

programs

takes

Washington.

It is before the state

Social
"

two

and

This

this

representa¬

House

Congress to remove

Last

today

GI's

another

from

interested

Continue

Outlays

act of

Climb

improved

greatly responsible.
22.5

fairs

their country,-

for

the

They have never gotten
anywhere. Congress has the ex¬
clusive jurisdiction over the af¬

veterans-

to
are

agitated
in

officials, they

own

Senators.

Pension

standards

care

who

their

for

tive

make

because,

hat

BARGERON

Residents of the
District who
the right to
agitated
for maintain their residences in other
by which they could' states for the purpose of political

have

leadership

the

this calendar year.

laws, veter¬

years

grand¬

are

look

vote

guaranteed loans will end

Social
is

rule

home

some

future

the

his

doffed

to get
They
have

vote.

guar¬

World War
"readjust¬

life"

listen

just

themselves,

children.
cost

trying

the people
have

Columbia

District

the

been

surrendered.

it.

end

will

the

politicians in
Washington would not agree to
it
publicly, veterans can and
should
participate
in
regular
housing programs when their
.special adjustment needs respit¬
ing from military service have
passed. The loan guarantee pro¬
gram should end this year, and
if Congress has the courage, it

won¬

and

cost to their children and

The

Japan

Although

1959."

Act of

after

loan

and
their

civilian

ment

pro¬

Veterans' Pensions

vided in the

veterans

For more than 40 years

provides for direct

assistance

antee

the

assistance

loan

1962

meet

al¬

approached
Kennedy stood

the

effect.

seat.

EVENTS

home loan guar¬
antee program as it applies of
World War II veterans is still

additions reflect both the

These

will

Gov¬

CARLISLE

were

inaugural

Gettysburg

...Ahead of the News

take

father

and

the program
ridiculous.
For

the

in¬

parents.

many

FROM WASHINGTON

was

young

seat

parts

instance,

World War II will continue to be

stand,
his

His

in¬

his

-f'V''

and

seated.

quoted for

ernment.

estimated to increase in 1962

are

the

and the rate they
growing, the whole

tions of the United States

pensions

for

movie of it."

his

programs

been

mother

ready

veterans

pensions

little

touching

revealed

which

His

make

ranks fourth in size of all func¬

$69,000,000. Says Budget Bureau:
"Expenditures

don't have time for books—I'll wait until they

111

result of the veter¬

was

com¬

Pleading the parade he neared
White House reviewing stand

progra'm-compensation and pen¬
sions, medical and hospital care
and readjustment benefits—now

have

expenditures
up more than $300,000,000
the 1960 fiscal year. In fis¬

were

receiving

1962.

appears

are

men

the
in

deceased

devoted

is
,

augural parade.

will

to be going
all the time. During the cur¬

cident

2,000,000 veterans and
of

which

service

him.

with

Guarantee

families

Soars_

party

plaining that they can't keep

country if the
their lib¬

Loan

insisted

a speech which was
best presentations of

the

Secret

extent that

night he went
dinner

humorous skits.

continue

End

the

veterans

Program

Expenditures for veterans
programs

one

liberalized

has

to bed about 5:00

was

The

making

upon

eralizations for votes.
Would

of which he is a member,

re¬

bene¬

because

some

our

law-makers

About
I

such

welfare

growing out of
past conflicts. There are other
things in the budget expendi¬
tures involving our national se¬
curity,
like foreign economic
and military assistance.
obligations

to the famous Alfalfa Club

veterans and their fami¬
lies
feel
that
Congress
will
make a serious mistake in the

defense, and are willing to pay

on-

friend.

many

national

strong

veterans

and

balis and then dropped
party, of a newspaper

inaugural

doubt

should

Congress,

organizations,

Yet the American people want
demand

Yet

influence

the

sults from debts from past wars.

and

our

compensation

fits.

billion, or 11% of the budget
expenditures alone. A substan¬
tial portion of the interest re¬

families

their

ceive

$816

be
five

o'clock.

millions

and

the

benefits

there

course

that

na¬

fiscal

1962

will

veterans

such

as ever.

night he attended five

The first

ago.

years

top of these items is

750,000

year

receiving

billion in de¬

grams, and $41.8
fense spending.

bright and vigorous

receiving benefits who were not

pro¬

Mr.

got about five hours sleep a night
yet awoke the next morning as

fits. It is estimated that by

budget before Congress
for the next fiscal year calls for

nights

Kennedy's Administration he only

one-

budget expenditures

all

nearly

veterans services and bene¬

for

The

$5.3

one-third

than

and

younger

Administration

three

first

The

from less

by 70%, rising

crease

man

the helm.

1962, non-

and

in this
in his

born

was

every

was.

vigorous

connected costs will in¬

service

re¬

the
substantial
payday.

for

1957

Between

payer

cabinet

provided.

benefits Congress has

Kennedy

century

types

one

toe

young. '

Mr.

Nixon,

Truman,
Democratic Na¬

President

tional Convention thought he was
too

ients

Vice-President

10 Post Office

'
'•

■

„

Securities

Square, Boston 9, Mass.

Telephone

Teletype

HUbbard

Z-1990

•

69 *

Full text of Commercial and Financial Chronicle : January 26, 1961, Vol. 193, No. 6024

FRASER