Full text of Commercial and Financial Chronicle : January 31, 1963, Vol. 197, No. 6234

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LEADING

THE

Volume

AND

MOST

INFORMATIVE

New York

Number 6234

197

PUBLICATION

IN

THE

FINANCIAL

FIELD

ESTABLISHED

1839

Price 50 Cents

7, N. Y., Thursday, January 31, 1963

a

Copy

EDITORIAL

President

Kennedy lias presented some of the long-

awaited details about the revisions of our tax laws he

would like to

one can

say

clear

made. It is not always precisely

see

particulars, and, of course,

what is intended in some

no

at this time what Congress will do with any

of the President's

plans

or

wishes. To render the ultimate

outcome of all this touted tax revision still more uncer¬
tain is the fact that at

really know what
as

than

more

point

one

no one

will

provisions mean until such time
ruled on unavoidably technical and

new

the courts have

In articles

especially written for THE CHRONICLE, in¬

was

dividuals eminently qualified to accurately interpret the

of Canada's

course

in the instant

economy

their views. The commentaries discuss the

of key factors, including
capital and

consumer

The statements

complex provisions of law. As all such facts as these
and as realization spreads of

such changes that may finally be made
in the law can hardly bear directly upon the amount of
taxes this, that, and the other type of taxpayer must

ore,

motor

considerable number of months to come at the
very best, some of the optimism about the effect of tax
changes upon the immediate business outlook tends
for

pay

a

'

to fade.

*

*

-

with

the

major economic fields

incomes,

ment,
and

while at

But

so

currently proposed tax revision remains in doubt,

not

to

once

fact of .vast importance has
again been made painfully clear. That circum¬
say

confusion,

one

1961

and there has been in

all too little effort to introduce.

plicity in the law
New Dealers, the

as

the nature of the

Fair Dealers, and

much sim¬

as

case

permits. The

(Continued

page

on

46)

the

ahout

only

the

the past,

a

achieved in such

FJgSfaJIf'

labor

ment declined

natural

national

output

gas
was

with substantial gains

yields for such major crops as
barley, flaxseed and mixed grains.
improved further during
reaching record levels. New

substantially from the 1961 levels*

177,000 more than - for the

1961 and

year

one

same

period of

was an average

unemployment

than

*

high in 1962,

85,000 less

earlier.

peak

B

eight

Bf

previous
seven to

their

1961

level,

growth in real output
since

largest

1956,

and

period.

tion by the

B ^ z*

index

to

being

6Yi% and farm net income showing an
almost two-thirds.
The relative sta¬

up

increase of

bility of

Ms

consumer

prices and the rise in incomes

have meant

Increases in all three components

purchasing power for
Canadians and both consumer spending and per*
sonal savings have been running ahead of their

jflBBr

j0hn g. Diefenbaker

peaks.

increased real

1961

|

\

mining industries boosted the
composite
industrial produc¬
volume

first nine months of the year exceeded the compa¬
1961 total by almost 9%%, labor income

rable

manufacturing and

tion

creased. labor yarning! and'larger farm ipcome
'cbntributing to the gain. Personal income in the

aJ| B

BL&

t

Expanded produc-

war

iip

|||jj
yPlf
|H».

was

highest in the post-

among the

higher level Of economic activity in 1962
brought higher incomes to Canadians, with in¬

|

li

one-half

and

one

over

The

4

The average

levels.

expenditures

index for the first ten months of 1962 surpassed

services

contributed

the

total in the first three-quarters of 1962 compared
with one year earlier.
(Continued on page 24)

comparable 1961 figure by

some

eight percent.

The strong upsurge in the output of

durable goods

on

the

to

consumer

goods

increase

5%

and

in

State,

Municipal
and Public

Housing,

Housing

Municipal

Lester, Ryons

Securities
Underwriters
1

'.

<•

..v

623

Co

&

So. Hope Street, Los Angeles
California

f7"

Distributors * Dealers

17,

.Members New York Stock Exchange
Associate Member American Stock

Exchange
Exchange

Members Pacific Coast

Corporate & Municipal
•

CHEMICAL BANK NEW YORK TRUST COMPANY

PHONES:

770-2541

•

,Y"t 1

N.Y.

770-2661

"»

*

^

*.

■

.t,;j

vi''

i.

•

>

{t

'

\"'f

Munlcipdl Bond Division

Offices; in Corona del Mar, Encino, Glendale, Hollywood, Long Beach, Oceanside,

Securities

Pasadena, Pomona, Redlands, Riverside,

:

BOND DEPARTMENT
P.O. Box 710, New York 8,

•

San

MEMBERS
MIDWEST STOCK

EXCHANGE

Diego, Santa Ana, Santa Monica,
Whittier

FIRST NATIONAL CITY BANK

Inquiries Invited

135 So. LaSalle Street

Bond

on

Southern

MANHATTAN

California Securities

Dept. Teletype: 571*0830
New York

TWX: 212-571-1414

Correspondent

—

Pershing A Co.

BANK

Net Active Markets Maintained

To Dealers, Banks and Brokers

T. L. Watson & Co
ESTABLISHED

Class A Common Shares

Canadian Securities
We

1832

at

Commission

<Southu>e4t

American Stock

;
25 BROAD

STREET




NEW YORK 4, N. Y.

On All

>

distributed

was

on

shareholders

Exchanges

.

;

Teletype 212-571-1213

>

MEMBERS

NEW

YORK

2 BROADWAY

NEW YORK

&

STOCK

•

In

this

EXCHANGE

CHICAGO

of

Shell

one

Shell
of

The stock

November

Oil

Co.,

Canada

1
on

for

to

the
each

Oil.

Dominion Securities

W Food

X

/

Processing

(orporatioti

COo

1 NORTH LA SALLE ST.

-V.',

market

-

&ti&ECY WIRES TO MONTREAL AND TORONTO

Goodbooy

of

Shell

five

CANADIAN DEPARTMENT

Exchange

company

Executed

a

prices in Canadian funds.

basis

Canadian

New York Stock Exchange

first

Orders

maintaining

are

stock either at net New York prices or

Block Inquiries Invited

Members

of

personal

new

U. S. Government,

State and

petroleum,

The

situation

CANADIAN {ANNUAL REVIEW AND OUTLOOK ISSUE
Public

as

For the first 11 months of 1962, employment aver¬

aged

B

the

in

products

job-opportunities created by the expanding econ¬
omy exceeded new job-seekers so that unemploy¬

broad

...

With price! rising by J

percent
the

complexity of our income tax system,
difficulty of making important changes in it
without introducing other complexities whether or not
any of the old complexities are removed or ameliorated.
Any tax on income must, we suppose, be complicated in
now,

consumption

a new

by some

percent.

and the

application, but there is

industrial

the low 1961

The

national output, employ¬

as

foreign trade.

exceeding
of

stance is the vast

its

were

on

extent

,

points this whole question of

many

crude

vehicles.

1962 with employment

significantly in

taking place

New annual records

front.

uct reached

the

advance

Canada's Gross National Prod-

*

•

Canadian economy expanded

1962

asbestos,

wheat, oats, rye,

P.C., Q.C., M.P., Prime Minister of Canada
The

The

established

records

new

important

boosted by a good harvest,

RT. HON. JOHN G. DIEFENBAKER

the fact that any

the

such

and

over

become clearer and clearer,

in

of

iron

ap¬

herewith:

pear

index.

gains in Canadian industrial production is

primary steel, sawn lumber, wood pulp, cement,

and mining industries, and other

of the nations business life.

the

output

devel¬

new

major factor in the improvement shown in

a

manufacturing production

evident

market,

money

expenditures, housing,

opments in the oil, gas
aspects

of

year presents

probable trend

of the

course

the

40

Exchange Place, New York 5, N. T.

Teletype 571-0880
Area Code 212

WHitehaU 4-8161

.

*t

municipal bond department

BANK OF AMERICA
n.t. & s.a.

san francisco

•

los angeles

its

,

2

The Commercial and Financial Chronicle

(458)

The Security I Like Best

Brokers, Dealers only

For Banks,

35 years

This Week's;

in

which, each week, a different group of experts

in the investment and

over

V

,

Our 123rd Consecutive

W. CABELL HOPKINS

Quarterly

<

•

United States

-

u

n

*

selected :'Torn

have

Peanut Company common

"The

on

request

to

with

gether

superior

The Tom

;

Associate Member

f

:

-

Exchange

New York 4 >/

60 Broad St.,
'

Telephone: 363-2000
Teletype: 212-S71
Boston

—

Chicago

•

Philadelphia

1231, 32, 33, 34
Los Angeles

•

San Francisco

•

basket

LYNCHBURG, VIRGINIA

,

.

7--"—TWX

■

77'-

ft$J$6-0920

Private wire to Shields & Co.$

]Neu) York City-

of .77777/7-77-7'' 777777:

Worth, Texas, manufacture
complete line of salted peanuts,

Telephone: BEeknian '3-3622-3

stock that has doubled during the; middle $30's.^The downside risk is
last year than pne that has

halved. 7limited and;,

earnings

once

turn

items-^ver 200 items inall. Most -That is v^fiyaJman/wUibuyiat 30 ground,higher earnings multiples
of these;items are still sold in 5^ tijnes^earnings what hV.wpidd.-,noi^wiU^ixrpbabiy^W<ievident.;for the!
packages which we feel gives thh'5!bjiy" 'at 16 iiftes7 on|$- a year 0$ i^tire-indqstry, The stock is listed
larger pack-•

years,

trucks

2

introduced aimed

to

definite tendenevf

a verv

overlook

an

^^ ^ 77

Effective Distribution

on the New. York Stock Exchange,
also- on; the Mi dw e s.t ! Stock

Exchange,

:

There is

M

flpri

.

in

44

chandise

each

day

Distributor, both by
rier and its

in

Northern Ohio

Ol^V-tn Rp

-

^

-

murch &

t

eventually works out ; its T
o
problem^. What better time fa buy -LJv^IlIIlclIX XT ctl Lllfc/i
ihis iype of -industrr thab
Robert - Lahman -has'.ann0Unced

The

states.

own

tributors

weekly

when

it

is

much

very

when their stocks

common car-

are

.

deflated,

iunx. rar,nrnl

-

m.a

In tain,

bi-weekly

or

retail outlets.

'

T

average yields? Patience is a most
jfegular p important %faptor, for jlnyesting "• in a
store dodr this. type situation because it is '

"

\

to

early but picks the better compa-

a

sizable

brokerage business done in products of affiliated manufacturers.

.

Net

Sales

Tjl BANKERS BOND

ca

Incorporated

1962-,,
1961—___
1959—__

420 W. Jefferson St.

$2,583,555 '7 8.3
8.67
2,248,040

25,909,975
22,033,953
20,851,185
18,525,063

1960—
1958

Inc. %
of Sales

Income

$31,150,489

502 589-1123

For

number

a

after

and

the

As

were

a

mander

Chief

high, innovations

were

few,

.ah

slobov

side

To

suuolv'

the dav

1,132,054

6.1

975,810

5.8

1954

13,420,108

552,118

6.2

5.4

769,207
<

4.i;

^

Alone about 1956

SPECIALISTS IN

No report on Tom Huston would

be complete without special men¬
tion of the late Walter A. Richards

who became President of the

HKUNG

pany

com¬

in 1932. From then until his

Tancrhf
caught

cinti

sion

im-

up

With

with

has become a

during
types

the
of,

c e m e n

the

years

are

read v about

veloped

de-

^re" 7

with

storage

termina"ls""are being

;convenlentty ^located throughout

fine( aggressive manage- the country. Plant expansion is
ably headed by his taking the form of modernization
son-in-law, J. W. Feighner, who .go'that costs are coming- down.
is today carrying along in his
The price war is not over, parr
footsteps.
;
iticularly in the East; but, in genment

a

team

The

financial

condition

is excellent,

of

the

PRINTING CO., INC.

company

130 Cedar

report showing $12,227,000 current

St, New York 6, N. Y.

Telephone: WOrth 4-3033
Year—*1963

*. v"'

''•7 V'"1

(This is under
as

a

the latest

President

.i

John

eral it is

becomingless fierce even
may flair up from time

though it
to

time

Stock

F.

,

Stock

Exchange

Exchange,(Associate)

Union Trust Bldg.,
GRant
;

1-8700

Private

Wire

Pittsburgh 19, Pa.

Teletype 412 642-3080
to

New

York

City

.in

increasing

papers

the

he

of

York

Pittsburgh Stock Exchange

curity of the Free World.

new

position.

process

New

American

for,

and

t

McKelvy & Company

Committee to Strengthen the Se¬

new

uses

v!;--77- 7.^:-:; Securities 3)

Eerlln- He is Chairman of the

primary factor and

lasts few

a

,

^or..on temPOT^y assignment m

d"ay"

In

v,

Kennedy with rank of Ambassa-

lines

present

An

;; Corporate and Municipal ;

-

ing but supply simply got out of
hand. Research and development

conservative

its

qa.

sentative
■
a

demand.

quency. Since the customer is now
king, service is the order of the

to

Q

Demand Was and still is expand-

death^ in July 1961 he steadily
brought the company along sound

„

1961"62 he was personal repre-

exnah-

^

in

.

-

.

Forces

.ah

-

^dn7the ; i- L«««» D. Ctey.
7
>?
the le'
; '
Military Goveraor> u- S. Zone, Germany.
In

7.1

19,743,492

in

-

U.;S.J

and operations got a little

7.3

18,460,375
16,426,144
14,093,197

«

Distributors

Com¬

7was

consequence, prices

.

.

,,

Underwriters-Dealers ;;

Clay

from 1947-49;

panies had what every corporate;
President -dreams of,
a - sellefk
market.

-

>

:

Gen.

->

cement

war,

,

1957

.,

.

the

York

change,

durirtgt.
comj,::

of years

-.

1956—

1955—

ap-

of

S toe k- Ex

mand, expansion-was the order of

1953,

LOUISVILLE, KENTUCKY

.

7.4

1,631,304
1,525,788
1,317,214
1,237,000

the

-New

v

is

Private Wire to L. F.' Rothschild
& Co., N.Y.C.
7--7

Yor'i

proval

ap-

from the 1962# annual report. Not
sales

\

City,subject

; ;

nies in the industry, then it be-V
pears to be at an accelerating rate, comes an opportunity to average
The following figures are taken down a little more. /
;
impressive. Moreover, growth

in

Ohio

-

The company's growth record is

included

IS,

CH 1-5671 Tele. 216-574-9180-81

"
1 Wil-

7;' New.*

extremely difficult to pick- the;
bottom.' If^the investor is a little

300,000

Cleveland

•

Exchange

Building

tiara Street,

.

a

some

Hanna

Z rtS

p

firm of Lehman Brothers;

co., inc.

Member New York Stock

nioxr

^

selling at

fleet of 60 Diesel-below average multiples and above

delivery "service to
RICHMOND, VIRGINIA

the

to

direct

truck-trailers. The Dis-

powered




ap-

- even

potato chips and other snack food

1,523

CAROLIN

74th

NEW YORK OFFICE:

149 Broadway, New York 6,N. Y.

for preciation potential would do;well"
the arch conservative. That is why ;to
purchase Marquette Cement
it is easier to sell yourself on, a Manufacturing Company . in;• the
at -times

peanut butter sandwiches, candies,

VIRGINIA

1669—-Oar

;! Securities Co.9 Ltd. |

independent distributors operating out,

WEST VIRGINIA

584-0226

DA I WA

have

may

yield and better than average

.

SOUTH

we

overpowering

primarily at the important take having its problems. Yet, we know
home trade.
that a basic industry, one that the
Tom's products are^^ sold by 424 cohntry^^lxterally cad^^^not do with-

'

CAROLIN,

1963,

year

Actual practice; may;§eem tq;di^ seen the bottom of the earnings

business its high defensive .qual-f, two 1»gp/

MUNICIPAL BONDS

NORTH

for the

ac--

better than 1962

or

thought of quick profits becomes

ages have been

•;

tivity equal to

ville, Tennessee, Salem, Virginia

ity. In recent

tot the

j^ve given ground to the $2.90$3.00 level 'expected to be reported
for-1962.-Assuming economic

^' The investor looking for high

a

STRADER and COMPANY, Inc.
Victor 6-1333

I JAPANESE
SECURITIES

vation of capital. It is just that the

company's

---

Direct w\re» tO our branch offices

-

issues ip the industry. Earnings
peaked at" $3.55 during 1959 and

other

the

and

'

selhng to yield about 5% on an

credit this truism, but the average curve. In any case, 1963 will be-—/
investor is concerned with preser-;;almost for certain.
^ \
7

T

Mobile, Ala.

-

anditis-oneof the better-quality

Company
■

212 571-1425

HAnover 2-0700

ad^«a.tely fovj*?d fj**> dividend

/

,

of the City.

and Ft.

All Issues

•' ;rv;-

is

plants in Macon, Georgia; Knox*

Industries

Craddock -Terry Shoe

LD 39

the streets

on

•

ferL^
Wf
" b"i!f,ng
A0,; ? 8S!i
0 P?
• :
,7 Presei3^ ^rle'. ^51 ^
e

Marquette Cement Manufacturing

market

a

Co!

Exchange

to

This,

American Furniture

R. F. & P.

sold from

was

•

Stock

64^to *5*1? tBelr

divicjend of

total Security Analyst, Equitable Securities
Corporation, Nashville, Venn. :

.

American'

New Orleans, La. * Birmingham, Ala.
v

bottomlng out., These* companies-

cheao

undulv

-

showplace each year attracting
visitors from all over the world,

First

Furniture

a

Today its main plant is a modern

Virginia Securities

Bassett

with

•.I."Members

afas. Earnings of-several eompa^ are beginningshow this

the

At

-

Columbus, .Ga.,

Steiner, Rouse &

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

outstaAdihg.

d current

*

starting from the most

,

) Members ftew>, York Stock Exchange

on

$1 5g

personnel of three people. Its
single product "Tom's. Toasted

Continuous Markets

us

based

Analyst,

Security

;

beginnings

^

Peanuts"

Call

Com-

Bought-~Sold--rQuoted:

-

considered

be

Stadler,

1650*040' shares' of

ie of 37 the stock can-:

t

*t

,

R.

Equitable Securities Corp.,Nash-

>

;£:TyiHe^:;pe^
in 1946 and:

in 1962,

are

now

Co.,

(Page 2)

Marquette Cement Mfg. Co.—Jas-

outstanding management in one- h •
bp •
• th
•
-t mh
t
k
generation to a substantial opera- ls traded in the Over-the-Counter
tion on a National scale.
'
Market
^
7'^7':
The company had its beginnings
'
in 1925 in a small, frame building
JAMESR. STADLER
}
in

World Wide Wire Service

k.

Louisiana Securities

Ca-

First
Columbus,

President,

:

Ga.

everthelesS)
,we. belleve, that
and growing
jong_term holders will be amply
through excellence of product and rewarded In the
future,' as they

humble

Established 1920

s,

typical example of a

a

company

CORPORATION

American Stock

is

pany

Hanseatic
;

>,
Husfon'Peanut

one

There

todefensive

characteristics.
NEW YORK

five for

extent

unusual

an

spiit two-for-one

was

demonstrated-growth

steady

«

stock as

Security I Like Best" as it

combines

'Available

Huston

Peanut Co.—W.

Hopkins,

Southeastern

Government Securities) against
$3,527,000 current liabilities.
Stock dividends of 5% were
paid in 1956 and 1957, 20% in 1959
and. 5% in 1961. Also the stock

r

*

Tom Huston Peanut Co.
I

Companies of the

'

Columbus, Ga.

;

V

Comparison of Leading Banks
and Trust

:

Huston

bell

assets ($6,663,000 cash and U. S. j

>;

President, First. Southeastern Company,;

Their Selections

Tom
7

f

Alabama &

,

advisory field from ail sections of the country

participate and give their reasons for favoring a particular security.

Bank Stocks

Thursday, January 31, 1963

.

Forum Participants and

A continuous forum in

-

Specialists for

i;

.

.

in

various

v"'-'";'/-"\1

marketing

International

Bank

for

Re-

d ,yevelopme"{
l^°^ Ba^) forT13 f?"
;h'f resignation on Jan. 1, has been
cted a director of O in Malhie;son-Chemical Corporation,
•

-m'

, -

*

IS N.Q.

.

i^qq^vILLE

o

1

im

CENTRE

ov]vja; sakelik

k

INDUSTRIAL STOCK INDEX
23'Year Performance of

t

N

35 Industrial Stocks
FOLDER ON REQUEST

Y

conductinv

a

National Quotation Bureau

securities business from officer at

iirm

,

namename:

of

S.

H.

;"1||

OVER-THE-COUNTER

FprmS Sakellk Inv.

'

96 Hendrickson Avenue under the

,-^7

no circumstances to be construed as an offer ta sett, or
solicitation of an offer to buy^ any security referred to hereinJ

Eugene-- R. Black, president of

the

Sakelik

Incorporated
48 Front

Stmt, Now York 4, N. Y.

CHICAGO

SAN

Investments.
-

»

-

V

•

4.

I.-3J.7

FMNCISCO

,i.

Volume 197

Number 6234

The Commercial and Financial Chronicle

...

(459)

CONTENTS

Tomorrow's Stock Market
V*

'

,

'

<

f

\

*

1

Y

(

1 r

>

I

Y

r

'

\

•

*

\\ '

V

H

f

.

3

Hi

i

*i

fe

v;:

Thursday, January 31, 1963

And Stock Market Valuation!
.By M.Dutton Morehouse,* Manager, Brown Brothers Harriman
& Co.? Chicago, Illinois
, Yv

Articles and; News

,

s

t

t

WX:--'

,

Even if you

PAGE

Mr. Morehouse

sorts

the

out

factors

Influencing a

'

stock's value,

and predicts this year's stock prices will fear themselves ulosely ;
to

mends favoring consumer-oriented

overvaluation

wave of un-

*

of the factors which make the market, Mr. Morehouse opines

five years ago as to

•

V-..V

'-V

when the, "golden '.sixties'' would commence.

\■

;.v;

on

earnings and

as

to

,

.

break £ in
late

the

and

long

be

the

*

by

Starting

many

little

factual

.

.

years

available to

the

bought

on

Industrialists
economy

ruption in the

Morehouse

.

;

the

market.

In

I will be touching

on

areas

in

little

definitive

done

and

which,

as

far

I know,

as

work

will

has

been

be

,

...

j.

,

.,

frenzy

which

from

arises

time to time to bring about those

;

fondly^ term Bull and Bear
markets.

was

stock
a

prices

in

com¬

1962?

This

economy

rising

and in which aggregate

all

remained
at

or

close

'S

,/

which

free

the

to

analyst

ished.

Presumably,

vided

the

has

:l

r

he

factual

has

make

money

against

national

and

run

a

true

stage

given

are

us

forces

to

.easily and

backdrop

a1

establish

To

be SUre, I know

offering sueh

i;

as

of

that

pany was being

'

See',i^£.->>.->-^----.--:-.--(Editorial)

r', "

J

York

Dl 4-4970

•

St.,

Ohicago

Connecting Wires:

Chicago

—

—

Denver

Angeles

1

23

i

Bookshelf

59

Current News in the Field_i__»___

of

long-

that

ulti-

and

earnings

■

■

Electron jc. Capita I

8

Continental

rather

close

to

Mortgage
*'

a

Mutual " Funds

20
58

Coastal States Gas Prod.

Notes

Singer,; Bean

G.IV1AGKIE, lNC«
HA 2-9000

Our
^

Rfsporter on Governments.«-I.-i.--^—23

Public Utility Securities

—j.

Prospective Security Offerings- S—-L

-—-

,

.

Cleveland

Philadelphia

2

St Louis

—-1- 22

Security Salesman's Corner,,--——T
v^

Direct Wires to

Chicago

J~---'s, 55-

Security I Like Best ^llie)--—-.A

;

in-*

48

.

40 Exchange Place, H, Y.

Teletype 212 S71-0610

L- 22

:

—

Securities Now in Registration-

comr-

Cap. Ltd.

(The)————7».——.-20

News About Banks and Bankers'—a-- J8

com_

rather

Electronic Int'l

17

;

Activity--™-- -57

NSTA

;

organized would
-this

11

—

recent

no

of

Market... and You

.

'

,

Los Angeles

San Francisco

Washington

State ofvTrade and Industry (The)15

Tax-Exempt Bond Market-

& Washington

6

—

and You—60

Defines "True Value"
I accept the

theory that in the

mon

ent

stock is the
and

all

sum

a

The COMMERCIAL and

com¬

future

year# we

Ineahs that, the investmparticipates in the long-term
growth of our industrial ecpnomy.
my 'Opinion, it portrays the
reason why common stocks should

COMPANY, PUBLISHER

£5 Park piace, New: York 7, N. Y.

CLAC3DE D. SEIBERT, President
WILLIAM; DANA

Southern Gulf

REotor 2-9570 to 9576
'

SEIBERT, Treasurer
GEORGE J.

•

..

Utilities

MORRISSEY, Editor

Thursday,' January 31, 1963

.

represent

a

substantial proportion

of every security' portfolio. This
on

page

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

Every

Office:

32

135 South La Salle St.,

Chicago 3, 111. (Phone STate 2-0613).

Copyright 1963 by William B. Dana Company
All

rights reserved. Reproduction In whole or in part

written permission is
strictly prohibited.
Second class postage paid at New York, N. Y.

without

PREFERRED STOCKS

SUBSCRIPTION RATES

MONDAY AND THURSDAY EDITIONS (104 issues per year)
In

United

Union

other

Spencer Trask & Co.
*

Founded

1868

Members New York Stock

In

United

Union
other

States,

$20.00

Boston

Naehrille

Newark

Possessions and

S.

per

members of

of

Canada

in

year;

Pan American

$83.00

per

year;

-

U. S. Possessions and

<

per

members

of

Dominion

countries $23.50 per year.

of

Canada

V. FRANKEL & CO.

year)
Pan

$21.50

American
per

INCORPORATED

year;

;
■

OTHER PUBLICATIONS

TELETYPE 212-571-0785 !

and

Quotation

Postage extra).
Note—On

Chicago

Schenectady

Glens Falls
Worcester

made

,_.

account

remittances

Albany

U.

Excliailfe

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 24300

States,

$80.00 per year; in Dominion
countries $87.00 per year.

'THURSDAY EDITION ONLY (52 issues

Bank

BROAD

Reg. U. S. Patent Office

WILLIAM B. DANA

dividends., it

'>

specialized in

FINANCIAL CHRONICLE

Published Twice Weekly

of its pres-

VJ.




Marrud Inc.

13

.

Indications of Current Business

be announced later, but we came

Continued

25

-d

y

New

Bank and( Insurance, Stocksi-_r.

-

have

A ^

J.F.Reilly&Co.,Inc.

From Washington Ahead of the News

to

wj,jcj, the prospectus stated that

value.

For many

i

information

Remonetization"

;

international

economic

mately

;

up-to-the-minute

Einzig: "Re-Examining the Case for Silver

pro¬

appraisal

long run the true value of
v'-i

abquisitiveness which impels
to

regarding economic trends in Canada.

flour¬

permit the stock buyer to differ¬

peak levels

actors

quickly

''

corporate

reign to play out that native

want

*V.

.

security

remarkably

The stock market is like
on

'' Y'

were

Dealer-Broker. Investment Recommendations.^.^

;

predible offering In the, riew^issue,
end markeL of
196J.
-.
- ; ;
fQ

year.
J*'J 1

.*

CAPITAL

Commentary

-

c

.

stable

; * *

5

ELECTRONICS INTL.

Coming Events in .the Investment FieId-«—-—.«^.» 66

reach

to

all-time peak by the year

profits

>?'4'

•

the

account, the
purpose for which the

one

in which the

year

consistently

was

an

noes

example, for the drop in

mon

course,

v'

official,

Businessman's

we

for

during 1963. These articles, of

with

xMf

-

pany floated
in London at the
sharp cyclical movements which time of the south Sea Bubble m

How

,

Los

that it might be

,

vestment value from the speculae

V

Direct

giving you entiate investment from
specula¬
largely my own observations ;and tion. We do
not, however, seem
con j ectures
essentially, the sort*-" to have overcome the impelling
irig outJbiL
basic desire to "get rich quick"',
,

I

.

TELEX, INC.

-Regular Features

assume

today could be sold tomorrow, at

make

Y-

208 S. La Salle

to dwell at length
a
higher price. In recent years,
the - development- of a specific
with the release of increasingly
short-term forecast; I propose to"
complete and detailed informa¬
explore some of the factors which tion
by corporate management,
so,

,

.

Rather than

believe

t

39 Broadway, II, Y. 5

on'

doing

] \ " *"•

IS

,

I

Jr

of Canada's

course

reader

of

relatively easy to
build up the psychology of antici¬
rate, at which
v
buyers have heeh willing to capi-; pation leading to the overwhelm¬
talize" earnings.,
A '
ing belief that any stock bought
,

'

investor,
typically

would

one

the probable

to

as

information

were

?.?,&[

expressly written for the Chronicle and provide the

faith. Under such cir¬

cumstances,

present the views of

we

there

ago

outside

and common stocks

or

*

the dover page,

on

an

secular

representative

:7

leading Canadian Government Officials, Bankers and

..

followed

||

FLORIDA GAS
;

Baughman 25

ITS ECONOMIC PROSPECTS

'biiiids 'np-|to j-~
brings,

which

long-term

value

too

was

inter¬

porary

to

of

Not

tem¬

a

:-«-._Ernest ,T.

CANADA'S LEADING AUTHORITIES EVALUATE

the growth of our. economy..

a

re-

vision, :
merely

of

trend

-term

downward

only

tion

marks the be¬

of

state

4-6551

UNITED NUCLEAR

equally unwarranted undervalua¬

of

.year

ginning

a

tion

early

last

Pace.

*

,

high degree of overvalua-

first,

spring

summer

? :

willing to place market in long-term perspective,
correct answer Wg find recurrent waves in which^:
frenzied

WHitehall

DELHI TAYLOR

/'■'•■'S-Y**

the

STREET^ NEW YORK

Telephone:

:

Economy.—...—-.-.-..--.Hon. James J. Saxon 14

•

a

-

WALL

Branch Banking Hurt the

on

Economy's

Speculation Vs. InvestmentgJre
^vvKen one looks at the stock '

investor psychology

sharp

■

•

whether

the

?

Obsolete Securities Dept,

r

99

:V'
-

1963,^as; in; 1962; is the value

investors, will be

Y

5

9

Why Monetary Ease Will Not Quicken the

;''v

7

y:'.'-'v- ;:¥';•

.v

The:,key: fo common stock prices
in

-

.

present and future dividends.' He refers to post-WW II periods of
market under .and. over valuation,and to the prediction he made

>

\

System..Joseph F. Bradley and Edward J. Mock 12
Restrictions

<

of itsi

sum

turned
»

The HiA's Contributions to the Nation's Social

) *"
-

value is. the

bid

a

that
dogs.

out to be

3

Y

Just How Fast Will the Economy Grow in 1963?

equities in order to participate in the economy's growth. In exploring VYthat in the long run a common stock's true

make

stocks

penny

Grover W. Ensley 10

writer is convinced that investors, should hold a high proportion of

some

FOOLISH

probably

can

those

Evaluation..————Raymond Frankel
Aiuminium, Ltd_—
_._Ira U. Cobleigh

r:

affect the little U"'

"get rich schemes"

We

Duttori Morehouse

1

and, again, pushes P/E ratios above their historic highs. Thp

man

»

and

\.y

YSYY -'.Hi

Further, he believes the investor will continue to keep his

warranted

" "

,

Science Stock InvestingRequires Sound

in ihe latter half of/

| post-May, 1962 valuation sights lowered until the next
•

HOUND

1

^

"

non-durables, leisure and service J

industries until' the economy's growth resumes

1963-.lii™---:.L---_;..''

Economic Prospects for

Tomorrow's. Stock Market and Stock Valuation

r

Moreover, the Chicago branch manager recom*

earnings-growth.

the sixties.

;

'

were—

PENNYVVISE AND

Canada's Leading Authorities Evaluate Its

for

Record
v:> •.

of

the

foreign

.•

—

Monthly,

<

.

.

fluctuations

subscriptions

in New York funds.

•

:

$45.00
.

.

r..

In

and

per

:•<

the

rate

(Foreign

year

V;\-

of

advertisements

'-

BROADWAY, NEW YORK 6
WHitehall 3-6633

r-y-i

exchange,
must

39

be

Teletype 212-571-0500
212-571-0501

;

4

The Commercial and Financial Chronicle

(460)

In

OBSERVATIONS..?.
BY

ties

or

personal

the

of taxation at death

the alleged fallacy

PROGRAM

TAX

Deductions;

Itemized

islation relating to the role

itemized

busi¬

ness-must play in broad arid fruit¬

sus-

ful trade

this line will later accentuate the
an

biack_baU.

^ The proposed changes regarding hand
the
taxpayer's

an

said

spokesman

riot broken off.'') If those partners

pessimism from

A Controversial Proposal

deduc-

action
Presidential tax Mes¬ [i.e. 'the freeze' arid 'the scraping
tions, in curtailing them to the hands
sage to the Congress, because of of the modest relief from double
extent that they exceed 5% of the
its propounding of an unprece¬ taxation']
are inconsistent with

This year's

Thursday, January 31,1963

with both
as

well

as.

our

Western

the "develop¬

"

;

^

sability of Britain's "being in,"
,

comment, "at the
same; time
it would reduce tax
revenues.
These two proposals

action,

♦

of holding that commenting confirm the iridispen-* ing" nations.
~

Funston's quick

anti-British

French

.

"the negotiations have been

donation time, on the ground of pended,

income has actually so accrued.

PERISCOPING THE NEW

decisive

questioning the legality of official

the imposition

WILFRED MAY

A.

considering

are

.

a

ultimate

QUOTE-OF-THE-MONTH

per-

"Putting

Cn the other

milk-toast indifferent re-

tor

a

spender in

as

Direc¬

of the Budget is like using

a

to
watch
the
cabbage
directly into the goat
of de GauU£
patch."—Congressman Thomas B.
must

j

Curtis, before the N. Y. Chamber
Quite typical is the reaction
of Commerce.
provi¬ other parts, of ( ithje program ' that taxpayer's income, is sure to con¬
H'
stitute one of the most highly con- expressed byJ Secretary" of ' State
sions, justifies immediate and full encourage what the message terms
troversial reform measures, It is Rusk. Maintaining his confidence
attention preliminary to the com¬ 'a fuller and freer flow of capital'."
understood that, this 5% proposal to the maintenance of the indivis- n
TT "Wollz-pv TTT
In "any event, the coming con¬
ing Congressional hearings
constitutes a compromise with the ibility of the Western Alliance, and AX* * dliivl XXX
(Treasury Secretary. Dillon will sideration and disposal of this pro¬
former intention to bar all per- the permanence of the Grand Debegin testifying before the House posal for lengthening the holding
sonal deductions, with an eye on sign?
on NBC's
Meet-the-Press
Ways and Means Committee Feb? period will go far in determining
such items as the strategic incur- TV-Radio Program on January 27,
ruary 6, covering the entire run the .esseritial importance attribu¬
rence of home mortgage interest.
he refused to be drawn into dis- ST. LOUIS, Mo.—George Herbert
of President Kennedy's proposals). table to market liquidity.
This 5% "floor" may well hin- cussion of the possible harm to it Walker III, St. Louis investment
Although the proposed major
All such concern by the Ex¬
der philanthropic giving; if only resulting from M. de Gaulle's in- banker, has been named resident
all-over
reduction in individual
change is irrelevant to the basic in
providing a welcome alibi for transigeance toward Great Britain partner of the Chicago office of
rates, the first in 20 years, has motivations tax-wise for imposing
G. H. Walker
solicited donors.
and his semi-intransigeance tobeen and will be, of course, get¬
a lower tax
rate after one year's
&
Co.
Mr.
In any event, however, a greater ward the United Staes.
ting the major share of the pub¬
holding, as motivated by recogni¬ deterrent to philanthropic giving
Walker
is
lic's attention, an unprecedented
No Word Mincer—He
tion that the bunching of more
moving to
would result from the reduction
number of basic changes in other
than one year's profits in a singleThere is no temporizing along
Chicago and
in individual tax rates—with elimlevies, along with reforms, are
will assume
year's payment should be avoided. ination of
gifts via "10 or 20-cent ihe aboye lines by M. Monnet
also advocated.
They run the
his new duties
Also of little weight with our dollars;"
;
=
(who holds no political office) . He
gamut from a thorough overhaul¬
minces no words in insisting on
immediately.
stock market - interested citizens
ing of the capital gains tax, to parf
Action on Stock Options
The
a
n
the indispensability of Great Britare other facets of reasoning basictial elimination of personal item¬
nouncement
The proposal for reform in the .tain's admittance to the "Club"—
ally held to justify the holding
ized deductions, to total washing
was
made by
of
stock
options
is directly in the face of his Chief's
periods' differential, including the treatment
out of the tiny dividend income
William
In
H.
treating
the black-ball,
concept of short-rurt profits being commendable.
exclusion and credit, to company
B i X b y,
a
more professional and a business gains
therefrom as ordinary in"The next step ahead of us must
stock options.
managing
function; along with a slight an¬ come from compensation at the clearly be to complete the unity
partner of the
Epochal Capital Gains Proposals cillary notion that such specula¬ amount of the difference between of Europe including Britain, and
G. H. Walker, III
number

dented

drastic

of

,,

.

>

To Chicago Office

^

This is not to deny the wide im¬ tive
portance of the rate reductions,

of the option price and the value of gradually develop a strong part*
sinful, the stock at the date on which it is nership of equals between the
In England, by way of exercised; coupled with the avoid- United States and Europe."
"It is more than important, it
capital gains taxation ance of "bunching" against the

gains

practice.

will be shown below; they would

proliferate to affect the proposed contrast,

in

changes

the

of has

deductibility

been

year's

tions, etc.

ground

via the President,
has finally come through with
proposed maj or changes in capital
gains taxation; but not in the way

in

the

maximum

to

quatequid

pro quo

19^%,

as

an

partly

on

fortuitousness

the

of

until

this
the

option-ee

permitting

by

averag-

ing of then profit over" the

years

of the option had been held, and instalment pacing of the:\tax 'fbill,
represent

firm.

constructive compro-

a

is

essential

join

our

that

Britain

European

should

Community

under the same conditions
Six*.
on

<jwe

as

issues,

Mr, Walker, has been with the
office of G.

Louis

St.

since

H. Walker

was ad¬
mitted tb general partnership Jan.

Co.

&

and

1958,

1, 1961.

the

must, remember that

fundamental

4:.

Walker .& Co. is a New

G. H.

Exchange member
two firm originating in St, Louis and

as

m*se-

York

Stock

V —.—
world wars have proved, Britain now having officers in twelve
Imposition of tax at the time of is part of1 Europe.: Britain's entry
other cities. It was fourided in 1900
grant, which would into Europe would be good foe
by
the
late
George > Herbert
President's proposals to. rescind be technically more correct, would
Britain, for Europe, for the West Walker, Mr. Walker Ill's grand¬
the existing elimination of capital involve
an
almost
insuperable and for world peace."
father. The Chicago office; located
gains taxation at death and on problem of valuation and prevent
at 208 South LaSalle Street, was
gifts (excepting those for chari¬ any Congressional action on the
Our Immediate Job
established in 1960.
table purposes).
The former option front.
In
any
event,
and
pending
*
*
*
change removing the present pro¬
further
international
develop*
.

Also,

market

As

community does not evaluate the
reduction

nonexistent,

"Un-Freezing" Via Death

expected, the speculative

from 25%

quite

stock market speculation.

The Treasury,

the Street generally wants it.

not

innovation

charitable contributions, stock op¬

is to be

if

coloration

a

carry

uriholyness,

as

rate,
ade¬

for the length¬

directly

bearing

freezing .process

on

the

;

are.-? the. the" option's

ening, of the qualifying holding
vision's incentive to "senior citi¬
period from six months to one
zens" to retain profit-accrued in¬

Those citizens sensitive
of

the

term

over use

ments, it is most urgent for

us

and

Van Schaack Securities

the U. K. to accelerate our indideath, would con¬ doubt pleased with the President's vidual efforts toward furthering
DENVER, Colo. — Van Schaack
stitute an offset to the lock-in
"Liquidity" (Activity) Still the
confinement to the term "prefer- cur own foreign trade—as we are Securities, Inc. is conducting an
Exchange's Main Concern •
complaint of Mr. Funston; and ential treatment."
doing via former Secretary of investment business from offices
The Exchange regards the dou¬ hence should be approved by the
State
Herter's
current
mission at 624 Seventeenth Street. Officers

iyear.

"loop-hole"

are

no

vestments until

'

bling

of

the

all-important

as Stock Exchange

freezing period
in threatening its

In

authorities.

considering

the

PFArTinvc
umLiiui\s

personal

abroad

iu

as

special

TA

representative

President

Kennedy's
for

trade

INTRANSIGEANCE
dependence on activity. Length¬ hardship angle, it must be real¬
negotiations, with Ambassadorial
ening the holding period for capi¬ ized that the imposition of tax at
The past week's visit here of rank and> by private business.
tal gains would further lock in death would be
importantly offset Jean Monnet, the originator of the
Also constructive on these lines
millions of dollars of capital which
by reduction in the tax accruing Common Market project, to accept is the International Chamber of

are

Thomas

B.

Knowles,

Presi¬

dent; Harry J. Kelley, Jr., George
K.

Hayden,
and
Charles
W.
Schoelzle,
Jr.,
Vice-Presidents;
Forest A. Foster, Secretary and
Treasurer;
Andrew J. Konersshould be available for our ex¬ on estates, by reason of the con¬
New
York's
Freedom
House Commerce's
U. S. Council new mann, Assistant Secretary; and
panding economy and helping to sequent shrinkage of the estate
Award, was highly fortunate in program for the, Implementation Will F. Nicholson, Jr., Assistant
create hew jobs," was President size.
highlighting some of the issues in of the 1962 Trade Expansion Leg- Treasurer.
the West's present crisis.- M. Mon¬
net

President of the Coal and

was

Steel

Community, from which in¬

ternational economic organization
v'

WE TAKE

s

t

.

ti

o .u,,

PLEASURE IN

i

*

■

t

f

"

ANNOUNCING THAT

lie withdrew to take
ent role

as

Committee for

MR. WILLIAM

Europe.
P. O'CONNOR, JR.

NOW ASSOCIATED WITH

US AS A

■

►

He reminds

the

to

economic

impact

as

on

WE ARE PLEASED TO ANNOUNCE THAT

.

JAMES

that there is noth¬

us

the

spheres,
GENERAL PARTNER

his pres¬

United States of

a

ing novel in
IS

on

Chairman of the Action

PATTERSON

the

political

IS NOW ASSOCIATED WITH

OUR FIRM

AS

instanced in the

now

NATO and the Atlantic
VICE PRESIDENT

Alliance generally as the result of

General de Gaulle's intransigeance

against Great Britain and quasiintransigeance versus the United
States.

C.

spill-over from

IN OUR TRADING

DEPARTMENT

*\

M. Monnet attests the pre¬

decessor European Coal and Steel

"

"...

'

■

V

ESTABLISHED

Community

1880

set up

420

SRboadumu

but

as

as

"not having been

M.

A.

SCHAPIRO 8c CO.,

INC.

just to pool coal and steel,
a

first step on the way to

Underwriters

•

Brokers & Dealers in Bank Stocks

European Union."

J\fem

5,

Our spokesmen on the Common

JV.

ing themselves in
EFFECTIVE FEBRUARY 1.1963




ONE

Market frequently have been find¬
WORTH 2-5900

a

CHASE

NEW

MANHATTAN

YORK

5,

N.

PLAZA

Y.

dilemma when

publicly commenting

on

the ten¬

of

Britain.

tative

black-balling

(Even

after Tuesday's seemingly

JANUARY 3!,

1963

TELEPHONE HA 5-6600

Volume 197
YY,.

-T.

Number 6234

-i-V

..v>■1

.

The Commercial and Financial Chronicle

.

.

•• '

-v

lv

(461)

-v.;;

v.:

desirable

economically

Science Stock Investing

Computers,

example of

:

'

t

•'

»

i-V t fe*'

key word in this extensive checklist of what to guard
against in sizing up science stocks1 investment potentialities. Mr.
Frankei briefly reminisces on the not too long ago unwarranted} sen¬
sational

rise

and traumatic

of

skills

Evaluation

that

compensated

highly

complex ver¬

programmed

computer

systems have required substantial
time and
•. < <. ,

area.

'

assistance to reach the

point where they could take ad■

companies is said to demand two kinds of

electronic

equipment.

Com¬

by

-

today, sells at

Industries, which has
been overwhelmingly successful
stock, in its
acquisition program, has on

80%

an

dis¬

the

whole

which

technically .oriented .research department are advised, to contract the
services of organizations equipped to span the two diverse fields of

technicians and to jointly,develop, achieved

price/earnings

Monroe,

ratio

was

a

acquired

could

years

high

is

carefully

Litton Industries' Acquisition

advanced

When

'

companies

radically

own

sold.

The

to train their customers'

necessary

investor

Litton

back. The hard¬ from
its
wood door division has recently
abilities.

puter manufacturers have found it been

nature

ac¬

count from the value accorded* it

knowledge—-viz., the usual investment knowledge and, additionally!
competency in technical matters. Those not equipped to finance a

the

and

well advised to examine

deterioration in

the fact that the company's
even

experiences

military and com¬
activities, has resulted in

puter

this

much the quality of growth achieved
company's through acquisition in the com¬
activities. Dis¬ pany in which he invests.

shareholders,
a

of

be cited from recent business

can

the

the company's

vantage of the capabilities of the only two

sophisticated

by

instances

merous

the

of

companied

of

but

they could not be

for

sales

broad

lost

its opera¬

inventory readjustment

such

were

illusionment of

ability to utilize the
applications.
Many
pur¬

satile

disappointments in science-oriented

required in this field compared to non-science
of science

tions and

greater

chasers

companies in order to make doubly clear-the higher order of < invest*
men.'

field wherein the

a

division

new

>

Caution is the

1

particularly good

a

this

of

manufacturers' capability in pro¬
duction has traditionally exceeded

Management Corp., New York City
'*'•-[

and

analog

both

digital, afford

profits

the losses sustained in

customers'

By<Raymond Frankel,/President, Technological Investment;
.

changes

technically possible.

now

Requires Sound Evaluation
>'V-

5

Litton

benefit
technical

acquired

for

example, the latter
huge sprawling office equip¬

by the stocks of many
ment*
concern
with
competent scientific' companies has put them
production
facilities,
a
broad
investment competency. The names of such organizations, including
in
a
particularly advantageous
ample of such a program is to be
product line and a valuable sales
Mr. Frankel's, are supplied.
position to acquire less glamor¬
found
in
the
joint
effort
of
organization. To this solid, but
ous companies with good
Electronic
earnings
Associates,
Inc.
and
unexciting operation, Litton was
Investors have experienced a shat¬ Examination
showed
that
this
In
Phillips Petroleum to adapt analog through exchange of stock.
able to bring knowledge of adtering disillusionment in last glamour concern was simply a
computer techniques to the con¬ some instances companies thus vanced electronic
computing andi
fabricator of vacuum-tight con¬
year's market break. After having
trol of petroleum refining opera¬ acquired fit logically with the ac¬
memory storage techniques, mi¬
mustered the courage to invest in tainers used for the transport of
quirers' technical capabilities and
tions.
niaturization, etc., which through /
the intriguing
liquid gases. Previously it would
There
the research
are
fields
where
the may benefit from
coordinated research eventually
have been considered merely a
yet esoteric
competence, marketing capabil¬
demand
for
scientific
advances
permitted Monroe to offer a sub¬
sciencecompetent sheet metal fabricator. poses a
and
management
strength
ready market for achieve¬ ity
stantially advanced and broad-,
oriented com¬
It knew nothing of the technology
ments of the laboratory. Inertia! brought to it through acquisition.
ened product line. It should be
of cryogenics, yet in the indis¬
In other instances,
panies,
insti¬
however, ac¬ noted that several
guidance systems, high vacuum
years were re¬
criminate excitement of the bull
tutions and in¬
technology, metal purification and quisitions have been made with¬ quired before the results of this
market in
stocks
this
scientific
dividuals alike
out the potentiality of
corporate
pattern
recognition
are
among
integration were effective and, yet
have discover¬
company was
accorded a price- areas limited more
by the ability integration of any kind with the the logic of the
acquisition, an
ed that the de¬
earnings ratio far beyond that tp. achieve
result that the quality of earningsresearch
objectives
extremely large one in terms of
which
it
scent in prices
would
have
are downgraded, the true
normally than
growth combined
by the lack of .marketability
company
sales when
received.
can
be as
rate of the company severely lim¬
once achieved. Military and
space
made, demonstrated a soundness
breath taking
application afford; a ready market ited, and shareholders' interest
product applications. A good

ex¬

.

-

the

On

ascent.
of

Particularly

nancing

disturbing has
been

the

sation

Raymond Frankei

finding

unable

company

one's

to achieve

solid earnings base

research

favorite
any

after years of

expenditure.
have

Investors

to

realize

that

glamour

with

growth and that investment

in

is not

synonymous

industries

technical

tates

technology involved, its
and

markets,

the

of

applica¬

competition,

product profit possibilities and of
course

of

the overall business

ability

management

company

the

on

to

potentialities

involved.
deserve

scientific
must

not

but

obfuscating

A company to

technical

any

have

not

today

broad

must

production

does not necessarily guar¬
antee profitable application. One
of the best

;

to

one

of

■

medical

the appelation

company,

just

a

function

elusive.

a

Misnomers in Science

The graphic arts field is

the

an

where

area

im¬

technologies have had to
adjustments

publishing

1960-1961

in

glamour stocks I had
brought to me for investment con¬
a

of

good

a

in

traditional

"cryogenic" company.

equipment

face

the

particular

frustration
of
being
dependent upon the relations be¬
tween
for

printers

the

and

successful

their

unions

achieve.

It

Reynolds & Co.
Members of the New York Stock
and other

f|

the

well.

as

vanced

often

5

announcing thai

s

DAVID A. HARRISON, iii

intentional

.

Geneva t 0<wtn ev>

-

i

:

:-4*

-

are

•

.

v.-

VA

i

Kg

O

••

on

*;A»

47

page
,

„

*

•-■••

-v

•

v\;a-':

•••

V
.•

'i'

Y

pleased to

•

V

-r.

•

^

announce

that

ballantyne

•'

!

Edward b.
NORMAN

substantial

•

,

'

■

y

**■>•'

•'

«4'..

goodnow

C.

i\'x Xsl*"

•, * (

com¬

d i

m e

c a

KELLEY

v"

ij1''

i

"

l*'/ s'

'w'

!r'

'

■

'"v

August kern
william g.

1

equipment

itself

role

in

Robert m.

of

m.

has

the

kirkland

mac Laury

Frederic m. mc clelland

non-profit

a

scovell martin

un¬

A

h.

Noyes

buyer* of securities of tech¬

nical

companies

must

examine the

place

he

William j.

be

ruane

of

capitalizing.

scientific

>■}

DAVID L.

TERWILLEGER

ratio

profitable activities

advanced

an

is

also
source

price/earnings

a

of 30 to 40 on
in

William

Profits-Source

field

Donald j.

ward

:

well be justified but often¬
the

pany's

true

profit
less

source

may

of

come

publicized

a

com¬

from

and

dane aspect of its business

sumner h. waters

a

mun¬

having

willard m. wright, jr.

little prospect for future growth.
Where that is the case radical

re¬

quired.

,

Continued

kenneth c.

custom-de¬

a

of

Uncovering True

Buyers

ai a

of

corporation.

of electronic

familiar

are

f§

by

that standard¬

adjustment of the price/earnings

ieen admitted io l/ie /iwn>

shown

purchase

Metals and Controls Corporation.

Nu¬

j. J- *v'S'>Z

among

ratio accorded the business is
uab

1/

of

type

The consequence

medical
found

much

|

>

•>.

We

has been that the producer of ad¬

times

Principal Exchanges

ta/ee jilea&twe in

so

administrator

grants

may

Exchange

that

was

Instruments'

v/.*' '

approved not only by the
doctor using it but often by the
hospital staff and sometimes by

To

=

practice

takes

profits- . which

'

•..

•

'■ti i

plete the sale of equipment which

careful to

|

albatross.

different

must be

application of

|i|||||||||||||||||||llllllllilllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllill!llllllllllllllilllll!llll!l^

Texas

<

of

reason,

amount of time and effort to

cial applications. The suppliers of

Corporations1 Names
of

but

labor practices and printing pro¬
cedures before achieving commer¬

its field.

midst

outmoded

even

industry operating

procedures.

await

making technical advances in

financial

ization has often been difficult to

of

EE

One

signed equipment

a

concern

within

a

nies doing such work have found

in competition with diverse tech¬

traditional

of

acquisition

consequence

problems,' with

utilizing

successfully market

be

somewhat

two exceptions the compa¬

or

of

to

to

diagnosis, prothesis and treat¬

ment

doctors

and

a

change in ownership, the ac¬
quired company may well prove

applying electronic techniques

the

tions

as

A

substan¬

of

electronics. Although much atten¬
tion and effort has been devoted

is

applica¬

reduced

often

lqm.{hqSibPPh; the fjeld >of medical?

course,

customer

to

incentive

examples' of this prob*

its

product

sources.

ever,

to

achieve stature in

power

profits

proved

sideration

in¬

description.

field

only

example

boom

his

of

current

large available market, how¬

capability but the ability to adapt

capability within its organization

the

warranting

haze

volved scientific

tially

A

pro-

respectable

a

hardly

diluted. Moreover, with manage¬
ment's

de¬

company

solenoids,

product,

scientific milieu; it must have the

In

the

devices,

micrologic circuits and improved

of

." Pressed further

.

microwave

nologies and

capitalize

To

.

that

advanced

direct

company's

employing electromagnetic

stated

the

the

for

fi¬

"consisting

as

which has since been proven.

owner

necessi¬

thorough evaluation

tions

he

the

seeking

electromechanical

transmission.

duced

come

line

precision
vices

occasion

company

described

product

sen¬

of

another

small

a

■

as

encountered

with
:

by

the

securities

have been elected Vice Presidents
of

our

company.

problems

Packard

Bell

Electronics Corp. two. years ago..
This company, a

\|

120 BROADWAY, NEW YORK 5, N. Y.

J.

WOrth 4-6700

pi

36 Offices from Coast to Coast

|
1

1

in

tary
for

recognized leader

industrial and mili¬
electronics equipment had

consumer,

many

years

received

a

sub¬

stantial portion of its profits from Y
.

..

-

,

;

jf

a

division selling hardwood doors.

When

-iHiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimniiiiiiiiiiiiiiiimiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiliiiiiniiiil




f

the

lumber- market

col¬

lapsed in 1960, not only were the

Kidder, Peabody© Go.
INCORPORATED

20 Exchange Place

•

New York

5, N. Y.

,.

n

Hi

A

6

(462)

ceed with

Tax-Exempt Bond Market

purchases to the extent

thus

unusually

wide

issue

new

narrowing

the

spread

offering

the

other

form, those who. are not follow-

state

for

place

market

ing

the

and

municipal bonds from day to

understandable

S i m p 1 e, ./

day.

clarity has been our aim.

;

•

and

hand,

given

paradoxically / admit

quite

that

quite

not

are

we

where the market stands hi relation

last week's level

to

the

since

or

at

year

fore,, there seem tai be two? market
for

one

for new issues and one

shop worn offerings whether

blocks

market

secondary

or

of

bonds.

<

•

.

'■

The- Commercial

-1+'

v«

'•

'

* -

* ■>

»

.

market

level

ent.

Dual Market Could End Abruptly

market

high grade

deserves

1

•

,

The spectre

•

aria-

it may seem

since

of

duality

this

emphasize

We

■

-•

.ft.

brief

.

Kansas

City, Mo.———ft—

Miami Util, Tax Serv. Rev., Fla.—

comment

blew York State Housing

r

Finance

•

if

average

t

back

This. paradox .' seems

tion.

an

not. condone it to

degree. Most agree

a

be

off

since

of

business has been trans-

2:00 p.m.

'

7:30 p.m.
Noon .
8:00 p.m.
10:00 a.m.
11:00 a.m.

•'
1965-2007

1984-1983

2:00 p.m.

1,136,000

1964-1983

11:30 a.m.

-

February 7 (Thursday)
2,595,000

1963-1988

3:00 p.m.

10,960,000
1,000,000

1983-1976

11:00 a.m.
11:00 am.
10*J)0 am,

1965-1990

37,200,000

1983-1985

2,375,000

Dist., Calif.

1965-1993

8:00pm.
8:00 p.m.

procedure in many ' states. The- West. Orange S; D., N. J.
1,300,000
1964-1993
acted at cut prices with the terms off some/ Lacking a much heavier State of New' Jersey has
been
r
not generally available.
calendar it seems a fair presump- one of our : most soundly " ad¬
February 11 (Monday)
For example,
business in 20- tion that presently reluctant ;in- ministered states financially. Thus Yakima, Wash1,000,000
1965-1983
year bonds transacted at down 10 vestors might be forced to pro- far there is no income or sales
February 12 (Tuesday)
tax in Jersey although the State
urne

sue

Lehman

1984-1983' 11:00 a.m.

1,993,000

hajui^^

bidding would

.

a.m.

8:00 p.m.

No. 1, N. Y.„_ *

one-quarter- likely to obtain for a lengthy peBuffalo, N1 T.
of time for a variety of Among the states and municipali¬
Michigan (State Park Rev.)—
than this figure in- reasons. Should heavy new issue ties deficit financing has been a
Washington Toll Bridge Authority
an undisclosed voir
volume suddenly develop, new js-? /rarity and'slmdeed:'
an illegal
West Kern Co. Water

more

11:00

1^835,000

point.. Actually. the market could; riod
dicates

1:00 pm,
10:00 a.m,

T

Baldwin, Big Flats, etc. SD 1, N.Y.

that it should be ended very- soon.

about

of

a.m.

a.m.

[Underwritinrg group headed by Phelps,, Fenn & • Co., and' including
Brothers, Smith, Barney & Co., Inc., and W. H. Morton & Co., Inc.]

,

fallen

has

11:00
11:00

>

.

market

1964-1983
1966-1988

3,100,000
3,125,000

.

Agency, N. Y.__—89,000,000
■

,

the

a.m.

"

bond: chronistic to. many

2fh-year

10:00

.

^

of deficit financing

some

-

is .10-20

levels

or

r

readers that only to, keep clear the conscience
Oshkosn, Wis.
yields at the; market's) offerihg, the Chronicle's Index indicates; an of this column.- Weft hay el /ex¬
Tcinowanda UFSD
side averages out at a 2^95% basi.3 .easier market situation while new perienced Federal deficit financ¬
this week. The
Index stood -i at issue
advertisements
pQrtray a ing (for years and have gradually, Woburn, Mass.
2.938% last week, indicating: that seemingly stronger market.condi- become accustomed to it and even
obligation

general

1:30 p.m.

*"'• ■

basis points highpr than, at pre?-,

Financial

cmd

of

-.v.'

,

dealers, ft

smaller

Market Widely Practiced

Chronicle's Index

,

1964-1987

6,000,000

1964-1987
dndbecauSe' Lafayette,^jftftft—j——• -15,545,000
However, the bidding for new the Federal Reserve seems not Orange County,: Moulton Niguel •
issues may be accurately charac-:
1966-1995
1,750,000
likely to; alter it's monetary ppli»-;' k Water Imp; Dist. No. 1, Calif.-terized as consistently over-eomft
cies in the near future, we prefer Orange Co., Co. San. D. #12, Calif.ft/; "1,8-10,000) 1966-1995
petitive. ; Although ^ the
dealer f to
.think, that pew issues will conft prangeliOcal Sch. Dist., Ohio—
l,875,000j 1964'-i983
banks have been almost; - con- tinue to attract
.'ft—ft ft
ft! - 2,300,000 1963-1982
highly competi-> Pensacolaj Fla.
tinuously sanguine in their bid*:
1964-1992
live
.4,010,000
bidding - for an indefinite:; Raleigh) N." C.—
ding views' and aggressive lit
1968-1993
2,750,000
period, wlt.i investors more or Richfield Ind; S. D. No. 280, Minn.
their appetites for si^ble partici- less
1987-1996
1,000,000
grudgingly forced to follow- Sam Antonib River Authority; Tex;
pations, the dealers have genalong/ Under these circumstances,? ;
erally been not far behind in their
February 6 (Wednesday)
inventories'are likely to be slowlyCook County Twp. HSD #207, 111.
seal to win new issues and eyed
6,800,000
1965-1982
enlarged but are not apt to bp-•
larger participations. There have
Clinton,- Sewer Rev., Iowa
2,500,000
1965-1990
come
seriously heavy until the
been some exceptions among the
DuPage Co. Comm. HSD #95, 111.
3,343,000
1965-1981
-

t

Price Cutting in Secondary

.

Cincinnati City Sch. Dist., Ohio—_

.

issues

they be remnants: of new

1964-1976

2,875,000

February 4 (Monday)
-

7:30 p.m.
4:00 p.m.

,

Type S. D. #129, 111;

-—-

present* more- than ever be-

levels;

January 31 (Thursday)
ftft—ft
1,700,000r 1964-2002

^

for that
matter; for the simple reason that;
the beginning of

Kane Co. Oil

•

just

sure

Chester, 111. ft——

a

Fremont High. Sch. Dist., Calif.—
1,410,000
1964-1988; 10:00. a.m.
to fit the nature of the, sporadic Would appear likely that inven¬
demand. With diminished general tories might- slowly be aecumuFebruary 5 (Tuesday)
demand, it has been increasingly- latedftfthftftahft'/ extent -requiring" Boulder
1964-1983
2:00 p.nu
Co. S. D. No. RE-2, Colo.
6,000,000
difficult to pinpoint a market' for eventual general price correction. Fort Smith
1964-1988
10:00 a.m.
Spec; S. D., Ark.——
2,500*000
\
(J.
\
■'*
this so-called secondary market
Hinds County Sch. Dist., Miss.——
1964-1978
10:00 a.m,
1,000,000
^ Since the calendar continues to
£

This week we must, at the out-'

set,

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

basis

this

of

purpose

.

the

-ft ft ft/ft/

points represents a
IV2 normal volume of new : issue
weekly
monologue
about
the point cut in price. Thus offerings, financing' and continued Federal
state and municipal bond business other than strictly new issue of- Reserve
support in the long-term
has
been
to
inform, in resume ferings, are being variously cut government
bond
market, \ it
modest

The

In

between

secondary market bids.
On

now

prices

Larger Issues Scheduled For Sale

;

the secondary market would

benefit,

D. MACKEY

DONALD

BY

that

-

•

3:00 p.m.

—

MARKET ON REPRESENTATIVE SERIAL ISSUES
Rate

California,

3^% ' 1982

State—

!

Connecticut, State.
New

York, State

Pennsylvania,

3^05%

1981-1982

Jersey Hwy. Authn Gtd— 3%

New

3.25%

1981-1982

3%%

3.00%
3.00%
2.65%
3.00%

-.3%%

1981-1982

3%%

1974-1975

2.90%

—

State

1981-1982

-

Delaware, State

tax in the late 1930's.

3.10%
2.9p% . New Jersey Poised, to Mortgage
Future Generations
2.85%
2.85%
The State's budget has been
2.5(0%
/approximately /trebled since the
2.85%
early 1950's and there is now
2.95%

February 13 (Wednesday)
Bloomer, Auburn etc., SD #1, Wis.

1,200,000.

1964-1982

8:00

Campbell Co. S. Bldg., Va

1,845,000

1963-1977

Noon

1,500,000

1964-1982

11:00 am.

(N. Y., N. Y.)- 3^%

1981-1982

4,920,000

1964-2001

3:00 p.m.

Cincinnati, Ohio (U.T.)
——
3V2%
Philadelphia, Pennsylvania.—3^2%

1981
1981

3.15% ' 3.00%;

,

"

:

1,340,000

1964- ■1986

'.*• 1:00 p m*

3,750,000

1973 -1983

2,050,000

1964- 1985

3,215,000

1964 -1983

11:00

a .m.

4,000,000

1974

11:00

a .m.

State

Univ.

*

3

January-30, 1963 Index=2.95%
"

.

♦No apparent

"

■

availability.

-

-

'

;

Including

election

|

.

.

•/

•

the

revenues.;

of Rutgers,

N. J.__—

*

this

income

or

year,

tax

Comft Fairbanks,. Alaska-1

sound

a

sales

program

seems

his

Party,

p.m.

——

February 14 (Thursday)

Many, Flk Grove; Village, 111:J.

'Policy

Tax

4,050,000 "

—

—1 -

3.25%
3.10%
mission', reconuhend 4 sales tiax,/ Fond du Lac,- Wis.—
3.30%r; 3.15%Since most of -the legislature and Hamilton
County, Tenn._—.
'3.10%
3.05%
many in the Senate are up for Monroe
Co.^ N. Y;—

-

♦Chicago, Illinois———————ftftft' 3 &%ft 1981
New York, New York—•—ft 3%
1980
-'

of

-scope

-

DuPage Co. Comm. S. D. #99, 111.

Greenville, Tenn.

3.10%
great pressure for increasing the
Los Angeles, California—3%%) 1981-1982 2.25%,. 3.10%
budget bey ond the "potential of its Copley S. D., Ohio
Baltimore, Maryland
!—ft— '3Va% 1981
3.10%'*'2.95%' limited
New Housing Auth.

7:30 p.m.

1965-1993

1,875,000

Danville,Ky;

experimented briefly with "a sales

Asked

Bid

Maturity

11:00

a .m.

2:00 p .m.

12,380,000
Noon

1,900,000

Shelby' City Sch;1' Dist., Ohio—

1:00 p .m.

2,357,000

Smith town Central S. D. #1, N. Y.

flatly ruled out.
.The
February 1,1963

Governor

well

as

groups,

now

are

j

and.

powerful,

as

pressure

pushing

a

$750,-

000,000 bond issue, the proceeds
We are

pleased to

MR.

BURTON

A. BARYSH

f
A

t

off

admitted to

)

Partnership

by

1972

our

'vV-'*.

::'*

,..

..ft.'

and will direct

firm
r.

our

Jersey

presumed

for

newly formed

our

transcends

case

\i,

.--•ft.ftft'ftft-' -f;.' -.ft. /V

rft

ft,. \*••'

v

•

C

iV-

'*■

.

ft;

.

'■

ft

must

I||

DEPARTMENT
ft.':' Vft

cal

ft

..morality.

Herzig, McKenna
50

Neiv

York

&

Stock

Company

*

'■/




BOwlinC Green 9-6880
•'
.

-

TWX

212-571-1697

;

'"•

,

us

public

for

future

ft ft

i

'•'H-/;-//'-'#V'W'/

of

heritage but saddling
with

wonderful

our
a

heavy

debt

1

.

>

of

political vendetta just about

a

r scrapes

the

bottom

of the putrid

political barrel. This sort of stuff
should

vitally / interest

1964-1983

8: 00 p.m.

1,700,000

1966-1989
1965-1989

-

1:00 pm.

1964-1983

-

.

-

[Underwriting group jointly managed by Dillon, Read & Co. Inc.,
Lynch, Pierce, Fenner & Smith Inc., W. H. Morton & Co., Inc. and Allen

Upland Waterworks, Calif

1,500,000

V

1964-1983

7

1,700,000

—————

2,000,000

—

February 20 (Wednesday)

El Paso Sch. Dist. No.
Norwich City S. D.,

11, Colo

11,500,000

N. Y

2,470,000

Rahway S. D., N. J.—.

3,905,000

February 25 (Monday)

couple of

charges involving the immorality

9 30 a.m.

•

Triborough Bridge & Tunnel Auth. 100,000,000

in this politi¬

the

a.m.

1964-1983

14,765,000

Minn.--,-

—

Wausau, Wis.

of

a.m.

11 00

1,560,000
—.

Woonsocket, R, I.__,

most

Borrowing

generations

-ft

Exchange

BROADWAY, NEW YORK 4, N.Y.
;

:

Mo.

but

\ ft'*ft':-//.ft. ft! ft. ftftftftvft*.'.-ft!:

'ft :'ft vft ft.

St. Louis,

personal political

upon

growth is part

Members

Rosemount S. D. 196,

Thus the

10 00

14,000,000

retired

are

1964-1988

1965-1974

58,000,000

Los Angeled, Calif
New Jersey (State of)

interest in this

be interested

impact

1,850,000

1,000,000

Melville S. D. R-9, Mo—

administration.

this

We believe

{ft f/V}"

considerations;

MUNICIPAL BOND

bonds

thereabouts.

or

——1—

February 19 (Tuesday)

Turnpike

-

' ft "ft.) ftV-.c;);.-

i'/ft1..ftV'.

•

1,700,000
2;000,000

be avail-

to

budget crisis would be averted at
least

In
LV,

New

able after these

.

in

General

1,050,000———--

-

Osseo S. D. 279, Minn

underwrite

bond issue to be ultiqiately -paid
revenues

.

has been

would

Tias Cruces, N, Mex———

budget deficits for the next few. Gulfport Mun. Separate S. D., Ind.
(?)
years
with the
long-term Lake Co, Forest Preserve Dist., 111.

) ')■; ft®S

"

V

which

of

announce that

February 1& (Monday)
/Chandler Sch. Dist, No. 80, Ariz.—

Tempe High Sch. Dist., Ariz.—^

ft '/.'ft/

Buena Park,

East

Calif

_L

Point, Ga

" 1,800,000

,1—•

Prince George's County,

bond

3,000,000

February 26 (Tuesday)

ftftft'

Md

1,995,000
12,750,000

—

February 27 (Wednesday)

ft

.

.

/

.

.

v.

Continued

on

page

58

Daytona

Beach, Fla

-3,500,000

1965-1997

-

Merrill
&

Co.]




January 30,1963

New Issues

$108,200,|rd|||p|U
City of :!Ne§ililri
1181111

3%, 2.80% and 2.70% Serial Bonds
Sy

t '~,l*

/

»J

v

'/

^88;^'^8

Interest Exempt
j.u.'m-f.

'

..

.tf

>f-

|£-| ''V^'V" "8.' 'C

^
.

,

«A

.-

♦%*«■

-r

j

*\r

^

,

J

tf•

r$

* ?"

flltP

\

/imV'

feil^p

'^ *,

v,

'$$$0

\ sVU"

*

-VY;

Y *mf, -'-•' ; Y-> tfy^Vf

v\

',. r?

K-.

•

&».

.

*/

«

/•'*.

-

->.

.

.\

JU

»u*t.-'A>

*.«->

j

*

$ *r^

8'\.'vi

AMOUNTS; MATURITIES

?>/1

&\

- ?,«. > r.

,

v^; c »

From Present Federal and New York State Income Taxes

,-*>.u

Dated

AND YIELDS*

;W??$

YY

February 15,1963

*«

V. t-f,.»{"» 5'

Vi/^a^?i'b 11$$

®
^

'

Due August 15,1964-93,

ind.

(Accrued interest to be added)

$11,875,000
11,875,000
11,575,000
11,575,000
6,775,0005,075,000

1964

1.65%

1965

1.90

1966

2.10

1967

5,075,000
5,075,000
5,075,000

2.25

1968

2.35

1969

2.50

1970

.

$54,750,000 3% Bonds, due: $2,525,000 1964-83;
$450,000 1984-92 and $200,000 1993.

2.60

$25,150,000 2.80% Bonds, due: $2,550,000 1964-72
and $2,200,000 1973.
1

1*

7

jV

l\

^

\V

J

T

<

Y8, 1

'

i

8'

•/

'

"*

«

Y

"*

»

4

t

'

h

?

,

£

'*

$28,300,000 2.70% Bonds, due: $6,800,0001964-65;
$6,500,000 1966-67 and $1,700,000 1968.

2.70

.1971

4&

,

1972

2.80

4,725,000
2,525,000

1973

2.85

1974

2.90

2,525,000

1975

2.95

2,525,000

1976

3.00

2,525,000
2,525,000

1977

3.00

1978

3.05

2,525,000
2,525,000
2,525,000

1979

3.10

1980

3.15

;

v-

Legal Investment for Savings Banks and Life Insurance Companies in the
State of New York^and forExecutors* Administrators, Guardians and
W

;C '

'•>

*

'"of tfe

&>-•

«

■

3.30

1985

3.35

,

These Bonds mil

'

1986

3.35
'

'

1988

3.40

1989

3.45

450,000

1990
1991

3.50

1992

3.50

200,000

1993

legally binding

3.45

450,000
450,000

constitute, in the opinion of counsel, valid and

general obligations of the City of New York, all the taxable real property within
which will be subject to the levy of ad valorem taxes to pay the Bonds and the
"l
'/£.$ V
*
^
\
*
VY
'

3.40!

450,000
450,000

3.50

*

'

,A

interest

!;%

u

_

1

(

j

*

1

.

\

t

-y

'

thereon, without limitation

The above Bonds

are

sale and

""Where the

yields and coupon rates are
same/the Bonds are ottered at par.

the

State of New York.

3.30

•

1984

1987

>

others'holding Trust' Funds for Investment under the Laws1 mr'<;

*

3.25

1982
1983

"

-■»

.

2,525,000
450,000
450,000
450,000
450,000

Principal and semi-annual interest (August 15 and February' 15) payable in New York
City at the office of the City Comptroller. Coupon bonds in denomination of
155,000, convertible into fully registered bonds in denomination of
•'. i 31,000 or multiples thereof, but not interchangeable.

•3.20:''-/;,

1981

2,525,000

;

7

'

y

;

ft

r

\

f

,

7

- 4 , ;

<«

^

n

o

as to rate or amount.

offered when,-as and if issued and received by us, and subject to prior
approval of legality by Messrs. Wood, King, Ddwson &
Logany 'Attorneys, New York, N. Y.

The Chase Manhattan Bank

Chemical Bank New York Trust Company

R. W. Pressprich & Co.

Barr Brothers & Co.

Incorporated

""' " ~

<

Homblower& Weeks

The Northern Trust Company

Bear, Stearns & Co.

Goldman, Sachs & Co.

Eastman Dillon, Union Securities & Co.

Merrill Lynch, Pierce, fenner & Smith
-

LazardFreres&Co.

Blylh &Co., Inc.

Manufacturers Hanover Trust Company Lehman Brothers

'

•

'

'

'

■

Ladenburg, Thalmann & Co.

'

'

'

.iff* '*

First National Bank in Dallas

Paribas Corporation

'

*'

The Connecticut Bank & Trust Company
Hartford

_

?

'

Fahnestock & Co.
"

•

Incorporated;

"

~

'

The Citizens and Southern National Bank
^

N

Ponce, P. R.

-

Robinson-Humphrey Company, Inc.

Lebenfhal & Co., Inc.

i

4

Cooley & Company

First National Bank
in St. Louis

Rauscher, Pierce & Co., Inc.
American National Bank
of St. Paul

i

The Fort Worth National Bank

'

Halle & Stieglitz

'

Hayden, Miller & Co.

National Boulevard Bank
^ i::y/■: +

>■-

'

...

Incorporated

City National Bank & Trust Co.

Incorporated

of Memphis

Stroud & Company § Trust Company of Georgia

Kansas City, Mo.

.

Swiss American Corporation

The First National Bank

Newark

Banco de Ponce

-

Harkness 4 Hill
J":- V'.-.'

National State Bank

-

•:

Stern Brothers & Co.

Atlanta

J. B. Hanauer & Co.

The

'

'

""

Company

Boston

^

-

New York Hanseatic Corporation

State Street Bank and Trust

A. G, Becker & Co.

]

Ernst & Company
-

Los Angeles

'Incorporated

"

Wm. E. Pollock & Co., Inc.

^

..

Henry Harris & Sons :

Incorporated 5

'

Federation Bank and Trust Company

'■

Adams, McEntee & Co., Inc.

-

Bache &Co.

Weeden&Co.

"

.

The First Western Bank & Trust Company

B. J. Van Ingen & Co. Inc.

Kailgarten & Co.

Wertheim&Co.

'

Sterling National Bank & Trust Company

Newhurger, Loeb & Co.

of Chicago

Tollner & Bean, Inc.

Tuller & Zucker

of New York

Freeman &

Company

Moore, Leonard & lynch M Murray Simons & Co.
Starkweather & Co.

Sufro Bros. & Co.

::

-

-

Herbert J. Sims & Co., Inc.

Singer, Deane & Scribner

' Walling, Lerchen & Co.
I

.

■

:

8

The Commercial and Financial Chronicle

(464)

New

DEALER-BROKER

.

York

City

Comparative
1962—The

5

LITERATURES

INVESTMENT

tion,

AX I) REC'l )M MENDATIONS
IT

BE

Boston

First

Corpora¬

Place,

Builock
York

Ltd.,

In

r—

between

son

Industry—Analysis- Good&

body

comments

dustry,

on

Equipment

Financial.

Charter

First

In¬

Gulf, Mobile & Ohio, Joy Manu¬

Public

Manufacturing,
Electric

Rexall

Gas,

&

Chemical

Mining &
Service

Minnesota

facturing,

Drug
Gas

Natural

and

&

In¬

dustry,

Royal

Stocks,
and

;

in

Opportunities

Revlon.

on

Common Market—Dis¬

the

zine,

Wall St.,

11

Y.—20

cents

York

New

per

5,

$1.50

copy;

Also in the same issue

articles

are

the New Interna¬

on

New York 4,

N. Y.

California Bank
ative statistics

and brief data on R. R. Donnelley

Stocks—Compar¬
of Dec.

as

S. Strauss & Co.,

31, 1962

155 Mont¬

Sons Co.,

&

and

ration,

46

industrial

Dow-Jones

Front

issue of "The New York 4, N. Y.

cussion in January

Exchange"—The Exchange Maga¬
N.

Inc.,

Portfolio

Northwest Bancorpo-

Nevada Power Co.

x

30—In

current issue of "Pocket Guide"—

New

way,

available

N.

Y.

Also

bulletin

on

Gulf,

York

is

a

5,

Ohio.

&

Broadway, New York 5, N. Y.

Broad St.,

Also

New York 4/N. Y.

available
&

Co.,

Louisville

comments

are

on

Lockheed Aircraft,
Nashville

&

Railroad,

Makers—Report

Co., Inc., 52 Wall

St., New York 5, N. Y.
A, J, Armstrong—MemorandumShields

&

Co., 44 Wall' St., New

York 5, N. Y.

memoranda

Also available

are

Armco, McLouth

on

and National Steel.

National. Tel-Tronics

Co.,

120

Corp.—Re¬

port—-Edward F. Henderson & Co.,
Inc., 15 William St., New York

St. Louis.

memoranda

are

Cement

Co.,

on

Sumitomo

Electric
Industries,; Teijin Ltd.,
Tokyo: Electric Power,, and Toyo

Spinning Co.
Northern Natural Gas-T-Memoran-

dum—Dreyfus & Co., 2 Broadway,

Lines—Report--* are memoranda, on Pacific Light¬
Watling, Lerchen & Co., Ford ing and Public Service Electric &
Gas.
xx
Building, Detroit 26, Mich.
Chas<

Plastics—Memorandum—

W.

Scranton

&

Co.,

209

Church St., New Haven 7, Conn.

Distilling

Comments in

—

issue

current

"Investor's

of

Fenner & S'mith Inc., 70 Pine St.,
New York 5, N. Y.
Also in the

Also available
New York, Chicago

Onoda

Associated Truck

Reader"

5, N. Y.

&

&

New "York 4, N, Y. Also available

New York

report on

Corporation—

Bioren

—

.

—Reynolds & Co., 120 Broadway,
a

Research

available

G. A. Saxton &

Barton

Aircraft

Private

is

Favored Common Stocks—Quart¬

Street,

under

stocks

of

25

Harris, Upham & Co., 120 Broad¬ Aurora

Growing Areas — Study—- Hemp¬ tional Look of U. Si Business, the
Mobile
hill, Noyes & Co., 8 Hanover St., Outlook For The Market In 1963,

—J.

in

both as to yield and
market performance over a 23year period — National Quotation

Bureau,

Analysis

...

listed

the

used

National

—

—

Petroleum Averages,

Dutch

memorandum

a

European

per year.

Share

Rank

stocks

—

Paine, Webber, Jackson & Curtis,

and Royal Dutch : Petroleum and
5, N. Y.
New; analyses of General Motors and
Nippon Kokah — Memorandum-^
Corporate Bond Financing Out¬
Daiwa Securities Co., Ltd., 149
look.
\
Folder
Broadway, New York 6, N. Y.
Andrew Jergens Co.
Analysis—
compari¬
Also

2

Y.

Heavy

Industry,

Corp.

Data

Thursday, January 31, 1963

.

Calvin

Broadway, New —Bache & Co., 36 Wall St., New Averages and the 35 over-theAlso available are York 5, N. Y, Also available are counter industrial stocks used in
on
International
Oil the National Quotation Bureau
the Tire & Rubber bulletins

Co.,

York 5, N.

Corp. and Stone Container

Company

.

St.,

up-to-date

an

current

—

Wall

1

5, N. Y.

showing

Anaconda

Deere

Over-the-Counter Index

Auto

Nev

N. Y. %

issue of -''Perspective"

PLEASED

—

Dec. 131,

Outlook—Discussion

LITERATURE:

FOLLOWING

THE

PARTIES

INTERESTED

SEND

TO

WILL

MENTIONED

FIRMS

THE

THAT

UNDERSTOOD

IS

Stocks

at

Exchange

20

York 5,

Bank

figures

.

Merrill Lynch, Pierce,

—

issue

same

comments

are

on

Oxford Paper

Walston

&

New York
N.

V.

Company—Report—

Co., Inc., 74 Wall

St.,

5, N. Y.

Phillips

Memorandum—

—

Birr, Wilson & Co., Inc., 155 SanSt.,

some

San Francisco 4, Calif.

Potash

Co.

andum

—

of

America—Memor¬

Boettcher

Seventeenth

St.,

&

Co.,

Denver

828

Colo.

2,

St., San Francisco 4, Calif.
erly review — Eastman Dillon, Railroads—Discussion of outlook Shelter Manufacturing, American RaJston Purina Co.
Review
Also
available are comparative
Union Securities & Co., 1 Chase
—-Thomson & McKinnon, 2 Broad-; Brake Shoe Co., American Biltrite Vanden Broeck* Lieber & Co.f 125
statistics of selected West Coast
Manhattan Plaza, New York 5,
Rubber Co., Stein, Hall & Co., Maiden
way, New York 4, N. Y.
Lane, New York 38, N. Y.
Utility Stocks.
gomery

—

N. Y.

Selected

Canadian Business Guide—An up
to

date

outline

of

and

taxation

other matters of interest to those

considering establishing
in

Canada—The

a

Bank

business
Nova

of

High
46

of

100

Stocks—Selected

Yield

issues—Edwards

North

Franklin

&

list

Hanly,

comments

Hemp¬

St.,

6

stead, N. Y.

Wall

New

York

37

Agency,

Canadian Commercial Letter—In¬
formation
adian

wide range of Can¬

on

commercial,

industrial,

nancial

and

agricultural

Review—Yamaichi
of New

St., New York 5, N. Y.

fi¬

Securities

Co.

Canadian Stocks—Selection guide
—Gairdner

St.,

&

Toronto,

available is

Co.

Ltd., 320 Bay

Ont.

a

Canada.

Also

bulletin of Govern¬

ment and Corporation Bond offer¬

ings,

and a

Short

Term

Money

Market Letter.

Canadian Stocks—Memorandum—

Con¬ Terminal

In

1963—Chart

selected—Circular—Draper Dobie
& Co., Ltd., 25 Adelaide

St., West,

Toronto, Ont., Canada.
Cement

Mosley

Market

Review

—

the

—

credits in

on

Commonwealth

Massachu¬

of

Municipal

Boston

Department,

6, Mass.

New

analysis

Inc.,

140

York

Stocks—Com¬
—

Scharff

Carondelet

Corp.,

Sealright

Oswego

Falls

City

Comparison

&

St.,

and

Stocks-

analysis

of

10

Radio

Electronics

Y'

:

—

Comment

—Herzfeld .& Steim*.30, Broad St.,
New York 4, N. Y. Also available
comments

Telephone
Mathieson
Rexall

International

on

&

Telegraph,

Chemical

Olin

Corp.

and

Drug & Chemical Co.

Bulletin

breakdown

on

bond

portfolio

Stocks—
govern¬

and

sources

—

Hanseatic

York

Raw

Sugar

1962—Lamborn &
New York 5,

Prices

—

1931-

Co., 99 Wall St.,

Coastal

States

Bulletin

>» -x

V

*

*

x

v.".'-

v

Air Redaction— Report—Edward

Street,

Co., 300 North Fourth

St.

available

Louis

are

2,

Also

Mo.

reports on American

—r

F. P.

—

Restaurants

—

Memoran¬

Ristine & Co., 67 Broad St.,

New York 4,

Aluminium

Oliphant

!

UTAH CONSTRUCTION

Co.,

61

WEST FINANCIAL

-

Para¬

Memorandum

—

J.

W.

Sparks

&

Government

Employees Life
—

In¬

Coburn

49

Can—Comment—Dean

are

Deere,

and

—

ern
V:.•

M.

Gas
'i.,1

-

A.

comments

are

trading markets

Owens

Transcontinental

New

Ford

Gas

Pipe

East¬

on

o.'''7.'~5

|

-v

Ilanna

Co.—Report

&

72 Wall

' -

.

—

.;

H.

Co.,

Troster, Singer & Co.
Members New York

74
:
,

Security Dealers Association

Trinity Place, New York 6, N. Y.

HAnover 2-2400




Teletype 212 571-1780; 1781; 1782

Bros.

—

Memorandum

incloss,

—

Co.

and

on

Also available
Melnor Indus¬

Maytag.

Chase

—

Memor¬

Parker

&

Redpath,

2

Broadway, New York 4, N. Y.
E. F. MacDonald &

John A. Kemper &

Co.—Report—

Donald

&

Co.,

Union

Maryland Cup

Commerce

—

Memorandum—

Sincere & Co., 208 South La Salle

Plaza,

New

Also available is

Maxam—Memorandum—H.
wirth

&

New York

an

4, N. Y.

andum—Hancock

Viscose

Co.,

Boston 9, Mass.
comments

S.

S.

on

Inc.,

—

Review

85

State

poration, 79

Also available are

Avco, Cities Service

White

Company

Mitchell

&

—

Company,

Broadway, New York 5, N. Y.
Manufacturing

Analysis

United

Corporation

Piper,

—

Keno

Report

Jaffray

&

—

Ilill

Ltd.—

Mines

Draper,: Dobie

Co.,

&

Ltd., 25 Adelaide St., West, To¬
Volkswagcnwerk, A. G.—Report—
D. H. Blair & Co., 5 Hanover Sq.,

reports

are

Also available
Spark

Champion

on

Plug Co. and City Products Corp.
Vulcan Containers
—

Analysis

—

Yonge

60

Ltd.

(Canada)

Equitable Brokers

Toronto

1,
an

St.;

analysis of Milton Brick Co. Ltd.
Warner

Co.—Analysis

Sunstein & Co., 211

—

Gerstley,

South Broad

St., Philadelphia 7, Pa. Also avail¬
able is

an

analysis of Murray Cor¬

poration of America.

Dental.

Pine

Securities

St.,

Cor¬

New York

5, N. Y.

Co., 52 Wall

St., New York 5, N. Y.

—

Analysis

—

Currier & Carlsen Inc., 210 West
Seventh St., Los Angeles 14,

II.

available

K.

Porter

Bruns,

Filtrol,

an

—

New

Avco

are

and

Calif.

analysis of

;
Memorandum—

Nordeman

Also available

port.

is

Co.

Whirlpool

Broadway,

National Aeronautical—Memoran¬
dum—G. A. Saxton &

Weyerhaeuser Co.

Also

Safety Appliances—Memor¬

—

St.,

Neu-

Co., Inc., 5 Hanover Sq.,

Mine

&

—

Products

—

120

Ont., Canada. Also available is

analysis of Texas Eastern Trans¬

Colby

120

Co., 206 High; Ltd.,

St., Lima, Ohio.

mission Corp.
American

Top

Analysis

Co.,

&

St., Chicago 4, 111.

Manhattan

York 5, N. Y,

.

Pershing

—

New York 4, N. Y.

Chart Analysis—Auch-

Co., 30 Broad St., Building, Cleveland 14, Ohio.

&

York, 4 N. Y.
and

—

—Analysis—Hornblower & Weeks,

and

.-x

Producing

St., New ronto, Ont.; Canada.

Marathon Gil Co.—Analysis—Mc¬

-

Can

memoranda

tries

1

Gulf

Fuel.

&

Calif. Also avail¬

comments on Cities Serv¬

Libbey

Tip

Tore

American Rubber & Plastics Corp.
Firm

22, N. Y.

Texas

Broadway, New York 5, N. Y.

Kendall

San Francisco 6,

Orvis

FLORIDA GAS

Reproduc¬

andum

analyses of
Swift &
Co., 25 Broad S't., New Union Pacific Railroad.

Witter & Co., 45 Montgomery St.,

are

Information

Industry—Discussion—Irving

Equipment-

Theatres—Memorandum—

Line.

\

Technical

York

Precision

Hentz

American

ITEK

St.,

H<

AVON PRODUCTS

MOSLER SAFE

New York 38, N. Y.

Strolee of California Inc.—Analy¬
sis—- Mitchum, Jones & Temple-

Weis & Co., 505 Park Ave., New

Building, Dayton 2, Ohio.

York 5, N. Y. Also available are

mount

—

150 Broad¬

tional

General

available

Broadcasting

ice,

G. D. SEARLE

Memorandum

—

Lloyd Securities Inc.,

Bregman, Cummiings & Co., 4 Al¬ Hcpwood, 115 South Seventh St.,
Broadway, bany St., New York 6, N. Y. Also Minneapolis 2, Minn.

Ltd.—Study—Jas.

6, N. Y.,

able

FIRST

5, N. Y.

Stelber Cycle

tion

surance—Memorandum

N. Y.

&

New York

—

Broadway,

dum—Greene & Ladd, Third Na¬

Memorandum—

York 4, N. Y.

B

York

120

N. Y.
Reduction

American

ETHYL CORP.

Memorandum

—-

Peck,

Co., 120 Broadway, New York 5,

Cyanamid and Diamond Alkali.

Hirsch &

Currently Active OTC

New

Rand

4, N. Y.

Broadway, New York 4, N. Y.
Frisch's

■

Broadway; New York 6, N. Y.
.

&

Producing— Swingline—Memorandum—Hirsch
&
Co.,
50 & Co., 25 Broad Street, New York

Gas

Purcell

—

American
.

v

N. Y.

income—Laird, Bissell & Meeds, Aluminum Company of America
120 Broadway, New York, 5, N. Y.
—Report—Reuben Rose & Co., 115

.

Spcrry
Adams

Corp.,

of

for Banlcs, Brokers and Financial Institutions

Co., 120 Broad¬

New York 5, N. Y.

way,

Report- orandum—Julien Collins & Co.,
60 105 South La Salle St., Chicago ton, Inc., 650 South Spring
Broad St., New York 4, N. Y.
3, 111. v;
Los Anjgeles 14, Calif.
New

Aircraft—Comment

Bank

Sears, Roebuck & Co.—Analysis—

way,

City banks for 1962— Alterman Foods—Memorandum— & Middlebrook Incorporated,
&
Meeds,
120 Coggeshall & Hicks, 111 Broad¬ Pearl St., Hartford 3, Conn.
Broadway, New York 5, N. Y.
way, New York 6, N.Y.
Grumman
City

Sea Food Co. and Du Pont

L. F. Rothschild &

- v

Bissell

York

reviews of Van

are

of Canada Ltd.

Lafayette

Chicago Transit Authority—Mem¬

Treasury Refinancing

Air

Bank

Also available

Schering Corp., Purex Corp., Ltd.,
and

New York

ment

particular reference to Container

Co., Inc., 44 Wall St., New York 5,

D. Jones &

New Orleans Bank

&

N/Y.

setts—The First National Bank of

Boston,

—^

Co.,

Camp

are

Electronics

Graphic presentation from

Container

Study with

Hudson

World

tistics and tax data

New

—

—

Broadway,

—Including comparative debt sta¬

Co., Inc., 1500
Walnut St., Philadelphia 2, Pa.
Industry

26

Massachusetts Debt And Tax Data

Laird,

Industry—Study—Suplee,

Yeatman,

Discussion

—

Memofcmdum —'Bafuch Bros.

Securities

Nomura

Lorillard

P.

_

Hickey,

Kajima

struction.

Co.,

Public Service Electric & Gas Co.,

Corp.

Also available New York 4, N. Y.

New Orleans 12, La.

Stocks

&

of

Co., Inc., 1 Wall
Jones,
St., New York 5, N. Y.
Canadian

ation Guidelines

Y.

analysis

an

parative

—A. M. Kidder &

S't.,

Walnut

Pillsbury

Credit And New Depreci¬ Burlington Industries

7 % Tax

is

Mitsukoshi Ltd.

5, N. Y.

1500

New York 6, N.

Co., Ltd., 61
merce, Toronto 1, Canada; New Broadway,; New York 6, N. Y.
Also available is an analysis of
York - office, 22 William St., New
York

of issues

issues—Butcher

46

on

Sherrerd,

York, Inc., Ill Broadway, Vilas

topics— Japanese

Canadian Imperial Bank of Com¬

List

—

Philadelphia 2, Pa.

Scotia, 44 King St. West, Toronto, Japanese Construction Industry-

Canada;

Stocks

which appear attractive with brief

—

&

115

Co.,

York

Y.

6, 3N.

memoranda
American
x

;

on

Ex¬

Number 6234

Volume 197

.

.

The Commercial and Financial Chronicle

.

ingot

:

Aluminium, Ltd.

■■■

price

1960

have

producer ofaluminum, and outlining some basis for belief that its
common stock might, if patiently held, gain market attitude.

described

symphony of secu-

as a

which

in

rities

pounds
ern

solo
to

spectacularly for a

be

instruments.

aluminum

Six

issues

fortissimo, but

the
playing

ago,

years
were

been quite muted; and a

Aluminium,

them,

among

worldwide
mjnum

Ltd.,

scarcely heard at all in the current
bulk fiddling.
sold

at

53 Vs

in

1957

0r

equity

major

This

earnings

on

cos{.

jow

jn

a

range.

ties.

for

de-

a

for

capacity

does

economic,

so

not

position

now

increase

to

the

wide

United

A

fMd'i

■

which

it

a

l

1962

and

55%

twice

January

24th,

for

for

1961,

1962,

dividend

They

promise
mand,

and

as

Central

their

Cable

Shore, Pa.

So, for
production

minum

market

wants
a

capacity

be what is

happening now; and a
great low cost company, like Alu¬

probability. Dividends have been

minium, Ltd., selling its products

paid in each

year

in

since 1939.

There

are

30,662,472

listed

V.

is lower than the market lows for

Aluminium,

any

between

year

1955 and

countries

Corp.

of

Jersey

underpriced and

shares of

(about

common

United

States

duction

from

its $2

billion in assets (be¬

fore reserves).

1962.

would

seem

to

Forms Danor Co.

give at its present price but mea¬

$4.7

ger

recognition to

the

indicated

ARLINGTON,

Cable is

lich

25% increase in net for 1962, the
specialist in the manu¬ massive plant improvement and
facture; of aluminum wires and; expansion in recent years, the up¬
a

cables for the utility industry with
sales of about $11 million in 1962.

This advertisement is neither

is

Va.—Paul D. Orin a securities

engaging

business from offices at 2523 Wil¬

swing in the demand for alumi¬
num, and superior coverage of

son

Boulevard

name

under

of Danor and

~

January 30, 1963

:

moti¬

demands

vated a vast long-term upsurge in
production which reached 719,000

^

.

tons in 1950, and exceeded 2,100,000

last

tons

.;

■

400,000

;

American Depositary Shares

United

The

year;

of these securities.

(of

1930, to 206,000 in

war

any

NEW ISSUE

alone, annual pro¬

in

Then

anoffer to sell nor a solicitation of offers to'buy
offering is made only by the Prospectus*

The

the

In

from 114,000 tons

rose

2,000 lbs.)
1940.

spectacular.

States accounts for about one-half
of- the

total annual production

Free World. Canada's

Ltd.

is

the

,

turned

out

its

alone

and

volume

estimated

an

(A Japanese Corporation)

producer

other, nations,

the

Nippon Electric Company, Limited

Aluminium,

dominant

among

of around

of

4*000,000 Jtoris in the

morethan

10,000,000 Shares of Common Stock

highest yearly production jn

From

Representing :

;

730,000 tons in 1962—

history.

\

the

above

you

:

(Par Value 50 Japanese Yen Per Share)

per¬

can

ceive the magnitude of growth in
this

industry, and

that

caused

demand factor

a

number

a

of

:

new-

to enter the field. Due to

comers

competitive strivings for markets*
profits have lagged woefully be¬
hind these huge gains

put. The

case

Price $16.75 per

in total out¬

share

for Aluminium, Ltd.

.competitively,

however, is quite

attractive. It is believed to be the

lowest cost producer in the Free
World

benefiting

ply and huge

own

power sup¬

reserves

which it mines

its

from

4,650,000 hydroelectric

directly

Copies of the Prospectus may be obtained from any of the several underwriters,
including the undersigned^ only in States in which such underwriters are qualified

of bauxite

through

or

affiliated

companies,

in

The' company,

dealers in securities and in which the Prospectus may

to act as

seven

countries.

legally be distributed.

which

has

now

total

installed

smelting

capacity of 750,000 tons annually
could

swiftly

this to

expand

000,000 tons, if

The First Boston

1,-

The Daiwa Securities Co., Ltd.

Corporation

when demand

or

might justify it.

Kuhn, Loeb & Co.

Glore, Forgan & Co.

Blyth & Co., Inc.

Goldman, Sachs & Co.

Incorporated

Diversity of Demand
While

Hornblower & Weeks

over-capacity in the

some

:

industry has depressed prices and
lowered
there is

profits

-

in

recent

good evidence of

the

Kidder, Peabody & Co.

Zl

;

%

Lehman Brothers

years,

Carl M. Loeb, Rhoades & Co.

Stone & Webster Securities

Corporation

wrapping

Dean Witter & Co.

Bear, Stearns & Co.

A. G. Becker & Co.

Alex. Brown & Sons

Dominick & Dominick

motor

motor

and packaging;

in

Incorporated

industry for engines,
parts, bodies, trailers; in

Francis I. duPont & Co.

Goodbody& Co.

;

:

Hallgarten & Co.

equipment units;

traditional

'windows,

building

doors,

in

industry

,

v

the

roofs,

gan

pots and

The Nikko Securities Co., Ltd.

Reynolds & Co., Inc.

to be sold door-to-door some
recently, in

In

beer,

can

market.

the United

consumption

of

Johnston, Lemon & Co.

The Nomura Securities Co., Ltd.

.

Lee Higginson Corporation

Piper, Jaffray & Hopwood

States per

aluminum




G. H. Walker & Co.
Incorporated

capita :',
is

23

L. F. Rothschild & Co.

Schwabacher & Co.

Shearson, Hammill & Co.

-

supplying part of the 9 billion an¬
nual

W. E. Mutton & Co.

which be¬

pans,

35 years ago and most

Company Inc.

Incorporated

Hemphill, Noyes & Co.

Incorporated

for

screens,

E. F. Hutton &

siding, fixtures and fences; in alu¬
minum

Hayden, Stone & Co.
;

-

transportation for railway cars and
floating

fiache & Co.

Incorporated

industry for
wires and cables; in aluminum foil

the

Paine, Webber, Jackson & Curtis

White, Weld & Co.

electrical

for

Lazard Freres & Co.

Incorporated

l

a power¬

ful long* irange uptrend in demand

.—-in

i

re¬

turn to its stockholders generated

million in market value). Central

lightweight industrial metal has
quite

all

seem

profit margins arid expand the

NYSE. The current quotation of 23

Nathaniel

100

the world, would now

favorably placed to improve its

common

shares of Aluminium, Ltd.

than

more

over

Spectacular Rise in Production

been

was

mand to catch up. This seems to

On this basis, an in¬

in cash dividend distribu¬

'

a

get

period, alu¬

'

as

de¬

to

overbuilt, and had to wait for de¬

than

On

for 204,315

Aluminium

Today, Aluminium common sells which for the past three years
a modest 23 and reflects scarcely
haiye competitively reflected over'at all the $1 billion investment in
capacity, now appear to be stanew
facilities made during the bilized. In the United
States, an

The advance of aluminum

as

Ltd;; announced the acquisition of Thus, historically, this equity is

be

at

^

"growth"

indeed, but

global

in the act."

covering

more

were

"everybody

may

capacity.

of

broadly regarded

tion in 1963 is within the range of

combined,
on
in¬

Mr.

President

$1.00

60c

over.

crease

expenditures,

fabricating

$1.25

present

spent

yyas

was

facilities.

decade ago, aluminum issues

often occurs in industries of
great

substantial improvement

a

9

through enlarged world¬

fabricating

stocks.

'

Aluminium, Ltd. is expectedto

on

fabricating facili¬

own

cap

1961

Davis,

seem

only about 12c higher than the es-i saies and, quite
possibly, to imtimated per share figure for 1962.
prove their profit margins, Prices,

past decade.

Qf

creased

alu-

that existing

producers may

markets

to

were

record

around

increase in

demand

in

Earnings

power.

sion of its

Addition to present pro-

dUCtion

quite dramatic effect

a

market

might

which totaled about $160 million

penda^ie. long

virtuoso

prices

its

outside of North

We have indicated above

recently have

more

higher

designed

of the electric

States.

Apart from its magnitude, and
efficiency in production, Alu¬
minium, Ltd. is steadily building
up a "captive" market by expan¬

so

America.

displaced by Other negotiable

conductor

comfortable

a

is

coverage

reach

industrial nations average use

mary sales from

make

acquisition

improve

Enlarged Fabricating Capacities

Among other mod-

can

into the background and

fade

This

December

in earnings for 1962. Per share net,

that steadily rising use abroad
be most significant, Aluminitime only urn, Ltd. derives 70% of its pri-

play loud and clear, while others
rest; and certain individual issues

can

and

earning

is only about one-third of that;

sections

various

a year.

in

1961, and to 22c last De¬

profit;

Reviewing the recent history of this massive low cost Canadian

sometimes been

26c

cember. On this last price, Alumin¬

ium, Ltd.

has

of

reduced to 24c in Sep¬

was

tember

By Dr. Ira U. Cobleigh, Economist

The market

(465)

-

■

Walston & Co., Inc.
•-

•

Yamaichi Securities Company of New York, Inc.
:

the; firm

10

The Commercial and Financial Chronicle

(466)

Just How Fast Will the

is

Economy; Grow in 1963?

revenue.

,

~

off

to set

one

higher level.

;debates; of.;,

budget balancing,

get

through, the
post;-

tax program

a

of

some

more

••

"

- <

the

men^ expects

°rder

n

g0 while

Govern-

to spend $4 billion

than last,

y€ar

faack

contracted

Federal

on some

of its

it

may j

more ex_

pensive projects in order to help

s-

;i likely^to^be

of the

use

tion's
tive

v

,

,

•

i psychological-single^factor. in giving

than real. It Is doubtful? that more
than'

of the Adminis-

fraction

a '

tration's' tax 'proposals-

be

can

made :effective'-before 1964;^ w
-

^

Taxes and Higher

New

-

the

inflation
worry

;

And there

time

are

that

touch

It will be

It-

provides

-

it

with

a" cushion

against ahy substantial cohtractfons.- -"ico*;*

Costs

77/

-

v

Grover W.

approach' ' full

jrear^td^the

maximum

of

use

resources, ? have *

the. steep

of

the

sec-

to

descriptive. While

ing much attention to getting the

economy moving at a faster pacer
is :behind« the< Ad-

ministration's

putting

top pri¬

a

reduction: pro-

tax

had-paid >furniti^e^

taxes. -This

will be matched.
employers. The rate,

clothing;,

•

*

•* -

#

*

-

.

-

,

The Government gave consum-

buying power

er

a

special lift by

.

^

.

,

>

.

Just how fast .will the economy

budgetary
an

the

standpoint of Gross National
—

the

value

total

of

goods and services produced

all
—

a

rise of 3 to 5% is in prospect. This
would lift GNP to
of

* move

annual rate

an

over

of

in

There

is

economic

interest

;

rates

the 1962 rate

in the cost of

rise

or

an

increase

before adjusting' for the

living. In

stant prices,7 however,

the

con¬

gain

would shrink to about 2.5%. This

would compare
of 4%

with

a

GNP rise

(in constant prices) in 1962.

The slow growth rate means too
much idle productive

capacity. In¬

dustry likes to keep
rate

its

on

near a

of

use

90%

productive

capacity and when it is operating
at that level it is

willing to spend

money to expand and create

jobs.

Currently it is Operating well be¬
low that

figure. Further, the Ad¬

ministration's goal of keeping un¬

employment
4%

is

at

no

vanishing

Prospects

now

are

greater

into
for

thin

than

air.

an

unem¬

Administration,
shown

no

an

high

has

willingness to settle for

annual

as

however,

rate of unemployment

.

growing

a

school

with

thought,

of

could

that

strong

economy

provide

lift ; to the

a

during 1963:

labor,

that caution »' must be

aside for
if the

drastic

more

likely it will
fall short? by dne ,c>r -two? biliiott
dollars. In the last half of the
the prospects are

year,

fluenced

heayy

.by

that, inr
consumer,

spending; business will begin add-

net export .of goods and. services ?
is expectedrto pick updiin:ing .thq 7
year,

shaking off the lull it's

now

in.

Business

will

be

squeezed

be¬

-

\

War

the

since

end

of

not

provide

the

you come up

accounts basis.

for

spending for plant and equipment,

climb

55%

to

the

incentive

you

add

governments

from

a

The

on

This

a

national

represents a

7 Housing

f
■

a

Question Mark

Housing will be

;1ioh - mark ; areas
forecasters

lion.

Part

-in: 19637 Some

1962

housing starts
of

;

of the ques*

predicting

are

drop * below

one

7

a

slight

-when; private 7

were oyer

the-reason

1.4 mil- 7
for

this

predicted decline is the slack-off

eiations and mutual saviqgs.banks, in housing requirements, particu^
Af^r a slow-start,-during the first larly in 7 suburban one - family
banks, went

sav-

The other factor is attrib¬

homes.

to

on

eight months of the year, winding tion in housing aid for VA and
; 7
'
with a record $3 billion added FHA housing. 1 J
to savings during 1962. .Commer7 However, housing starts could
c*al banks and savings and loan
associations also had good years ;:vefy-iwell»;Teach;U;.5im'iUioh-^s7«";'
result; of the stimulus of urban
attracting savings. ; With the inrenewal activity. Further, as to
creased; rates paid to savers, the
Ihe impact of the antidiscrimina* ;
public was a prime beneficiary of tion
order, it must be pointed out
the compeition for thrift. '
that such laws exist now in 19

$104-billion level in 7

prospects 7are

increases

planned

for

total of $161

a

in" govCtnment spending > of

1956.

adequately replenish inventory,
provide

with

billion—measured

it can't induce business confidence

nor

When

upward.

7.

steadily UP

which

spent in 1962 to Federal spending,

can¬

incentives

—

what state and local

World

growth to the point that it

spending

moves

hobbled 7 economic

has

II

The most important is govern-

ment

profits.

in

1963

As for rates on savings for the states and 49
cities, with little if
that coming year, little change is in
any noticeable effect on housing
will prospect. Most of the change took
activity.
$170 plape last year as the financial
,

starting
why

businesses.

new

government's

the

.

push, the

That's

billion.

economic

obviously

of

economy

such

the

as

Commerce
sociation
that

it

is

U.

and

of

business
S,

the

National

Manufacturers,

worth

well

Chamber? of

risking

larged budget deficit to
economy

groups,

As¬

the

to spend
year

moving upward. Further,

wipe

enough
a

revenue lost

new

good

business

portion

—

in periods of decline
a

is

booster; when
on

as

.the

the rise.

the

by

cdmmercial banks—3%%

new

most

on

reg-

ular accounts, 4% on one year or

Near year-end some commercial

roughly $99 billion this banks trimmed back

balanced

against

antici¬

there

was

no

broad

r

Mortgage money for housing

will continue plentiful, as in 1962,
when there was

flow of
tional

7

over.

7

on

rates, but

trend.

Most

some

a

record mortgage

$24 billion. Conven¬

mortgage rates have eased

some

areas

and

the

continued

large inflow of savings will exert
added

downward

rates. Yields also

are

pressure

on

declining on

rate changes

by savings banks and Federally underwritten mortgages.
savings and loan associations were So, for the next few months,
billion, without any allowances for upward, reflecting a catching up
further downward pressures on
a tax cut. In approaching tax re¬
by those who had lagged behind mortgage rates can be expected.
duction an effort .will be made to the pace setters. The rates paid by
Another result of the scramble to
keep the total deficit below the most -savings institutions should place mortgages has been a re¬
ducing

and consumption would gen¬

out

spending community reacted to
prop for the rate structure adopted

pated receipts of $93 billion, pro¬

tax cut would provide for busi¬

erate

serves, as a

to

of

The Federal Government plans

they argue that the impetus that
ness

close

in

en¬

get

as

economy

feel

an

to

This volume

advisers, with growing; approval
conservative

total

to

of the

from the tax cut.

a

deficit

of

at

least

$6

record peace-time deficit of $12.4

continue to attract high levels of

billiop, recorded ;,by

savings during

duction in the quality of credit,
1963, abetted by with marginal borrowers, who
absence
of
inflation
that
determined to come up with a ticipated as a sizable deficit will hower Administration in 1959. In the
previously were not acceptable,
be hard to sell to the budget tra¬ times of z more
vigorous econ- would tend to erode the value of now qualifying for loans ana a
stimulant that will jolt the econ¬
ditionalists in Congress who like fo omy, such a deficit would be in¬
savings. 7 \ lowering of down payment re¬
omy
into higher production, see Federal
expenditures balanced flationary, but in times., of §l,ow : On the other hand, 1962 wasn't quirements and reduction of supas

the present




one.

It

;

set new uted Tto the ^effects' of the Presi¬
monthly records in each of the last dent's Order banning discrimina¬

Spending by Government

put

measures,

commer-

cial banks, payings and loan .asso%

mgs

patient is to regain his full

climate

Regulation, Q, by the Federal

Reserve touched off keen compe-

four-months of the year, the

'

support from both business and

a

ployment rate of about 6%. The

«

-

$570-$575 billion this
vigor, They contend that having
gain of about $20 billion to
operate in such a restrictive tax

3.4%

; -

ticularly property and sales taxes, tition for savings among

between

year—a

^

(4) State and local government. 0f

taxes are scheduled to rise—par-

the balance pf payments

eye on

;

v

.

that —-But the picture is by; no means
could send gold scurrying abroad. dark.
There " are several factors

Looking at it from

in 1963?

Product

Further, on ahyr
it has to keep

Federal spending;

changes
grow

con¬

.

,

rnoord rates in 1962, Jhey also
were, settln8 new records for perto be in a position to adjust to a
will
intensify i; the
cost-profits s°nal savings. Non - speculative
Korea, a Cuba or a Congo crisis squeeze for many companies that ®a vin§s in savings accounts and
with its unbudgeted
impact on make heavy use of the mails. •
• l!fe" m,fr?"c°
f r°ng
-r.r-t^
j
7
?
^throughout thqAyear;? The? lifting

picture in an' effort to avoid" any

am77

:

for

of $60.7 billion. More

^

government planners will be giv¬

its

business

struction won't top the 1962 level

heavily spending, later in the year.will be
running close: to .$2 billion above
;Jhe currentTannual rate.* Also, the

spend

and those with fixed
incomes will benefit from the lack keep producing record peace- time higher cost 01 doing business. The
of erosion of income and savings, budgets. The Administration has one cent rise in first class rates

ority" on

of'1 business, spending

continuation of the?1962 de-j

•

pensioners

what

the..trend

(2) Tougher rules for expense-

.

would be more

That's

the

stimulus to the economy in; 1963;
Those economists: who* try. to .plot

»

the/na¬
labeled it «
a period
of "high? level stagna¬
tion."
Perhaps,
"slow growth"

-

is

contribute e

cline into' the Tearly^part of 1963,

too," fbr self-emplpyed^^ persons is 'paying;th^;Veterahs"'iA(dfministrarup.
tion insurance
dividends early,

economy

business

can

ing to inventories and will spend

will ; continue

course,
on

by.

that

additiorinl; for automobiles, heavy-appliances,'

$15Q he

Security

The figure, of

area

Spending: by
Consumer spending is

v

?

«

ifMploymeftt^ahd

,

the

as

<

;75.

$2billionton^lbrrif. $1Q billion covers the/$356 :somewhat more on new plant and
thnt"Kperson7hillim^iherspent;Iast year; They equipment. The level of business.

will pay.'$24

that; the by the tax

s

Many

,

a

ofJthe'ebopomy to

'

I

investors.

investors, attracted by bull

this year, instead of letting them tween mounting costs and congradation in individual income -account spending will- raise op- fall on, their anniyersary date: petition. Ho wever, profits; may top
taxes
(from 20% to 91%) the aerating costs for many; companies The , dividend,- which r reached the l962 record of $26 billion- by
amount that taxes take out of the and will reduce spending, for eh- pohcyholders^rightT^ter^hefiCirst sonie 5%.7Higher .profits, would
result' in higher- stock dividends.
economy increases faster than the tertainment ^^theatres, ^,hbtels, Wt the year,contained •:not ^ only
lx'jui o7ou'
Gnu7'j
restaurants^ aruiioihers^ caterih^'ib? the regular ^ividendvbubialso> a
economy grows.
Qne imponderable; at this point
business.; The' special. one.^ Much of the $327.6 is how much business will be
The dilemma of the Adminis¬ expense— account
tration is that it has fo li ve; in - a majoi? target of these stricter rules T^itlion ip dividends to VA policy- plagued;
by'.-.labor ^stoppages. J The
cold-war climate where missile is, people who have beerirliving on; holders ^is expected to; find its. biggest obstacle in sight to hurdle
way into the . spending ; stream is. the steel negotiations
development
and
production, expense accounts.
ip^jVIayJ.
«ut some, will go into savings,
space exploration—on top of tra¬
(3)^New?postage Tates, which
^
:
v?
7; Prolonged work stoppages; cquld
ditional military expenditures
went into effect on Jan. '7, mean
w',lle Ppoplf were spending at. slash.7;.productivity;; as,;, ytel!7 as

Ensley?

by the failure

tion's

e e

•

highly selective. basis

a

Spending

see a

Spending by Consumers

annual income of $4,800,

an

more,

in .Social

than pro¬

growth.

Because

prospers.

period of slow growth—much like
19$2. Some economlsts^Jrustrated

make

f

restrictive

more

later,Dr.

On

or

present Federal tax system grows

will

I

peace-time

Administration

signs

aging

inflation, rather

moting

encour¬

some

with

tax sys¬

designed for 'checking war¬ this

tem

to

on

successful

lift to
third
the economy and at the saniei- time

Secdrityt^nsumi^

Jam 17-This"means

feel' that ;the> economy- is
a

for

a

"(#77^\J. Into-1.963/with the.prospect;thai-

"

(1)$1 Social ;

taxes-went up- by

being strait-jacketed by

about.

;

costs:-

lifting the econ¬

out of its lethargy would be

mists

little

be

to

maj or tax reduction. Many econo¬

same

there

will

closest

omy

capacity.

At

the stimulant that Would

war,

come

produc¬

time,

:

of

na¬

ment

,

?more

forward in greater consumption, and fuller
auction may have' to .wait until *on(j - afea where the economy is
1963-~but not fast enough to make use of the nation's resources.
next year, here are some tax. in- likely-; to
j get a lift. Individuals
a dent in the nagging high rate
creases
already in- ik^t'-'urv-lh^^e^.^ending''at record levels as
Tax Cut Is Key Weapon
of
unemployment. Nor will
it
prospect this; year for : business i962 ' ended and; there is ;eyery
Itdidn't take the 7Administra^
grow;
enough
; ;
and individuals, as well as;' added,
prospect; that ;it' will' "parry ^nyer
tioh long to conclude that,, short
to make full

v

be

specialized knowledge and invest¬

ff:»

The economy will go

-

Wide
to

its tax reduction plan through
posals to
^tisfy ;,the, ^dget ha j ; congress. Spending will be going markets, are expected to stay with
ancers,
less speculative but: safer; invest* %
in^Copg^s.
tip otr;the"state-and. local* level,
ments in 1963,
7
HoWeverr the benefits that, the with an increase of about $4 bil|V;0'.
4
l)
'"7.-7"'
7777—
'7
vv"
S'J. ii>/■■■;/
econoni'y could'-'draw Tfrom >a|fax'l'i6n'.in; prospect.'■ When all of this
Spending by Business
reduction enacted during 1963 are is added up, it provides the largest

While the benefits of a tax re-

r

May.

•;

.

f

in

expected

are

the general rule in 1963, dictating

small

i|s ^sp^ding P™-,

back

fluctuations

•

.

ing high level of savings in 1963.

,

;

r7,;.':.aan be made effective before 1964, and he looks forward to the folV. lowing to more than overcome the imponderables we face to provide
a lift during 1963: <1) increased Federal and state municipal spending; (2) continued rise in consumer spending; (3) a rise in profits
and a pickup in business spending later in the year; and (4) some
i
;
rise in housing starts from 14 million last year to 1,5 million this
year. Ample mortgage funds fot housing and downward pressure on
rates are expected, and most sayings institutions are seen attract*
„

to

pone

noraic data and tools at our disposal, The mutual sayings banks'
economist and executive head doubts Administration's tax proposals

t

-

likely

liveliest

Administration may have to

growth this year and
fulisome growth, through better utilization of eco-

rate, or

attitude

an

stimulation of the economy

year:

Ensley foresees over-all steady but slow

faster

fS

\'7-7

,

is

the

of

versus

By Grover W. Ensley, Encccutiw Vice-President, National.
Association of Mutual Savings Banks, New York City
Dr.

Thursday, January 31, 1963

.

strongly held in the committees

conflict

I

.

growth, such a deficit might pro- a particularly good year for the
vide part of the nudge needed to stock market, which at year-end
that handle tax legislation. This get the economy operating at a still was suffering from the jitters

with

:

Such

.

is 7-, Adding to what already

is

an¬

-

f

the

Eisen¬

,

Number 6234

Volume 197

plementary

fees

borrowers.

charges

and

;; v X ; .X

;XXXVX:'' War Babies

a

.

The Commercial and Financial Chronicle

.

.

to

metallic

Re-Examining the Case §jjg

XX ;v

Factor

of war babies who.
nearing their majorities

be

the
They will;

spending field this year.
be

buying automobiles and some
will be forming families. This will
stimulate

not

.

only the auto and

preferable to any amount of;juggling with swap arrangements, in
X

far

consequent dollar-pressure-danger;
such

vStill, inflation should not pro-

such

a

concern . this year.;

I'

'

.

•

t

taxes).

nnet Financial Chronicle that the

.,.

of

trend

capital markets area, the

Treasury will resort to short-term

for

silver

monetization

of

be

that

y;

-:

■

has

become

:

by

the Washington

'

.

im-

re-

firm, effective

Ad¬

February

1880, the firm
is

■

budgetary

Mr.

new

at auction

bookkeeping

O'Connor
v

,

rif

Liquidity - Step,

side. It is

slow

the

This solution would present £oh-

abc®

advantages both ' from
point of view of a.'relatively,

siderable

of the

already topheavy inverted
problem that will oc¬ •ipyramidiV' it1 would ^reinforce; its

a

on -

solution.. ^

a

,

today

Fortunately,
of the

.data

by

labor—we have the

business and

at

solution directed
the leveling out of the peaks

and

valleys

fuller

economic

our

it upward

to push

and

growth
toward

in

rate that will make for

a

of

use

our

manpower

and

physical resources.
.V;'
NV-'X
V \
r''
XvXv■'''••? !•' 'v-v
i

•

>

.

v '

»

,

of

current

the

and by the amounts of

would

withdrawn

be

lation. Given the fact that

there

year

be added"to5 the

prepared "to

Cavanaugh as Assistant

and

of

that

a

two

come

very

such

useful.

after

in

setback

ciated with the Controller's Dept.
of Texas

Instruments, Inc., Dallas,

first

I

goId' SUch a

is

re¬

trend
to

of

silver,
profit-taking

likelihood

of

heavy

selling of silver has become

materially

reduced.

responded by

a

in

The

October

last.

At

the

taking

Even

though, profit-

may

cause

to

profitable

Westminster Street under the firm
name

of Shechman & Co. He was

formerly with Allen J. White &
.

Company:^

-

*.

.' y.




their

iDepartment.
He

upon as a sensible arrangement;
If it were to be remonetized in
Burton A. Barysh
the middle of another dollar scare
it would be looked upon as a .
h rfr
nf
panic measure and its adverse ln charSe of the
psychological* effect' might cancel

ner

a

are

to

hoard

still

in

silver

coins

circulation: in

the United States. Unless action is
taken

in good

Dated January

TT.

secu-

a

silver

re¬

would disappear in "private

of Ernst &

where he was
w,,r-.r-

Mtmicinal

Mu

P

Dent

p

*

-

UllQGrwritCrS

fity created by, the swap arrange- DENVER, Colour-Continental Unwith ' CentfaF Banks,

ments

the

Washington Administration nogfr~
^ec^e<^ or unduly^delayed

derwriters Corp.; Is conducting' h

Hamilton S. Gregg II, President;

rangement whrch would bring George

Company of Oklahoma
Bonds, Series I, 4'/s%
Due

1,1963

January 1,1993

Price 98.727% and accrued interest
This announcement is not

an

offer to sell or

a

solicitation of an offer to buy these securities. The offering is

only by the Prospectus which may be obtained in any state in which this announcement is circulated
from only such of the undersigned and other dealers as may lawfully offer these securities in such state.
made

.

HALSEY, STUART A CO. INC.

'

BEAR, STEARNS & CO.
NEW YORK

DICK & MERLE-SMITH

HANSEATIC CORPORATION

FIRST OF MICHIGAN

,

•

WM. E. POLLOCK & CO.,

CORPORATION

DEMPSEY-TEGELER A CO.,

McMASTER HUTCHINSON &. CO.

time much of the

potential addition to
serve

for¬

part¬

Company,

INC.

GREGORY & SONS

level at which it will become

which

a

ContillGIltcll

out much of its beneficial mate-

amidst the false feeling of

was

merly

_

pity if,

Mu¬

nicipal ,Boiid

today the change would be looked

a

newly

formed

reactions it is

Shechman is conducting, a securi¬
at ,15

will direct

market

firm.

be

PROVIDENCE, R. I.—William H.
from; offices

their firm.
Mr. Barysh

rise in the price of

possible to envisage appreciation

business

Partnership in

degree; of

-

in advance .the dollar's defenses,
If silver were to be remonetized

First Mortgage

silver well above its highest point

to

ties

high

budgetary inflation in the United
States wbuld lead ta an accentuated selling pressure on the dollar.
But . it would be" a ; matter of
elementary 1 wisdom: to reinforce

Public Service

,

time of writing the trend appears

f Shechman Forms Co.

,

$10,000,000

put forward

due

the

reached

Texas.

relatively

the Chinese invasion. Now that the

Indian

asso¬

been admitted

time before

some

last

Sino-Indian conflict is about to be

was

FYPuan(JA

R. Gondrezick, Viee-Presmuch-needed genuine reinforce- ident and Treasurer; and Everet
reinforcement of the ment to the dollar in good time. G. Martin, Secretary.

would

,

the

was

Rockefeller & Co., Incorporated, in
Prior to that he

take

billion dol¬

yenr,

settled

1961.

Lnri,

of .withdrawing'

pay¬

similar deficit

reserve

joined the staff of Schroder

He

accept

lta"ed' bdt substantial amounts

61 Broadway, New
investment bankers, have sales and to the anticipation of
announced
the
appointment of sales by India in connection with
Treasurer of the firm.

Vnrlr

an

are

York,

Ward A.

;

;

circu¬

even

balance of

was a

deficit

ments

which

corporated,

XJnT»r7i r*

1 fi

^ ^ ^
MpTTDn n Q

silver that J

from

the above suggestion, there was a

Rockefeller & Co.; In¬

J

silver output of the United States

Soon

Name Cavanaugh
Schroder

from'

reinforcement

inforcement of the
■

quite a different
wo billion ^dollars

^I^^Stlier^^s^^instekd

anticipated for this

•

Schroder Rockefeller

\

tWn^Hkf twotrn on" dollars

■-■■.XV

■

.

be

silver could

^.jlor^|es

lars

XX:' V
-• '.*'•*«v.'V..'*';.

would

the

may

,

etization of silver would result in

Government,

tools to provide a

T*xrqVi' Po rf ripy*

toGeneral
It

rial effect. It would be

0?thHoUar.Xhrremon! ?°,dTO^Sw ^er arrangements

defen&es

all segments

and wide use of

economy

economic

with tre¬

—

mendous spending by

Jt

bf

ment planners

with

Preferable to Swap Deals

,

lhattdf If sbme

business leaders and govern¬ ■base;:
until they come bp

cupy

^

Security

Yet it is of the utmost import-

produces the prospect of steady Instead of adding to the top weight

somewhat

,

f.

Preferable

.

growth,

.

y*

^Kennedy did in fact foreshadow the dollar as a result of the heavy
nf
MrTc^nnn & rmS
some un-f budgetary deficit of the United •
.
-n
T»rnndwav
npw
Ynrk
pany,
50 Broadway,
price known reason his announcement States.
pany' 50 Broadway, New York
City, has announced that Burton
of his intention has
°f his intention has not so far
Warns of False Feeling of
A. Barysh has
been followed by action.

the point of view of the
defenses of the dollar that action
the
should be,taken without delay. It
market for Treasury bonds at rates
non-inflatioiiary increasev xniih^WPuld be ;a-^^niistake^totdefer "the
that will be more competitive with
ternational liquidity and from the; change until the dollar will come
other capital markets securities.:
'pdiht^bf ^i reinfnrcihgf the i^preChnder fire^ "The patchwork
However,, keeping a wary eye defei^es^^ of the dollar^^All
arrangement;:-wthXforeign:
oil the international movement of Vnrioiis' rival blahs; for .Increasing jAPn?tary
authorities can only"
gold, -the^Treasury; isX increasing taternational
SflrS We'as a stopgap to camouflage
the
volume
of its weekly bill
rangements which -would greatly *he pressure'on- the American gold
issues. If it can achieve a bill fate- accentuate the
inflationary 4char-r :Ve^crve." From" the pbint bf viewl
that is competitive with the inter¬ acter and
potential instability of of the intrinsic strength of the
national money market, the Treas¬ the international
monetary struc- dollar;: it makes little or no difury feels it/ can prevent any con¬ ture. A partial remonetization of fcrence whether the gold reserve
sequential outflow of gold.
1
silver, on the other hand, would declines or American short-term
When all the pluses and minuses place. the• international motietary ■: liabilities. to foreign C e ri t r a I
in the outlook are added, together, system on more solid foundations, Banks increase.
it

an

.

cates. .Testing in January with an.
bonds indicated ah extensive new

formerly

was

current^^ such legislation but for

at

purposes

jay competitive bidding^

using private underwriting syndi¬

offering of $250 million in 30-year

other

tion of silver, to. be reckoned for,

has successfully launched a: market value or purchase
wrinkle: It is selling bonds
subject to adjustments.

ury

Exchange and
various

O'Connor, Jr.

officer of McDonnell & Co., Inc.,

overlook i the

savingsMn its: efforts to lengthen:

Stock

Exchanges.

borrowing tot finance most' ef its ^suggestion was to the
of the United States. Moreover,
requirements, in deference without any attempt at maintain- would be advisable to make the sterling is not the only currency
to the balance of payments prob¬
ing a fixed gold-Silver ratio, the; necessary legislative: changestthat; which might attract funds from

Federal debt maturities, the Treas¬

New

the

York'

:

Wm. P.

member

a

of

inflation, but its extent is not
likely to be comparable to that

monetary authorities of the^lead- would release the officially held the United States. It seems likely
long-term market; An atterhpt will ing countries
shoultf. agree among silver .stock for; the1 requirements that -one or other of the leading
be made in long-bond" offerings to
;them^lves to include in their me9"9f;tte^^defense^^^bf th^ dollar; XTo-^^^-currencies would cpme :tOy be retap as much us possible from real tallic reserves a certain propor- wards the end of 1961 President garded as being "harder" than

1.

Established in

proportion, the.y huge American
budgetary deficit is bound to re¬

on

to

part-

nership in the

:

worjd follow the American example to approximately the same,

intends to embark

been

general

:

fiult in heavy pressure on the
dollar. It is true, Britain also

„

has

admitted

portant countries of the Western

*

William

O'Connor,

Jr.

a.

budget

a

announced

that

v p.

cash

lem. .But, it; won't

120 Broadway,

ministration, Unless alF the im¬

seized

partial

a

Schley,'

impunity v .toah /extent ..ens

visaged

Such a Move
For this reason, this matter calls
metali Mjfefor* urgent; consideration. In the
effect; that, United States in particular, it

should

bringing about

,

defenses

-X
*

Moore &

business

a

Xpossible.; to^ unbalance;
'■*; with?

President Kennedy Intimated

opportunity provided by the firm

Capital Markets Activity
In the

'

bringing about

matter of some urgencyiTt is

Factory wages will ri$e along with LONDON, Eng. ---}^ohmXmpnttis:^boards.and .cease to be available
corporale profits,: which could top have passed since I fi^t suggested;^for?;Tnt^rnationah mio^
pur1962's record of $26.1 billion (after in an article in the
Commercialposfes.tX;; ;"
' : '
;
•

XX-X:':X'-X^XXXaX^X" ^

taxation-New York City, have

dollar's

step. Or. Einzig also: retails that Pres. Kennedy contemplated
move at the end of 1901 but inexplicably shelved the idea.

a

T

lH IVlOOrG & uCillGV

revival, the reinforcement of the

when it would be* too late-for1

occurs

cut

;

and (3) leeway: still remaining

before the next dollar crisis

to

y

as

(Y frmnrtv Por»fnor»

expenditure for the

y

so

instilling dollar^cohfidenco is concerned^ particularly in view
ofs (1) ourplan to push * deliberate deep unbalanced budget; (2)

-

with the sale, of hard goods;' fur¬
niture and heavy appliances. x ;
\

any:', real

sake of

Einzig takes another; look at Jiis suggestion made in this spa«e
last October 4,1962, thai we Should re-monetize silver. He finds this

'

increase

11

^ wUIlIlUl Jl dl L 11(31

much

amount of juggling

Administration

Dr.

4

dollar

monetary authorities.
1 •
In view of the decision of the
and

housing fields but basic industries
such as steel and aluminum, along

I Vide

;

By Paul Einzig

and moving, significantly into

the

.with swap.arrangements between

For Silver Remonetization

look is the crop

in

than any

more

would strengthen

reserve

confidence

*

Another plus factor in the out¬
will

(467)

January 24, 1963

INC.

COURTS A CO.

FREEMAN A COMPANY

J. S. STRAUSS & CO.

The Commercial and Financial Chronicle
12

.

.

(468)

>

Thursday,- January 31, 1963

industry problems has contributed articles on investing and kindred
to the smoother operations of the topics appeared in three English
tion assembled in the Old Waldorf- long-term capital markets. Careful language daily newspapers and in
Astoria hotel in New York City systematic research on the internal two foreign language newspapers.
operations of investment banking The IBA supplied four booklets
on Aug. 8, 1912 and founded the
distributed by; the
local
firms
gives results that enable to be
new organization. George B. Cald¬
Chamber of Commerce. Another,
well, Vice-President of the Conti¬ the individual firm to make opti¬
decisions. As the
nental and Commercial Trust and mum
general but more recent example, of a
Savings Bank of Chicago, was level of decision making at the major effort to inform the public
banking business. The founders of

the

The IBA's Contributions to

Nation's Social System

K The
>

,'

'

' \

.

< 1

t

%

/

x

(r,

,,V

f

^

v%\'/,,jJ

i,

''

,

5,11'

»/'■!, Vu,,f

f

i

Bradley and Edward J. Mock, Members
the Faculty of the College of Business Administration of the ■
Pennsylvania State University, University Park, Pa.

By Professors Joseph F.
of

Associa¬

Investment Bankers

elected the first

president. Speak¬

ing at the anuual convention, held

firm

level

increases, The welfare
advanced.

of the country is

I

America

of

.

(3) Make our association a
working one and not purely a
fraternal organization;

^

is that the functioning of the capital markets is improved thus raising the standards of living of the

the contribution of these activities

from the scene,
of this paper is to
analyze the impact of the functions
fade

generally

of

Asso-

Investment Bankers

the

ciation

on

the American heritage,

that is, the impact

'higher standard

a

country, and that the democratic
process is improved. The main
theme of this study is to indicate
how the activities of the IBA

purpose

benefit both the membership and
general welfare.

of the IBA on
of living and

°h 'the democratic process.

What Is the Investment

Investment

9

nnf?r>atirmni

Bankers

The years preceding the forma-

tion of the IBA were ones marked

Asso-

nnnrnvL^tp?v

by dramatic growth of cotpora-

tions and by increased Ac,
state and

nssnpintinns nf hnsi

2,000 national associations of businessmen functioning in the United
States.1
Trade
associations
are

cWem

Ranges in the ^economic sy

with

businessmen

or

in the

same

hGoaiisp

industry band together
artion

unitGrl

^

dispersed actions
the members acting individu-

of

nop

has defined trade
associations as "nonprofit organizations of business competitors in
any
single industry, formed to
Judkins

ally.

render

number

a

~

J fn

try's

production, sales, and employment."2 One of the interesting
features of the Investment Bank-

association depends on
support of its members for
authority.
Yet,
the
association

ing

changing economic conditions in
the early 1900's made almost in-

™

from

its

.

related

being

-

8Q0

evitable the formation

separate

members.

the

to

of

separate entity is the concept of continuous succession. This
a

The

Investment

the

Bankers

to

for

a

busi-

vestment banking industry. At the

A...

continues

,

despite

.

A

.

the

1917

plan, over 331 university profes¬
drawn

administrators

and

sors

from 173 different institutions and
49 states have spent
in New York

several weeks

City at the Forums.

At these Forums,

senior officers of

financial institutions discuss their

function

they

as

see

to the American

it in relation

economy.

There

little doubt but that these

be

can

edu¬ Forums have had a profound ef¬
fect on the teaching of finance

annual convention, the

cation committee reported that it
had

planned

preparation

the

areas:

of

study in these

corporation finance, railroad

subjects in American universities.
The teachers who attend
these
sessions obtain information both of

practical and theoretical nature
relayed to students, many

a

unreliable promotions by irre¬
sponsible promoters.

ipal securities, the stock exchange,

of whom will become the leaders

and the

of

legal principles of

a

mort¬

that is

tomorrow.
Directly, then, the
that these Forums have been a device for
five courses would be given under disseminating information to the
the auspices of university teachers general public. In addition to the
Association recognized its obliga¬ who would cooperate with the In¬ IBA's direct efforts in disseminat¬
tions to the general public as well vestment Bankers Association on ing financial information to the
as to its own members.
integrating subject matter. In ad¬ public, it has cooperated with its
to
the
preparation
of regional Group Education Com¬
The early leaders of the Invest¬ dition
ment ' Bankers Association were courses of study, the IBA, in its mittees. These are;
careful to indicate in the minutes early years,
spent considerable
California Group
of. their first meeting that they effort in reviewing books and then
Central States Group
had great respect for the ABA and passing the evaluations on to its
Eastern Pennsylvania Group
that the new organization intended members. The Association's edu¬
Michigan Group
to supplement the activities of the cation program aimed at its own
Minnesota Group
ABA rather than duplicate them. members has been flexible down
Mississippi Valley Group
Such a
through the^yeaf^ beittg changed

The point to be observed about
this address is that very early in
its life, the Investment Bankers

feeling of mutual respect is
because early fi¬

understandable

The intent

gage.8

to

meet

was

conditions

new

-

treated

by technological advances',*- a1 new
both associations. Even today* ap¬ money market structure, the de¬
proximately 12% of the members velopment of the area of manage¬
of the IBA are commercial banks ment, and increasing
Federal
that are permitted to underwrite regulation. Currently the IBA is
and deal in municipal and to deal cooperating with a number of uni¬
tended

to

be

active

in

versities

in governmental securities.6

the

in

formation

in

Disseminating and Advancing
One of the functions of the In¬

Bankers

dissemination

the

vancement
nomic

of

with

cooperation

Association
and

the

financial

and

is

of

offered

universities

and in the establishment of a

Knowledge

vestment

institutes

cor¬

ad¬

The Investment Bankers Asso¬
ciation

has

;

.

.

^

,

Northern fOhio Group
Ohio Valley Group
Pacific Northwest Group

Rocky Mountain Group
Southeastern Group
Southern Group
Southwestern Group
Texas

Group

Western
For

Pennsylvania Group
of

number

a

years,

IBA's research program was

ment banking field.

eco¬

knowledge.7 The IBA's edu¬

New* England; Group
New York Group
.•

respondence course in the invest¬

been

very
active in
participating in programs to in¬
general public on various
phases of the long-term capital

form the

aimed

the
con-

ducted mainly through committees
that reported at annual meetings.
These

themselves, if
be a valuable

reports in
assembled, would

treatise

on

the historical develop¬

feature

of

was

this

their in¬

financing
corporations and government
long

-

pate in them. While this increase
in

professional competence bene¬

fits the individual firm, also to be
observed is that the clients of the
firm

served

effectively.
Any increase in general efficiency
in
serving clients is to be en¬
couraged, as the national welfare
are

term

units.
In both 1910 and 1911, a group
of bankers proposed that a special
division be established within the

markets. Thus,

against exaggerated claims of flyby-night promoters. Many similar
activities can be found in the early

history

of
this

the

IBA.

years,
same
consciousness can

In recent
type of social

be

found, with

the added feature that much of the
current

information

also

more

because better finan¬

directing capital into activities
that increase the gross national
product.
If
this
happens,
the
standard of living of the country
increases. In a similar manner,
educational programs aimed at the

tional studies in the capital mar¬

kets. One of

the, products of this

research program is the IBA Sta¬
tistical
Bulletin.
Another
point

worthy
of

the

of mention is

investment

nanced

study

banking firms, fi¬

by the IBA,

being

con¬

ducted by the University of Penn¬

sylvania.

study

This

will

cost

capital formation, a high standard $150,000 which is being raised jby
of living, and political freedom.
assessing the member firms over
,

cial decisions increase the chances
of

contains

material to educate the public on
the relationship between saving,

One of the
the

a

most

interesting of

plans of the IBA for
informing the public was the socalled Rochester Plan, conducted
in

early

1928.9

In

cooperation with the

three-year period.

Actually, many of the general
programs

impact
has

ter

much

Chamber

of

Commerce

and

,

on

of the IBA have had an
research. Thus, its par¬

ticipation in the Forum probably

Protective Bureau of the Roches¬

general public also have a salu- the United States Chamber of
the
Investment
changes in its membership. Be- American Bankers Association to tory effect on the economic sys¬ Commerce,
tem as a whole. A public that is
Bankers
cause of its separate entity feature
Association launched
a
give recognition to the investment
informed on the general nature
and its continuous succession feaplan to inform the general public
banking function.* These resoluof the long-term capital markets of
the merits and risks of stock
tures, the IBA has been able to tions were defeated. After being
is in a position to invest more
provide concerted and continuous rejected in their bid for recogniownership. At a meeting attended
soundly, thus lessening the wast¬ by 400
* tion" in the ABA, a group
leadership since 1912.
businessmen, representa¬
of
■
bankers decided to form a sepa- age of capital resources. Similarly, tives of the IBA explained the
the recent efforts of the Invest¬ nature of the
Although the IBA is organized rate
organization. A letter went
program. A number
for the mutual benefit of its *nemou^ caujng for the formation of a ment Bankers Association to stim¬ of informative articles were passed
bers, in advancing their welfare high - grade organization which ulate research in the solution of out to those in attendance. Also,
it also promotes the public in- would have for its
purpose the
5
"The Investment
Bankers Associa¬
Association

of Wall Street.
inauguration of this

workings

Since

securities, government and munic¬

services
is advanced
The

bankers.

financiers

in

of

provide
of

group

distinguishing
terest

changes in memberships do not per se affect the continuity or goals of the organization.

for

group of

that

means

society

ness

Closely

characteristic

up

more

^nscends the interests of any one
+aff0r^the
members that constitute it. Thus,
entity

the

of

ficials for the elimination of all

knowledge may be classified into

natural, as commercial bankto about 1912 was of far
importance in the economic
system than underwriting,

A trade

the

an

(5) Cooperate with the public
and state and Federal of¬

two kinds; those programs

was

is

and for members of the in¬

areas

outline courses of

mercial and investment banking,
Since its inception in 1875, the Thus, programs for members of the
ABA had stressed meeting the industry are intended to raise the
needs of commercial bankers. This level of skill of those who partici¬

Association, as a trade association, is that its members not
only transact business with the
public, but often with each other,
ers

IBA

Securities Business

American

efforts to inform college professors

ment
of
the
long-term capital
in 1918, the IBA markets since 1912. In addition to
ties' sometimes through affiliates, at members of the industry and prepared a brochure to assist the
comprehensive annual reports
For many years, the American those programs aimed at the. gen¬ newspapers in passing upon finan¬ of its
committees, which are still
Bankers Association (ABA); eral public. Each kind makes its cial
copy.
The purpose of the provided, the IBA now has a Di¬
housed those active in both com¬
contribution to the public welfare. brochure was to protect the public rector of Research to conduct addi¬

Jf™

services in expanding that indus-

the

the

and

cational activities in disseminating

® ®

mutual-aid

of

issues

regard¬

spondence courses in appropriate

iBA-sponsored

ofS the in6
f?L?Ln twZ
5,™ ^nninfi'on Sp

fective than the

Secretary's

press

clGiriarccitGd. from the cornmcrcial

Gf—

more

19

;

JirniT
ni^ariv
® nf-JLi! +hfpnmmprniii

interest

an

the

houses that deal in them;

iJimrS"

formed when business competitors

defaulted

ing

nanciers

Bankers Association

V"

Bankers Association?
The
•

of the Investment

The Founding

Furnish

(4)

office with information

perform a socially useful
function survive; those that do not,
The

—

,

tivities on the American way of
life. As will be indicated later,

that

programs

participation in the

<

by the
impact of
accomplishments on the general welfare. Trade associations
businessmen

education

fostered

seminating and advancing knowl-?
edge; fostering ethical standards;
anniversary provides an oppor- and advising on legislative mattune time to pause and evaluate, ters. Although these and similar
from a social viewpoint, the acactivities are rendered primarily
tivities of this organization. The for the benefit of the membership
general public judges the accom- of the association, more important
plishments of an association of is the salutary effect of these acits

Since its inception, the Invest¬
Bankers
Association
has

ment

(1) Give careful attention to both for its members and for the
1th'e ' ethics 'of' bond " trading', by
general public. Thus, as early as
out members;
' 1
the 1916 annual convention, the
(2) Pay careful attention to education committee recom¬
proposed legislation and lend mended that a syllabus be pre¬
aid to the passage of various pared on the field of investment
measures that will standardize banking and that several univer¬
the issuance of municipal bonds; sities be invited to give corre¬

ers Association sponsors a number
of programs, including these: dis¬

Bankers Associa(IBA) has been
playing a prominent role in our
society since 1912. This, its 50th

The Investment
tion

later, he mapped out
following suggested program
of action for the IBA:5
the

IBA's

the

the

three months

Professors Bradley
and Mock recount the formation and developments of the Associa¬
tion from the time a group of bankers were rebuffed from forming
a special division within the American Bankers Association cater¬
ing to the special needs of investment banking in corporate and >;
government long term financing. The writers assess the Association's
principal accomplishments which mirror so much of the Country's
growth, and hand down a verdict of praise for the beneficial impact
rendered to society as a whole® through the activities performed.
Among the functions praised are: dissemination and advancement of
t financial and economic knowledge to the public and the trade;
improved ethical standards, SEC and Blue Sky laws; opinions
rendered on state and federal
legislation; and comprehensive
research and committee study reports at annual IBA proceedings.
recently observed its 50th anniversary.

The IBA

is

Joint Committee on Education for

stimulated

facilitated

and

creative study by the par¬

ticipating teachers. The important
matter

the

is that research

facilitates

functioning

of
both
the
primary and secondary securities
markets. One of the prerequisites
of an effective capitalistic system
is

accurate

information

among

buyers, sellers, and business enti¬
ties.
is

The

more

available,

information

the

more

that

likely

is

capital to be directed into its most

•■s

terest.3

The

Investment

Bank-

betterment
——

3

.

,

....

.

...

.

,

1 Directory of National Associations of
Businessmen, U. S. Department of Commerce,
0

Z

1961,

.

,

Jay

Trade

p.

j.

1.

.

Judkins,

_

,

Services

Associations

in

graphed, August 1954),




of

19S3
p.

1.

American
(Mimeo-

,*

of

the

investment

'

See George
ueorge

P. Lamb and Sumner S.
°
r. urao ana sumner a.
Kittelle,
Trade
Association
Law
and
Practice
(Boston:
Little,
Brown ' and
Company, 1956), Chapter 2, "Antitrust
"

Philosophy and Trade Associations."
4 "Investment

Bankers
281-291.

Bankers

Organize," The
Magazine, September, 1912, pp.

tion,"
The
Commercial
and
Financial
Chronicle, November 23, 1912, p. 1,365.
6 Investment Bankers Association of
America (Pamphlet) Washington, D. C.:
Investment
Bankers Association,
1958),
p. 3.
; ■.
/■
7 For a comprehensive survey of the
activities of the IBA in educational activ¬

ities,

see

cember,

IBA

1960.

Educational

Bulletin.
-

;

~

De¬

8

Proceedings
of the Sixth
Annual
of
the Investment Bankers

Convention

Association
D. -C.:

1917),
*

9

America

Investment
p.

profitable

use.

■

of

(Washington,
Bankers Association,

154.

"Seventeenth

Fostering Ethical Standards
Like

Annual

Convention

of

Investment Bankers Association of Amer¬

ica,"
The
Commercial
and
Chronicle, November 3, 1928,

Financial
p. 2,478.

many

ciations,

the

siderable
the

other
IBA

trade

devoted

asso¬
con¬

thought and energy to
promotion of ethical stand-

Volume 197
•••

■

ards.10

Just

Number

6234

.

The Commercial and Financial Chronicle

.

.

iKJ

>

what

is

meant

In

by

etJiicai'stahdarc^s^ Firsts those en*?;

its

i*

•>;

/./

.

.v.V/; v-r,:v\V-'.-.. "A-,*.-,.-

t

" r*

v. v.-U:.

v.,..;

...

like manner, very early in reach

a

(469)

w!

V'.!

informed decision.

an

The

the IBA subscribed to point that associations of business*
gaged in-; the investment; banking many of the principles and even men and other
groups make an
field should -be of such high in¬ established some of the procedures
indirect contribution to the Amer¬
tegrity that the client has com¬ now used by the, National As-:
ican heritage is a point often over¬
Securities
Dealers
plete confidence in them. Just as sociation ?, of
looked in our society where many
a
patient entrusts his life to a (NASD). This refers,, of course,
liberties are taken for granted.
codes
of
conduct
between:
physician, so must a person in to
finance
will

be

that

honest

so

entrust

others

him.

rule

A

thumb

of

useful

Blue

in

providing a yardstick of behavior
is. that
an
investment
banker
should

Cedes of Conduct

vestment

prefer not to take to court. The

ing

the

use

the

with

same

of

that he would in prudently

invest¬

his

own.

Second,

an

that

principle

port of its activities since
The

should

truth

report went

that from

permeate all business transactions.

1912

to

Practice

ness

1912.11

tween the investment banker and

the Busi¬

1922

Committee

client.

in both

years

to

the

disputants
Secretary's office.

LawsTS

commer¬

this

of

name

terest

The

public's

particular

Business

the

high

codes

have

moral values

in

of

conduct
in

addition these

not

Unethical

only

The

themselves

likely to result in

country

fg
condition

the

being
that

increase

resources

acts

in

as

the

a

brake

effect

amounts
In

of the

national

Sky

the

com¬

for

Immediately;

in

in

new

or¬

after

these

was

was also
great in¬

and

over

Under

or

Commis¬

of

sioners of Uniform State Laws and

$1,000.

the American Bar Association.

process, either
the complainant

The IBA is

now

on

has

Since its very first meeting, the
IBA showed social responsibility

by virtue of its

final. Failure to abide by the de¬

If

ductivity.

establishment of
ethics.11

of

a

the

workable'Code

the appeal

Giving Opinions
One

the general wel¬

of

the

trade association is the

fare and influence of investment

a

banks

ing Of its opinion

bankers,
likewise
■banking, institutions 'Operating?
bond departments and to secure
uniformity of action, both in
legislation and in methods of
handling
securities,
together
or

the

on

Although

their

Bankers

the

Association

interests

of

render¬

benefits
from personal ac¬
quaintance, and for the discus¬
sion of subjects of importance
to the banking and commercial
interests of the country, which
affect the investing public. and
'for protection against loss by
crime, or through wilful
and
irresponsible dealers in invest¬

is advanced

on

capable
opinions is in

Investment

Bankers

ciation has cooperated

Calif.—Brager

Company, 291 South LaCien-

and

changes.

He

previously with

was

Hayden, Miller & Co.
COLORADO

BEVERLY HILLS,

legislative

and

Asso¬

with regu¬
bodies at

The advice of the IBA is

given

on

such matters as the use of the red

herring prospectus and the sepa¬

Awo^ scopes.? First,

ration of broker-dealer functions.

an organized
As in other areas, Federal officials
of expressing its
are finding the trade association to
itself a pillar of

democracy. In dictatorship coun¬ be one of the best and quickest
tries, such as in Germany in the sources of reliable information.
Hitler days, associations were dis¬ The growing importance of com¬

solved,

including

Robertson & Pancoast, Jones

war,

Building, under the management
of Joe P.

Nelson, Jr; Mr. Nelson

formerly

was

principal of King,

a

&

Co.,

National

Barnett

Building.

Paul

Bank

Nielsen is

T.

in

charge.

SPRINGS,

Colo.—

Robert A. Lincoln has become

labor

Co., 12 East Boulder.

*

He;

and in the

past

officer of

was an

Weir, Lincoln & Co.
Ohio—Elmer

COLUMBUS,
Gardner

Jr.

is

with

McDonald

West

Broad

&

,

.

Company,

Street.

He

merly with the Ohio Company.
NEW

ORLEANS, La.—Albert L.

Meric, Jr. has joined Francis J. duPont & Co. as manager of the
New Orleans office at 811 Gravier

Tenn.

Abbott,

—

Proctor & Paine, 129 East New

St.,

Under Mr. Meric's

further

expansion

management,

Francis

of

bonds
any

notes

and

which

or

is

priority of the issue involved.12

Numerous',

other

ments

be

can

similar

duPont & Co.'s New Orleans quar¬

Waller, Jr.

ters is

SAN

JOSE, Calif. —Nikko Kasai

Securities Company, 235 E. Jack¬
Street.

son

Kojiro

Watanabe

is

local manager.

SAN

Nuveen

&

Street.

contemplated.
Meric

Mr.

has

in

the in¬

and

around

been

vestment business in

New Orleans for the past 10 years.

Most recently, from 1959 to 1962,

FRANCISCO, Calif. —John
Co.,

Montgomery

405

Robert

Hammond

R.

is

he

the

was

representative

of

found

in

the

that

one

-

associations
that

of

the

have

had

transcends

the

of

for the Middle Southwest.

NEW YORK

Fischer, has been made manager
the

60

Broad

BOSTON, Mass.—George H. Pol-

Baehe

&

Co.,

of

ley

has

Ereen

with

connected

become

Creamer

Congress Street.

He

formerly

was

with Van Alstyne, Noel & Co. and

prior

thereto

Schirmer,

with

Atherton & Co.

BOSTON,
sor

& Co.

Win-

G.

Mass.—Dana

with

Incorporated, 211 Con¬

Street.

gress

He

formerly

was

Webber,

Paine,

Jackson

&

Curtis.

Mr.

Fischer,

at

one

who^+is

time had

*

credited

drain¬

over

1,500 persons

widely
pub¬

written upHn a number of
lications

for

his

Prior

niques.

to

Fischer

Mr.

tech¬

teaching

Bache,

joining

served

as

general

partner with John H. Kaplan &

Ohio—Richard

D.

NEW

YORK

Westheimer

1700

with

pre¬

61

acre

Ohio

and

Company,

Building.

It

reported

incorrectly

in

Long-

tered

in

the

firm's

is

main office in Cincinnati.

CLEVELAND,

Kaufmann,

York Stock

Mr.

located

Richard

associated

Alsberg

&

sion does

not contain

compendium

the

the

should be

of

the

a

Exchange,

as a

author

of

"How

regis¬

Warrants

and

to

Increase

Profits

Investment

Convertibles"

This

announcement is

any

neither

an

offer to sell

nor a

solicitation of

an

offer to buy

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

New Issue

January 25, 1963.

400,000 Shares

AMERICANA EAST, INC.
COMMON STOCK

(Par Value $.50)

complete

activities

of

Investment Bankers Associa¬

PRICE

tion and the impact of such activi¬

$2.50 PER SHARE

along

Copies of the Prospectus may be obtained from

the undersigned.

.

:fact^thatvi;here "are ^so^many well irate? appoint/that is„often. over*
organized groups with different looked,/that, is, the* beneficial:
^

•

Inc.,

1953), Chapter 6, "Ethics, of /Opinionsgives- legislators
theyari*: ; impact of the Investment Bankers
Banking," by Mn W Power ?
W. Straus, "The Ethics of
ety of viewpoints necessary to Association on society as a whole.
Investment Banking," The Bankers Mag¬
16 "The Investment Bankers
14
"Twentieth Annual Convention In¬
Associa¬
azine, October, 1913, pp. 411-414.
12
See "Prospects, of the Investment
vestment
Bankers < Association,"Commercial
and
Financial
The tion,",' The
Bankers Association," Magazine•. of Wall
Commercial
and
Financial
Chronicle, November. 23, 1912, p. 1,356.
Chronicle,
17 A« brief his.tory.of the.IBAV'ef forts
^Street,- September;- 1912, p. 250. / .t*r., V:.C/ November 31, 1931, pages 3,409-3,410.
Investment
11 See

NUSOUTH GROWTH STOCK

S.

I ■ 13 ''Seventeenth Annual Convention of
Investment Bankers Association of Amer¬

ica,"
The
Commercial
and
Chronicle, November 3, 1928,




Financial
p.

2,481.

interesting development of »in- the -Blue, -Sky Law area may be seen
Robert A. Nisbet,
The in A Primer on State Securities Regula¬
Quest for Community (New Ycrk: Oxford tion (Booklet) (Washington, D. G.i In¬

■..•i

15

this

For

an

theme

University

see

Press,

1953).

'

Co.,

representative. Mr. Whiting

Your

Ohio—William A.

—

become

Broadway, members of the New

that

"Chronicle"
was

was

CITY

has

trade and

,

of

an¬

ing courses more than 15 years ago,

Whiting

viously

office

been

with pioneering investment

Longacre is now associated with

the

has

O.

Co.

CLEVELAND,

East

Street

it

in his class, and has been

has joined the staff of McDon¬

nell

CITY —Leonard

nounced.

Stanley Corp., 50

each

members

with several other ties on the public interest. Such
professional groupsj is a comprehensive and analytical
in an excellent position to give
study is yet to be made. The three
advice on legislation involving the
areas selected, however, do illuslong4erm> capitaL markets, AThe

IBA,

pro¬

,

,10 For a discussion of some of the
practical problems of ethical .dealing in
investing banking see J. Witney Bunting
(Ed.) Ethics for Modern Business Prac-\
'."tree (Englewood; Cliffs, N. J.: Prentice*

yHall,

complex

a

brains and talents

a

fund? organization

major; mutual

PERSONNEL

association. The preceding discus¬

state* used iir solving this problem; The

-

ceedings of the early annual con¬
ventions.

such

best

effect

welfare

trial-aid bonds should be taxable

gestions; as to the character; lien;

of

an

of

or sug¬

the

ties

dustry. Thus, the issue of whether
carries the interest on municipal indus¬

misleading inferences

I.

under the management of John E.

bers, at the samO timO -the Activi¬

already accepted by the IBA. lic); of the legislative activities of
Thus, in 1928, the IBA subscribed the IBA is that certain. legislation
to the principle that it was "de¬ is often so
complex as to require
terminedly opposed to the use of the advice of leaders of an in¬

were

issue

50

for¬

was

.

an

H.

associated

now

with
and

Kish, Jr. is now connected with "Profitable Trading with Puts and
ernment is Indicated ; by the; mov^ Curtiss, House & Co., Union Com¬ Calls."
ing in 1955 of the home office

medical societies^ and associations
securities, and to surround of businessmen; Dictators seek an
the
offerings of its members atomized society, i.e., one which from Chicago to Washington.
with greater safeguards where¬ is so divided that organized op¬
Conclusions
by they ivill enjoy the broadest position to the state is -almost
Associations of businessmen have
market possible, both at home impossible;^ Associations of busi¬
and abroad.
nessmen,
along with other or¬ had a major influence on our
American heritage. These associaThe committee reports at suc¬ ganized groups in the economy,
make a contribution to the demo¬ : tions have raised thestandard of
ceeding annual conventions in¬
cratic process because they are in living of the public,, and they have
dicate
a
deep concern
and
a
position to make constructive played an indirect role in preserv¬
dedication
to
improving ethical
of
both
actual
and ing our system of liberties.
standards. Indeed, many of the criticisms
Although formed primarily to ad¬
provisions
finally
incorporated pending legislation.
vance the interests of their mem¬
into the Securities Act of 1933
A second benefit (to the pub¬

form of title for

for¬

was

merly with Copley And Company

municating with the Federal gov¬

unions,

ment

any

as¬

sociated with Amos C. Sudler &

Street, it is announced.

KINGSPORT,

represents both the national and state levels.

its

the fact that there is
group

most

The

legislation,

membership
when giving its views on legisla¬
to tive matters, the public welfare

practical

capital among the

productive use, ttyig
raising the national income.

of

Investment latory

the

to

of^apifunds^ into

at both the state and the national

level.

derived

be

activities

barriers

states. In turn, a free flovr
tal tends to channel

Legislation

on

major

artificial

reduce

the free flow of

cision could result in expulsion.

the organization was as follows:12

with

laws

The first preamble of

To promote

Gale P. Wait is resident manager.

recommending

might appeal from the decision of the adoption of a Modified Uni¬
the Business Conduct Committee. form State Securities Act, which it
•

pro¬

over

Building.

Hay ward

New York and Midwest Stock Ex-

resident manager.

prepared. Although uniform
was granted, there
was
provision for retrying the and simplified Blue Sky Laws
case * by - the i National
Executive benefit investment bankers, even
more important is that such state
Committee
whose
opinion
was

concern

Paine,

&

his

state

Conference

the

as

arbitrating

arbitration

the defendant

a;

convention

reports of the IBA
that specific procedures rectly with state officials, as well

in

were

is

misallccated*

Committees,

the national

early

indicate

high codes
conduct

to

mittee.

tend to prevent wasted economic
resources.

Conduct

rather than

problems in ethics is that

above

but

grievances to the regional Group

culture.

with

concern

uni¬

laws; many
states were on the verge of pass¬
ing such laws.
(Kansas passed
the first comprehensive Blue Sky
Law in 1911.) Almost continuously
since that time, the IBA has of¬
fered constructive suggestions on
simplifying these laws without
weakening the protection of in¬
vestors.17
It has cooperated
di¬

was

pressions of man's quest for hon¬

the

in which there

one

the

committee

to

period in which he spoke

Committee. Then, in 1928, a pro¬
cedure was established to submit

a

for

Blue

best views of the Association. The

changed? to sthe Business Conduct

banking and in investment
banking. Codes of conduct are ex¬

under

tor

Nelson & Calvert, Inc., which has
address, a resolution was passed
been absorbed by Dewar, Robert¬
requesting that the committee on
son & Pancoast.
legislation draft a uniform Blue
Sky Law that would represent the JACKSONVILLE, Fla—Goodbody

the

through
In
1925,

cial

esty

In¬

ganization give its attention to
sponsoring
uniform
Blue
Sky

func¬

to the national executive officers
and its decisions were transmitted

Actually,
the
importance
of
ethical standards has been stressed
many

campaign

1912, proposed that the

reporting to clients, to tioned as a quasi-court to adju¬
employees, to stockholders, and to dicate differences
arising in the
the general public is absolutely
ordinary course of business be¬
essential. Another aspect of ethics tween members. In its
early years,
is the confidential relationship be¬ this committee was known only

for

con¬

Building, members of the

merce

Association

simplified

address

an

to point out

on

Truthful

his

its

and

NEW BRANCHES

ASHEVILLE, N. C.—Abbott, Proc¬

.

ment banker must be dedicated to

the

been

Committees to form

supplemental to similar notices appearing elsewhere in this issue

are

disputes. In 1931, the Laws. At the very first meeting of ega Boulevard, Lpui? Simonson is
1
report of the Business Conduct the IBA, attention was given to resident manager.
Committee gave a historical re¬ : this matter. Warren S. Hay den, in CORPUS
CHRISTI, Texas — De-

dealing

with

Bankers:

These items

settle1 these

others

property

has

established the equivalent of

IBA

in deal¬

care

Sky Laws

ing fraternity. As in any area of
Perhaps one of the most
economic
activity, financial dis¬
structive
activities
of
the
putes
arise
which
the
parties

property and
decisions about their property to

Current News in the Field

life,

members of the investment bank¬

their

13

vestment

Bankers

Association,

1960).

> i

SALES CORPORATION
302
-

*

Martin

Building

Columbus, Georgia

■'

:

14

The Commercial and Financial Chronicle

(470)

#

'<■ -py':-

#

KPQtTHr*tlfYH

^ OTI

XVv/Obi. IV,/Ulv/llO
-|

rsQTl

V-/11

IriTI

H

O*

11T* I

thp

H

U<XIllVlIl^ XX L4.J- U vllV-'.
;

.

...

tions,

OYY1

u

i

Treasury Department, Washington^1 D.C.
'
Federally chartered

;

4nr

A

....

.

banks' Comptroller

tha

Q:>cino-

tions

and

ra.

easheg the re-

if

to

bring about greater banking powers and facilities.

denies:

future
"

Mr. Saxon
if prop-

necessity

ment of

insure

to

with in the banking

to meet current

are

-

v

laws

The

-

with

the

impaired

allow

banks to

operate more efficiently and to

•

Jn

could

economy

if

hampered

or

be

of capital in

by regional regulatory authorities.

^

that'depositor

respeet;;to..the,®.a

brancb^;-f./.r/^ies.viiWhile---mostfbankersv-a'gree

V

f

February

the National

time

the
for

the

Win*

char-

conduct

-

*

m

—Fx-

fnr

1

to
to

in

theThe

authoritv

vision of additional, banking

protection

plant

•

•

1

/

Powers

0ver

our

of

catevthe

issued

In

banks.

the

veiling

years,

Hen. James J. Saxon
:

National

npte-issuing

power,

bank

shitted

the

to

lost

and

r e

phase of

policies,

operating

their

V°

^fJ
not

management

is

Unreasonable

limita-

.

:

access

-

>

i

•

;expansion of existing institutions

and

of

resources

proven

which now constrict their expan-

institu-'

^ ,directly restricted<
Complete tions
regard such a :reiiance uoon comoetitive forces
?
\ •
to: 'their sur^
« Many of the!; critics of more
lu
^Ui;: to determine bank entry and bank
^ ^
at least to their comfort, exoansion however would ereatlv hberal branching powers equate

procedures

practices

11 o n

a

of

protection

de-

or

favorabie

financial

bank

criticaIly reappraised in the

Ad-

resolvingg these

In :

visory Committee Report. A wide which transcend the
of

range

the;reg^ja^.e
or

entry

recommendations

was

issues,

branching powers will not,

; ened

.

well

bank

as

in-

private

^ch^ins

^

proposed with respect to the lend-

j

coursp

evolution of the National

ioyfth

of

?tition, but the number of points-;
at which effective rivalry actually f

-

takes place; A series of unit banks ;
eni°ying > monopoiy^=.■ positions in
tK^,r individual communities, for,
£xa™pte ;<:ou4 ^tually produce-.;

new

.n

.

less'effectived competition? than;

«Stinu InsKtutions

Lift'insufficient

tri

5-

?.

has'wouId Prevail if bank expansion .
nnhlic took Place • through branching by,
p
a
number of institutions, ,; each

meet
,

-

'Tn needsj:-^?*e branchln8 la^s ;Pf.bringing; to

the individual cornmunity the full force of its comof
nuhlic5'ernal Srowth throug|h th®/"^^"ipetitive' efficiency
This crisis orientation has survived the
relationship of National Banks
7 f
1
new branches. ;«Nonbank
.
•
;
y ■
•
■
.
to the present day
--t-U-'v
L the Federal Reserve Bvctem pollcy- Were ll "ot-for the fact ■ financial institutions not subject In determining the proper role
The basic need for hank r^yiila ; and
nenalties^ and that " is considered necessary to ;to such limitations have in some of branching as a means of proThe
need for bank regula- and
-the
heavy
penalties
and
preserve the solvency and liquidity degree filled this gap
But these viding the!banking facilities estations

operations.

banking

over

ha^e

•

NaUonai
f>

J

S^eT wat

Banking

founded.

Proce-4P^~^.
appraised'^-^

Report also

S^undid fratty.#tatefK^?ve h®"??erfd

1

We

1

have

now

a

clearer

"Zll:

-

operations

r\

-C

AT rt+irvvrol

T)

*i_

j

h
•

_

Banks.

ac

1

Sj s

g

,

these v,concepts

C °

that

.Report

y

itlGll

,

D6" ,pl3C6(l.

was;.com-

the

antitrust'

J

,

'T'fcf

&£to

have also

to charter new
iv'in
4 Vi

Cf

TTQcf

Cfc

trpQ^

toi4;wttal for our economic growth,

pynfi

«rp

S

laws

regulate;™^®

maintain competition and

TtTu

1J

COUIlt of

.

luG

6C0H01T11GS

01

lsr^Gr*-

-tale operations. Modern technol-i

'

mew

'

ogy has invaded the field of bank.

P,et?d> these ' recommendations competitive practices in. serving ienternrise desirous of enterine the: 'nS> as It has other sectors of the
- have, been subjected to intensive the public's needsfor banking
seryr" f, ,d
, bankine
Well caDitalized
economy, and provided opportunithe examination
,

PP

.

cation; of

since

^

-

.

on

is

-couMCnXs

^ entry

of

tapSSTot fte'foreign RG11311C6 COUlfl,
^^d
of National

Rons

conception, however, of the essenwi

■

^he^ ^ieavv

«*T

J

The

dures.

v

determines the degree of compe-:

of
baking
®
df
it"hhs h^Lml fn?reS-,^idthat ■&-expansion

S^tlans

terests of individual banks. These

number of banks which

bank;1}0*

expansion,

.3

f

are to be found, fundamentally/in3
of ing and investment powers of the
public purposes which
Banking National Banks, their trust powers,
lie the regulation of bank gentry
System
changes of policy have their
borrowing powers, the alter- and the control of bank expansion. '•
taken place chiefly in response to
natives open to them to provide r J;
whilp +hpc(i Hmitntinnc and rnn
banking crises which generated needed
capital, and the various
demands for more rigorous limidetails of their corporate

Throughout the

this form of bank expansion with
diminished . competition.: Broad-

safeguards

the rate and form of

as

■-1-./•■.:-

for : considerations

s€areh

must

(

for

and face of the hope that this need
was

.

non.-! ^"utifc^coiitrol It is an indispen- however' have this effect if they ?
institutions, have' sable
£art of such supervision to are^properly administered. It. is)

opportunities

Comptroller's threat would not touch them.: *'%•*}

the

of

vival,

the not always been persuasive in

primary office and of National Banks
1

g u

5positorsr>yrith,all that,fl?is implies
in
the,, way of con ipu^s supervision.,

ing

fha1?;Evidence that^^these^'limUatibns^Q^^^^^^^-^.^^^

^

significant

Every

^

Banks

atf.ent.on

m

tilT

™

;

.recommendations.

-

inter-

the

chart?rs t0 ,m«et4thefe g™w:

DCW

^

«

mdi-,^ hamperec3^he needed growth?L
whicbu; we have of bankirlg facilities, add provided

steps

:^alsen to carry Put the Committee s

by State-chartered

3
difference

..liberalization^of.

-

limitations

.

Advisory Committee.
^
describe it only briefly, and

satisfactory
notes

^ftecfessarv'to aban-^ f1^
vf
these.^oulf. als.Q be necessary to aban- for new banking facilities to find

new

Piore

examined in the recent Report ot

un-

system

f

tbasis; for ailowing newly- tions over branching imprison es:and the initiative to.exrA^u^^;institntions frpe
to
oDoortunities
favor +2
5' ?
Ju
^
v^i
tabllshed hanks, and deprive the
neW.,. PPPPFTO^es of banking, while the public of the' 'skills, experience,-

Dlo

-

$].

'

0f this

cause

?0f e
future)

operations in the spatial sense.

Th

sup-

the

Branches

'

B^
present llmitayons ,-over, i0n_.many others
WkSmtM examinedp?^!5i recent Reoort of Policy as a threat
M ba»^
in the
poilcy as a, 4uedL

me-

to

+

facil-3

*• & %,• ^.Vv?v:~ --7^ -"

dlaicuH to understand While f
to regulate competitive prac- competent
dimcuit t0 V"a€rf.a?<r JWj..tices./There could be no justifi- abundant.

n0,

of

the area of their
tne area 01 incir

extend
extend

The

,

dium

*

./v..,

.,

significant factor f

a

in determining the need for pro-

the

on

.

v.

powers-: ar(- needed, -they^do not d?n d"?ct coni™1 ?f ban* expan: outteUvin applications for new.
in, the view policy toward bank expan-*sl0n
r0u g
.ra ^ mg a. charters, it is obvious that reliance v,.
One re- sion with the same- degree of *n€r6er>' an
° re y upon an i should not be placed primarily, oii ^

operations.
the

to

1Banking

effective

payments

their

of

relates

banks
Danxs

prime

"J

role

toS exercise

other

Na

Banks,

one

essential

its

allowed

are

banking.

of

kJ.-ISsWA K/:;/

ciency

At lates to the powers which banks unanimity.

Congress, provided

field

the

to

sources

and -broaden

powers

discretion in the exercise of

of growth of our economy,

formation

the

Ranks

tional

an
an

100th

Banking System.

the

nf

tinnaf

the

mark

Anniversary of

^V...

I*

['

will

;;£ that added:

' ;

calls

our economy

greater commitment of re-

a

While this test is not sufficient to V

the fi-

banking,

_

facili^r%^.

ing and holding companies settled in terms of regional boundaries

*V•

According to

funds.

.tions should be entirely removed does represent

does

understanding

same

prevail

not

'

use

.^hie^d Without them ities
Ranking .^..principles, Avhiclftshquld^ govern^R^he'-publB 30uld ;gain the-/
compete more
the expansion of banking

effectively. The Comptroller would like to see the problem of

:

new

banking nancial mechanism were deficient, determine the proper degree of
:
r ; Some argue that entry restrie- entry in a regulated industry, it

for
~

needs
-

Progress

system.

-banking system jeopardizes;; dualbanking system. K; State

vv»

,

critical

banks in the industrial and commercial for

Hank Expansion •
Ban*. Exp ns n,-V

.•

recommended steps to strengthen our

(2)

and

they

services.

(t) liberal branching powers mean less competition

erly administered:

commercial

,

striction uncommercial banking expansion and o Federal leadership

_

of

is

encountered

require greater latitude in opera-', sectors of
.

,

_

„

have

we

the view that

r

By Hon. James J. Saxon,* Comptroller of the Currency,

•

and

There is little disagreement

h

Thursdayr January 31, 1963

little controversy in working out that new opportunities do not fail this fundamental economic test, it
measures to meet- these needs, of development because of inertia can thus be said that the rational

T1

1

..

*be Powers' regulations and pro- of the vital role that banks play is an industry that offers opporcedures affecting banking opera- in the growth of our economy, it tunities for the profitable commit-

1

KranPh

X-/J. C4>lXv/XA

TT

•

.

.

to

i within'

°

our'

Office,:

and a number of steps have been

ices

facilities..

and

restrictions

Thegfeet; thatt^^^^^^-^S ties

fo/more^fficientgoperatioh.

needed in £0rmed-in manv Parts of the coun- These technologies can, be effipolicies order to maintain bank solvency
^rv to se^
bank charters
ciently-. employed, however, .only
As our economy has grown, it and
procedures to bring them into and liquidity will not, -however,
rhipfl
thp nPW annliratinns havp
through > larger - scale
ventures.
has become increasingly evident effect.i >^^/viustifv
such
restrictions bevond
e'
rfx
Comnarable
onnortunities"
aUoy

field

nf hankbio.

g. V

.

taken" to promulgate

"

entry

are

new

i^w

-■

that
xnat

the
me

tem

occupies

roinmerrial
commeiciai

It is

progress.
cial

hankin*

upon

cv«?

oanxing

central role

a

the

its

commer-

banking system that

we

sig-

miicantly rely for the marshaling
and

disposition of
and the

sources,

our

capital

provision

payments mechanism.. A
tha

in

re-

of

our

J financial the rate of
mechanism.will
affect
our

gtock

and

normal

have

of

is-

of preferred

use

capitai

been

debentures

as

the requirements for this

Indeed, if the banking system

°

-

economic

hionbank
have
peie

financial
into

come

the

appointment

tween

annual'

or

of

a'

While, almost'

?,

',

gaps

left

!

and.

pros-

these

Commercial banks

are

now

at

the

26

aa-'So

opposition is centered

certain

More- niques;
final

stages of developing revised regulations and procedures relating

proper

clear

of

the

upon

particular

that

the

principal

concern

should be to insure the adequacy

from

The

present

by

the- fact

new

no-b'ranch
of

from

States."
interest

in

37

States

last year's

of

-

our

balance

in

banking

system

provision for

a

the

va-

riety of financial services to meet

of

the

National Bank charter appli-

cations.

required
include

must

were

list

The

structure

banking is indicated

.'that

represented

Colo-

and 4

breadth

the field of

Flor-

from

9

Illinois

all

—

of

from

of services which

range

banks are able to perform. The
task of public control is to allow
opportunities for these forces of
efficiency to be expressed, within
the limits which must be imP°sed
in order to Preserve ^balanced
banking structure. ,

nrohihit

Thirtv-five
were

Tex^

from

5

Wisconsin

tech-., |n

e m p l.o y e d.
Viewed in
perspective, however, it is

banking

creasing

re-

f

which

also

spe-

cialized personnel in the ever-infor

qR

ctates'

.^°.mPa aD ^ ?Ppportunities
exist for the utilization of

•

charters

Bank

applications

be. bank expansion has come fqnder
Com- criticism by' those. who.fear.

financial reports and proxy state-

we

the

•<'

annlientions

t

the

branch-

directors

meetings.-

,

d

of

•

m-^

hank

over

public

forces

;

of

needs.

To

efficiency

permit
to

the

be-ex-

These applications in 1962

pressed does not mean that contriple the average centration of control should be
techniques annual applications for the preunrestricted, nor that only the
however, offer sion of the entire body of inter-/should be
judged solely according ceding decade, and
approximately large should be allowed to sur®ervlJ?s
pretations and policies set forth to their suitability for this pur-;double the .highest year during vive.--.There is a wide spectrum

e

•

by

form'; of

every

14Q

National
•

,

which

..

.

fhe"

nf

raising capital;

t

and

limited number

ever,

institutions

being

^expansion

-

,

States

restriction*

severe

and

syst,em ha3 tagged behind the ments to their shareholders.
of our
advance,

pace

x

from the

COme

to foster economic growth in the

fullest degree, the concept of bank
permitting the use of au-1 solvency and liquidity must Jbe
thorized but unissued stock, pro- broadened to include safeguards
vision for employee stock option against inertia:
/ " V,
r' •'&
means

\su ot]en P°inted out. that the will be required to submit annual of the
o
our commercia
an

grow

oeyoi^.

purpose.

me1ncing Feb* X> National Banks verse^competitive effects, much

YW Vfit

[

regulations

an0wing the

deficiency jpians

critically

€C^ mKp g °W

New
sued

jusuiy^suen reisir:l.ctions

-

.

sys-

in

^

trust and investment powers of banking facilities.

deficiencies, of National

Banks; and the revi-

to

employ

The

need

were

nearly

particular

lha"

institution* flnThlvfa
nntpntiai

fnr

ari

f

+•

°J1.r1?lgest °,f P?inj?rnS is SU}*~ P°se-:
r
stantially completed. We are also
'i-> New Charters
,

f

xv,

3

•

u

-

that

;

Peri°d.

For

the

preceding of public requirements for bank-

decade, applications for

^

;

new

Na-

a^onS m tbe revision of the
jn
moSt
circumstances, ; some tional Bank charters were as low
,-nprlf,n8Tf f.f88 ° ,.nf^ requne- trust and commercial examination degree of permissible> entryjby as 39 in 1952, and ranged between
+i
f*.
f?ei? .la V1
® na~ f01*"18' a
e respective related newly-formed institutions is es- 71 and 75 in the years 1955, 1959,
^
.?.■ Jf fj
instructions to examiners. When sential' in order to provide con^ 1960 and 1961.
«rnx«ri

3 10n

«

.

ing

services,

-

and

a

diversified

size-structure

of

to meet these

•

requirements

assured

.

banks

basis.

is

needed
on

an

V.-

-

.

,

nppHIp ss

There

-

11umen ancye 8 ou_ d_ n°t be these new instructions
!
y cons
two

broad

which basic reforms
if

our

is

to

commercial

perform

are

areas

in

required

banking system

with




are com- stant

pleted, they will be made

.

are

fullest

effi-

avail-

ab*e to the National Banks.
A
the

broad

consensus

prevails

banking community

to

in

concern-

ing the need for modification

of

access

aticns

of

broaden

and

by succeeding gener-

fresh

the

initiative

talent,
sources

through

and
of

so

as

capital

Ih

instances,

many

authorized

capital

of

initial

Mergers and Holding Companies
Bank expansion may take place
not only through internal growth,

chartered banks has been substan-

which the.tially

'

newly--.

the
the

.

over-subscribed,..indicating but

also

through

the

merger

of

demands for banking services may

that

those

existing institutions, and the for-

be

who possess free capital, banking

mation of holding companies. Per-

developed and served.

Because

in

the

judgments

of

Volume

haps the most

Number 6234

197

...

The Commercial and Financial Chronicle

(471)

Steel

criticism

common

Production

Electric

of

banking structure by for¬

our

eign observers relates to the
phasis

new

The State of:

em¬

mainte-

v-J'-

uLuTcomo

a

waste

A

special

feature- of

the

tures

$780 billion at today's

more

billion

and

half of

amounts

of downtown office

wl h

w

St.

itgis

aboy

those

banking system is
„

thenecessary latitude

tor

enterprise' and

this

industry. Whlie banking dif-

Initiative

fers from other Industries with

in

of

wil

place
alike
w.

spirit

«

to

effectiveness the

ahead

ov1,

to

serve

accounted for about 11% of gross

„

,,

SJST*
.

The

^iPS -hipdified or repoyated'. r > a the Thirties-in governmeht ex-^
New construction spending has penditure for current purposes.

urgent resnonsi-

bilities which lie

-fe*-«—:f —
If
and maintenance
repair

.

particuter.

techniques

>

of

ditures

bank expansion most appropriate

^ft v^y;

J?.?i

is

L Poking5 to

added, the proportion

are

boosted

to

15%.

Direct

em-

•

Half of Sixties

;

menU

projections* for

^^ ploymeht ^:iri construction ^aver^ mainde^

r

the

-

against

growth

? mdividiml^tion; there twere'sorno^ two^ million ^activity ^ jOne

in

construction

ing Jan.

19.

this

'Siir htt^ioh shhiS^^
not

public's

needs

but

for

service lives, immobility the war begin to reach marriage-

(101.6 %)

on

banking

th«pCnSPPJwiiiPnnfhreSiit0- f!!
bv limitation^ mlattaB
mJans^

"world WarTI.

effective

ccns^ruc^on *n most of the,past:.construction.

haI£., ^e"tury'

less

to

less

available.

devote

our

It

energies

over/techniques,
7

struggle

.

our

best

e.

primary task is
of

means

of

meeting the needs

of, the future.

charges

financing
Federal Authority and the Dual

in

Banking System
It is necessary,

issue-of bank expansion and economic growth, to consider the im-

pact, on the traditional dual struc-

a

'•3

15 MilUon H(yusing

the past months; there have been
heightened fears-., that enlarged

branching \

powers, ; for

.

National

Banks would pose a.threat to that,
system.

It should be clearly

un-

derstood, however, that, such enlarged authority could be utilized
•

only,

to

allow. greater scope

for

the exercise cf private initiative.
This does not constitute

sion
a;

of" Federal

relaxation

tribute

other factors

Steps
more

the

only

but

power,

of

intru-

Statement

limitations

prevail

over

strengthen,

a

1960, 15 mil-

tern.

'

>

sys-

A leading .feature of ^ recent;
Homebuilding;has; been the up*;

ing machinery, and shipping con¬
tainers.

Shipments of all steel products

In

the

cose

private

of

construction,

residential

this

which

This

could

System,

]f-§tanddr4 iOtXComjtanjf ,(New

i

charter.

they

banks

-

Only

are

charters.

It

is

however,

within

the

only powered

power

of the State authorities to provide
scope

for

effective

the

most

operation




the

I5t*hA"NltT

.

„

market

Jersey);

„>

on

page

of December 31, 1962

as

57,104,053.54

less.—

or

Deposit,

at
29,656,232.63

1

Receivable

Accrued——

1,153,186.35

—-

160,077.72

—

...—__—

Cash eind Due from Banks,..—

,

Executive

;

,2,2^94?8.16

$180,635,248.72

Vice-President

HORACE C. FLANIGAN
Coniiiltrtnt and Director,
i

I

Capital

•,

r.:

,'

\

New fork

^

-

General

Loans'

"

-

THOMAS L: PERKINS

of the Trustees,

The Duke Endowment

,

.

'
'

—

Undivided

'

r-

ADRIAN M. MASSIE
-,

—

Surplus

ANDREW K. MARCKWALD
Senior Vice-President

LIABILITIES

.

*

<-

Manufacturers Hanovei Trust Company

—-

$2,000,000.00

4,000,000.00

—

2,933,599.96 $

Profits

Reserve

—1

Payable ..i.:...

—r-—

Acceptances Rediscounted and Sold with
Endorsement ...—...L.

;

;

.

„

HERBERT N.

tif

;

JOHN J. SCANLON.
VicePresident,

American

Telephone

v

36,494,280.42

601,314.74

Accrued Taxes

A-. AAA''A A
,;A-r

,

300,000.00

105,518,440.84

\ 27,660,929.11

'

REPP

President

'■v.:'?'-

8,933,599.96

—

Security Contracts.:—J

if all

fully efn-

,

A

Telegraph Company

Accrued Interest and

Sundry Credits...

Expenses

;;

—~
/-

—

675,012.17
451,671.48

$180,635,248.72

; v

Co"^0^:

and

sored by the Credit Policy Committee of

banks

^„A,T"jan. IzTflel.^Asscci.tio", ehi-

efficient

of

•

Continued

^ 90,282,140.32

Negotiable Certificates of

Sundry Debits

to. meet

.

slightly

in

shorter), then jump 15 to 20% in

CHARLES E. DUNBAR
-"

.

non-

their responsi- J
if
banks
were
able
to
operate bilities, can we realize completely v
more
efficiently and to compete the opportunities for the growth
more
effectively under National of our industry and commerce.
occur,

dip

(because the month is

•

,

commercial

month,

February

United States Government Securities and

YiccPfejident and Director,.

office;

~~;

Banking

j

Chairman Board of Directors,' • '''v,
The Chase Manhattan Bank •!

;' "' " 0iairmaft

bring defections from the State to

expected to climb 10 to 15%

are

EMTLTO G. COLLADO
V

Much of this building has taken •
,Place in-the suburbs of the larger .

National Banks, some fear, would
National

■■

-

Chemical Corporation

Interest

Extended branching powers for

the

'

'''

apartment construction. £

-buildings and suburban shopping

.

of the Board,
u

im¬

hohsehb1!#1 appliances, office furni-

Security Contracts, at market

;"'

the opera-:

banking

our

Chairman

'"'

National Distillers

bon.housing units were built. The
nse.
the total stock during the
?.eno? was somevyhat ess, 12 milll0n' because
demolitions.
in

and,

proved/^bu^ing ''by^'&akej^!: 'df

Acceptances Discounted

JOHN E. BIERWIRTH
"

that

continued support

ASSETS

*.

• i

requirements:will not weaken, but
will

Units in

of Condition

Saint Paul,

GEORGE CHAMPION

sufge

—

companies

■'

-

1950 and

auto

JULIAN B. BAIRD

Decade

Between

doubt

building inventories at¬
the market's
vitality to

DISCOUNT 5 CORPORATION

■;
f

i

only

are

OF NEW YORK

cities, but a substantial increase: •
oi: privately-owned
banks, has occurred also in the construe- ;;
which allow banks to adapt tion of i high-rise apartments in v
sensitively^ to the' Nation's-tha
<:ities^ ^emselves. J

;. which now

tion

.

an

'

year-to-year1, declines, in

fusing have occurred five times,
^*4 only' once—in^ 1960^ was.
4!!1-a setback ■ in the, pace: in
..total construction activity.

banking system. Over

our

.L■'

big item

;

ture of

•'

homebuyers' budgets. Since the

war,

in discussing the

are

DIRECTORS

financed,

sales

total

of

who

Steelmakers
users

The substantial vol-^net tons (128.3%).

terms andVhigh pfo-:.;

long

portion

1'

\

the

add

will

v

.

the

believe

sources

^

to a availability
of mortgage credit
when.hav® tbe!r construction. Because
greatest impact on
residential

find

to

Detroit

supply instead of 90.

Homebuild-

The ,„terms

One

that the Big
about 20% more

decline

is point-

where

are

to a,

they did last year—about 45 days'

compared to Jan. 1-26,

channels
means

the

think

point

much steel to inventory as

as

from

they will merely' be diverted into

to

Steel

reports

automakers

half

highway expenditures are among. Jan. 26 shows a production deinS has been more volatile than other factors providing a con- cline of 20.4% compared to last
eittler Public or nonresidential tinued rise in overall spending on year's week output of 2,390,000
before

who

ordered

Steel's

the

'

18.8%

an

inven¬

an

month.

structiures and the effects',of able age,,Expected further gains 1962 production of 9,325,000 net
chan§es m the terms of credit in in personal income and pro- torts (125.1%).
lar^e part accou"t f°r sharp ups gramm6(i advances in the pace of Data for the latest week ended

Centered'

these techniques,

on

the

Long

that

they are likely to use during the

+ 4.4

year—through Jan.

registered
•

banking structured

-;

tonnage for March delivery than

output of ingots and1 c'ast-

and weaken the

mill

Three

3.8

The week to week

is the ex-J output dipped 2.7%.

reason

average

automotive, orders.

of

Ohio

of/ the ; Sixties indicate tons (*102.8% ) in the week end-

^lm" aged 4.1 million in 1962.: In addi-. vigorous

K

102.8

.

on

underway,

started,

has

flood

%
+13.0
+ 2.6
— 2.0

1,915,000

-

is

Steelmakers

production for the week
elided J ah. 26 was 1,863,000 tons
as

based

for ; 1957-1959.

steelmakers

buildup

According to data compiled by

(*100.0%),

re-

98

magazine said.

stitute,

the- future, govern-

production

buildup

tory

,

+

88

industry.-.:..... 100.Q 7

of

production

some

^onsti^ictioii to Boom iii LastJ r thefAthericaii^ Ifon and Steel fhexpen-

113 7

85

Upward

Output Declines 2.7% After
^vanc|ng^Three Weeks and Is
Down 20.4% From Last Year

wl^erever ,fxistinS structures are cently has been the growth since

perform with the highest

133 1

Incoming orders for steel surged
upward
last
week,
convincing

,

,

Ohlv

109

121

L-.*- ,103».

9 3%

be

1949, averaging

since

105

.Western.

weekly

ex"

throughout the United States.-On-, pendituyes

wo

.;

Incoming Orders for Steel Surge

n

re-

93

151

108

•_

.

Louis—

""Index

the corresponding

Jan. 26—.
1963 .
.
1962 -,
retiance^,we ^
construction - activity, ' of - ahont 1
t« 'iqpt
w contract
New *°rk-~ $18,246,428 $10,153,911
on private initiative, it is
,rti,un,ri?/
by contrast, Chicago.—
1,270,783
1,239,119
in the tiepri to nre-erve n C0^rse!
ls carri^" on Virtually the • ratio, .was' 19%.< The maill - Philadelphia ; • 1,153,000. 1,176,000
7
nfea t0 preserve a- everywhere*
wherever ' hew- foacnk
em,na.
Boston...^.
893,999
v. 860,944
of dynamism and enterpriser
v«
t
$
^construction s smaller Kansas city : 548,616
525,692
in this^^ wav
^bahkW beiJ^^tures
a^:Peededf and>share
•

snect to thf» tipprp.p nf rplianro
spect xo ine aegree oi

94 «;•:

151

Total

tof obtain

possible

clear£

y

95:

;

>

113

Southern
-

,•

a-

87

Chicago

>•

.that for the week ended

k

90 v

«

"

S teleera0Wc fdvTces from the
SSwSSS
^

the

1983

91

,

93

Cincinnati

Z™*which
is pro-

space

vided by buildings erected in

1963

:

Detroit.

•

'nW P
77'dozen years.
week last year. Our preliminary
'^'Shways,-,schools-and sewer-', totals sta nd at $32,218,896,094
.i". n°£ being concentrated in age and water improvements have. againstft $29,304,715,257 for Uhe
^alT^ ?d tbe risf. in Public wnstruc- same week in 1962, Our compara¬
P™^1011 °f, s"ah ™^te*ial;!f tion. Spending for. public con- tive summary-for some of the
^"^toce™e"^'rt„lye HT« 57^
been <*uite stable in Principal money centers follows:
Week End.
(000 omitted)—y
&&£# totql :goyei7iment:
i

able

to

all man-made

■

Jan.19

Cleveland

one--^rd^' Jan- ^...clearings for for
a11
cities of; the United ; States

Midwest. In Chicago, almost

71

-

Pittsburgh
Youngstpwn

will

week

.

Production for

:

■ <»

North East Coast.„.^

-!

hv

-

than

thig

sh^n1nc"eafe ^red

pe-

" i

,

,

.

s.

Buffalo

<

1962 Week's Volume

clearingq

been most vigorous in Manhattan,.
nation's total in the postwar

s,

•

Ending

face in shaping theft^

we
.

'

years

Clearings Increased 9.9%
k

B

on newstruc- riod. A substantial increase, howduring-this Deriod At> theever also has taken < blace-ih :th<&c^

$1,000

The Basic Task

to provide

in the

,

in

years

present time the nation's stock of

of de novo branches.

structure of our

'

'

of Ingot

*

7-

,2

.

prtee#_was spent

ex-

preferXleTnew^ILrtersTthe

.....

follows:

Jan.26

Bank

1962 centers have highlighted the rise

a

billion

hold-

mergers or

credit

<the

compares

ahead.

sin?e world War II.; About $670 which has accounted for halt the

many

are

circumstances.iix ,which bank

The task

savings .and

Above

Neverthe-

there

expected to rank

District—

tradition^;o 0f construction in the 17

competition.

establishment

Failures

Institute

importantly among the outlets for

_

less, even withm our own compel

pansion through

Business

i

Commodity Price Index

serve

wnicn;tnere ,is: no

traditions,

:

S count'rie^Tn Annual Report Chicago is study in activityoffice construction has
recenUy. The postwar
countries
in
Bank of of toe Federal Re- boom

from
irom

come

economy can be

Production

^

Index of Ingot Production by Dis¬
tricts for the last two weeks as

basic and diversified sector of the
Index

Price

Auto

TXTlfTTfinPl? V

9Tm

The

expansion of this big,

finance

r C

Trade

Food

^XV^*L/1J a¥X XV X

.

itive

•'*

to

holding

or

_

maintain

Retail

V-r V.-,

costly than expan-

more

through mergers

usuauy,

*

T^T? A T^TT!

Those critics

companies, and results in
,

.

that bank expansion through
charters and new branches

is often

sion

the

on

of unit banks.

nance

argue

place

we

of funds that will be required

ume

Output

Carloadings

15

OFFICES: FIFTY-EIGHT PINE STREET

:

16

16

The Commercial and Financial Chronicle

(472)

Continued

from

build¬

March because of inventory

ing and seasonal factors,

Plants

in advance

supplies

steel

of

Ford

moderately
focused on the major steel users,
heavier. Gains are the largest in
coated material or in plain fin¬ particularly automotive. Here is
the picture this week:
v
ished stock to be coated by the
General
Motors apparently
is
fabricator.
'
delivery

March

are

teeism
at

but

improved,

also

has

bars

finished

cold

for

Demand

heavier.

and

substantial part of the ton¬

a

required is available from

nage

stock.

placing March orders that are in
a 20% increase. Chrys¬
is

taking

Several

holding back. Ford is pushing its
and

slowly

moving

commitments.

lose

hard

facilities

steelmaking

own

shipments1' are increasing.

Plate

production

is

but

steps,

some

normal

the

to

production

some

\h'' X'?

/

•

X wholesale

'{' / './X^

an

Commercial and industrial fail¬

ward.

rebounded

ures

to
24

week ended Jan.

preciable

321
after

decline: to

Rail

Loadings

weeks

been

has

/level since the last week in April,
1962.
Output this week is ; ex¬
pected to be about the same as
1,915,000 tons that Steel es¬
timated the industry poured last

Iron

Pittsburgh

ap¬

and

the

noted in wheat, corn, lard, butter

in

casualties slightly
week

above the six-

reached

peak

but

they

remained
of

short

the

Jan.

on

year's level of 389
far

10,

No.

heavy melting grade of

1

held at $27

scrap

ton for

gross

a

second week.

the

-

moved

corres¬

ponding week in 1961.

toil

-There

were

loaded with

or

cars

reported

more

13,008

one

to 48 from 33,

of

400

1939.

revenue

the

service to 40 from/
hand,

even,

against 142, and the change

as

for

other

bellies,

steers,

rye,

The

&

Dun

Bradstreet,

Inc.

Wholesale Food Price Index repre¬
sents

the

of the

total

sum

of

pound

price

foodstuffs

31- raw

and meats in general use. It is not

cost-of-living

a

function

is

index.

show

to

chief

Its

the

general

trend of food prices at the whole¬
sale level.

Deep Freeze Hurts Retail Buying
Consumers

peratures,
strikes

in

pace

beset

an

edge

over

continued

in

all

-

hold

to

levels.

year-ago

over

this

ended

week

business

weekend

was

worsened

but as
early
this

hop ping,

enthusiasm

up

weather

week,

and

purchasing

However,

volume

Good

tem¬

their

the

Wednesday.
retail

icy

storms,

by

snow

slowed

toll chalked

the

retailers held about

among

141

other

the

On

quoted at wholesale markets this

per

29, and manufacturing to 55 from
On

oil.

cottonseed

week

also fell

and

casualties climbed

Construction

48.

steel

sharply.

fairly

up

were

last barley, hams, eggs and hogs..

below

1961

toll of 385 in

war

in

11,910

of

the

above

advances

moderate

and

week

increase

an

registered

were

in quotations for cocoa and raisins

side of the scale, lower prices were

Decline

Resume

2.4%

or

Strong gains

Bradstreet, Inc. This upturn lifted

again

corresponding

but

cars

.

have

s

many areas,

buying has
highway trailers or highway con¬ among wholesalers was slight as sagged. The transit strikes added
not
to the problems of Philadelphia
tainers (piggyback) in the week their toll inched to 37 from 34.
clear yet. There is sortie feeling
while
New
York
and
service
businesses
failed retailers
ended Jan. 12, 1963 (which were More
of new pessimism about the labor
stores
suffered
the
included in that week's over-all than in the comparable week q Cleveland
outlook. This feeling, along with
lack
of
newspaper
advertising.
total). This was an increase of' year ago and wholesaling mor¬
a
major automaker's move^. is
spot reports indicate
matched
its
1982
level. Hbwever,
1,575 cars or 13.8 % above the tality
triggering general action. What¬
car
sales
running
about
6%
corresponding week of 1962 and However, casualties in Other in¬
ever the cause, there seems to be
brisker than a year ago, and it
2,739 cars Or 26.7% above the dustry and trade'groups1 Continued"
a
upturn under
Some

magazine's price composite

The
on

re¬

Orders for

—

the

1962,

these

reported

Age

gional market trends:

the

/week*/// ///:/ // %I;J.-

low

number moving down¬

equal

in

Another

buildup.

in
by

an

286

group, the

highest

the

at

higher
matched

were

the

major steel using With 5.9% Drop From Year-Ago
Failures involving liabilities of
Week
appliance makers, has
$100,000 or more rose to 53 from
10% over the fourth quarter aver¬ not
yet placed specific orders, for
Loading of revenue freight in 41 a Week ago and about equalled
age.
Shipbuilders are likely to the most
part. But some have the week ended Jan. 19 totaled the 55
occurring in this size group
place
more
tonnage in the made informa 1 commitments.
501,957 cars, the Association of last year. While an increase also
second
quarter, but buying for From a third
group, canmakers, American
Railroads
announced.
prevailed among smaller casual¬
that period has not
started in come conflicting reports. Some
This was a decrease of 19,558 cars
ties,
those
with
losses
under
volume.
sources
say the two major can- or
3.7%
below
the
preceding $100,000, which turned up to 268
makers
have
decided
against week.
Steel at Highest Level Since
from 245, they remained lower
hedge buying. According to an¬
April 1962
The loadings represented a de¬ than a year earlier when their
other
source,
they are making
toll was 334.
Steel production in the last two
crease of 31,374 cars or 5,9% be¬
provisions
for
a
six - months
England, they are about

New

In

cost

in

for the similar week and the pre¬

,

/

u v

moving

.

preceding week, reported Dun &

expected to

plants were

Foodstuffs

week

dipped; below

in¬

weather..

cold

consecutive

plants

industry's

closings and belated startups.

outside

on

the

of

eighth

year-earlier levels,

Upswing in Business Failures

at

Additionally,

/*''.

•!.v'-

com¬

supplier

major
few

a

output of the com¬

the

'

plant

twice

about

plants.

9.8%

or

by' parable 1962 week*

shift and absen¬

one

that the index has

seven

assembly

Thursday, January 31, 1963

ing

kwh.,

1,635,000,000

above the total

/

■

.

dependent truck makers lost some

line with'
ler

Co.

was

most

several

,

Merchant steel bar orders are a

;•/

recently

Chevrolet

A

Atlanta lost

-

trifle

Motor

plexes.

is

attention

inventories,

On

1960.

closed

.

and'

688,690 assemblies

bitter cold weather included

possible steel labor trouble.

of

record

.

week's total of 18,110,000,000 kwh.,

expected to vie closely

was

a

in January of

of growing con¬

spite

in

with

sumption and an inevitable build¬
up

ri

February-

for

orders

Sheet

is

This

15

page

month

and INDUSTRY

The State of TRADE

.

inventory

say

started. Most mills say this is

.

1983 model pas¬

Three million

have already been
reported.
January
output is expected to set an all-

senger, cars

Steel

built,
time

monthly record—the record,

in

assemblies

688,700

January,

1960.
/

ruary

perhaps

—

600,000

to

Several

small

partmakers

Co.

have enough steel

the end

model

and

Month

like

the

hold

stead

of

would

be

industry's
a

change¬

The

help

little

in July in¬

August.

if steel talks

timing

carbuilders

to

collapse. They would

enough

the

have

there

new

steel

in

inventory

buildups,

car

are

;

1

but

March
to

fits

and

look

has

not

But

moving

long

inventory
time,

tinue

to

are

short

are

Delivery
buyers
is

condition
on

the

This

At

a

any

act

like

continue

basis of

small

on

as

users

market
to

a

decep¬

weakness.

hesitate

to

on

talk
mar¬

the "nervous" side.




road

in.

period

i

the

10-day

in

traffic

this year's week

54

in the corresponding week

and
of

Declines

Tonnager

the

prior

Intercity

week ended Jan. 19 was 5.0% be¬

in

volume

the

the

Associations

Trucking

severe

The year-to-year
week decreases
in

part,

week's

would

1

last

result

Ward's

5.0%

originally

the

behind

planned

production

week. The

the

output for

week

of

4.0%

the

be¬

can

be attributed,

longshoreman

the

to

and week-to-

units

made

corresponding week of

in

the

in

output

conducted by the ATA De-r

the

drive toward record

has

industry in
January

duction.

a

The

report

handled

at

re¬

more

than 400 truck terminals of com¬
mon

carriers

of

general

freight

West

a

pro¬

-

of

day,

more

car

than

27,

Editor's

yearly
ment

Note:

,

three

in the

as

from

60

to

production,

lumber

unavailable

this

week.

are

-

Record

High

In Rising

New

making

this

Electric

Output

Year

in

week

the

just

week earlier and

a

level of 44.

comparable 1982

by

fractional

this

of

week

Bradstreet,

Rye

were

but

Inc.

priced

gains

number

ing

wool,

and

remained

Wheat

and.

substantially

the 'Edison

Output

more

than

was

the

a

includ¬

hides,

—7

to

—3;

East

to

+2;

Middle

At¬

Central,

and

lantic,

West

from

0

to

a

edged
on

to

ago

strong

when

cific

was

es¬

cn

up

a

rel¬
the

the similar

Atlantic

previous

Food

by

Dun

It

the

was

same

level

off 0.7%

as

-f-6;

Pa¬

Store

6% Over Last

Year's Week

o

sales

store

on

a

country-wide basis as taken from
the Federal Reserve Board's index

reported

overall

an

gain

6%

of

for the week ended Jan. 19, com¬

pared with the. like period in 1982.
In the four-week period ended
Jan.

19,

1963, sales

over

the

corresponding period in

15%

gained

1962.

Price

&

In¬

Brad¬

last week.

from $5.93 on the

corresponding day of 1962, mark¬

to

the

sales

in

week

Federal

York

New

ended

Re¬

department

System,

Jan.

greater than the

for the

City
12,

store

3%

were

period in

same

1962.
The

New

papers

York

strike

City

day,

Dec.

the

1962.

have

been

strike.
has

15%

more

centers

cludes

City.

in

Even

spread

a

12

which,

to

.,

Satur¬
only

can

sales

the

the

absence

though

year

totalled

retail

incidentally,
and

for

ago

principal

Cleveland

the

Cleveland,

average

than

country's

a.m.

One

what

to

as

four-week

the

the

8,

news¬

printers'

the

by

Big Six commenced 2

strike

street, Inc., held at $5.89 on Jan.

Electric- 29,

211,000,000

Wholesale

compiled

to

Department

Department

of

Steady in Latest Week
The

-f-2

+7

+3 to

speculate

Wholesale Food Price Index

dex,

to.+3; New England

Sales Rise

it stood

from

decline

chalked

274.58

Jan.

only slightly lower

month

270.35, the index showed

atively

269.75

Monday,

in the preceding

269.28

South

-f-4; East North Central and

According

While

week.

North

Mountain —1

serve

Index

from

coffee

Daily Wholesale Commod¬

Price

than

industry for the week

to

registered for

commodities,
cotton,

varied

—2

hogs.

light

timated at 18,321,000,000 kwh., ac¬

kwh.

28,

energy

electric

Saturday, Jan. 26,

Institute.

were

of

col¬

Bradstreet, Inc.

estimates

Nationwide

comparable levels, reported Dun
&

estimates

spot

to

Central

week-to-

modity index inched higher Mon¬
day

re¬

ended

Central

the general wholesale com¬

row,

of

week

the

lected by Dun &

second time in

week rise for the
a

volume

dollar

in

trade

would

electric

the

tail

South

day last year.

Level

of

course.

total

Pacific, off comparable 1962 levels by the
following percentages: West South

the

remained fractionally below their

at

9.8% Over Last

amount

cording

30,000

in

The

according

In

68.

a

ac¬

ran an

Atlantic

(1930-32 = 100)

ship¬

data

and. neworder:

tivity in home furnishings

-

declines,

and

ended from 51

Staging.

For

row,

Middle

41

to

clined

a

Wednesday, Jan. 23, ranged from
i to 5% higher than last vyear,

the
106

in

contrast,

and

Central

regions

from

week

second

States where casualties dipped to, Regional

ity

and

the

bat¬

equipment.

17

well

as

Regions.

including

The

Weekly

fireplace

reported

South

England

throughout the country.
Lumber Data Unavailable/

shovels, flashlights and

teries,

up

up

mild

ended

units

from

to

Atlantic,

-

and power

rate

35

States,

the South

Economics.

it

a

Central

10,

flects

tonnage

and

uneven

North
from

port

really portentous implications, but
thwart

West

higher at wholesale markets, and

distributed

At

of 34 metropolitan

survey

no

may

the

partment of Research and/Trans¬

The

drop

Smaller

29.
in

occurred

toll

god week for purchases of

a

heavy outerwear,' snow\ throwers

North

the

below last month's and last year's

a year ago,

however.
The

Gulf ports.

previous

count will be above

car

141,271

assemblies

and

from

66

increases

Reports said.

dip to about 148,325 units,

nearly

to

East

where

an¬

These findings are based on the

weekly,

The statistical agency estimated
last

surged

to

the

States

•

several

winter weather,

-

,

Continues to Inch Up This Week

schedule

the

as

corres¬

ponding week of 1962, the Ameri¬
can

p*

In Canada, business failures de¬

in the

truck tonnage

'I

».

week of this year.

154,656-unit level

week

Central

Last Week and Year-Ago

areas

below

From

was

*

below the volume for- the previous

>

S.

estimated

v

in

Concentrated

96

Truck

.

But

■

an

below

the

Week

in

1961.

1

Wholesale Commodity Price Index

4% Below

units

thousand

com¬

V' -T"'

nounced. Truck tonnage was 6.7 %

delivery

output in the U.

fell

week

rail¬

class I U. S.

j

con¬

the market.

Prior

>

Auto

1981.

systems originating this type

strike at Eastern and

order

long-term basis, the

ket is still

de¬

inventories.

gives the market

long
any

not

extent.

short

permanent

and

auto-

from

class.

low

are

great

or

61

There Were

hind

is

still scrambling for

are

in

tonnage

same

advantage

promises

tive look of short-term
As

the

on

delivery promises.

lengthening to
livery

commitments
taking

much

not

spotty. While steel-

are

1963

for an increase

cars

v ~

Most of the week's rebound was

loadings

weeks of

two

corresponding

looking into the future,

salesmen

first

10.0% above the
corresponding period of 1962, and
4*375 cars or 23.2% above the

The out¬

theih suppliers

spark

these

men

the

but

market

Orders

and

even

holding out

are

is

The

—

Automotive
users

extent.

February

"nervous."

of

building.

they

Steel

pattern

possible before making

as

long-range

any

of

Age

pick¬

emerged.

Most steel
as

heavy

than January.

m akers

up,

Iron

far, the

so

of

stockpiling,

some

Week and

into the second quarter is in¬

evitable.

bulk

Auto Output 5% Above Year-Ago

magazine reported. A good
up

a

delivery .This is beginning

for

Cumulative piggyback,
for

pared with 57 one year ago and

The

—

Cleveland

.;

starts,

of

pace.

reflect

•

Orders Up

steel market is

by

indications

some

Detroit

open,

space

tonnage booked in January is for

Nervousness Pushes Steel

The

inventory

some

February

tightening

it

model

out

be

may

a

up,

con¬

building going on. Although mills

better

Factor
to

than; usual—the

period

have

Changeover

phased

be

may

earlier

Srtike

to

continue

sales

over

Auto

finally

are

is

there

not to any great

Earlier

looks

1964

of

/

Due

If

Chicago—Miils

still

V

At /pyesejnt there is no totaled 23,209
hedge buying, al¬ of 2,104 cars

of

though there is "lots of talk."

re¬

1963

through

us

carry

production

September's
models.

our

the

through

run

sure

hand by

on

to meet

of June

quirements

Make

week:

last

got

Ford

from

instruction

Motor

for

products remain at month-

evidence

down from last year.

week.

1961

pickup

a

ordering, delivery promises on>

firming

these

run

in

/most

or

lower.

way..

Philadelphia—Despite

ago levels.

Monthend cutbacks in Saturday
shifts signal a slowdown in Feb¬

you

pretty good

New

.

in¬

York

Number 6234

Volume 197

...

The Commercial and Financial Chronicle

(473)

homa, he will be made

Pmryi Alrlo

fir

Ivt/j IlUluO

w

Several states

FROM WASHINGTON

for by

the time the fight gets underway.

•*

oil

Ahead of the News;

.

of

CARLISLE BARGERON

looked upon as

are

and

biggest.

our

Vice-President
,

expected to be

as

JT

on

oil state,

an

v

•

He

SXlIlGr

r

<

-

The investment firm

opposite sides

of the President on the issue.

*

&

captain

a

in

1945,

the Pacific Theatre.

f

Jan.

joined

1, 1962

Reynolds
as

of Reynolds

Co., 120 Broadway, New York firm
to

of Freeport Sulphur

nppamrtn

,

plan;for tax reduction, cidentally, the depletion allowance
or revision,
which seems to give also applies to several other inwith one hand and take away: dustries Several efforts have been
With
the
other.
This
depends made in the past to reduce these

payers,

be. Clearly,
however, from
explanations
so far given by the White House
the

those who will benefit most
those

in

tne
the

lower
1 o w e r

brackets and to

f°™/d

dustry lost one of its strongest Arley B. Love, Vice-President,
supporters with the death of and Charles M. Semms, Secretary
Senator Robert S. Kerr of Okla-

Department

Treasury

and Treasurer.
"

are

Exchange, have announced
David

A.

the

to

III

firm

has
as

that he

New

York

was

City.

on

the legal

He is

Va., Mr.

Form Levin & Go.

from the Universi y of Virginia
and his X.L.B, ^degree ^fom^ the
of V i f g 1 n i a
Law
university

Fla.-Louis Levin is con-

ducting

bch001*

a

offices

at

securities business from
714

Seybold

Mr. Harrison entered the U. S. under the firm
Army in 1941 and was discharged & Co.
■'

:

•

-

'

■

v

'

■

name

■

highest, leaving it a gamble

in

.

the middle.

Congress—

Many members of

^

a" look-see

istration's

taxing
the

tgHONC&

they announce

before

definite position on the

a

*

of its leaders—want to take

some

fiscal

plans—both

the

record,

leaders

the

For

Administration

Capitol Hill

on

Admin¬

spending plans.

and

extoll¬

are

ing the Kennedy tax plan. And
those members who consider it a

great

gamble,

who consider

and

Administration-

the

cut-

should

j

BELL

expenditures if it is to cut taxes,
have tie good words.

The Presi-*

dent has urged speedy

action on
both.his proposals for tax reduce

SYSTEM

tiori and tax reform. He • regards
both

essential. He may have to

as

settle,/however, for the reductions
and only for a few of the proposed
reforms. His goal and presumably

that of members of Congress who
wish

the

on

enact¬

tax reduction, is the

a

ment of

tax law by July 1. Work

a

will

measure

with

begin

hearings by the House Ways and
Means Committee, opening Feb. 6
with

Secretary

Dillon

Committee

will

the bill and

on

stay with it.
regarding

however,

legislation,
wide

when the

18

get to work

situation

The

Treasury

witness. Then

until Feb.

recess

a

the

of

the first

as

open

as

tax

seems

What

as

40-acre* tfield.

a

is the

Bell

System?

Already members of Congress and
outside interested groups are pre¬

paring to

the Committee to

urge

Administration.

Kennedy

The

proposals of the

beyond the

go

Bell

There

the lowest

System is cables and radio

results

that

possible price. But desire

relay and laboratories and manufac¬

is not

^laminate Somip of. the excises (in

turing plants and local

high hopes need to be brought to

the

reality they, are sales taxes) now
imposed - by the Federal Governs

companies and millions of tele¬

earth and made to work.

^hi There

of the country^

You could have all the

in

good service, low

telephone.

phones in

those

are

wish

who

,

to

cut

or

those who. will"

are

demahd greater personal exemp-/

i

.

tipns, for' the individual and.. for
his; 6r her dependents.

every part

The Bell

operating

cost, and constant improvements

Bright dreams and

enough.

scope

many

know

System is people.. . hun¬
employees and

or

today.

>

_

the Senate side, Chairman v

Byrd of Virginia, does not intend
begin -hearings on the tax

to

,

measurer until,

.a.

must

by

the

the

House

has

Senate

Committee

nothing

to

act

has

might

have

relation

no

f'

**

*

more

It is

testi¬

before the Senate Committee

mony

V-*'

really

that

upon,

v

,

The Bell

the

acted,

:

the

to

measure

>

i

"x*

*

'

'

-v"

i

"

special skills needed to invent
the solar battery, or,

than that.

System is

policy of providing

you

munication —the

together in
an

idea.

It's the

idea that starts with the

an

with Telstar, to

the. benefits/of £11 those parts

Ar

i

of

a

fitted

in

And

time-proved combination
one

organization

pioneer space com¬
; Bell
System has

the will and the way to get

nationwide whole.

research, manufacturing and

ations

with the best

of the

the transistor,

the separate

parts of the Bell System and not have

sav¬

a

it done.

spirit of courtesy and

serv¬

oper¬

ice which has

with

important part of the Bell System

—

come

to be

a

most

idea.

close teamwork between all three—

possible communications services at

worked out by the House.

the

You could have all

ings in the business.
It is

originate. His point is that

until

and

men

who .have invested their

women

.

it

where

House,

million

two

:

bill " has, heen

,

passed

than

more

one

in

your

tasks of everyday operation—

the

4

On

and usefulness of

No matter whether it is

equipment

and still not have the service you

dreds of thousands of

bill does not reach thei

If

Senate before June
the

bill

the

to

delayed
the

long

a

Congress,
tax

White

second

might

as

time,

be

may

the

be

may

the

but

a

might defeat its

Aside from those who oppose a
a

reduction

expenditures, Mr. Kennedy will

find

his

American Telephone & Telegraph

Company
Bell

•

Company

Telephone Company of Pennsylvania

greatest

trouble




in

his

Bell Telephone & Telegraph

Michigan

Bell Telephone

Northwestern
pany

•

•

Bell Telephone Laboratories

The Southern New England Telephone Company

Southern

purpose.

of

SYSTEM

This

President

tax reduction without

TELEPHONE

88th

year.

coming too late to

economy

BELL

•££

until

even

of

election

an

help

House

session

reduction

help the

1

final action sending the

case,

Bell

Company

Telephone

•

•

•

The Diamond State Telephone Company

Company

•

Western Electric Company

New York Telephone Company

•

The Ohio Bell Telephone Company

Indiana Bell Telephone Company

Company

•

Southwestern

The Pacific Telephone & Telegraph Company

•

Bell

•

•
•

•

New England Telephone & Telegraph

New Jersey Bell Telephone Company

•

•

•

The

The Chesapeake & Potomac Telephone Companies

The Cincinnati & Suburban Bell Telephone Company

Wisconsin Telephone Company

Telephone Company

member

a

income

for the great body of taxpayers

staff

Co., both of

degree, those in

a

on

a|0f the American, New York and

Harrison received his B. S. degree

.

Co.

Virginia Bar Associations.

A native of Petersburg,

'

-

Harrison,

admitted

general partner

anfftmnkiin t«

vestment corporation has been
°f&ces in the Masonic Building to engage in a
allowances but they have been secunties business. Officers are
unsuccessful. The oil and gas in- George T. Semmes, President,

to
the

happens

payer

the

—

a

largely in which bracket the tax-

and

ai*»

been

&

white & Case, and prior

City, members of the New York
that

Automobile InV. Co.

Kennedy has handed to efforts to reduce the oil and gas
Congress .as well as to. the tsx*. ,273^
jclcplction allowance. In—

in

assistant Manager

Stock

President

serving

-

of the New Business Department.
Previously, he was with the law

.

from

coming

C*r\
vU» i

V'v ••£•••

TV"

J\J aiH6S

they include some

.

T

Johnson
is

BY

states

up

17

•

Illinois Bell Telephone Company

»The Mountain States Telephone & Telegraph

Bell Telephone Company of Nevada

•

Com¬

Pacific Northwest Bell Telephone Company

Building

of

Levin

The Commercial and Financial Chronicle

Haven

State
Lock

Mill

The

Mill

Bank,

Hall

Hall* Pa,,; into

of

merger

NEWS ABOUT

Trust

•

BANKERS

BANKS AND;
,

*7

"

J-

'

•

•

Consolidations

-

Branohes

New

•

'

•

'*

.

.

■

New Officers, etc.

•

''■*:*

'

•

.

V'-

7

TJie

r

*;:77v7riv..vJ7''77

i.-'

Trust

Street

Broad

Mr. Mann

7

:

Dooley, a Director.

7

*

*

•

.

v

Co., loan

; ^

-

elected

/A//;/--:p4'p"

value.

same par

'

/ Manhattan Bank, New York.

7! elected

vi

Bank in

by. Harold H.

77 announced Jan. 25

elected

111.,

Sy"Esecutive K^"wSdent
rneriy awcutive _viee-wesiaent,

"Parkway National Bank of Talla¬
*

the

into

three

All

ha§ given preliminary : was
organize a National,
Farmingdale, New York, T°

elected Vxce Chairman of

the.

;

'7

.

7

.

#

7

- #

#

i.

k

r

Murdollgh

■

-

.

-

to

Bank's

the

Board

■

*

William

H.

Chairman of

Moore,

The Syracuse

New

Company,

Trust

Bankers

Savings Bank, Syra¬

_

21" that he has

given fjreliniinary 7
organize .a; National;
Bank in' Everman, Texas.
^
:
7

approval to

#

~

Initial capitalization - of the

elected Robert L.

bank wilt, amount

Adter, Joseph Alpert, Thomas R.
Beverlin, Jack O. ^own, Marshall

_

it will be operated under the title.
"First National Bank of Everman."

Wurman, S. B. Fuller, Charles

.1:.

berk, Jr., Directors. Mr. William: The .Republic National Bank of
Dallas, Texas, elected Henry Neu- V
F
was elected Vice-Presi-

.

Tew^n,,. Sguor
Charge Trus

^

in

dent

Ri

Mr

hoff, Jr., John M. Stenimons,'and:

formerly Ex-

National

Pittsburgh

Division,

Vice-President
Cashier
of the south- ert E. Bushnell, who is retiring
Bank, was also elected a member
western division, has been elected April 1; Mr. Bushnell will remain
of the Bank's Board of Directors."
;
7 Homewood, HI.
-j
a Trustee and an Executive Com¬
7, a First Vice-President. .
.
Mr.
Brittain, who joined, the mittee member.
The District of Columbia National
bank in 1947, was named an As¬
♦
*
#
Bank, Washington, D. C. elected The
& Trust Co.,
sistant Treasurer in 1951, Assistant
The Liberty Bank and Trust Com¬
six members of the advisory com- «««<
> Vice-President in
1954 and Vicepany,
Buffalo, N. Y„ received mittee to the board.
They .are ter and Thomas F. Monahan, VicePresident in 1957.
approval to increase its Capital H. Max Amm6rman, Philip Guar- "residents.
$
^
^
^
$
*
Stock from $4,587,160 consisting
teo,, Thomas W. McGregor, How- Stii.
*-7.^ 1' *^ 77 7

Brittain

head

III,

.•

-

v

Morris B. Zale, to membership on
the
bank's
Board
of
Directors;

£ce President, Cashier
^ f

^

.

••

also named Associate Directors -of

.

t

the

Bank are Hamlett Harrison,
Raleigh Hortenstine, J. C. Karcher,

-

„

„.

S^fs Bank
Chiel®ct^ Jo?ePh Burl-,

Wildes,:Investments.-

-

The election of John P. DeSantis

of

and

Vice-President

ard

$4,947,160 consist¬

A' Philipsoii.

_

'

'

J.

XT

T

and

,

«lected; H.

'

Lowry,

Keating,

The Valley National Bank of Ari¬

C»J. National Bank of De-

"

..

Jerome

,

/

value'.

par

Michnick, Walter D. Newrath

and Robert

ing of 494,716 shares of the same

York,

New

Company,

458,716 shares of the par value

of $10 each, to

Treasurer of the Federation Bank

Trust

rs-:)

*

.

,

and

•

-

.

■

■

Senior

•

-

President, J. L. Latimer,VInvest-;
ments; B. F.; McLain, and WilliamH.

-

as

new

to-$4Q0,000 and?

A. Reininga and Gilbert J; Ryn-

-.

,

Vice-President

President, succeeding Rob¬

cross,

1 7

-

D,

N. Y., elected Lester J.Nor-

cuse,

York, has announced thpt Alfred

tivG Officer

7-

The Comptroller, of the Currency
James J. Saxon ■announced Jan."

retirement of John
#

f7;:k■ 7

...

r'::7a/A7:'■aA77

'

Alabama,

"First National Bank of

Company, {; Athens.'*
G.;

Thomas

of, Directors^ P[e fills n .vacancy

.

.

formerly ■ Executive
Vice-President,- was elevated to
President and Chief Administra-

Schneider to the bank's Board of
Directors.

Limestone

of

Athens,

National Banking Associa¬

the title

Lambing,

promoted

were

a

Bank,

tion. The bank will, be operated
by its present management under

.

'

gsifi a SJSSTt

ment.

conversion

County

;

Cj,icaf9

They are Wil¬ under the title ^First National The FUtshorgh National : Bank,
^ the
; 77
7: 7.
liam D. Carr, corporate trust and Bank of Farmingdale."
Pittsburgh; Pa. elected 'Frank * E.*
a
' v
trust
development i departments; 77A~7777/a7A7:7^
••V Charles B.
Eddy, Jr., trust invest- The Genesee Valley Union Trust
% ment department, and William H. Company of Rochester, N. Y., has Executive Officer.
Malcolm
E. Ch'cago,
III
Gambrell, personal trust depart- announced the election of Carl E.
from the rank of Vice-President.

:7;:77'; vV

*

The Comptroller of the Currency
James J. Saxon Jan 21 approved

C.

1'

NorH»«» ■
|U
elected

•

§i Helm, Chairman.

a

$450,000 and

operated under the title

hassee."

was

Robert

Gunness, a Director.
>
:77v::777 V77; *
*
*

Directors and Chief Executive Of-

approval to

Trust

Chicago,

elected. chairman of 4he Board of

22 that he

sion of Chemical Bank New York
Company, New York, was

&

it will be

1944 and Vice-President in 1949.

.

National

a

Initial capitalization of the new

Secretary 7 in

Assistant

•

He

organize

Tallahassee, Florida.

bank will amount to

-coupon

departments.

to

in

.

*

•

joined Harris Bank in

1927, Assistant Vice-President in

,*

A. Sienkiewicz who was

Casimir

\

,

* /;:a*7A, * :'"7'Aa7 A/'a7A;7
.;A'7'/'■ ■•/■.■:A/. PPPp'r -:p,
The qlectipn of three Senior Vice- The Comptroller of the Currency'
Presidents in the Fiduciary Divi- James J. Saxon announced J an. 7
*

#

Bank

.

of

sisting

the Chase

of

Director

a

approval

;

.

7
r.
*
7.*
*
each, to $487,305 con-* Philadelphia, Pa. made Harold F.
97,461 shares of the. Still, Jr., President, succeeding, jj^rris. Trust and Savings Bank,

value of $5

been

has

Parkinson

Jay

'

:

discount-and

and

collection

The Central-Penn National Bank,
C.

Thursday, January 31, 1963

.

1921, and in addition to the trust
department, he has worked in the

Philadelphia, Pa., elected James T.

.

Revised Capitalizations

•

7

.

with the

•

Lo ck

Company,

Haven, Pa.

Jan. 31 after 42 years
Bank. ■

.

Dr*

Director.

a

.

#

,

-

,

Mullan and Kenneth W. Watters,

*

Directors;

,

#

Phoenix, Ariz., elected Read*

zona,

John

;.•'**

•*

7

»

:

Nabrit, ;.Jr^- were, alsPOiLA
iuayw 4 - 77 ^.7 7
/ 7 :
7
elected to the bank's Bcfaifd 'of
.been The First National Bank of San'
Vice-President,
wa^&nounced Bank of Buffalo, Buffalo, N. Y-,
Directors." '7
?
7;,
. elected, to the
B^rdf.o^gireQtors
1 Jan. 31.
■
\
?
of the Michigan f Bank, Detroit, Jose, Sail Jose, Calif.; elected Wil~received approval to increase its
Al/A/A / /v/ V ,\7 // *
* A * 7./7/A' Ai/AA/
liam V. Pratt a Vice-President,
Capital Stock from $1,434,380 con¬
Negotiations for merging Bank of
The Federation Bank and Trust
instalment loan administration,; 7?
sisting of 143,438 scares of the par Powhatan, Va. with The Bank of
t
."•
*
•.*: « ^7;>A;77T.:77^:i:'.^r.5. '
Company, New York, is offering to
value of $10 each, to $1,463,070
;;*A.;A"';*..: a., •.v'Vv*
J
71*', V
V.-V.'.V
P;
Virginia, .7 Richmond,
Va., 7 have Herbert L. Bobke was advanced ?
John

and

E.

Varley^as ; Senior

*

*

,

James

$

M.

^7, Endicott bas

.

'

A-;"

,

stockholders
for 100,114

Rights

to

subscribe

Capital Stock at the rate of

;

consisting of 146,307 shares of the

additional shares of its

additional

share

for

each

shares held of record

*

The

22.

share.

>.

<

nounces

The Rights will expire on

B,

Feb. 7.
<-■

is

offering

7;7 written

by

being

•
j

-

the

After

of

the Bank

>

the

offering,

will be

divided
VA/7

Jan. 24

issue of the

?

T

elected

7•..'■A.

*

*

Directors.,

.as

a

/A *A I\7.77'7aA7:A:..tt*

?

*

<

and Carl A. Gerstacker, Directors.

Summit

*

*

.

:■■■

■;

JJnion

C

Cleveland,

consisting of .525,144
the par value ; of $10

S. Wilson to the Board of Directors.

Directors,

$5,356,470 consisting of
shares of the same par
;

•

.

,

The Central Savings

City

.

Gross
*

■.

The

A^7'7A':A/7/7A

Ray¬

*

Bank,

announced, the

election of Mr." Sidney B.

Bowne

Jr. to the Board of Trustees..
.

■v V. '

A;.-

The
N,

*

Bank

Y.,

crease

of

*

*

■

.■

.•,■777:

Babylon, Babylon,

received

Bank, Newark, N. J. elected John
W. Kress, a Director.

approval

to

in¬

its Capital Stock from $1,-

-

.

of

the

par

value

of

$5 each, to

consisting

shares of the
*

same

of

par

*

230,096
value.

Sayville,

'A

The

.

/■

-V •"

-

a

Steele,
? A.

First

R.

N.

Y„

re¬

Kansas

,

elected

R.

Hill

a

t;

Initial; capitalization of the new

bank

Bank

Commerce,

of.

City, ?Mo^

elected Justus

Putsch" a ; Director.

W.

title

will

,

amount

.

"Mission

to.

''■PPP\/'S 't'■

First

The Traders National Bank, Kan-

waii,

- *

*

*

*

77

National

Honolulu,

*

Trust

Philadelphia,

Co.,

P?P''':P}~:Ph

Bank

Vice-Presidents

City, Mo., elected Charles C. George 7 R. Ariyoshi,. -Russell H.
Fennel!,, Oliver, Jr., a SeniorJ Vice-PresiHassler, ^and Robert C. Wo, Di¬
dent.i'-Mr'-p
rectors.
-7-7' .'/ ' Pp'p\: { J "
v:' ;77 J

*

-

*

♦

National

Bank

of

The

Union

Kansas

a

*

♦

National

City,

Eckley,. H.

The Merchants National

Bank

&

Mo.,

Bank,

elected

H.

in
V.

Customers' Brokers

Director.
*

77:

*

were

•..

77a

gon,

7 '

Vice-Presidents.

of Feb. 11.

*

*

*

cago,

to .the

f;-;.

--C:

W.

'■

■....

* /.-■

•

Customers'

an

v>

Philadelphia,

.

*

*

Gillman

.

-,■• *

-A

a

Mo.,

elected

*

A.

\

*

*

York

educational forum

will

hold

Tobacco

on

George

liam

Street, New York.

Speakers

will be Malise L. Graham, Faulk¬
ner,

F.

Dawkins, & Sullivan; Orren
Knauer,

Corporation;

Standard

&

and .7 David

Poor's
Norr,

Ralph E. Samuel & Co.

*

Winston-Salem,
;;

New

Vice President.

Cain, Lester The Wachovia Bank

Crown, and Joseph S; Wright.

7

;v

111., elected to the Board of

Directors George R.

*

:A,'; '

City,

of

of

'PPP'p- Stocks
today (Jan. 31) at 15 Wil¬

*

■

Board of Directors of the Central-

Pa.

,

The National Bank in North Kan¬

Bank and Trust Company of Chi¬

and Harold F.

elected

:

;

The " Association
Brokers

Senior Vice-President.

Co„v Indianapolis, i lud^,

The Continental Illinois National

W. Wilson White,

.

To Hold Forum

*

City, Mo., elected Jay Reynolds a

sas

Still, .Jr.,

elected

^

*

Central

Trust

appointed Senior
as

Ha¬

of

Hawaii,

sas

C. Graff, were made Executive elected Edgar J. Henderson; Senior
The Westport Bank, Kansas City,
Vice-Presidents,
and James
F. Vice-President;; Otto N. Frenzel
III, Vice-President and Cashier; Mo., elected Harold Woodhead, a
Bodine, Vaughn R. Jackson, Jo¬
77.":7
seph J. Evans and Anthony G. William H. Olds and Lee P. Har- Director,
were

of

The Ward Parkway Bank, Kansas

Executive; Vice-President to the
new
position of Vice-Chairman.
William P. Davis, III," and Alfred

Felix, Jr.

Bank

\

'

&

$2,500,000

National

Los Angeles."

The

T.- Marks,; Galen
Jones, Jr.,
Miller,- James- R. Stewart, and SV
Pa.
B. Taylor., Directors.
r-t

Banking

Pennsylvania

Saxon.

B.

Cleveland, Ohio, elected Frederick
The

James J.

R.

Mo^

7-

n4

Penn National Bank,

8k

The Oystermen's Bank and Trust

Compjany,

■

.

095,695 consisting of 219,139 shares

$1,150,480

MEiller

-

John

succeeding.

who retired.

Essex

Newark

William D.

Vice-Presidents

-Vt: Hadden' arid

*

*

F. Blosser and

mond

Ray¬

promoted William B. Walker an

;

Savings

Y.

*

The. National

Bank in the

Vice-President.

a
*

Roosevelt

Brooklyn,, N.

,

elected

of New York

mond W.
V.

,

.

#

*

>'}

Trust Company Sum¬

elected

John S. Beard apd John D.

A*

e.ri

cjty,

*

.

:

.

Vice-President.

Bank, The "Plaza

om m« r cc;

Dhio,

ard W. KixMiller and Mr. Sturgis

value.

Howard

and it will be operated under the

The
*

•

,

.

Conn, was announced

•...-?r

Stock from

■a-A

J.

Craven/avViceTpresident,' 77 7 l:p

xhe Linwood State

*

to increase its Capital

535,647

Calif,

anhounceji Jan.
.preliminary
#
approval to organise a. National;
Bank, .Kansas Bank ip Los .Angeles, C|iiiforniav

*

Deedrick,

of

•

The Midland National Bank, Min- 7

The National City Bank of Cleve-

The

to

♦

-

7..;;;Schmitt, Directors.

.Vice7President of The >; Jand, Qhto, electpd Francis A. Coy

New Haven,

Jan.. 24.f

7-

.

mit, New Jersey, voted Mr. Rich¬

each,

elected

#

a

approval on Jan. 21 from the New

shares

America, San Fran¬

.

York State Banking Department
"

The Bank of

cisco,

22 that he has given

was

First New' Haven National Bank,

' }

New York, N. Y., received

$5,251,440

Gamble, and O. Meredith Wilson,
.

*

s

Directors.

VChronicle,'?
•

'

Powell^
'
L

Minneapolis, Minn., elected B. C.

,

*

C, Carter, and -Stanley
Jr., Directors.
*
'

The Northwestern National Bank,

given in the

was

a

The; Ohio Citizens Trust Company,

7 „...i

,

^

Lapses,

The election of Gerald G. Hotchr

The Trade Bank and Trust Com¬
pany,

proposed merger

an¬

plans for

.,

The Cqmprtoller. fo the Currency-

i':

'■* 7* :A-"! 7'A 7;7*'://AAA:;

■

of

*

-

un¬

-

Announcement

*

National Bank, New Haven, Conn.

total

7

'

*

,

approximate; kiss

profits will

Mass.,

..

cisco, California, elected Benjamin

Bank, Detroit, Mich,

from

22

*

Senior Vice-Presi¬ 'page 307.

to

Jan.

California, San Fran¬

Toledo^ Ohio,; elected William W. ,neapodis,\ Minn., elected Joseph D.
Director of The 1 First New Haven. Boeschenstein
to
the Board of Bond, Darrel M.,Holt, and Paul J.

800,916 and its

$19,500,000.

on

The Bank of

to Vice President of the Public

an

the two banks.

*

Robert E;

outstanding shares of

aggregate capital, surplus and

-

according to

.

v/

by

Kuhn, Loeb' & Co. Incorporated.
% number

.

the election of Winthrop

Walker

dent.

under-

pleaded

group

a

*

Boston,

,

The

announcement
*

Jptate Street Bank and Trust

Compnay,

The subscription price is $32 per

7

value.

par

one

seven

Jan.

on

same

been Suspended,

Thomas H. Davis

a

&

N.

Trust Co.,

€.,

elected

Director.

Joins

Peters, Writer 7

DENVER, Colo.—Louis A. Waldbaum has become associated with

'

Peters, Writer & Christensen, Inc.,
increase Jts -The Board of Governors of the and head of the Aeorporate 'trust.
724 Seventeenth Street. Mr, Wald<The^ Comptroller of the Currency
Capital Stock from $464,100 con¬ Federal Reserve System on. Jan. division of Harris. Trust
and,Sav- James:J; Saxon,. Jan, itl, approved baum was fonperly President of
sisting of 92,820 shares of the par 17, announced its approval of the ings Bank, .Chicago, .Ill. will retire "21" that he has
7"* ; ^
given preliminary Brody Investments; Inc.* ; /
ceived

,

-

approval to
,




.

Franklin O. Mann, Vice-President

^

a

-

•;

*

(

*

*

Volume

197




Number 6234

.

.

.

The Commercial and Financial Chronicle

January 23, 3963

20

The Commercial and Financial Chronicle

(476)

of

w

MUTUAL FUNDS

and

$10

share

a

Thursday, January 31, 1963

.

year

a

?

." \

.

The Market... And You

'

State Street Investment Corp. re-

%

BY JOSEPH C. POTTER

assets

earlier.

•J

.

BY

WALLACE

ports that during the final quarter
-

of
-

it bought General Motors

1962

and

adding

The One Invariable

while-

Grumman;: Aircraft
commitments

to

in

Pure

Oil, Niagara Mohawk Power and
The

Whatever the nature of the trade,

business leader always will say,

a

for

public

welcomes

be

has

that

competition. Of course,

one

who is privy to the hair¬

anyone

best

cam

of the

sprung

Surely,

up.

do wp

thinking pf many, business, fn this trade had failed to

folks

knows

sometimes
After

all,

welcome

the

that

less

would

it

be

the

exclusive

fun having as an

more

line of aspirins all of the

for your

;

foregoing

reflections

are

not

from the Securities and Exchange

insurance

go

last

that

week

company

Let

con¬

Co. of America for

ance

vie

agency

the

with

affluent
one

published

decision is

mutual

fund

re¬

competition

There's

in

variable

to the fold more

of

people

the

in

funds

concerns."

question that

no

the

field

gratulation

be

may

for

bit

a

pre¬

a

It is difficult to understand how

only

bankers

and

When

you've

television,

been

inevi¬

done

the

fill

to

their

analysts, alert to

your

be

success.

ernment has no

the

only

was

a

a

witnessed
man

to

date.

in

For

the

business, that's

invariable.

one

-

*

com¬

hibitive

were

to

price,

elimination

be

pay

a

for

by

Shares Offered

a

NATIONAL
t

provides
a

an

of

Petroleum

Common Stock

General

on

Bond

Fund

net

Holdings

asset

value

Corp.
at

re-

Dec.

York,

joint

are

^

^

400 000

A

is

m e r

of

managers

of£ering
ic

a

publicly

Depositary

a

shareSOfNipponEJectricto:;fld.,
,

tine,inonW000

„

.

J-

i

,

{SSSSS
American

Depositary

share

^presents 25 shares "Of the
stock.-

common

a

year

for the

earlier, adjusted for

of its

distribution and

acquisition of 59,000 shares

own

stock in 1962.
*

diversified group of cor¬

-n

Tokyo,

incorporated in 1899

was

and is the

jargest japanese
of

manu-

telecommunication

equipment and

of the leading

one

producers of electronic equipment,

Paul

investment staff of National Secu-

B.

Woodruff has

joined the

rities & Research Corp.
he

was

Inc.

as

with G. H. Walker &
senior

member

of the

Nippon Electric




60-plus area, it continues to lure

strong
following.
Chrysler,
meanwhile, presents a mixed pic¬
ture for the investor.

churning in the mid 80's,
Chrysler has made a remarkable
ly

recognition from the

*

Now

the

the past

"Peck's

Former¬

year.

Bad

Boy" of the

recommendation

capitalization.

utilities.
the

Dow-Jones

still

are

some 50

indus¬

points from

index

th i

util¬

close

The

of

close to

151

the

Jan.

8

are

now

has

have

short

Although industrials
still

are

quite

former

has

turned

successfully, it

both

buy and sell

earn

They

caboose

as a group

the

from

$7

nearer

share

a

previously estimated $5.
more
importantly, it could

And

eclipse

distance

a

peaks,

earned

than the

twice
of

cause

much this year be¬

as

stronger product line

a

and better dealer

length of the 1961 peak of 152.92.

their

into

run

pushed

to

high.

recovery
a

its

marked

mark

within

Chrysler

cracked recommendations. One large house
The Mon¬ notes that this automaker may

meanwhile

the

that

the profits corner

thin

week

s

135.94

rails

Now

its

was

The

looks

overall

_

organization.

outlook

for

autos

exceedingly, good this year.
has helped to
explain, in

This

general

part, the revival of interest in
healthy. Leading in¬ steels, whose earnings reports for
should give the bulls 1962 as 1 a whole, and more

tone appears

par¬

fuel than the beays.

more

for the steels,

companies

many

Except ticularly the. foUrthrquarter, make
discouraging reading these days.

earnings reports of
for

fourth

the

quarter compare favorably with

Skidding Steels

a

U. S. Steel noted this week that

year ago.

The major question for the in¬

its

last year skidded to $2.56

net

to be from $3.05 in 1961. Its fourthwhen the market will decide to quarter profit slid to 64 cents from

vestment

community

seems

common

shares,

memGroup of

-

More economists

ending Sept. 30,1963.

months

ity

$8.63

a

or

share, against $51,539,357

steels,

as

laggard

a

termed ripe by many
analysts, for a substantial move if
the

are

general

remains

economy

second
the

quarter

seers

event

the

of

1963,

more

of hedge

place this expected

now

in

are

for industrial activ¬ several plus factors this year as
off in the first or opposed to other years. Although

ago

taper

to

second

half

of

the

7

acquire

membership in the New

York

a

James

a

partner

Noyes & Co.,
York

other

Clark

Exchange,

Stock

become

M.

8

in

will

will

and

Hemphill,

Hanover

Street,

City, members of the
Stock

Principal

Exchange

fer

to

that
the

supply

odd-lot

buyers.

invested

cially
Mutual
share

also

Shapiro is engaging in

tent
a

Shapiro & Co.

"

,

of N.

more

there is

slow

espe¬

area

where

snapped

to

common

high,

institutions.

commit

a

working schedule if
has

admitted

that the union will hold down its

demands

to

avoid

"pricing

our¬

selves out of jobs."

Other

signs

ventories

ex¬

steel

strike. Steel union boss

a

better

stock to the

by

inventory to

easier transition to

McDonald

have
them¬

less

con¬

expire.

off later on, and con?-

an

normal

back

months,

mean

worked

exceed

they did 12 to 18 months

more

name

are

recent

will

David

the
an

Restrained ; buying
users

bullish

un¬

to

times

that

steel

include:

among

faces

low

many

in¬

users;

installation of
tion

more oxygen-injec¬
techniques to cut costs;

ago.

improved demand; and most sig¬
prices has nificantly, selective price rises.
possibility that the

The advance in stock

revived

City, under the firm

of

have

in

been

220

Avenue, New York

a

omens.

funds,
sales

selves to

N. Shapiro Opens

still

fact

scheduled

were

sequently

sellers

reserves

those

re¬

other periods when labor

tracts

be

the

There is also much talk that

strongly

Madison

mar¬

cite

Certainly

sign by past

and

changes.

as

in the 680 to

areas

Others

range.

ex-

securities

where the

on

Many technicians continue to
690

On Feb.

-

opinions

ket is headed is not as unanimous.

To Admit Partner

buying is seen in some
it is not expected to exert
strong an influence as 'it has

areas,
in

But

securities business from offices at

V-

the

group,

year.

re¬

Pioneer Fund reports net assets at
Dec,
31
totaled

But

this

Depression Time Table Set Back

„

$48,252,117,

spending strengthens

beginning strong.
to shift their predictions for a
Because many steel issues have
companies in Japan.
Net proceeds from the sale of general business slowdown to a been depressed for a long period,
more distant time.
While many it is felt they have been oversold.
the common stock will be added to
had
set
their
sights
several
The ; steel industry itself * has
general corporate funds and ap-

Nathan
">*;

,

more

Although General Motors is ob¬
viously not as attractive in the

recovery in

deficit

Co.,

*

Bslabllshtd 1930

the

Groups gen¬

belief.

Formerly

search department.

120 Broadway, New York5,N.Y.

for

likely to net

the $3.11 of 1961."

getting

International

subsidiary,

owned

New York

currentreturn. Send today

NATIONAL SECURITIES &

While

chartists.

Standard Electric Corp. owns 15%

New

*

porate stocks selected for

RESEARCH CORPORATION

this year, it is

erally bypassed by the sharp re¬
of the averages are
more

share.

a

a

growing number of

recommendations

dicators

-

31

$63,704,190, equal to $38.23
share, compared with $41.80 a

the capital gains

descriptive literature.

the

day

ttGHipillil, JN OyGS

Feb. 26.

International

share

for Free Prospectus and

But caution is be¬
more pronounced.

highest point since Oct. 14, 1929.

New

Fully
Administered plied to; capital expenditures
balanced fund, and The which are estimated to cost ap-

was

investment in

a

Co., Ltd.

securities

j)ajwa

V

ports

mutual fund which

"hold"

"resist¬

levels

Corp. and The

proximately $16,667,000 during the

a

a

Notice

the

move

higher.

set

are

Meanwhile, than

through its 1961 high.
pirst Boston

The

year

meeting

is

notch

ity

ment Shares. The proposal will be
voted on at the company's annual

SERIES...

highs

"supply")

ginning to be

Witness General Motors' record

GM may find it harder to bring
as much down to the
profit wire

their historic high of 734, the

Capital Growth Fund with Avia-

competition.

STOCK

(and

looking for good

earnings of $5.10

gain.

new

year,

picture

in specific areas can find it.

news

that

Aspects

recovery

analysts

trials

tion-Electronics-Electrical Equip-

of

New

with each

While

Nippon Electric

The

Fund,

the

The

The

with

pro¬

combining

with

Fund.

risks.

assume

sprint

the

tax

Specific Bits of Good News
But investors

the

bers of the Sumitomo

Shares

negligible number of in¬
to

point

in

the

exceptions could be the rails and

shareholders that the number

a

to

share,

is one of the most important

only

seem

120

with

automotive
industry,
few
ob¬
$110,892,262, or $7.88 a share, at
The
chartists
themselves
are
servers
had good words for the
Sept. 30; At the end of 1961, as-"
showing some concern over the company
when
its
stock
was
sets were $126,375,296, or $8.98 a
all-time highs in some areas. Two available under 40.
Its
highest

of

*

its funds be reduced from six to

willing

$119,234,288,

Group Securities has proposed to

three

would

than

more

early

still anyone's guess.

but the pace has slowed percept¬

ibly in recent days compared to
other rapicj advances during .the

covery surge

compared with

especially

hiking dividend

are

this

A

that's

That

$g.47 a:fshare,

[, <"
still moving ahead

race.

are

corporations
payouts

Report

And

vestors

Net asset value of United Corp. on
Dec. 31 amounted to
or

dis¬

last stages of

better quality issues.

*

velopment leadership and high de-

Tk

*

.

there

#

it is noted for its research and de-

petition for the investor's dollar.
because

fiscal

close of the

*

anything that has £acturer

investment company incorporated
in Michigan.

Depression

negligible

"

looks

long

rest before starting a new ad¬ 38 cents in the September period
fee ofi technical compete^ in
Japan. Nippon Electric, in addition vance. Doubt is growing that a and 76 cents in 1961's final.
Broad Street Investing Corp. has to having a historical relationship reaction will be
of
substantial
Armco reported similar declines.
acquired the assets of Merrill- with International Telephone & proportions.
Further evidence of Most other major steel firms are
Worth Corp., a $3,195,000 private Telegraph
Corp., whose wholly Washington's plans for expanded expected to follow suit.

Gov¬

competition.
Great

exhausting

Averages

a

(

fact of

a

less

against

million at the

than $373
than $332

more

Nippon Electric, headquartered

lne runds

efforts have

Still, it is

million,

$16.75;per

process, they will
measure of competition

fi*1

the

air-conditioning

economic life that only the

there

finally

the

successful

been crowned with competition as

During

In

that wiU dwarf

but

it's bound to

weaponry,

jar to find that
as

lesser

a

fast-changing world.

attract

missionary work, whether it's in

well

And

going to offer kindred

were

services.

ex¬

firms,

syndicators

contmue

can

And,

competition, at that.

insurance

At Jan.

meeting in Chicago.

they totaled

_.

without competition

on

15

With, $100 billion of assets
•
0 .company's
favored figure of
their_ friends.

fundmen, considering the amazing

severe

trained

tart? yet wdl become the Busirilss

business, could

the

since

*Maintauun^i^h'StandMds?vffie jgj]^re:^ j;jlcj1 American Depositary

business of variable annuities.

—and

of

the. Pitfalls and .opportunities im

its years-long effort to enter the

pect to go

women

selling

also strive for

ranks with keen

country, is not likely to abandon

of the

and

the

moonlighting.

as

can

they,

largest insurance company in the

success

men

make

full-time

a

job

they

second

Pru,

the

/ -

by attracting

cost to the customer. And

that way. However, such self-con¬

mature,

increased

is

record

people who would not look upon

a num¬

fund

would

who

annuity

regarded the SEC finding in just

or

own

this nation

better.

even

This they can do

industry,

sales by giant insurance

color

their

-

Their

society.

to make it

victory

a

an

in the

Technical

good, But it should be their task

which apparently sees potent new

tably

tending

by filling a pressing need: profes-

According to

Not

with

and

sional investment guidance for an

port:, "The

ber

dollar

investor's

the

role in the eponomy of

Company Act.

for

for

this

registering

runner

*

year.

under the old Investment

without

r

#

tance

market

like

more

started in October.

Television-Electronics

of

have

them-

concern

garden.. They have assumed a vital

order

an

challenge

;

fundmen

more

Insur¬

sell such annuities

freeing it to

the

from

selves less with Others who would

The

SEC rejected an application from

Prudential

than

without.

into the business of variable

Newark-based

*

stock

and

ance"

nuai

about through the rot within,

rather

that wants to

trols of that Federal agency.

Assets
punfl

in sight—the decline will

now

come

any

annuities must submit to the

Fibre-

Owens-Corning
-

realtors—or to some other medium

prompted by the ruling, in effect,
Commission

Canada,

glas and J. C. Penney,

to lose their

are

Share,

&

Bond

Ford Motor, Imperial Tobacco' of

measure

sizable community across

the funds

Ameri-

Photocopy Equipment, Armco

can

Steel,1 Electric

land.

If

it

current

more

pre-eminence in the investment en(j 0f the fiscal year on Oct. 31,*
most
field
to
bankers,
insurors
°r shareholders were told at the an-

territory east of the Hudson.,
The

no

be

now;

in every

much

so

time

opportunity, there
investment clubs

their

to

up

would

cordial.

than

is

At the same
eliminated American

Broadcasting-Paromount,

that if the pioneers

supposes

Gypsum.

Bestwall

abundance of investment mediums

he

that

consumption,

fund field
measured
by the

vitality

The

the

conservative institutions

looking to
bonds

for

a

are

greater extent toward
better

yields.

Prospering Utilities
Utilities

continue

to

attract

Few much attention. Demand and

earn-

Volume

Number 6234

197

.

.

.

The Commercial and Financial Chronicle
(477)

improving, and

ings are

continue
and short-range

long-

Electric

utilities,

are

On

prospects.

Offering Bonds

particular,

in

A Na¬

plant and equipment..

new

shows

survey

companies expect
for the

Rails,

the

managed

group

strong group,, also indicates higher
outlays are in the offing.
More' Manhattan'" Bank,'
realistic

depreciation

guidelines

nounced by

internally generated cash flow writing

and

should provide a large backlog of
funds for new
Railroads

currently
higher

substantially
the

and

1962

December

Northern

Pacific

Santa

"an¬ Pierce}- Fenner

was

porated;

&

veen

isl

Co.

LONG

ISLAND

Astoria

a

Officers

Jerome

Monte,

Di

e

t

i

r o

election

W.

A

against

($2.65

gan

REPORT

Co.,

Secretary;

Major

and Braun,

Bosworth

&

COPPER

.

ex¬

ceptions in the profits picture are
York Central (loss of $3.8

loss),

Chicago, Milwaukee (profit;
of 3 cents against $1.29 profit in
and

'61).
'

[The views expressed in this article
do

necessarily at

not

cide

with

They

those

of the "Chronicle."

presented

are

time coin¬

any

as

author only.]

those of the
"-'V

■'

Walston & Co.

Elects V.-P.
SAN FRANCISCO,

Calif.--Daniel

J. Cullen of Walston &

Company, "

Inc., 265 Montgomery Street, has
elected

been

Executive

Vice-

President of

nation¬

the

invest-

wide

•

m e n

t

it

firm,

was

an¬

nounced

by

V. C. Walston,

President.
The

securi-

e s

t i

firm,

which

was

founded

in

Francisco,

-•

-

FINGERPRINT ,OF

A

,

San

has

now

PURE COPPER,

€URFACE,rCHANGES OCCUR

'

93

'

^

THE

''""l

'

.

IN
"

•>-

.

THERMODYNAMICS

OF

>•-. -

SHOWING THE

THE'AREAS

-.A

*

THE

>■'

OF
,

OXIDATION

•

ELECTRON

LIGHT AND

,r j' /■>]' y>
OF

EMISSION

DARK.
\

,

•

THE

COPPER.

A
vy

PATTERN

STUDY

OF

FROM; CRYSTAL

THESE

CHANGES

~

NUMBERS

%

IDENTIFY

I

THE

offices from

,

,

FACES.

IS
>

WHEN

PROVIDING
-

FACES

CRYSTAL

IN

REACHES THIS

OXYGEN

NEW
\

*:

INFORMATION

\

y

~

SCIENTIFIC

ABOUTy

*

•,

.it

>.•,»_»

N-

SHORTHAND.

'

'

Daniel

coast-to-coast

and

Cullen

'

'

*

*

'

1

*

v

'

'

'

«

'/

^

;

1

overseas.

At the same
of

J.

'

r

Walston's

735 Wilshire

time, Bert R. Jones

Angeles

Los

Blvd.,

Can you see

office,

elected

was

a

stainless

copper

in this picture?

Senior Vice-President.

The

answer

where in

Paine, Webber

only

To Admit Partner

a

clue. What you

a

taken by

~f

?

of

Harold

Feb.

O.

1,

Carl

Anderson

with

a

'/ ;

'

-•

International Copper Research
Association.

This international

organization is supported by the
copper

mining industry, and Ana¬

conda is

charter member.

a

Under the

leadership of Dr.

Moore, projects

are

conducted by laboratories of uni¬

versities, industrial companies, and

small amount of oxygen hit

a

ture, and studies

George

This

basic

is

the changes.
research.

It is

research

foundations

the

world,

throughout

wherever

priate talents for

copper

appro¬

research

found. Work is in progress at

are
an

free

such

widely separated places

tories of The Anaconda

and

Anaconda

mbre

as

the

stepped-up research and develop¬
ment, mainly on more immediate

problems.
We start with customers' needs

and

the

ment

and

programs

cations.
are

Norris and Elizabeth J.

Schryver

haves

limited partners in Weil & Doyle,
30 Broad Street, New York
City, '«
members of

the

New

York

Exchange, and the firm
be

changed

Muller.
ners

is

All

to y Weil,

Stock

name

will

v

'.v*

&

it does. But the

may

in Muller &

copper

metals that will not tarnish

superior coatings for

formerly part¬
The

Schryver which

being dissolved.




knowl¬

help other scientists develop

wire to be
were

new

edge Professor Hoenig uncovers

—or.

Doyle

as

be¬

copper*

used in space vehicles.

copper-surface study is only

and the

University of Florence in

Italy, the University of Stockholm
in

more

are

creating

improved products,

Battelle Memorial Institute and the

copper

and

nology. The research and develop¬

Franklin Institute in this country,

occurs—why

new

requirements of our

reaction

Lee

re¬

long-range objectives, Ana¬

attempt to find out how a particular

D.

Brass

search program is working on the

general

and

American

Company. While the industry

W, ,E. Schortemeier will become
partners

Company,

Anaconda Wire & Cable Company,

conda people are pursuing greatly

clean copper surface under a

a

lets

Muller,

and

major research

being conducted by the

Charles H.

the surface. He takes another pic¬

F.

in ten

scores

programs

field-emission

high vacuum. Professor Hoenig then

Weil, Doyle & Muller
As

Arizona

It

,,J

;

.

times.

of

one

This pattern shows the structure
of

P"

about

microscope.

ship in the firm.
*i'

magnified

a

University

Lloyd W. Mason, Jr. to partner¬
.!

above is

see

surface at the tip of

was

of

Exchange and other leading ex¬
changes, on Feb. 7 will admit

"

a

whisker,

200,000

members of the New York Stock

'

some¬

Professor Hoenig at the

Paine, Webber, Jackson & Curtis,
Broad Street, New York City,

25

'•

could be hidden

pattern like this—maybe

picture of

copper

-X".

a

Anaconda—and

moving ahead

The Anaconda
way,

new

on a

new

appli

copper—

broad front.

Company, 25 Broad¬

New York 4, N.Y.

•

6315B

Sweden, and the University of

Ghent in Belgium.
Research

and

Development at

Anaconda. The future of copper

also

is

being blueprinted in the labora¬

AnacondA

N.

Co.,

New

million against $12.5 million

y

Kenower,

MacArthur

against

against $7.48).

fol¬

Terry

Director.

ON

an¬

the

Chamberliri, First of Michi¬
Corp., Treasurer; Raymond J.

Stauder, Kenower,

Company; Harris Trust' Treasurer.

PROGRESS

has

of

Kelly,

($3.21

($3.39

Fe

t,

MacArthur & Co., President; Don¬

Ernest

Secretary

D

men

bond

ald F.

Raimondo, President, and Jo¬

seph

in

lowing officers for 1963:

securities

are

Basis

—

Avenue to engage in

a

The

—

.

..

1 municipal

the

the

been

Union

Bear, Stearns & Co.; The North¬
Trust

Y.

has

formed with offices -at 21-06 30th

Di

ern

N.

Inc.

in

business

Incor¬

business.

bid of 100.02399% for

3%, 2.80%, and 2.70%,

CITY,

Investors

Mich.

.

association of young

an

nounced

Astoria Investors

Securities & Co.; Goldman, Sachs

the

awarded

was

Club,

vU active

;-iki!'',i-v

& Co.

group.

DETROIT,

(Incorporated).

Dillon,

Eastman

Elects Officers

Co. Inc.; John Nu-

Smith

&

'

Basis ClubY.v

&

Co.; Glore, Forgan & Co.; B. J.

Van Ingen &

include:

group

&

Thalmann

quarter

$2.00); and Kansas City Southern
($9.31

&

under¬

Company; Lehman Brothers;
Blyth & Co:, Inc.; Lazard ITreres

the managing under¬

group
on

the

Trust

coupons of

for

of

Ladenburg,

against $2.52 in 1961);

year

$2.72);

bonds

reporting

profits

include Seaboard Air Line
last

The

equipment.

it '

-

& Co.; Barr Brothers & Co.; R. W.
Chase Pressprich & Co.; Merrill Lynch,

The

by

Savings Bank; Hornblower

Co.; Wertheim & Co.; Hallgarten

Company; Manufacturers Hanover

purpose

made Jan. 29 by an underwriting

consistently

the

Chemical Bank New York Trust

bonds, due 1964 through 1993, was

other

public

to

members

v writing

$108,200,000

City of New York various

utilities.

gas

of

offering

the

priced

are

Other

■-::'yyy..y:.• :;y-y;

Public

spend 55%

to

opposed to a 2 % increase

as

more

V

electric

the

that

to

yield from
1.65% in 1964 out to 3.50% in 1993.

,

Of New York City

tional Industrial Conference Board

and

Weeks;

offering

bonds

:

annual interest cost of

an

2.93461%.

stepping Up their spending for

are

.

setting

Chase Bank Group

both

for

to

expected

21

&

Nulf,
Social

22

The Commercial and Financial Chronicle

I(478>

told him I was too
his stocks with
at this time. He telephoned

polite but I

SECURITY SALESMAN'S

him

for

asked

CORNER

quotes,

discouraged

nostalgic

itinerant

reminiseing of

wayfarer

nothing better to

=

an

has

who

Northern Indiana Public Service Company

walk

do: than,

OWEN ELY

BY

.

time to sit and listen to

the

the

*

.

t

him. No busy broker

has

Eliminate Time Wasting Situations

politely

but I

Thursday, January 31,1963

.

.

PUBLIC UTILITY

;

this and 7

times after

several

me

BY JOHN DUTTON

discuss

to

busy

.

7

•

from broker to broker and exhibit

lessons

the

of

One

security

a

salesman must eventually learn is
to

that he

his time and energy

conserve

so

put it to the most

can

Selling securities
involves
planning,
study, and
familiarizing yourself with the in¬
vestment requirements of clients.

productive

use.

must

Attention

be

directed to

settlement

that might end. up in a

problem.

fact, she is so ir¬
that she might not

In

responsible

she thought

the stock

have

even

she owned, or

the correct amount.
customer" is a good

"Know your

rule to follow.
'

1

}.„7

.

;.

Another One

Northern

his financial

formerly "the- most important Indiana's industrial load. Inland
over-counter utility stock, was re- Steel may also build in the area 7

'

~

a

situation; his .losses
and his estate as a

gains,

whole. The actual time

available

has

to

salesman

a

devote

to

con¬

mortgage

transactions,

securities,

called

could sell

whom

for me,

listed

tial clients and

said fine. "I want you

day,

regular customers

limited

often

is

less. After

or

a

established

been

hours

five

to

a

clientele has

most

the

of

stock.

quoted

I

business," he kindly informed me.
"Last

JC7

has

sion,

preliminary discus¬

sometimes

and

conversation.

extraneous

whose

"But

whose

building

in

and

is it registered?" He

it

his nephew's

who

then told

business

may

his

be required to spend several hours

day waiting to

a

time

used

travel.

for

more

than

week

that

a

be

can

to

a

most

(unless Satur¬

work

a

isn't

hours

20

available

also

are

in

or

There

meagre

is

security salesmen,
days

people

see

was

allocated

to

that

day)

actual sales

discussions.

primary reason why

salesman, after he has begun to

a

build his

name

had

signed the certificate.

another

clientele, must eliminate

party who

back of the

certificate

the

anteed,

said

He

that

what
him.

He

^

u

bonds

to the erouiD Jan

23

98.15%

*

it

a

balance, after

claimed

the

by

The

before

had been
I
thought

I .decided

clients, and situations, satisfied.
they become troublesome.' about it,

Time is not

greatest
with

only money—it is the

asset

when

knowledge

that

and

salesman

a

combined

experience,

can

To allow

it is

unsound business

anyone

livery,

of

.to 7 take ;• no
unsatisfactory de¬

an

snafu between the uncle,

a

the nephew who

and

out of

was

and

be

*

—

.—

rre-

tirement purposes at 100-%. 77
The

Bartlesville.

practice.

The other

day I received

phone call from
several

me

small

She

year

ago.

very

a

:of

alert,

is

and

tele¬

this.

gave

meant

about

a

wealthy,

very

completely

of the rules and

aware

He 7'

a

un¬

regulations

have

the

business,

the easy way?
tell

to

them
me.

direct

to

there?"

took me about four weeks

call

Benson

and

he'll

stock

to ob¬

to

powers

go

along with the unendorsed certifi¬
cates she sent

The

1:

to me.

phone call

made from

was

my

cffice. She gaily asked' me for the
market

in

certain stock

a

gave

her

said,

"Sell

the

price.

1Q0>

for

girls." I replied

and

Then

each

I

she

of

the

that I would do

was

a

the

handles

"Fine,"

he

business

this

over

"I'll

replied,

(do you know him)

call you,"

"Of

for

the order, we

me

course

I

them, and then

Dick

bank order, takes this, busi¬

out

ness

whatever

yours,

or

like it." A bank delivery,

way you
a

nephew

your

have the bank follow his

can

instructions,
and

sell it

can

the

of

hands of

well

a

I

then

psked,

"Where

is

•

the stock?" She said, "In my bank
box."
I
asked
her
when
she

mechanics

will be

completed

possible.

/.

thought she could' deliver it and
she told

not until she returned

me

several weeks later.
,

Just

the

as

I

suspected, she had not

bility to deliver those shares
settlement

date.

Her

daughters would have to be

tacted,

signed,

powers

on

two
con¬

the

and

whole

thing would have ended

in

mess

a

with

department.

the

Meanwhile,

saved himself

a.

up

Cashier's

Button

headache by tell¬

ing the little lady to wait until she
came

home

and

then

she

bring in the stock and
sell

it.

the

interval,

If

it

that there

goes

I

was

do about it. She
>

to

Klecka With




a

while.

them

his

and

his

and
he

Soon

tattered
from

labored

her

hassle

out

me

he
the

experienced
see

those

Klecka

E.

Eppler,

Guerin

since

Stock

presidency*
talk.
every

He

He. just

wanted

to

had

probably been in
brokerage office in town.

Sensing

the

situation,

I

ef.1?ate!
follows:

as

Exchange,

as

account

an

was

2,460,000

40

3,104,000

26

-

Commerce officials.

and

Director of the company.

Mr.

;-

Klecka,-,

resentative " of
Stock

the

;

^.

registered

a

rep-

The

at

e07pared

Exchange, has been associ-

ated with the investment banking

business in Dallas since 1948.

and

a

of

-

revenues

are

good rate, being es-

<R164

million

for

1963

with $59 million in 1952

-^.an- average

annual growth rate

He

formerly .associated
'

'

;

i

•,

tairi this rate of increase.

•

Cincinnati,

i

-

the

•

Bond

•

,.

the^cyclical nature of
st^mdustoy, which fwmshes

.

,

trie load, steel revenues are sta-

,

Dealers

Group

day, May

l7,

w

VZr^
twj,^d^iin^Tn „.S
3i7
,'7777

The

reception

Thursday
City

l

will

Club.

Friday

1963

at

for their an-

Pf'^eel m 1962, total industrial
.revenues increased 11%

IMy.
and

be

The

at

all

dinner
the

day

Losantiville

«

Queen

Country

Qf this reduction.
tial

in
j

the, service

which

now

area.

increase

U. S. Steel,

purchases 150,000 kw.

of power from

this

the

to

company,

165,000

kw.

Resident.

* ?

hv

now

&

N.

Y.—Becker,

will

74%

hv

1965

iQfifi

^

^

wnme

th^r^L^n nP^he
bSnet ?hus seemt ured
1

Growth

in

as

seems assured,
,
The company has nd special regulatory proWems: As of June 30,
lgg2

on

it

was

earning

an

;

about 6.3%

net plant-account, a slightly

Jte

lower

than

years.

the

average

•

Return on electric

little higheh than

a

:

of

on gas,

*

basisy :as

a number of other utili-'
have been doing,
5 •
The company plans to spend
,

about $35 million for construction
in 1963, and internal generation of

cask , is estimated^ at around $15
»'Uwn Vhile it was reported

earlier that the company might do .'

financing this year, it is'
now understood that cash require^enis wiii he met with a $25 milU,on bond !ssue' ,The
P ans to maintain its equity ratio
-,

-

Regarding current bookkeeping,

.

the 3% investment credit is esU-®
mated at $550,000 for 1962 but win'
probably

be

lower

in

1963

'

and

1964. The company favors normal-

"-edit

but

the

State

Commission has not yet reached
a decislon' Tax savin«s from the
use of the depreciation guidelines
could add some $500,000-$600,000

'

,

-

to cash
The
dH
for 1963 is-estimated at $800,000.
The company does not use flow 7
throush for
^vings resulting

use of liberalized d®Pre"
'

f
_

'

*

.

Fllji Bank Appoints

by

Nagler June 1, and to 180,009 by Decern-

Weissman, Inc., has been formed ber 1; it also has

,

only 54% but

reach

The Fuji Bank Ltd. has announced
that Shozo Saji will succeed
as
successor
to
the investment crease its requirements to 250,000 Rikuro Takahashi as their New
business : of
Future
Investing, kw.; Bethleheni Steel recently an- York Agent.
The bank's New
Corporation, 414 East Tremont nounced. plans to construct a large York office is located at 1 Chase
Avenue.
7
new plant, which should add some
Manhattan Plaza.
A
\
BRONX,

;

7

heating saturation in the

requirements by the steel industry

M

Now Becker, Nagler

a-noorS

_1t_

t ° TJ

outing,

-

diana expects to- retain; about two-

the

of

Cincinnati, have set the dates of
Thursday, May 16, 1963 and Frinual Field

.

.'some 30S of the company's elec-

.

Pa^kandle Eastern Pipe Line. Nat-

111A range of 34-37%.

.

,

TheMu-

CINCINNNATI, Ohio

nicipal

.

Despite

.-

,

long-term contracts with Midwest- .
Gas Transmission, Natural Gas, v
Eipenne of America, Peoples Gulf
Coast Natural Gas Pipeline - and,.

possible that the company
may decide to reduce all-electric
heating rates on ; a promotional■7;;

8% % compounded, with the
with gain Ior 1963 estimated at 8%.
RaUscher, Pierce & Co.; Inc.'
Future years are expected to mainwas

ho

and it is

health

Department

.

company's

grbwing at

York

New

niant linn

plant is

administrators,

cational,

authorities

Vice-President

about five years a 400,000-500,0.00

earlier

22%

executive,^ according to James C.

idea of

Mr. Kennedy has of resigning the

.

area

1,756,000

McCormick,

the

of his holdings than

are

1960

71980—.—

security

no more

,o«o

&

that this man

stocks

Lo-

TUrner, Inc., Fidelity Union- 1 These estimates were made by
Tower, members of the New Yorkf city planning organizations, edu-

a

book

worn

each page from

over

held

pulled

a

He showed

salesman could
had

talked

Painstakingly

pocket.

Any

readily

I

we

much

holdings.

book.

the

ex-

1,415,000

1970

Texas—Joe

has ' joined

*

kw. plant wm be completed, which may eliminate the need for power
purchases. \
' * - Natural gas is. purchased under

electricity

seAice'

the

a",d 1989, ' are

1970 and

;

about $600,000, and Northern In-

1950
-

.

little

desk

my

quotations.

some

supplied

He had

trade than

in

get

to

up

of

^

xxrac

^nd fn

1962

decreased its annual charges by

.

with

served

are

unit

lr\x/

ural Gas Pipe Lme Co, recently

population

a

flOO

heating,

'.

7

1

A

resi-

46%

are

industrial

Pnr...ia«nn

Eppler, Guerin

Bond Dealers

day and asked if he could

any

said, "O.K."

involved

other

changing

nothing she could

a

walked

man

and miscellane-

% Increase

as

-;

■

nice looking

year one.

to

efficiently

You have probably also had this

in

up

as

Too Busy

would

or

explained

Better to lose such

become

we

down

could

the transaction

-•

experience. A

slightest idea of her responsi¬

the

of

con-

revenues,

r°PwaMqn of the s rvire areg

-

for

meaning amateur, and insures that
the

.

Porte, Goshen, Valparaiso and Ho-

>
•

7

,afeJ?\Jn .December, JL!962, and in

iservice area is a compact

„

but

so

*

01

DALLAS,

know him," said I. "Let the bank

give

city about 1500 miles from

a

to

Call the bank and

Who

,

securities for her two daughters it

signed

but it

sales

He

me

potential hornet's nest.

regarding the purchase and sale of

tain

wanted

and

77 So I said, "Jack, why not do this

securities. The last time I sold

some

uninformed.

was

well

electric

,

•

-

.

now ^generates

^"'ratf £7**;®°®.

cCeding 1,750,000. Gary, Hammond,
service area is
East Chicago,^Michigan City, La7
exnected tn

simple

a

thing. He couldn't understand all

lady who
orders

was

trom

Oklahoma, including the gansport. Peru, and Wabash
TUlsa,
Lawton
and . ser ved with gas only

and all the ramifications involved.

it

from

MishawakL,

western

problem, the payment to the niece,
uncle

from

estimated population of 760,000 kv. and gas, while Fort
Wayne, South
49 eountte in eastern and south- Bend,>
Elkhart,

to waste

the

42%

supplies electricity to- an bart

cities

for Trouble

rural

:

including 7 space

territory with

of 606 So. Main,

company

Tulsa,

town; the bank; the new account

To

Don't Ask

-

and

•

•

an

dential

of

to electric

Gas sales

6%.

ous

they>u

—

foaidebt

oaiance

heavily industri-

a

commercial 15%

v.

,

redeemable

rather than build their own

nnnfrant

revenues

component

tribute 34%

com-

and after Jam 1, 1964,

on

power

tional. purchases available under,

.V-

is relatively high at 45%

revenues

able at general redemption prices

will

It serves

industrial

bonds will be redeem-

new

his

in

use

career.

chances

more

-

The

;

alized area (iron and steel, automobiles and .machinery1 are im-*
beVportant ' products) 7 So that the

could send ranging frra

bank

problem

the

to

A

the ^balance

and

ifResidential and

remainder,

the

be added

:

I

certain amount

a

ahd

H,

will

pany's general funds.

it to

check to the nephew's sister for

the

Series

than half its

Sas-

first mortgage bonds,

know

if I

me

-

*

-

electricity ana tne

applied to the redemption of $9,-

any,

the telephone.

over

"

Proceeds from the sale will

didn't

he

-

$1.09

,
:'V

elpctricitv

its bid of

on

from

The company derives slightly

more

v

J

share in-

per

in generators.
$1.53in, 1957, but dropped 77,'The. company

steadily

.

lgg3

awarded

were

guar¬

began to get restless;

could feel

1950f to

,

to yield annroximatelv

7^ tf"
4.211%. The

was

I explained

was.

..

to S1'39 in the following year, about 80% of its power require^; A
sinee when there has been a good ments and buys 175,000 kw. from
uptrend to the estimated $2.15 for Commonwealth Edison, with addi- '

PnhlirCpr

Cpe ot Oklahoma A

860,000 5-%

7 I asked if the signature ori

Then he asked

.

This is the

the

of

r

ofiering $10,000,000 Public Ser-

.

stock, but it was stiU registered in

me

smnnnnftfi

i* mffprlncf

at 98.727%

it,

salesman

The

up

7

l^ds

v

is

;

•

replied,

I

is

stock

name

7 7^

firsts
5,000
mortgage bonds, due Jan. 1, 1993
to get this

sold

business.",: "Excellent,"

often involves

creased

'

-

loan

a

the telephone, but even this

over

are

'"cdmpany's earnings

^Rnfl H ^ OffPVPf]

VTGG

nephew

to Northern

more

or

rate; is $1.32, yielding a little under steel, such as use of the oxygen 77
-3%;. With estimated earnings Of process, should create larger de- 7
pt/I VlLtJ yvf• ^$2.05 for 1962 and $2.15 for 1963, mands for power. «As this process * 7
7vT i i ''
*
~7jI the price-earnings ratio would be does not use waste steam,the steel 77
UKianOma 'A\;7" in a range of 21-2 times. The companies are expected 7to7buy; 7

where

ray

kw.

75,000

• V 7^
PnWlP QnTnnno'-C^fX

bank

the

week

Serv-

,

and he Hhlsev Stuart & Co Inc Chicago
to have the
an underwritine^roTO whkh

shares and I want you

discussions

s

someone

not

I

Public

the

tell

can

it

conducted

actual

has

he

as

he

1,000 shares of an un¬

tacting and working with poten¬

but

asked if

and

Indiana

to Cgiitly listed on the New York although no definite plans have
story. As stock Exchange where it has been yet been announced. Moreover,
IVe got other things to do. selling around 45%. The dividend changes in methods of making ;!

long

as

review of the customer's holdings,, [An old client who1 is familiar
with all kinds of real estate" and
his income tax
and

apd wp'rdly

,

endowments—and he will do this

J .V, 7

.

acumen

7

option to in-

.

*

V

Volume

Number 6234

197

.

The Commercial and Financial Chronicle

.

.

reasonable.. One must not forget also the trend of deposit growth

—

with

which favors, banks in

BANK :AND INSURANCE
This Week

tinue to be

Bank Stocks

-—meaning

1

1963

continuation

there is

an

notes in

over

population growth.

At

time

one

dilution through stock sales.

no

Correction

'

^

'

c

Ehney A. Camp, Jr., Executive Vice-President, of the Liberty
Life Insurance < Co., Birmingham, Ala,, writes us as
follows:
f
j
",
|
*
.
,
,
.
„

the immediate future.

under

Although

.

article

an

entitled

issue dated Dec. 27,

your

'Bank

Insurance

and

Stocks'

future, interest rates here

likely to be anything but
competitive from the standpoint 6f

tion

for the time being indicates
change in the policies that have

no

been in force in 1962.

,

„

o'On page i 13 of Section 1 of

i'

;

con¬

all free world
monetary centers,
especially England. This competi¬

Liberty. National Life Insurance Company

on

likely

problem in the fore¬

a

not

are

1 *'

23

and will most

us

seeable

V

the level of 1939 and the small but constant erosion of these hold¬
a

of

National

(®fe^

The recent gold holdings of the Federal Reserve have now reached

ings implies

areas

these banks could not
supply sufficient capital to keep up with de¬
posit growth. .At the present, the capital ratio is generally healthy

„

BANK EARNINGS FOR

(479)

^V/-vt

?;

1962

appears

•-/,

//AO'S

-

Kantrow, Robbins

;i

>

our

adequate; gold supply/;to ^uppo^tithe *Fedorai iReserve
V ^OIh^ oividend information reIative tO" our
banking system; there is an .awareness of the impor- ; > (lion is incorrect.

compahy. Thisl ihforma-

i

A-:-

^

-

"

""

'•

1

1

'

tance of not letting these reserves fall t© a much lower, level.

from

less foreign

rates.

With

aid,

corrective

one

is

measure

,/x(

Aside

higher, interest

large deficit—tor be financed, through vthd ;bankmg
system—-along with the need for: keeping rates air the cuTOnt lev¬
els, short-term bond yields should risp. The heavy volume of mu¬

sharev

per

J

a

"You show the old rate of dividend to be 35 cents
per share

whereas, in fact, the annual dividend paid in 1962

*

"You show the

The new
dividend' rate-has-mot been .determined and. will not be set until
the annual meeting of-the Boardof Directors
ptf

in the municipal area, therefore, should provide a higher return
as the year progresses.
f
;,

wish to correct any erroneous impressions which
the figures you published.'*

"We

to the banks

f

In addition to the

aforementioned

,

"sustained

for

reasons

giving

are

have tended

Also^the free

at lower levels

run

over

full- effect of this increase has been felt already,

-

BY JOHN T.

•

.

:

analyst and the bank comptroller

sages

This may be attributed to the

President,, the
and capital markets con-

to give evidence of

tinue

icies

the

of

remain

time

these

on

along the lines which have

partially to their inability to reach the cbnsumer^jpartieu-

is due

.

and

t*

"

I

it

Net Operating Earnings

0

K

'-yy

Name of Bask'

<0J.

^

"

'

in

$y

'v'.v;

- - -

,

5.2%*

—

i.

1961

Chase Manhattan
First National

1.8

City, New York

1.4

5.72

5.4

3.55

Chemical New York Trust—i

2.3

5.18

Morgan Guaranty

2.1

6.53
3.87

Security Firsts Los AngelesContinental Illinois
(-i.

0.8
0.2

v.

—

First National, Chicago.

7.2

—

United California, Los Angeles

1.9

—

Irving Trust.

1.0

National Bank, Detroit.
Mellon National B. & T.._.

Crocker-Anglo.

-

Cleveland Trust...—'

—14.1

.

First Penn. B. & T......

28.34

stAy&

'

-

Philadelphia National—

.

,1.98
2.88

3:72

3.63

,

a

which

-

fixed

bearing

;

petitive
in

no

f which

bidding

small

was

bearing
There; is-

no

00^Telex

Portfolio

&

Bankers

to

KENYA

•

UGANDA

INDIA

Branches

.

•

PAKIST AN

ADEN

•

Income

no

small

Available

Request

on

•

ZANZIBAR

Laird. Bissell €$ Meeds

•

CfY« ON

5 OMALIA

•

Members

m
•

BURMA

EAST AFRICA

AND THE HHODfcSIAS




New

York

American

Stock
Slock

price ( was

'"-K

Telephone:
Bell

(

-

BArclay

Teletype

money
.

or

dpubt. but; what the
namely

the

or

to

*

be

found

business;

in

the

Professional

in

engage

securities

a

;(:('/':-(;

■ •

4

Form Bueermann & Co.
•-

PORTLAND,

Ore.—Robeft

Gii

Bueermann & Company has beenformed with offices at 811

Sixth

west

Avenue

to

securities business.

Robert
Lila

M.

South¬

in

engage

Officers

are

C. Bueermann, President;

Boiliger,

dent, and Ralph

tary-?Treasurer.

Mr.

Seere-v

Bueermann'

formerly with Harris Upham
Company.

was

&

,

Theodore F.

Poliskin

securities

a

fices

at

City,

50

.

is engaging

business

from

of¬

Broadway, New York

firm

the

under

Poliskin and Co.

of

name

Mr. Poliskin

was

formerly with General Economics
Securities.

\

,,

than

do

Specialists in

of the

at

this

U. S. GOVERNMENT

tax-ex¬

and

selected corporate

equipment

in

FEDERAL AGENCY
SECURITIES

intermediate

the

of th<* Government market,
it would not be surprising to many
money and capital market specialarea

Certificate? of

due

was

was

basis

Deposit

this section of the market for not

to the opinions

also

on

with

a

bonds,

since

above

registered

raising bond

a

the

as

was

the

Because

very

non-Fed¬

being

term type

good

reason

issue

get

new

digested

fitted into its place in the cap¬

more

to

attracted

investors

this

are

middle-

of security, there is no

why it cannot be used to

Government

obligations

The

N." Y.

was

given to

the long-term bond market by
-

addition,

as

re¬

was

INCORPORATED

the attraction grows
20 BROAD STREET

for such

obligations

develop with greater size

a

better mar¬
..v;:./

and breadth.

the

cent 4s

6c Co.

the hands of the ultimate investor.
In

NEW YORK

impetus that

very successful

7-3500

Aubrey G. Lanston

into

offering of the

reflected in the favor-

(^r

☆

:;-'^:;-(i'(

☆

CHICAGO

international

bal¬

payments deficit is

still

Because
ance

of

the

☆

:

•

Vice-Presi¬

Bueermann,

1988-1993, by ists if the Treasury -were to use

part

''

have

Webster

plan that

have

in#,the

mainly

ital market.

212 571-U70

Specialists in Bank Stocks

a

ket will

Exchange
Exchange

120 BROADWAY. NEW YORK 5.

A.

offices

Because of the interest which is
to

•

'

lllll

distant obliga¬

field.

for the interest

bonds, namely corporate and

tax-exempt

the Government in

Members

<,.:■(r',

of

term

commit¬

maturities

appear

investors

bonds,

responsible

was

way

sized; premium

1

ADEN

Sources

Nos. 22368-9
Bulletin

-

eral

Breakdown Government Bond

LONDON

'

making purchases of

empt issues

evident in fixed income
during January.

competitive
MINERVA

tional

issues

yield 4%. It

26 BISHOPSGATE, LONDON, E,C2

Telegraphic Address

more

are

or

1 '-V.

'/*

(

ordy new money raising but also
that the best credit in the capitab for regular refunding as well as
advance" refunding operations.
market was priced right at 100 to
"
+,Wo

CITY

STOCKS

-

time greater attraction to institu¬

cessful flotation of $250,000,000 of

in

BANK

further

that the middle

evident that the very suc¬

4% due February

NEW YORK

with

in

intermediate

make

to

.

Poliskin Forms Co.

Issues

has been getting considerable

Treasury

—r, ^

Government bonds .through com-

:

Daniel

tion that is needed. It is indicated

.income minded investors

Head Office

the

/ J.

•

gives them the maturity distribu¬

Governmentbonds,

Bank Limited

Treasury

Government market, espe¬

in

' \

'

■

3%%

buying from investors who do not

their

heavy purchases of the long-term

National and Grindlays

area,

posi¬

meet

income

Subscrip¬
The

these securities under

of

3%%

(2)

6.

tions

It is

24.28

2.88

Republic National, Dallas.

cially

institutions

still in

The

ments in the

securities

many«a year,

'5.50

1.95

certificate,

of the hew year were as large if
not larger than they have been in

2.50
•

,.

{

Building, to

a

Highly > Regarded

;

demand

»*

>

5

formed Modern Financial Services

opened Feb. 4

chases

3.91

5.49

for¬

RENO, Nev.—^Eugene A. Helland
and

presently outstanding.

want

4.68

2.49

V

0.2

are

of

obligations during the first month

3.00

,

4.79

0.4
—

Markets

only

is

be

Feb.

on

Intermediate

end soon in spite of re¬

not

.

Fin. Service

This will

or

needs. It is indicated that the pur¬

2.44
>

1964,

will

in

4,34

"

3J/4%

a

15,

tion to make sizable commitments

.3.44

3.65

..........

National, Boston

an

that,

*r

Sale

"

9.88

,

2.97

.

2.3

—

_

First

4.68

Bond

Jaanuary

but individuals

;

5,30

2.49

.

All

v

'

3.43

Trust

V

Treasury

usual

ports

5.80

■

(^3.36

9.80

Bankers

Successful

ing to

3.77

—

(1)

Feb.

close

'( The

6.67

Manufacturers Hanover

for:

and

yield of these

from investible funds may be com¬

5.16

■

billion

exchange offer, with

an

books

Helped

$2.92

'

/5.05

ing

signs of ta¬ ;due

no

un¬

ing given the option of subscrib¬

the

l«)«2

0

was

-

fgod

tion

Earnings

?

$3.08

'

securities

McCourt

;

t

bond due Aug. 15, 1968.

^

-

Bank of America...

strictly

bond
/

Per Share

Earnings

issues shows

obligations." "J ;•

Banks

% Change

y

satisfactory note to the

holders of the maturing issues be¬

strong

as

before

yesterday (Jan. 30), the refunding

together

because

ever

bit of

closed out

were

ward pressure on the

f

Figures for Major Commercial

y-

y 0ryyyy.

y-yy

■

-

•

as

were

The Treasury made known, late

be

sizable

a

instances

pering off, with consequent down¬

.

u

'.<T

ury

The preliminary but arbitrary projections seem
I "
'u, '• ^ \
% |' y j ^ ,* * * '"ij >
' yji

'0 "* $?; \

*

a

*

Announced

been and

taken

factors

two

syndicates

February 15 Refunding Terms

demand for the most liquid Treas¬

;:

Most analysts project .an

average increase
Of 3% .for eastern banks and 7% for West Coast" institutions-on; a
.

it has

„

The money market is

With the outlook for. stable to higher interest rates and no
increase in the rates paid on time "deposits; bank earnings should

per-share basis.

certain

syndicates

derwriters.

tions.

larly in the mortgage field.

be: favorable in 1963.

as

4

the way in which

as

have. Inspired'confidence iti buyers; terms;: (for
;thi| $9,465
of fixed income bearing obliga¬ debt maturing Feb. 15.

expected. This

as

in

these

because: the pol¬

monetary authorities

constructive

The Chicago and New York banks, with?
well,

well

as

more

electrbnic computers and data processing equipment which served
as

Mr.

112 Broad
a

non-Federal

helped. However, it took

|>e^n inv£orce in the past» In ad¬
profitable- consumer business they Conduct;i through State-widei»
dition,t the debt management pro¬
branching; their- foresight in investing in taxi exempts early; and >
gram of the Treasury is also as
deposit growth. Also of importance is 4ha eariybifiStallatioii ^ofoperating costs.

in

engage

Form Modern

outstanding

of the stale

some

con¬

a

the

bonds,

the

structive attitude

able to perform

were

from

.

money

were expected to fare the poorest, with '
declines in earnings ranging from 10 to 15%. As is evident in the

accompanying table, the West Coast banks

of

there wiE be other important mes¬

for lower-

were

Opens

Securities & Co.

able action that took place in some

-

high percentage of time, deposits.

iqwer time deposits, were net able to- do

business.

CHIPPENDALE, JR.

Even though the Congress is in
session and there have been and

.

Naturally; California banks

to reduce

Street, to

GOVERNMENTS

Looking at bank earnings for 1962, it is: interesting to note very
little change overall. In the early months of the past, the general

much better than expected.

J. E. McCourt
has opened offices at

•

a

i

Our Reporter on

^

produced the last foreseeable rise in rates paid by banks and the,

earnings for those banks with

result from

LYNN; Mass.-~Josepb E. McCourt

to lower the rate paid on time or savings deposits, some smaller
banks have done.this in order to increase earnings. Certainly 1963

of the

and Aaron Kantrow.
; '0-\' 'j-0. j T,p; w <'■:,]
^ 7-!'.

*• •'<

may

merly with Eastman Dillon, Union

that any further general upturn in the economy may promote higher interest rate& 'i Although there is no widespread trend

consensus

Feb. ;19i 1963.

this information with the thought you may

you

the past few months,>- It

appears

r

at 225; Broadway;;
City. Partners are J oseph H. Kantrow, Philip Robbins

New York

or

in the bankihgsystem>

reserves

from; offices

reluc-,

no

tance to raising rates in a period of economic prosperity and infla- (.
tion. The current loan figures of reporting member banks-imply a

strong loan demand;

ICantrow; Bobbins &f Kantrow is
erigaging in a securities business.

rate to be 44 cents per share.

new

nicipal and corporate financing over; the coming months ishould^
also help maintainor increase interest rates. Additional investment

higher rates, the Federal Reserve Board has indicated

39 cents

was

;

BOSTON

i.

24

The Commercial and Financial Chronicle

(480)

.

.

Thursday, January 31, 1963

.

Canada's Leading Authorities Evaluate Its 1963 Economy
Continued from page 1
The

larger

outlays

goods

important

in

substantial increase

for services,

well as

as

factor

nine

corporation profits before taxes and

1961

total by

made

We

the

to

period

compared with this

in

can

be

to

see

the

no

or

Changes in

Absence'

our

free

■y

trend

capital spending* by business in 1962 will reach the level

special

country faces
generally

expansion of foreign trade in 1962 has

problems

perhaps

are

understood

because

borders

of

industry.

In the first ten months of the year commodity

high, with exports exceeding

new

a

their 1961 level by about

stantial

gain in

follows

highly-manufactured capital and
continued
sales

its effect
be

-

in

adverse

to

the

rise

balance of payments in the

1962.

Indications

in

that

are

improvement

some

be

about

billion

icits

the

dollars,

same

to

all

a

as

effect

helpful rathbr thah otherwise...

general

rather obscure, picture,

and

we

sion

and profits of the Southam Co.

publication

broadcast. advertising.

and

of
anC'

Of .the major 'advertisers—both - rer,
are encouraged" by the

manufacturers. We

and

incurring sizable def¬

speci'af import

dollar and

was

foreign

exchange

climbing and

.

gain

apparent

any

in

The

prompt

and

comprehensive

brought
fresh

about

their

stimulation

replenishment,

to

domestic

adopted

measures

mid-year not only halted the fall in the
but

reserves

also

production

to

and

ex-

contributed to

1962

levels

record

have been

by the Government's program of credit

expansion; direct incentives to large and small
business;
a

tax

incentive to

business

depreciation allowances;
encourage small

national

oil

for

increased

corporation

industry;

policy and the extension

of

lending capacity of the industrial Development Bank.

The

economic

favorable.

outlook

ahead,

growth

Canada

in

the

course

prospects

of

a

of

good

now and the

Canada.

Business in

and

record

1963.

1962

the

on

developments out¬

expansion

has

been

even

appears

in

and

pros¬

modest increase in
exports over the

Employment will continue to rise in
likely

excess

to

increase
and

manpower

economy

implemented

opment

only

material

in

by

1963

the

to stimulate

by

the

Canadian

more

will

modestly

capacity
Further¬
be

given

comprehensive
Government

to

but

with

looks

forward

confidence.




to

1963

in

rapid industrial devel¬

improve the competitive position
Canadian producers both at home
and abroad.
Canada

In¬

likely to

1963, and

additional and continuing
impetus

recent months

de¬

good, is

better in 1963.

foreign competition for markets.

domestic

steps

a

appear

of the

and the keen

more,

the

high, business

are

level.

Prices

in view

of

capital spending by 5%

good for

full

without

of

complacency

of

years.

sales

to

domestic production.
small

the

meet

as

the

full

11%

impact

completion of the Alberta and
and

Pacific

to

transmis¬

gas

California

markets

is

expenditures

as

whole*

a

construction

of

rate

and

absorbing

processing

gas

the slack

up

drilling

the

plants

and

' ''j

*

\'l' A.',','"1/ \

1

the

'*

have had

y

>

C,

1 *

prevalent

mergers

a'

.the

over

significant influence

a

stock prices of the companies concerned, in my

will

dependent

be

factors.

several

on

Addi¬

finding

new

the continued willingness of

reserves;

and

shareholders

to
accept
comparatively
capital gains, immediately, as against potentially
greater gains accruing from the effect of the leverage of
independents relative to large integrated units and,

<

requirements

the

of

products,

in

in

of

recent

and

possible

With the discovery trend of new oil
ing downward over the past year and

con¬

part

the impact

future tax

legislation.

This will be realized, in part, by

increase

annual

of

'63

of, approximately

development

construction

investors

which, at the end of 1963, had set
target of not less than 800,000 barrels per day of

continu¬

reserves

shortage of oil

a

being forecast by 1970 at the present rate of discovery,

by

it is obvious that it will be to the best interests of federal

the construction of additional refin¬

and

ing

ploration and development considering the importance

capacity

in

Ontario

displacing

products from foreign crude refined
in

Montreal,

and

partly / also

modest increases of pipe
the

to

west

United

of the

The
a

economic

important elements of strength present

savings

its

are

appears

events

further

Canada

in the economy should make it

pects

for

considerable degree

side

increase

1963

economic

are

1963, with the extent

pending to

comes

in

Bearing in mind all the dangers of attempt¬

ing to anticipate the
year

for

continued

sumption

export credits;

profits in 1963

National Oil Policy
a

v

finally,

Canada

the

tional mergers and amalgamations will be tempered by
the cost of acquisition of developed reserves vs. the cost

President, Sarcee Petroleums Limited

reductions to

increase of export credit insurance and the
doubling of
the

J

the

national agriculture policy;

a

on our

J. D. BATEMAN

'

sales; special

tax

mild drain

a

for

minor

:

\

attainment of the

in 1962 will be

but should lead to further: growth in succeeding

provided

port sales.
The

pany

at

import regu¬

new

States

projected

pipeline

continuation of

opinion,

The development of new publications within the com¬

and

'

»

the

on

*

and necessitated action to
protect the reserves.

reserves

••

past year, and which

national

gross

5

•

The

product will result largely from higher prices.

Canada's

in

facilities.

charges Canada's cost of living

that

on

the

lines

slower

increase -in

decreased

generally favorable

are having ; to set this
tlife discouraging fact that with: bur devalued

off agaliist

expected

an

Jutomobiles. We

reaction to-1963

capacity

should remain about level with 1962

the profit position

one

refining

Our prosperity, bwith increased exploratory
drilling taking

the slow-down of these inflows in the first half of 1962

drain

to

Capital

A. F. Beck

depends heavily on the pace of .cohsumer spending and
tailers

the
the

realized.

to move slowly ahead. Our business, is selling adver¬
tising—predominantly
newspaper,
but
also
business

one

of

towards

period take effect. A further increase

of the

this

eastward

area

completed and the
lations

The

gas

is

the

increased

also

expect the operations

number of yearS and these
It

market

the Sarnia-Toronto Area is gradually

in

combined

demand,
Weston

Ottawa Valley as the construction of
the

is

that their

Our guess is

country.

Within

took'

approximately

extension

Southern

whole

a

have been covered by inflows of
capital funds.

caused

the

by

questions will affect business in

these

current rate: of retail sales and the

Canada has been

current account for

on

in 1961,

as

on present forecast

Ontario

face

belligerent?

or

,

oil and gas producer. An increase of
approximately 7-8%
in oil production is projected, based on increases caused

action by parliament—

conciliatory

be

».

prosperous year for the

will tend to be

first nine months,

earlier, and* that the deficit for 1962

will

Cuba

Canada's

place in the final, quarter of 1962 compared with
,ygar

a

together with the natural growth of our maturing nation

contributed

'

i

.

to

this

i

BECK

1963, based

should continue to be

general election? Will Great Britain succeed in
; to
join: the European club? Will; President

answers

gain shown in the 1962 imports

from $710 million in this period of 1961 to $791 million
in

The coming year

remembering

Will Canada

^

(

f

President, Canadian Export Gas & Oil Ltd.

Canadian

through tax cuts? Will Chairman Khrushchev's delayed

larger increase in commodity imports

exports

worth

if rather frightening.

reaction

pegging the external value of the Canadian

The somewhat

the

•

A. F.

Kennedy successfully stimulate the pace of U. S. growth

dollar at 92% U. S. cents.

than

bid

her

characteristic of periods of rapid economic growth in

stems from

is

in

s

*

,

1963. The coming year should

business in

on

fascinating,

another

A substantial increase in imports is

Canada but much of the

f

the

problems remain unsolved

our

and that any

goods have

consumer

"

"

re-estab¬

taken to

industry will continue

maintained, particularly in northeast British
Columbia and adjacent Northwest Territories.

ex¬

measures

oil.

new

gas will be

indeed the lack- of action by parliament—will have

or

comprise a growing proportion of export

products.

that

St. Clair Balfour

9% in 1961, and

some

despite the intense competition for world. markets

for such
a

to

dollar* Lit

-

The sub¬

particularly significant; it

is

exports

year-to-year increase of

a

has

confidence'

lish

8^ % and imports surpassing

comparable 1961 figure by about 11%%.

the

surrounded

government

trade has been at

the

has

Not

are brought into Line with
United States will there be any real tax

in the

change crisis and the publicity that

important stimulus to Canadian business and

an

income.

as

to prosper this year, and the rate of
discovery of natural

'

been

the

formerly tax-

so as

treated

The growth of the natural gas

our

recent

our

be

now

incentive to encourage the finding of

now more

outside

*

in

announced

until depletion allowances

this

that

capital gains will

those

less

reliable than usual.
The

Act

ploratory drilling, but will fail to do

upward

economy.

obvious

of

the Income Tax

budget speech in April, 1961, and approved by Parlia¬
ment late in the year were designed to
encourage ex¬

existing

no

i0 % of provincial

production.

•

Canadian

makes this type of forecast even

being

anticipated in the mid-year investment intentions survey.
further

downward turn to

a

This

:

The

economists.

;

appears

trend that suggests either an

plant and equipment and indications are that

on

Canadian

of

from that of 1962. There is

up

before divi¬

in the larger outlays

also reflected

disagree with what

reserves

enormous

of the bituminous sands to less than

1963 should be at just about the same level

slightly

or

to

reason

consensus

business in

1961,

strict the extraction of oil from the

BALFOUR j

President, The Southam Company Limited

The improvement,in business

about 14%.

is

of

CLAIR

non-residents exceeding the comparable

paid to

conditions

:

been

profits shown for the

with

months

have

contributed

also

They

in corporate

first

dends

and

higher operating levels

the

industries.

secondary

ST.

durable

consumer

>

non-durable
an

\
both

for

States,

east

of

oil

new

that

and

and

since
As

several

discovery in

result,

a

production
ceeded the

during
of

the

past

petroleum
of

reserves

the rash of take-over bids by
the

as

panies

depressed equities
have

cheaper than they
1963 it is

be
of

by

the

The decline of

be discovered

larger oil

and

time four

oil

abandoned

search

The Alberta

the

C'

in

during

'

are

During

that

of

oil

for
the

in

Arctic

1961-62.
under

At

granted for the initiation of

a

year,

second

However, the Board has indicated

a

In

not invest their

the

the

In

Arctic

Islands

companies,
an

producer, certainly is

a

needed.

addition,

a

more

sophisticated

oil and gas industry

greater extent in its de¬

because

encouragement

own

of

the

should

large

sums

of

will

be

and

increase

in

be

or

will

funds.

gross

Canadian oil and gas

was

present

and

own

conclusion, then, while I do not foresee

tional

consideration for

sands\projects;

likely that, during the present

on

ments to the extent that Canadians either cannot

1'

income

or

any

production

sensa¬

in

the

industry, I believe that there will

greater percentage increase than in many other in¬

a

dustries. As long
oil

tar

domestic

given to foreign capital to participate in these develop¬

,

the

are

involved,

money

many

Conservation Board has given the

first

the

tax-wise,

potential, and, if given proper tax incentives, will

velopment.

reserves

drilled.

or

companies, and

well

prospective wells

drilling in 1963.

to

the

The first

to the independent

certainly be participating to

com¬

discovery in western Canada will

new

accelerate

basin.

drilled

light

acquire

independents will elect to merge.

probably
Island

can

independent oil

to

operate,

knowledgeable about their

and its

the larger oil companies

possible

especially
to

Canadians themselves have become
and

partly responsible for

the

industry,
allowed

inequalities

some

anticipated that additional take-over offers will

made
the

it

made

of

Canadian

J. D. Bateman

oil dis¬

new

the

by the government that7 incentives and rectification of

ex¬

covered. This condition has been

integral part of

step in the right direction and indicates the realization

year,

has

an

ex¬

The federal government is beginning to realize

ful benefit

elapsed
field has been found,.

ma j or

a

be

as

further

encourage

equable
basis with its foreign counterparts. Legislation enacted
over the past year, some of which is presently of doubt¬

-

have

years

industry

the

must

-

western Canada has fallen alarming¬

ly

the

economy.

line exports

both

Rocky;; Mountains,

rate

of

by

provincial governments to

and

gas

as

industry

the fundamental economics

and

the

of the

comparatively favorable

political climate allow it to participate in the continually
green

it

increasing demand for energy in both the United States

is

authority will be

and

is

extractive project.

policy that will

re¬

Canada, the industry, both independent and major,

'

:

.

on

a

.

sound basis for further expansion.

Continued

on

page

26

Volume

197

Number 6234

.

.

.

The Commercial and Financial Chronicle

(481)
and

other

stimulative

policies,

However, it is reassuring that

C.

Canadian

the

■

.,.

Not Quicken Economy'sJPace

and

expand

the

that

present

tie

will

1963

spectacular

time,
for

year

appears

good but not

a

There

economy.

it

the

are

S.

U.

obvious

no

distortions

:

the

economy

which
call

would

for

sub-

stantial

:

in

cor-

v

rection

j

ad-

or

leading
I

to

downturn
in

are

and

Exchange Elects

not

could

MONTREAL, Canada—R. C.
man

a.

meeting

production and

con¬

of

ciety of

talk
the

by Mr. Baughman
Investment

Analysts

at

/,

Another important factor tend¬

ing to restrain activity currently
(and probably in 1963) is the

relatively
consumer

consumer

adequate

inventory

,

durables and the sizable

and

mortgage

compared with earlier
less

of

mean

that

the

debt

Moore &

This

years.

New

is

Feb.

economy

responsive to monetary

ease

Hudon

1,

former

City, members of the

York

Stock

will

T,

Exchange,

admit

William

O'Connor, Jr. to partnership.

:

Board,

Thompson

Advisory Member of

of Collier, Norris & Quinlan Limited, and P. A.
Turcot of Turcot Wood Power &

of

Canadian

G.

R.

L.

•

&

also re-elected, the He
Vice-Chairman of the

the

Johnston

of

was] elected

served

latter

Secretary-

as

on

&

P.

while

&

Company Ltd.

Governor and
of the

of

Exchange.

expect

that in the 4th

quarter
Ernest

of

1963 gross na¬

T. Baughman

tional-product
would

be

about

$588

at

annual

an

billion,

rate

of

about 4%_

or

above estimated rate for the fourth
quarter of 1962.

I foresee

sub-

no

stantial changes in the pattern of
economic activity.
I expect all

major sectors of activity with the

possible exception of private
struction

to

moderate

in¬

butwith,

creases

consumer

ex¬

services

and

penditures

for

.Government

relatively
As

con¬

show

expenditures
than

more

the

to

during

-

I

fWl
v.tW.

rising

GNP.

pattern

1963,

*******

of

would

activity

expect

t

a7

gradual rise throughout the. year
with each succeeding quarter re*

The

projected

would

not

inroad

on

rise

make
unused

dustrial
should

sector.

be-

■

,

.y>>SXvX*

activity

substantial

any

capacity, either

to the labor force

as

in

:•:. •

,

fleeting higher production and
consumption of goods and services.

in the in¬

or

Therefore, prices

generally stable, with

downward pressures in individual

sectors

largely offsetting the: ef- f

PARIS

fects of further moderate increases
•in

hourly

wage rates.

'

A sizable tax cut enacted early '
in 1963 could

provide

w:5

significant

a

stimulus to activity and result in

a'greater rise, than I
ing.

However, I

suggest¬

am

assume

that with

economic activity rising

gradually,

for

pressures
a

tax cut to provide

a

.:;vx;

£&*:

promptj stimulus will be muted

and that any cut which is enacted,
will be small

long enough
activity

in

enough

1963

psychological.
•;

'

•

'

'

■■■■■.' -:

Restraints

s

One

will

be

largely

.

'.v.••

on

deferred

or

that the effects oh

so

:v

;

Economic Activity

A richly endowed

important, problem is the

continued

deficit

States; balance
payments.
restraint

in

of

the

United

Tips has provided

on

Its modern

international

v

some

position astride the air and

vlw.yX'XvX

activity during * 1962 :

While

a

v.;.v;vffi'!vf
:: ::x-::W:':¥:

world's

well.

as

balance

suggests

of

that

its

/

STATISTICS (1961)

that

fy

POPULATIONt

;

of ; its major competitors, there has
LABOUR

ac¬

'

••

this conclusion with

cept
v

-to

•"',

1,796.200

'•:ra!»xtv':v v*!.":-

PRODUCTION:

the
However, if the
a

t'i

v\

••

large

value o*

surplus
with
the

of

accomplish

exports

a

dynamic

p®

few

way

of life" is

\

7

'

.-X

one

that nurtures

stable growth, well-ordered progress and a

economy.
PROVINCE

DE

W

#|
88883

•88

JMS

IN STALLE D

:*:W

HYDRO-ELECTRIC POWER

AV.V

A

12,905,004 H.P.

,

•

...

JMmm

larger

compared

as

.

large V;

private long-term capi-; ;;
tai investment abroad, it "would be
jk
to

*

shipments)

PERSONAL INCOME: $6,684,000,000

volume of

necessary

"Quebec

\plt

LA

(estimated

k

a

guarantee

S6.936.434.000

prbgrarii of foreign - aid, foreign
military expenditures and

a

conditions, equal opportunities for all. The

^§|

5,106,000

FORCE:

■>'

respect

j the current experience of

United States.

'.United States is to continue

is

of freedom of enterprise, harmonious social

price

been widespread hesitation to

strategic

lanes of the

commerce.

Soundness Of its government

payments

structure is out of line with

sea

vvXwl

long continued deficit in

.a'• nation's

usually

1963

transportation facilities reach out

to the world's markets—from its

and may well be a significant re¬

straining factor in

province, Quebec provides

labour and raw materials in abundance.

power,

.]:!

imports in order to eliminate
deficit

payments.
tinue

to

from

our

balance

Certainly, it will
be

importance

a

matter, of

that

we

Industry

utmost

accomplish




further

of

con¬

Canada
..

3&8:
w.v.v.v.v.v.v.v
W.WAWWW.

information
and
—

or

on

La

Commerce,
50

Province

de

Parliament

Rockefeller

Plaza,

as

Ex¬

Quebec, write The Minister
Buildings,

New York

20,

re-elected

Advisory Member

Therefore, I
would

term
the

Hugh Mackay

was

:

activity.

Leslie

.

H. A; Wheeler of

Mr.

E.

re¬

Governor.

the previous

change.

Hudon is President of Morgan &
Co. Ltd.

Limited,

been

G.
a

Advisory, Member

Treasurer. Mr. Thompson is VicePresident and Director of Molson

Company

R.

Co.

were
as

the Ex¬

Inc., J. H. Norris

acclama¬

and

Chaput,
Governor

1W. L. Downes of W. D. Latimer

Bui-

the, Board
the

&

elected

Exchange at the Annual Cundill Ltd. have all
Meeting. Mr. Bulman is President elected to the Board.

J.

Schley, 120 Broadway,

York

of

by

Brault

change.

of Grant Johnston & Co. Limited.

To Admit
New

of

of
was

Stock

Moore & Schley

as

Chairman

re-elected

Management

a

So¬

Chicago, Chicago, 111.;
'

cant inflation * of prices.

was

tion

til.

sumption without further signifi¬

t may

t m e

u s

increases in

debt

further apace with in¬
in production and income.

From

At

public

excessively burdensome and
creases

By Ernest T. Baughman,* Vice-President arid Director of Research,
Federal Reserve Bank of Chicago. Chicago,

private

Guy

Montreal,

current level and structure of both

25

Quebec

N.Y.,

City,

U.S.A.

26

The Commercial and Financial Chronicle

(482)

Continued from page 24

■

is

that "in British Columbia,

viction

launching a

of

real satisfaction and pride

to

report that this forecast

than
a

justified/For 1962

the

and

sharply
solid

the

on

another banner year

upswing

months

for

known

Less well

that

forces

is

the

North

British

creasing at

rate

a

sales

con¬

thus,

Columbia's
faster

even

than

production

and

a

Setting the
expansion

population
that

of

in¬

is

internal

portant

■

<

•

,

up '

8%

at

value

total

a

housing

of

starts

a

1

All these indicators are

carried

of

the western world's greatest program

sion is

has

Island

and

Zellerbach
at

Harmac

Elk

at

Powell

Canada

Falls

and

Port

River

Limited

the north coast at

Forest

and

Ocean

Products

at

Prince

George,

through"

will

begin within

added,

as

Columbia's

the giant earth-filled dam

on

a

few short months.

sidelight, that in

a

tourist

also

revenues

a
,

reached

of

visitors

who

horsepower—more

than

all

present

tional negotiations are still proceeding.

tial for another four million

has

economic

spectacular gains

second natural resource

were

field, the oil

registered

and gas

in

;\

■

;

■

/ prospects

are

gains and

growth in the United /
an

adverse effect.1

view, the United States econ¬

will continue to lag behind until/
political action is taken •

courageous

in two

Corporate

important respects.

Butcher III

Howard

personal income taxes must be

,

(together with federal spending)

damsites, and

in¬

cause

;/

suitable

States, the year 1962 was one of outstanding

/

growth for Alberta's booming natural gas industry. The

/

export program and the resultant construction of the

gas

Alberta Gas Trunk Line system

ar¬

communities in the past

downstream, construction contracts

be awarded without

a

industry/' <

can

■of outlines of British Columbia's unmatched power
po¬

companies

to

extend

has enabled

service to 44

six

years.

*

.

our

distribur

more
-

,

/

Alberta
<

/

-

The past year was another good one for our natural

;///.'/''•"/: '/•/,///V'-/

delay.

Space limitations do not permit more than this briefest

exports to

Largely due to the sharp increase in gas

bia's entitlement of the extra power produced at Ameri¬
installations

and /

could weaken investor. confidence

tion

can

companies

power

pioneered and developed by private capital

another flight from the Canadian dollar.

the United

which interna¬

as

"domina¬

Such agitation, and further

of . electric

expropriations

were

/and initiative,

British Columbia

as soon

bright prospects for Canadian business could also

Provincial
which

And the poten¬

on

other irresponsible

present featherbedding and

hope of political gain, for steps against U. S.

already invested $7 million in engineering studies

of three Columbia

Spurred on by the completion of the
Western Pacific

•;■'•••//

This, of course, de¬

rangements have been completed to sell British Colum¬

1962, the volume of timber scaled in
Biitish Columbia was
up 18% over the previous
year

/A

V.

level of
*

•

tion" of Canadian business.

horsepower exists in devel¬

opment of the Columbia River Basin,

the close of

more

omy

The

the

hydro-electric

bia, thereby adding the stability of new
payrolls where
one-crop" or "one-industry" economies
may have ex¬
isted in the past.
■'
V.A/./V

even

Canadian.

/,

After two

be clouded by political uncertainties and a possible fed¬
eral election in 1963. This could lead to agitation, in the

all-time

an

made-.the'60-mile-side.<trip from

stallations in British Columbia produce.

but

In my

(It might

when British

year

significance of these developments in the forest:
industry is increased by the fact that they are
taking
place in such widely separated areas of British Colum¬

At

"

•

substantially reduced

record, the Peace River project itself attracted hundreds

•/////// /v/;-.

»

Although its growth rate is bound

and

^Alaska Higbw^to the,damsite.)
ton, Vancouver Island installation; and further
develops
/ The Peace River development will yield four million
Rupert, New Westminster and Kamloops
'

/

generally expected to

now

States would have

ment at Prince

.

>/; //J,/ /§/

of solid progress for Cana¬

one

the

uncertainty

of

continued slow

geo¬

The

:

practices of labor unions must be curbed.

be

by

spending $25 million at its Crof-

rounds out the program.

been

pends heavily on export

of hydro¬

tunnels

BUTCHER III

nearly finished, and work

on

graphical centre of the Province; British Columbia For¬
est Products Limited1 is

diversion

giant

?/'/ HOWARD

///

and the

pulp

new

under construction

now

Ltd.

Falls

Three

ours

;
better /

an even

//;/;;/

expan¬

Hope, site of the great Portage Dam on the

River.

by

which the river will be diverted during construction are

itself

total cost of $36 million. A

a

mill, to cost $50 million, is
Canadian

mainland./ Crown

expanding its operations

Vancouver Island

on

Peace

the

on

is

at Hudson

Vancouver

on

that

note

President, International Utilities Corp.

<

Canada's

out

Alberni

/

;

v

1962 will be followed

was

bright for 1963.

leading

at

to

to be somewhat lower than last year,

in

industry.
facilities

;//;

/

by British 'i electric power development, a program which is now
dollar-earner, the forest products
firmly under way. ' *
\
/ /
'• MacMillan, Bloedel & Powell River Limited
Throughout 1962, a labor force of 700 has been at work^
committed $71 million to the construction of new

Columbia's

now

pleasure

a

in 1963.

921/2C U. S.

impressive, but the overriding

element in British Columbia's sustained cycle

being

gain

is

remain stable at its present

Fac¬

well in

the all-im¬

showed

ise which
year

dollar is

$2 billion; retail sales were also up 8%; British

indicator

it

only government in Canada to complete its

fiscal year with an overall balanced
budget,
including capital and current expenditures.
//
The public sector of the economy is
building aggres¬
sively from a solid financial base; the * private sector

years

/;/

,

Columbia,

\

good economic health of

country's slow rate of growth in recent years.

September alone of 44% over the same month in 1961.

this latest cycle is the $200 million

pace in

catch, which is

Columbia's exports increased by 23.4%; and

in¬

are

of

excess

California,

markets

shipments were

tory

record level.

program

/./

//

'/■"".
the

on

dian business. (The devaluation and
pegging of its Over¬
value currency was the medicine needed to correct the

gains both in ton¬

the increased tempo set by the resource industries.

of

development

creasing side by side, while the Province's export trade
continues at

totaled.

are

comment

The past year has

Manufacturing and commercial development matched

the most populous state of the American

now

new

:

was

expected to total a record $100,000,000 when final 1962
Hon.W.A. C. Bennett

devoting its energies to the

resources.

which is

American

as

greater
mines in the Highland Valley

landed and in the value of the

nage

Canada.

known, perhaps, is the fact

on

tinent

union;

in

alone,- copper; output

year

British Columbia's fisheries posted

of the fastest-growing work

one

these

elsewhere

the

the economy of the Province

on

Canada—of these massive projects

health. Accordingly, it seems entirely
appropriate to forecast that the year of particular prom-

of the southern interior swung into full production.

area

Columbia's

great bounty of natural resources is
well

of

all

shares this good

;.v'i' <///./

than in all of 1961

in 1963.

The extent of I British

,

;•",{//"//
Mining, activity showed a. 10% increase in walue ofproduction during the year, with the major gains going \
to copper and iron ore production.
For the first six ;

indeed

established

base

to

Transmission

Westcoast

of

1962-63

Capacity

pipeline has been increased

two years.

was more

key year, with all major economic

indicators

{

in the

was

British

Company's gas
pipeline facilities have similarly been increased, with
major extensions to new fields scheduled during the next
and

program,

Columbia's people'

British

vigor; of

Pacific

Western

final

a

will be the

45,000 barrels per day through a $2 million expansion.

Now, 12 months later, it is a source

•

the

of

cycle of expansion and growth."

new

As

and natural

staggering 1,057%

production by 20% during the past year.

gas

1962 shapes up as a

year,of particular promise—the key year in

increased by a

tion has

economic

indeed

readily be visualized.

can

fields centered in the Peace River and Fort
Nelson areas of the northern interior. Crude oil produc¬

in the course of a review of British Col¬
development, I stated my firm con¬

One year ago,

participating in the development of the Province's

now

oil and gas

Premier, Province of British Columbia

umbia's

—and

1962, every major petroleum producer on the continent

''•:/,

BENNETT ■;

C.

W. A.

HON.

;

Thursday, January 31, 1963

,

tential; but the impact

pipeline, which has been in operation since January,

oil

\

••

.

...

gas

electric

and

Canada.

distribution

companies

in

western

Natural gas revenues in the last quarter were

adversely affected by abnormally

warm

weather and

/

a

■A-*:

Over Half

Admit

Century /
'///v°I Investment Experience:
:

over

;///:/

iees

are

readily available

to

to

Our

/*

investing institutions,

Direct private wire connections with
affiliated offices

;

in fourteen principal Canadian cities provide fast
and accurate service in Canadian securities, and en-

/:

C able us to execute orders promptly

/

//:, stock exchanges,
funds if desired.

_

or

/

Canadian

■

' /

.

to

Burton

f

from
Jan.

-

,•

'

./

■

•

'■*Telephone DIgby 4-0633 /\

,

Affiliated with

/^/;/"/
^

^
\;

,

way,
.

NeW

the

Feb.

on

.

■'

/

n,

Toronto

Stock

■

and

•

'

V<

"

36

'

■

AGUIDE-;///;

7

will

Stock
admit

will

make

H.

-■ / /,'
;//' ■''/

general outline

.of taxation and other matters of

/the establishment of

T/in

Exchange,
Jerome

./://. . an up-to-date,

//.

/ special value to those considering

/,

•

a

business

:/

Canada. Your copy is available \\ /

-V from any

of the addresses below.

/

Brof-l/

his headquarters

at

377

New

York
./\

Avenue,.:

BRNK

.7//^/^/;//

/•'.

King St., West, Toronto lf Canada

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




/

;

THE BHNK OF NOVR SCOTIR

:

Limited i
—

York

Huntington, N. Y.

Now Armin Speer :

Wood, Gtindy & Company
Head Office

BUSINESS

the; firm's recently opened of¬

fice

Members of
■'
'/•••/,
Exchange
Montreal Stock Exchange

Canadian Stock Exchange

;

/

Co., 120 Broad-*

Brofman to partnership. Mr.

at

The

/ CANADIAN i
•*.*.

/

New York City, members of

'

Wood, Gundy & Company
wu

?

SCOTIABANK

v

,-.J

Admit Partner

man
•

-

firm!

r:./

/ Wood, Gundy & Co., Inc./A
40 Wall Street, New York 5, N.' Y.

/;THE

■

H. M. Frumkes &

;

in " the

partnership
31.

II. M. Frumkes to

''/*

V

/r

•■//"'•

''*i 1

William

Gery

Sper-/
partnership inthe firm./
A.. Barysh 'will withdraw./

'

■

.

at net prices in United States

/./

'

on

/

admit

ling

'"/

serv-

City, members of' the New
Exchange, on Feb; 7"'..

Stock

will

/ / /
.//•'/v. banks and dealers.i; /./v..;/~r /■•//::// ''■/./" //■■///

//

York

t-

serve

■
A.

50 years of experience in
Canadian invest*!'

nvents, our organization is well prepared
investors Interested in Canadian securities.

/

Sperling M||

Ernst & Co., 120 Broadway, New /
York

With
:

a

■

:

Toronto: 44 King Street West—
New York: 37 Wall

TEANECK, N. J.—Armin Speer &
Co., 412 Cedar Lane, is continuing

/

the investment business of Spon¬
sor

Securities

Newark.

Corporation,
/'

Street—Chicago:

Board of Trade Building—Los Angeles:'

'of
A/'

611 Wilshire

Blvd.—Houston ;712 Main Street

-

i

■**,. i

:C'KA!

*

Number 6234

197

Volume

.

\

The Commercial and Financial Chronicle

.

(483)

Edmonton company to
Additions to our microwave system plus the opening
and net earnings
of - a three million dollar Cross-bar Tandem switching
made good gains for the full year.
We are confident
center in Saint John, which allows inward direct distance
that new highs will again be reported in 1963.
dialing to the Maritime Provinces, plus key-pulse dialing
Subject to some contingencies, gross construction and '« by our operators, made the use of long distance facilities
property additions of our public utility subsidiaries in
faster and simpler for our customers. These improve1963 are expected to exceed $18,000,000. This is about
ments also accounted for the significant increase in the
number of long distance calls handled
by our
$6,000,000 over last year and would be second only to
in 1962.:
1958 in total expenditures by our system companies in
substantial rate allowance by our

reaped the benefits of the business up¬

1962 Canada

In

offices

Gross National Product
record a gain of close to, 8%, with 2%
being attributed to a rise in the general price level.
Therefore, the real gain will be one
6f the highest recorded in the post
began early in 1961.

turn which

service

is expected to

company'

On the basis of this change

in

business

and fifty

cycle,

to

smaller

a

or

towards
flat

.remain

wards

whether the cycle will

on

continue

a

and

around

mild

downturn

mid-year,

Business

trends

with

Gross Na¬

incentives,
austerity

effect

an

the

upon

economy, support

flattening of the business

a

and

natural

producers enjoyed

gas

condensate, which

increased

rate

which still

in

15%

pected to gain another 8% in 1963.

At

areas.

1962,

an¬

is

In

field

locations

maintained,
the

rising

-

costs

effective

more

tion, and

of

market in

we

paperwork

simplifica¬

therefore

we are

The

time,

not

level

of employment should
greatly, and we will plan

vary

Capital

expenditures

with

every

confidence

F.

R.

DANIELS

President, Dominion Textile Company Limited

the

due, in large measure, to

Government
to

cost of $370,000 will provide

a

and will cost

an

needs

for

defense

national

and

This lower growth

tures.

permits the industry to reach the Na¬

The company

reduce

part of the austerity program calculated

as

imports

and

to

develop

revenue

a

and

4%

sur¬

are, only now being felt.
devaluation of the Canadian

The first impact of the

fully recognizes its responsibility in

..Continued

•

demand in 1963 will increase

with refinery receipts showing

-VOUS

larger gain.
the weak spot

in the industry.

In the majority of
not make up the loss

cases, 1962 volume gains will
incurred. through., price wars arid; increased costes. Re^
finery Over-capacity, while fulfilling the National Oil

•

Policy aims, acts as. the catalyst in these price wars.In
1963, refinery capacity will be increased again indicating
another year of price

squeezing. However,/ it is hoped
V

that good sense, will prevail,, in which
may

case, the industrylook, forward to 1963 with; confidence and optimism.

»

-

KENNETH V. COX
-

Executive Vice-President
>'

The New Brunswick

and. General Manager,"*
Telephone Co., Ltd.

v

The branch of 4'The Bank" there

Eleven million dollars I wiU .'be
spent by the New Bruris- ^
wick TelephoneCompany on new construction in 1963; •

member of its staff is

This is the largest construction budget" in the
history of
the company.' The forecast. of net gain in
telephones for
^

1963 is

8,100.; This huge construction

I
budget indicates the efforts our
I vtpany > is .making to; meet the.
-

1:>^|^Hit"-'^urii^afipn''./ieeds
V;-New, Brunswick

our

over

siori

should
same

be

allocated:

for

in' which

year

Seven'•'communities

■pHr

1963,'

planned for
exchanges

changes will- be established.

v:

some

.

'*

So whatever part
,

iy

.

r

•

*

<r:

,

\

i

r

•

of Canada
,r

'

J-

f

^

.

dial

v

"

<

you
'

»,1'

-*

you may

need
\

;

.

and

.

•

need

„

*"

*-

.'

>

,

#

^ti ^'

* $/£&■:.£

and; three
In

are

new

dial

,

.

the bank that,knows Canadian business.

,

•.

ex¬

1962, the company had

program

movement of sets in and out of service.

••

TORONTO -DOMINION
Head Office: Toronto,

^-;P

'•?...

•

services introduced during 1962

was

tele-,

New York

-

locations,

TWX

or

permits

type-written messages^at speeds of
minute to any other TWX machine.




more

the

Other offices in

permanently-

transmission

to *100 words
v

'

,

Agent ] •'

.

*

•

a

'

r

-

»

~

HA 5-5600

J. A. Boyle; Business Development *

U.S.A.—Chicago, III. and Los Angeles, Calif.v

of
•-

up

Canada;,

Agency: 45 Wall Street, New York 5

T. F. R. Elliott,

typewriter exchange service (TWX). Unlike the present

private-line service between two

*

you can get

.

also

existing dial 'vfj

some of the

.

*

.

.
v"

it

from the people who -make the difference, at

^ "

telephones brings the total in the Province .to;over
V142,800, which is the end result of a tremendous daily

associated

coast to

know about

to

T

of

new.

every

in all of

.

people know the local language

whatever business assistance

of $10 V? million and a gain ofjf;
8,'300>telephones;^. This increase; in*".the- numberspp

Among-

.

the local conditions.

will!'

scheduled

are

"i11 central office equipment
1

f
construction

.

.

operation in 1963., Extensive changes

-

-a

our

\

the PNew p

to be converted from manual to

•

.

industrial Canada from

fitting that^

\-®*urisfaick- Telephone Company
ftfBH v celebrate its; 75th Anniversary.

;

bilingual, naturally. But then

600 branches, covering

you'll find

coast,

com- ;;

1

>

you

this tremendous growth and expan-vP

AMJK

k. v. Cox

help

can

com-

of the people of

and it is

j|j|B

£

the

industry, the beneficial effects

The price squeeze on refiner-marketers continues to
be

for

There is always a considerable time
lag between the
institution of any radical
change such as in the case of
the develuatioh of the Canadian dollar and the institu¬
tion of the surcharges. In the case of the
cotton textile

This is planned for 1965

vival programs have demanded considerable engineering
effort and a substantial portion of our capital expendi¬

ex¬

lesser

national coffers.

additional $250,000.

Communication

a

degree, to the tariff surcharges imposed by the Canadian

cus¬

Dialing in 1964. This will be done

The first at

discounting of the Canadian dollar, and, to

Total demand for crude and products should show a
gairi of close to 4.5% while refinery receipts will be up
about 6% reflecting the backout of imported
products.

3.5%

the

crews were

the slowdown in economic growth forecast for 1963.

between

in

future.

The buoyancy apparent in the cotton textile
industry in
Canada today is undoubtedly

service to other communities.

tional Oil Policy target, of 800,000 b/d, also seems
rea^'-f
sonable. in the light of the new U. S. Import Policy arid

It. is expected that total

lessening of

to

in our outlook.

being placed underground
some

probable

a

tend

However, if profit margins

record year for buried cable

a

should

products and services

provide service
same

and

money

prevails in most industries, we anti¬
cipate ari increasing demand for the

One hundred

the

•

.V" Vi*'. 0*«Vv;.-*-.

.■>•

-

believe that the coming year

manpower, equipment and
improved methods. Since this need

Direct Distance Dialing to the more heavily populated
areas of the Province. The second
stage will extend this

other year of outstanding growth under the impetus of
the National Oil Policy and the demand for these
prod¬
ucts iri the United States. Demand for Canadian crude
and

these

400 miles of cable

in two stages.

ing down.
oil

over

tomer Direct Distance

buoy¬

a

market, arid the European growth rate is slow¬

Canadian

in

to

•

of

use

The

;

erected

easier

must be offset by

of the

the

was

.i

*•'

•

measures

be

to

are

spent in extending serv¬

of our Province.

areas

miles of wire

subscribers

>

.!•>'

practically eliminates storm damage.
The company has plans for the introduction of

Canadian

cycle despite the solution of the Cuban crisis and
ant stock

;

CRAIN

able to bury up to 17,000 feet per day .This burying of
cable and wire greatly reduces maintenance costs and

A.F.Campo

the forecast smaller growth rate. The

United States is experiencing

constant.

small independently-owned
telephone
territory late in 1962 brought to 94 the;
exchanges we now operate' in the Province

was

.

bolster the Canadian
economy..
Prices
are
expected
to
remain

one

throughout the Province.

which

abroad,

Nearly 87%

IL*'v:'*

-S**"•

with

cooperate
.

will be one of modest growth
notwithstanding some
indications to the contrary. Policies of devaluation, tax

dial

have dial service.

now

L.

There is good reason to

our

Nineteen sixty-two was

then begin up¬

tional Pfodtict should gain 3% or 4%.

have

territory

up-to-date

to

;•'» v-

President, R. L. Crain Limited

*TVA'/-v'1

steady progress is being made in reducing the number
of telephones per line.
The effect of this is a greatly
improved service to many of our rural subscribers.

growth rate is expected in 1963. De¬

pending

new

and

5,000 subscribers.

our

ice into the rural

flatten.

the

modern

During the year, $130,000

which paved the
successful 1962, began to

a

most

of New Brunswick.

indicators,

for

in

nurnber of

period.

way

over

take-over of

Towards the end of the year eco¬
nomic

to

telephones in

.

war

brought the

always ready

ROLLA

convert all telephones in
by 1967 is proceeding as scheduled with
a record year of seven
exchanges cut to dial plus
opening of a new„ exchange at Alma in the Fundy
National Park rirea; The conversion' of these seven dial

CAMPO

F.

A.

is

and

am■■'*v

Province to dial

President, Canadian Petrofina Limited

matters,

government bodies at all levels.

The company's plan to

single year,

a

these

In spite of this our gross

its customers.

27

;More than 600 Branches Across Canada

on page

28

The Commercial and Financial Chronicle

27

Continued from page
dollar

.

Thursday, January 31, 1963

.

.

(484)

28

Canadian mills;

costs for*the

increase

to

was

the maintenance of
• ■'
:-v

being the case
be

a

problem.

extended to Halifax in the spring of 1963. As a

likely to apply to beer prices. This
profit margins may

conditions this is not

X

(

"•

'

-'X

of

member

Trans-Canada, the Bell is responsible for the portion

Ontario and Quebec.

lies within

which

;

The Trans-Canada System also provides facilities for
order book, such in¬
The
1961-62
business recovery in Canada, while j
the consolidated coast-to-coast y radio network of the
creased costs had to be borne by the company.
somewhat less vigorous recently, still appears to have 1
Canadian Broadcasting Corp. which was put in service
There are still a number of situations which are
sufficient momentum toycarry-into the present year, <
Oct. 1.
1
plaguing the industry, but in my opinion we are starting
strengthened by indicated increases in consumer spend- :
During the year the company raised some $160,000,000
a
new year in a very much more optimistic frame of y
ing f and capitaly outlays. Over-all economic activity X
of new capital in both stock and bonds to finance the
mind, from both the point of view of volume and of
should be slightly higher in 1963 and some improvement' ,
expansion and improvement of service.
earnings, than the industry has been able to enjoy since y in our balance of payments position is likely, with someSince the end of the Second World War, over one
1951. When making such a statement it is always neces¬ ;; what higher exports and some reduction of imports in
billion dollars of new money has been raised to support
sary to qualify it by reiterating our opening statement
prospect,
v.
V-'-y
;v
> 'A* -a y
the
company's
construction
program.
Through
the
to the effect that this condition has been brought about
There should be only minor increases- in the -general i
; price level in the face of intense competition and con- <. Employees* Stock Plan another $113,000,000 was obtained
largely due to the discount on the Canadian dollar.
in this period.
•'
•/
|
. *
The various firms constituting the Canadian cotton
tinuing over-capacity in most lines.
; Among the new services introduced during 1962 was"
textile industry have continued their modernization pro¬ >
The-outlook for the brewing industry in Canada is
Teletypewriter Exchange Service (TWX). Unlike the
gram, and have spent very substantial sums with, of U for an increase in sales-of approximately 4% in 1963 J
present private-line service between two or more per¬
course, the object in mind of doing everything possible
over the current year.'Profit margins should be fairly
manently associated locations, TWX permits- the trans¬
to keep the manufacturing costs low and to help them¬ > well maintained, permitting' k satisfactory1 increasev in ^
mission of typewritten messages at; speeds of up to'100"
selves.
X'V
profits. -The: brewing industry both in Canada and- in
words a minute to any other TWX machine.,To establish
C: .As members of the most competitive league playing
the Ur S. A. is entering a period of growth, the rate of
the connection the user dials a 10-digit number over the
in the roughest ball park in the world, the problem of
; which will accelerate as the results of the postwar pop¬
regular telephone network.
a
c{versification of products within the industry has not
ulation explosion become reflected in the increasing been mitigated; and because of the fact that nearly 50%
sizes of adult age groups. This increase in the number JOHN GETGOOD '
bf aU ^ttoh fabrics consumed in Canada are imported,
of potential beer-drinkers justifies the forecast increase
President, Pacific Petroleums Ltd.
a very high degree of efficiency in the area of manu¬
t: for 1963 and; should lead tor substantially greater sales \
in the latter part of this decade; facturing, and in the know-how and quality of styling
* ' T
' All indications are that 1963 will be' an excellent year
is imperative.
Tr.is is particularly true if we are to
for the Canadian petroleum industry.
''- a1";; :
withstand the pressure put upon the industry by the
THOMAS W. EADIE
This will be the climactic year of the National Oil Pol¬
imports of fabrics not only from Asiatic and low-wage
President, The Bell Telephone Company of Canada
icy which was put into effect by the Canadian Govern¬
cost producing countries but, in particular, from our
A record $221;000,Q00 construction program,, arj addition . ment in 1961. At that time, Canada's
tremendously large volume producing competitor in'the
oil and natural gas liquids produc¬
of some. 200,000 telephones to our network, and a 9%
United States.
j
barrels
increase in the volume of long distance calls.to a daliy ■£ tion averaged only 540,000
We, in the industry, are hopeful that our government
per day. The stated objective of the
will take- effective measures, as has the Government of ;v average of almost 450,000 were the highlights of 1962
National Oil Policy was to increase
the Bell
Telephone; Co. , of
the United States to assist the American industy, to J for
this production level to a daily aver¬
* y .,/• J y
contain the volume of imports from the low?wage coun-" il Canada.. 1'
The major construction program
age of 800,000 barrels by the end of
tries in Europe and in Asia under the terms of the
1963.
indicates
the substantial
expendirecently negotiated five-yeara Geneva ■ Cotton Textile
To date, this three-year program
1 tures we must make, to continue to
Pact, y Under this Agreement, our government has an
has worked remarkably well, West¬
'i meet the communications needs of.
instrument which can be effectively used to provide a
ern Canadian producers have steadily
public
in ♦ our a territory
of
reasonable-; climate for operations and protect a very y the
enlarged their share of those domes¬
Quebec, Ontario, Labrador and the
substantial portion - of • manufacturing in this country
to

of the size of the

extent

the

•

,

,

.

,

,

,

^

.

v

,.

(

,

,

.

.

;

i

against '"unireasohabler

.hr1*' subsidized^comjiotition.

IAN

;

Limited

greater confidence in the

outlook

could

terms

its 1962

extend

a

We.

a

For

these

the

reasons

look

to

in

forward

1963.

*

.

.VV"

T*;;

that

:
a

will

inflation

that

prices

territory,

200,000

figures

serving

per

daily move¬
i XX--' v,u
^ j,v

populous parts of the province.-

«•

:

►

may

subject

be

but because of

to

are

over

that

added to the

Vancouver, the

Montreal to

from

competitive

new

Now

there is firm confidence in the

further 70,000 barrels

or

more

be

can

daily total during the next twelve months

end-> I

Oil Policy target of 800,000 barrels
this year's

®

-

M.;

J

By current standards in other countries, and particu¬

growth

larly when it is compared with the present 2%

' a

United States, the 48%

production increase

which Canada is achieving in the three-year term of the

the contract for

Ltd.

will exceed 730,000. barrels

will be reached or surpassed on schedule at.

National

Television

CTV

a

and that the National

rate in the

of

Although the final

'

the past two years,

System, which set up
the coast-to-coast television network for the Canadian
network

year.

'

day.

industry

.-The -Trans-Canada -Telephone

the

a

the past

not available as this is written, it appears that

In view of this increase of nearly 200,000 barrels daily

58,000 telephones in the

over

be. economically served with •*
of these market expansion

can

result

a

the 1962 production average

six years and

the .company, acquired a major interest in the
Telephone Co. Ltd, largest telephone company

in Newfoundland

As

factory rate through

%r of- the telephones
have dial service.

now

oil.

Broadcasting Corp., was also awarded

-

Ian R. Dowie

•

pose

generally

small rise of around

of

year

-

problems to the U. S. economy in 1963. It is anticipated,
however,

Avalon

more

*

the

In May

satisfactory year

unlikely from present in-

It seems

dications

a

probably

can

dia^

John Getgood

day in 1961. This growth has continued at a highly satis¬

During the year, 74 exchanges were converted from

1m bur

'

industry

Quebec

the largest. figure in the past

mahuah to

a

the

At

Canadian production reached 640,000 barrels per

moves,

to

ment of sets in and out of service,
y

to be'correct, then this would
whole.

United States which
Canadian

Thomas W. Eadie

-

increase- during

an

foreign " crude.

with

time, Canadian companies have

gradually increased their exports to adjacent areas of the
;

1956, It was the end result of a tremendous

.

•

as

Same

Montreal

from

network

previously supplied almost eri^

tirely

:

,

.

surpassed only in the fecordrbreaking years of 1955 and

further stimulus to the economy

U. S. brewing

•

Gagnon

and

noted

;

} phones,
,

fairly firm indications that tax cuts
will be forthcoming early in 1963
prove

•

City via Sherbrooke, Que.
•

gains in Gross National Product by
about 4% in the coming year. If the

be

'

.

system between

microwave

new

a

expenditures, make it reasonable to
assume
that the U. S. economy -in
overall

'

-

were

in northern
Quebec and the commencement of
lies

Sept

government

in

increases

*

microwave

new

a

such as a recovery in
equity markets . and somewhat - higher proj ections of
capital spending on the part of business, along with
indicated

tic markets in Eastern Canada which

f„,|

"7X Major '"bfdjects in the program"-''
included the completion in May of

S. economy for 1963

for the U.

single year.

a

President, Canadian Breweries
Recent evidences of

the

is

largest in the company's history for

DOWIE

R.

budget

Arctic;: The

eastern

*

It

stretching

must

Oil
be

Policy

borne

may

declaration of the National Oil

network will be

exaggerated

appear

in 'mind,' however,

unfair.

or

that prior to the

Policy, the Canadian in-

NASD.Dist.il'
Elects Officers y'

CANADIAN

■

*;

V

J*:

.

''

'

District J

y

^

J

...V

,A'

,v

i

a

%

Committee No . 11 Jof the-;

STOCKS-BONDS
•

;

■

•

•

...

•;

■

•

•

.

Dealers, comprising Pennsylvania,
Delaware, West. Virginia and part ;

-•"'M

•;

-

;

Orders executed on all.Canadian Exchanges at

regular commission rates
a a;

:';v:aa;-:

or

traded

in New York in United

/

■ *<

of

•

States funds.

New

'" V.
a

;

stein

&

bel,
American Stock Exchange

Montreal Stock Exchange

Canadian Stock Exchange

&

2nd,

Co.,

Stroud
New York 6, N. Y.

Telephone:
:

TELEX

Royal Bank

^

all

YORK

TWX 212

Bldg.,; Toronto, Canada

—

571-1353

the

to

W.r

L.

of

Elkins,

Stock orders executed

;

Cameron,

Morris,

y

? Stock Exchanges,

or

Smith,}

;v"

on

the Montreal and Toronto

net New York markets quoted
request.

/

on

Stokes

Company Incorporated,

Philadelphia.

;

committee

Richard \ O.

and
&

maintained in all classes of Canadian

external and internal bond issues.

Direct Private wires

•

to Toronto, Montreal,

Ottawa, Winnipeg,

'

■

A

.

aV,

Calgary,

Vancouver,

Victoria

and

TELETYPE 212

SYSTEM

BELL

Edwin Ross. Opens Ay A,

;

01-26123

PRIVATE




Markets

;

Halifax

*

V-

,

571-0880

Teletype

WHitehall 4-8980

NEW

and

Hopper, Soliday & Co.; John Grib- 1

Members;

Toronto Stock Exchange

Thomas

were

CHARLES KING & CO.

v;

Philadelphia,

Hunter, McKelvy & Co., *

elected

Also

*

Gerstley, Sun-

Pittsburgh, Co-Chairman.

¥

61 Broadway

Co.,

David W.

..

A iA

Wil¬

Jersey, has elected

liam Gerstley 2nd,

,

■■■■

STOCKS

BONDS

National Association of Securities

•

S'

•

WIRES

TORONTO

—

•

MONTREAL

TEANECK, N. J.—Edwin Ross is
engaging in
from offices

He.

was

vestors

a

securities business

at 559

formerly

Sandra

with

Corporation.

Place.

First

In¬
*

Bomitikjti Securities Grporation
Associate Member American Stock Exchange

Boston

London, Eng.

40

EXCKANOE

Paris, France

PEACE, NEW

YORK

5

Canadian

Affiliate

and

—

Member

Canadian

Stock

Toronto,
Exchanges

Toronto
Montreal

Winnipeg

Telephone WHitehall 4-8161

Vancouver

Ottawa

Calgary
Edmonton

;a-

Montreal

Victoria

Halifax

(485)

dustry was operating at
pared with

83%

an

to

and that nearly

S.)

half of the crude oil used in Canada
rival

Improved engineering techniques

scant 47% of its capacity (com-1

a

rate in the U.

-electric heating:

imported from;

was

ducted

oil-produicng countries. A drastic correction of these

conditions

industry

sound economic basis which would enable

on a

Taken singly

it to proceed with the orderly development of the coun¬

try's petroleum
The

and potential.

resources

hoped-for

improvement

•

the

in

Canadian oil industry is already evident.
in

time

its history,

overall

from

deficit

costs.'

sales and

revenues

about 8 %

with

exploration

own

Petroleums Ltd.)

and development
(including

companies

ment

Pacific

r

no

in

service

our

increase in

V

which have borne steady losses since

show
•

•

two

noticeably and by year-end,
businessmen were
reasonably optimistic about the outlook for 1963.
Preliminary reports of investment plans for the com¬
ing year Indicate a rise in total capital spending by
business on housing and or* hew- plant and: equipment.
The outlook-for exports," on the other hand, is uncertain
in view of Hthe possibility; -of slower rates of growth in
some of our traditional markets; - Further gains in con¬
although prospects were mixed, most

rates4Although "employ¬

on 4tfte Same level,
capital spending
considerably greater than in the past few, years.

G.

and have begun to

years

4'

steadily,increasing prpfits.

With their improved cash flows, Canadian companies

are

to

able

now

undertake

which

programs

two

Throughout the Canadian industry, there is
trend toward
ment

The

exploration and expansion
practicable

not

were

budgets. The faster depletion of

reserves

and the

incentive

to

seek

new

is

additional

incentive

ures

build

to

and

expand
15% increase

A'

i

Western

a

It-is

known

that

the

to anyone

Canadian

-

«

.

considering

Government

yet there has been

nounced decision to extend the

an

be

A. R.
.4

.

;

,

accelerate

into

the

future.

Not

all

1

ft -

of

them

capacity

are

The

neces-

/

" \V''v'-;'4''

\

about.

were

to

Canada's

date,

Gross

A.R.Harrington

of demand

world

tive

gains
•

conditions

to

The growth in

is

in

Hon.

George Hees

the

output between 1961 and 1962 has been

pronounced in goods-producing industries than in

services
•

which

buoyant dernahd situation of earlier post-war years.
contrast

sharp
/

increasingly cofripfcfi-

the face of

in

contributed

significant

more

and

a

major part of the gains have been

i

industry highly exposed to foreign
competition. Figures available 4° date show industrial;
production in total up by more than 8 %. A number of
■

Continued

'

,

on page

STEEP
W.

ROCK

-

for

1962.

While

extra

high [4

use

-

of

coun-

available,-it is likely that f-;

the

outpace hydro generation.

.

,

in

of

i;4 EHV—extra high voltage—is

trend in the transmis-

a

sion of power which is already ort the

proposed

The phrase, "National Grid
of

officials

power

New Brunswick opened

Quebec

and

Line," is in the

Manitoba, have interconnections;
4'

Saskatchewan. ?•:r " /

well

as

so

as

news

are

j

and

great

have Manitoba and

in the United States.

■

further interconnections
and

as

long

generating facilities
:.'•;•

new

as

are

obtained

they

are

from

made when

in suitable economic

4ftft: \ " "4w

4;.

element

ft y.t* i-T

to I be

advantages

entering generation of electricity

.in-.:;4

Canada is computer control. Part of the atomic Douglas
Point Plan

on

Lake

Ontario is operated

connections, this could be
operation.

v ,.'




a

" ■' 4

•

and

inter- 4-;

future trend in power plant i;
■

,

•;

'',4

-

V

v'

STEEP ROCK IRON

>.

and controlled

by a digital computer. With larger stations

,;44

finance Canadian purchases

to

and 4

Ontario

v* V
ft ftft i ft'ft"

•

,

and

'

'•

■■

of export dollars with which

the first fully integrated system

Ontario,

4.

4'-':

Scotia

often. Nova

more

'^4-

j

planning boards .4

in the 500 KV and 700 KV brackets.

are

largest continuous flow

■

in Quebec, Ontario and British Columbia. The voltages

4444

4

4 •*' *

*'

t

;4•;••

...

.

v

<

Mines, Plants and Head Office

;

..

—

re-

alized In sectors of

unlikely - that f ig-

thermal generation will continue to

.

current

notable in that it has been achieved

These »/,.■;

current?will render the

resources

activity

compared

year

try's still untapped but remote hydro .v

;•

v-

-j-J* '>v '1

Na-

75%f for thermal.

development.

V/rjdircct

,

result the economic gains realized in 1962 are

a

'4

.

25%.

voltage transmission: or the

:

..

against

as

\

1962 has been a year of

exceeded

capacity.

trend continued

the

-

>

National, output

more

■ grow, seting new records in power 4hydro

.

A

-T *,

well

new 1 thermal-

1961

in

hydro-electric

installations

balance.

'^4

the deficit on international trade in
goods -and services
4n the first three quarters of the
year increased by $81
million to. $791 million, and it seems

.

customer.

The installation .of

.

new

load

As

last

\

ix

G. Arnold Hart

-

Both

However,
4 industry : continued : to f 4

ft power

electric

There

"

strong advance.1 The quickened pace of business
which took; hold in 1961 has continued in the

able

imports and exports in 1962 were considerably
higher-thaq in the previous, year. On* balance, however,
■

production, capability and sales.

.

\

1960.

..4'.;,,. *:i

economy,

HARRINGTON

the

in

! 1

■

.Presidentand General .Manager,.;

•

sarily of. benefit to the electrical

minds

'4

Canadian

tional Product has increased by 8%

.

dential construction.

motivate

may

;

'v;'. 4""4'!4

>

the

;.,Rmopg the' largest, of the post-war
.4: years. On the basis of figures avail-

a

Several trends have been evident in the Canadian, elec¬
trical power; industry during 1962 which

:>44

>

year;

sharp rise in purchases of durable goods, particularly automobiles, a strong advance in business out¬
lays for new, machinery and higher spending on resi¬
were

than double the

per year—more

r

Nova Scotia Light & .Power Company, Limited

r

;

Nevbrtbeless;-the business- ekpan-»4

|iihe ^jbr^bbmponejtits

steady progress by
the Canadian petroleum
industry through the 1960's.

4.444.-

V• v"

For

*>-<44>-

/ektf&iisftn. Among tlie

800,000-barrel production base estab¬

sufficient to

■x"5:r

supply, aV

a se.vere break in the. stock

-

Canadian Minister of Trade and Commerce,
Ottawa, Canada

4

•

abrupt

-

.no,,an¬

Policy beyond 1963 and

lished under the National Oil Policy, this annual increment will

an

money

vance in,

is

Canadian industry are promising. The Canadian rate of
growth of oil consumption during the next five years is

expected to exceed 5%

included

■ ■

"

to set new production; goals for future
years. However,
even If no such action is
taken, the prospects for the

TJ. S. rater With

;

HON. GEORGE HEES

.

577-mile/
4

/

occurs

as

.

"

;

petroleum industry is: what
happens after 1963 when the National Oil Policy termi¬
studying this matter but

,

at a more
past year.

with
1961.
inV real terms has
nnd for many-Canadian
businessmen
risen by 7%. This rate of growth
1962 proved to he.; a record year: It now: seemslikely 4 surpasses that realized in the Free
that total outpTit PL goods ^hd services for the
World at larg.e and within Canada's
year, will
be just under $4Q
billion;.a gain of about 8% over 1961. : recent history has been exceeded in
Moreover, as ; price increases, on the whole,were
only three' of the; past seventeen
moderate, the'gain in output reflects a significant ad¬
years. This expansion is all the more

the outlook of the Canadian

nates?

year, pres¬

expected.
that 1963

.

Canada.

(Juestion wtiiich logically

On balance,

-

sion continued almost without
pause,

.

of the world's largest nat¬

processing plants -in Alberta and
across

a

4

•'

developments of this type are now in the advanced plan¬
including a-$31,000,000 project by Pacific

pipeline

which

market took, place in May.*/

ning stage,

one

'spending, however, can be reasonably
therefore, it now seems likely
will see continued growth in total output, but
moderate rate than that experienced in the
sumer

-

addition,,

polumbia. Companies now are encouraged to ex-,
pand into the petrochemical field to bring this phase of ;
the Canadian industry fully up-to-date; A number of

gas

over

wide range of Canadian
imports..' In

British

Petroleums Ltd.to build

the

federal government and the
imposi- '■
tion of temporary
surcharges on a.

Crude Oil Pipe Line, opening the way for full develop-?
riient of. the untapped,oil .resources in the Province of

ural

for

business expan¬

sharp rise in market interest rates;
cutting back of spending' by the'

Western Pacific Products &

new

for

exchange
necessitating corrective meas-

tightening of the-

plants and facilities. This has resulted in $
in Canada's refinery capacity since 1961. It also led to
the construction of the

eventful
a

fixing^ of the exchange value of

crisis

supply for future market requirements.
There

been

the Canadian dollar at-a lower- rate.
There was subsequently, an

of

sources

have

way

the

are pro¬

viding much-needed

months

developed against r the Canadian dollar, leading to

sure

enlargement of exploration and develop¬

improved profitability of production operations

twelve

economy. In the midst of
sion which had been under

noticeable

a

past

Canadian

ago.

years

ARNOLD HART

President,. Bank of Montreal, Montreal, Quebec

;

business ex¬

imminent

an

incorporation,« have; come into the .black for Jthe
first time during the past

in

<

4 during the summer subsided

will remain

will be

,r

1962 ended on an encouraging note. .Fears of
recession which were fairly widespread

months,

in 1963 will be

area

billion.

year r

purchases

pansion in Canada has slackened somewhat in recent

;

in electric

U,. S.

While there is evidence that the rate of

4

rapidly than the electrical, and

predicting that the increase

while

billion,

$4.7

to

Canada amounted to $3.9

on.

period of major transition.

a

Our company is

increased-revenues

witn

and,

individual

Many

it is still in

an

Canadian purchases of goods and services from

amounted'
•

in trade
United

United States in the first nine months of the

the

-

the entire power industry.
industry in the short period of 80

more

it is at last generating sufficient

sales,

capital to meet its

has changed

years

For the first"

the industry has emerged from

position

increased

the

'

States.

electrical ;

of

use

during the year involved transactions with the

together, these half dozen trends will

or

It is doubtful if any

of

extensive

improvement. An important part of the increase

being con¬

are

whole will show any substantial

for the year as a

ures
•

load possibilities of

building units.'"'" "'4

have "far reaching results

"1

-

economy

which might lead to

giving rise

now

are

enormous

Experiments" and tests

heat in many new

imperative in order to put the Canadian

was

greater interest in the

29

MINES LIMITED
•

•

;

t

••

4

.

•

•;

*;.

*'".

*.

.4,.,;

Steep Rock Lake, Ontario, Canada

30

I

Continued from page

change in exchange rate. This means that a relatively

29

secondary inaus tries nave
advance.

Approximately

ouo,ouu

been

smcui

contributed materially to this;

Canada in lbtjz, 5U% moie man in
&urpasiing tne previous record revets ot tne.

produced

19bl

ana

mid-bus.
creasea

eiectncai

ot

to

nave

tnaa

which

suostantiai

siiown

nave

materials

available,

far

so

gains

proauctioii

oiri an

9

current

lninlon

Percentage

^

"nivisiDie"

on

Increase

in

in

uie

aomeouc
so urges,

pur•. v

.

oi

re&uitea

nas

oaiance

witn

perioa

posicion

i

a

million 111

$<al

corresponuing

in

17

—.——

44
44

V Natural gas:—-————

Iron

ore

—

Cement

stantial

rent

activity has

industrial

increase

brought

in

tne

ine

an

eleven months of last year,

been 85,000 fewer

earner

unemployed. In 1902 there were 5.9% of the labor force

have

realized

been

months of
two

the

At

time

same

important lift to business confidence.

Against

climate,

the

background

is being spent

more

this

of

on

new

Canadian

ac¬

1962

investment

been

has

continued
a

business

institutional

in

in

upturn

activity in
dustries.

"

3

public

housebuilding

construction
,

and

other

and

'

,v

■

'

!

>•

9%

exports

higher

follows upon
In other

annual

than

words, within the

sales

something in

abroad
excess

and

increase

natural

in¬

new

manufactured

period.

of two

risen

from

$5.4

iron

ore,

products.

The

ports of highly-manufactured products such
ery

and

equipment

finished

and

as

consumer

Exports

of

than one-quarter

this

over

kind

have

increased

by

needs

for

we

eco¬

a premium on

conditions

lines of production in

of

of

intensive

goods

have; had
of

areas

the

production

effect
in

are

a

more

tions of

new

foreign

abroad

associated

with

:

Chemical

J

1962

was

The country survived

one

exchange

foreign

arose,

again the importance of
an

"Attitude" will be
1963 performance.

.

"attitude^;

key factor in

a

Most of the basic

<

problems facing Canada about which
I

commented

one

year

ago

still

are

with us.; In fact, I am struck by the

similarity of conditions today. To be
approaching the ' future,

are

sure

we

far healthier condition than

a

did twelve months ago, but we

%Gompanij Limited

accomplished

To

l-

very

business

much toward V

problems.

G.H.D.Hobbs

,

simplify these is perhaps to beg the question, and

has

da

to reduce to trade, jobs, and costs. Cana-

seem

been,

is, and always will

Important changes

^

we

have^.,

solving of our fundamental long-

yet they
•

A

had
for¬

influence in business activity.

in

Bay Street, Toronto, Canada

a

thus pointing

as

stimulus in

'

than many

for business

year

up

term

320

D. HOBBS

H.

one year ago;

difficulty; in

ous

gains being made in both the domestic and
the beneficial effects of these new

Established 1921

low

Con-

Products sales should continue

sumer

better

a

"nevertheless

increasingly apparent in the period
ahead. In fact the further penetration of
markets arising
the new competitive
strength of Canadian producers should provide a major source of

"-%'*■

continued

of chemicals.

The basic strength of the economy did
provide the atmosphere for seri¬

not

a

'

with

imports

eign exchange crisis which turned out to be more ap¬

not

"

sales will show modest

1963

parent than real.

markets,

Gairdncr

to

due

promotion^of

President, Western Canada Steel Limited

anticipated

available, intensified
being carried forward.

the coming year.

demand
and

growth pattern as in 1962.

G.

of

for

prices

Hall

to show the same

,

'

In the packaging field, we

developments in' packaging;"?

new

W.'N.

slight improvement

nearly all phases of

introduction

the

,

a

increased

expect

initiatives should be

the

,

1962 level.

pulp and paper and paperboard

industry.

which

are,

a

construction to main¬

the overall the

on

the

for

1962.

in

expect

1963 will see

:

.

We

more.

looking

in demand for

the-part of Canadian producers has
growing awareness of the need for new
initiatives in industry is widely evident
throughout the
business community. While there are
already indica¬

the last two years.

purchased

that

,

expansion.

bit

rate of
growth in 1963,, which will be similar

internationally competitive

measures

little

a

therefore,

tain

The response on

12%. Much of this increase reflects the rise in
of

be

to

come

interna¬

from
up

has

We

been vigorous. A

higher imports, which in the first ten months of 1962
are

it

to

the

promotional programs

ex¬

Strong demand conditions in Canada have resulted in

prices

fact

of

the

Canadian industry can compete and
generally improv¬
ing the climate for growth. To
help producers take
advantage of the new opportunities

particularly significant aspect of recent trade develop¬
ments.

presenc

an

/These and other

of

is

with

a

materially extending the

machin¬

goods

line

with a sales increase overall of 4 to 5%, Last year,
had forecast for 1962 an increase of 5% and in point

a

prevailing

at industrial

more

continuing growth in

into

Tar, we are looking for 1963 to be a good

In Dominion

year

exchange value of the

research, greatly increased assistance for technical
training and various forms of financial incentives aimed

to

number

bring the

government's program include
the provision of more
adequate credit facilities for ex¬
port and * other purposes; encouragementto industrial

aluminum, petroleum
a

to

gains

figuring prominently in the past

lumber, woodpulp and

dollar

Other features

This

billion

President, Dominion Tar & Chemical Co., Ltd.

A central feature of this program has been
taken

HALL

N.

W.

de¬

measures

there is

one,

easy

an

confidence.

new

federal

of

not

Canadians to look to the future with

fields.

Canada's

years,

of $6.3 billion, an increase of

include

gas,

space

have

than one-sixth. Items

year's

1961

program

is

ahead

task

the

every reason for

production.

both;.domes7

show merchandise

the like

in

While

on

abroad. Moreover, the .establishment' of a
exchange rate removes much of the uncertainty
as to future returhs'
which, under conditions of a fluetuating frate, acts ps a deterrent to ther development of

similar increase between 1960 and 1961.

a

have

expanded

fixed

Fig¬

for the first ten months of 1962

for

ticaily and

Another key feature of the current expansion has been
the generally strong performance in foreign markets.
ures

drive

exchange fate shift of this: magni¬
important lift to "the wide range of :
industries competing with foreign;
goods,

/•

*

nroad

provides

should move

the Canadian economy

tional competition ah

stimulated

capital-goods

to the

development., After running at

the

.

tude

building and

has

tnese difficulties

from

increased

brought to

In

mid-year 1

at

na way

number, of years, the Canadian dollar
discount in 1961, and, in May, 1962,. was
pegged at 92% cents in terms of U. !S. currency.

plant and equip¬

anticipated

program

in

r

fully realized. This, together with the

rise

moderate

;

Canadian companies

large

steadily forward.

U. S. dollar for

ment. Available information indicates that the expanded

business

of

level of business capital outlays in 1963 about

suggests a

foreign markets,

the

action

was

improving

intentions

investment

of

:

speed industrial'development and in particular
strengtnen the competitive ability of the Canadian

nomic

CA>-

;

and

oeen

ine

companied; by larger dividend disbursements, has given
an

haii of

interrupted

interrupted tne upward

have

new impetus

to

savings.

sharply higher corporate profits,

ot

given

producer.

basis for

strong consumer market and increased

a

be
preliminary survey

healthy position and businessmen seem to

a

activity in the economy, on the contrary,

19t)2

arising

has

by only 1%.

This upsurge in real income has provided the

in

are

planning for another, good year, A

signed to

higher in the first nine
1962 compared with 1961, while between the
were up

cur¬

position.

unusually strong; inventory-sales • ratios

of consumers is

Underpinning Canada's currently accelerated growth

by all major income groups. Total

periods consumer prices

strength

however, important elements of

are,

in the domestic: market outlook. The t financial

.taxen to contain this down¬

aeveiopments

strong and important gains

incomes were 8&%

personal

both

in

marxets

Income trends have been

There

of

aram on tne foreign

was

balance

,

in

I960.

same

i^uick action

movement

persons

unemployed compared with 7.2% in 1901 and 7.0%

iirst.

was

is to be

maintained.

approximately

tne

iunas

if the

required

be

would

.

177,000 more persons were

have

of

movement

efforts

gi cater

upward momentum of the Canadian economy

>

on

even

exenange' i 5% nigher than in 1962, These considerations point to a
significant increase in overall demand in Canada in
ward pressure on the reserve position and a substantial
the coming year. If, in addition, Canadian producers take
full advantage of the new opportunities available to
build-up in reserves has subequently occurrea.
further strengthen, their position in both domestic and
Tne
oaiance
of
payments
difficulties encountered

employed, on average, than in the same period of 1901.
exceeded the growth in me
mere

an

inflow oi capital funds. In

thus giving rise to a sharp

The rise m employment has

labor force and

by

are

be

trading nation.

a

occurring in traditional patterns of

world trade Which call for positive moves by, this coun¬

try

Dealer

or

investor—write

our

Business

our

wealth.
at

a

to
,

□

Selection Guide

to

□

Short Term

W

Corporation Bond Offerings
Money Market Letter

Market, the United States, and the CommonAt the same time our labor force is expanding
rapid rate than jobs

more

"

cost structure is

relations.

an




60 Wall

vide jobs,
standards

Street, New York

our

costs.

internal

international
v

we
we

pro-

must manufacture; to
must

improve our living
control, at least, and reduce, at most,

Thus the country must export more processed

goods at more attractive prices to provide the jobs that
the

This

experts
is

a

relatively

J

our

words, to survive Canada must trade; to

'

Company Inc.

inhibiting factor in

Canadian

our

,

,

Gairdner &

months in

And to complete the circle,

-

In other

of Canada

appearing due mainly

are

vigor in recent

1

The Investment
Dealers' Association

less

somewhat

manufacturing.

Government and

□

Member:

Canadian Stocks

to preserve our position, vis-a-vis the European

so as

Common

Development
>

Department for copies of

.

world would mean

Any slowing down in the outside

previous

part

the coming year. -There ^ hasbee1* some
international commodity

markets.

improvement
lacier

that economic expansion will proceea less.,-

in

tendencies toward softening in

iirsc >: that

oi

tne

strengthening. In Western Europe tne expectation

be

vigorously

aeiicit of $710

a

Canada's large deficit

'covered

oeen

inward

uns

reserves,

sub¬

a

job opportunities, in the first

new

m

,.

nas

account

isoz

11 >

—

—

number of years

a

^

trend since

although business confidence appears now

is widespread

.

equivalent

12

Lumber

Expanding

r or
.

to

;

major

followed an approximately level

mid-summer

uencic

,

,—

Petroleum and equivalent

,

a

imports

value oi

however, indication of

is,

current

laoki.

account

of iut>z compared

tne

a here

year,

States has

rronr. vaiiaaian

transactions

tmee-quarters

include tne following:

tnis year compcueu witn iast year

applied ■

omies of the world. Industrial

wnen

iogeuier witn a sngnciy lower auver&e

exports,

lar

so

* s

suarp

in

rise

cue

the

of

some

in

nesnancy

m

is

current. situation

tne

moaerately greater rise in tne

in

banaice

figures

of

basis

tne

in

of

expansion

strong

ui

signs
industrial, econ- .
proauction in tne United J.

Meanwhile, as 1962 drew to a close there were

in

gave rise 10 a major upsurge

nnpons.

proportion" 01

isuciAg

ine

running ciose

nans

penous

domestic aexnana

larger

ciiases

industries and in con¬

steei

t^anaaas

Kept

lnucii

9

aemanct

real

ii'vim aoroau. Alius

suppucu

01:

oi

growen

recent

previous

voiume

uie

m

capacity.

On

to

increased

ln-

nas

apparatus

by 10% ana textiles uy

1070, appliances

Rising acavity in uuraoie gooas
struction

Conuaot

in

jrrouuction

oy

oeen

nas

ocuiaua

nave

vemeies

motor

ine

pare 01

say

will be

required

in the

difficult task at any time for

small

population,

but

■

a

next

decade.

nation with

particularly

so

a

when

,

(487)

traditional trading relations are changing.

opportunity to shift from

y

rial to

;

is less difficult in

markets

We must be1 alert,

down

however, else they pass us by.

H.

Distillery

Corby

to

are

to be overcome if .earnings on sales ,in Canada
trends

business

most

.of

seem

to

,

1963.

in

.

sight

despite

there

and

the

lack

of

mandate for Ottawa and

de¬

;

That

G. Ross Her.ngtcn

seem

Shipments

.by

HYNES

previous
the

Canadian

the

chemical

industry

selling price index for chemical products rose only

had improved sales, but

sharp

occurred in

increases

chemicals—a

trial

general

growth

business activity

"

'

"-V;"

enjoyed

improved

sales

sector of

the

Canadian

last ;June.

severe,

Leonard Hynes

manufacturers

competition

however, owing to the build-up of

industrial

which failed to share in the

export

sales

showed

a

to

other

during

marked

1962.

of

ex-

trade

export

the

to

United

States

Available data

indicate

that

sharpest drop occurred in exports of plastics; by

.

the
con¬

trast, Canadian imports in this category rose sharply.
Despite higher < sales last year, important sectors of
the

industry still suffer from overcapacity and down¬

ward pressure
the

prices. Faced with these conditions,

on

industry has intensified its efforts

to produce and
distribute chemical products more efficiently.
It is estimated that
ical

industry

in

capital expenditure* by the chem¬

1962

reached

indirect interest

about

ability of the Canadian

A central feature of this programme has been

currency.

;

<

'

'

continues to make the correction of

our

Turning to 1963, it would

,

appear
more

that the general in¬

modest than in

chief

emphasis

was

on

that
in

economic

the

expansion

coming

dencies

toward

will

proceed

and

chlorine, phosphates and

softening

in

international

These
\

economy in the

1961-1962

their

of

the

gests

will

R.

result

a

Chemical

concern

of

itself,

Producers'

among

long-term

other

problems

:

economy,

1962

economic

gains

realized

the largest in the post-war

among

recent year.

in

1962

are

than

the

realized

average

World

Free

1961

within

and

in the face of

in

more

increasingly competi-*

production

than in services and

a

realized in industries

tition.

For

the

Toronto

Industrial

below the level

recovery.

Average

prevailing

stock

averages

the

year ago,

a

as. an up¬

sharp advance

On the other hand, the closing months of 1962

the trend of ^business
,

approximately 10% lower than at
this time last year^ »'*
1'
*
'•«
♦

higher earnings and dividend

-outs: which materialized during

more

firmer

base

to

sustain

the

pro¬

H. R. Jackman

industries

major part of the gains have been

highly exposed to foreign compe¬

instance, 500,000 automobiles

international tension.

-

industry in 1963
the

second

capital expenditures
million

or

a

little

<

of

to reflect this

on

less;

although

project in this industrial segment

quickly.
•

In

continues

existing

products,

to

be

on

including

also, for the first time in the
chlorine.

of
can

:V

major projects announced

phasis

New

products" for




uncertainty; for

there may be a decline in
chemical plant, perhaps to $100

or

course

one

good

business

in

1963.

The

were

into 1963 and the longer term outlook contin
able for well-selected Canadian equities.

produced

.Continued

;

4-38701

.

under way,

of

the

capacity

Members: The Investment Dealers' Association
The Toronto Stock

polyethylene
capacity' is

of Canada

Exchange

em¬

for
and

Maritimes, caustic soda and
which

burns Bros, and Denton Limited

major

being

TORONTO
WINNIPEG

restoration

of

profit taking over coming weeks and the generous ap¬
praisal of current earnings may lead to some consolida¬
tion. However,
expansionary forces are carrying forward

BROADWAY, NEW YORK 4, NEW YORK, DIgby

change the picture
7. 77'-:;V7 '■

expansion

olefins,

-

much

only

Affiliated with:

year

a

Any. further extended market rise will depend
on increased productivity, but on the ability
industry to maintain and improve profit margins.

not

burns Bros.

-:

pay¬

prices.

capital spending by the chemical

appear

successive

v

•

present high level of stock

Canadian Securities

TWO

-

1962'together with -good

activity being influenced by rising

Recent estimates of
•

saw

while-American

are *

feel that

a

At the time of writing
is approximately 5%

continuing overcapacity
industry, a deliberately easy money and
low* interest policy and the prospect of
large government
deficits raises the possibility of monetary inflation. The
rapidity of the recent stock market rise may invite some

been achieved

growth has been

nounced

fully in the subsequent

in most lines of

tive world conditions.

This

first part of 1962 was not quite as severe in "Canada as
it was in NeW York, and Canadian stocks participated

The expected reduction in American
income taxes in 1963 may set the pattern for later re¬
ductions in Canada. While the fear of commodity infla¬
tion has disappeared due to the

the

Canada's

This expansion is all the

notable in that it has

sug¬

flected in Canada,

sur¬

in

history has been exceeded in
three of the past seventeen

years.

;

•

confidence and the lift given the American economy
by
President Kennedy's firm stand on Cuba has been re¬

recent

only

,

stock market last year we

The fear of recession has been replaced with
hope for

approxi¬

This rate of growth

the

passes

higher

8%

aggregate.

was

'

gested that 1962 would not prove to be as favorable to
investors as 1961. The stock market decline during the

reasonably

Canada's Gross Na¬

tional Product in 1962

mately

inventory-

-

On the basis of the latest pub¬

figures,

■

JACKMAN

^nd Anglo Investment Corp., Ltd.

strong;

relatively high degree of overall demand in

a

Canada during 1963,1

We

X

unusually

a

point to

and

competitive

pas been a year of
The quickened pace of business ac¬

the

a

is

healthy position, and businessmen
good year. A preliminary survey of
a

prospects for business in 1963 give the market

Canadian

advance.

in

level of business capital outlay in 1963 approxi¬
mately 5% higher than in 1962. These considerations

■

deal

Canadian

examination

ah

consumers
are

predicting

are

new

strengths

of

sales ratios

bolstered, the Cana¬

period,! such

in exports Aofhe United
States, may be moderated this
year.

ten¬

however, important elements of strength
outlook.. The financial

are,

$114

of government expenditures and

surge

some

commodity

in the Canadian domestic market

urea.

tions f that some, of'the forces which

vigorously

markets,

In our review of the

to

The outlook for. general business conditions
going into
1963. is less, eertain than a year
ago. There are indica¬
dian

less

There - have also been

year.

new
or
expanded producing
products such as caustic soda

capacity for -established

1962.

though business confidence appears now to be strength¬
ening. In Western Europe the expectation is widespread

in

■

activity will be

^cluding cyclohexanej Sprbitol and polybtitadienei but the

i

imbalance of

Industrial production in the• United States has followed? *
an
approximately level trend since mid-summer al¬

,

f

V

in

crease

million, or
about $10 million less than forecast early last
year and
$35 million below the peak year, 1957. Plants were installed for -products new; to Canadian manufacture,in-

,

10%.

growth

Xy Canada's chronic trade deficit with the United States,
together with an adverse balance on "invisible" account,

-

.•-«>. •••;„

~

tivity which started in 1961 continued in the

lished

sharp increase in Canada's

Sales

.

..

v.*•

intention

an

which

with

the

capacity

new

improvement, but chemical shipments;

fell.

areas

Canada's

of

vital

a

re-examining

are

formation

years,

formerly represented important

segment

"

up

accelerated

pegging of the Canadian dollar at 92^c in terms of
S.

environemnt which is evolving.

Remained

port markets for Canadian chemical products. Signifi¬
cantly, the chemical products group was the only im¬

portant

chemical

major oil company will

weaknesses and preparing to meet the new

As

dollar and the import surcharges im¬

in countries which

a

the

U.

either

alignments within the framework of that program.
In common with other producers in
Canada, chemical

For

the

International

participation of

field,

up

investment intentions of large Canadian companies sug-

H.

by the lower foreign exchange value
of the

currently

to strengthen the competitive

producer.

I,' '

* *

Canada's commercial policy toward arriving at

President, Dominion

groups were assisted

posed

»•".

.

44%, and steel production

Canada's

was

signed to speed industrial development, and in particular

from the
'

production

ore

result of the National Oil

a

payments ai paramount political and economic objective.

.

.

..

gas up

as

position

strong

some

y

indus-

previous year.
Sales of

a

*

i

tie-in with

a

-X'Xp-X.:X:777•

try, which includes pharmaceuticals,
-toilet preparations, and paints,
over

"1/

facing the Canadian economy and the chemical industry
in particular.

at

7

registered moderate gains

»

United Kingdom-E. E. C. pegotiaof continued favorable entry of

,

;"i.

home and abroad- Output of the con¬
sumer-oriented

\

Europe for Canada's mining and forest

'
IX '•

17%

Likewise, the industry is attempting to assess the
impact on its operations of the new trade liberalizing
program of the United States and the apparent shift

things,

last year—and in fertilizer products, i

which

'*•"'

Association

the

of

'

chemical

by

industry has also

products;

the

indus¬

reflection

of

"

growing

the
or

/

-

successfully with
changing competitive conditions is shown by the marked
expansion of research facilities within the industry and

the industry
particularly

segments, of

the

the,case where

prospect

Evidence

.

Most

,

rose

The advance was chiefly in volume, as

slightly.
>

is

K

'

chemical products into the United Kingdom
and expanded sales to'
Europe is not promising. Some
Canadian producers are meeting

v(:

up

Underpinning

all-time record level and

an

has been the broad programme of Federal measures de¬

.

trend

future markets in

This is

Similarly, iron

,

i

V

^

trade

in 1982, following a very modest gain in the
year.

The

1961.

in

that they can rise to the

President, Canadian Industries Limited

about 7%

sulphur
major"

first

approved, for the extraction of oil

J'»

chemical

good year for business.

challenge—and I am hopeful of the outcome.
LEONARD

the

:'

ditions

there

is, Canadian businessmen

set to prove

from

above

Policy, natural

expansion

further J

changing, export con¬
by undertaking production in Europe. As an
important: supplier to resource industries, the Canadian

clear

a

so on,

7

44%, petroleum

.Canadian

air and a sense of determination to
a

Some

however,

follow,

significant

tions.

is at least restrained optimism in the

make 1863

will

exports.

gas

in the outcome of .th£

pressing tax system, much dissatis¬
with

natural

now.
in1

slowing

marked

The chemical industry in common with most other
secondary industries in Canada has a substantial interest

are

up, a

*

•

r

30%

hyde operations in Quebec.

international

grave

problems in trade looming
faction

a

in Canada in 1962,

contrast

supply naphthas for -ethylene, propylene and acetalde-

many signs of activity in both governmefttal and business circles.
.* X

So,

of

company as in

Further,

Canadian ; suppliers

our

now

In

growth of western petrochemical sulphur

companies in
through direct production

have full order books with

let-up

no

in

acrylonitrile-

and/helium.

is

tnere

petroleum

,

on

volume

'

-

A

the other hand current activity
suggest quite favorable prospects fpr

improve, but

sales

and

isocyanates,

Athabasca tar sands,

serious cost-price

a

the

capacity

Limited

industry there is still

own.

squeeze

X

in

project,
!'

our

include

terpolymer

capacity, reflecting completion of the first

||

' G. ROSS HERINGTON >
President and General Manager,

projected

past few years,

phase

|||1 " ;'
In

the

to

rapidly changing environ¬

a

or

butadiene-styrene

large supplier of manufactured goods in world i

a

ment.

built

However, the

large supplier of raw mate- 4

a

31

MONTREAL

OTTAWA

HAMILTON

CALGARY

VANCOUVER

NEW YORK

on

v.-

32

(488)

Continued from page

31

One

of the National Oil Policy,

success

growth

of natural

the tremendous

production and the consequent

gas

continuation of

sales revenues recorded in 1962 suggest a
this trend in Canada

Production of petro¬

during 1963.

leum liquids in 1962 averaged 739,000

barrels

day,; about

per

Increased

domestic

this

being accomplished

sale

leaped to

E. H. LaBorde

estimated two billion cubic feet per day,

an

approximately 40% higher than the previous year.
forecasts

mand

for

indicate

1963

will be exceeded
From the point of view of

that

the

De¬

1962

gas

Canada

that, except for

changes

/

"

and

Conversely,

against

will discriminate

it

a

income.

The

industry

and

33 stale, news tends to lose its force
\-r.i and to be disregarded. Our pres¬

ident 3/methods
and the

experts have fostered the creating

"

though

suggests

The high level of

rent

competition in the industry

developments in

all

on

phases

million. Various
land

industry

estimated

are

at

$560

segments of the industry predict that

in

expenditures

the

of

will

1963

be

greater, particularly

while

the

of

economic

stability, there

facets

are

our

such
But

mergers

it

are

is well to

have

raised

inevitable,

speculations that

Perhaps it

remember that

there

may

well be.

the

■

many wellmanaged, aggressive independents which have and will

in

uct

,

has

the

*gtatf G%side for

;g

to

achievements

to

8%: and,

business

and

individuals have increased their
investment

Canada

in

$13.0 billion to

a

by

over

total of $18.0

billion. Over $6.2 billion of the
total represents

Canadian

bonds

holdings of

and

securities

and the balance is in direct

1956

equipment.

in

plant

and

world of

over

We

offer

an

service

securities

extensive
in

all

invest¬

Canadian

including latest

total

tations and prompt execution

of

orders in American funds. Our

Canadian affiliate maintains of¬
fices in
and

a

leading Canadian cities

coast-to-coast wire service.

in

account by an

on current

but this

30 Broad

Street, New York 4, New York

HA 2-9250

TWX: 212 571 0540-1

17 offices

across

Canada and

a

private wire system covering all Canadian Markets

they lead




;7

presumably were making
their sorrbw

since the

market

The

World War

II provides an

in

media

which

to

•

of

end

lent

economic

lying
tion,

y.

trend

.73933333'3';;

excel¬

examine

and

■. v

emo¬

3733333733

The Market After W. W. H
We entered the

^

-

*

y •

•,

with

'

to

me

believe that 1963 will be

is

now

experiencing something more than

and

Canada.

a

recession

we

case

cess

However, the same structural pressures, which

the

Canadian business community.
in

seen

our

years,

have

sector

of

experienced

the

economy

surcharges.

maximum impact
were

I

little

is

The
upon

have

yet

to

yield

7

;•

difficulties

come

as

a

surprise to

our

in

Canada.

of

7

towards

their

solution.

It

is

not

Continued

a
on

3%

33

in

—

from

infla¬

truly

excess

an

and

the

depression

the

demand

of productive

excess

activity

a

high level

and

upward

price pressure for years to

come.,

living

in

a

different

world.

From the third quarter of 1946 to
.

-

the

-r

end

of

1949,

earnings

rose

sharply, while stock prices moved
sideways with the result that the

-

price/earnings ratio dropped from

gain

page

of the

Yet, the stock market apparently

Ameri¬

improbable,

supply

business

.

I, therefore, hasten to add that

instance, that Canada might experience

suffering

rates

capacity guaranteeing

difficulties still linger, though we are making good

progress

for

may

friends who perhaps have only been reading of our

ex¬

time when the labor

a

was

for goods

their

3 "

greatly in

of the 30's. A

money
en¬

to effect the trends

>

noted.

years

tionary situation

these industries, and the latter
year

coming at

years

the imposition of temporary

former

manufactured, an

of the needs of the economy.

low birth

important

this improvement

out

which

supply accumulated dur¬
war

supply

is

enjoying the best rates 33

1955. Nor is
or

This

growth.

now

imposed too late in the

have

3

manufacturing industries, which, for several

expansion since

tariff

this

in

*

expansion in

Evidence of

plant

Furthermore, those demands were

inhibited growth until recently, seem to have reversed
themselves and appear to be encouraging

money

ing the

of very slow growth in

year

goods

a worn

insistent demand for housing and
a

cyclical movement. Were the latter the

might expect

inadequate

they might be;

"nor¬

a

demand

consumer

3 both here and abroad,

whicji Canada will make even more progress in these
problem areas. I am convinced that the Canadian econ¬
omy

of

sorts

.

year

a

postwar period

accumulated

vast

a

all

for
v

in

our
•

market

3 this conflict between the under¬

I have made these observations concerning the past

can

direct

over¬

,■

the

much closer to the 1929 highs.

3

1959, will again be sharply reduced in'

the year ahead.-

My comments

Company Limited

3the

appraised

and repurchased to

was

An affiliate of

W. C. Pitfield &

many

payments deficit, sharply reduced from the $1.5

of

Co., Inc.

;

still exceeded foreign
estimated $900 million,

receipts

tirely due to devaluation

W C. Pitfield &

1962

are

trying for the profits which their
friends

surplus and, when the final figures 3

payments

foreign

mal"

quo¬

a

time. There

V; and sold out in 1928,'only to find
that' they* could no longer resist

plus. When n6n-merchandise transactions are included,

for

ment

3

available for 1962, they should reveal another sur-

are

in

It is not enough

;7

$700 million but by 1961 we had managed ; 3

to convert this to

speculative

.

merchandise deficit with the

a

to

resisted

be

condition* of

bought

•

7

,

had

we

to

extent

right—we must be right at

right

.

billion deficit in

investments

be

the

;3 correctly

confidence1 Of both consumers andv
which were
expected to shake such confidence, f
T'"' \ ;
<3
y
33: It is also significant, T thihk, that Canada" has over;*;,
the past few years, almost unnoticed, made good progress
towards
resolving its payments imbalance with the 3
world. In

the

lag

one

stories, for example, of those Who

highlights the basic

producers, despite the occurrence of pvents

S.

should

their early stages.
*•

U.

seriously

pressures

-

.

devaluation, prices have risen "quite slowly in *■
comparison with other "countries. As a result, the total
volume of output-during the past year has risen by atH
least 6%. This is indeed a creditable performance and

1945

to lead

as

which these recurrent

perspective.

despite

Since

against his

the time

by,

long

so

question

of solid eco-

about

slipping

be

is often

strengths in '7

a year

by

risen

long periods when

the market was going

Gross National Prcd-

nomic growth.

A. T. Lambert

What

^position'and large profits seemed

truer

7 Canada has had

prices.

stock

of

long time coming. Even though
investor had ;the fortitude - to

a

.

and cast our exchange

economy

difficulties

.

,

not*b£ der$Cd?!hat

in Canada point to new

are

the

will be, but in the
stock market the "oqght" Is often

by the authorities

other

but

-; '

-

ought to be,

accom3,7,
.

Speculative

cling to the idea that-in

minant

h^ffe

measures

-successful,

more

to

dollar. It Can

these

chase

long run, earnings are the deter-

speculative pressure?sF$Kn

to stem the

The year 1962 will go down in history as "the year of

takeovers

resorted

were

takeovers" in which majors absorbed or gained control
of several independent oil companies.
These

;

panying "austerity.measures" which.

it,

taken in perspective, that arouse concern.
'

I

.3

'eign exchange crisis, and the

some

of

finds

the

Fevers 7 '

33 7,

.

,

around in the stock market, our for-

marketing growth indicates that the

petroleum industry on the whole is at last attaining
measure

-

During the past year our attention
has been fixed on the abrupt turn-,

acquisition and exploration.

And

in

Recurring

Resisting

y j

which augur well for continued

economic progress in the year ahead.

on

^

investor

up

several significant economic

Canada which have not received the

attention they merit and

caught

and
willy-nilly; become a speculator.

3
In my view there have been

the^ most:

for the quick apd easy; profit

President, The Toronto-Dominion Bank, Toronto, Can.

$710 million in exploration, development, production gas

himself

estab¬

well-nigh irre¬

are

Even

of

waves

become

conservative

and

During 1961, an exceptional year, the industry invested

processing and transport facilities. Expenditures for 1962

they

sistible.

LAMBERT

T.

psychology

lished,

73

When these

news.

mass

public. Both demonstrate faith in Canada's future.
A.

thus becomes sub¬

merged by the excitement of cur¬

greater degree of interest by the investing

a

really exist.
of underlying eco¬
not

may

nomic change

related

other

it

"V The hard core

Looking ahead in 1963, the outlook is indeed encour¬

#nd

and the making of in¬

teresting and exciting news, even
-

wth a
with taxable

company

is seeking clarification of this

production

communication,

of

growth of public relations

of images

legislation.

aging ■'in C exploration,

news
"news" when it is exciting
changing; When it becomes

is only

It would

rights will be • taxable.

gas

1

value,

3; We should ;remember that

received from

moneys

1

long-term

of

'7 however, is. so overshadowed at
.3; times!;:- by" short-term speculation
g3 as to" be virtually unrecognizable^

by Ottawa

"tax-loss" position and favor the company

sales revenues exceeded expenditures during 1962.

cases,

tax

small number of isolated

a

reflection:

need for

,

3

Continued from page

that if this legislation is interpreted in a strict

activities.

by at least 18%.

investment, it is acknowl-

edged for the first time in the history of the industry
in

surprising that with the

be

expenses,

oils

of

sense,

pipe¬
early in 1962, natural gas production

stream

on

Equity Prices
;;

<

With the Alberta-California

line

not

recent

appear

" '

:

would

by the

industry without undue government
restriction,

,

petroleum industry.

exploration

that the attainment of this objective
is

It

majors

the

surpassed

with respect to "'y
acquisition and sale of properties between companies is
another cause of concern to the industry,' Briefly, it is
presumed, under the-new legislation; that;qahd acqui^;^
tions for oil and gas rights will be considered part of 1

It is worthy of comment

year.

Canada's

The

Policy target of 800,000
day will be reached

barrels; per

in this,
activity by more than 60% in both categories. It is
obvious that an independent oil and gas company plays
a
significant role in exploration and development of
independents

And Outlook for 7

of

ratio

andj their

drilled

wells

of

7

independent to initiate, a major oil discovery during 1963.
The law of averages is on his side,
377333;37.3 7333,

markets,

particularly in the Ontario area, and
increased
exports
to
the United
States give added assurance that the
National :Oil

number

Stock Valuation y.

the

to

supply ^
by conventional lifting methods, it could be up' to an

This performance ipore
satisfied the Federal Govern¬

than

total

refer

to

additional oil reserves, presently down to 19 years

than in 1961.

ment.

the

needs

Canada

successes,

I

higher

15 %

only

Western

Chairman of the Board, Canadian Homestead Oils Ltd
The

healthy industry.
drilling activity in
during 1962. Analysis indicates that of

continue to help maintain a strong and

7—.:.

H. LaBORDE

E.

11
*

to

6^. From the 1949 low the

market did

begin to

move

ahead,

while

the

selling

in

general

8V2

at

third

the

gain

earnings

stocks

but

Number 6284

197

Volume

the

when

years

for

ket

listened

exciting
filled

the

This

with

y

more

and

It

market

the

that perhaps

believe
were

here

.

much

J

to

the in-

1946..

fall of

even

14

reached

which

that

mediate

far

insistent

more

been

In

:

consumer

•

the

1962

yet it was

■pHH

tarding

m

<

earnings

and

a/

as

1962.

came

to

creep

policies

,,vl

;

liquidity

decgde, ,if not later* '•

perhaps

provided

of

manufacturing

operations should

rr

rising

in

confidence.'-";:

earnings

of

the

glamour" companies

was

ing, or in some

appearing. Finally
wage/price

dramatic

vide

matter

of

treated
at

the

and

that

/

a

28

-;
/

the

blame

It

the

be

redundant

of

is

commented

comment

interest,

Toronto

at

and

Stock

Exchange

;K;

on

;closing;;df, 557.96^ and above the

mid point between the high of 629.06
and low of 503.17 for the year.

dramatic
which

was

larly,

five

prices.

provide the

unexpected

news,

investor to
been

did

it

and

Canada's

were

exchange

to awaken the,i;

Prediction

Recalls

.'.Vi-';

-

In
the

Years Ago

speaking

ject

is

of

.

addressed,
the

?

has

ago

which

the

on

ten

economy

to

?;

this

half

our v

of

would

omy

the period

be

potential

catch

up

curve

as

to
the

the

advancing
and

the

;

sub-

r

-

.,

R

:

econ-

below.;

closed.
on




page

or

works

to

conclusion

the

that

the

Canadian

less its current pace

more

next

the

not

leads

subject, however, to whether

12

months

general election

a

that J election.

of

of

its

austerity

or

next spring and

is held

The

program,

in
public

curtail

will

spending but spending by provincial and local
Continued

.

on

page 34

Canadian

Co

A|E. Ames
Limited

Underwriters

,

and

Distributors

-I.

U.

the

S.

Members Toronto and Montreal Stock
Affiliated offices in

re-.

A.

and

the

bank

rate

IHHHIBH

sixteen cities in

has

reversed—an

of

the

Henry E. Lang ford

the 6% fixed at the

increase

of

$402

million, about

previous decline, having. been regis¬

mid-September and November 28.

remain,

A. E. Ames & Co
Incorporated

While

the worst of the two crises is

now

1

^

us.

189.3

for

period of

■

exchange crisis to the present 4% and the

compared
the

to

183.8

in

October,

January-September,

$12,605.4 million,
*

'

Canada, England and France

'•

Two Wall Street,

New York 5

adjusted index of industrial production in October 1962,
sales

•

Exchanges

November

billion, after

June. > The

A. E. Ames & Co

iflHKHHH

1961.

a

gain of 4.2%

1962
over

1961.

period

Retail
totaled

the comparable

Merchandise exports from

January

October, 1962 amounted to $5,239 billion, 8.6%

i

over

to

the

the

government,

present

^

Wlp^ a|jRjjM8|

as

not.

will continue at

Turning to other facets of the economy, the seasonally

was

w

In.

34

been

two-thirds

problems

secular; growth J

Continued

from

of the

behind

years

would- then

decade

of

end

record $2.6

tered between

-

hence, I suggested that during the
first

continues

considering the outlook for 1963," study of internal

analyzed

contraction in the money supply from June to September,

;

years

group' to

same

paper

five

the

-

been reduced in three stages from

Five

of

at

in

K.

time
V ;

a

ceived
U.

in the making.

years

few

reserves

payment of the stand-by credits re-

news,

situation which had

a

and

Simi-

(including $400 million of stand-by "

Nevertheless,

dispute

ex¬

next

un-

credits)

and

on

however,

lapse

confidence

border

the

over

this

which it has received for the col- /

in

tense

and

are

Friday, Dec. 28, well above the May

y.

deserves

further

been

Industrial) .izidex,;i4psed at 575.15

erase

event

blocs

the Canadian Economic

decline in stock

'j-

I do not

of five; years.

on

sharp

V

re-

highs to sell

earnings

timely.

minute believe that the lat-

a

ter

1957

length;

stage would
'

pro-

Within

news.

the

times

gain

for

to

the

were

prices
May followed by the exchange crisis in June. Both

at

the steel

weeks, the market

to

15

came

flatten¬

controversy

in

of these events have

actually dis¬

cases

China-India

Presi¬

extent

some

power

ilgiilgf
1962

of

less

somewhat

to

great

II. E. LANGFORD • ■
President, Chartered Trust Company, Toronto, Canada '

.,

the

newsworthy events

trend

two

Investment: Securities

•#:

Scene

waning

atmosphere

the

pro¬

The most

to

the

scene,

the Cuban situation has

on

mar-

Even worse, the^much advertised"*

clue

over

:

On the international

•

;

satisfactory Volume of sales at better profit

a

*

not leading to in¬
vestment at previous rates and in

The

that there

so

manufacturing industries

rising'

and

were

retrospect

toward the

for new plants and

the latter i

flow

industries

goods both by government for public works and industry
equipment. This outlook and further

and "instead i-of

be

a

the

case

every

Canada Iron contemplates a strong market for
capital

vide

j

many

the

political conditions in the provinces for

clear

to

economy

ac¬

mod¬

in

and

trouble spot, whether fighting is resumed^or
In

among
an

if

provincial field there have

elections

general

between

conditions

and the results attained in export trade.

•

consolidation

cash

a

neces-

a

the

of the Canadian economy in 1963 will be
gov¬

course

being right around the corner had 'Xi
of the

to

pursuit

been' pushed

Corporate

programmesj and

them lower interest rates and

of friction

again raise the bank rates a3

In

12 months.

months.

development

improvement of facilities

capacity; continues toj exist in

ernment

that the Golden 60's somehow had

off into

helped

products will

many

amount

Kennedy's strong stand

results

the

into financial and market writing

been-? sidetracked

dent

the

progress towards greater
efficiency resulting from the re-alignment of products
and manufacturing facilities. The
primary influences on

Realization

beginning

slowly

when

although there-appears to be

,

Realization Mood of 1962
Then

come-

policy which

an easy money

certain

a

measure.

the next

ductive

;

earnings'had in fact

continued to rise.

has

to

& should be stable

be anticipated

'/$ ftecent encouraging signs,;

-

pressure

it may, it is well known that the

as

necessary to

several

erate renewal of business expansion in 1963. Excess
pro¬

much higher prices for the glamor

stocks whose

continuation of

a

can

tive stock market, suggest that the prospect is for

whole, and

a ;

'

-

,,

was

prompted the gov¬

party previously in power was re-elected

saiT in the long term interests of the

H.J.Lang

of 120 times earnings

market

for the

been

tighter

,-j' companies.

better quality of earnings to jus¬
a ; price

I

certain policies.

it

Nov, 13, instead of a more moderate

on

that

lead

defensive

pected

v'

left' the

exchange situation deteriorates and the Bank of Canada

relations

the

instead I;

stressed

Be

well

for

aggregate have not ad- ■
prices^-rQse^ahother ^ ;
The security • analyst ;;>fell -

net

reduction.

adequate earnings will be available

*

the

first

from 5% to 4%

of the

one

higher interest rates. This

time

on

opinion has been expressed that

undoubtedly have to improve to that

vanced,' but

back into using <cash-,flqw~

the

June

unsatisfactory position

port may well have to compromise

a

selling price of

*

growth stock* Over the- '

past five years corporate earnings

will record

price levels. It

that

in

problem./

a

of: problems.

ernment to make the drastic reduction of the bank rate

also contributed to
low

the

from the Social Credit Party which

expansion 'through

credit and

the*

of the day to create

news

half

trade

deems it

over,

is

the support of the minority Social

on

V austerity measures taken at midyear
' had the effect in some sectors of re-

new

a

flation, the vision of the Golden' \
60rs, electronics and space became
cult of the

having to rely

election

in

may

I

and
at this point' that in-6
was

government

particularly active year
peak in volume of sales. Government

experienced

close,

Credit Party to remain in power and to retain that sup¬
The

Canadian economy

inconclusive', general

Diefenbaker

-

>

postwar' inflation

Politically,* 1962 has produced its share

of

a

industries

unemployment has decreased—5.8%
labor force being unemployed in October 1952

the

/The

participate in the

international

-

the

on

the above

the year draws to

compared to 6.6% in October 1961—it is still
1

re¬

While

Party is strongly in favor of

reaching

ning to -compete for export mar¬
kets.
For
the
time being,
the

was

improved

towards

was

as

productive capacity in most

1956. Canada Iron

"excess •**

met,

Western Europe was again begin-

■

of

ex-

for Canada

year

highest annual increases in Gross National Product since

;

f

tify

proper

President, Canada Iron. Foundries, Limited

'

plant capacity had been built and

of

our

postwar

demands ' had

40%.

a

of

still evident.

H^J^'LANG//

prevailed in the im¬

1958 the

surplus

a

not^ of ^ course^ make the kind of progress v which

twice

over

or

earnings were

in

concerning

assurance

fairly prosperous

a

^ brief statistics-illustrate.- As

pro¬

expect, unless the world economic climate is favor¬
able. But given that assumption, I believe that we will

relations.'.' "

period
when
rising sharply. By

th'e

greater

This

I

development

'

rose

with

us

level.

and the price/earnings

more,

ratio

prices

/ In spite of the two crises referred to, 1962
whole

foreigri exchange

our

comfortable

more

make further progress next year and

fey; 1957 earnings had continued f
their modest rise, but

again in¬

chahge rate-for the Canadian dollar, » 1 ... i
*
t "should like to end. with the thought that Canada
can*

^

in the

as

vides

much

a

ability to_: maintain what I believe to be

t

\'

good. times

earnings

once

gathering steam and the

now

imports imposed at the time of the exchange

on

This trend is expected to continue.

'

y

again willing to pay

for

build

term funds has enabled iis to

began to

stay,. and

to

ve;stor was
as

really

crisis.

vesting in Canada. The inflow of both long and short-

not until 1953 and 1954

was

export drive which is
strictions

efficacy of our new fixed exchange rate and

provided proof of his conviction by

reserves

that

ex¬

The dramatic increase in exports has resulted from the

similar rate in the year ahead. Similarly, the for¬

a

has

Market Finally Moved,tv

impressive gain of $59.2 million in

an

having risen by 5% in the year just passed, should rise

ness

postwar^, recession
and collapsing prices, V; .w

com-

surplus of $93.4 million in 1961 but the pic¬
is not as dark as these figures suggest. October

ports whereas imports increased by only $17.2 million.

eign investor now appears to be convinced of the sound¬

news

$5,276 billion,

were

These figures disclose

year.

a

figures show

community, for capital formation

previous

trade deficit for the ten months of $36.7 million

ture

optimism is already apparent in the busi¬

investment

above the

33

private sector in Canada is on the rise and, after

at

employment,

When the

11.6%

unlikely event over the next 12 months.

an

new

and

in the

which was
dire prophecy of un-\

spot

pared to

ness

consumer

to

only

a

half, not

r

material, the stock mar-

war

comparable 1961 figures and imports

in

in

starved of goods to make way

was

32

exports in 1963 and a similar drop in imports. Such
movements in our favor would cut our payments deficit

underpinnings created by the long
war

(489)

in

economic

strong

the

garding

still

1953. Disre¬

quarter of

The Commercial and Financial Chronicle

Continued from page

slowed,

were

earnings

times

...

Business Established 1889

34

The Commercial and Financial Chronicle

(490)

With

33

Continued from page

expected to counteract that reduction. v ;
probably decline but it is hoped that
the export drive will stimulate the manufacturing in¬
dustries. Spending by secondary manufacturers and utili¬
governments is

States

installed

dependent

Since Canada is so

/
;
economic, conditions *

on

considered:

ing factors have been

,

(2) The ratio of total inventories to

/sure

is

next few months

the

over

possibility.

•

at

mid-year,

J

view

of the

/

typical

>

the

the break

with headquarters in the U, S., con¬

,

United

the

as

same

dollar of sales. I would look for

minded

;

,

look for in

that I

1963, the printers in Canada should

expendi-

corresponding decrease in government

much-heralded

MrN Kennedy's

tures,

cuts

tax

cannot

the situation,

Province

the positive factors out¬

The

weigh the negative ones and the outlook for 1963 is for
continued economic health for Canada, with moderate
If the export drive

growth.

towards

trend

increasing

continues strong and the
expenditures gains

<

period, similar to the mid-1950s.

outlook

The

for

the

in

commercial

the

past

Canadian

Government's

sector

namely

June

25th

it

make

material

into

businesses is
of

costly

more

Canada.
now

bring

to

increasing,:;:

And

the

attention

firmly focused

more

The message

borders.

of the

Canadian

But there is still

ing Canada, estimated in

a

volume of

excess of

estimated

been
of

the

expansion of population,

\

/

Gerard d. Levesque

and
,

production,

«r

Insofar

as

an

,

.

employment is concerned,
was

in

noted

the

.

-

-

ter of

industrial

in

our

Commercial Letter,

and

decrease in the

a

to inform
.A

business

interest and

men, on

matters

- •. ■ - •,;

of

,

A/ /AAA ^/./ A A A*

service sectors

show

a

/

;

Variations

v

/

,,,

// Your letterhead request will bring our
Commercial Letter to you
•

''v\-In Canada It's—

■

; A/\ /

production sector, to which the fol'

*

.

in the Gross- Value

CAN A O IAN

/

A/

A

BAN K

/

of Production

;/

Head OLice: Toronto
Over 1250

i> Canada

Branches Cover Canada

New York Office: 22 William Street

Telephone: DIgby 4-3801




-

-

quarries-_-,:A
1

•:

Furs
Electricity.

/

•»,

—

.

-j- 6.5
-j-14.7
+

,

5.5;/// + 11.7
;

//--

/

A

A*

v

-

A

1 - '

+

3.5

-f

7.5 /■'/;-;/-"/;;y.-//A//:.

-f 6.3

■-':/■/•/;

series

of Government

the economic and social.welfare

v

'*

figures presented liere

.-.a/,/1 V.'

•>

measures-

-

in

-

fields; technical organi-

compiled by the Economic Rethe Department, of Industry and.
data of the past months only.

A /'/•'///-".-/"

C

-

;

awakening to economic;;
return

a

temporary interrup-

a

ever

we.

as

period

during

his

sights to

•

to an/;
which, ■>

■

and:/'

psychology, changes;

stock

:

a/

If

the former.

look forward

may

extended

opinion it should

my

interpreted

of

/

long-term trend towards- / 4
higher
evaluation
of -

a

market

♦ <

buyer slowly readjusts
lower capitaliza¬

a

earnings.

-

Inflation's Dormancy

Political action working through: i
the media of monetary and

influence,

can

fiscal

not

but

; *

Continued on page 35

•

and

The

balance

of

payments

gold outflow problems can be

expected to put a damper on ex-

and

money

easy

-A
-

very

;.- r

is

were

search and Forecast Division of
Commerce and are estimated from

■

continuance. -Did-the

merely :

tion of

cessively

j

::

~

low

interest

"hottening".

.

,

zation for the. rational development of small -business and
IThe

nearly

tion

/

upon

that will

earnings; more?//
consistent with the past,

trends.

This exceptional expansion in Quebec, consequent upon a

'

must ;

we

create, fundamental, economic

economic recovery in the North American hemisphere,

of

:/

18; In apprais-

over

reality- and* the start of

policy

5.2

Value of Gross Production-;

50 % of the" /

over

•to.. • evaluation ^of

=

-j-

also the result

first rude

-f-14.1

w-jj-Si.

Construction

regularly.

OF COMMERCE

r

• •

The* price/earnings

psychology is based

the

Manufacturing

/'/A/'/v'.A;

imperial v. : A

*

_•

and

Fisheries.
/.

decline.

so,

and the third quar-

Forests, cut wood-

,

.

;:;'■///•////

:"£■ /v/;/A*;/

:

early tax cut to

an

be

Agriculture

/./ -•

opportunity in Canada.

.

expected automobile X.

ratio is back

an

By Sector, in Percentages, 1962-1961

Mines

•■

~

the

1963 have been coupled with the

or,

(

.

1962, Quebec showed.,consider able cfevelopment in / •/

;.

timely

better, than

/
-

fol-

States

crisis,

decline of last year represent, the
;•

*

*

lowing table bears witness.

,

designed

Cuban

/earnings? In

all branches of the

''

■,.

the

,

Confidence /

the sUnitecl

of

.

international

improved

justify- its

industrial sector. It

Between the second quarter of 1961

.

,

The

sound economic grounds

upward trend in the service sector and a reg-

7.6% of the labour force A

:

•.

j

flation

/

,

(yearly average). In the agricultural sector/the decrease was 7.8%. This sector accounts for only

of Canadian industrial,

year

leading

decide whether the reviva! of in-* /
.

'■

of the

up

over¬

s

ing the outlook for 1963r

K/AAyf//aA/A/

course

of

sp^t news of.the mooment.

ket has recovered

v/

rapid percentage pace: 4.2% in 1962, 1

a more

combined

The

/ /is covered in the

catching

creation

towaJids4. general price stability,
in fay or <of/the :mqree" glamorous

1962

gain of 5.3%

'./•■/;>;/

■

disregard

of inflation psychology.; The mar¬

represents 28.9% of the Canadian total.'
,
/
;.
The labour force has and will follow the population

ular decrease in v the. agricultural sector.

,/

the

assumption of

spending.;.

1971, respectively. Presently, the Quebec population

showed

commercial, financial and agricultural topics•

the

of

.

previous year. It will increase by 12.3% and 26% in 1966

.

V

end

war years

a

market
of
last
fall, and the
budgetary deficits in prospect for

.

population of Quebec. in July 1962 (most recent ;.

The

rate.- of increase

A wide range

the

lowing

,

employment,

14% in 1966 and 27.9% in 1971.,

IN CANADA

recently,

more

stature

gross

estimate) had reached 5,376,000, a rise of 2.1% over the

trend but at

about business

instance,

form, the basis forra restimulation

printing enter¬

from the United States alone.

first

the

Recently Improved

Population and Employment

Manufacturers'

per year

the

that

powerful,-

guaranteed by the

omy

•

-

production would

Quebec

public and,private income and

national

$200,000,000

JmM

j*

tfm '

goods and services, $6.3 billion. This growth is due to

Association "Buy Canadian" is becoming more and more /
effective.

has

*

,

preliminary study

a

the most recent data, it

on

urgency

our

the economy,

IT™HH| * /
jHi

<r

$11 billion, personal income,
$6.7 billion and personal spending on

printed

the

on

reducing their purchases from beyond

^ V, A

but

capacity and. the development of
v

dy-

of these

awareness

other fundamental forces

IrT

nature,

exceed

Canadian

of

and based

value

Emergency

foreign

of

According to

continuation of

a

Program is most certainly helping in three ways. The
extra emergency tariff surcharges imposed on imports
and the increased foreign exchange differential in many
cases

urgent

an

made this period one of the most

printing industry in

year,

of

'fill

namic of the past five years in every

volume with decreasing margins.

The

HP
Wf

tions generally, coupled with the al-

undertakings

In

process,,

lotment of Government spending to

of fun^

blindness to the high level econ¬

and,

.

1963 appears to me to be

experience

/

In 1961-1962 good business condi-

President,,Lawson & Jones, Ltd.

^

A

proportions of major importance in

-

five years

some

moving,

trends.

the three pre-

are

of

♦TOM LAWSON
,

health and welfare in 1962-63—these

In that event, the close of

the beginnings of another growth

see

stock market's

slow

dominant factors which have gained

slack in productive capacity and unemploy-, i

should

year

higher than last;

6.3%

lag

a

damental economic trends and the

personal disposable income 4.5%, the Government's ;
allotment of 60.1% of its net expenditures to education,

consumer

ment will be less noticeable.

the

of production,

find

we

between the termination

year,

momentum, it may well be that in the second half of
the year the

value

gross

tempta-

since the end of

years

World War II of

Quebec, Canada

of

retrospect,

during the

LEVESQUE

Minister of Industry and Commerce,

be adequately considered at this stage.

Summing up

GERARD D.

HON.

:

1928. to *

the

to reinstate

In

by leading U. S. legislators to any tax reductions with-.
a

1929,

the

irresistible.
*

out

in

of

with

; his; position
at /
prices ' with subsequent /
losses would probably have been

profits comparable with this year.

have

As

higher

But

opposition which has been expressed

tion

.

period

long

a

prices?

back

come

profits per dollar of sales during the coming year.
because of the high level of economic activity '

For. where/ do. T ^

who sold out in

person

t:

of

such

advancing

cents per

•

he would

came^

.

through

/

sold

before ; /

find< the «individual, strong. .X
enough to' stand aside// /

you

.

slightly reduced, level /

a

finally

have been wrong,

:

States—namely 4%

investor

long-term

out at that time, five years

hours, by strong and generally /responsible inter-/v.A;.

levels in the printing;
industry in Canada, indicate that these are approximately

part of the year has been forecast.
In

on

'

tax-

or

exempt bond's at improved' yields. /
And yet I, believe that had the /

v

,

■

medium-term

United States Government

The latest industry pretax profit

in the early,

substantial build-up

a

replaced with

increasing degree

A'

sources..

'

one's stock

position could have been Sold and;

,

(3) Steel inventories are particularly low and as the
labor contracts in that industry are due for re-negotia¬
tion

.

terms of the averages,

amongst the highest paid in industry /and will undoubtedly achieve new <
high levels of income during 1963.
A

comf X

.

Continued from page 33

being widely

of

tinues. Our tradesmen are deservedly

definite

a

most

and

upward pressure on wages and downward pres-

national unions,

paratively conservative 1.5 times. The brisk rate of sales
in recent months has led to the belief that inventory
accumulation

t

Canada,

other outside

,

in the U. S. A.

sales isvat a

in

Equity Prices

welcome move indeed

purchases/ are being supported by suppliers and}//

The

<

,

(1) It is estimated that housing starts
decline to a level 4% below 1962.

these

:

follow-};/

the probable effects of the

in the United States,

very

these purchases on their own, and to

i

^

/

a

the basic printing
processes are being improved. However, many companies
are
finding it difficult to generate capital to finance

in the

A similar trend has been observed

continuing.

would be

printers.

Faster and more efficient machines are

Incomes are high and/

of cars and other durable goods in /
been better than expected and the trend is

United States of America.

border

for Canadian

Purchases

have

1962

And Outlook for; /:

against Canadian printing), it is virtually
impossible to export to the United States. Equality of
treatment on printed products at the Canadian-United

forestry are expected to reduce

strength of consumer spending.

rising.

Stock Valuation

procedures

A stimulant to the economy is the

their expenditures.

Thursday, January 31, 1963

higher

costs,

paper

.

machinery, and with the combination of very
American duties (and difficult administration

high

will increase but primary indus¬

tries such as mining and

printing

Canadian

.

of

costs

Housing starts will

ties for new facilities

higher

.

.

force

tion
will
some

rates.

up

curtailment
of

civilian

continue

time to

second

half

to

of the

goods,
be

come.

of

Barring

of the cold

a

war

to

produc¬

inflation

dormant

for

Not until the

this decade when

>

//

■I

Volume

Number 6234

197 *

..

.

The Commercial and Financial Chronicle

(491)

the 25 to 30 year age group

begins to increase
markets

again

to

capacity

which

develop

to turn

as

Continued from page 34

,

the

will

dominated for the past

five

the

capital

goods

which

is

being

the

these

periods

frenzy.

\

/

-

-

economy y

y

-

If

the stock
be

is

past

••

idea

the

this

y

dinner

that

table

„

rekindle

will

we

chology

typical

buying

of

I think

investment

towards

markets./

paying

'/"if*s ff „>i\

For some time to

i

earn-;

y

I expect

come

forces/ will

-

.;

business

may

areas

evidence that the idea of

a

net

•

to

for

,

is

good, despite

has

the ;

.

,

a

proceed into what

over

This

that the main objective established under the

outlook for the petroleum

demand

4

HON. W.

Premier, Province of Saskatchewan

climate

The year 1962 will go into the record books as the first
year

of definite growth in the Canadian

prices,

the

that Canada's Gross National

is

consensus

Product in 1962 will have increased

by about 8 %

over

the 1961 level.

in

products

Continued

1962

on

page

36

were
year.

Your

./y stantiaF.improvement •exhibited, by
;
general business conditions..The ex-

multiples for. earnings.^;;

in per

Looking ahead, it appears to me that the level of
business activity in 1963 will be somewhat higher than

approximately 10% above the level of the preceding

fthe* stock buyer to pay. ever high-:;

economy

capita Teal terms since 1956. In terms of current market

/•y A somewhat greater advance might logically have been
yy expected in. view of the strong underlying growth in the
ydemarid for chemicals and the sub-::/--yy:. ^

day will hardly, foster theh

y y

Headquarters &{

:yr-yA for /yA?'/

/y:Conadiany/t
y Information / /

yy planation is to be .found in the in- y

,

y . creasingly ■ greater: difficulties
en;Vy.countered by Canadian producers in

Favor High Proportioii; of y
Equities'

yy

forging their

believe that the inves;tor Sboitdd-CQntinue^td hold a/high

.;

stocks! for

y

I firmly,

;

proportion of, common;

.

.oh)y ;j3y;this
in

•;

expect ftiuch, df any; pver-all rlse.;v

y tendency
y

I

.;

growth

earnings,

of

nr,

„

find

market

higher prices for

^

stocks; of

The

•earnings^

likely

,,

-

'

-

those

to

become

companies
succeed in

•

average

i should 3-.

whose v managements"
maintaining an; aboye- y

,

of earnings growth ;

rate

continue

earnings

at

a

the' market

as

a

than

price

|

year.

serving the

bank with 900 branches across

The y

consumer

;

*

K

HerbertH.Lank

/:.;

:■;?i

yy!yyy-^/:-yyy
inventory

some

:

a

significant

gain, but the ad- y
.yance in 1962 Was less than that of prior years because /
of the import competition offered
by excess" supplies
y throughout the world. 'For rmost other products the

the

years,

such

common

-

growth of markets has reduced the

't

excess

pacity of

normal level./ '

though

it

/

longer.

y

;y

;<

An

16th
the'

address

annual
Chamber

Canadian

by Mr. Morehouse at the
forecasting
conference of
of Commerce, of Greater

Philadelphia, Philadelphia, Pa. j




y:;

of the

Street office of Canada's First Bank.

Make it your

headquarters for

Canadian information.

: *

/

/

-

ca-

;

y y v

TO 3 MIUI0H

CAMDIAK

expected

year. How

r-

and-the

depreciation

be stimulated

of

the

by the

dollar,

which

production and sales in 1962, cannot, of
course, be

dieted. But if the present

y
v

*

in Canada is the

major function of the Two Wall

pre-

competitive position opposite

producers is maintained by surcharges

or

other

equally effective measures, the rate of increase in chem-

ical

:

Bank

Montreal

of

important factors in the industry's high level of

/ world
may take

a more

long the industry will continue to

■-

temporarily

bought at too high a price, but

"

few years ago to

from the high level of general business activity

/-surcharges

v

even

north of the border. Pro¬

yy For .1963, the Canadian chemical industry will benefit

were

invest-

should provide profitable
ment

a

.

stocks ;

you

viding the facts and services you

.

■;

tiples than in recent years. Over

Canada, is uniquely equipped to
serve

need to operate

,nj

achieved

J to last at least throughout the first half

mul¬

of

organi¬

century. The B of M, a $3.5-billion

ity of a brake on a further increase this year. Plastics, : '
,.which is one of the fastest
growing sectjons of the

.

y

at

whole,'- but

absolute

Agency

First Bank, an

U. S. businessmen in Canada for a

;r

capitalize }

to

higher

lower

relatively

•

New York

zation which has been serving

even

in the years ahead. ^

'-

t

the

Canada's

-

particularly strong although

was

given level of y y/y ^ dustry, again

a

mLi

of

re- 'i

accumulation towards the year-end suggests the possibil-

>
...■ =

willingness to pay ever..,

a

is

marked

other products

:

than

rather
,

....

.

:

Two Wall Street is the address

this

and

jydemand/.!for;man-made fibres.?and

prices to be geared- closely to they :
to

more

advanced during the past

-y

t

commoh stock

expect

exports,

<

;V;:;

Sales of most industrial chemicals';

value; of the stockv-market

Such;

as"

Canadian

»■*

•

:

.ever,ithat; in 1963 one: Should^ nbty*.
in the

mar-

industry abroad has the effect of

Educing

'{■

;.

means; may. one par-

into export

.
--

Vy kets. The expansion of the chemical

tjbe ^grovi^thv of -^OUt.;,
;econbmy,Ifurtheribelieve,:hoW-;;
; ticipate^,

way

production

exhibited

throughout most of the coming

in

1962

year.

;

S. LLOYD

President, Pu Pont of Canada Limited

appropriately designed

industry in 1963, in

reaching, record levels.

.

HERBERT H, LANK

related

,

a level approaching 800,000 b/d, and
slightly higher level by the end of the year.

a

means

The

few structural difficulties. We would

and

level-

summary, Is for moderate growth with production and

understanding and collaboration, which

chemicals

a

National Oil Policy should be achieved.

opment of Quebec.

of

to be

8% in the average daily production rate for liquid

peaking to

become increasingly indispensable between all ele- *

Sales

appears

hydrocarbons to

society and the Government, could establish a
healthy environment for the economic and social devel¬

psychology of :ihflatiOh iWilling•er

through

The year 1963 should show a rise in petroleum demand
of close to 4%. Present indications point to an increase ofy

ments of

com¬

we

as

i

like to add that

itoyfit postwar inflation, ^he/newsy
•of the

exports

ing-off in the current business cycle.'

,

,

"***■

-J?

tax ' legislation

present

was

increased

The economic outlook for 1963 allows for cautious op¬
Most of the principal economic indicators add
Up to a pattern of further growth, although the pace will

.total expenditures of the fiscal year 1960-1961, the

weakening economy and to f

to

of

;

In Conclusion, we may say that the economic

U

stability and deflation in con¬

trast

a new

hewly completed Alberta-California big inch pipeline.

machinery and equipment and $401.7 million

vestment in a worldwide economy

/which

impetus

should

continue

-

BRANCHES IN ALL TEN PROVINCES

;,*

*

/ ;

District Headquarterst Halifax, Toronto, Winnipeg, Calgary, Vancouver
NEW YORK»Two Wall St.

•

SAN FRANCISCOi 333 California St.

CHICAGO) Board of Trade Building, 141 We»t Jackson Blvd.

Wead

Office* 7fa*tnc*l

900 BRANCHES IN CANADA, UNITES STATES, GREAT ttfTAM AM

EUROPE

«

RESOURCES OVER $3-5 BIUION

/:A

5

peak level of approximately 2 billion cubic feet per day

moderate

/A I■

y

final (800,000 b/d by the end of 1963)

rent and household

on

.

;1

icy initial (640,000 b/d in 1961) and

targets. Natural gas output rose by about 40% to
the

i

em-

the mid point of the national oil polA. Neil Lilley

under

•

condensates and liquified petroleum ;/5
gas, for the year should reach beyond *

#

^
K..:V'V*>U'Kv-::0■■ J-'•

f rg^i^ represents 97.6 %.

1963 tax bill is

a

A

>c"

provide Incentive for capital in¬
of

v?..*

education, health and social welfare. In comparing
the expenditures for these items ill 1962-1963 with the

is little
big gov-!

to be argued as necessary

bat

^ *.f

to

'ernment does hot -continue in the

If

A

-

utive fiscal years (1961-1962, 1962-1963) has and shall
allot 53.3% and 60.1% respectively of its net spending

,

be hurt by

tariff adjustment.' There

ascendancy.

♦

spend-,;.;

Production pf crude oil, along with

Goods and Services

The Government of Quebec, during the two consec¬

1962

of

.,

for housing.

incorpo-y
rates
the
philosophy : of' directs
subsidy, for those .compa.nies,
whose

-r

j

on

million; for food, $1,687 million; for
clothing $714 million; medical care $417 million; trans- ;
portation $758 million and on miscellaneous items $708

lion

trade.
We may also look forward to in¬
creasing government influence In
business wage and- price .policy.
Bill

vv"!

Of the $2,090.3 million invested in 1962, $1,063.1 mil¬
lion went into non-fesideiltial construction, $625.5 mil¬

international

Trade

/

foreign trade, capital

y

~-y

/

$2,346

million.

y v* * •1

possibly; deflation in those

The

,

sales

new car

the factors contributing
general buoyancy. Improve-

y

spending will be 5.8% higher in 1962 than in
investments 7% and government expenditures

expenses

an

be making for price stability and

to

'

high level of

timism.

.

fundamental economic

subject

;

)

conditions in western Can¬

y

of Government
iV.1'1-y

y

Quebeckers would have spent

.

_

*

ing, industrial production and
ployment were achieved. V1' '

.

nondurable

against

;
Role

y ;,, y,yy

.

a

ments in

Personal

1961;

forecast

among

the

to

y

estate, goods and services will be in excess of $8.9 bil¬
lion, of which 30,9% in investments and 69.1% on goods
and services.
/
"

:

A'

V

psy-

historically high yprice for
lngs.

in the number of farms,

concentration in ;

a

guard

on

were

appreciable

an

crop

ada and

this, considering the particular aspects of
constitutes

The total of public and private expenditures on real

goods, leisure time and service
industries. Above all, we should /
be

good

$194

Governmept revenue,, .according/to .estimatesr would
1^.7%more ,thanv tbq preceding fiscal year,

the

oriented

Consumer

as

generally
,

dollar,

Public and Private Expenditures

goods industry and direct invest¬
ment

activity in 1962 has

was

crease by about 7%, reflecting gains / y;;: y?y
/in most sectors of the economy. The
devaluation of the Canadian

than in 1961). Salary and
sector alone amount to

i

should seek
capital

we

outside

more

be

frenzied

bull

major

(4.8%

manufacturing

v..

shop

the

the

of

Until then,

v

than

that the Gross National Product will In-

are

over

1961 and would -reach. $1,1 billion.
,,

the

bridge,
barber

the

or

Indications

Corporation profits before taxes would be superior to

of

ladies'; afternoon

the

and

sector,

well

as

quick profitsy
becomes, the order of the day at y
gossip

LILLEY

The pace of the Canadian economic
been somewhat

gain in view of y
the decrease in the number of people engaged in
farming y

It will, not y

of deflation.

until

be

any

the

in

million

indoctrinated i to

thoroughly

NEIL

stronger

The net income of farmers would be in excess of

.y/iy:*!;/

precedent,
market by this time will

the

welfare

$1,802 million.

;syy

y

A.

President, Texaco Canada Limited

y'y

.

.

6.7 billion dollars

wages

to f

,

,

/:?/■'?*A ///;/■v-:
y/Yy/ Investment Advice

health,

for

Disposable personal income will probably reach

speculative:

of

spending

the

years

leading

psychology

y

boosted

also reflected in the economic growth

was

■?.

'

;

market

about this time last year.

to bring into

necessary

increased

of Quebec.

by nondurable goods and services, :C
into

; "/' /> ,'.. :

agricultural

the

of

The

and education

economy,

our

expansion

economy.

productivey

upon

press

so

again
expect

we

can

35

•

y

36

The Commercial and Financial Chronicle.

(492)

Continued from page 35
it

will not exceed 3V2-4%.

GNP

the

there

end

in

1963

Canada's

latter part

the

The

in

slowdown

which

some

the

moment

at

least,

have been replaced

by

relaxation of

of the

some

austerity

were

of

in

other

the

These

intended

were

foreign capital into Canada

doing

hand,

so.

deflationary forces. On

a

stimulate

im¬

effects

mixture

inflationary

to

and

Canadian

hand

spending

industries;

manufacturing

deflationary

were

in

Now

effect.

lion

•

exchange value of the Canadian dollar

>

stabilized the Government is again moving toward lower

It appears

has

business

farm

The recently

the

was

since

major increase in Canada's

a

inventories

increase

1962.

third quarter

the

first

in seasonally

•

;

of 1962.'

adjusted

quarter of 1957.

,

the bumper harvest of 1962.

was

/

It; is very
has

moves

have: been

terms

in

1962.

probable* that

been
a

By

effects of the excellent harvest

within the Prairie region.

,«

The favorable

the

well

as

commodity production; in corporation and personal in¬

will have

retail trade.
It should be

in

economy

and also

in

seemed

to

forward

spurt

mainly

would

relaxation

high rate of activity

&

industry

as

limitation

of

as

whole

a

public

works

this, 112.5 million

estimate

marriage of the

by

babies

war

should

be

usei^t
in

/•

in

the U.

to

Only

S.

This returned metal

:

that

the

!

-

,

down

melting

these

fortuitous

sources

of

,

,

depleted,

advised that a .slight'price/rise^AVbuld;/brings

were/

The Mex¬

myth has been exploded. .The Chinese hoards
into the U. S. in

ozs.

three

the

may-

illusory. In 1935, China shipped more than 300

prove as

four month period. Over

a

i934-1936,

period,

year

it

billion

one

Silver, meanwhile, became

an

being

were

supplies from Mexican and Chinese hoards.

ican

by the

reflected

added through

were

further. 350'million ozs. of "imports".

a

While

world markets unloaded

be brought about

can

ozs.

returned

was

million

as

non-

follows:

Today the cupboard ispractically bare.

Authorities

supplied
:'

the

'

supplied by

were

as

national coinages to bridge the "dollar gap" in the 50's

construction

adverse effect. 1

some

that

During the decade of the '50's, 400 million ozs.

(3)

be-

although

It failed

granted".

Harman) under "imports".

of

may

be

assurance

classified in official publications (including Handy

was

occurring, it is reasonable

now

To

family formation such

kept in mind, however, that the Canadian

1962

the

amounts

since the war,

Residential construction has been at a moderate rate
for the last three years and any increase in the rate of

;

-

with

for

10 million ozs. remain outstanding.

This will probably be true in the construction

case.

industry

Saskatchewan reports, for in¬

and: public investments;

otherwise

vast

of y lend-lease/silver

carried farther in 1963 than would otherwise have been

Government's

in private

what

/: V

all these

net effect of

down

token,

same

-

especially noticeable,

are

the

much

This

the

will

supplies

in the past."

con¬

of

In 1946, Treasury "free stocks" totalled 696 mil¬

ozs.

(2)

'outstanding rate of economic activity

the

stance, indicate an all-time record high in gross and net

come;

slow

to

very

* ' '
money supply which is
in Canada's economic recovery ; to, expect that: current

Another positive factor

in

in

non-

published national accounts show that this

largest

the

interest rates and is relaxing the import restrictions.

that this renewed optimism and confidence

already led to

"fortuitous

"taken too

sources

chase Act.

to be well

seems

stock,"

exhaustion

Treasury purchases at 90.5c under the 1946 Silver Pur4

the

that

in the U. S. had

users

following

at all times

have

the

(1)

the

on

to

mining

high interest rates and reduction in public

Silver

give recognition to steadily rising industrial demand

and

hand the extra import duties

one

have served to further

/y

price of the metal which is surpris¬

that,

"free
as

to

seems

domestic

the

on

of

claimed

available,

yV-

posed during Canada's balance of payments difficulties
strengthen public confidence.

rise in the

a

Treasury's

and

y v.

their

curious

a

measures

plus the depreciation of the Canadian dollar tended to
other

measures

flow

successful

On

fairly general feeling of optimism and confidence.
The

the

restore

were

promi¬

so

effected

fidently

1963 gains

which appeared

to

LYNCH

The gap in silver production against world demand has

expenditures, high interest rates, special

ing most authorities.

to

apparent

became

Works

and international funds.

nently after the May 1962 stock market collapse appear,
for

B.

President, Siscoe Mines Limited

import duties and borrowing from foreign governments

compared with 1962.

signals

JOHN

dis¬

called austerity measures of reduced Government

so

Public

Nevertheless,

materialize.

not

economy

danger

7^2%

a

with relation to the U. S. dollar, they resorted to

count

economy

Recession

When the Government got into trouble

par.

trying to stabilize the Canadian dollar at

observers predicted

of 1962 indicates that the

will prove modest

near

.

.

many

concerned.

is

Canada
of

the

in

did

1962

of

where

i

;

grounds for caution as far as the outlook for

are

sectors

which

recession

mild

The
for

:

the rate of growth in Canada's

in 1962, although

was

Thursday, January 31, 1963

is

estimated

that

the U.

S.
yjy
industrial metal and the

an

ozs.

on

increase in the rate of residential starts. The
big increase
the school population and the
spread of provincial

industrial purposes alone.

1963, stems from the absence of dynamic forces in the

hospitalization

been met in recent years

by mining the Treasury's "free

Canadian

of

stocks".

of

comparison with the unsatisfactory
inherent weakness,

The

not appear

and

/

to be

services

boom

in

existed

as

capital goods

after

War

II;

or

can

will

plans

institutional

building

not

lag

continued

ensure

building.

Industrial
behind

far

and

with

To

a

sum

it would

high

rate

commercial

high rate

a

activity in other sectors of the economy.

goods

consumer

World

U.

in

For example, there does

pent up demand for

a

such

the

1956.

capable of propelling it forward for

economy

prolonged period of time.

any

since

growth

overshadowing the outlook for

industry of the type which

for

Nevertheless,
economy

1963 will

physical

be mild

With

indicate that

to

more

It

likely, however, to be
in terms of unemployment.

servere

consumer

the

spending, which

economic

upturn

contributed

of

1962,

1963

of the

industry is

earnings

operations
■

in

are

■y,v

remain

Government spending will continue to

lating effect

on

have

-

„

.

Business capital investment should also show

;

ate

increase, although present

industries
The
a

is

more

return

definite

a

capacity in

excess

1963, together with

up,

it

seems

relatively

that

strong

but

some

the

latter half of

during

weakness

the

conditions

first

six

months

be expected to

may

the year.

-

V-; \

will

F.

of the

and

was

the

during

market,
barrels
per

fiscal

the

Canadian

dollar

that

and

and

the

for

reason

gas

It

United States, the Government

discourage

this

flow by various means such

to

pro¬

or

the

this

As

capital

than
In

The

general

10% in 1963.

,

previous
increase

year.
was

Federal

by

vately

Long

at
out

a

Government

the

taking

should

than

owned

B.

been

C.

A

and

evident

was

uncovered

before,

the

Electric

pri¬
Co.

per¬

in foreign hands.
of

the

that

capital

fact,

until
an

were

which
Canada

inflow

capital in order to keep the Canadian dollar at
any-




two

the

mining

a

1963
-

one.

prolific

£If

as

is the

mining

new

This mine; a leading world producer for

centuries, is

now

down to

*

y

of

1963

from

the end of 1961.
a

of

•

<

y,

■

fiJ

,

the

daily

1963,

sales

of

completion
areas

1 <'

of

time

are

Yet the metal is

world

as

world

Treasury offerings between
1961, made at

highly strategic.: Congress might
be conserved until such

production is brought into balance with;;
The future is a long, long time.

consumption;

(4) The statistics upon which the U. S. silver policy is
may contain inaccuracies other than the
classification of returned lend-lease under "imports".

•J determined,
;

of

For

tin

example, the U. S. Department of Commerce
on

8th, still used-91.375c

although Nov.

28,

1961

the open market price,

as

brought this to

an
end in the
U. S., as had happened in London months
previously;

,

HON.

transmission v'V«;f

:

;

"

day

or a

for 1961.

'

-

^

ERNEST
C.;" MANNING
:V Premier, Province of; Alberta"'

gas

same

as

in

1962

year

growth

will

gains

little better

be

recorded

and development for

with the economic

which

indicators

varied

from

1961

to

A milestone

grow:

and

1962

value

some

of

;

on

year,

■

modest
>

•

production

ex¬

on

provinces

among

the basis of total value :

production.

Production

oil and natural

gas

liquids

with total production amount¬

to

526,000

barrels

However,

at

even

day,

per

increase of 62,000 barrels

an

1961.

rising

this

over

rate,

price of imported crude oil which resulted from devalu¬

only

productive capacity is being utilized.
Late in 1961 the Alberta Southern

not fully reflected in increased product
prices due
to the continued pressure on prices, for refined
and

this

serious

situation

is

not

expected
.

v

.

to

about

natural gas

products,

the

improve

Alberta,

front registering
increases to record-

every

ation of the Canadian dollar. These crude price increases
were

balanced,

of

increased by approximately 13% last
ing

adversely affected in 1962 by increases in the well¬
head price of Canadian crude oil and by increases in the

of

$500 million mark, plac¬

mineral

of crude

years,

were

mineral

the

one

reached when the

was

ing Alberta second

However, earnings from manufacturing and marketing

operations, which have been depressed for

of

in Canada

.

.

,

ceeded

as

the Province

breaking achievements.-vvV-.

:

will continue

rate

er';-

The

V

aver¬

expected to exceed 1962 sales by about 4%.

materially in 1963.

Bulle-

Gold and Silver Movements released under date of

October

of the West Coast

1

;

average

residue

and November

in 1962 increased by 40%

gas

result, 1962 export demand is expected to

double

.

require that present holdings

500,000

1

*

a fixed price
91c, cost the U. S. taxpayers $52 million.
,v
(3) The well publicized U. S. stockpile contains no

domestic

about

1959

silver.

through

expansion
this

that

over

tailings operation and

a

(2) The Congress might legislate that sales must be

March

conden-

that

an¬

ceiling will hot help. An important part of

made on the basis of tenders.

"

,

case

sources

be developed, the establishment of

are to

the end is in sight.

v

Canadian industry sales of petroleum refined products
increased by 6.0% in 1962. Sales of refined products for

ably

price with¬

learned to balance its
foreign trade it needed
of

a

British

considerable

discourage the inflow

successful

have

was

of

over

Government fixed

centage of ownership of this utility
more

Pachuca.

^

in

providing for judicial review.

These efforts to

action

supply

The major contributing factor

the

substantially—not at the

discouraging foreign capital.

Columbia
L. F.

of

propaganda

?

Mexican production continues to come from the famous
-

when the initial impact of the export program was
felt,
but still by nearly 15%.
;; .... y
.
/ < •
;; •<:v

companies, low interest rates

assisted

an

•

requiring replies to
additional questionnaires by foreign
by

of

most

other price

coun¬

legislation

nature

v

> expect

volume

a

age about 1.0 billion cubic feet per

taxes

as

dividends going out of the

and

of

day in 1962, will increase by 50,000 barrels

per

Industry sales of residue

was the pressure of capital
flowing into Canada from the

owned

;

movements

estimated

is

near

try,

we

liquids will result

markets.

which represented

day

over

this

an ounce

Obviously marginal straight-silver

production.

other metals.

•

approved Aurora/Glacier pipe line. How¬

facilities to California and other

on

day.

condensate

premium

to

and

growth of around 20,000

a

funds

ceeded

oil

y

LONG

affairs. Having decided in 1961 that the re¬
tarding influence in Canada's economy was the premium
on

crude

the major increase in 1963 production of crude oil
natural

and

•

District V

recently

ever,

weird year for Canada in economic

a

essentially

as numerous or

20,000 barrel increase will be to the Puget Sound

in

area

1963,

of

big advance in price has not resulted in in-.;

with

barrels daily. We estimate that most

President, Building Products Limited
The year 1962

and

will show

Loughney

Canadian

L.

creased

.

per

day,

per
E. D.

pay¬

of

The silver problem is

producers are not

sate in 1962 averaged 235,000 barrels

remain

appear

of

Exports of crude oil and

V-.

economic

(1)

approximately 2.2 billion

/cubic feet

ments problem and the
exchange crisis, 1962 has proved
to be a good year for the Canadian
economy.
Looking

ahead,

'production

-demand of

in spite of the chronic balance of

sale

might upset this.

-

many

limiting factor.

-V

inventories.

the

could become available for "mining"

reserve

The recent

,;M963. will increase, according to our
estimates, nearly 15% over the 1962

reversal in the increase in business

a

which

good. On the other hand, in¬
and manufacturing

day,/or

limitations, however, may arise from
"average" farm production yields in

more

producing sector

increase of, nearly 10% over the,
pre¬
vious year.
Natural gas
sales for

.

moder¬

a

the

natural gas liquids will
average close
to
800,000 .barrels per

serious

to

Summing

.

authorizes

of /the Treasury "free stocks"); otherwise
Treasury; Fixed Price Offerings will begin: again if; the
price reaches the $1.29 level. There are several factors

marketing

try

stimu¬

.

1934

(which provides the backing

pearance

It appears that for 1963 the indus¬

the economy in 1963, particularly at the

levels.

for

annually

,

fairly

a

for

ozs.

Congress could, however, revise this
(on the basis of the experience gained from the disap¬

expected to show little, if any, advance
• v
in 1963.

strong throughout 1963.

provincial and municipal

very

from

relatively little

should

Canada

Act

million

The import gap created has

under present law.

D. LOUGHNEY

outlook

oil

dustry

an

expected continuing increase in personal dis-w
posable income and an increase in consumer confidence,
to

The

seems

Silver

The

and this

;

President, The British American Oil Company limited

slowdown in

any

in terms of declines in the volume of

productivity.

considerably

:||:E.

sector by sector analysis of the Cana¬

a

seems

import 75

must

$1.00 and $2.00 silver certificates) at $1.29

,

appear

prevailed in the period 1955-57.

dian

today

Monetary Reserve silver,

of

that 1963 should be equal
to, and could well be better than, 1962. ' s *•
up,

S.

half

of

the

province's

pipeline, which

California

market,

was

was

Hon. E. C.

Manning

-

built

primarily to

completed.

The

serve

effects

of

-

-•y-

;

*

-

J

;

Continued

on page 37

Volume

197

Number 6234

The Commercial and Financial Chronicle

Continued from page 36

Robson Pres. of

•

,

this

supplying
and

McLeod, Young il

exports

present

vast market

of

natural

which

gas,

1961. Production of natural gas
with

New York City

more

almost

every

area

harvested,

were

5u%

;> over

up

of the province,

crops

j.

are

despite

early

frosts

and

On

that

Fremont

Robson has been elected President
of

Weir,

1

hattan

York

City.

years

Plaza,

New

Lloyd

Clearihue
James
Stewart
been

have

dents

Mr.

o

the

packing

plant

above

industry

Trans-Canada

lines moved

Robson

F. W.

Robson

multi-million dollar

new

completed.

were

These

preceding

and, in

manu¬

included

terms

a

for

steel pipe mill, a milk condensery, a
processing plants, and additions to several
large manufacturing concerns. Under construction at the

named

Executive

President in 1961.

Mr.

year-end

Vice-

and

ery

Clearihue

were

Facilities

has been associated with the firm

four major gas processing plants, a brew¬
the

for

being expanded

since 1961 and Mr. Stewart joined

generation

electric

of

continually to meet the

the organization in Canada in 1953
and has been With the U. S. firm

the past year an additional
at the

since mid-1955.

generating unit

are

the

During

McLeod, Young, Weir, Incorpo¬
a wholly-owned subsidi¬
of McLeod,

Young,

Weir

branch

cities

offices

Canada.

across

panies

the

in

ma j

Both

underwriters

specializing

or

Ca¬

nadian government, municipal and

business

provincial

progress

bonds

•

utilities and

in

and

industrial

public

securities.

Direct wire connections

are

main¬

tained between the New York firm

arid

thb

"

with

Canadian

s

affiliates,

recognized

Offices

stock

exchanges

in

Canada.

up

the

of

some

and sales

Favorable

1961,

over

of

building materials

trends

of

fall

retail

sales

vehicles

motor

lumber

and

carry-over of
at

previous

the

conditions

projects into 1963. As
year-end

planned for the

large

industrial

of

one

Tape Service

The

basca

Complete and accurate stock

mar¬

vast

are

'

approval to build

a

several

investment

community
Electronics,
Inc.

Scantlin

by

for
bankers and brokers to utilize in
their

for

data processing sys -ems

own

trust

account

pricing,

uation.
John

stock

of

prices

as

stocks'

available
for

well

daily
in

the

as a

The

when

developed

are

activities

computer

first

new

time

present no indications that the rate of

service,

called

*

Quo¬

even

from

a

short-term

continue

at

ing

factorylevel 1

us

other

The

information.
provides

market

stock
new

quotations

data

on

a

spell

and

month

current

of

through

Product

its

Quotron

II

system/

Form Inst, of Fin. Ind.

1962

has

Wash.—The

2021

ficers

formed

Northwest

conduct

a

are

Institute

Independence,
with
89th

at

Street

Lyle

H.

Kennedy

Of¬

II,

President; H. G. Kennedy, Treas¬
urer,

tary.

and
,

Lee R. McNair, Secre¬
V-




two

On

still

find

for

exceeded

some

new

car

other
look

the

—-

Mining

a

—

LIMITED

corre¬

Several
as

MEMBERS:
MONTREAL

and

products

—

im¬

ASSOCIATE

BOSTON

STOCK

EXCHANGE

STOCK

early
of

the

fifties

the

measure

slowed

has

Some of

us

post-war

our

same

•

STOCK

EXCHANGE

CALGARY

STOCK

EXCHANGER

ASSOCIATE

EXCHANGE

244

MEMBER

PHILADELPHIA-BALTIMORE

STOCK

,

EXCHANGE

Bay Street, TORONTO

.

363-8891-2-3

-

of

1962

far

Telex—LATIMER, Toronto—02-2565

sur¬

period of 1961.

MONTREAL

of

unemployment.

down—at

may

OFFICE

temporarily negative side,
1155 Dorchester Boulevard

Several

least

for

the

have

been

abnormal;

West, MONTREAL

866-8763

time

believe, in retrospect, that the growth

years

CANADIAN

*

MEMBER

signs point to the fact that the speed of growth of the

being.

EXCHANGE

the

make

In

STOCK

VANCOUVER

the pres¬

sales

Oil Securities.

W. D. Latimer Co.

fact,

Gross National

promising.

quarters

passed the

Robert J. McGillis

we

38

industry, production during the

first

to

securities business.

page

several

of

matter

a

increased.

of

future

own

Inc.

offices

level

demand
the

Financial

on

complete trading service to
Banks, Brokers and Dealers in Industrial

relatively satis¬

a

portant indicators—such

SEATTLE,

brighter for most of the world

Brokers In

encouragement. Retail

sizable margin.

a

ent

been

Viscounts, all with substantial
capacity, will assist the airline in deriving the
substantial revenues available through the move¬

-.r,

sponding month of the previous year
by

of

Vanguards and its

available figures indicate that every

basis to the financial community

has

carriage of
is assuming greater importance with all air¬
lines, and the DC-8Fs, coupled with TCA's other DC-8s,

We offer

point of view,

aspects

Center

over¬

cargo

short-term prospects.

sales

market

established'

improve TCA's financial position in 1963.

The outlook for 1963 is

President, Laura Secord Candy Shops

lin's New York computing center,
of

an

ment of air cargo.

At present, Canada's long-term future is overlooked
by
those who cannot see beyond the country's "mixed"

Yet,

traffic;

btoh domestic and

McGILLIS

the world's largest for the process¬

documentation

on

ex¬

llCanadianl Securities |

ROBERT J.

language
the

be¬

gap

provincial economy and maintain its steady rate

are

through

class fares and low^

Continued
at

due,

was

jet aircraft of TCA's fleet and much lower capital ex¬
penditures for new aircraft and facilities should all help

very

in¬

of progress.

Data, is available from Scant-

and

equitable fare structure

economic development in the province should slacken.
In fact the diversity of industrial
projects planned for
of the

yield

fare structure which

However, their financial situation at the

expenditures.
There

unit

reducing the price

Further increases in passenger

cargo

coking coal, each of which
involve multi-million dollar

would

first class fares,

its

summary

rtiedium of the magnetic tape.

tron

which

in

a new

domestic economy

some

some

the future should continue to broaden the economic base

R.

Scantlin, President of
electronics firm, said closing

the

finds

for the improvement in TCA's fi¬

The increase

air

clude iron ore, gypsum and

stock

action analysis and portfolio eval¬

industriaL mineral

important

McGregor

in 1963, two in composite
cargo-passenger configuration
arid two in all-passenger configuration. The
'

$122 million project granted to Great

the

inexpensive

on

G. R.

and

TCA \yill take delivery of four DC-8F jet traders
early

;

coming closer to fulfillment with

magnetic tape is being offered to

information

reasons

position.

to stabilize and

a
an

Canadian Oil Sands Ltd. Target date for this
enterprise
is 1965 or 1966. Work is also continuing on evaluation of

ket

domestic

routes, additional reductions in unit operating costs
through added experience with the turbo-prop and pure

developments which will unlock the Atha¬

Qil Sands

both

on

a

economy

seas

are

which,

towards

routes, coupled with lower unit operating costs,

deficits.

and

good ;

large gas processing plant to be built at Empress at
estimated cost of $25 million, is proposed for 1963.

miles flown, despite

significantly better than that
perienced at the close of the preceding year.

arid

projects

of

end of 1962 should be

result, unemploy-f
less than in

a

future, at least

near

tial

construc¬
a

car¬

In 1961, Canada's two major airlines recorded substan¬

,

/

enabled

major

improvement

tween economy and first class travel.

considerably

was

Several

years.

ered

noticeably increased.

are

weather

an

minimal earnings

flow

major

increased

or

4%

about

were

world's

in part, to the introduction of

general

tion projects to proceed through the winter with
ment

New Quotron

of

in

year

major carriers, including

travel

nancial

capac¬

activity gives every
indication that firm
is in prospect for 1963. Bank debits in 1962

been

higher,

who,

members of all

are

have

were

J?Si;4y:'

examination

' An

good

,

overseas

complete,
this $45 million

ity of 200,000 HP will be in operation in late 1964

.

class

now

early 1965.

a

accomplishment

largely responsible for

per passenger

,

a

the

period of less substantial losses

a

of small profits.

not

at least

or

continued

at

well.

as

.

com¬

in

installed

be

to

and excellent progress is being made on
project. The first electric generation unit with

investment dealers and

are

units

The construction of the Brazeau Dam is

&

Company Limited, Toronto, which
has

Subsequent

Wabamun will be coal-fired

rated is
ary

fuel.

was

in 1962, as the world air¬

critical financial position of the

A gratifying increase in the return

,

huge Calgary Power Limited plant at Wabamun,
from natural gas to coal as a
of

was

deficits

TCA.

installed

was

of

most of the

marking the transition
source

cases,

experienced modest passenger

ity offered, resulting in reduced load

growing

ever

needs of both domestic and industrial consumers.

the

financial

was

factors,

power

coun¬

over
1961. A dearth of passenger
traffic in comparison with the capac¬

number of additions to existing plants.

a

of

riers, it

number of gas

Leod, ?Young; Weir; Incorporated
in 1958 as Secretary and director

our

McGregor

revenues

into

year

some

most

diameter

small

r.

Lines

from

While 1962

During 1962 several

facturing facilities

Air

gains and increased

the

recording

constructive re-assessment of

a

g.

of '

that

Cana¬

President, Trans-Canada Air Lines

strongest gains. Employment in manufacturing rose by

i

was

with

consistently

remained

of

concern

world

as

traders; and the realization
vastly increased speed in travel and communica¬

tions demands

4%.

ine d. Mc¬

and

shipments

1961,

and; di¬

rectors.

j

tory

squeeze.

try's position in the economy of the world.

record, with the 1962 value surpassing that
previous year and exceeding the 1961 aggregate

Throughout the year the value of manufacturer's fac¬

M.

role

our

by 26%. These buoyant conditions prevailed throughout
province.

Presi¬

-

•

:

of its best.>.

one

The food industry in particu¬

indication of management's competence in

an

the entire

elected

Vice

dians in

agricultural

,

industry experienced

more

optimistic faith in the long-term

our

Encouraging, too, is the manifest

on

of any

and

A.

-

The construction

Chase Man¬

as

that the

community.

Incorporated,

whole,

dealing with profit

bright for the segments of the

retail trade which supply; the needs of the

the

serve

and rising

crops

as

growth of Canada's J
population, by technological advances in manufacturing
and by our increasing skill in the art of
marketing. Cor¬
poration profits during the first; half of 1962 could well

increase was noted in cash returns from

an

prices, the outlook is

McLeod,

Young,

and

year,

W,

construed

be

lar is encouraged by the continuing

wet

dairy and poultry products. With good

announced

easily

future continues unabated.

.

weather; Livestock, prices rose steadily throughout the

has

could

%

bumper grain

S.Dinnick, President 6f McLeod;
Young, Weir & Company Limited,

conditions

•"normal".

sales

liquids is up by over 30%
than double that of 1961.

sulphur production

In

in the

reflected

are

37

(493)

the

>

Direct Private

Wires connecting Toronto

and Montreal

38

The Commercial and Financial Chronicle

(494)

the chances of substan¬

I feel optimistic about

airlines.

perhaps,

and,

wick

by TCA during

the nine years

cast assumes no

adverse alteration to the airline's present

pattern or competitive position.

route

of

The

66%

Limited

ability
ore

of producing

the producers of

Telephone Limited and its Subsidiaries oper¬
systems across Northern Ontario and

Northern

duction

ate communication

these regions depends '
mainly on agriculture, mining,; lumbering, pulp and
paper and tourism. J The past year
has

in

industries

these

all

seen

condition.

flourishing

North

a

such

developed,

actively

Our

There

The
Donald McKelvie

rail-

places formerly served only by

Thus

bothvprovinces
fishermen. The devaluation of

hunters and

campers,

|

others in these regions.
We look forward with confidence to 1963 and expect -

dustry

well

as

as

of

last

year

much

the

various

;. the

5 should

SBr

far

be

not

of

ports

with

the

1962

of

"Pere

the

of

;;

Nouvel",

ice-reinforced

10,000-ton

r

benefitted

JMH|H
mSI

activity

the U. SL

whose

between

succeeded in keeping*'

HBflflHfll
:;

N

j

the London gold price ffoiri rising
though-there are indications

above the U. S. parity; even

that last year was one in which European investors
creased their

McKinnon

hoarding of the metal.

3*1?

Wilkhnnt'
ampunt

,+hA
the

i2(JY • world !k'ppears

McLEAN

trade

not recthied, cannot be foretold but"

irnM
of'gold

available tn flifl wpsfprn
to the western

avnilahlo

irpcpfwa

reserves

position.

President, British ColumbiaTelephone Company
HARTLAND de

\

progressively more optimistic

a

view is being taken of the outlook for

1963.

The

The present state of the Canadian economy

econ¬

cause

British Columbia is based, to

omy of

,

;;

large extent,

a

as a

measures,

industry,: futilities

indicate that

to completely freeze over
^ during most of February, 2,400,000

;

rence

'

of

tons

■

;.-v.

housing, and capital expenditures by

cargoes

Cabot Strait during last winter (Dec.

15)

'

previous winter.

(;

^

in 1962 and

ments

dian

"(•
..

dollar.

levels

Brook; New Brunswick International Pulp & Paper Co.

that

of

lumber

C.H. McLean

Ltd., at Dalhousie; Quebec North Shore Paper Co. and

advantages

the

of

cheaper dollar should produce new
contracts

water's Newfoundland Pulp & Paper Co. Ltd., at Corner

The

maintain

high

production: in pulp, paper,

mineral

and

time.

some

will

,

of' 1962,

contracts made

on

for

products

Housing

starts

in

1962

During 1962, great progress

implementation
ments:

(

achieved towards the

following

the

of

was

<*

important

develop¬

-

hp water

power

large part

a

potential of the Mani-

and Aux Outardes rivers, back of Baie Comeau;

couagan

will

probably level off,

activity
units

(1) HYDRO-QUEBEC: The harnessing of
of the 6 million

somewhat higher than in 1961; however, this trend

were

in

million Carol Lake project, 250 miles north of

A»

Sepl-lles'

expenditures

iron

ore

yearly. The construction of

5.5 million-ton-a-

a

ernment and

million-ton-a-year
miles north of
water harbor

(4)
The

COMPANY:

iron

ore

A

$250

concentrator

million,

project,

Sept-Iles, and the construction of
near

BRITISH

Clarke

Wabush

to

250

City in the Bay of Sept-Iles;

NEWFOUNDLAND

Lake

take

care

6

deep-

a

CORPORATION:

doubling of its 125,000 hp hydro-electric plant,

Labrador,

Any

relaxation

of

power

requirements

in

in
the

in

these

9%

>

the

extension

of

the

great

roads, the tourist industry has become
numbers of tourists

record

Pacific Northwest by

completion
section

Columbia.
in

the

of
the

of

economy of

spectacular

Pass

Coast

route

being encouraged by the

and

travel

from

the

expansion

(90,000 tons)

Co.'s newsprint

pansion
Co.'s

was

and

(45,000

smelter

tons)




States

being

Columbia is growing

of

into

of Quebec North

Comeau,

Canadian

Comeau*

(3)

(2)

(1)

the

Shore

Paper

the 50%

British

50%

A

ex¬

the Peace River

on

one

plan

of

the

for

great

new

development

new

hydro electric

developing this country

are

frontiers of North America:
of

power

resources

the

on

Columbia River is pending and an early decision regard¬

ing

a

the

economy

Aluminium

the addition of one1

is

generally realized. The production of oil
and the exploration for new fields along with

gas

project

decided to proceed with the

developments:

mill at Baie

at Baie

and

start

on

this project would

of this Province.

Employment is at
is

encouraging.

a

mean

a

great deal to
/

„

sales,

in

particular

the

United

by

up

appreciably,

an

estimated

1961 figures with a result-

and

trade

is

particularly

de¬

In the 12 months period

States was valued at

world

Canada's

diminish
overseas

."Given

this deficit and

countries.

.

of

,

,

major shift

no

.

in the trade winds which are

Canada' is at present favorably
in her export position.
The increasing competitive role of secondary industry in
exporting fully manufactured goods, the discount on the
dollar, and increased emphasis on the home manufacture
of component parts particularly lend weight to this view.

blowing

placed

this time,

at

to record further ■:gains

Canada's largest

industry and employer, the construc¬

which accounts for almost a fifth of Can¬
ada's GNP forecasts a modest improvement in its over¬

tion industry,

all

program.

They foresee more work on housing, in¬
projects. This important factor

dustrial and public works

undoubtedly

adds

for the economy

credence

The

was

to

the

optimistic

outlook

and certainly the recent stable volume

of construction helped

which

sale

$3.7 billion against

This represents a gap of
for the prior 12 months.
trade objective is to further
to close the gap by selling to

totaling $4.3 billion.
12% compared to 22%

Clearly

,

high level and the outlook for 1963

Retail

-

Canada relies very heavily on for¬

Pass

shorter Rogers

United

lumbering, agriculture and the vast

Chaleurs, and,

expansions

Rogers

Highway through British

The northern portion of British

con¬

(6) GULF PULP & PAPER COMPANY: The modern¬
ization of its pulp mill at Clarke
City.

the

some

the

This inflow of tourists is expected to continue

Baie des

during 1962, it

to

1963, with travel from the Prairie Provinces to the

Pacific

-

balance of payments.

imports

.

faster than

Also

paved

stimulated by the devalued dollar.

area;

(5) PRICE BROTHERS & COMPANY LTD.: The

following

of

attracted

$45,000,000

improved

being

exports to the United States.

the Seattle World's Fair and the

Trans-Canada

'

ports. For many years, however, there has been a sub¬
stantial trade gap with Canada importing more than she

British Columbia. In

were

expan-:

pendent oh her trade with; the United States, these, two:
cbuntries being mutual best customers for respective ex¬

increasingly

an

of

fended October, 1962, merchandise exported from Canada

.

network

element

through the 12 months

which: in turn', should run

over

eign

to

With

an

ing improvement in our commodity

H. de m. Molson

.

give

will

important business indices;

position

exports

Government

„

struction, through its subsidiary, Gaspesia Pulp & Paper
Co., of a 100,000-ton newsprint mill at Chandler in the

:

residential

policies

the;

nadian dollar crisis in June our trad¬

"hold-the-line policies" of municipal gov¬

added impetus to the economy.

1962,

WABUSH IRON

older

where

of

.(Indications are that after the Ca¬

ing

capital construction have been depressed

on

important factor in the

pelletizing plant;

(3)

centers

part

Byear, and other government austerity
•;

by the austerity program instituted by the Federal Gov¬

capable of producing 7 million tons of 66% beneficiated
year

although there is considerable

being replaced with apartments.

are

ernments.

IRON ORE COMPANY OF CANADA: The $200

(2)

larger

the

latter

well into the coming year,

..

Canadian British Aluminium Co. at Baie Comeau.

the

sion prevailed

of their ship¬

many

based

were

good

a

before the devaluation of the Cana¬

Other large shippers include Bo-

shipper.

government.

and

year

Quebec Cartier Mining Co. is now by far the largest
winter-time

*

ing*-during

for

expenditures

primary industries had

compared to 1,500,000 tons transported during the

as

;

The

transported
15 to April >

were

across

by

some

whole. In spite of a reduction in .government spend-

products of the forest and the mines,

complemented

gives

for^ optimism, a condition which is less .apparent

in. the economies of either the United States or Europe,

the export of the

on

MOLSON

M.

President, Molson Breweries Limited

•

winter, causing the Gulf of St. Law-

Huet Massue

world

small in the light of expanding

the two shores of the Estuary.
Notwithstanding a rather severe

HHb JB kIH

in¬

How long this co¬

operation will take place, if the U. S. balance of pay-

do-^Jfl^^^^itlMriis

..*!.•

and in British Columbia

ferry-ves-

transportation

the,; price of gold should not be increased. Cooperation
foreign central banks has, at least for the present,jj

primary function is to supply the

H.

below $16 billion, a decline of
In the face of this
Treasury still stands firm in its conviction that
now

are

from

<

strength appearing in in-

more

that the new rate of

about $7 billion in the past ten years:

-

accelerate mod-

may

appear

the U. S. gold reserves continues, arid

on

official stocks

future.

near

drain

The

.

;

The down-turn in the Canadian Economy that had been
predicted for the latter part of 1962 has not materialized,

a

se* operating between Baie Comeau
and
Pointe-au-Pere,
considerably

l^jJihbi

to

A*t!

20% that handled during 1961.
The introduction at the beginning

§£

the

mmm

in

strength

it would

(exchange, and hence higher internal price for gold, will
be held for the year ahead;-'
: ;

hand, there is substan-

C.

t°ns> a record volume exceeding by

IP

in

came

likely

appear

25,000,000

from

Clifford W. Michel

price received in; the preceding year. Since

has improved and

mestic market.

region

of /about

level

a

per ounce

the average

:,v

major
rise

strong

additional

economy

dustries

handled at

count is established, the total tonnage

final

the

be

1962 proved to be one of accelerated progress in
Lower St. Lawrence and Gulf region. When the

to

JKBm

taking this action, Canada's balance of payments position

erately in 1963 but there will likely
changes in the pattern of activity

predicted in the 1961 Candaian Annual Review, the

As

f

nomic

Region, Montreal, Canada

Gulf

mm

PflBJil mmSm

price of gold to the Cana-

producer

$37.80

domestic demand." The pace of eco-

General Manager, The Lower St. Lawrence
And

-

strength at the present time in

HUET MASSUE

dian

-

in general the

United

which

year

not

the other

ffpl

more

the

hand,

one

continuing

as

the

The

S.

U.

the

be less buoyant in 1963.

the

does

impart
to

North

advances in the economy of

further rapid

■

exports

92Y2C

of

parity. This price is more than, $2 per ounce higher, than

particularly

the

from

,

of this devaluation was to in-

crease

major trading part-

our

may
on

stimulus

marked effect on this in-

posi-

rate has been

rate fixed within 1%

a

side

either

-giBH

KiPr

imbalance

the

payments^

effect

outlook for

-

modest than in •; 1962.

activity will be

and

States,

v

roads, has made accessible' vast areas of
the Canadian dollar has had a

| replaced by

economic

.

in Canadian funds
subject to the 1% fluctuation permitted around 4he new

are

ners,

rectify

former free

•tion. The

of

•

signs that economic activity in the countries

are

which

to

international

its

of

,

Toronto, Canada

the

dollar

its

;

|

just past,v.

Government devalued

Canadian

-the

1970.*

of

In the middle of the year

:

Imperial Bank of Commerce,

assessment

present

increase in

attracting an

of tourists.

number

the.

on

an

as

;

should act ;:■■■■■■
offset, while the price received*>

for the gold produced should average
somewhat higher than in 1962.
<

■j

reach $3;

1970 should

Canada in the coming year suggests that

opening of many new highways to

to

.

;

-

increasing

investment

the

1950 and

President, Canadian:

stages.

These areas are also

that

note

N. J. McKINNON

being
Matta-

(iron). Many others are in the early
development

to

should attain $1 billion by

Ontario

Mine-; in

Adams

the

as

operative. '/!

cost-saving

of

equipment

and

methods

remain;

1965 when the projected

or

of Montreal. The value of production

of the City

tion

(base metals)

gami Lake in Quebec
and

are

1964

Canadian Gold Mining

of

one

introduction

tinuous
f.

equivalent of the present taxable valua-i

the

or

metals and iron.

mining areas

new

of the region. As to the pro¬

ore

Shore, between

billion

-•

interest

of

of

tons

newsprint and aluminium, it should

of

is

It

•

Mining holds the more promising
position at the moment, especially
in the fields of base

million

15

to boost the sales of

expansions of these industries become

>

Many

iron

fairly constant until

Northern Quebec; The economy of

annually

concentrates should help

Limited

relative stability; While
operating costs generally tend to continue their upward
trend, increased productivity of the work force and con¬
is

1963

for

.Industry

1963 should be one of continued progress.

year

The

MICHEL

of the Board, Dome Lines

outlook for profits for the

The

add

optimism for 1963.

CLIFFORD W.
Chairman

of producing

mill capable

ton-a-day

3,000

a

yearly by The Brunswick Mining & Smelting Corp. Ltd.

w

President, Northern Telephone Company

•

on

180,000 tons of zinc and 125,000 tons of lead concentrates

McKELVIE

D.

railway

development and construction in Northern New Bruns¬

enjoyed
prior to 1960, This fore¬

return to the profit position

a

Thursday, January 31, 1963

.

.

have shown recent strength, all of which

cars,

to the feeling of

extension of Montthe south shore and (5) the
50-mile

the

(4)

Comeau,

Joli/Matane

traffic and revenues

tially increased passenger and cargo

Baie

at

new

capacity to Cargill Grain Co.'s elevator

million bushel

"

Continued from page 37

.

to forestall the modest

recession

previously forecast for the latter part of 1962.

Brewing Industry introduced a new compact

bot-

;'v\.Continued on page 39

Volume

197

Number

6234

.

.

.

The Commercial and Financial Chronicle

(495)

Continued from page 38

GLENN

to eastern Canada in the

tie

spriniTof 1962.

This bottle

E.

39

NIELSON

President, Canadian Husky Oil Ltd.

v

is lighter and gives better protection than its predeces¬
excellent public

The

sor.

sidered
J: Peter

be

Canada

Grace, President of W. R.

Grace & Co., New York City, has
been re-elected Treasurer of the

to
to

a

large

a

record

National Jewish Hospital at Den¬

other

ver, announces

high. This

the

at

Hospital

almost

of

are

at

current
the

the

direction

* .J

government

concerned

Peace

with

Corps

a

J

,

-

.

on

consumption

of

the

years

and

offset

have

not

Kf

as

tinuance

The
such

this

of

trend; is

implements

of

have been improved

foreign

continuance

a

/

con-

to
C.J

construction

modernization -of

of its

The

First

has

;

fish

for

the

of

Wall

Street,

it

1963,

year

nouncedfollowing

As

fish

of

trawlers

kind

a

the

on

$5,000,000.

have

The

following also

&

A. Nevins of

Co., to

ident;

AI1: in all; given,

.

an¬

;

R.

have

Co.,

a

fairly

Treasurer;

and

a

^

•

as

The

Secretary.

fair production*, the Industry should

following

rectors

the

of

well /.into

§

Over The Counter

& Co.

<5§m
M

|

*n

•

'KSL/

yjBL

tion

A.

of

HHH mttk
Robert

H. Morse,

'

•

-

-

Rossworn

road

Bank;
of

Company;

Carlisle

&

Christian

Union

Pacific

Henry

ufacturing,
prices in

of

Raymond

and

started in

itive.

Service Company.

Continental Securities

oil

1963,

serious

tax

from

upward

trend

While

oil

for

dollar,

combine

provide

to

of all

products from

province of Quebec. Refiner^1
in

progress

accomplishing.^ this

serious breach:; of the

one

making

Canadian

deterrent

structure,

asphalt
there

Husky

to-

is

still1

is

Oil

not

being
a

now

its

and

asso¬

Ontario

existing tax

policy.

Canada's

badly

is

growth

in need

laws, Canadian

companies

practically

are

an

complete

of

pro¬

in today's highly competitive oil industry.

small Canadian company
or

for

to benefit from its

accumu¬

medium sized company to grow

a

•

'

~

same

•

tax laws also discourage individuals who

by making it difficult

to

sell

producing properties for

attractive profit once thev have been acquired. Thus
the amount of capital available to
industry from in-

an

an

s

Continued

*

pursued

on page

40

Canadian

by

towards

improving the balance

CANADIAN

payments problem.

increases

experienced

.base

in

materials, transportation,

services,

will

be

reflected

SECURITIES

1962

O t IE specialize in servicing dealers

economy,

in

\J\J by obtaining

man¬

of Canadian listed

higher

or

placing blocks
over-tlie-connter

or

securities.

slump

of

business

activity

that

Our

1960, many businesses trimmed their employ¬
firm

permitted them to remain compet¬

1963.
there

refined

and

would like to take part in the growth of the oil industry

in

With the reversal of the downward business trend,

into

Canada's

forming the strong economic units which

necessary

in Canada.

.

has been

;

'

Trading Department maintains

markets

issuer in

TRADING DEPT.

EMpire 6-5831

employment has been rising and should continue to rise
well

imports,

through acquisition to a size where it can effectively
compete with larger, international companies operating

activity in

through all segments of the

ment to levels which

porated; and Chester F/ Ward of

oil

asphal'tic crude oil available to these refiners.

lation of assets

The continuing pressure for wage

j

recent

the

reducing

crude

1963.

During

B. Vreeland of Blair & Co. Incor¬

Cities

.»

W.

Rail¬

Tovar

Jacquelin;

III

producibility

business, with a resultant contribu-

;

Herbert L. Nicolson of The Chase

Manhattan

favorable

" aggressively

J

Co.;

and

'

opportunity for expanded exports if

fM

:

James

of F. Eberstadt &

in

„

--jrf

.V"

Clearing Corp.;

Inc.;

a

generally

a

the

on sales of producing proper¬
ties,. the government has made it extremely difficult for

Europe an(* the devalued Cana-

dian

Incorporated; John'J. Keiiy

Dealers,

in

on

By placing tax penalties

V

Flaherty of A. C. Allyn

McCorkell

resulting

year,

The

of the National Association of Se¬

curity

MORSE, III

^usinesa activity in the United
States, the high level of the economy

■

i

Co.; Howard Emen of. National

Frank A.

H

are

higher level of business

"f

Fred¬

solved

imports

regrettable in the light of the fact

Ontario; because

into

Under

These,1

erick Bock of John K. O'Kane Jr.
&

this

1

-

[

association:

be

oil

reduce

to

and. individuals in the oil business

in most sectors in recent
months and should continue to

elected di¬

were

temporary

a

cannot

than $400 million of Canada's

more

admirable

Foreign

reform.

George

.

made

antiquated

of

expand

produced

Another

The upward momentum of the Canadian
economy, which
appeared about to falter in mid-1962, gathered strength

Boggiano of R. S. Dickson & Co.,

Inc.,

taken

it

that last important gap in the present oil

President, The Canadian Fairbanks-Morse Co. Ltd.

Vice-President; Francis J.

as

undergone
that

from western Canada. Refiners will then be able to close

prosperous year.

ROBERT

/

«:

Kenney of M. A. Schapiro & Co.
Inc.,

1963 and beyond.

enough oil reserves

step

Beginning in

further expansion of

as

Inc.,

obvious
are

more

has

first

a

hibited

elected:

McAuley

imports.

ciates will make this type of crude available in

-

a

than

more

oil

in

trade deficit in oil has

completely self sufficient.

domestic

Model, Roland

&

Stuart

Second

"■

has only

also

steps

even

imported

and will be the largest plant
North Atlantic Coast. It will cost

this branch of the Industry in 1963.

First Vice-Pres¬

serve as

Raymond

Halsey,

were

but

is

drain off

now

policy.

meeting/

John

increase

our

objective, but: there remains

year

-

full

its

of both oil

This increase

normal

all of Canada west of, the

and

annual

'/V'y :>'Av

It

positive

foreign

1963 should show

Scallop fishing has developed rapidly in Nova Scotia

Inc.

was

the

•

realize

present National Oil Policy calls for elimination

draggers,

plants will alsu continue.

in recent years and there will be

been

elected President of The Cashiers

Association

solved

Canada

be

Morrow

production,

in recent years.

the

of

that

scallop draggers. Most of these will be built in Canada.

about

of

and

the growth of exports

more

.

indicated.

the large off-shore trawlers and scallop

as

million lbs. of fish

Webber

been

nation is

Hfa jH

very large processing plant is under construction at
Lunenberg. This plant will be capable of handling 80

Corporation

in

Therefore,, it is obvious that

>.

.responsible/ for

of the increase in sales. ~A

some

serves

been

*

However, present policy of the United States prohibits

A

R.

position

foreign exchange annually. This economic drain

items

•

-

which

The

Charles

re-

continued rapid growth of exports in

re-

well

as

Gienn E. Nieison

be

far-reaching remedies if Canada

growth

smaller,

a

until

prepared for the pan

HHHHHHH

stop-

to the United States.

gas

r,

been

has

bene-

a

must

more

its

abnormal increase

''HBIfMflHH

A very large

housewife

other,

regain

only

was

it

and

In the oil and gas, industry, there was some temporary
improvement in the balance of payments, caused by an

whether produc¬

y

new

exchange

potential*

fish,

products and

new

to

correction.

and

"/<

Industry depends
'

the

is

The

processing plant. These convenience '/

commerce,

and

in

inforced by

for

one

|MH

to

in mid-1962

surprisingly quick

a

measure*which

gap

gamble and

a

had-,

ficial effect. But it

reasonably good

a

continues

fish that has been pre-cooked at the

commit¬

relations.-/--

Boston

One of

step in the-right direction in

a

and

President,

banking,

of the

good.

partly to

cent

production of chemicals. He

the

was

which

program, begun

able to buy fish that has been breaded

interests to include shipping,

tees

chronic

of

economy.

these is the nation's balance of pay-,

fair

the Atlantic Coast of Canada.

is sold in the frozen state and in

C

,.

Grace has been

several

given

and

warnings

weaknesses in the

is

percentage of the production today

Dr.

-

I 'r.,."

."/v,

transportation,

on

MORROW

on

methods, of packaging.

insti¬
of

Under / his: direction, the 100-year
old. firm has diversified its busi¬
air

J.

1963 promises to be

success

due

of, W. R. Grace & Co./since 1945.

ness

population

catching of fish, of course, is always

crease

MiddlebrOok; P J a s t eu r

Award winner.

Mr,

disproportionately,

There appears to be a gradual -in-

educa¬

in¬

that

nationaly development.

medical •■'re¬

professional

projects

.

adult

austerity

tion is

care

other Canadian

Canada

in

deficit

the

$4,000,000

patient

training: Thirty research

J

the

conditions

ments

The

in

tion and

y \

level;

present

the Fishing Industry

v

and"" rehabilitation,

r

temper

affect

The year

J. Peter Grace

^

;V

programs

Gar dner

will

serious problems

are

many

satsifactory although hardly

persistent

are

Employment is expected to remain

C

:

industry in 1962 and

optimistic view of the

dynamic for the near-term, but there

sales should at least be maintained

President, National Sea Products Limited

Jewish

under

oil

an

However, there

which

Business
appear

has

disbursed

tution

justify

industry, and

preserving foreign

e

search, 'and

oil

dustries,

years;

increasing share of thg- industry" market will
.continue-its modest improvement
- 4'

National

its

future.

facing the

consump¬

five

Canadian

1963

Molson's

defects,.'/ '

1962

near-term

several

and

capita

the

of

promise for

weather, the consumption of beer could possibly increase
some .5%.
,There are also reasonable.indications that

^ n t^ ^^ ^
in

per

experienced by the western Provinces.

likely ,to ; increase

the

bottle

new

its

in

beer sales

major influences being the increase in the number

roughly

ect i b 1

sending

in Canada for the first time in

;
The level-of beer
in the year to come.

COrr

in

con¬

of licensed premises in Quebec and Ontario and the good
crop year

heart

factor

other factors combined to raise the

tion of beer

Performance

acceptance it received is

for all types

TELEX 02-2461

;

on

U.S.

listed

funds

and

and

of dealer

or

is

unlisted

available

institutional

transactions.

.

/

general improvement in the

a

capital goods industry, spending has lagged behind the
LAKE

SALT
nental

Securities

engaging in
from
South
E.

CITY, Utah—Conti-

offices

Corporation .is

securities business

a

at

574

East

Street,. Officers

Stewart,

President;

are

Second

Wiley

Wade

C.

/

general uptrend in other sectors of the economy. However,

the improvement in corporate earnings noted

the third quarter should
up

encourage management

their equipment replacement programs

been

cycle which expired in 1957.

The increased

reduce costs in order to meet the

R.

imports

Smith,

urer.

Secretary
.

and

'




Treas¬
-*

and

to step

will

provide

stimulus

'*■

'

for

COMPANY

MEMBERS

THE INVESTMENT

-

ASSOCIATION

DEALERS'

OF CANADA

MEMBERS

THE TORONTO S^OCK
-

modern

EXCHANGE

TELEPHONE 366-6996

to

price levels of foreign

additional

efficient machinery.

pressure

MACKELLAR AND
LIMITED

which have

relatively inactive since the last capital expenditure

Striegel, Vice-President; and Joel

WISENER,

-

in

220 Bay Street, Toronto 1, Canada

40

The Commercial and Financial Chronicle

-(496)

39

Continued from page

failing to recognize
individual and corporate profits in a free

of

role

the

payments deficit.

reduce its balance of

with realization of the

8%

least

at

rate of unemployment has

,

for

W. NICKS

F.

Chairman of the Board and President

•y.;

Toronto, Canada

Bank of Nova Scotia,

The

will be' entering 1963 in a much

The Canadian economy

Although
slackening tendencies have been appearing in recent
months,, production in 1962 increased by some 6 to 7%
improved posture as compared with a year ago.

in

volume

This is

terms,

in

vance

well
In

as

good Prairie

addition,

grain

foreign

the

crisis of the second

permitting

reserves,

tion of

some

to

the

.

been

increasing. However,

growing at

high

rate,

a

and extraordinary when

a

overseas

be

crops,

and

indications

in

of

of

vigorous

Europe.

of the

addition,

In

country

In

good

it

has

be

to

is; still dependent ^substantial inflows of foreign,
upon the maintenance of sound.

capital, arid thus in turn

economic policies and of orderly -/ political conditions.
However, the headway which Canadian industries have
been

making

in

the

domestic

bolster production in the year

added

market

should

help

to

ahead, and also stimulate

expenditures of

a

capital nature.

tions, in fact, point to

a

moderate further rise in busi¬

tal

Recent indica¬

capital outlays in 1963. Expenditures

ness

projects

are

likewise

be countered to

may

expected

social capi¬

on

rise

to

further, but

extent by continued restraint

some

in Federal Government

spending programs and by
softening in house-building activity.
■,
All

in

United
trend

all, the Canadian prospect for

States,

seems

to be fot

1963, as in the

following the marked expansion through most of

1961

and

over

the average production level of 1962, but

not

1962.

This

would

produce

may

probably

turn

out

to

be

better

however, the Canadian
to build upon

v

For

Should external de¬

than

thus far

is

economy

in

suggested,

good

a

position

the forward progress made in the past

year.

Canadian

Canada,

the

Minister

year

1962

one

was

of

progress

promise despite some temporary financial

and

disturbances

mid-year, f;

■In

the

National
at

third

annual

over

the

rates.

previous

serious

This

due

year

drought

1962

the

the

largely

the

same

of

Canadian

milestone

represents

conditions

tion advanced at
real terms

of

reached

While farm production

1961.

by

an
was

to

as

of

$40

increase
up

As

Gross

billion
of

from

non-farm

9%

was

7%.

the

produc¬

total production.

the increase in total output

1962

by

even

Canada

that

had

The

world.

In

Of sig¬

economy.

in
industrial production which, in the third
quarter of 1962,
13% above the cyclical low point in the first
quarter
in

Particularly encouraging has
durable production

lowing five

years

over

the

been
same

a

19%

in¬

period fol¬

of relative stability in this sector.




fortified

and

as

accrue

will

other

by

reversed

inflow

outflow.

With

the result
cess

hf

was

the

was

con¬

policies,

imports

current

account

was

some

in

heavily

exports-had' to be

ever

their

meet

of

for

a

pa id

its

situation

a

involved

purely

immediate corrective

have

made

been

size

the

of

monetary

manner

available

and

debt

restored

and

our

policies

in

balance

of

our

fortify
years

invested

realistic exchange rate. Over the past
with provincial authorities,

our

have, along

we

large

of

sums

in the

money

of

construction

technical and vocational schools to improve the quality

ex¬

.o&qiur labor fprce. This has already begun to

pay jdiyif
clerids. More recently the government introduced a bill

adaptable and

more

flexible in the face of automation and other industrial

were

representatives from all sections of the economy with
a view to improving the basic productivity in Canada.

of

most

measures,

of

Monetary Fund and other

government

expenditure.

sources, and

This

up

our reserves

help promote

towards

a

on

in

a

number

June

to

of

others.

bolster

Of the

Export-Import Bank of Washington has been
the same time, there is some evidence

in

has been made, but it would be

the

measures

Our

entire

transportation

is

system

of being improved. A nation's transpor¬

process

tation

system is

basic asset and

a

efficient

an

svstem

permeates the entire economy. Likewise, an inefficient
system burdens the entire economy with costs, hidden
and open. The government intends to implement the

principal recommendations of the recent report of the
on Transportation.

can¬

Royal Commission

a

resumption of long-term capitaF inflow into Canada.
progress

effectively.

more

ex¬

of

Canadian

new developments
techniques and products and assist them to compete

in

change reserves, $350 million has already been repaid,
and the stand-by credit of $400 million arranged with
celled. At

Center to

producers to keep in the forefront of

$650

foreign

our

National Design

a

designed to improve the quality and quantity of indus¬
trial research in Canada. These will enable Canadian

more

generally have fallen to lower levels. The temporary
tariff surcharges have been removed from many prod¬
reduced

1961

and efficient designs for

new

products. In 1962 the government passed two

reduced the bank rate in several steps and interest rates

borrowed

in

established

We

program

overnight. It also succeeded, more
improving our international : payments

adequate level. In line with this progress the temporary
are being relaxed. The Bank
of Canada has

the

New

financing

strengthened by

management

consistent with the needs of

few

net

confidence

and

the

broad objective of government policy has
improve the efficiency of the! economy. Success
in this area will' improve our position in world markets

measures

million

for

change. Our National Productivity Council has already
served with distinction by bringing together leading:

gradually, in
position and building

ucts

commitments

industries.

Another

ou t,"Of

measures

of its

of

It included higher interest rates,
surcharges, special borrowings from

tariff
in

in¬

them

number

a

the International

reductions

rapidly

a

substantially

been to

temporary.

temporary

the

payments.

heeded to deal with the emergency. The short-term pro¬
gram

of

number of

a

financing

coverage

of small business. All this has been

blend

deficit

for'

increased

has

designed to make the labor force
this

inflow

net

expanding needs,

have been

exports

broadened

facilities

the; government's fund of foreign exchange reserves.
In

reduced current

a

smaller

a

cov¬

foreign exchange emergency. The

a

involve

amounts available

Bank

has

and

the year the

of

there

and

earlier, financing

will

capital to

growing level

balance of

difficult

and

deficit

The

ways.

capital had hidden the fact

capital

At the same time

tion network in

lines

we

have extended

our

transporta¬

number of ways including spur rail¬

a

pre¬

to new resource

areas/ and by completing
Highway. Improvements to the effi¬

way

current

ciency of the agricultural economy are being carried out
under the Agricultural Rehabilitation and Development
Act among whose purposes is to adapt submarginal

been

account,

slower

have

while

our

the Trans-Canada

the

response in commodity trade has
might, have been hoped for and we
large current account deficit. Similarly,

than

a

have

reserves

reached

a

more

agricultural

still include special borrowings and without
these they would still be inadequate.

land

government

satisfactory

elvel they

has

These two issues

large

continuing

actions

are

with

carry

not unrelated. In

deficits
them

massive inflows of capital

capital import
by

in

our

the

of

an'

(unhealthy

current

drain

account

this

on

deficits

can

mestic levels of production and
•

as

in

present

our

would

are

that both

be

to

employment particularly

circumstances,

actions

looked-for
cannot

balance

be

in

achieved

A
to

trade

external

overnight.

of

of

efficient
royal

The

uses.

commissions,

will

bring

in

ex¬

useful

fairs,

and
way

fully resulted in

introduced.

greater

use

which

will

government policy

There

promotion,

more

to

foreign

improve

relates

has been

The
an

the

more

directly
inten¬

an

participation

contacts

for

a

more

National

Oil

in

Canadian

of trade missions and in other

policies of

put

Glassco Commission

operations.

payments.

export

trans¬

will

of

area

Other important

Canada

Operations

government

balance

producers by

been

Canada's

fourth

the

sification

;i<

of

are

industries

our

working at full capacity.

The

efficiency

rep¬

do-

Government

on

Thirdly,

harmful

commissions

into effect recommendations of the

financed

clearly

resources.

two

Finally, the government has already begun

reliance {on

always be available. Secondly, foreign
an increase in interest and divi¬

borrowing

more

recommendations in these fields.

place,

illustrated last

was

payments to other countries. If these

resent

not

as

other,

trans¬

means

further foreign

when,

danger

which,

the first

international

to

established

dealing with finance and taxation. It is hoped and

pected

large

impressive have been the gains achieved

was

1961.

of

In the early part

dend

1956.
The growth in real output was
accompanied by relative stability in the price level and
continued improvement in the
efficiency of the Cana¬

of

years

to

creased in the past few years. The Industrial Develop¬

payments problem.

peak reached in

crease

continues

rate

government has made financing easier in

result

have been running

we

stubborn

a

summer, may not

Equally

assisted

mentioned

I

sufficient

our

position. Canada's basic balance

inflow

this

nificance also is the fact that per capita real
output rose
in 1962 by more than
5%, and surpassed the previous

dian

exchange

capital. To ensure that businessmen in Canada will have

greatly from

recovery

1961,

rates

realistic

be

to

account

large inflow of capital irom other countries.

a

Until

still

quarter

Product

just now

are

we

evidence. Over the coming

matura to remove all of the temporary measures imme¬
diately. While there has .been some improvement in the

Finance

of

ability to

exchange crisis, have laid

an

including monetary and debt management policies.

compared with any

the

in

payments problem is that

Good

HON. GEORGE C. NOWLAN

,

;

new

turn upward again from the average rate of 5.8%

mands

in

gain

Unemployment, accordingly,

of the labor force recorded in 1962.

-

moderate

a

enough to provide jobs for all of the expected

entrants to the labor force.

I

some

plateau-like business

a

of

tional transactions. Our exchange rate policy

issue is the urgent need to improve

balance of payments

ered
:

recognized that the exchange market for the Canadian
dollar

face

the

benefits to Canadian producers, we may expect to see a

labor

our

imports and exports of goods and services has been

encourag¬

less

also

account

1963.

in

more

ment
our

gains in.,Canadian exports will not

new

achieved

easily

taking

it

substantial lowering of our deficit on current interna¬

rate of unemployment in recent years that

The second major

conditions-in the United States and

conditions,

S. This action, and the clear evidence of the

seeing statistical

is higher than we would like it to be.

developments have been particularly

demand

such

great trader

as a

important single step taken to deal with

the foundations for benefits of which

f. w. Nicks

ing in the light of the many uncertainties in the world
the

most

defend

living standards of all Canadians.

industrialized

other

the external trade figures, but the

and

traditions

long-term problems has been- the lowering and fix¬

cents U.

$1 billion to $1.5 billion per annum. This gap between

picture

our

Canadian 'Governrhent's firm willingness and

rate

rowing of Canada's foreign trade and payments deficit.

economic

as

ing of the exchange rate of the Cariadian dollar at 92

in

good hopes for renewed progress in the nar¬

These

will be forthcoming

apd, as, g yital, growing, and developing economy.

this

a

of a long-term constructive

story of meeting these long-term problems

a

way

The

very heavy deficit in our current transactions through¬
out the past decade. This deficit has ranged from about

are

enduring solution

an

The story of recent Canadian economic

on.

consistent with

a

our

earlier in this article that employ¬

made

was

has been

signs in recent weeks have become more favorable, and
there

goes

in

running

was

performance of the Canadian economy

raise

and

standards

Results of such improvement have been

in

appear

emphasize that

policy is

encouraging, there remain two major economic

force1 has

by the lower exchange rate on the
slow

time

expanding markets. In the first

of

1962, business investment

ment in Canada had been

which has been helped

Canadian dollar.

the

was

Mention

clearly been improv¬

a process

demands

the

force

in of¬

petitive position of many Canadian
ing,

climate for

hospitable

a

further measures

and

nature,

incomes. In

First, there is the continuing need to generate

of the earlier emergency

industries has

maintain

of economic growth that will absorb our growing labor

At the same time, the com¬

sphere.

accom¬

tinue

especially in the monetary

measures,

been

issues to be solved.

relaxa¬

a

I would like to

crop.

exchange

will

we

capital in¬

been declining and the latest

employment has

of

growing

by

While

1962

as

and

time

some

such

productive foreign investment.

nearly 9% higher than in 1961.

quarter has been

followed by a strong recovery
ficial

level

higher

nine months of

the best

activity

manufacturing
a

flows

welcome

to

adopted positive measures

meet

most encouraging ad¬

a

more

period of 1961. The

We will continue

come.

imposed at the time of the exchange crisis. We have

gain in several years and one that
has included

to

the third quarter of
1962, income from wages and salaries was 7% above
1961 while personal disposable income increased by 8%.
The level of corporation profits has also responded to
the gains in economic activity and by "the'* same' com¬
parison rose 11%, Higher incomes have, in turn, led to
increasing business and consumer confidence and spend-:
ing. Consumer outlays on goods and services in the third
quarter of 1962 were 5% above 1961. Spending on
durable goods rose by nearly 6%'. Business spending on
plant, equipment and machinery has been increasing to

product prices.

will probably see more pressure on

probably require net imports of capital for

1961.

panied

petroleum products should increase by about 4%, but
the increase in refining capacity will be greater and we

Thursday, January 31, 1963

.

cannot be achieved by restrictive measures such as were

tion goal of

major export projects are now operating. Demand

.

figure on a seasonally adjusted basis was 5.9% of the
labor force compared with 7.7% at ihe beginning of-

The

800,000 barrels a day. Natural gas production
should increase at a lesser rate than in 1962 since all

176,000

average

on

were

Canadians at work than in the same

production to increase by J
Oil Policy produc¬

1963, I expect crude oil

In

there

1962

of

months

the government of Canada is hampering its
efforts to stimulate national industrial growth and

economy,
own

gains in production have increased job oppor¬

tunities and reduced unemployment. In the first eleven

is limited. By

investment

dividual

These

v

.

ways.

specific nature have

Policy has

increase in exports

as

well

success¬
as

in

a

of Canadian oil in domestic markets. An-

Number 6234

Volume 197

other

and

fundamental

The Commercial and Financial Chronicle

.

..

government's
This will
permit the development of a valuable resource of benefit
industrially to Canada, and beneficial as well to Can¬
ada's balance of payments. Also of great significance to
change

the

was

A.

decision to allow the export of surplus power.

the balance of payments

The

growth

benefits

improvement

to

action

this

is

total
sum

in essence it is

technically complicated,

of certain parts,

import

year,

along

$700
include

benefits
Health

million.
an;

exceeding $200

insurance

by the Canadian life insurance

com¬

it has been

but without spectacular

for twenty-five years and it

is in accord with the eco¬
direction

of increased

Canada

ever,
of

production and trade in products in which

a

as

result of

some

of these

that

expect

increase

and

established peaks.

the

Prime Minister of Ontario

a

close

come

HON. JOHN P. ROBARTS

sale

to

In the early months of
A. Ross Poyntz

ceived

should come close to $60 billion, which is the
highest
figure in the world when related to national income.
The

will

assets of the Canadian life insurance

continue

companies

to

grow at a satisfactory rate and will
$10 million by the end of 1963. The net interest
yield on these assets should be well above the 5Vt%

exceed

policies, Canada experi¬

rate

of

1961, and I fully expect another trade surplus to have

play

a

taken place in 1962 when final results are available.

first

trade

surplus

in

about

a

decade

in

1962. Conventional mortgages Will continue to
prominent role in the investment operations of

various forms will become

Finally and without having dealt with all significant

prominent. The

more

com¬

longer-term measures, I wish to mention the National

panies will continue to be the major sustaining force

Economic Development Board. This is a body which will

of the corporate bond market and will also

examine some of the longer run

increase their ownership

omy,

make reports. It will act as a

sector and

problems in the econ¬

bridge between the private

government, have

an independent existence
people, unharried by dayto-day administrative tasks. By drawing on the best
opinion and taking a long look at problems, this board
will be able to offer sound judgments on prospective
Canadian economic developments.

in
"

'f

i

•

'

,

i

*
'
•

-

•'

'''*

•

/

.

l-'

i

-

-e

1

>

*

l

We :Mve been experiencing a

,

'

*

\r~'"

'

«

x

omists

be

^own-turn

in the level of business in early
1963, I feel that this matter has perhaps created more

'may

a

than

*

warranted

r/

Qaution. I am not
who view the forth-?

those

among

marked expansion in

activity. A leading contribution to the upswing has been
by the strength of the external sector. Develop-

coming year with pessimism.
I agree that there may be

ments

indications

costs

and

prices in the

past four

years

econ¬

apd a j number of business executives that there

made

in

with

seemed

reserves

to

of

the

industrial

decline

in

stock

foreign

fore¬

period of uncertainty and::
slackened economic activity. That
the

a

economy

its

growth

able to maintain

was

momentum

is

concrete

evidence of the underlying strength
of our economic structure.

Looking

back

1962,

on

from

an

Ontario point of view, is

extremely

encouraging.

marked

sudden

the

and

Last

year

a

spectacular recovery of

province's automotive industry,

in

of

some

levelling-off to

a

fact,

a

motor

more

vehicles

were

any
other
year,
exceeding
the
previous high of 1953 by more than
20,000 units.

The

Despite the fact that much has been said among

;

t

combined

produced in Ontario in 1962 than in

President, Industrial Acceptance Comporation Limited

the econpmy arid reduction in our current account

deficit.
y

:

exchange
shadow

J. H. RANAHAN

constructive, rpositive growth

ensure

May

In

companies in the field of personal health insurance.

Other longer-term measures will be brought forward

future, to

in

A feature of the year may very well be the marked
increase in the activities of the Canadian life insurance

and be staffed by competent

in the

of municipal and government

vitality. The dramatic fall

prices

bonds.

particular pro j ects, carry out studies and

assess

undoubtedly

1962, the Canadian economy re¬
series of shocks that severely tested its funda¬

a

mental

the life companies and other real estate investments of

her

enced

anticipate the possibility of
relapses from newly-

intermittent

some

gains. How¬

life insurance should show

new

experiencing

solid performance,

a

may

additional

the total of $7 billion in the year,
The overall total of benefits in force

only part of a larger program to expand
Canadian manufacturing in a variety of ways, sample
shows of Canadian-made products, double depreciation
on investment in new
products or in surplus manpower
areas, and reduced taxes on revenues from increased
sales being other examples.
As

we

provide

•

in

turn

modest

be efficient. Indeed, this development may

can

be viewed

should

should

of life; Canada's hopes lie in the

nomic facts

C^^3

C.

new

benefits approximating $100 million.
The Canadian
economy in
1963

automobile tariff schedule

A.

endeavored to employ our resources
by branching into
fields in a way that will have a beneficial
effect
on the
company and the economy as a whole. We will
continue to plan for an expanding volume of business
in 1963, even
though we

mil¬

underwritten

value of parts which they can produce cheaply and
competitively; This approach of expanding industrial
production in Canada by lowering tariffs is now novel;
our

■■

The I.

Ltd, and Merit Insurance Co.; has opened close to 60 new
branches in Canada this year; in other
respects, we have

about

benefits, which should

panies

feature of

combination for the
company, even though their effects i
are not instantaneous.

This

and flow of

produce cheaply, provided they can export an equivalent

a

with the marked lower trend of interest rates
since about the first of October have formed a valuable

increasing
for policyholders' dividends and

lion.

which they cannot now

Canadian life insurance

of

policyholders and beneficiaries. 1963 should

would

death

simple: Canadian manufacturers will be allowed duty¬
free

the overall earnings for the
year. However, record
high receivables acquired in the last half of the

Group of Companies, consisting of the
parent firm, plus its subsidiaries, Niagara Finance Co.

aggregate
on

maturity

further growth

see

outstanding development was the action
automobile transmissions arid engines. While

and

41

in

demonstrated during 1962 in the increasing flow of

was

further

taken

POYNTZ

Company of Canada

has occurred in 1962.
A

ROSS

President, The Imperial, Life Assurance

have been measures to improve

the balance on tourist account, and a large

(497)

rest

impact of the

of

our

Hon. John P. Robarts

.

recovery in motor vehicles on the

economy was

immediate and far-reaching.

Total value of factory shipments rose by 10% to a new

level.

record

Production

of

mofct

durable

ticularly machinery and equipment,

;

construction

The

goods, fcar-

rose over

Steel production in the province was
at close to capacity.

' the year.

tip 10% and

ran

industry also expanded during the

capital investment

year as

rose to almost $3.2 billion in
Ontario, approximating the 1957 record, with expendi¬

tures
total

on construction
representing about two-thirds of
capital investment. In the construction field, the

Canada have been among the most favorable of all
leading industrial countries; and this, alongside the firm

certain

establishment

im¬

ing down from time to time. Since

in; the
being rooted out. The upward longer-run

business has been operating at'a very

Preliminary data indicates that mineral production is
valued at $902 million in Ontario as value of output

high level for many months, I expect

in the metallic minerals fell farther than Was
expected,

that

even

reflecting to

tion

occurs

proved

v

our

exchange

rate,

has

unemployment has stopped. Our

becoming

greatly

competitive position. Inefficiencies

our

economy are

trend in

of

more

manpower

is

highly trained and flexible. The founda¬

the

economy.

Increases

in durable

still be

of

on

our

manu¬

current account has begun to show

a

we

am

be

signs

seen

piay

!

do

any

slow¬

experience I antici¬

mild nature and brief

a

con¬

to be unduly

see

no

pessimistic,

The year 1962 has been a successful one for our own

company,

although the sharp rise of

costs from

money

leading sectors

were

the institutional and business fields.

In the resource industries the

a

picture remained bright.

large extent the decision to reduce nickel

output in the last quarter and the continued decline in
uranium
record
same

production.

was

was

reached

a

set

in

In

the

agriculture,

total

value

Opens

ties business from offices at 1178
Hamilton Avenue.

business from offices in the Hynds

Hoke is

engaging in

a

B.

securities

Building.

Natl Sees. Staff
5f'*

\

Securities

tion,

as a

For

Co.;

new

The most heartening development of 1962 was the
continued improvement in employment. Total employ¬
ment in the province rose to 2,300,000. Last
year, a
significant number of new job opportunities were found

in the

manufacturing and construction sectors. In addi-

senior

on

Limited
Member

Corpora¬

New

past

ten

years

Equitable Brokers Limited

Mr.

Member

with G. H. Walker

was

where

member

of

he
the

of The Investment Dealers^ Association of Canada

York

was

of the Toronto Stock Exchange

the

research
was

Canadian Investment Securities

securities analyst with Moody's

to

Draper

Service, Inc., from 1943

1953.

Mr.
for

& COMPANY LTD.

Research

senior securities analyst.

Inc.,

Investors

r

Continued

Woodruff

his

is

analytical

petroleum

and

well

work

paper

Head Office

known

in

y

the

60

industries.

Yonge Street, Toronto, Canada

'

>

Since 1923

this
Members The Toronto Stock Exchange

outline




25 ADELAIDE W.

TORONTO, CANADA

page

J Equitable Securities Canada

t\

In addition to the New York

So¬

Branches:

ciety of Security Analysts, he is
a

'

Montreal

•

•'

Hamilton

•;

Kitchener

member of the American Petro¬

leum Institute and the
ent

Petroleum

America,

vV-.\

•'

U. S.

Independ¬

Association
V

of'
••

new

of pulp and paper which
high of $505 rnillion in 1962.

National

of

department. Prior to that, he
a

;

ii'i l(' C\ '

1

,

Broadway,

the

Woodruff
&

;

r"

staff
&

120

City,

CHART SELECTED

•

j

Paul B. Woodruff has joined the

investment

CANADIAN STOCKS IN

a

production. The

Woodruff Joins

C. B. Hoke Opens
Wyo.—Chester.

however,

of

true in production

early May to the middle of August has been reflected

CHEYENNE,

for

we

in durable goods spending, but while the record

PALO ALTO, Calif.—William C.
Deitchman is engaging in a securi-

write

maintained, and

fall short of the 1962 mark, here again, I

reason

will succeed.

W. C. Deitchman

predicted decelera¬

duration. A measurable decline may

improvement, and the government budgetary deficit
clear objective and know how to reach it. I

we

in 1963, a high level will

pate to be of

J.H. Ranahan

has been cut. We have some way yet to go. But we have

fident

if the

down that

facturing production have been especially strong. The
deficit

but I feel that

'

tions of this current upswing are being well distributed

throughout

extent,

have to expect some degree of slow¬

Subsidiary: Equisec Canada Inc.

42

The Commercial and Financial Chronicle

42

hon.

41

Continued from page

tion, the service and trade sectors continued to employ
more workers. Thus the whole labor market came into

it

achieved

top of this, the average rate of unemployment in
Ontario in the last four, months of the year was under

through

;

^

;

surplus for the second

production and higher

when $770.5
ments

reduced.

<

the
the

about 8% in dollar terms.

Hon. Duff Roblin

in 1963.

The sudden financial crisis

is witness to the basic-

peared in the first half of 1962

inherent in the Canadian

in

seeking out new markets,

the efforts of Ontario

stimulate

To

'•

;

»

-

lV

,r.

,

manufacturers to

get itito exportJ markets, the government of Ontario
launched a trade crusade in 1962. This crusade, designed

province's rate of economic growth and

to increase the

provide

employment opportunities, includes selling
of the world, establish¬
mutual agencies to represent

new

missions to the foreign markets

manufacturers'

of

ment

companies abroad and the location of new prov¬

Ontario

to serve the

incial trade offices in Germany and Italy

market area. This program

will be continued
expanded in 1963 with particular emphasis placed

common

and
on

I

States.

trade with the United

our

confident that

am

we

will

see

levels of production, income and

a

employment in 1963.

President, Dominion Oilcloth & Linoleum Co.
At the beginning of

of 1981,

nomic

the

sectors

various

revised 1961 figure of $1.75

barometer of

good

will surpass $850

same

force to keep in

million."
important factor which indicates the sound

An

At the

ment.

that annual retail sales in Manitoba

be sold if the price is right.

can

colorings

designs and

are

required for

and standards must be kept

The cost of
these

changes,

not

are

raw

duty

however,

dollar.

was

or

surcharge

.

.

year

mission

trade

previous.

Amongst

established by

during 1962
Red

The study will help

major

construction

projects

under

construction

floodway

larger

by

30%

the

than

of

the

St.

the

on

sider actively

$16

million

continuation

will be

As

dredging and

combined

Lawrence

Far

increased by the depreci¬

of

work

a

similar mission to the United States.

further assist to exports, the federal arid Manitoba

quality, of Manitoba-manufactured consumer goods. 'Re-

completed

V suits

of this

Industrial construction includes the building on new
location of an $8 million brewery in Winnipeg; con¬
in St.

tion

quantity of large sample orders inthat the door has been effectively ^opened for

all

1

and possibly the Argentine harvest will result in
decline

further

of

favorably with last

prices,

as

sowings

there

started

phases

of

delicate

during

new

was

aerospace

development

the

a

items

surcharges have meant that

priced high

are

many

and

importation.

enough to discourage

-<

Hard-surface floorcoverings have been "made in Cana¬
da" for
and

ninety

years,

during which period

innovations have been introduced.
hand-made

were

Later, machinery
were

entirely, making them
was

designed and

a

many

saw

new

meet

were

the

needsfof

very

available

as

new

raw

ma¬

products

and

home¬

owners.

4)

is

months

reported down from last year.

repairs
ness

.

.

..

.

.

.

always

can

a

of

1962

in¬

Renovations and

large portion of the flooring busi¬

not be predicted

at this

time.

Despite the depreciation of the
dollar, competition will
require constant production of new
designs-and colorings
in order to
please the consumer."
-




a

the

trading

new

and

: •1; '* *

J

droughts

on

increase

experts

almost

were

ROBICHAUD

unanimous

in

forecasting

a

the Gross National Product has been

moving upward at

an

annual rate of

nearly 8%, and other indicators re¬
corded similar rates of growth. As

•

well,

high

on a

LOUIS J.

1962, and these expectations have been more than jusPushed by rising spending levels in all sectors,

the

apparent during 1961 when,

modest

meet

tified.

major contributing factor

a

greater

States
For

strength

market.
New

was

Canadian

of

particularly in

exports,

record, the

in economic

growth. With full agricultural participation, this growing
strength is

generally evident than

more

Value of agricultural
at

$378 million,

a

40%

ever

rose

to

a

record

One of the
that

there

is

before. T

production for 1962 is estimated
increase

the $263

the

United

"

Brunswick

per

farm

$7,100, compared with $4,800 in 1961.
overexpansion.

excess

The

province

is

not

capacity in heavily-committed in¬

and

In this

of

the

At-

both

main

and

as

a

most

as

would be

Hon. L. J. Robichaud

prominent factor,

regards commodity exports and earnings from the

tourist trade, which achieved record heights.

However, there does not appear to be the

expression

or

clarity
ex¬

leading indicators

pointing in several directions at the
are

same

unanimity of view in regard to the

tension of these trends into 1963. The

experts

that invest¬

the

pulp

export trade was,

are

ensure

with

being

The

expected,

of responsibility assumed by the government in its re¬

promotion programs to

growth

and

search

and

prevailed,

the' same

lumber, housing construction
some
types of manufacturing.

of

connection, Manitoba is unique in the degree

Canada

of

paper,

dustries, and consequently investment is free for chan¬

neling into "active development" regions.1

region

situation

million

major aspects of Manitoba development is
no

lantic"

areas

over

figure of 1961, and the net value of production

plagued with
ten

creased by 3.3% and
completions were up 8.17%, al¬
though the accumulated volume of industrial construc¬
tion

of the worst

one

province still recorded

expensive.

great many changes

architects,; builders

Housing starts for the first

was very

to

rising level of economic activity in Canada far the year

and expand¬

That Manitoba's economic resilience is based

degree of diversity

keep

can

development
that the .province's in¬

"

terials, making possible the manufacture of
to

changes

Originally they

made, reducing the cost considerably. After World

War II many new chemicals

The

ground -control

plant in Canada, will complete the operation.;

in the face of

;

be geared

HON.

and casings—are undertaken

ing to furniture and metal fabrication.
The devaluation and

imported

Manitoba

Premier/ Province of New Brunswick* Canada

two-stage

and

one-

ing activity in items ranging from styrofoam and cloth¬

year.

can

world;;

design and manufacture

Other industrial developments

these,

as

economic requirements, so.

activities. At present

instruments

nose-cone

means

rocket fuel plant,

a

of the

exporters

•.industrial/ patterns that are emerging in the western

plants on which construc¬

1962

Manitoba

:

with,- and can anticipate, industrial

dustry

province, and the rocket fuel plant, the first such

commercial

compare

.and

and develop¬

such

between

contact

buyers.

Through
pace

?

meat-packing and food-processing plants.

specialized of all

was

in the
year

in the Commonwealth,

Black Brant rockets—from
of

and U. £>.

Boniface, which already boasts the largest meat¬

part of the province's

as

$3J/4 million packing plant

of merchandising-were im-

unique form

pressive, and the

project.

a

"Fly and Buy"' program last

a

.flown. t<? Winnipeg to look, oyer the variety-and

;> were

y Whitesheli

the

on

a

October, whereby buyers for major-U. S. - retail stores

comparable to the $165 million, 2,400-employee

mechanisms to the motors

Twenty percent more flaxseed will be produced this

government (visited
of increasing Manitoba

determine the principles qri which

governments sponsored

final work
Winnipeg international air
Seaway;

Nuclear Research Establishment which when

Most

natural gums from the

was

19-merpber

the

of. the. group .has. prompted tho government to con-

cess

.

program—the

largest excavation project ever undertaken in Canada,

ment of other

from

labor

Manitoba's own development can be achieved. The suc-

way

beginning of-the five-year, $63 mil-

were:

River

markets

cork

.

time, operations are under way for

are roughly in balance.
Europe for the two-fold purpose
Preliminary estimates indicate that capital investment^'exporfcTaM of studying at first hand the astonishing
in
construction,
repair and equipment during 1962
and rapid degree of development achieved by members
amounted to $606.7 million, up $17*2 million-rfroni4he;
of thfe ECM^nd other industrialized European countries,

packing complex

affected by

Eco¬

of, the" economy,, to identify, those

ing

*

not greatly

the

of able" representatives, £rom

vup

And in October and November of 1962 a

de^

velopment of the economy is that production and trad¬

Specific

most are available in Canada and many

as

Spain, burlap from India,
ated

high.

materials

subject to

East.. The cost,

these

will take. ^throughout

step with anticipated technologies.

struction and relocation of

goods

.

qf high standard, that has gone into it,jwill

continued,; direct

Agents in other countries have proved that Canadian-

: V

pattern that trade and- in¬

and, because of the considerable amount of study

ruary,

dicates

made

the

areas where development and Job opportunities can be
enhanced.' Its. far-reaching report is expected in Feb¬

;

export business was increased.

xvl

and

established & "Committee ,on Manitoba's

Grand Rapids hydro-electric

however,

likely

Future", niade

Chalk River development, and work on the $140 million

marked decline in the next few months,

a

until the government imposed surcharges

growth,

;■

and pegged the
dollar at 92 % cents. The pattern of trade did not change
immediately but later in-the year imports dropped and

was

to

program

the training—and in some cases re-training—of the

stages

floorcoverings industry. There

long-range

any

which, is unique

research :as the key¬

on

and it is expected

terminal;

1962 indications pointed to improve¬

ment in the hard-surface

the emphasis

prov¬

be .one of the main bases of further economic develop¬

sales—a

excavation

Limited

those

were

general economic
strength—has been running at 4.7% above that of 1961,

and

v

Gordon Robertson

J.

of

and research

Retail

lion

further rise in the

industrial development, ;t

remaining part of this decade, the province, in the: fall

billion.
•

prac¬

with existing industry

.

continent,

dustrial development

•

-8% rise to reach $1.89 biU

an

with the

...

designed to assist existing industry, the

In order to determine the

expected that labor income for 1962 will be

lion, compared

-

innovations, the nature of

velopment.

3.8%

cial income should show

crisis in 1963, par¬
ticularly if our industries are .able to promote export
sales. This, of course, depends upon their aggressiveness
expect a recurrence of the dollar

to

,'._2

.

award

for its

.

.

the scope and balance of

were

regional development program

stone

since

7% increase to reach $1,460 million, while gross proving

j'

,

<

practical, businesslike approach to hew industrial; de¬

to exceed $900 million.,
^.
>
Personal income in aggregate is expected to show a

There is no reason

economy.

highest

far pewly-imported industry, and the

as concern

the

on

highest number of people employed in the province's

up

well

ince's

Manitoba entered the 1962-63 winter season .with; the

1959. It is

payments situa¬
tion. Nevertheless, the rapidity with which the economy
adjusted to this situation demonstrates the basic strength
instability in the Canadian balance of

"the

province

development program."

measures

has

history, and with the lowest rate of unemployment

as
or

state

a

special attention from the independent judges

strongly recovered from . the
severe drought of 1961, with production of grain crops
alone reaching a new record of 210 million bushels,
compared with 72 million bushels the year previous.

the economy
that ap-|

It is difficult to foresee the exact pattern
will take

province in the four-

Highlights of the Manitoba program which attracted

'

—

,

on

contributioh 16thestature; of;

million in 1961 and $58.7

million in 1960,

.

been described

be bestowed

Criteria for the award

as

Thompson

at

development

■-

the program, including relations

million, accord¬

exceed $159

with $101.4

Agriculture

(3)

;

■

■

ing to D. B. S. estimates, compared

.

1962 can be summarized as

this province since
1955-56 capital investment boom. On the basis of
latest information available, it would appear that
Gross Provincial Product increased by 6%% in real

terms and by

complex

Inco

the

industrial

had

25

Trophy

province in the United States

or

tical and productive program

•;

Jan.

on

.the program, its, progress, the number,, and kind of

(2) Mineral production, bolstered

should

can

industrial
•

-

at

trophy has

that

year

'->■.; •:

•

which

the "Professional

effective

most

state

v;• ;

The

by the first full year of production

being the best year for business in
the

:

with

history of; the competition to ; receive the award.

year

the $820 million mark for the

pass

the
any

C.,

D.

province

Manitcha is the first Canadian*

million in factory ship¬
recorded*-should sur-'-

whole year."•

in a row. Another

year

were

1961

record

the

above

7.2%

of

Canada...

or

running at

months of 1962 has been

Washington,

for

program

Value of manufacturing pro¬
duction,
which for the first -.ten

significant fact in the trade picture was that the deficit
on
merchandise trade with the United States was

whole of the year

Award"

(1)

of personal incomes in
the province in the neighborhood of 8.5%..Retail sales
increased by more than 3%. The year was also encour¬
aging as far as our external trade was concerned. Im¬
ports rose faster than exports during the first half of
the year but the trend was reversed in the last half
with the result that we enjoyed a small merchandise

'The

increasing degree of

and

of

presented the

such a striking feature
of the province's development.'
■
Three .factors are encouraging:

employment resulted in a rise

trade

high

a

and

history,

her

in

activity

business

percent.i\V.;-J- --M:
combination of increased

trading and competitive patterns in the western

Realtors

economic diversity that has been

On

The

Thursday, January 31, 1963

.

world.

its greatest level of pro¬

established

1962

and

duction

employment was maintained at an average of 4.4%, well
below that of Canada as a whole or the United States.

four

.

This point was recognized by the Society of Industrial

Manitoba in

adjusted rate of un¬

and the seasonally

balance

recent

duff roblin

Premier, Province of Manitoba

.

better

-.

(498)

same

time;

some

advising continued expansion; while others

ment is encouraged in areas where returns can be seen."

are

Similarly, the province is unique in the extent; of spe- ;
cialized opportunity, where the emphasis is on selectiv¬

ready started. There is undoubtedly much evidence that

ity.

This

aspect

becomes

increasingly

important

with

suggesting that the next post-war recession has al¬

could be brought forth to support either
•.

contention, but

Continued

on

page

43

'•

Volume

197

Number 6234

.

The Commercial and Financial Chronicle

.

.

,

Continued from page 42

:

Head VP of

it does

point to

Hendrix & Mayes

joined

investment

the

ment
/

:

tional

u

Bank

Building,

and

President

R.

since his

Hill

with

«

discharge

duced.

,

Grocery

governart

;

.

with

an expectation
high levels of corporate profits

the

ftorn the Air Force at the end of

||

duction, ^"labor and
decline of

the past year, and

/"
■
<
|
and, for Canada, crucial factor is the likely
development of trends in export markets. Here so much

resignation {'
from this position becomes effec¬

would entail a complete and de¬
tailed analysis of economic prospects in that country.
However, given the trends already apparent, it seems
probable that there' is sufficient impetus behind the cur¬

tive Feb, 2.

rent Canadian

of the Winn-Dixie retail operation
*

*

in North Alabama..His'

/

'

The firm of Hendrix & Mayes,

Inc.,

'

now

present'

Forerunner

firm

was.

the

of

formed in 1932, Both Mrj Hendrix
and. Mr. Mayes have bad long and
active Careers ' in the

field. -

' * \

under

;

'

,' *

-

Mr.

include

Head;

Edward

both
'

*

contribute

v

Miss

Mildred Edwards, Treasurer; and

Coburn Hendrix, Secretary; • Hendrix & Mayes is a member
6f
the
Philadelphia-Baltimore*

Washington Stock Exchange and
Stock

of

Exchange

the

"Hendrix

&

Mayes

said.

maintained,

business,

we

.

have

active in the

economic growth.

As

1963

markets.

u

A. G.

T

pro-

For
,

some

such

.

jhe

in reviewing
in

doubt, what is to

25%

then

at

the

,

twelve

past

no

Exchange' transac- f*

did

as

a

Association.

Oct.

A. G.

Y.— Plans have

April 17,

♦

sessions

in

ment law,

practice

of

Farm

high due to

are

super-imposed

the

U.

historic

automatic

S.

industry,
compe¬

the government's action by which,

the

not renewed.

was

an

rigid price discipline. ! A recent ex¬

was

on

on

industry, in which fierce

annual

because

waiver

transmissions

of

imported

the

into

Since all automatic transmis¬

of

the

cars

must be imported

relatively small size of

Canadian

market, the, impact of this step on the
of the Canadian automotive industry undoubtedly will be of major proportions.
4
»*;;
.

,

'

■

Meanwhile, continuing
% expansion

are

programs of modernization and

being carried out.

In Ford of Canada in

I' 1963 these will include: completion of expansion of the
Oakville

assembly

plant;

modernization

of

Windsor

y foundry facilities; addition to the glass fabricating plant
| at Niagara Falls;,and establishment of a new national
-

parts depot near Toronto and a new regional sales office
building and parts depot in Vancouver.

These, and others, are predicated on the long-term
growth of the Canadian automotive market, as well as
its

on
we

increasing competitiveness. Both these factors,
believe, will be clearly evident in the automotive

industry in Canada in 1963.

and marketing con¬

their

Continued

on

page

44

excellent, wine

the highest selling price to

year

FOUNDED

and

increase

a

3%

same

increase

as

compared to

period of 1961. By June

a

1885

re-

BROKERS

crisis of national

a

importance had developed in Canada which threatened
our

dollar

on

the international

k
\

a

Hn

deficit balance of

listed, unlisted securities

payments with the rest of the world causing emergency
measures
a

/

Heavy buying of

scene.

imported commodities had created

15%

to be

applied. The dollar

surcharge

levied

was

on

including imported wines. While
able at the end of the year

no

and commodities in the

devaluated and

was

some

imported

records

were

goods
avail¬

regarding sales of imported

law,

lawyer referral and trial practice.
special workshop for traffic

£ their volume of sales has continued to drop in favor of

United States and Canada

:v;

wines for the past six months it is reasonable to believe

A

judges and prosecutors has been
announced

April

19,

all-day

for

in

Friday

morning,
with

connection

Law-Layman

an

conference

which is open to the public.

1

jurists from the region have been
invited to speak at general assem-

sessions, according

to Mr. Melvin.''

■

.;




.

V ;

%

.

1

'

"

,

'

'

With regard to imported wines

we

are

end

versus

have time and time again been

Canadian
most

wines

Prominent regional and national

blies and other

Canadian wines.

f:

wines, and

acceptable in

many

have

been

pursuing

in

particular,

countries abroad

a

most

policy directed to the U. K. and other
V this time substantial shipments of

2

given evidence that

as

our

vigorous
areas

CHICAGO

Broadway, New York 4
INDIANAPOLIS

TORONTO

fine

bearing the "Grown in Canada" stamp. To this

we

THOMSON & MSKINNON

Canadian wines,

Chateau-Gai wines

43

export

offices in the United States and Canada

abroad. At

wines have been

exported to Jamaica and fourteen

more

Caribbean West Indies group. Our

philosophy of main-

islands

of

the

rAlt

This inherent difficulty

Ontario's Niagara Valley

for

year

in higher

15%

judicial administration,

unauthorized

"vintage"

grapes as well as obtaining
wineries in history!

for the

workshops planned for the meet¬
announced

a

were

manpower.
new

a

at

S corded

President of the Onondaga County
Bar
Association,
Chairman
of

has

reached

as

I ably during the first five months of the

Syracuse

economics of the law, general law,
estate planning, tax, local govern¬

be in larger countries by econ¬

can

| .The trend of imported wine sales dropped, consider-

of the regional meeting.

Hancock,

income

Sampson

heralded

participants from the

W.

1962. Further records

ditions. The grape ^ growers of

cording to Crandall Melvin, Chair¬
Van

31,

gain

Karl E. Scott

economy

report

in its upward swing of indus¬

excellent crops

New England states, Pennsylvania,
f.
>'New York and New Jersey, ac¬

ing,

to

10% increase in earnings has

employment and in

Bar Association meeting which

second-

our

reached in output of labor,

Regional Meeting

A.

of

gratified

are

Wines

achieved.
This
is a
slightly
higher record than the general econ¬
omy

man

For the end
we

trial production for a 7%

will include

the

our

been

can

a

overnght,

tariff

from

months

Chateau-Gai

company,

quarter

tions."

Regional Ameri-

can¬

extent

.

strong position

a-

that

Northeastern

same

sions installed in Canadian-built

showed the Canadian economy clos¬

Over-the-Counter

20

exercises

Canada

in the Nevr Year. A "look back"

come

most,

Securities

been announced for the

they

the automotive

literally

wishful thinking

some

Limited.

SYRACUSE^:;N.:

as

ample of this

customarily spent
events of the past twelve months^and

trying to visualize, with

as

tition

of us this time of the year is

interisifying^ ouf ■effott$ in V"
Municipals, ahd * placing new em¬
phasis oh < Corporates,| both {in

Bar

small

is aggravated when sudden cost increases of considerable

Chateau-Gai Wines Limited

own

•

quickly

or as

President and General Manager

,

Municipal Bond Mar¬
in*11

through

relatively

not be offset here to the

SAMPSON, ESQ.

elude1

■

Canadian

on many

the

domestic market. Cost increases

competitive in both national and inter-

ing in

and

by

magnitude suddenly

more

ket. Our plans for .the future"

sold

buoyancy in the

place does not alleviate the

omies of large-scale production.

always

been

These problems are still with
important consideration in the pros¬

and remain an

national

general investment

a

we

this

course,

market

Common Market.

expects to

have

Of

me

make them

v

months^ Mr. Hendrix

"While

upon

problems imposed

broaden its sphere of activities in
the next few

substantial

a

power in this

of which, Canadians, in a
optimism, are making full

industries

Boston

Pittsburgh

and

con¬

-

,

,

gresses;

.

Stock Exchange.
'

mood of

im¬

as an

£t will become even ^more pressing to develop
better-^vay s inrallocatingt;OUr^human resources and to

.♦

v,..

-

member

f

.

last year, I felt it incumbent

pects for^Jonger term

1

H.

of Canadian wines.

automotive

nation's

there is

purchasing

beginning of 1962—the problem of unemployment and

us,

associate

economy,

country

pulp mill in the east will

the

of

the implications of probable British entry into the Euro¬
pean

-

people both.,

increasing sig¬

if the

be considered

index

reservoir of

to underline two problems confronting Canadians at the

♦

Of

office;

a new

use

more

use.
-.

In these pages

Hubbard, Vice-President in charge

Montgomery

sumer

is

Thus,

can

portant

greatly to higher levels of income and

employment.

W.

Pennington, Vice-President Bir¬
mingham office in charge of the
Corporate Department; Charles C,
the

industry

construction The mine-mill-smelter complex being

posits in the north, and

"

♦

Officers of the present company,
in addition to Mr. Hendrix, and

and

approach 1963, the sustained demand by Cana¬
new passenger cars and trucks continues to

nificantly.

developed in conjunction with extensive base metal de¬

investment

we

large-size models

na¬

tional influences will be felt, but will be magnified by
the effects of several large investment projects already

"company

a

into 1963, and will produce an annual growth
something more than one-half that of the past
same

i

tax the capacity of our
manufacturing and assembly
plants. Not only is this buying pace continuing unabated,
but the frequency of orders for our

export drive to carry it well into 1963.

For New Brunswick specifically, these

year.

again. -The

dians for

'

'

retired,

As

carry .on

rate of

faced

President, Ford ' Motor Company of Canada, Limited

These factors suggest that the current expansion will

|, v

.formed in 1943 by James
R. Hendrix and Harold (B, Mayes,
was

be

and the stimulus of new

KARL E. SCOTT

any precise forecast

;

will

f,

pro¬

emigrating here from abroad will bring us
1963 another record
year, and the continued enrich-

depends upon * developments in the United States that

that company in July, 1962. Since
that time, he has been in charge

welfare

imported wine sales

,ment of, the social life of more
at home and abroad through the

A third

Hill's retail grocery operation to

and!

Canadians
in

the United States.

,,

it

^

We look forward to another year of strength
.promise.. Problems of increased costs of materials,

is supported by data from pre-^
liminary: surveys^of business intentions, particularly In:

vOver;

,

.

to build up inventor y He vels and for addi-.

reasons:

econ¬

enjoyed by European

wineries at home.

well rise for

very

place in Canada's

our

commodity and as such
should enjoy a greater measure of
recognition and pro¬
tection at home similar to that

some

-

-

our

consumer

is inevitable! The nine operating wineries in
Ontario have in the past decade
paid more than twentytwo million dollars for wine
grapes alone! We maintain
that our wines are a basic

spending has generally

.

a

omy

f

„

created

II A greater recognition of

There is also

justification f6r expecting this lag to be re'
•
I !

consistent

is
v.

Mr; Head joined •
Winn-Dixie, Inc.; after the sale of -

;

rate.

spending will continue

consumer

has

image at home,- and
abroad of confidence and
integrity in all of our activi¬
ties. This policy was set in the best
interests of the
public and of the whole Canadian Wine Industry.

^tional investment in plant facilities. Such

•

World WafMI,

consumer

Secondly business spending could

.

y.

Lieut-Col.

as

indication that

historical

.

..

^-General < Manager

as

•

5

company

growth

lagged behind the recovery, and there is at least

two

President. \
Associated

Company

11,
-

made today by

was

Hendrix,

lower annual

a

ing the past 18 months

The

Director.

announcement

James

Vice--

as

but at

products

rise, and possibly at an accelerated annual rate. Dur-

to

of

which

spending at all levels will rise and generate

some

Hendrix & Mayes, Inc., First Na- >

factors

43

taining the highest possible standards of quality for

,

of

expansionary influence on the economy.

has

firm

number

a

First, it is easy to state with confidence that

'

BIRMINGHAM, Ala.—Beverly P.
businessman and civic leader,

are

continuation of the upward movement in the

a

economy,

Head, Jr., widely-known Alabama ;

1

that there

seem

(499)

,

MEMBERS NEW YORK STOCK EXCHANGE AND OTHEt PRINCIPAL
7
SECURITY AND COMMODITY EXCHANGES
t

r

44

The Commercial and Financial Chronicle

(500)

43

Continued from page

.

SHAW

F.

R.

which is

Foundation Company of Canada

F.

We

forecasting

are

the opposition parties can combine to
time and, as a result, government

same,

rent

of

dollar

has

there will be

of

effects

some

buoyant factors

will

When

of

great

a

this

in

expansion

firms

many

period

of

the
into

expansion

certain

tapers

will

result.

become

so

effects

In

these
that

severe

and

becomes

it

loses

its

to

The general concensus of opinion in Canada
that 1963 will measure up as well as the

■-*
*

will

our

Canada.

round

77:;

■

of

7777*

HON.

economic

year of

in

Sixty-two

crisis,

nearly

one

was

a

in which there

every quarter of the

were

globe.

fortunate

very

our

was

77

in

that

none

Island®

very

are

£|

are

a

*

boom

was

1956.

J.

government

the best

tories

accumulation;

from

housing

creased, and the
uct grew from

over,

the

outlays

Serving
;

1962

In

Our

on

current

$150Cmillinn

in

a
$150 million, and

equal drop

in

7%

of

over

1961

negative

account.

effect

With

with

the

an

impact

this will

con¬

1963.

The

trade deficit in

aPPr°ximately

that there will be an
The trade
gap should be reduced.

1962Uhnfrth momentum carried through the balance
*
but|here was a tapering off in the rate of ex¬
pansion
the year
as

output

a

value in

is

| If

place

a

manufacturers

to

wore

on.

While the rise of

unem-

1^™*°™^* halted during the year> the
SSrrneeds t0 srow'i£"is to absorb its

rising

a

business, but
in
..

a

.

in

volume

which

electrical

erally

the

past

year

down in the economies of

partners

respects:

crease,

t i

strong

a

with

V!:1/

In

Sales of electronic

of

one

was

re¬

was

Nineteen

surge

in

hundred
Hon. R. L. Stanfield

domestic de¬

capital

preliminary

intentions

investment

higher than 1962,: inventories

reduce

the

national

was

Scotia,

expected

a

agriculture's

to hold

total

net

cash

income

reasonably steady to its

million, in spite of

increased

poor

7

•

>;

farm

.

also

and most in¬

a 7

good year.

was

economy

in Nova Scotia. For most people

Nova

is

in

prosperity

level of $45

in

1961

weather conditions

operating costs and consequently will
income

from

farming operations.

Although the quantity of fish landed declined slightly,
value increased 18% for the first nine months of 1962,
compared with
both

an

in¬

with television sets showing the greatest growth.
equipment and components showed

continuing—and, in some cases, record—growth.

-

1962

1961.

This strong rise

was

due to

gen¬

erally improved prices for nearly all species. In forestry,

export were at a record level.

appliance product lines showed

7

the

steady, and consumer incomes and savings high.

which

1

of most

7

that

substantial reduction in

a

>

:

the

great

as

sixty-three in particular should \

1962

major

in

major

that

business

of

buoyancy

dustries, 1962

several

corrective

continue

largest in recent times and that

evident

in

its

to

approximately

in. Canada

growth rate
our

now

notable

and

in 1962, when pro-

estimated to be about 5 %

J. Herbert Smith

crisis

expected

our

not be

advanced

o n

mand,

.

operation.

Sales

u c

see

gen-

is

suggest

eight per cent.
It
is
significant

in

Canada's first nuclear-electric power station went into

Orders for

that achieved

as

support not

was

exchange

expansion

cators and the possibility of a slow¬

excess

manufacturers

This

1963, although recent national indi¬

and

77777; 7

export trade.
For

which

number of unsettling developments

a

the

unemployment.

domestic

crops

.

.

included

measures.

substantial

of

>

Premier of Nova Scotia
vxlr'-;
1962 enjoyed a general increase in business

activity, despite

flected iti

continuing expansion

grain

7

HON. ROBERT L. STANFIELD

Canada

plant capacity among Canadian elec¬
trical

looks- particularly

$'777777'f-.-

This

in

excellent

the

production lines.

or new

Canada

»

this

electrical

the industry's

in view of

harvested in 1962.

were

selling value of factory

Canadian




the

£

for Western

outlook

The

1963, because it takes

buyers to locate new sources of supply and for

suppliers to schedule increased

$1.2 billion.
There

More¬

the

of

i

time for

well exceed 1961's output

may

only
a

e^P°rtS WiH Hse by
it is expected

imports.

of

by 5%, and reach
Walter R. Shaw

trihntr to reduction and surcharges,
tribute .exc a®ge Tate!
the
a

imposing surcharges and the devaluation

•

foreign trade showed
deficit

terms

1962

figure of $36.8 billion.

increased

: economy,

shipments,

in¬

v

of the dollar will not be felt until

National

increase of
This will be the largest

great

a

business and

favorable trend has been shown in trade,

an

it does all sectors of the

as

Canadian

been

the impact of

the impact of this increased activity.

to

was

Gross

manufacturing industry is reflecting

the

$2.5 billion to almost $39.5 billion
for

Canada's

increase since the 13% increase in GNP recorded in 1956.

gross national prod¬

latter figure

that

are

$39V2 billion in 1962,

has

basis

Canadian businessmen to purchase

rate of increase may

SMITH

about 7 % over the previous year.

Inven¬

liquidation

indications

Current

spending, business capi¬

shifted

HERBERT

Product will reach

spending,

tal expenditures were all
up.

'^17777.

''[

Canadian

some

While

d

whole,

since

*

r.

.

President, Canadian General Electric Company Limited

performance

Consumer

them.

trading

encouraging. 77V77I.77-77

year

of

•'

/

.

few

was a sharp
recovery from
slight recession in 1961, and this
continued through 1962.

for the

1

Canadian Gov¬

the

of

Canadian-manufactured products rather than to import

should export flour business continue

decline, in order to effectively deal with" the problem
of excess flour milling capacity.
;

There

Canada's -economic

possible. Further consolidation in the industry may

.

a

;7v

competitive conditions prevalent

to

explosive events

Africa, South East

temporary

C.A.

has also encouraged

our

become necessary,
wss

on

soil. The year, on the

own

it

year)

Daniel Sprague,

are

industry has become highly auto¬
mated over the years we cannot expect large future gains
in productivity. However, we believe that substantial

in

action

dollar and imposing surcharges on a

favorable

impressed with the ne¬
continuing program of cost reduction in order

today. Because

of

crisis took place

this unrest and

The industry has adjusted to a

domestic business is buoyant.

to meet the extremely

doing with great vigor.

ernment in devaluating the

outlook

the outlook for

outflow of

independence,

any

stimulus to the export

industry for 1963 is in our opinion improved over

cessity of a

maintain

to

The

not be

savings in selling, distribution and administrative costs

Asia, East Berlin, Mississippi, Cuba and India
| of these places. We—in Canada—
are

Britain and the EEC. However,

was

beginning to realize that, if they

are

reason

affected by final decisions between

be

Like other industries, we

SHAW

momentous

course

the

over

dollar crisis. Canadians

a

con¬

particular field—flour mill¬

long term

financed

been

by expanding exports—and this they

originally feared.

as

has

they must get their trade in balance

agriculture and related

lines—the

allied

mestic markets, and

77-77

WALTER R.

Premier, Province of Prince Edward
Nineteen

growth

or

an

are

Further, we must

grain handling, feed manufac-

the situation a year ago.

expected to set the stage

impressive

good

as

into focus last

are

higher level of grain prices both in the export and do¬

fair summary to suggest

a

are

of

Great

to

previous
People who make it their business to predict are
perhaps more cautious than the businessmen about the

be

by. the importation of capital.

capital and

prevail

will

sense

turing, vegetable oil processing and

C. E. Soward

year.

another

reached.

our

ing,

'

cer¬

seems

should

May when there

hope that the final outcome, as far

In

has, "

salutary
is

Canada

situation Was brought

satisfactory compromise

a

serious

This

ineffi¬

The consequence of this unfavorable

must as¬

Canada is concerned, may

be

longer term, but it would be

we

sideration. We believe there is

tainly the trend in the Canadian construction industry
today.
* i
'
*
1
1

for

be

good

EEC,

as

traditional

actually destructive.

that developments in 1963

the

industries will receive deserved

competition lean

circumstances,

in

years

Great

between

as

it

remove

SPRAGUE

which

industries

ex¬

as

conditions

continue to expect that the interests

.over-capacity in the industries^ concerned is the inevi¬
table

that

industries.

off,

costs and

Much publicity has been given to Canada's unfavor¬
able trade balance, particularly with the United States,

economy

Canadian

Business

deep concern

causing

and

that

sume

con¬

country! The

related

reached

been

and

modified

competitive

severe

ditions which prevail throughout the

period

been

Britain

hope that

be

to Canadian industry to continue

DANIEL

Frank H. Sherman

the expected entry of Great

has

has

companies in many Canadian industries,

these

and

of Canadian

considerably by the extremely

attracted

the

vigorously for export

Fundamental changes in world trading patterns are on

months. Although at this writing no settlement

high rise
more schools.

raises

success

expect that Canadian manufac¬

can

and
the
increased
opportunities
these
changes will bring in the months and years ahead.

SOWARD

sector

EEC

the

during 1963.

For individual

tended

into

undue restraints imposed on investment

no

in these areas

the

cre¬

campaign to strengthen the Canadian

with

met

E.

of the Canadian economy

subways,

buildings, hospitals and, of course,

The fact that the

do¬

increasing extent, the export

an

President, James B. Carter, Ltd.

only the need but also the economic conditions

of

not only the

the Canadian economy, and which can now be

serve

margins.

agricultural

:

for many

construction

its

competition

President, Maple Leaf Mills Limited
the

In

Britain

the

maintain

ciencies in order to prepare to meet both the intensified

during this period, so

C.

during the '50's seems to have, been reflected in a con¬

for

apparent

have in place

now

serve

to exert every effort to lower

capital expenditures will be lower than in 1962.

centration of population in urban areas.

necessary

but, to

the ,hoHzon.-It is up

materials

raw

.will

economy

capacity to

well. We

as

the

better in 1963 than in 1962.

impressive rate of industrialization of the country

ated not

manufacture ng

mestic market

7'

price levels to be the
and

the

Canadian electrical manufacturers
the

but

the closing months

oriented toward export markets.

while for transporta¬

wages

that

expected,

economy in

at least until late in 1963.,.

pace,

high level.

Our

"

This has

indicates

1962

present

to

pipe

and

they have been since 1957.

as

rapidly

and

been

particularly in product fields in which this
country has already built up unique skills and facilities

Employment will stay at the cur¬

goods production.

growing

Canada's

have

business,

automotive,

for

institutional, commercial and service construc¬

t

might

turers will continue to strive most

continue to find stimulation.

particular should also
in

slightly higher

steel

rolled

implements

maintain profit

underwrite
should

general and the construction industry

requirements

busi¬

our

plenty of effort is needed to try to

good volume of spending on consumer goods and

office

good;

have increased

Against these uncertainties, however, we can set a
buoyant factors. Canada's population is still

The

is

We expect

number of

changing cities.

flat

for

lines excellent;

precision.

tion

high level of activity in

a

tion and export, not as good as 1962.

Cost

from the

Limited

construction, highways, and con¬

agricultural

policies—always an important element in economic pre-<
diction—cannot be defined for 1963 with the .necessary

in

Steel,

home construction, commer¬

tainers

force an election at any

The economy in

1963

market

outlook

Our

cial

also influence decisions about capital

in

1962.

than

additional complications arising from

growing at an impressive rate. This should

,

of

Foundries and

for 1963, with Volume the same or

ness

purely
domestic sources. Of these, the main consideration is
the fact that we have a minority government in Ottawa.

a

7. ;/

; ' i

SHERMAN

H.

Dominion

President,

usage in

In this situation,

ity in 1963 should approximate that of the past twelve
months. Up until very recently a lower level of
activity

strength of the Canadian

the Alliance for Progress program.
are

country^

Thursday, January 31, 1963

.

77.|||777 Prospects for 1963777;;

all-time high, business generally was

an

and better things for our

countries—especially about
direct
investment in Canada—traditionally have pro¬
found effects on the volume of engineering and heavy
construction activity in this country. Accordingly, fore¬
casts for 1963 are complicated by uncertainty about the
effects of Britain's probable entry into the European
Common
Market and an indicated
re-orientation of
United States interest toward Latin America through
There

at

.

Current prospects are that the level of business activ¬

good in 1962 and the forecast for 1963 is for even bigger

Limited

foreign

in

made

Decisions

now

good

a

of living,

As reflected in her standard

health.

of

state

President, The

time—is in

Canada's economy—at the present

♦

,

.

a

poor

lumber

sawn

general

and

improvement

pulpwood
in

the

production

industry

reflected

despite

some

weather for logging operations.

Over

the

years,

coal

has

competition from other fuels.

been

receiving

increasing

This has necessitated the

Number 6234

Volume 197

The Commercial and Financial Chronicle

...

(501)

45

wgradual closure of some mines. However, it

manufacturing plants

that the

we

tions

is believed
stabilized. Other mining opera¬

industry is now

showing continued

are

facilities

being

and

added

carried out.

Scotia's

Nova

manufacturing,

leading ^industry,

be

period

a

of

most
in

i

producers

maintaining

The situation in primary manufac¬

significant
1962

of

United Kingdom.

uranium

allocation

the

was

12,000

a

for

event

ton

the

to

uranium

mining

continuing
with

contract

This contract will permit

in
the

of Rio

one

expect

Algom's mines to continue in operation until the early
1970's, by which time it is expected that demand for

are some areas that are overdeveloped insofar
housing and other building is concerned. There are;,

uranium for nuclear power reactors will have increased

we

can

aggressive fashion.

a more

sufficiently

to

permit

the

continuation

of

viable

a

key areas in Canada that are under¬
developed. It is in these areas that we can expect our

uranium

greatest expansion in 1963.

enable the other Canadian producers to extend the life

however,

million.

other sectors of
the economy, with overall construction advancing (al¬
though residential building starts declined), retail trade
and electric power generation increasing and motor
vehicle sales rising 11% for the first nine months, Un¬
employment in 1962, while still at a fairly high level,
improved considerably over 1961, and wage levels rose.

In

,

summing up, I would

tifiable

mining industry,' unsupported by government
contracts. At the same time, this additional contract will

some

optimism for

that

say

this

new

have

we

yean

There

of their operations by about a year. This life expectancy
will be improved to the extent that orders for uranium

jus¬

some

great

are

for civilian

opportunities for further development in Canada, and
we have all the necessary talents to contribute to this

uses

be found

can

An announcement

„

,

by the U. S. Atomic Energy Com¬

mission in November, 1962, of a stretch-out programme
for domestic uranium producers in the United States

growth.

economic

ALBERT A. THORNBROUGH

now

growth, certain developments are favorably viewed for

President, Massey-Ferguson Limited

uranium supply position "for the next' decade. Whereas

their

solid

Scotia's

Nova

With

for

might

The

Canada

that

There
as

Signs of growth are also evident in

foundation

rather feel

turing, however, is such that I believe

production,

shipments is expected to approximate $420

there

expansion in

ac¬

approximately 40% of the Province's net
and its selling value showed a
strong climb of over 6% in 1962. The value of factory
of

perhaps

status quo this year.

for

counts
value

I

somewhat over-extended at the present time and

are

that

growth, with major new
further exploration being
^;

equipment.

or

potential. These include international
proposals to change the trade pattern in the North
Atlantic area, the programs of the government of Can¬
ada, and in particular those of the Department of Trade
and
Commerce, and the new Atlantic Development
long term

Within

provincial government,

our

we enter 1963, sales prospects for the farm
machinery
industry in Canada are encouraging. Favorable weather,
a good harvest' and stable price levels
for most crops

throughout
the

with the
the

will

Scotia. Initial reaction
it is hoped that this continuing

growth of Nova

has been favorable and

$3

vegetables, envelopes, folding

and

and textiles. Work is

and

fish

a

is

modern in the world. Similar

in

most

with
drive

developments are expected

towards

better

outlook appears

President, Taylor Woodrow of Canada Limited and

products

Monarch Investments Limited

all-time

owned

a

not unreasonable

well

as

several

as

ahead

year

Of

be better than it

to

pected

'

ex¬

housing this

year

is expected to

location

right

the

and

should

optimistic.
is

and

We

are

position

young and

a

moving

Our

determination

with

nizant

of

ditions.
In
ward

but

is

The

is still

will, in

overriding charges being
development by municipalities.
In my

value homes, and

assessed

are

with

houses

a

an

I

would

ment

all

the

<

in

many

fields. On

dian

other hand,

the

,,

ex¬

there

outlook for the services offered by Cana¬

S. T. W. Developments Limited, a member

Assurance

Canadian
be

S.

business,

apartment
leased back

held

or

this
that
year

I

as

Co., sites

are

commercial,

structures,
or

an

sold to the

investment.

for

will

see

some

a

anticipate




a

office

crisis, ^as

emergency

both

rising

enjby

majority and could be de¬

a

feated

at

any

■

f;

in

•

a

Business

country

still

the

a

the

across

facing

problems
of

Canada—balance

orientation of trade

of

awareness

new

basic

three

payments,

re¬

policies and cost

determination

a

find

to

Unfortunately, the

.

rtT-vlnr

y

solu-

cannot be said of all our*

same

whom still seem convinced
that the panacea of all our ills lies in bigger govern¬
ment expenditures and enlarged welfare plans, whether
or not we can afford them. Taxation,
already stifling
leaders,

of

many

incentive, continues its relentless increase.

recession in the United States economy,
moderately better year in 1963. Exports

a

look for

a

1961
;

and

dends. In

a

and

the

and

devalued, dollar,, it

is

production

Hon. Robert Winters

dustry

1962

was

in

tons

mine

closures

reached

peak

paid to shareholders

as

divi¬

about 8,400 tons of U:!Oh
although there were

1961,
in

the

year.

The

Canadian

as
no

in¬

production in 1959, with 15,500
with United States production now

running at over 17,000 tons

approached half

have highlighted the thorny problems

facing the United Kingdom in its bid for entry into the
Common Market. Even if the negotiations are successful,
far as our trade pattern is concerned will not
noticeable in 1963.
Unemployment remains at a high level—in excess of
5% of the labor force—and will become increasingly
difficult to reduce as the number of employable persons
results

as

become

with the post-war baby crop maturity. Enlight¬
dictates that these children attain a

grows
ened

t

self-interest

higher degree of practical

education yet this in itself

problems of cost only government can assist in

poses

meeting.
a

of

year.

trend and with

returning degree of confidence this may become one
the

strongest

support

areas

in

the economy

in the

expenditures are likely to show
only a modest increase as there is still much unused
capacity in most industries. Such increased capital ex¬
penditures as there may be will probably occur in the
field of government or in the area of increasing plant
efficiency.
/'A'A A .,y;
Referring specifically to the savings and mortgage
business, there is likely to be greater competition for
year

ahead.

Capital

..

a

a

Consumer income continues its upward

uranium mining segment of the industry,

fdr

deficit here

The past months

per¬

well in 1962, with

9,700

some

tries.

Despite

economy

record amount

the

increase

billion dollars for
permanent
solution to our balance of payments' problem rests with
an improved trade relationship between our two coun¬
the

foreign

on

remains.

tons, which compares

secondary

all

leaders

show

the first nine months of 1962. Obviously any

Despite current oversupply of almost all raw mate¬

further

■

time. What does this

portend for 1963?

those in the United States.

expect
this

a

further improvement in our balance of
imbalance in trade account is of course
with the United States. Based on preliminary figures

measures

imports

payments

difficulties, the

against

developments

with

trade. Our great

exchange

the

service

for

trend

growing one, and I

•

is

completion,

decided

expansion

-

conditions

these

to

provide

of

production
at all time highs. However, it is still not performing
well enough to use existing industrial capacity at opti¬
mum levels hor to provide adequate employment to the
existing labor force. Indeed, as the labor force is grow¬
ing at a faster rate than that of industrial production
and industry's capacity to absorb it, a relatively high
unemployment level is likely to continue to be a major
problem for the immediate future. As before, business
on

or

development

owner on

is

remarkable

little

tactics

by # rials, the Canadian mining industry enjoyed a good year
in 1962, with production several percent higher than in

owners

center,

the

original

our company.

would

then

There

a

built, whether they

are

shopping

and

type of service; it is
we

acquired from

TAW., structures

drop

Barring

conditions in Canada continue to be heavily dependent

of the

partnership of Taylor Woodrow and The Standard

Life

un- -

Federal Government which doe$. not

we

both GNP and industrial

Taylor Woodrow Group, should be tremendous. Through
this

the

of

formed reasonably

hospitals throughout Canada.
In 1963, the

by

the voting

on

cover

these

increasing demand for more schools and

an

1956. An

stable political situation was a back-

inconclusive.

opposition parties.

indebtedness

r

government's avowed intention of curtailing major

Product

again

rising

not

amenities

larger

a

will exercise needed restraint on imports and

to

anticipate that there would be less govern¬

should be

source

had( a Federal election, the

lying problem of increasing exports

construction projects this year, in view of .the

penditures

for¬

a

administered,

now

was

National

than for any year since

tioris.

Limited

taken, has been financed, the under¬

against land

purpose for apartments, but in my view they serve
entirely different function from that required for

family living,'

is

were

there
Gross

should

While

usually found in apartment dwellings. Naturally there
is

in

hoped,

result

I feel that ideal living conditions for Cana¬

families

country

essentially

view, apartment building is being overdone in

many areas.

hand,

increase

minority

the

expected to continue and to grow, but

many

other

also

during 1962, weathered

we

for Canada. Also

the Canadian dollar,

government whose survival depends

view, be difficult to satisfy because of the

my,

which

of

rather, precariously,

unsatisfied de¬

an

mand for well-located, low cost, good

Also,

one

saw

control. With this awareness there is

WINTERS

have not yet eliminated the

we

trouble.

results

V1

notable trend to¬

a

achieved,

the

of

however, mainly to higher land costs rather

this demand is

Canadian economy,

cog¬

higher priced homes in most metropolitan areas:

than to better houses. There

in

of paradox. We

year

manage¬

eign exchange crisis and although an improvement has
been

always
'

field of housing, there

This is due,

dian

Taylor

1

the

thinks

a

an extent that forced devaluation arid brought
appeal for international monetary assistance. On the

an

,

beyond.

The
Frank

growth based upon economic con¬

potential

who

was

political

enthusiasm,

and

'

His influence and decisions

Canada

strength

to

operator

and

i

weaken to

marketed by the

president, The Rio Tinto Mining Company of

energetic group

strength

from

ever

"systems farming" and the efficient

Canada

in

it

tractor

a

in

ROBERT

slow and steady progress.

of

one

including

product and farm technology present a healthy chal¬
lenge to the entire farm equipment industry in 1963

too

be

The past year was a momentous

Competitive strength is being

the largest

'

London, Ontario, Canada

Thornbrough

on

proper

perhaps,

not,

A. A.

For Massey-Ferguson, the Canadian
promising. The company's sales of all

ment of his total resources.

be

product, I feel that. the company's
position should be good in 1963.
We

and

land ' and

manager

,

The Canada Trust Company

^

of

terms

somewhat less than it was, but with
the

output

of

significance,

profit-minded

in

was

past. The demand for new

year

v<:

s.

:

The Huron & Erie Mortgage Corporation

a

assessing trends, is the
continuing emergence of the farmer-businessman, in
Canada as in the United States: a highly professional,
special

reactors

power

A. TAYLOR

J.

company.

asso¬

be

cannot

in

of new major machines,

,

nuclear

President arid General Manager,

ex¬

in Canada last year totaled $63 million, an
high, and if present trends continue, 1963 sales

year

of

opportunities derived from this major

of energy, i

source

con¬

to

programs,

inJthe> 100 h p. range,

companies and partly-owned

the

the

this

which comprises a number of whollycompanies In- the construction, building arid allied

subsidiaries, I feel that the outlook
for

in 1963.

year

they

increased with the introduction to the Canadian market

group,

industries,
ciated

expect

can

our

If

could exceed this mark.

Companies that operate efficiently with aggressive sales

rate

favorable

reason

greater

production tools.

v;,:: FRANK .TAYLOR

In

new

management

construction

and profit

ness

mechanization

pro¬
more

favorable position to take advantage of expanding busi¬

parts of western

every

probably not

1962,

Moisture

time.

present

to

wheat,

of

particularly

are

should have fallen

peak of over

a

the annual

15,000 tons and is likely to continue at this much

growing

the

in

grains and livestock.

1967

anticipated by then, and it is apparent now that those
producers with large, long-term reserves will be in a

than

sales

1959, by

However, by the early 1970's, expanded uranium pro¬
duction is likely to be called for to meet the rapidly

anticipated,

achieved

level

U;,08 in

reduced level for several years.

pect that farmers will push forward

in 1963.

approach

is

higher

increased

the

than

for

year

output of uranium reached

duction rate

Canadian

to

at

the most

be

to

billion

tinue, there is

oil refinery,

a new

expected

it

1963,

slightly

Canada

fruit

paper

progressing on

which

plant,

in

be

conditions

boxes, brew¬
grains and yeast, stone products, seaweed products,

ers

of

a satisfactory
firm

a

fairly clear picture to be drawn of the

a

40,000 tons of

year.

position

feed

tangible industrial deyelbpment included,the

addition of facilities for the manufacture of frozen

present

due

bringing industry leaders together for their
mutual benefit will begin to show results in 1963.
program of

In 1962,

establishing

cash

farmers

cooperation of all concerned, will accelerate

economic

the

for

The

voluntary economic, planning has been adopted, which*

contributed to

1962

industry,

base

concept of

new

a

free world

As

Board which will be set up in 1963.

enables

;

.

Continued

on

page

46

I s

46

The Commercial and Financial Chronicle

(502)

Continued from page

exerted

At the

marked increase in competition

institutions

cial

37

40

to

cents

costs,

of substantial

year

gains.

tobacco products

2%

or

brought the
$830 million,

with

to over

•

7 well into
"

revenue;.

The

to

7 decisions

of federal taxation
77§!i77 7- 7 7:■■ 77^777777v'" 7

fried

■

high level by favorable

nomic conditions and by
distribution

several

of

brands. It is most

coming

the

in

degree

the

to

The

and

than

2

last

the

ten

Canadian manufacturers'

the

years,

volume increases and technological improvements
not enabled the members of the

cient economies to

labor

.the

New

tibe

never

of

Frontiersmen

citing the first

of Adam Smith's notable gen¬

eral

principles

tax

of

any

good

system, namely that "the

subjects of

state ought

every

to contribute towards the sup¬

of

port

nearly

the

as

possible, in

tion to their

ties.".

government,

No

of

Our

as

propor¬

course,

portance.

is

applied

with

due

with

regard

and

economy

whole existence,

have

our

for that mat¬

immensely

grown

complex

more

is

maxims which Smith

first

other

to

"

within

the

setbacks
F. W.

gov¬

others

many

well

as

have

since

de¬

we

published). There

can

be

laid

The anticipated

will have

great bearing on Cana¬

a

of

some

these

neglected
principles, and doubtless will
find

it

advisable

again

and

again in the future to do

fort to do all that is
to

phrases

now

make

income tax system as un¬

all

No

this

court.

to

is,

are

we

It is

anything but that

now,

first.. Here it is in the words

not

of

if and when current revisions

tax

master

himself:

"The

which each individual

is

continue to do
while to

dent

as

now

does

suggest that it will be

are

a

good

come.

so

completed. Protectionists

funds
them

tax

Canadians, there lies ahead* a prosperous

2 which

ought to be

cer¬

used

to

little

The

other

person..

tion
.

.

certainty of what each in¬

dividual

ought to

taxation,

a

pay

matter of




so

quirements of the tax collec¬
we

to have

are

ing

of

say

who

that they cared

wrote

the

tariff

exists in the

come

taxation.

this,

case

of in¬

on

Actual

levies

these

overhaul¬

our

tax

our

l&t

system
be

not

over¬

'

Patterson V.-P.
Of M. A. Sehapiro
M. A. Sehapiro &
•1

the

subjecting

things

looked.

Chase

York

by

There

is

It

of

constantly
is

the

Company

Manhattan

Inc.,

Plaza,

New

City, underwriters, brokers

dealers in. bank stocks,1 have

and

these

over¬

of

as

so

con¬

both to take out and

keep out of the pockets of the
people
over

into-

the

as

little

as

public

state.

A

brings
treasury of

take

out

the
a

great

number

of

officers,

Department.

lent to the expense at

with

would be willing

obliging

a

Fenner
Smith ;

v,;;'••••V

include

he

in

tax

reports is

a

the system

numbering taxpayers and

ment

ing
he

part

sums.

This, of

course,

of the produce

one
man

777:'Y\

aware

1955
with

until
M. A.

Inc.

Co.,

' '77 -y' vf../-

.

<

'•/>■ 77

•7Vk.-r7*

-V:'

Walston Adds to Staff
(Special to The Financial Chronicle)

OMAHA,
Vaughan

a

large
is but

example. Every business¬
is well

since

associated

re¬

costing

pockets

Department
became

Sehapiro &

of

by number of the recip¬

ient will cost and is

where

years

Manager of the Bank and

Insurance Division in their Trad¬

case

point. It is evident beyond

question that

was

&

Incor¬

porated for 15

James C. Patterson

long list

interest and dividends in their
income

been

Merrill

Lynch, Pierce,

legislation which is

of small taxpayers to

Patter¬

had

son

which

redeem himself from it."

aimed at

Trading

Mr.

:

it is certainly equiva¬

pense,

of the cost

N

is

e

b.

now

—•

Street.
Dean

•

7'..

'

He

was

Witter

&

J.

with

1801 Farnam

formerly

with

Company.
/'

v

.»

.

Thomas

affiliated

Walston & Co., Inc.,

•*.

..

■;

• 7;':

Now Semmes & Co..
DECATUR, Ala.—The firm

name

of

Com¬

A.

pany,

B.

G.

T.

Love

Investment

Masonic Building, has been

changed

the

in

not, strictly s p e akin g, ex¬

require taxpayers'

whose salaries may eat up

Vice-

as

President

the

tax

may

the

firm

oppres¬

or

levying of it

has

joined4

quiring payers of interest and
possible dividends to
report such pay¬

and above what it

the

Patterson

may expose
unnecessary

sion; and though vexation is

Recent

fourth

"Every tax ought to
trived

much

to

trouble, vexation and

Principle

another

is

gatherers, it

every man

classic maxims about taxation

that, and the other
in
great level of income may in actual greater

is,

keeping and reporting: ac¬
which, but for the re¬

tor., would be unnecessary, If

so.

„

and to
every

new year.'

counts

enable

might

may either
large number of business
keep out of the enterprises
very
substantial
tain, and not arbitrary. The
pockets of the people a great sums of money. Thus the re¬
so
time of payment, the manner schedules
long as they
deal more than it
were
of payment, the
brings into quirement that taxpayers re¬
permitted to draft the
quantity to
administrative
be paid,
provisions. the public treasury, in the port interest and dividend re¬
ought all to be clear
four
and plain to the
following ways. First, ceipts is taking out of other
contributor, Something of the same situa¬

bound to pay

of

it;

pay,

easily to do

more

them

to

Another

of the Presi¬

presented

for

so

Adam Smith's list. Here it is:

Simplification?

and the program

the

of

income tax system, but it people to frequent visits and V'&fo- '777?announced
that James C.
to be reduced to a the odious examination of the

is humanly pos¬ which

as

the second in Smith's list, and
is no less important that the

;

confidence in Canada's progress

ought

looked.

developments

quite pertinent is

rectified

lurking in the minds of the pessimists. For those who firmly- believe in the capabilities

'

all but unavoidable in Fourthly,

sure,

any

taken

are

of

Much

possible

sible.

current

lack of

no

rulings of the Treasury may inay thus diminish, or per¬
not stand up when and if the
haps destroy* some of the

keep the requirements of

our

The particular maxim
which

and

1963 except that

meaning of phrases. Even the obliges the people to

its

is

equivocal

so.

corrected

in
'

partially at7 least,

will be

future.

near

There is

reforms in the United

reforms should be met,

political status

uneasy

in the

matter of paramount im¬

a

tax

no

regularly, overlooked, forgot¬ difficult, but the fact that it is
ten or ignored. We have had difficult also suggests the im¬
occasion time and again to portance of making every ef¬
cite

and adjustments. A majority Government is
required to implement necessary legislation as condi¬
tions arise and it is hoped that the present unstable and

Young

governmental policies will

question of that fact, and minimum—and
usually is not.
equally clear that the In
any event, enough has been
down through the years. application of this most essen¬
said to render it quite clear
What is unfortunate is the tial principle to current taxa¬
that uncertainty still sur¬
fact that these other maxims tion, particularly income tax¬
rounds even the proposals, of
are
so
often, not to say so ation, is more than ordinarily the Administration and will

as

present buoyance of the Canadian economy should
appreciably in 1963, The momentum will

1

and Adam ,Smith's, words7were

reason

The

not diminish

solve.

Such

dians.

take

to

employment.
:

will require

and

known

States during 1963

page

manufacturing in¬

our

fidence which presently exists Will persist despite minor

exception" to clared ourselves free and in¬
this general rule so
long as it dependent (the date at which

likely

capital goods rather than to subsidizing im-

our

'

respective abilir ter,

one,

sion of

ports. It is in the enlargement of

7 slow down from the tempo shown in the latter part of

have

from

a

"

mean this or that of the tax,■, and whose -perdepending upon what income; quisites may impose another
must be included andmwhat
; taxH upon .the peoimportance that a very con¬ deductions
\ are granted ahd ^le^Secqndlyiih may, obstruct'
siderable degree of inequality,
what exemption^ !&re allowed. theindustry^ ubf 7 the* people,
it appears, I believe, from ex¬
When the law concerning and discourage them from apperience of all nations, is not
any of these things is changed, plying to certain branches of
near so
great an evil as any there
nearly always, if not al¬ business which might give
very small degree of uncer¬
ways,
arise differences of maintenance and employment
tainty."
opinion about the precise to great multitudes. While' it
Continued

on

pace., ?uch investments are essential to the.future
growth of Canada but must be directed to the expaii-

practice

As We Sec It
now

enlarge our present capacities will depend large-

7 1962 but the movement will still be forward. The con*

assist Canadian industry is

higher leaf, other material,

overcome

:'

;

The

of

phases

and

stimulus with which

The

advertising costs. The industry takes great

and

develop

commerce.

ernment to

industry to realize suffi¬

to

products.

our

'

problems,

all

on

leadership

strong

selling price of cigarettes has risen but once and then by
less than % of a cent per package. However, sales

stronger endeavor

a

Canada's

upon

dustries that the ever-increasihg labour pool will find

important,

industry

themselves

gain slightly.

and

effects

re-

markets

closer tariff alliance with

a

export markets for

enlarge

secure

problems have already made

These

Edward C. Wood

dire

and
mean

to

slower

will find Canada

year
,

effect

Canadian

pipe tobacco volume is expected to

In

many

reaching

3%. Cigar and

or

,

States

Britain

Commonwealth

foreign investment capital, has again resumed but
;

the solution to which can have long-

industry volume, will not likely gain
more

coming

United

her

1

was

complacent way-of-life that

a

drastic

This could

Great

of

for

'

halt

facing

cigarettes, which account for 85% of
by

/■ v-

truly good for

was

inability

have

we can

being recklessly pursued.

same

year,

>

trials

to

unlikely that these

exist

will

conditions

The period of

Canadian industry and forced a

new

'

:

.

nego-

ly upon the financial status of our country. The mid*1962 actions by our government proved their wise judgment in averting a most chaotic situation. The flow of

half-

strengthened

emerged

tribulations

and

eco¬

major

and

"

7'

austerity; decisions,
has been truly

pre¬

.U•.....

economy.

fundamental strength of Canadian industry is
still the availability of capital. The resources by which

7

evidenced in
at the close of 1962, should continue
was

economy

and undaunted.

the national

and

of' governmentalno-decisions,

and

>

Canadian

cigarette market was carried

its

concessions

the

our

by Great Britain to enter the European Common
The

could

/

-

declining flow

a

major problem, still undecided, is the

quested

>

'

possibility of

Canada could well result and could

Market.
■

capital

1963^$7,:

After' a-year

7%

are

future

\ tiations

his

cover

.

strength and confidence which

Canada's economy

of

Product. Federal excise taxes at $420
million

to

7777.7 President, Canada Foils, Ltd.

The

National

Canadian Gross

of

retail value

tobacco,

pipe

and

.

Another

FRANK W. YOUNG

777':

sales'."up5%;over 1961, together, with good' increases in
cigars

for

provide

*'

;

cents

Thursday, January 31, 1963

.

serious blow to

a

economy.

had its second

Cigarettes,

9V2

but

and

expenditures.

C. WOOD

1962, the Canadian tobacco industry

consecutive

receives

dividends,

pay

President, Imperial Tobacco Company of Canada, Ltd.
In

package of 20 cigarettes in Canada,

per

manufacturer

the

narrowing in profit margins is likely to result.
EDWARD

cipitate

generally realized that, of the retail price of

It is not

Canadian finan¬

among

.

Canada otherwise the

of capital into

-

price record can be maintained.

a

savings of the public. Further

the

for

time there is

same

it is most unlikely that this

corporate tax concessions,

downward pressure may be

some

interest rates.

on

in

pride in its price record but, without sufficient excise or

45

mortgage loans and

.

to

Semmes

Semmes

the firm.

is

a

&

Co.,

Inc.

principal

of
7

Volume

197

Number 6234

.

The Commercial and Financial Chronicle

.

.

Science Stock Investing

Nippon Electric Shares Offered

-:;J§

Requires Sound: Evaluation

•

Continued from page 5

touched market among television

Although Texas Instruments
been

traditionally

electronic

semiconductor

or

broadcasters and associated agencies,! rFor nearly four years the
sales of Ampex s .tape recorder to

an

as

con-

this huge hungry market created
ever-increasing and apparently
insatiable demand for increased

basic orientation has beeh

cern, its

towards
that

known

had

the

physics of metals

viewed

in

this

so

light the-ac-

production.-''rThisvi^ark^t •

§ quisition * of Metals and Cbntrols'.

ap->

experience in" metal Clad-> pxbached saturation at a tjme;^hejl
din^and nuclear materials canbe: reorders a of. comparable quality

with its

seen".

Instt;hin^nts,^ :basi(i\ busi-%^ competitors^ ^TOe-: sUdd[ep_. sharp,
the other hand, expan- shrinking of .sales
caught both
into nuclear technoiogy rep- ^an^Semenb ahdittyestork'tptatlyr

Texail ^
ness.
-

sipn

On

rqsented

ia

substantial. change in : ;v?PrePar®<**

.

the type of market in which "the

The

;

First

Boston

Corporation

and

The

Daiwa

must alsp be concompahy had; been theretofore, cerned with those companies in
engaged as were the more mun- technical fields which da not at-

Securities

positary

Shares

dane

Limited

(representing 10,000,000 shares

activities

■

of

rection of the

parent

and
The di-

research

by this

overall business standpoint.

an

Texas

Instruments'

ductor operation

sharp

substantial

the

that

develop

can

a

company's

could

be

not

companies

under

the

other hand, if the

many

On the

company

mentioned
must:

of

source^
tific

profits

that

which

achieve

quality

the

to

of

make

earnings

such

The reader

assigned

the company's stock.

fields

the

^

which

Over-Capitalized
In

.assigning

R/D

Expenses

ties

Boston

(right),

Co., Ltd.

Corporation,

Chisato

and

President, The

Daiwa

Nippon Electric, which

Securi¬

incor¬

was

porated in 1899, is the largest Japanese
facturer
of

one

telecommunication

of

,

the

electronic

manu¬

and

equipment

leading producers in

field

the

equipment.

scientific

of

The

question

of

"

•

been

inevitably:

various answer's

ciated

ro¬

through
lead

dependiftg

\

;
I

upon

the lead time sought, the type

' /

:

■,

Of

'

'

-

already

In set-' investment, etc. There are, howting price/earnings ratios of 20 to ever, a number of fields in which
40 pr -50 on, projnising* scientific
significant technological changes

.'s;

c.

,

1

•> r

<

opened
fields

asso¬

of

•.

''. -

it

s

'

*

up

such

as

frozen

^

remains

a

technical

indus¬

particular
are

was

in

of establishing its
technically-oriented research

department
it

tion, it
such

appears

circuits

the

the

will

of

then
of

evaluation

in

be found

in

to

organizations

which

embrace

ad¬

both

knowledge. The invest¬
must

in¬

and

understand

technology involved lest there

exist

a

tion

likely that

technical

evaluator

ment

the

applica¬

compete •

is

answer

use

how

requirements

vestment

that, integrated

commercial

now

excessive,

meet

The
the

Whereas

afford

would

for

cost

by competent

requirements

zation, but would be prohibitive

foods,

set

at the sound ' investment
the strides being this area?

circuits.

inconsistent

generally

interest

felt

once

is

standards

the institution finds the budgetary

un¬

vantage of substantial miniaturi¬

in¬

new

$100,000

institutional management. If then

a

Semiconductors

semiconductor

melting of metals, etc.

vacuum

of

with

own

circuitry
•

in

invest

which

the

made in the development of pro¬
duction techniques for integrated

techniques have

vacuum

dustrial

statement of the company,

power

and

particularly

nature

present time

High Vacuum

,r

j

High

of

To

can

indus¬

and

to

department should

a

be anticipated.

com¬

control

accurate

development

state

.

increased

to

$50,000

of

for such

year

abated.

well-engi¬

trial tool.

affords

course

remote

microwave,

devices

solid

irradiation.. is still
facilities which

scientific

important

and

and

continued

me¬

knowledge and application of this

endeavor

countermeasures,

for

sources

placed at the disposal

of ' scientists

are

budget

as

the

elusive ^ out
have

in

The

impetus

ex¬

tremely expensive undertaking. A

ac¬

result of the military program.

sensitive

They have found

utilization

of food

mance

tremendous

a

ments in technical fields—an

have

problems have brought about the tries without
proper investigation
development "of highly complex and evaluation is a
procedure

best

scientific tools of theo¬

as

devices

munications

are

tallurgical; examination.

f,

ratio it is bbyiously necessary ■ to
examine carefully the financial

a

Accelerators

trea-tment^and

particular

offer
of

quired

next

neered mega volt accelerators must

might ask what

today

Microwave Devices

Radar and

promise for profitable investment.

price/earnings

a

the

of

First

Fukuda

Microwave

substantial application in medical

Opportunity

with

commensurate

are

price/earnings ratio

The

increas¬

the

over

retical physicists.

Fields Promising Profitable
,

the

known

situationToday particularly among
e .the
component: companies*n?the miliscien-' tary equipment field.
.
•

i n

e x a m

companies

sure

As

become

must

Radiation

previously, the investor

carefully

De¬

Company,

(center),. Senior Manag¬

Radiation accelerators

product obsolescence and -narrow^ profit margins. / We

man-

unable to cope.

was

ing Director of Nippon Electric Company, Lim¬

ited; Andrew N* Overby: (left), Vice-President,

a

stock, par value 50 Japanese

common

ingly important
several decades.

per-

•

agement

which

com-

quent problems with which-

Electric

in its earliest stages and

field is

um-

naits itself to continue without
achieving technical knowledge, it
panies have undertaken haphaz- ■ ultimately wilhbecome dependent
ard programs which produced agupqn price cutting to maintain
pot pourri ; of diverse • unrelated sales and may eventually find itoperations bringing about subse- self fighting a losing battle of
above,

Nippon

to computer language. This entire

research and tech-

a

brella of these profits.

growth rate

maintained.

cited

of

Yuzaburo Makino

are

fn contrast to the sound acqui-

sitions

of

managers

yen per share) at $16.75 per American Deposi"tary Share.'Signing the underwriting agreement,

one

pany's former sharp

joint

are

avail-

were

such

capability

nical

com-

markets

Oftentime

able.

semicon-

brought about

realization

Ltd.

activities of others and have duplicated those products for which

Re-

examination by investors did not
take place until price pressures
on

fields

semiconductor
manufacture
there are many companies \vhich
have simply followed the research

ac-

quisition although sound from

such

In

efforts.

own

Co.,

offering publicly, 400,000 American

group

as

company was

substantially altered

advance by, their

tempt to

Metals,

Controls'other divisions.

Investors

>

furnished

between the informa¬

gap

scientist

by

and

engineer and investment interpret

eco¬

tation.
There are organizations
The: national aerospace effort
companies*, the assumption is gen- -are occurring which warrant exnomically with established solid
.which span these two diverse
v. a s 11 yo. increased state systems.
erally made that the company ? is> aminatiori' by an investor seeking necessitates
s
fields v of .knowledge., ; My-; own.
The list' one could add' is an
financing - a substantial : research > profits through the growth that knowledge of low-pressure phe¬
apd development effort - which - occurs with technological change; nomena and the functioning of extensive one/Significant devel¬ company, Technological Investors
Management Corporation, focuses
metals, under vacuum. Such proc¬
would
otherwise
show
as : in-:
opments are taking place in mag¬
Among these may be cited the
its
attention
specifically on this
esses as
electron beam melting,
cteased profit,. The practice has-following areas:
netics^ in direct: current -power
Other
organizations
dry freezing of foods and phar¬ sources, automatic data - proces- problem.
grown in recent years, however,
>
,
for companies to capitalize their
maceuticals, epitaxial ? deposition sing, cryogenics, porous metals, such as Stanford Research Insti¬
Computers
*
•
tute,
Arthur D. Little & Co.,
in: the manufacture of semi-con¬ infrared
research so that the figures for
and many other areas
The
tremendous capability of
ductors all require high vacuum just to mention a few associated Greenebaum Associates and Arm¬
profit as publicly released, may
computers
' in p achieving
vast
our
Research
Institute
provide
techniques. with the electronic field alone.
often not substantiate this as*

-

,

-

r

v

•

t

.

■

sumption..
care

In

storage
and
complex
Methodical
calculations are,
of

memory

these

cases,

examination

u

is

more.

needed

and

a

ultimately

r

,

.One

for

a

tions

be

must

jecting

a

company

that

•-

growth

about

of

breaks

when

have

-

in

this

into

a

diminished,

as

years

limited

may

only

productive
a

i

rate
not

nation. in
decline

in

the

modest

be

only is

a

called

there

a

growth
sales

for,

but

an

that

digital computers offer

as

promise

and

oppor-

the

of

current

the

graphic
'

major

computer

pretation

that

An

in

to

limitations

information

is r becoming: of

military

use.

An

cent

of

kinds

well

as

as

example is

achieved

hold

quired

opened

up

overnight

a




vast

un-

lit¬

This

problem

demands

rapid recognition and translation

mains

in

ad¬

great potential, much re¬

to

be

technical

accomplished from

standpoint

based
to

applications.

and

effort will

open

up

In

*

tention must

be

given to all

as¬

its

management,

its

marketing

capability,

its

financial

position

well

its

technical

strength

as

sound

serious

a

investor

security evaluation is

problem

may

with

re¬

In

balanced

any

oriented

portfolio

must

included.

be

who

is

such

holdings

The

accustomed

to

investor

Investmen

examining

LONG

ISLAND'

ratios, management his¬

financial

tory

Form A.

appreciation-

or

Albert

P.

other

and

standard

invest¬

finds, however, that

different

measures

re¬

Galdi

CITY,
is

N.

Y.—

conducting

a

securities business from offices at
29-07

Broadway

name

the

under

firm

of A. P. G. Investments.

quiring advanced technical knowl¬

^publicity

commercial

services.

pects of a company's activities—

—if

gard to investment in these fields.

edge

are

tion

of

an

to

broadly

which

of

face

entirely

Cells

similar

such approach, however, at¬

to be achieved.
institutional

The

Although, theoretically, it appears

nology.

perfecting

is

he

any

an

complex¬

Technical Knowledge Needed

he

tic applications of computer tech-

in

recorder

translation

of the more drama-

much

of

dous

achievement

if

in

somewhat

as

realization.

vance

the

video-tape

picture

This is another area which has

;

requires

the many

to, be avoided.

ment criteria

Fuel

erature,

tbe

changing

techniques.

example of this type of situation

one

this

avoid participation in obsoles¬

is to be found in Ampex's tremen-

automatic

lasers,

need for
field to be

the

developments

of

increasing ' im-

portance in. industrial
in

all

of

the

in

as

Inter-

usage.

translation

and-

field

this

arsenide

again

investor
to

in

way

developments such

gallium

industrial

J Pattern Recognition Systems

one

under

is

each

of

ities involved if major pitfalls are

ef¬

research

Tremendous

recent

but

or

demonstrate

computer information has become

a

actual

occur.

fort
and

Analog

The "read-in" and "read-out" of

such

sharp termi-

may

;

or

sales

so

>

re¬

profit potential of
military applica¬

The

strated.

alert

company's

steady

functions.

literature

vestor

awareness

tions of lasers is yet to be demon¬

on

be expected

tunity for the investor,

market

Once

can

ap¬

saturated, however,

more

may

by

capability.

market is

much

afford

well

significant

the.

virgin field of

and

additional

to

by

which has

area

scientific

and

commercial•

to expand as application is made

the?, condi-

company

loom large

processes

cial

cently.

inventory maintenance,

as

the horizon

major research effort

a

f

keeping, and control of in-

dustrial

pro-

plication which for two, three
four

matters

record

v,

curve

brought

have

Occasionally,-a
force

cautious

steep sales growth

Further utilization in such

iarge<

call

a

an

opportunities to the in¬

new

ons

t
accounting, . scheduling and
received much attention in finanscientific computation are already

gprice/earnings ratio is+called,for
inasmuch ,as such Capitalized expenses. represent
on future profits.

is in

Laser

substantially^ reduced

Each of these technologies beck¬

Lasers

wei][ known. Applications

course

a

a

very

be

re¬

commercial

is

to

demahded in the evalua¬
scientific
pursue

investment

conventional
he

is faced

investments.
as

program

security

with

S. Zucker Opens

If

conscientious
as

in

investment,

the necessity

of

N.

BROOKLYN,
Zucker is

Y.

engaging in

business from

offices

—

a

Samuel

securities

at*713

Ver¬

research department

mont Street under the firm name

capable of knowing diverse tech¬

of Samuel Zucker Co. Mr. Zucker

nologies

was

organizing

trends

a

and
and

following
corporate

industry
develop¬

formerly

Co. and I. H.

with

Ezra

Kureen

Wright Co., Inc.
■i

48

The Commercial and Financial Chronicle

(504)

.

.

.

Thursday, January 31, 1963

* INDICATES ADDITIONS

Now

Securities

in

Registration

construction, exploration and general corporate ex¬
Office — 80 Richmond St., W., Toronto. Under¬
writer—E. A. Manning, Ltd., Toronto.

loans

Registration statements filed with

—

the SEC since the last issue of the "Chron¬
icle"

carried

now

are

American

nated

tion." Dates shown in

the

company's

flect the
are

Registra¬

parenthesis alongside
and in the index,

name,

re¬

Also

ceeds—For

expectations of the underwriter but

not, in general, firm offering dates.
shown under
are

the

effective

week

this

were

;

'offered

March

;

ness

Abbot Realty

Fund, Inc.
29, 1962 filed 380,000 class A common. Price—$10.
Business—Real estate ownership and management. Pro¬ j
ceeds—For debt repayment and general corporate pur-;
poses.
Office—292 Madison Ave., N.: Y. Underwriters—;
Morris Cohon & Co. and Street & Co., Inc., N. Y. Offer¬
ing—Indefinite.
,

trial machinery and processes.
Proceeds — For general
corporate purposes. Office—3601 v Merrick Rd., Seaford,
N. Y. Underwriter—S. Schramm & Co., Inc., N. Y.

shares. Price—$25 per unit. Busi¬
Transportation, distribution arid sale of natural
Proceeds
For construction, debt repayment and
common

purposes.

Automatic

Office—546

S. 24th Avenue,
& Co., Chicago and

amendment /(max. $6). Business—Company
Operates, owns, services and leases coin-operated auto¬
matic vending machines.
Proceeds-^-For debt repay-;
ment, inventories, equipment and. working capital. Of¬
fice—217 N. Willow Ave., Tampa. Underwriter—A. C.
Allyn & Co., Chicago.
Price—By

American Mortgage Insurance Co.

Jan.

10, 1963 filed 31,070 common to be offered for
subscription by stockholders on the basis of one share
for each five shares held.

>

Price—$18. Business—A mort¬
insurance company. Proceeds — For investments.

gage

Office—300 S. Salisbury St., Raleigh, N. C. Underwriter
Price—$1.
—None.
'
processing
service. Proceeds—For expansion, equipment and work¬
American Pacific Fund, Inc.
ing capital. Office — 37 Brighton Ave., Boston. Under¬ I July 9,1962 filed 94,500 common. Price—Net asset value.
writer—Walker, Wachtel & Co., Inc., Boston. Offering
Business—An open-end management company special¬
—Indefinite.
izing in life, health, casualty and accident insurance.
Proceeds—For investment.

Aerosystems Technology Corp.
Price—$3. Business
—Company has been engaged in experimentation on
aerodynamic concepts and holds ten U. S. Patents relat¬
ing to advanced vertical lift vehicles and systems for
achieving controlled vertical flight. Proceeds—For addi¬

Honolulu.

Aug. 29, 1962 filed 165,000 common.

-

Aug. 22, 1962 filed 100,000 shares of beneficial interest.
Price—$10. Business—Company plans to qualify as a

Alaska

Power

investment.

* :

,

&

Telephone Co.
Dec. 26, 1962 filed $600,000 of 6% debentures due
1978,
240,000 common, and 180,000 10-year warrants to pur¬
chase a like number of common
shares, to be offered in
600 units, each consisting of one $1,000
debenture, 400
common, and 300 warrants. Price—$1,000 per unit. Busi¬
ness—A public utility supplying
electricity and telephone

>

service, loan repayment, and working capital. Office—
Ave., Skagway, Alaska. Underwriter — Jay W.
Co., New York. Offering — Expected in
March or April.

Fifth

Kaufmann &

due

1977.

Price-—At par.

subsidiaries conduct

emphasis
in
of

on

land

subord.

conv.

deben¬

*

Business—Company and

one

the basis of

date for both

$13. Business

•

NEW

:

1942

-

J^nc,
'

<
.

-

-

Broadway, New York 6, N. Y.

Dlgby 4-2370

.

TWX: 212-571-0320

•

Direct Wires

to

Proceeds—To

ley

WOODCOCK, MOYER, FRICKE & FRENCH, INC., Philadelphia

,

(2/20)

•

bonds
outstanding 5%% first
1989. Address — Ninth and
Ark. Underwriters—(Com¬
Halsey, Stuart & Co. Inc.;
& Co., Inc.-Dean Witter &

-

which

100,000

Price—By amendment

ing,

marketing

and

(max.

servicing

$10).
of

Business—-Originat¬
mortgages and

first

vertical tray lift systems, floor and over¬

Caldwell

Publishing Corp.

(2/5)

-

.

13, 1962 filed 100,000 common. Price—$3.50. Busi¬
ness—Company plans to publish classics. Proceeds—For
general corporate purposes. Office—339 W. 51st St., N. Y.
Underwriter—S. B. Cantor Co., N. Y.
June

refund

are to be offered by company and 35,205 by stockholders.

conveyers,

head tow systems, etc. Proceeds—For working capital.
Office — Kirk Blvd., Greenville, S. C. Underwriter—
None.
■./;
"J:":v^^■ vvi:-i

of first mortgage

Associated Mortgage Co., Inc.
21,_ 1962. filed 135,205- common.- of

Securities, Inc*, New

22, 1962 filed 1,015,564 capital shares to be offered
subscription by stockholders on the basis of four new
on Feb.
14, 1962. Price—25
cents. Business—Manufacture and sale of overhead trol¬

•
Cambridge Fund of California, Inc. :
Sept. 28, 1961 filed 280,000 comriion. Price—By amend¬
ment. Business—General real estate. Proceeds—Debi re-

oayment and working capital

Office—324 E. Bixb"

Long Beach, Calif. Underwriter—To be named. Note—•
This registration was withdrawn, y

Ashland Oil & Refining Co.

Dec.

; R. J. HENDERSONS CO., INC., Los Angeles




1993.

Pacific St., Brooklyn,

shares for each share held

1900 W. Slauson Ave., Los Angeles.

1963 filed $15,000,000

2401

for

•

Jan.

-

Members of New York Security Dealers Association ;
39

—

—

Broadwell

—

Cable Carriers, Inc.

Manufacture, purchase and sale of ice
dairy products. Proceeds—For debt re¬

(2/20)
23, 1963 filed $25,000,000 sinking fund debentures
due 1988; $35,000,000 convertible subordinated deben¬
tures due 1993; and 260,000 common. Price—By amend¬
ment. (max. $30 for the common).* Business — A re¬
finer, transporter' and marketer of petroleum products.
Proceeds-^For proposed acquisition of United Carbon
Co. Address-—1409 Winchester
Ave., Ashland, Ky; Uny;
derwriter—Eastman Dillon, Union Securities & Co., and
E. F. Hutton & Co.,
Inc., New York, and A. G. Becker
& Co., Inc, Chicago.

SOLD
QUOTED
Banks, Brokers, Institutions

ESTABLISHED

—

Office.

June

Record

mortgage bonds due Dec. 1,
Louisiana Sts., Little Rock,
petitive). Probable bidders:
White, Weld & Co.; Blyth
Co. (jointly); Lehman Brothers-Stone & Webster Secu¬
rities Corp. (jointly); Merrill Lynch, Pierce, Fenner &
Smith Inc.; Eastman Dillon, Union Securities & Co.Equitable Securities Corp. (jointly). Bids — Feb. 20
(11:30 a.m.) at 2 Broadway (28th floor), New York.

specializing in

£$. SI JE1CIEIj K
;

10 held.

offerings is Nov. 21 and the rights expira¬

and other

10,

due

•

:a

share for each

Arkansas Power & Light Co.

Jan.

7>c

|: over-the-counter securities

-

new

capital.

Y. Underwriter

York. Offering—Indefinite.

Underwriter—N one.

m

BOUGHT

one

payment. Office

^ADINC

for

working
; N.

tion date Feb. 15. Price—For preferred $52; for common
cream

all

vinyl packages. Proceeds—For debt repayment; sale pro¬
motion;
equipment; research and development, and

Arden Farms Co.

on

Products, Inc.

13, 1962 ("Reg. A") 90,000 common. Price—$1.50.
Business—Design. and manufacture of flexible re-usable

May 23, 1962 filed 49,993 shares of $3 cumulative pre¬
ferred stock and 205,105 common shares being offered
for subscription by stockholders of the respective classes

.

■

C-Thru

,

Amerel Mining Co. Ltd.
July 31, 1961 filed 400,000 common shares. Price—500.
Business—The company is engaged in exploration, de¬
velopment and mining. Proceeds—For diamond drilling,

Black Hills PowerLight

Dec.

reduction of bank loans,
working capital. Office—349 Lincoln St., Hingham,
Mass. Underwriter—None.

>

....

Co. (2/14-18)
filed 22,516 common to be offered for sub¬
scription by stockholders on the basis of one new share
for each 19 held. Price—By amendment (max. $44.40).
Proceeds—For construction, and loan repayment. Office
—621 Sixth St., Rapid City, South Dakota. Underwriter
—Eastman Dillon, Union Securities & Co., New York.
•

Jan. 17, 1963,

and

Fla., Md., N. Y., and Ky. Proceeds—For repayment
debt. Office—230 Park
Ave., N. Y. Underwriters—

Big Top Stores, Inc;
1962 filed 86,000 common. Price—$3.50. Business—:Operastion of five retail toy stationery rind variety
stores; and the servicing of franchised dealers. Proceeds
—For expansion, additional inventory, and working cap¬
ital. Office—832 Scarsdale Ave., S'carsdale, N. Y. Under¬
writer—P. J: Gruber & Co., Inc., N. Y. Offering—Ex*
pected in April.

per

components. " Proceeds—For

general real estate business with
development and home construction
a

To be named.

.

.

Properties, Inc.

due Feb. 1,

A. T, & T.,
parent, for construction: and other corporate purposes.
Office
1835 Arch St., Philadelphia. Underwriters—
(Competitive). Probable bidders: First Boston Corp.;
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; White,
Weld> & Co,-Eastman Dillon, Union Securities & Coy
(jointly). Bids — Feb. 5, 1963 (11 a.m. EST) in Room
2315, 195 Broadway, New York.

Nov. 26,

Antenna Systems, Inc.
Sept. 28, 1962 filed 35,000 common. Price—By amend¬
ment (max. $30).
Business—Design, manufacture and
installation of large microwave antennas "and antenna

,

All-State

'

$1,000 debenture and 100 shares.
Price—
unit. Business—Manufacture of amplifiers and
accessory equipment for musical instruments.
Proceeds
—For inventory, equipment, debt repayment and new
products. Office—1570 W. Blancke, Linden, N. J. Un¬
derwriter—John R. Boland & Co., Inc., New York. Of¬
fering—Indefinite.

of

tures

of

$1,020

Telephone Co. of Pennsylvania (2/5)

—

■

Ampeg Co., Inc.
Oct. 29, 1962 ("Reg. A") $294,000 7% conv. subord. debentures due 1972 and 29,400 common to be offered in
units

service to 4 Alaskan communities. Proceeds—Expansion

April 24, 1962 filed $5,000,000 of

Bell

Jan. 15, 1963 filed $50,000,000 of debentures
2003. Proceeds — To repay advances from

American Plan Corp.
March 30, 1962 filed $3,100,000 convertible debentures
due 1982, and 155,000 common (of which 120,000 will be
sold by company and 35,000 by a stockholder). The se¬
curities will be offered in units of one $20 debenture
and one share. Price-^By,
amendpieri^ ^astnessr^^gduction and servicing of
physical damage insurance on
automobiles, trucks and mobile homes. Proceeds—To; fi¬
nance the purchase of American
Fidelity Fire Insurance
Co. Address—American Plan Bldg., Westbury, L. I., New
York/ Underwriter ,-r- Bear, Stearns & Co., New York.
Note—Tjhis registrhtion was withdrawn, ^
;
r „*

Aiken Savings Trust

Address—Florence, S. C. Underwriter—None.

Ave., N. Y. Underwriter—Hornblower &
Offering—Indefinite. '

Kalakaua Ave.,
Pacific Management

•

equipment, research and development, plant fa¬

Office—521 Fifth
Weeks, N. Y,

building and other corporate purposes.

Office—1523

Underwriter—American

Properties, Inc.

June 29, 1962 filed 400,000- class A common. Price—By
amendment (max. $12). Business—Real estate invest¬
ment.
Proceeds—For debt repayment, acquisition of a

Corp. (same address).

cilities and other corporate purposes. Office—Route 15,
Sparta, N. J. Underwriter—Chase Securities Corp.,N. Y.

Proceeds—For

Basic

,

•

real estate investment trust.

Inc.

Merchandising,

May 24, 1962 filed 225,000 common, of which 125,000 are
to be offered by company and 100,000 by stockholders.

Walston & Co., New York. Offering—Imminent.

Accounting Corp. of America
Dec. 5,
1962 ("Reg. A") 300,000 common.
Business—Operation of an electronic data

Offering—Indefinite.

Price—$4. Business

manufacture and installation of electrical,
pneumatic, hydraulic and mechanical systems, controls
and devices to control and automatically operate indus¬
—Design,

26,

corporate

Inc.

Dec. 28, 1961 filed 50,000 common.

,

'

Omaha. Underwriters—A. C. Allyn

June

and work¬

St.

Ave.,

Jenks

.

Automatic Controls,

—

gas.
other

Office—668

capital.

time in February,

1962 filed $2,300,000 of 6V2% sinking fund
debentures
(par $20) due Jan. 15, 1978 and 230,000
common
(par $1) to be offered in units of one deben¬

pub¬

Proceeds—For equipment, inventories

Paul, Minn,
Underwriter—To be named. Offering—Expected some¬

N. Y. Offering—
.

American Gas Co.

ture and two

tional

fiers.

ing

and other cor¬
Oceanside, L. I.

caption "Effective

licly.

•

repayment, equipment

purposes. Office—Lawson Blvd.,
N. Y. Underwriter—S. D. Fuller & Co.,

repayment, and

May 28, iy62 ("Reg. A") 200,000 common. Price—$1.50.
Business—Manufacture and sale of Misti-Cone humidi-

Indefinite.

those issues which became
and

debt

real estate. Proceeds—-For loan

Atmosphere Control, Inc.

and

porate
v

•

Registrations"

debentures

90,000 common, to be offered
in units consisting of one $100 debenture and 10 shares.
Price—$100 per unit. Business—Manufacture of standard
and special industrial aircraft and missile fasteners. Pro¬

•

of this section "Securities Now in

Bolt & Screw Mfg. Corp.
15, 1961 filed $900,000 of 6% convertible subordi-

Dec.

separately at the end

on

ISSUE

PREVIOUS
REVISED

working capital. Office—1120 Connecticut Ave., N. W.,
Washington, D. C. Underwriter—Shields & Co., Inc.,
New York. Offering—Indefinite.

penses.

NOTE

SINCE
ITEMS

•

Enc. (2/25-28)
Price—$o. Business
—Company was formed to own and operate a country
club and golf course, swimming pool and cabana club,
near
Cape Canaveral,, Fla., and - develop < real estate,
erect homes; apartment- houses; motels, etc.
Proceeds-*For debt repayment and-expansion. Office—309 Ainsley;
R'ds
Mif**^!.' F1? ^Underwriter—Willis E. Burnside. &
Canaveral

•.vJLay

i

-

Hills

Enterprises,

1U, lybz filed 100,000 common.

Co., Inc., New York.

.

Castle

Hospitality Services, Inc#
Dec. 14, 1962 filed $500,000 of 8%- debentures due 1969.
Price—At par
($1,000).
Business—Company plans to
offer- management and consultant services to-motels and
furnish them with equipriient. Proceeds—For, general:

corporate purposes. Office—1068 S. Ocean Blvd., Pompano Beach, Fla.
Underwriter—None.
-

Volume

197

Number

6234

.

The Commercial and Financial Chronicle

.

.

(505)>-!49

ceeds—For

Office—129 S. State

March 20,

Bronx,

Securities

—

New York. Offering—Indefinite.

Cedar Lake Public Service Corp.

1962 filed 9,964 common. Price—$100. Business
Company plans to qualify as a public utility and
furnish water
and
sewage
disposal services in and
around Cedar Lake, Ind. Proceeds — To construct a

disposal system* Address — R.R. N. 3, Box 28,
Cedar Lake, Ind. Underwriter—None.

sewage

•

Gold

Star

Center

Mines,

Inc.

April 10, 1962 ("Reg. A") 2,000,000 common. Price—15c.
Business—For exploration, development and production
of mineral deposits.
Proceeds — For mining expenses.
Address—Box

469, Wallace, Idaho. Underwriters—Penand Standard Securities. Inc., Spokane,

Co.

&

naluna

Wash. Offering—Expected sometime

in March.

Central Mutual Fund, Inc.
Aug. 20, 1962 filed 100,000 capital shares. Price—Net
asset value
(max. $14) plus a 2% sales commission.
Business—A mutual fund specializing in life insurance
stocks.
Proceeds—For investment. Office—110 North

East

Agency,

Jacksonville, 111. Underwriter—CN
Inc., same address; Offering—Indefinite.
St.,

Electronics

Chemair

Corp.

Price—$12 per unit. Business—Production and
of chemicals designed to control odors, bacterial

common.

growth

pollutants;

air

and

of

sale

and

and development, produc¬
electronic vaporizing unit for dis¬

an

pensing such chemicals. Proceeds—For debt repayment,
equipment, sales promotion and working capital. Office
—221 N. La Salle St., Chicago. Underwriter—Price In¬
vesting Co., New York.
Chemical

Coating Corp.

June 29, 1962 filed 70,000 common. Price—$5. Business

•—Company plans to operate a painting contracting bushness and manufacture paints. Proceeds—For general cor¬
porate purposes. Office—Santurce, P. R. Underwriter—
Arnold Malkan Investment Growth of Puerto Rico, Inc.,

Santurce, P. R.
Chestnut Hill

Industries, Inc.

Nov.

29, 1961 filed 300,000 class A common, of which
225.000 are to be offered by the company and 75,000 by
stockholders. Price—$5. Business—Design
and manu¬
facture of women's, misses' and junior sportswear, co¬
ordinates, and dresses. Proceeds—For debt repayment,
equipment and working capital. Office—2025 McKinley
St., Hollywood, Fla. Underwriter — Clayton Securities

Corp., Boston, Mass. Offering—Indefinite.
Child

May

Guidance

23,

Toys, Inc.

1962

filed 100,000 common, of which 70,000
are to be offered by company and 30,000 by stockholders.
Price—By amendment (max. $12.50); Business—Design,
manufacture and sale of plastic educational toys. Pro¬

if NEW ISSUE CALENDAR |
February 1
Lunar

—

Colorado Imperial Milling Co^
v
w
Sept. 20, 1962 filed 200,000 common. Price—$1. Busi¬
ness—General mining.
Proceeds—For exploration arid
operating expenses. Office—Creede, Colo. Underwriter

change

for acceptable securities on the basis of one
share for each $10 market value of
securities). Business
«—A new mutual fund. Proceeds—For investment. Office
—211

S. Broad St., Philadelphia. Underwriter—Gerstley, Sunstein & Co., Philadelphia.

Contact Lens

Nov. 26, 1962 ("Reg. A") 46,000 common to be offered
for subscription by stockholders on the basis of one share
for each 3.36 common shares held. Price—At-the-market.

Business—Sale of

health, accident, life and hospital in¬

Proceeds—For

surance.

working capital. Office-—3570
Lindell Blvd., St. Louis. Underwriter—Edward D. Jones
& Co., St. Louis. Offering—Indefinite.

Indefinite.
Continental Device Corp.
Decr*26, 1962 filed 275,000 common. Price—By amend¬
ment (max. $6). Business—Company is engaged in re¬
search, development and manufacture of certain types

•

Computer Control Co., Inc. (2/11-15)
24, 1962 filed 165,000 common, of which 100,000
will be sold for the company and 65,000 for stockholders.
Price—By amendment (max. $10). Business—Design and
manufacture of digital equipment. Proceeds—For debt
repayment. Office—983 Concord St., Framingham, Mass.
Underwriter—Kidder, Peabody & Co., New York.

of

semiconductor products,

and specialized test equip¬
repayment, equipment* and
Office—12515 Chadron Ave.,
Hawthorne, Calif. Underwriter—Carl M. Loeb, Rhoades
& Co., Inc. New York.
Offering—Expected in February
or March.
ment.

other

•

Conso

Products, Inc.
Sept. 27, 1962 filed 125,000 common. Price—By amend¬
ment (max. $10). Business—Manufacture of home fur¬
nishing trimmings and accessories. Proceeds—For ma¬
chinery arid working capital. Office—27 W. 23d St., N. Y.
Underwriter—H. Hentz & Co., N. Y. Offering—March.
Consolidated Leasing Corp. of America
April 27, 1962 filed $1,000,000 of 6 Vz % subord. deben¬
tures due 1977 (with warrants), and 99,000 common.
Price—For debentures, at par; for stock, by amendment
(max. $9). Business—Renting of cars, trucks and equip¬
ment. Proceeds—For debt repayment,
an
acquisition

ah^lotK^ft^ft)oi'^f^: purposes, Office

— 1012 Baltimore
Ave., Kansas City, Mo. Underwriter—Blair & Co., N. Y.
/Oiffering^-Jndefinite.V.r'5;44' ;" ' ' ' ■ '
P

Consolidated Vending Corp.

working capital. Office—315 W. 47th St., N. Y. Under¬
writer—Van Alstyne, Noel & Co., N. Y. Note—This firm
was known
formerly as the Cosnat Record Distributing

Corp. Offering—Indefinitely postponed.
Cotter & Co.

Nov. 21, 1962 filed $3,000,000 of 6% subordinated
notes,
series I. Price—At
par. Business—A cooperative whole¬
saler of hardware and related items.
Proceeds—For

working capital. Office—2740 N. Clybourn Ave., Chicago.
Underwriter—None.
Creative Ventures Corp.

May 28, 1962 filed 150,000 common and warrants to pur¬
chase 30,000 additional shares, to be offered in units of
one share and one warrant.
Price—$2.25 per unit. Busi¬
ness—A corporate guidance and
interim financing con¬
cern. Company
may also act as a broker-dealer and un¬

Securities

&

Proceeds—For investment. Office—733

New York..

.

Continued

March 5
by

22,516

Co.)

Dillon,

Eastman
shares

&

Stephen,

$718,750

Inc.)

Laboratories, Inc
J.

(A.

Davis

..Common

CO.)

(Bids

<

Certificates

(National Mortgage Agency,.Inc.)

.

National Mortgage

$8,000,000

(White, Weld & Co. and Cyrus J. Lawrence & Sons)
256,000 shares

Common

Corp., Inc.-.—

(National Mortgage Agency, Inc.)

$345,000

Morgan

&

...Class A

11

$900,000

(Bids
■

...Common
$265,000

■■

March 11

(Monday)

February 18

Atlantic Coast Line RR

February 4
Florida

(Bids

(Monday)

Bancgrowth,

Hi t Dempsey-Tegeler

Inc..—.
&

.Common

Inc.) 250,000 shares
.Common

Co.,

Great Eastern Insurance Co.

12

.Equip. Trust Ctfs.
12

Equip. Trust Ctfs.

-

R. S. Dickson & Co., Inc.
Kistler & Co.) 156,414 shares

Texas Power &

(Emanuel, Deetjen & Co. and Zuckerman Smith & Co.)

(Bids

.

11

a.rn.

EST)

..Bonds
^

$9,375,000

(Tuesday)
(Bids 11

$10,000,000

EST)

a.m.

$5,250,000

..

Oklahoma Gas & Electric Co

Bonds

Light Co

(Bids 11:30

March 12

Powell,

and

•.

Central Illinois Light Co..

.......Common

Inc

(Lehman Brothers;

EST)

noon

-

(Monday)

$3,600,000

EST)

noon

Drexel Enterprises,

$15,000,000

(Thursday)

,

(Mid-Town Securities Corp.)

.Bonds

EST)

a.m.

Great Northern Ry
,

Olympia Record Industries, Inc

$40,000,000

(Wednesday)

March 7

Co.)

received)

Atlantic City Electric Co..

February 15 (Thursday)
(Peter

Telephone Co,..—Debentures
be

to

(Bids

Natural Gas & Oil Producing Co

a.m.

...Bonds

EST) $15,000,000

$1,908,000

Greatamerica Corp.

Common

(Goldman, Sachs & Co., and Lehman Brothers)

2,500,000 shares

Pacific Southwest Airlines.
(E.

Pioneer

&

..Common

Inc.)

Co.,

293,000 shares

Telephone Co

Witter

(Dean

Hutton

P.

&

Co.

and

Common

M.

H.

Bishop & Co.)

Roddy Recreation Products Inc..—.—.—
(Dempsey-Tegler

February 5

&

Co.,

■

Inc.)

Units

EST)

a.m.

B.

Cantor

Common

Laclede Gas Co.
(Lehman

Debentures

a.m.

$10,000,000

EST)

...Preferred

-

Brothers; Merrill Lynch, Pierce, Penner &
and Reinholdt & Gardner) 200.000 shares

Public

Service

Dillon,

Co..——-

Bonds

(Monday)
Hogle

&

Co.)

$2,061,938

Cap. Shs.
-

Computer Control Co., Inc....
:

Emtec

(Kidder, Peabody & Co.)

'

&

Co.,

A.

165,000

Inc.)

shares

v:

27

;. .Debentures
E.

P.

Hutton

April 2

Co.,

&

(Eastman
Inc.;

Dillon,
and

A.

400,000

(A.

Gilhart

Co.,

—.Common

Inc.)

Inc.)

du

Pont & Co.)

February 26
(Bids

(Bids

May

.......Class A

150,000 shares

-

^

Common
$300,000

#

to

be

received)

$5,000,000

14

(Tuesday)
(Bids to be received)

$6,360,000

v.Bonds

Virginia Electric & Power Co

...Equip, Trust Ctfs.
EST)

Preferred

Alabama Power Co

$131,250

November

7

$30,000,000

(Thursday)

'

Bonds

Georgia Power Co

and :

$9,000,000

Mountain, Inc

noon

.Bonds

Co.—

(Bids to be received) $13,000,000

$500,000

(Tuesday)
12

February

27

(Wednesday)

Brooklyn Union Gas Co
(Bids to be received)

Co.)

(Thursday)
Power

Common
&

&

*

shares

America

D.

Common

(Offering to stockholders underwritten by Dean Witter
$3,000,000

Alabama

Co.,

Seaboard Air Line RR.

Dean Witter & Co.;

(Don D. Anderson & Co., Inc.)

&

Debens.

Co

$50,000,000

(Wednesday)

May 1

(Monday)
Burnside

(Francis I.

Debentures
Corp.)

E.

$4,020,000

(Tuesday)

May 9

(Willis

EST)

Western Light & Telephone Co., Inc.

i......__-Class A

Brothers)

(Lehman

Equip. Trust Ctfs.

noon

(Bids to be received)

Common

—

12

Pacific Northwest Bell Telephone

$35,000,000

Union Securities & Co.; E. P. Hutton & Co.,
G. Becker & Co., Inc.) 260,000 shares
;

Buckingham Corp.

$5,475,000

(Wednesday)

(Bids

v

80,000 shares

Webster Securities




Co.;

Pak-Well Paper Industries, Inc

$300,000

Co

(Paine, Webber, Jackson & Curtis;
&

&

Becker & Co., Inc.)

G.

Ashland Oil & Refining Co

Data Corp. of

,

Common

(Schweickart & Co.)

Western Power & Gas
Stone

-

Debentures
Reid

R. E. D. M. Corp

Zero

.

..Common

Inc.
(Pulton,

Bonds

Canaveral Hills Enterprises, Inc.-

American Savings & Loan Association
A.

Securities

Union

and

February 25

(J.

March

Equip. Trust Ctfs.

to be received)

Southern Railway Co.

$15,000,000

11:30 a.m. EST)

(Monday)

(Bids

EST)' $50,000,000

Bonds

$30,000,000

Norfolk & Western Ry.

Bonds

(Wednesday)

(Dillon, Read & Co., Inc.) $14,000,000

February 11

a. m.

March 25

shares

.

-

Smith Inc.;

Southwestern

100,000

be received)

(Bids to

(Eastman Dillon, Union Securities &; Co.; E. P. Hutton & Co.;,
Inc.; and A. G. Becker & Co., Inc.) $25,000,000

Laclede Gas Co.—
10:30

Inc.)

Co.,

Ashland Oil & Refining Co.'. J.—
(Eastman

$350,000

(Wednesday)

(Bids

10

(Bids

$50,000,000

Co.)

&

Arkansas Power & Light Co.:

Inc.;

February 6

Becker

(Bids

Debentures

Caldwell Publishing Corp
(S.

G.

February 20

Bell Telephone Co. of Pennsylvania
11

(A.

Potomac Electric Power Co.—

(Tuesday)

Michigan Consolidated Gas Co.—

Emerson Electric Manufacturing Co.
Common
(Blyth & Co., Inc.) 162,045 shares
Packard Instrument Co., Inc..—Common'

$1,300,000

(Tuesday)

(Bids

March 19

February 19 (Tuesday)

75,000 shares

.

.

$12,000,000

.

50

page

i

March 6

$291,000

National Mortgage Corp., Inc

on

(Tuesday)

Northwestern Bell

Common

Wallace & Tiernan Inc.—

Third

Ave., N. Y. Underwriter—Hampstead Investing; Corp.,

—Common

stockholders—underwritten

to

convertible sub¬
ordinated debentures due 1977. Price—At par. Business
—The
manufacture
and
distribution
of
phonograph
records. Proceeds — For the repayment of
debt, and

(Thursday)

Black Hills Power & Light Co

loan

purposes.

May 26, 1962 filed $1,250,000 of 6%

derwriter.

April 2,1962 filed 70,000 common. Price—$5.75. Business
—Operation of vending machines. Proceeds—For debt
repayment, working capital and other corporate purposes.

February 14

Proceeds—For

corporate

Cosnat Corp.

Jan.

Union

Common

(Ingram, .Lambert

Modern

Guild, Inc.

Sept. 19, 1962 ("Reg. A") 75,000 class "A" common.
Price—$4. Business—Manufacture and sale of a patented
contact
lens.
Proceeds—For
moving
expenses,
re¬
search, inventory, advertising and working capital.
Office—360 Main St. E., Rochester, N. Y. UnderwriterJohn J. DeGolger Co., Inc.,
Rochester, N. Y. Offering—

'

J

Investments, Inc.

Dec. 21, 1962 filed 500,000 common. Price—$10.
(For an
initial period the fund will also offer its shares in ex¬

'

:•

(Offering

(Friday)

Films, Inc

Mutual

.

offered ih units consisting of one $10 debenture and two

tion

«

Consultant's

March 28, 1962 filed 37,500 shares of $1.50 preferred ($25
par), 75,000 common and warrants to purchase: 37,500
common shares to be offered in units of one preferred,
two common and a warrant to purchase one common
share. Of the common, 26,000 shares will be sold for the
company and 49,000 for stockholders. Price—By amend¬
ment. Business
Manufacture of fiberboard, boxboard
and shoeboard. Proceeds—For equipment, plant improve¬
ment, loan repayment and working capital. Office—615
Parker St., Manchester, Conn. Underwriter—Putnam &
Co., Hartford. Offering—Expected in February.

—None.

St., Dover, Del. Underwriter—Dana
Co., Inc., N. Y. Note—This registration will

be withdrawn.

Colonial Board Co.

Commercial Life Insurance Co. of Missouri

Dec. 28, 1962 filed $150,000 of 6% subordinated income
debentures due 1973 and 30,000 common shares to be

sale

working capital. Office—1125 Close Ave.,
N. Y. Underwriter—J.* R. Williston & Beane,,

Bonds
:

,v

.

-

(Bids

to

be

received)

$30,000,000

,

,

ijvs"

(Bids

to

*

Preferred

Georgia Power Co

;

be received)

$7,000,000

.

:

;

50

Continued from

49

page

i;

,

7777

:

1962 iiiea $1,2U0,32U of 7% conv. subord.
bentures due 1974 and 54,560 common shares to
26,

jan.

Doman Helicopters, Inc.

77 >' V1

T

de¬

$1.25).

...

V

,

Thursday, January 31, 1963

Corp.

\

amendment (max. $15).
Business—Design and
manufacture of tools, dies, molds, beryllium castings and
the distribution of plastic, metal and glass products for

home use. Proceeds—For a recession offer to stockhold¬
of models, train service personnel, repay
ers and reduction of accounts
Address—Municipal Airport, Danbu^, Conn.
payable. Office—3600 W.
Underwriter—None. Note—The SEC has questioned the 3 Pratt Ave., Chicago. Underwriter-—None. ^r77'P''7
/
accuracy and adequacy of this statement. - ~,
Fidelity Mining Investments Ltd.
Nov. 30, 1961 filed 800,000 common. Price—By amendDonmoor-lsaacson, Inc. / / 3 * - • > *
T
¬

debt, etc.

—

.

.

certification

Proceedi
—For debt repayment.
Office—1775 Broadway, N. Y.
f^derwriter
Bernard M
Kahn &,Co.f Inc., N. Y.
Business—A consumer sales finance company.

y

.

—By

Business—Research, development and construc¬
tion of experimental helicopters.
Proceeds—To obtain

be

offeied in 2,728 units, each consisting of $440 of deben¬
tures and 20 common shares.
Price—$550 per unit

Offering—Sometime in March,

Fedco

.

Oct. 29, 1962 filed 20,000 common, of which 17,500 are to
be offered by company and 2,500 by a shareholder. Price

Apru 19, 1962 filed 418,680 common to be offered for
subscription by stockholders on the basis of two new
shares for each three held. Price—By amendment (max.

Inc.

Department,

Credit

•

The Commercial and Financial Chronicle

(506)

,

•

.

Systems, Inc.

C. Transit

D.

7': ,-t- 37',

■U
ment.t Business—Exploration and testing of mining prop¬
26, 1962 filed 150,000 common, of which 50,000 are
erties. Proceeds—For general corporate purposes. Office
to be offered by the company and 100,000' by stock¬
—62 Richmond St., Toronto. Underwriter—G. V. Kirby
holders. Price—By amendment' (max. $12). Business& Associates, Ltd., Toronto.
7/ : 7 ''3 37 7'7777 V/v^7'77
Design and manufacture of boys knit shirts, sweaters,
and pajamas. Proceeds—For working capital. Office—
/• First American Israel Mutual Fund 'v73%V:'.737/7/7'
1115 Broadway, N. 'Y. Underwriter—Goodbody & Co., /' AUg. 15, 1962 filed 2,750,000 shares of" beneficial in¬
New York. Offering—Expected in February,
33/777337''; terest. Price—By amendment (max. $10). Business—

Feb.

warrants to purchase

and five-year

1977

due

,/•-

6%% conv, subord. de¬

April 30, 1962 filed $6,250,000 of
bentures

7V;'7

•

.

aggregate of 187,500 class A shares, to be offered for
sub&cripuon by holders of class A and class B stock in
units consisting of $100 of debentures and three war¬
rants.
Price—$100 per unit. Business—Operation of a

an

public transit system in Washington, D. C.; a new sub¬
sidiary to construct housing projects in Washington,
Proceeds—For construction and general corporate

•

Underwriter—N one.
•

;

(2/18-22)

:

A mutual fund which plans to invest primarily in equity
type securities of Israeli companies. Proceeds-r-For in¬
vestment.

Office—141 Milk St., Boston. Underwriter—^
Paine, Webber, Jackson & Curtis, Boston. Offering—Ex¬
pected in late February.3: \ /33'/7
'37v3 -V77^/7/7 3/

holders. Address—Drexel,

N. C. Underwriters—Lehman
Brothers, New York, R. S. Dickson & Co., Inc., Char¬ 77 4 First New York Capital Fund, Inc.
: t
lotte, N. C, and Powell, Kistler & Co., Fayetteville, N. C. 7 Oct. 27, 1961 filed 2,770,000 capital shares. /Price—$1.
/ Business—A small business investment company. Pro¬
• Duro-Test
Corp. ■
v'ceeds—For
investment.
Office—1295 "Northern Blvd.,
Dec 6, 1962 filed 150,000 common. Price—By amendment
Manhasset, N. Y. Underwriter—None. .7
7
;
(max. $9). Business — Manufacture of various types of
Florida Bancgrowth, Inc. (2/4-8)
lights for industrial and commercial use. Proceeds—For
March 16, 1962 filed 250,000 common. Price—By amend¬
the selling stockholder. Office — 2321 Hudson Blvd.,
ment
(max. $15).
Business—An/ investment t compapy
North Bergen, N. J. Underwriter—Auchincloss, Parker
specializing in bank stocks. 7 Proceeds—For investment.
& Redpath, New York. Offering — Temporarily post¬

(2/25-28)

Corp. of America

Data

Inc.

Enterprises,

23, 1963 filed 156,414 common. Price—By amend¬
ment
(max. $25). Business—Manufacture of furniture
for homes and institutions. Proceds—For selling stock¬

Office—3600 M St., N. W., Washington, D. C.

purposes.

Drexel

Jan.

D. C.

.

29, 1962 filed 105,000 common. Price—$1.25. Busi¬
ness—Development of specialized data processing appli¬
Oct.

cations

furnishing of data processing services.
training of personnel, advertising and

the

and

Proceeds—For

,

promotion, and working capital.

sales

St., New York.

Office—44 Beaver
Underwriter—A. D. Gilhart & Co., Inc.,

New York.
•

Systems Devices of Boston, Inc../

Data

April 26, labZ med 2uu,ouu common.

Price—$5. Business

—Company plans to design, develop and produce elec¬
tronic and electro-mechanical devices, including printers

.'&V

Proceeds—For product devel¬

for electronic computers.

opment, new plant and equipment and working capital.
Office—342
Western
Ave.,
Boston.
UnderwriterV

■

•'

Schmidt, Sharp, McCabe & Co., Inc., Denver. Note—This
registration was withdrawn.
•

Delta

Bowling Corp.

Sept. 28,
shares

100,000

1962 filed

are

to

of which 50,000

offered

be

Price—$3.

stockholders.

common,

by company and 50,000 by
Business—Leasing and operat¬

ing of bowling centers. Proceeds—For expansion, equip¬
ment and working capital. Office—230 Park Ave.. N. Y.
Underwriter—Provost
Securities, Inc., N. Y.
Note—
This

registration

De

withdrawn.

was

;y;v

Troy Bergen, Inc.

Dec. 20, 1962 filed 140,000 common. Price—$4. Business
—Commercial printing. Proceeds—For debt repayment,
other

corporate purposes. Office — 750 Hyler St.,
Teterboro, N. J. Underwriter—Varu Alstyne Noel Corp.,
New York. Offering—Expected in late Feb. or March.
and

Deuterium

Corp.
Sept. 28, 1962 filed 120,000 common with attached war¬
rants to purchase an additional 120,000 shares to be ofered for subscription by holders of its stock and deben¬
tures in units (of one share and one warrant) on the
basis of 3 units for each 5% prior preferred share held,
2 units for each 5%
preferred A stock held and 40
units for each $1,200 face amount of non-interest bear¬
ing subordinated debentures held. At the same time, the
company will offer the securities to the public. Price—
To subscribers, $20; to public, $22.25. Business—Com¬
pany plans to erect a small size production and experi¬
mental plant for the limited manufacture of deuterium
and deuterium oxide, and to establish and equip a gen¬
eral research laboratory. Proceeds—For working capital,
construction, equipment and other corporate purposes.
Office—360 Lexington Ave., N. Y. Underwriter—None.
,

Diamond

Mills Corp.

Jan. 23, 1962 filed 200,000 common, of which 120,000 are
to be offered by the company and 80,000 by stockhold¬

Price—By

ers.

amendment.

Business—Manufacture of

women's nylon hosiery. Proceeds—For debt
and working capital. Office—417 Fifth Ave.,
derwriter—Dxexel

&

Co.,

Philadelphia.

repayment
N. Y. Un¬
Offering—In¬

definitely postponed.
Diversified

Collateral Corp.
13, 1962 filed 77,050 common. Price—By amend¬
(max. $11.75). Business—A real estate investment
company. Proceeds—For investment. Office—8397 N. E.

June

ment

Second

Ave., Miami, Fla. Underwriter—Karen Securities
Corp., N. Y. ; ■ 7
>>/
Diversified

Real

Estate Trust

March 8, 1962 filed 1,000,000 shares of beneficial inter¬
est.

Price—$10.

trust.
N.

Business—A

estate

real

investment

Proceeds—For investment.

Y.

Underwriter

—

Office—500 Fifth Ave.,
Consolidated Financial Program

(same address). Offering—Indefinite.
•

-

—$1

per

interest.

Business—A

trust.

Proceeds—For

South,

Salt

L.

New York.

estate

investment

Office—19

E.

First

; \

...

.

City. Underwriter—Realty Securities.
Inc., Salt Lake City. Note—This registration was with¬
drawn.

Diversified Resources, Inc.
Jan.

16, 1963 ("Reg. A")
Business—Manufacture of

67,000 common. Price — $3.
a lightweight structural board
and sheet insulating material (wallboard). Proceeds—
For equipment, leasing of working
space, advertising,
and working capital. Office—42
Broadway, N. Y. Under¬
writer—A. J. Gabriel
.c

•

Co., Inc., New York.

Dixie Lime & Stone Co.

Sept. 27, 1962 filed 100,000 common. Price—By amend¬
ment (max. $6.75).
Business—Mining and processing
of crushed granite,
lime.rock, and agricultural limestone.
Proceeds—For

loan

repayment, and working capital.
Office—11 N. Main St., Qcala, Fla. Underwriter—Courts
&

Co., Atlanta, Ga. Offering—Indefinite.




|7/7 Florida Jai Alai,
-

ness—Manufacture

of

electronic

for

devices

3

>

.♦

337533-i

—

7-/33:3353-;; 37/5S33V3;3-'

Floseal Corp.

-

73353.

May 10, 1962 filed 169,420 common to be offered for
7 subscription by stockholders./ Price—By amendment;
Price—$1. Busi¬
(max. $2). Business—Company owns and licenses carton
electro-mechanical vehicles and
7, pouring spout patents and die patents. Proceeds—For
medical

and

-

marine

purposes.

v

Forst

Eastern Camera & Photo Corp.
tures due 1972 and

:

be

to be withdrawn.

"7iv'<"'7:777 7

debt repayment and other corporate purposes. Office—
100 W. 10th St., Wilmington, Del. Underwriter—None.

(Alex)

& Sons, Inc.

March 23, 1962 filed 125,000. common. Price—By amend¬
ment (max. $15)*
Business—Wholesale distribution 'of

-

March 28 1962 filed

$500,000 of 6% conv. subord. deben¬
50,000 common shares (of which 25,sold by the company and 25,000 by stock- :
holders). The securities are to be offered in units of one
$100 debenture and 10 shares. Price—By amendment.
Business—Operation of retail camera stores and depart¬
ment store concessions.
Company also processes black
and white film and
repairs photographic equipment.
Proceeds—For debt repayment and working capital. Of-.
fice—68 W. Columbia St., Hempstead, N. Y. Underwrit¬
ers—Edwards & Hanley, Hempstead, L. I., and Street &
Co., Inc., New York. Note—This registration is expected

;

toys and games. Proceeds—For selling stockholders. Office—2885 Jerome Ave., Bronx, N. Y, Underwriter—Mc-

Donnell & Co., New York. Offering—Indefinite.

'

Freoplex, Inc.
Jan. 2, 1963 ("Reg. A") $200,000 of 7% convertible sub¬
ordinated debentures due March 1, 1975. Price—At par.
Business—Operation of retail meat supermarkets. Pro¬
ceeds—For debt repayment and working capital. Address
—Route 18, Tices Lane, East
Brunswick, N. J. Under¬
writer—Alessandrini & Co., Inc., N. Y.;
\/7-; J ■■■

,

Garden State Small Business Investment Co. "
Oct. 27, 1961 filed 330,000 common. Price—$3. Business
—A small business investment
company. Proceeds—For
-

7

Electro-Nucleonics, Inc.
Sept. 24, 1962 ("Reg. A") 29,525 common. Price—$5.
Business—Research and development toward improve¬
ment of gas centrifuge technology for separation of iso¬
tope and gaseous materials. Proceeds—For equipment,
expansion, research and working capital. Office—368
Passaic Ave., Caldwell, N. J. Underwriter—M. L. Lee &
Co., Inc., New York. Offering—Imminent. - ,7:

investment. Office—1180 Raymond Blvd., Newark, N. J.

•

:

Underwriter—Godfrey, Hamilton, Taylor & Co., N. Y.
Offering—Temporarily postponed, w
*
• Geigher
Pipe Supply Inc. ^
//•
Sept. 28, 1962 filed 60,000 class A common, of which 50,000 are to be offered by company and 10,000 by stock¬
holders.
Price—$9.50.
Business—Sale of steel pipes,

valves and fittings. Proceeds—For inventory.
Office—
4124 N. Broadway, St. Louis. Underwriter—Midland Se-

•

Electro-Temp Systems, Inc.
:
Oct. 18, 1962 ("Reg. A") 160,000 common. Price — $1.
Business—Sale of commercial and industrial refrigera¬
tion machinery and equipment. Proceeds—For debt re¬
payment, equipment, inventory and working capital. Of¬

curities

Co., Inc., Kansas City, Mo. Offering—March.

.77:

General

Design Corp. '\777^77//77:; :.7:/777/v"',77-7~77|
;
April 25, 1962 ("Reg. A") 65,000 common. Price—$3.
Business—Design and development of new products for <
fice—150-49 Hillside Ave., Jamaica, N. Y. Underwriter 7 various >* industries; ir Proceeds—Fo^ debt
repayment,
—S. C. Burns & Co., Inc., N. Y. Offering—Imminent.
equipment and working capital. Office—1252 W. Peachtree St., N. W., Atlanta, Ga. Underwriter — Robert M.
Harris & Co., Inc., Philadelphia. Note—The SEC has is¬

Emerson

Electric Manufacturing Co.
(2/19)
7
17, 1963 filed 162,045 common. Price—By amend¬
ment (max. $35). Business — Manufacture of electric
motors, automatic controls, electronic devices, and build¬
er products. Proceeds—For selling stockholders. Address
—8100 Florissant Ave., St. Louis. Underwriter—Blyth
& Co., Inc., New York. ' 1 '
/// ^//Y" 7;7:t/rJan.

•

Emtec

Inc.

(2/11-15):

'

'

*

4

.

sued

/

Business

—

Design and

mon-share.

plans

r

debt

repayment

:■

products for electronic, appliance
industries. Proceeds—For equipment,

and

&

Equity Funding Corp. of America

firms selling life insurance and mutual funds. Proceeds
new
sales offices, advances to subsidiaries and

—For

working capital. Office—5150 Wilshire Blvd., Los An¬
geles.
Underwriter—Wisconsin-Continental, Inc., Mil¬

.7.'

-,/7'v"' '"-.7

30, 1961 filed 125,000 common. Price—$5. Business
distribution of nuts, bolts and other fastening
devices manufactured by others.. Proceeds—For debt
repayment and general corporate purposes. Office—8
Benson Place, Freeport, N. Y. Underwriter — Arnold
Malkan & Co.,. Inc., N. Y. Note—This registration will
be withdrawn.
::v
7 ■
—The

..

.

flat

doors

and

glass

common
one

com¬

Business—Company
mirrors

related

and

products.

sliding

Proceeds

equipment, inventory and working capital. Office
N. First Street, San Jose, Calif. Underwriter—
Birr, Wilson & Co., Inc., San Francisco. Note—This reg.

'

Corp.

.

-7>7/r

7

7

March

23, 1962 filed 150,000 common, of which 60,000
be offered by the company and 90,000 by the
company's parent, Glen Modes, Inc. Price—By amend¬
ment (max. $7). Business—Design, production and sale
of women's fashion accessories, and sportswear. Proceeds
are

to

>—For

general

corporate purposes.

Office

—

417

Fifth

Ave., N. Y. Underwriter—Sprayregen, Haft & Co., N. Y.
Offering—Indefinitely postponed.
.

Global Construction Devices, Inc.
June 29, 1962 filed 100,000 common. Price—$10.

Busi¬

ness—Manufacture, sale and lease of steel supports and
beams

Fastpak, Inc.
Nov.

mirror

unit.

istration will be withdrawn.

-

March 29, 1962 filed 240,000 common. Price—By amend¬
ment (max. $6.50).
Business—A holding company for

.

manufacture

per

class A and

—For

7V.v Glensder
S.

,.

Price—$5.05

one

—1299

and

working capital. Office — 140
Olive St., Elyria, Ohio. Underwriter—Fulton, Reid
Co., Inc., Cleveland.

waukee.

to

wardrobe

manufacture of miniature

temporarily suspending this issue.

shares to be offered in units of

metal

automotive

order

an

Glasco

Pacific, Inc.
7
July 12, 1962 filed 250,000 class A and 250,000

Jan.

4, 1963 ("Reg. A") $300,000 of 6% convertible sub¬
ordinated debentures due 1968. Price—At par ($500).

vsj

'

working capital, equipment and debt re¬
payment. Office—2222 S. Centinela Ave., Los Angeles.
Underwriter—None.
/ ;7
3
Vojitniba-.'.-w -.

will

Un-

1962 filed 400,00Q* common,/ Price—-$5. ~ Busi¬
Operation of Jai Alai games and pari-mutuel
betting, Proceeds—For rent, purchase of leased quarters,
building improvements, working capitaL
Office—Fern
Park, Fla. Underwriter—To be named.,
ness

Proceeds—For

000

Inc.

June 28,

/"

k

•

Lake

.

Dynapower Systems Corp.
Sept. 28, 1962 filed 750,000 common.

and

real

investment.

P. Industries, Inc. *
June 21, 1962 filed 75,000 common. Price—$4. Business
—manufacturing, labeling and packaging of long playing
stereophonic and monaural phonograph records for label
record companies. Proceeds—For equipment and work¬
ing capital. Office — 900 Passaic Ave., East Newark,
N. J. Underwriter—Mortimer B. Burnside & Co., Inc.,
Dynamic

subminiature

Diversified Realty Investors

June 28, 1962 filed 1,900,000 certificates of interest. Price

Office—3356 Atlantic Blvd., Pompano Beach, Fla.
derwriter—Dempsey-Tegeler &" Co., Inc., St. Louis.

X ■'/• /7/:7 v:7;.7377777. ::77337'373/3 ':

poned.
f

!'1

used

in construction.

Proceeds—For debt repay¬

ment,

expansion, researcn, and inventory. Office—545
Lane, Teaneck, N. J.
Underwriters—Winslow,
Cohu & Stetson and Laird, Bissell & Meeds, N. Y.
Cedar

Gold Leaf Pharmacal Co., Inc.
March

13, 1962 filed

80,000

common.

Price—$4. Busi¬

ness—Manufacture, development and sale of pharmaceu¬
tical and veterinarian products. Proceeds—For advertis-

37

Volume

The Commercial and Financial Chronicle

6234

Number

197

(507)

ing,

Hollingsworth Solderless Terminal Co.

debt repayment and - working capital.
St., New Rochelle, N. Y. Underwriter \
& Co., N. Y.
1

research,

Feb.

Office—36 Lawton

—Droulia

Gotham Educational Equipment Co.

amendment

(max. $6). Business—Design, manufacture, and market-,
ing of items used in educational institutions such as
chalk

boards, exhibit cases, etc. Proceeds—For general

•

corporate purposes. Office —-91 Weyman Ave., New
Rochelle, N. Y. Underwriter—Federman, Stonehill & Co.,
New York. Offering—Expected in mid-March., .!
Great

'

Continental

Real

•

Jaap Penraat Associates, Inc.
30, 1962 filed 100,000 common. Price—$3. Business
designing, the design of teaching machines
and the production of
teaching programs. Proceeds—
For expansion, new facilities and
working capital. Office

("Reg.

A") 75,000 common. Price — $4.
Business—Manufacture, sale and development of solderless terminals and other wire
terminating products. Pro¬
ceeds—For debt repayment, equipment,
advertising and
working capital. Address—P. O. Box 430, Phoenixville,
Pa. Underwriter—Harrison & Co.,
Philadelphia. Offer¬
ing—Temporarily postponed.
■-): '''

Inc.

Dec. 4, 1962 filed 75,000 common. Price—By

27, 1962

Home

Entertainment

of America

Co.

Jan.

Industrial

—315

&

shares

and

one

Price

warrant.

Inc., New York.
.

v

—

'v:

,

,

Underwriter—R

Offering

-

F

Dowd

Indefinitely post-*
;
/ ,/
,

-

16, 1963 filed 230,000 common of Home Entertain¬
ment Co., Inc., Los Angeles, a subsidiary, and 23,000
stock purchase warrants in parent, to be offered in units
Estate Investment Trust <
10

Central Park W. N

Co.,

poned.

Jamoco Air Conditioning
Corp.
Feb. 28, 1962 ("Reg. A")

Jan.

of

5i

40,000

Price

common.

$3.

—

Business—Design, installation and maintenance of heat¬
ing, plumbing and air conditioning systems. Proceeds—
For inventory, equipment and other
corporate purposes.

;

$100 per unit.
Aug. 3, 1961 filed 300,000 shares of beneficial interest.1
Business—Company and subsidiary are engaged in the /
Price—$10^ Business—Real estate. Proceeds—For invest- /
Office
954 Jamaica
Ave., Brooklyn, N Y
Under¬
development and promotion of a pay television system
ment. Office—530 St. Paul Place, Baltimore. Underwriter
writer—Martin-Warren Co., Ltd., New York Offeringin Santa Monica, Calif. Proceeds^-For installation of
af-Z Indefinite.
—To be named. Note—This firm formerly was known as
;. /r
£;/J/'
z
•: /vr;v;« >
pay television system.- Address — 19th and Broadway,
/
Continental Heal Estate Investment Trust.
•
Santa Monica, Calif. Underwriter—Bernard M. Kahn &
Jayark Films Corp."
;
;/•;/ > /5- :
J Great Eastern Insurance Co. (2/4-8) S
Co., Inc., New York. Offering-r-Expected in February.
Aug; 24, 1961 filed 85,000 common. Price—By amend*
April 13, 1962 filed 381,600 common. Price—$5. Business
ment. (Approx. $5).
/ Hunsaker
(S. V.) & Sons
>
Business—Company is engaged in
—Company; plans to write certain types of - fire and
distribution of motion picture films for television. Pro¬
March 30, 1962 filed $1,300,000 of convertible subordi¬
casualty insurance.: Proceeds — For general corporate
For financing of production costs of
nated debentures due 1977 and 200,000 common shares.// ceeds
films, for
purposes. Office—116 John St.; New York. Underwriters
sales and promotion, debt
Price
By amendment (max. $6 per common share).
repayment, and general cor¬
—Emanuel, Deetjenv & Co., and Zuckerman Smith &
porate purposes. Office—733 Third Ave., New York. Un¬
Business—Construction of homes and apartments on land
Co., New YOrk. "
derwriter—Pacific Coast Securities Co., San Francisco.
which company has acquired in Southern Calif. Proceeds
Greatamerica Corp.
(2/4-8)
Offering—Imminent.
—For debt repayment and other corporate purposes.
—

—

.

v

>

—

—

Dec. 31, 1962 filed 2,500,000 common, of which 1,650,000
to be offered by the company and 850,000 by a
stockholder. Price—By amendment (max. $19). Business

Office—15855 Edna

are

—A

company

"

pp., and-Lehman Brothers, New York. : -S,
'• Greater

25, 1962 filed 1,130,000
f
subscription by stockholders
Price—$4.

;

McCoy's Markets, Inc.

Los Angeles

area.

common

ment

—

pedic /(works for children, and operates

—

;

St., Chicago. UnderwrHer?-.A,; Q.Allyn & Co., Chicago.

Notp:—Th|^, .registration^

withdrawn.

i%(: Infotronics Corp. •
Oct. 23, 1962 filed 100,000 common. Price—$5. Business
—Research, engineering, manufacturing and marketing
in the field of electronic information handling and auto¬
mation systems. Proceeds—For new products,
inven¬
tory, new plant and working capital. Office—1401 S. Post
Oak Rd,; Houston. Underwriter—None.
Instr-O-Matics, Inc.
Sept. 28, 1962 filed 32,000 class A common. Price—By
amendment (max. $10). Business — Company develops,
manufactures and sells electronic equipment for use in

encyclo¬

units

consisting

of

one

cum.

preferred

warrants

per

be

to

preferred' and

Price—By amendment (max. $101

one

unit).

Business—Real estate investment.
Proceeds—For debt
repayment and working capital. Office—30 E. 42nd St.,
N. Y. Underwriter—Hayden, Stone &
Co., N. Y. Note—
This registration will be withdrawn.

Products

Co.

March 30, 1962 filed 542,000 common,/of which 205,000
are to be offered by
company and 317,000 by stockhold¬
ers.
Price—By amendment (max. $24). Business—Manu¬

facture, design, and distribution of plastic toys. Proceeds
—For general corporate purposes. Office—912
Sycamore

184-10

common. Price—$15. Busi¬
ness—A small business investment
company. Proceeds—
For general corporate purposes. Office—208 S. La Salle

advertising

an

Office

purposes.

Industry Capital Corp,
26, * 1961 filed 500,000

Price—By

illustrated

corporate

*

y
common.

general

Dec.

at $1 per share to be offered in

Publishes

and

postponed,

processing and sale of rock and sand. Proceeds—For a
new plant;and other corporate purposes. Address—Hal¬
landale/Fla. Underwriter—To be named.
'

Business

;

in

Kenner

White, Weld & Co., Inc., N. Y. Offering— Indefinitely

units consisting of a $10 debenture, 8 common shares and
one warrant. Price—$18 per unit. Business—Extraction,

.amendment.

life, individual
disability

Jamaica Ave., Hollis, Long Island. N. Y. Underwriter—

':■*%

| • Harwyn Publishing Corp. V-'U
jJan. 29, .1962 filed 30.0,000. class A

ordinary

—By amendment (max. $20). Business—Manufacture of
toys and related products. Proceeds *— For debt repay¬

March 30, 1962 filed $250,000 of 8% subordinated deben¬
tures due 1977, 200,000 common and 6-year warrants to

purchase 25,000

of

group credit life and

be offered by company and 240,000 by stockholders. Price

working capital. Office—35 Engel St.,; Hicksville,/
N. Y; Underwriter—J. R. Williston & Beane, New. York.
Offering—Indefinite.
_•/
,
Co.

warrant.

.

and

Sand

on a

Ideal Toy Corp.

,

Rock &

offered

to be offered for
share-for-share basis.

May 1, 1962 filed 490,000 common, of which 250,000 will

Inc.
•'
<
April 25,. 1962 filed 150,000 common,, of which 50,000 are
to be offered by company and 100,000 by stockholders.
Price—By amendment (max. $7). Business—Wholesale
and retail distribution of toys, hobby lines and sporting
equipment. Proceeds—For debt repayment, inventory

Hallandale

common

Oregon Underwriters, Inc., Salem.

Proceeds—For

Greenman Bros.,

■

disability, and

Corp.

1962 filed 50,000 shares 6%
four-year common stock purchase

and

insurance. Proceeds—For expansion, and investment. Of¬
fice—250 Liberty St., S. E. Salem, Ore. Underwriter-

selling stockholders.
Office—17602
Bellflower ..Blvd.,
Bellflower, Calif
Underwriter—Morris Cohon-& Co.,
New -York. Offering—Indefinite.'
-1
,

Business—Sale

health and

28

supermarkets in the

Kavanau

March 29,

Co.'|||j/

Oct.

1962 filed 219,150 class A common. Price—By
amendment
(max. $14).
Business—Operation of
16
June

ICOA Life Insurance

>

for four life insurance companies
and a bank. Proceeds—For debt repayment.; Office—311
So. Akard: St., Dallas. Underwriters—^Goldman, Sachs &
holding

PI., Irwindale, Calif. Underwriter—

To be named. Offering—Indefinite.

St., Cincinnati. Ohio. Underwriter—Kuhn, Loeb & Co•

New York.

Offering—Indefinite.

•

Kingsberry Homes Corp.
April 9, 1962 filed 140,000 shares of capital stock of
which 100,000 will be offered by company and 40,000
by stockholders. Price—By amendment (max. $17.50).
Business—Manufacture of prefabricated homes. Proceeds
—For a new plant. Office—1725 S. Gault

Ave., Ft; Payne,
Humphrey Co., Inc.,
Atlanta, and J. C. Bradford & Co., Nashville. Note—This
Ala. Underwriters—The Robinson

registration

was

-

withdrawn.

King-Stevenson Gas & Oil Co.
Nov. 26, 1962 filed $1,526,200 of 6%% conv. subord. de¬
bentures, due 1977, to be offered by subscription by
common stockholders at the rate of
$100 of debentures
for each 30 shares held of record Nov. 15.

Price—At par.

Business—Company is engaged in operating gas and oil
properties, supervising drilling on its leases and man¬
aging exploration programs for investors. Proceeds—For
general corporate purposes.

Office—2200 First National

Bank Bldg, Denver, Colo. Underwriter—None.
Pro¬
Kraft (John) Sesame Corp.
ceeds—For
debt
<
* *• ^
'
repayment; > advertising, > inventories, ;
derwriters—Van Alstyne,^ Noel & Co:,; New York.' Note
May 24, 1962 filed $225,000 of 6% conv. subord. deben¬
new
products and working capital.
Office—3181-N.^
j-This registration will be • Withdrawn. ;
tures, due 1972, and 150,000 common- to be offered, in
Elston Ave., Chicago. Underwriter —* R. A. Holman &
Heartland Development Corp./;/
limits consisting of a $300 debenture and 200-shares.
Co., Inc., N.
March 28, 1962 lfiled> 23,300 shares of 5% convertible
Price—$900 per unit Business—Processing and distri-<
Intelectron Corp.
preference stock to be offered for subscription by stock¬
v"/;c
bution of sesame seed.
Proceeds—For accounts receive
holders on basis of one preferred share for each 10 comDec.; 10, 1962 filed. 100,000 common. Price-^$3.1 Business
able, inventories, plant expansion and working capital.
.mon held.
Price—$12; Business—Real: estate. Proceeds
/^/-Company plans to engage in the research and developOffice—2301 N. Main St., Paris, Texas; Underwriters—For general corporate purposes and debt .repayment.
ment of devices for the hard of hearing and equipment
John A. Dawson & Co., and Leason & Co.; Inc:, Chicago.
Office—40 Beaver St., Albany, N. Y. Underwriter—None.
applicable to certain specialized and affiliated areas of
Kreedman Realty & Construction Corp.
communication. Proceeds—For general corporate pur¬
Heck's Discount Centers, Inc.
--J
\
:
April 19, 1962 filed $5,000,000 of conv. subord. deben¬
g June 7, 1962 filed -125,000 common, r Price—By amend¬ poses. Office—171 E. 77th St., New York. Underwriter—
tures due 1982 and 200,000 common shares to be offered
None.
ment (max. $5): Business—Operation of discount-stores.
In units consisting of $25 of debentures and one common
Proceeds—For inventory, expansion, debt repayment and <
International Systems Research Corp.
share.
Price—By amendment (max. $27).
Business—
working capital. Office—6400 MacCorkle Ave., S. W.,
Maich 30, 1962 filed 110,000 class A common and 9-month
Construction and operation of office buildings. Proceeds
St. - Albans, ,W. Va.
Underwriter—Willard Securities,
warrants to purchase 110,000 class A shares at $4 per
—For
debt repayment.
Office—9350 Wilshire/Blvd.,
Tric/i New York. Offerings-Indefinite.'^ "
' shaie, to be offered in units, each consisting of one share
Beverly Hills. Calif. Underwriter—Lee Higginson Corp.,
and one warrant. Price—$4 per unit. Business—Design,
l;:. '• Hek Manufactoring : Co.,' Inc.
New York. Offering—Indefinitely postponed.
/- ' V.'"J
development and manufacture of mechanical, electro¬
Aug. 7, 1962 ("Reg. A") 75,000 common, of which 69,000
/
mechanical and electronic equipment for government
Kwik-Kold, Inc.
>
shares are to be offered for the account of the com¬
March 29, 1962 ("Reg. A") 100,000 common of which
agencies and the military. Proceeds—For equipment,
pany and 6,000 shares for the underwriter.
Price—$2.
debt repayment and working capital. Office—Engineer's
65,000 will be sold for company and 35,000 for stock¬
/ Business—Manufacture of dental equipment. Proceeds—
holders. Price — $3. Business — Manufacture of - certain
Hill, Plainview, L. I., N. Y. Underwriter—Leib, Skloot &
For debt repayment, advetrising, research and develop¬
patented cooling packages. Proceeds—For debt repay¬
Co., Inc., Clifton, N. J. Offering—Indefinite. ;/ J
ment
and
working capital./; Office—2176 Palou, San
ment and working capital. Office—Jennings Bldg., P. O.
Francisco.
Underwriter—L. H. Wright Co., Inc., N. YJInternational Terrazzo Co., Inc.
Box 638, Moberly, Mo. Underwriter—John
W. Flynn
Nov. 8,
1962 ("Reg. A") 75,000 common. • Price—$2.
Hill Street Co.
& Co., Santa Barbara, Calif. Note—This letter will be
Business—Manufacture and installation of terrazzo, and
Oct. 16, 1961 filed 2,265,138 common to be offered for
withdrawn.

for sale of TV and radio spot time. Proceeds—
working capital. Office—170 Varick St., N. Y. Un¬

agency

"For

the marina

field, principally in pleasure boating.

—

,

;

-

,,

■

.

.

•

subscription by stockholders of Union Bank of Califor¬
nia

on

a

share-for-share

basis.

Price—$3.

Business—A

management investment ? company. ; Proceeds—For in¬
vestment.
Office—760 S. Hill St., Los Angeles. Under¬
writer—None.
/

Hillsboro

;

•

Associates, Inc.

\

J

Nov.

27, 1962 filed $1,000,000 of 4% cum. income deben¬
tures due 1982 and 15,000 capital shares to be offered in
units

the

installation of marble and tile.

natural gas in and around St. Louis. Proceeds—To repay
bank loans. Office—1017 Olive Street, St. Louis. Under¬

y£ Interstate Equity
March 30, 1962 filed 1,605,100 shares of beneficial interest
Price—(max. $10).

'

Hobam, Inc.
Jan. 16,

1963 ("Reg. A") 75,000 class A. Price—$4. Busi¬
ness—Development and marketing of new equipment for
the processing industry. Proceeds—For debt repayment,
purchase of Strudh Co., in Sweden, and working capital.
Office—1720 Military Rd., Tonawanda, N. Y. Underwrit¬
er—Doolittle & Co., Buffalo.
:




Business—A real estate investment

Proceeds—For investment. Office—450 Seventh

company.

struction

;•//•/,-',•*.

(2/6)

New York. Offering—Imminent.

—A

.

Co.

Jan.

purposes.

—None.

.

Z Laclede Gas

Office—826 E. 62nd St., Brooklyn, N.JY.
Underwriter—Jay Gould & Co. Inc., Ill W. 57th St.,

rate

consisting of 10 shares or one $500 debenture and
Price—$1,000 per unit. Business—Company
plans to purchase the Hillsboro Club, a social and rec¬
reational organization.
Proceeds—For working capital,
debt repayment, and property improvement.
Office—
1776 E. Sunrise Blvd., Fort Lauderdale, Fla. Underwriter

five shares.

Proceeds—For debt

repayment, equipment, working capital and other corpo¬

Ave., N. Y. Underwriter-Van Alstyne, Noel & Co., N. Y.
Offering—Indefinite.
Investors Realty Trust
May 31, 1962 filed 200,000 shares. Price
real

estate investment trust.
and

investment.

Office

—

$10. Business

Proceeds
—

3315

—

For

con¬

Connecticut

Ave., N. W.* Washington, D. C.. Underwriter—None.
V 'Investors Trading Co.
Jan.

A

200,000 capital shares. Price — Net
(max. $5), plus 8% sales charge. Business—

17, 1963 filed

asset value

mutual

fund.

Denver Club

Proceeds—For

investment.

Office—460

Building, Denver. Distributor—Nemrava &

Co., (same address).

17,

tures

1963 filed $10,000,000 of sinking fund

due

1983.

Business

—

Distribution

and

deben¬
sale

of

writers—(Competitive). Probable bidders: Halsey, Stuart
&
Co. Inc.; Lehman Brothers-Merrill Lynch,
Pierce,
Fenner & Smith Inc.-Reinholdt & Gardner
(jointly);
Stone & Webster Securities Corp.; First Boston Corp.;
Eastman Dillon, Union Securities & Co. Bids—Feb. 6,
1963 (10:30 a.m. EST) at Bankers Trust Co., 16 Wall St.,
New York. Information Meeting—Jan. 31, 1963 (11 a.m.
EST) same address.
Laclede Gas Co.

(2/6)

Jan.

17, 1963 filed 200,000 preferred (par $25). PriceBy amendment. Business — Distribution and sale of
natural gas in and around St. Louis. Proceeds—To repay
bank loans. Office—1017 Olive Street, St. Louis. Under¬
writers—Lehman Brothers; Merrill Lynch, Pierce, Fen¬
ner & Smith Inc., New York, and Reinholdt & Gardner,
St.

Louis.
Continued

on

page

52

I/?!!!

52

The Commercial and Financial Chronicle

(508)

Continued from page 51

^

Merco

^

■

,

Properties Trust
Oct. 29, lb62 filed 500,UUO shares of beneficial interest.
price—$10.
Business—A real estate investment trust.
Proceeds—For investment.
Office—4933 Paradise Rd.,
"Vegas.

Underwriter—Securities

(same address).

of

Co.

•'

/

^

M

selling of fruits and <
vegetables. Proceeds—For debt repayment and working
capital. Office—Fresno Ave. & Charter Way, Stockton.;,
Calif. Underwriter — Van Alstyne, Noel & Co., New
Offering—Indefinite.

Livestock Financial
Feb.
—An
v

sure
new

,

,

Corp.

23, 1962 filed 130,000 common. Price—$10. Business
insurance holding company whose subsidiaries inthe lives of all types of animals. Proceeds—To form
subsidiaries. Office—26 Piatt St., N. Y. Underwriter

—Shearson, Hammill & Co., N. Y.

Offering—Indefinite.^

Loyalty Financing Corp.
Dec. 19, 1962 ("Reg. A") 24,000 shares of 6V2% cumu¬
lative convertible preferred and 60,000 common to be
offered in units consisting of 20 preferred and 50 com¬
mon shares.
Price—$250 per unit. Business—A business
finance company. Proceeds—For working capital. Office
—5 w. Main St., Freehold, N. J. Underwriter—Friedman
& Co., Inc., New York.

,,v;:

•

•

Madison Ave., New York. Underwriter
Lambert & Stephen, Inc., 50 Broad St., New
543

Madison
Dec.

Life

Insurance

Co.

Ingram,
York.
—

'

1963 filed 219,000 capital shares. Price — $6.
Business —1 Company plans to sell life, accident and
health, group insurance and annuities in New York
State. Proceeds—For organizational expenses, and in¬
vestment. Office—1 Liberty St., New York. Underwriter
27,

—None.

Mail

fices.

».—145

,

Underwriter—Peter Morgan & Co., N. Y.
New Campbell Island Mines Ltd.
Oct. 13, 1961 filed 475,000 common, of which
400,000 are
to be offered by the
company and 75,000 by a stock¬

of

(2/1)

97,000

Norda Essential

Oil & Chemical Co., Inc.
20, 1962 filed 200,000 class A shares. Price—By
amendment (max. $15).
Business—Manufacture, process¬
ing and distribution of natural and synthetic essential

oils, flavor,

essences, etc., to food and drug industries.
Proceeds — For debt repayment, working capital and
other corporate purposes. Office—601 W. 26th
St.. N. Y.

Price—$3.

Proceeds

—

For

Co., Pittsburgh.

Nordon Corp.,

Plastics

March

1962

Price

To

working capital. Office
geles.

Sponsor—Ira

Haupt & Co.,
New York. Offering—Indefinite.

National
7

Central

Life

Insurance

Manchester Insurance Management & Investment

To be named.

ment

-

<,

.

—Operation of
ated

payment

Manchester Rd., St. Louis.
& Co., N. Y.

Underwriter—Troster, Singer

Nuveen Tax-Exempt Bond
Fund, Series 4

Oct.

•

Puce—$3.50.
For

of

various

Business—Manufacture,
packaging
and
proprietary drug products. Proceeds—

equipment,

ing

capital.

new products, debt repayment and work¬
Office—156 Tillary St., Brooklyn, N
Y.

Underwriter—Dana Securities Co., Inc., N. Y. Note—This

Business—Company is engaged
tion

'

r

staff

and

working

capital.

Office—812

N. Y. Underwriter—To be named.

'•>.

Greenwich

ment and

insurance
poses.

St.,

May

McGrath

(John W.) Corp.
28, 1962 filed 253,875 common. Price—By amend¬
ment
(max. $15). Business—Contract stevedoring and

June

related

•

operations.

Proceeds—For

selling stockholders.

Office—39 Broadway, N. Y.
Underwriter—Bear,
& Co., New York. Offering—Indefinite.

Medical

Stearns

Industries

Fund, Inc.
23, 1961 filed 25,000 common. Price—$10. Business
—A closed-end investment company which plans to
become open-end.
Proceeds — For investment in the

/
:

;

V

medical

industry and capital growth situations. Office
—677 Lafayette
St., Denver. Underwriter — Medical As¬
sociates, Inc., Denver.
'

.

•f*

Medical Video Corp.

Nov.
ness

13, 1961 filed 250,000
—

Manufacture

Proceeds

—

For

of

common.

medical

Price

general

—Studio

City, Calif.
Corp., Los Angeles.




$1. Busi¬
equipment.

corporate purposes.
Underwriter — Financial
-

.

National Security Life Insurance Co.
March

23,

to

be

are

holders.

;

Office

Equity
.

■

1962

filed

100,000 common, of which 80,000
offered by company and 20,000
by stock¬
Price—$17.50. Business—A life, accident and

health

insurance

Office

—

company. Proceeds—For investment.
Alvarado, N. E. Albuquerque, N. M.
Underwriter—To be named.

National

—

electronic

Proceeds—For general corporate pur¬
Office—113 S. Hydraulic, Wichita, Kan. Under¬

company.

130

Security Life Insurance Co., Inc.

Nov.

28, 1962 filed 590,075 common to be offered for
subscription by common stockholders of record Oct. 15,
a share-for-share basis.
Price—By amendment (max.
$2). Business—Writing of participating and non-partici¬
on

Proceeds

—

For

additional

Busi-

boy's dress

inventory, equip¬

Outlet Mining Co., Inc.
Feb. 28, 1962 filed 900,000 common.
'Price—$1.
—Mining. Proceeds—For equipment and
tal.

Un¬

writer—National Mortgage Agency, Inc., (same address).
Note—This offering will be made only in the State of
Kansas.

Oct.
'

life and disability
Proceeds—For general corporate pur¬

Mortgage Corp., Inc. (2/1)
28, 1962 refiled $8,000,000 face amount certificates
(series 20) and 300,000 common shares. Price—For cer¬
tificates, $762; for stock, $1.15. Business—A mortgage
poses.

,

curities, Inc., Montgomery. Offering—Indefinite.
.

•

Business

working capi¬

Address—Creede, Colo.

Underwriter—None.

Pacific Southwest Airlines.

(2/4-8)
293,000 common, of which 80,000 are
company, and 213,000 by stockhold¬
Price—By amendment (max. $20). Business—Com-

Dec. 26, 1962 filed
to be offered
by

Dec.

loan

$5.

ment, research, and working capital. Address—P. O.
Box 27, Opelika, Ala.
Underwriter—First Alabama Se¬

National

;

Corp., New York.;".

and

a

Office—13 S. Broadway, Red Lodge, Mont.

Securities

(J. Herbert) Enterprises, Inc.
1, 1962 filed 200,000 common. Price—$5.25.

trousers.

Estates

operate

—

distribu¬

ness—The company and its subsidiaries
manufacture and
distribute cartridge type
tape player recorders and pro¬
grams therefor; sell at retail
nationally known audio
visual equipment; and manufacture men's

,

of

and

wholesale

of

derwriter—Mid-Town

derwriter—Security Brokerage Co., Billings, Mont.

Offering—Indefinitely

postponed.

.

to establish
concern.

in

Orr

11, 1962 filed 4,750,000 common. Price—$1. Busi¬
ness—Company plans to engage in cemetery develop-;

May 29, 1962 filed 60,000 common. Price—$3.75. Busi¬
ness—Graphic design and printing. Proceeds—For pub¬
lishing a sales catalogue, developing a national sales

Proceeds—

phonograph records and albums. Proceeds—For
loan repayment,
inventories, new products, and work¬
ing.capital. Office—614 West 51st St., New York. Un¬

,

National Memorial

Press, Inc.

taxes.

•
Olympia Record Industries, Inc." (2/1)
May 29, 1962 filed 53,000 class A common. Price

Oct.
Marshall

interest-bearing obli¬

investment.
Office—Chicago, 111.
Sponsor—John
Nuveen & Co., 135 So. La Salle
St., Chicago.

»«'. Inv., New York. Offering—Indefinite.

registration will be withdrawn.

of units representing
Price—By amendment.

to be exempted from Federal Income

cleaning and pressing plant and affili¬
Proceeds—For debt repayment,' store ex¬

Manufacture

$15,000,000

For

Business

Busi¬
galvanized chain link fence,
welded concrete reinforcing fabric, gates and related
products. Proceeds—For construction of a plant in Ire¬
land, and working capital. Office—4301 46th St., Bladensburg, Md. Underwriter—Netherlands Securities Co.,
—

filed

gations of states, counties, and municipalities of the U.
S.,
and political subdivisions thereof which are
believed

Manufacturing Co., Inc.
Nov. 29, 1962 filed 100,000 common. Price—$8.75.
ness

1961

Business—The Fund will invest in

a

National Fence

17,

fractional interests in the Fund.

This registration will be withdrawn.

Manhattan Drug Co., Inc.
March 29, 1962 filed 72,000 common, of which
58,000 are
to be offered by company and 14,000 by stockholders.
sa^e

stores.

Note—This registration will be

withdrawn.

and working capital. Address — Portage, Pa.
Underwriter—Cortlandt Investing Corp., N. Y. Note—

Office—9929

purposes.

Engineering Corp.

services.

Co., Washington, D. C.

pansion

corporate

Beverly

Proceeds—For equipment, debt
repay¬
expansion and working capital. Address—P. O.
Box 10901, Pittsburgh. Underwriters-Johnston. Lem^n Ac

,

claims, financing of insurance premiums, and the mak¬
ing of investments. Proceeds—For expansion, loan re-

Inc.,

ment,

Co.

National Equipment & Plastics Corp.
Sept. 28, 1961 filed 105,000 common. Price—$5.

&

contracts using radioactive tracers;
precision radio¬
activity measurement; production of radioactive isotopes
and the furnishing of
consulting and radiation measure¬

filed

*

Science

on

Ill Broadway,

1962 filed 272,941 common. Price—$3.50. Busi¬
ness—Writing of casualty
insurance,
adjustment / of

Nov. 28,

5455 Wilshire Blvd., Los An¬

March 29, 1962 filed 100,000 common.
Price—By amend¬
ment (max. $15). Business—Research and
development

125,000 common. Price — By amendment
(max. $15). Business—Writing of health and accident in¬
surance. Proceeds—For general corporate
purposes. Ad¬
dress—2632 McGee St., Kansas City, Mo. Underwriter—

;'•.

shares, of which

Underwriter—Gregory-Massari,

Nuclear

Music Royalty Corp.
July 27, 1962 filed 150,000 common. Price—$1. Business
—Company acts as representative of artists, musicians,
etc. and plans to engage in the music publishing busi¬
ness.
Proceeds—For debt repayment, public relations,
acquisition of musical properties, and working capital.
Office—545 Fifth Ave., N. Y. Underwriter—Associated
Securities Co., 545 Fifth Ave., N. Y.
Dec.

capital

Hills. Calif.

be supplied

Investment.

Ltd.
375,000

1962 filed

275,000 by
$6).* Busi¬
ness—Acquisition and development of oil and natural
gas
properties.
Proceeds—For drilling expenses - and

by amendment. Business—The
fund will invest in tax-exempt bonds of states, counties,
municipalities and territories of the U. S. Proceeds—Foi
—

29,

100,000 are to be offered by company and
stockholders.
Price—By amendment (max.

Municipal Investment Trust Fund, Series B#
April 28, 1961 filed $15,000,000 (15,000 units) of interests.

payment of loans, and general corporate purposes. Office
—130
Fulton Federal
Bldg., Atlanta.
Underwriter—

other

develop¬

March

Corp. i-.
("Reg. A") 140,000 common. Price—$2.
Business—Manufacture and sale of plastic letters, em¬
bossed sign faces, quantity signs and boat windshields.
Proceeds—For purchase of land and building, moving
expenses, equipment and working capital.
Office—5606
>
Stuebner Airline Rd., Houston.
Underwriter—W. R.
Sauve Co., N. Y.

Offering—Indefinitely postponed.

and

Business--Expioration,

A. C, MacPherson & Co., Toronto.

:

.

common.

cosmetics.

Price~^0c.

holder,

ment and mining. Proceeds—General corporate
purposes.
Office—90 Industry St., Toronto, Canada. Underwriter—

Underwriter-—S. D. Fuller & Co., N. Y. Offering—Ex¬

Monarch

Management Investment Corp.
Aug. 29, 1962 filed 2,000 common (with attached war¬
rants). Price—$500. Business—Company plans to fur¬
nish equity capital to firms in the
atomic, space and
missile fields, and provide advisory and management
counseling services on a fee basis.
Proceeds—For re¬

Corp.

Natural Gas & Oil Producing Co. (2/15)
Sept. 7, 1962 filed 180,000 class A common.
Price—$5.
Business—Production of natural gas and oil. ProceedsH
—For drilling expenses, working capital and other cor¬
porate purposes. Office—Tekoil Bldg., Oklahoma City.

pected in March.

May 28,

Proceeds—For general corporate pui poses. Office
Ave. of the Americas, N. Y. Underwriter—To be

None.

Manufacture

—

Inc.

*

derwriter—A. J. Davis

Assembly Service, Inc.

named.

:

A")

("Reg.

Underwriter—None.

This registration will be withdrawn.

—

Laboratories,

1962

Americas, N. Y.

equipment. Office—837 W. North Ave., Pittsburgh. Un¬

April 27, 1962 filed 100,000 common. Price—$2.25. Busi¬
ness—Assembling of packages for shipment to post of¬
.

29,

Business

g

.V„

Modern

Oct.

expenses

lease coin operated vending machines.
Proceeds—For
debt repayment, equipment and
working capital. Office
—15 Peachtree St., Atlanta. Underwriter—None. Note—

For general corporate purposes.
Office — 2615 First National Bank Bldg., Minneapolis.
Underwriter—None.

Lunar

Films, Inc. (2/1-8)
Aug. 31, 1961 filed 125,uuu common. Price—$5.75. Busi¬
ness—The production of television films. Proceeds—For
filming and production and working capital. Office—

Proceeds

company.

f

July 31, 1962 filed 85,000 common. Price—By amend¬
ment
(max. $4). Business—Company plans to sell or

Midwest Technical

Development Corp. !/
26, 1962 filed 561,500 common to be offered for
subscription by stockholders on the basis of one share
for each two shares held. Price—By amendment (max.
$7). Business — A closed-end management investment

subord. deben-

Business—Production of
Proceeds—For production and distri¬
and
working capital.
Office—r270

National Uni-Pac, Inc.

Feb.

Logos Financial, Ltd. Offering—Indefinite.
:

pictures.

of the

conv.

Price—At par.

bution
Ave.

Indemnity Co.
Dec. 26, 1962. filed 25,495 common to be offered for: sub¬
scription by stockholders on the basis of one share for
each three held of record Dec, 31, 1962. Price—$19.50.
Business—A multiple line insurance carrier. Proceeds—
For additional capital and surplus. Office—6901 Wooster
Pike, Cincinnati. Underwriters—W. D. Gradison & Co.,
Cincinnati, and Greene & Ladd, Dayton.

Logos Options, Ltd.
' v/
April 11, 1962 filed 250,000 capital shares. Price — By
amendment (max. $10). Business—A diversified closedend investment company. Proceeds—For investment. Of¬
fice—26 Broadway, N. Y. Underwriter—Filor, Bullard &
Smyth, N. Y. Note—This company formerly was named

J

tures due 1972.
motion

Midwestern

,

;

Telepix, Inc.

July 30, 1962 filed $150,000 of 6V2%

Corp.
March 30, 1962 filed $1,000,000 of convertible subordi¬
nated debentures due Nov. 1, 1977. Price — By amend¬
ment. Business—Distribution of food and related prod¬
ucts
to
supermarkets
and
other < retail
stores
in
the New York Metropolitan area. Proceeds—For general
corporate purposes. Office—345 Underhill Blvd., Syosset,
N Y. Underwriter—Brand, Grumet & Siegel, Inc., N. Y.
Offering—Indefinite.

—Processing, canning, bottling and

York.

National

Food

Met

1962 filed $2,250,000 of 5V2% convertible sub¬
ordinated debentures due 1982. Price—At par. Business

Thursday, January 31, 1963

—

liston & Beane, N. Y. Offering—Indefinite.

April 9,

.

Underwriter—None.

amendment (max. $5.50). Business—Sale of
phonograph records to, and the providing of merchan¬
dising services .to retail record department. Proceeds—
For general corporate
purposes.
Office—750 Stewart
Ave., Garden City, L. I., N. Y. Underwriter—J. R. Wil-

Nevada

V

-

Inc.

Foods,

(Tillie)

.

pating ordinary life insurance. Proceeds
To expand
operations. Office—6225 University Ave., Madison, Wis.

'

Price—By

"

Lewis

Inc.

Nov. 5, 1962 filed 104,000 common, of which 33,000 are
to be offered by company and 71,000 by stockholders.

Las Vegas

Las

Enterprises,

.

ers.
:

pany operates a scheduled airline

ing daily service between

San

in California, provid¬
Diego, Los Angeles, and

San Francisco. Proceeds—For
prepayment of loans. Of¬
fice—3100 Goddard Way, San
Diego, Calif. Underwriter
—E. F. Hutton &
Co., Inc., Los

Angeles.

•

Pak-Well

Paper Industries,

Inc. (2/25-28)
! March 30, 1962 filed 150,000 class A common.
Price—By
amendment (max. $13).
Business—Manufacture of en¬
velopes, packaging materials of various
kinds, wrapping
paper, stationery, and school supplies.
Proceeds—For
selling stockholders. Office—198 W.
Alameda, Denver.
Underwriter—Francis I. du Pont &
Co., N. Y.
Pan American

Beryllium Corp.

Feb. 28, 1962 filed
100,000 common.

Price—$5. Business
—Company plans to mine for beryl ore in
Argentina.
Proceeds —For debt
repayment, equipment, and other

corporate purposes. Office—39
Broadway, N. Y.
writer—To be named.
r*:-*

Under¬

■V:

Volume

t

Number

197

6234

.

.

:

12, 1962 filed 400,000 class A stock. Price—$10.
Business—A real estate holding and development com¬

To

Main

N.

—70

Office
Underwriter—

Proceeds—For general corporate purposes.

St., Freeport, L. I., N. Y.

Parkway Laboratories, Inc.
Dec. 6, 1961 filed 160,000 common.
—Manufacture of

Price—$5. Business
Proceeds

drugs and pharmaceuticals.

This registration will be withdrawn.
:

Aggregate Technlco, Inc.

Pellegrino

Aug. 10, 1961 filed 130,000 class A common shares. Price
—$5. Business—The manufacture of building materials.
Proceeds—For payment of income taxes and loans and

Office—Woodbridge-Carteret Road,

for working capital.

Port Reading, N. J. Underwriter—Mortimer B. Burnside
& Co., Inc., N. Y. Offering—Temporarily postponed.
•

Proceeds—For

fields.

electronic

and

Shaker

Properties '
'
''
19, 1962 filed 215,000 shares of beneficial interest.
Price—$15. Business — A real estate investment trust.
Proceeds—For investment and working capital. Office
—1956 Union Commerce Bldg., Cleveland, Ohio, Under¬

debt

working capital. Office—455 W. Main
St., Wyckoff. N. J. Underwriter—Myron A. Lomasney &
Co., N. Y. Note—This registration will be withdrawn
'

.
.

Pioneer

Telephone Co.

(2/4-8)

Dec. 28, 1962 filed 75,000 common, of

which 44,416 are

to be offered by company and 30,584 by stockholders.
Price—By amendment (max. $20). Proceeds—For debt
repayment, expansion and working capital. Office—40
S. Elm St., Waconia, Minn. Underwriters—Dean Witter
& Co., San Francisco, and M. H. Bishop & Co., Min¬

neapolis.

:

Playboy Clubs International, Inc.
May 28, 1962 filed 270,000 common. Price—By amend¬
ment. (max. $7). Business—Company is engaged in the
ownership and franchising of Playboy Clubs. Proceeds—
For debt repayment and general corporate purposes. Of¬
E.
Ohio St., Chicago.
Underwriter—Golkin,

fice—232

.Divine & Fishman, Inc.; Chicago.

Offering—Indefinite.

; Potomac Real Estate I nvestment Trust
July 6, 1962 filed 1,000,000 shares of beneficial interest
Price—By amendment (max. $5). Business—A real estate
investment trust. Proceeds—For investment. Office—880
Bonifant St., Silver Spring, Md. Underwriter—None.

ket St., Shreveport, La.

Underwriter—None.

Prescott-Lancaster Corp.
March 30,1962 filed 150,000 common.
—Real estate. Proceeds—For

Corp. of Missouri ?'
Nov. 27, 1962 filed 125,000 class A common and threeyear warrants to purchase 1,250 class A shares to be
offered in units consisting of four shares and one war¬
rant.
Price — $32 per unit.
Business — Company will
erect and operate sl luxury hotel and resort facilities,
and sell 80 acres of land for home sites. Proceeds—For^
construction. Office—3615 Olive St., St. LOUis. Under¬

Signalite

writer—R, L. Warren
in

March

—

Milton

Price—$5. Buslnem

the

challenged

accuracy

and

1962 filed 500 common to be offered for sub¬
on the basis of one new share
for each share held of record Feb. 18, 1962. Price—$1,000.
Proceeds—For debt repayment, construction of a swim¬
ming pool; and other improvements. Address—Landover,
Prince Georges County, Md. Underwriter—Notie.

adequacy

unit/Business—Manufacture and

Jan. 8, 1963 filed 40,000 common. Price—$5. Business
—Company specializes in financial consulting, and serv¬
icing patients' accounts of member hospitals, physicians

dentists. Proceeds—For debt repayment and work¬

ingcapital. Address—100 W, Tenth St., Wilmington, Del.
Underwriter—None.

300,000

Stars

N

Office—245

7th

Co., N. Y.

Ave..

V

•

outstanding common shares
by stockholders. Price—By amendment (max.
$10). Business—Book publishing. Office—1106 Connecti¬
cut Ave., Washington, D. C. Underwriter—Roth & Co.,
Inc., Philadelphia. Note—This registration will be with¬
to be sold

plant and equipment, working capi¬
corporate purposes. Office—-300 Horn Rd.,
Pinconning, Mich. Underwriter—None.
Stratford Financial
March

Federman

Note—This registration will be

Inc.
1962 ("Reg. A") 2,400,000 common. Price—12H
Business—Exploration and development of mineral
deposits. Proceeds—For debt repayment and general
-nrnorate nurn^ses. Address-^-Box 1088, Wallace, Idaho
2,

cents.

Russell

adviser

and

selling

stockholders.

distributor

of

mutual

Office—60

funds. Proceeds—For

Congress

Boston.

St.*

Underwriter—To be named.

Stratton

("Reg. A") 205,000 common. Price—$1.15
Business—Company plans to open a chain of coin oper¬
ated dry cleaning stores. Proceeds—Advertising, expan¬
sion and working capital. Office—712 Fir St., Brainerd,
Minn.

Underwriter—Northwest Securities, Inc., Detroit

Lakes, Minn.
R. E. D. M. Corp. (2/11-15)
June 29, 1962 filed 80,000 common, of which 40,000

will

gaged in manufacturing, engineering and research under
Defense Department contracts; also manufactures ball
point pens, points, mechanical pencils and desk sets
Proceeds—For equipment and working canital. Office—•

Falls,

Schweickart

Fassaic
&

County, N.
Co., New York. ;

J.

Underwriter—

Relay, Inc.
Oct. 1, 1962 filed 100,000 common, of which 75,000 will
be sold by company and 25,000 by a stockholder.
Price
—By

amendment

(max.

$10).

Business—Design

manufacture of electronic monitoring and

warning

and
sys¬

integrally lighted switches. Proceeds — For
product improvement and development, working capital,
and
other corporate purposes.
Office—1631 10th St.,
Santa Monica, Calif.
Underwriter—White, Weld & Co
Inc., New York. Offering—Indefinite.
tems, and

Recreation

Nov.

23,

1962

Business—Sale
For
411

capital
W.

Russotto

7th
&

of

travel

75,000

and

investment, and
St., Los

Co.,

Angela.

Beverly




common.

Price

entertainment.

working
Calif.

—

$2.

Proceeds—

capital.

Underwriter

Hills,

N. Y.

Note

—

Hills, > Calif.

Note—This

registration will

—

Office—
Costello.

Offering—Indef.

,

Teaching Systems, Inc.
1, 1962 ("Reg. A") 50,000 common;

be

June

ness—Production

July 25, 1962 filed 200,000 class A coirimon. Price—By
amendment (max. $2.50). Business—Ownership and de¬
velopment of real estate. Proceeds—For working capital.
Office—912
Thayer Ave., Silver Spring, Md.
Under¬
writer— North
American
Seaboard
Securities
Corp.,

are

be

to

B

for subscription

by holders of the

on

the basis of 4 company

share and

two-thirds share

for each class

C share of

Remaining 94.822 and any unsub¬
scribed shares will be offered publicly. Price—To public.
Selective

Life

held.

$6; to stockholders, $5. Business—Company plans to en¬
gage in the consumer finance,
mortgage, general fi¬
nance
and related businesses. Proceeds —r For general
nix.

Ave., Phoe¬

Underwriter—None.

Sentinel Life Insurance Co.

Sept. 10, 1962 filed 250,000 capital shares. Price — $5.
Business—Company plans to sell life and disability in¬
surance. Proceeds—For organizational expenses and other

Bonds

audio-visual

Proceeds—For investment in U. S.
and in new subsidiary. Office—801

Lafayette Life Bldg., Lafayette, Ind.

A,

affili¬
shares for each class A or

company.

Government

which 405,000

sand

C stock of Selective Life Insurance Co., an

B and

ate,

offered

of

Price—$2. Busi¬

educational

filed 48,500 common. Price—$100. Business
holding company which plans to organize a life in¬

surance

Corp.
common,

of

Tecumseh Investment Co., Inc.
—A

500,000

sale

Jan. 21, 1963

(same address).

1962 filed

and

teaching aids. Proceeds—For equipment, promotion and
advertising and working capital. Office—1650 Broad¬
way, N. Y.
Underwriter—Creative Ventures Corp., 733
Third Ave., N. Y.

Seaboard Land Co.

28,

named Stratton Realty &

Superior Commercial Corp.
15, 1962 filed 200,000 class A common; Of which
100,000 are to be offered by the company and 100,000 by
stockholders.
Price—$1.50.
Business—Company buys
and holds second mortgages. Proceeds—For general cor¬
porate purposes,? Office—9 Maiden Lane, New York*
Underwriter—S. C. Burns & Co., Inc., New York. Note
—This registration was withdrawn.

withdrawn.

Feb.

was

Offering—Indefinite.

Nov.

called Russell Manufacturing Co. Offering

San Francisco Capital Corp.
April 23, 1962 filed 60,000 common. Price—$12.50. Busi¬
ness—A small business investment company.
Proceeds
—For
investment.
Office—400 Montgomery St.,
San
Francisco. Underwriter—Cantor. Fitzgerald
Co.. Tnr

formerly

•

This company

corporate purposes. Office—830 N. Central

Industries, Inc.
("Reg. A")

was

Weeks.

—This company

Construction Fund, Inc..

Underwriter

Address—Alexander City, Ala.

Selective Financial

Radar

liability. Office—15 William St., New York.
Dealer-Manager—J. R. Williston & Beane, N. Y. Note

—Indefinite.

Beverly

be offered for the company and 40,000 for certain stock¬
holders. Price—By amendment (max. $6). Business—En¬

Little

expansion.

Fund, Inc.

income tax

Price—By amend¬

(max. $12).
Business—Manufacture of athletic
clothing, knitted underwear, children's sleepwear and
cotton cloth.
Proceeds—For bond retirement and plant

formerly

1962

Inc.

ment

—Hornblower &

Quick-N-Clean Corp. of Minnesota, Inc.
1,

Mills,

29,

March. 20, 1962 filed 500,000 common. Price—$20. Busi¬
ness—A new mutual fund which plans to offer investors
the opportunity of exchanging their individual securi¬
ties for shares of the Fund without incurring Federal

Underwriter—To be named.

Sept. 28, 1962 filed 312,500 common.

Corp.

1962 filed 315,000 class A shares of which
218,000 are to be offered by the company and 97,000 by
the stockholders, Price—$6. Business—Commercial fi¬
nance company.
Proceeds—For debt repayment. Office
—95 Madison Ave., N. Y, Underwriter—Mortimer EL
Burnside & Co., Inc., N. Y.

drawn.
Putnam Management Co., Inc.
Aug. 22, 1962 filed 150,000 common (non-voting). Price
—By amendment (max. $14). Business—An investment

Proceeds—For

tal and other

Ruby Silver Mines,

Jam

Inc.

Sterling Copper Corp.

withdrawn.

Publishers Co., Inc.
Aug. 29, 1962 filed 25,000

New York,

Aug. 2, 1962 filed 850,000 common. Price—$1. Business
—Company plans to operate a non-ferrous rod and tube
mill.

—

of

Conn. Underwriter—None.

common,

Underwriter

common

28, 1962 filed $450,000 of 15-year 8% debentures
and 15,000 common shares to be offered in 300 units,
each consisting of $1,500 of debentures and 50 shares.
Price—$2,000 per unit. Business—Operation of discount
department stores.? Proceeds—For debt repayment and
working capital. .Office—North Colony Rd., Wallingford,

to be offered by the company

Stonehill &

Industries,

filed 638,237

Dec.

of which 100.00C
and 200,000 by stock'
holders.
Price —By amendment
Business — Develops
and
prints color, and black and white photographic
film. Proceeds — For equipment and working capital
filed

1963

Sovereign Life Insurance cf California
28, 1962 filed 800 capital shares.
Price—$2,500.
Business—Company plans to engage in writing life and
disability insurance in California. Proceeds—For capital
and Surplus.
Office—510 S. Spring St., Los Angeles.
Underwriter—McDonnell & Co., Inc., New York. Offer¬
ing—Indefinite.

Royaltone Photo Corp.
1961

11,

Nov.

Indefinite.

29,

operation

Phoenix. Underwriter—None.

sale;of fishing equipment, ammunition reloading devices
cord, tapes, etc. Proceeds—For debt repayment and
working capital. Office—1526 W. 166th St., Gardena,
Calif. Underwriter — Dempsey - Tegeler & Co., Inc., St.

are

(2/6)

Inc.
to be offered for
subscription by stockholders on the basis of three new
shares for each five held. Price—By amendment (max.
$7). Business—Company manufactures lumber and wood
products, and converts, processes and distributes paper
products. Proceeds—For working capital and debt re¬
payment. Office — 444 First National Bank Building,

Roddy Recreation Products Inc. (2/4-8)
31, 1962 filed $1,000,000 of 6Vz% convertible sub¬
ordinated debentures due 1978 and 50,000 common shares
to be offered in units of one $500 debenture and 25

Nov.

Professional Men's Association, Inc.

and

Southwest Forest

Jan.

Rona Lee Corp.
Sept, 26, 1962 filed 100,000 common. Price—$5. Busi¬
ness—Design, manufacture, and distribution of girls'
blouses, sportswear, and
coordinates.
Proceeds—For
debt repayment. Office—112 W. 34th St-i N. Y. Under¬
writer—Winslow, Cohu & Stetson Inc., N. Y. Offering-

scription by stockholders

working capital.
J, Underwriter—
Offering—Postponed.

of towing boats.
conversion of a boat, and
working capital. Office—3300 N. W. North River Drive,
Miami, Fla. Underwriter—Irwin Karp & Co., Inc., 68
William St., N. Y.

of this registration statement.

shares. Price—$650 per

»

Proceeds—For debt repayment,

Louis.

Oct. 15,

Co., N.: Y.

Underwriter—Dillon,
'
'
.
Southeastern Towing & Transportation Co., Inc^
Nov. 29, 1961 ("Reg. A")
100,000 common. Price—$3.

Price—$5.

Underwriter—To,be named.

Prince Georges Country Club, Inc.

&

,

and

purchase of mortgages, anc

Blauner

Mercantile Dallas Building, Dallas.
Read & Co., Inc., New York.
\

,

Price—$7. Business
Proceeds-^-For debt
repayment arid general corporate purposes. Office—220
K St., N. W., Washington, D. C. Underwriter—Hirsche)
& Co., Silver Spring, Md. Offering—Indefinite. Note—
has

1

16, 1963 filed $14,000,000 of first mortgage bonds
due Jan. 1, 1993. Proceeds — For debt repayment, con¬
struction and other corporate purposes. Address—720

Richmond Corp.
Dec. 21, 1961 filed 142,858 common.
—A real estate investment company.

SEC

D.

Southwestern Public Service Co.

working capital and other corporate purposes. Office-?
237 W
51st St., N. Y. Underwriter—Richard Gray Co.,
New York. Offering—Indefinite.

The

-

Jan.

Proceeds —For

broker-dealer.

Offering—Indef¬

Inc.

Business—Construction

securities

A

\

,

For debt repayment,
equipment and
Office—1933 Heck Ave., Neptune, N.

Co., St. Louis, Offering—Expected

Gray & Co., Inc.
21, .1962 ("Reg. A") 60,000 common.

Business

■

29, 1962 filed 126,000 common. Price—$4.50. Busi¬
ness—Manufacture, sale and development of glow lamp®
use as indicators and circuit components. Proceeds—

Richard

June

:

for

April,

or

Cleveland.

Co.,

Jan.

„

working capital. Office—18 Lancaster Rd., Union, N. J

Oct

•

,

■

,

Dec.

Powell Petroleum; Inc.
Sept. 28, 1962 filed 100,000 common. Price—$5. Proceeds
—To drill for and operate oil wells.
Office—418 Mar¬

and

&

inite.

Remitco, Inc.
filed 952,000 common. Price—$10. Business
—Company is engaged in selling "puts" and "calls."
Proceeds—For working capital. Office—130 N. Virginia
iSt., Reno, Nev. Underwriter—None.
Resort

,

writer—McDonald

Nov. 19,1962

•

Office—225 Bush St., San Francisco,

purposes.

Oct.

and

and then refiled.

53

Calif. Underwriter—None.

an

•

•

electric

repayment

acquisition, research and other corporate pur¬
poses.
Office — 2301 Pennsylvania Ave., Philadelphia.
Underwriter—Arnold Malkan & Co., Inc., N. Y. Note—

—For

.

Jan.

che

named.

be

corporate

Regulators, Inc.
-V.
29, 1962 filed 75,000 common, of which 50,000 are
to be offered by the company and 25,000 by Electronic
Specialty Co., parent. Price—$5. Business—Design and
manufacture of regulating and control devices used in
•>

PanAm Realty & Development Corp.

March

pany.

(509)

The Commercial and Financial Chronicle

.

Inc., (same address).

L

Underwriter—Amo*
-•

Ten-Tex, Inc.
f: Dec. 31, 1962 ("Reg. A") 3,000 units each consisting of
one 6%% 10-year debenture, 25 common shares and pur¬
chase warrants for 100 common shares to be offered for

subscription by stockholders of Ten-Tex
of record Feb. 1, 1963 on the basis of one
'

150

and

common

lease

of

Corp., parent,
unit for each

Price—$100.
Business—Sale
machinery for production of tufted textile
shares held.

products. Proceeds — For debt repayment and working
capital. Office—3814 Tennessee Ave., Chatsworth, Ga.
Underwriter—Irving J. Rice & Co., Inc., St. Paul.
Continued

on

page

54

54

The Commercial and Financial Chronicle

(510)

Continued

from

sale of

"A:' A

53

page

debt
2117

Corp.

Tenna

,

Sept. 28, 1962 filed 122,000 common. Price—By amend¬
(max. $11). Business—Manufacture of automobile
antennas and radios. Proceeds—For repayment of bank

•

ment

and

1963 filed

16,

',*• Wallace

Texas

Inc.

Plastics,

Inc.

256,000

(2/14)

(William)

Co.

to be offered in units

po.-Blyth & Co., Inc.-Kidder, Peabody & Co.-Merrill

Steamship Corp.
Aug. 29, 1'961 filed 1,743,000 common. Price—By amend¬
ment.
Business—The carrying
of liner-type cargoes.
Proceeds—For the purchase of vessels, and working cap¬
ital.
Office—71 Saint Joseph St., Mobile, Ala.
Under¬
writer—Shields & Co., Inc., N. Y. (mgr.).
Offering—
Temporarily postponed.

Weld & Co.;

Securities & Co.-Salomon Brothers & Hutzler
Lehman Brothers; Halsey, Stuart &

(jointly);

Co. Inc. Bids—Feb.

18 (11:30 a.m. EST) at Ebasco Services, Inc., 2 Rector
St., New York. Information Meeting—Feb. 14 (11 a.m.

| EST) at

same

address.

1

-

<

| «

v

-Ar Allied Mortgage & Development Co., lnc.
Jan; 28, 1963, filed $2,000,000 of 6% subordinated sink¬
ing fund debentures due 1973 (with warrants) and 100,-

,

000 common, to be offered

Proceeds

ice

retail

stores

selling clothing, housewares, etc. Pro¬
expansion, equipment and working capital if
Office—2220 Florida Ave., Jasper, Ala.
Underwriter—
Philips, Appel & Walden, 115 Broadway, N. Y. Offering
—Temporarily postponed.

e

ceeds—For

Western

Power

&

Co.

*

Western Travel,

Inc.

capital.

working

Underwriter—None.

(2/11-15)

.

^ Butternut Basin,

N; University

1963 ("Reg;- A") 250 common. Price — $1,000.
Business—Development and operation of a ski and re¬

creational

area.

working

^Dudley Sports Co.? Inc.: /
Jan.

28,

Business

Ave.,

("Reg. A"); 66,000 common. Price—$2.25.
Distribution of baseballs, softballs, baseball

1963
—

/pitching machines and other sports equipment. Proceeds
•—For repayment of loaps^, ryyomottonal materials, and

July 30,; 1962 filed 80,000, common. Price—$12.50. Busi¬
ness—Acquisition of leases and production of oil and gas.

ing—Imminent.

Co., Inc., Dallas.

Proceeds

Jan.

Provo, Utah.
Provo, Utah.

|

Laboratories, Inc.
1962 filed 67,200 common. Price—$3.50. Busi¬
ness—Design, engineering and manufacture of special¬
ized products primarily in the field of contamination
control. Company also acts as sales agents and distrib-

—R. J.

Proceeds—For debt

equipment,

and

repayment,

advertising

other

corporate

purposes.

Ave., Rahway, N. J, Underwriter
'■ :•' -g > ififf f

pany
also sells radios, tape recorders, dictating and
photocopying machines, and provides a film developing
and printing service.
Proceeds—For new stores and

concessions.
Office—25 W. 43rd St., N. Y, Un¬
derwriter—Ingram, Lambert & Stephen, Inc., 50 Broad
St., New York. Offering—In early February.

camera

United

Variable Annuities

Fund, Inc.

11, 1961 filed 2,500,000 shares of stock. Price—$*0
p-^r share. Business—A new mutual fund. Proceeds—For
Office—20

Underwriter—Waddell

W.
&

9th Street, Kansas City, Mo.
Reed, Inc., Kansas City, Mo.

Urethane of Texas, Inc.

$5.05

per

leasehold
-—2300

unit.

Business—Manufacture

Proceeds—For

•

of

urethane

working

-

capital,

National

Bank

Bldg., Dallas. Under¬
writer
First Nebraska Securities Corp.,
Lincoln, Neb.
Offering—Temporarily postponed.
—

Valu-Rack, Inc.
May 4, 1962 filed 200,000 common, of which 100,000 are
to be offered by company and 100,000
by stockholders.
Price

—

$5. Business

merchandising
kitchenwares,

of

—

Wholesale distribution and retail

health

and

beauty

aids,

housewares,

wearing apparel

ceeds—For debt

Underwriter

and processing of

White Photo

Los

repayment.

Angeles.

and other goods.
ProOffice—2925 S. San Pedro

Underwriter—To

be

* Jebco> Inc.
Jan. 21, 1963 ("Reg. A") ,125,000 class A common to. be
offered for subscription by stockholders. Price—$2. Busi¬
ness—Manufacture of metal

,

22, 1963 filed 60,000 common. Price—$4. Business
—Operation of coin-operated automatic ice cube vending

and

and

clothes

washing and drying machines.
repayment, equipment, expansion
working capital. Office—565 Fifth Ave., New York.
For debt

Underwriter—M. G. Davis & Co., Inc., New York.

Winslow

Electronics, Inc.
1961 filed 125,000 common. Price—$4. Business
—Design and manufacture of precision .electrical and
electronic measuring devices and test equipment. Pro¬
ceeds—For

debt repayment and other ! corporate pur¬
Office—1005 First Ave., Asbury Park, N. J. Under¬
1
r '?*

poses.

"

23,

1962

filed

$250,000

of 7%
Price—95% of

'

conv.

de¬

A

stock

the

on

class

A

Real

estate.

shares

basis

held.

of

$500

debentures for

Price—$500

Proceeds—For

debt

per

unit.

repayment

each

Jan.
due

Products,

1962 filed 140,000

common.

Business

—Manufacture, development and assembling of precise
electronic replacement components for radio, TV and

and

opera-

*

30,
1993.

1963, filed $15,000,000

of first mortgage bonds

Proceeds—For construction.

Office—321

No.

& Co.

Inc.; Lehman Brothers-Blyth & Co. Inc. (jointly);
Corp.; Harriman Ripley & Co., Inc.-Eastman Dillon, Union Securities & Co.
(jointlv); Equitable
Securities Corp. Bids—March 12 (11. a.m. EST) at First
National City Bank, 55-Wall St., New York, y!
c • " '

100

First

Business—
and realty

Inc.
:
Price—$3.

development

Harvey St., Oklahoma City. Underwriters— (Competi¬
tive).. Probable bidders: Merrill Lynch, Pierce, Fenner
V& Smith Inc.-White, Weld & Co. (jointly); Halsey, Stuart

acquisitions. Office—10 East 40th St., N. Y. Underwriter
—S. E. Securities, Inc., 10 East 40th
Street, New York.
Note—This registration will be withdrawn.Electronic

=

,

'

Corp.
Jan. 26, 1962 filed $4,500,000 of 6.5% convertible sub¬
ordinated debentures due 1977 (with attached warrants)
to be offered for subscription by stockholders of class

Boston

if Packard Instrument Co., Inc.

(2/19)

^

.

i

/

y

Jan. 28, 1963, filed 100,000 common, of which 50,000 are
to be offered by company and 50,000 by L. E. Packard,
Chairman. Price—By amendment (max. $25). Business

—Development and manufacture of scientific instru¬
ments, principally for detection and measurement of
repayment,
in¬
radio-activity. Proceeds—For debt repayment, plant exventory, research, and other corporate purposes. Office
/ pansion, and working capital. Office—3713 Grand Blvd.,
—Packinghouse Rd., Sarasota, Fla. Underwriter—HensBrookfield, 111. Underwriter—A. G. Becker & Co., Inc.,
berry & Co., St. Petersburg, Fla. Offering—February.
Chicago.
industrial

Zero

use.

Proceeds—For

Mountain

30,

1962

Inc.

("Reg.

debt

(2/11-15)
A";

if Potomac Electric Power Co.

Price—$3
Business—Operation of underground cold storage facil¬
ities.
Proceeds—Expansion, debt repayment and working

bentures due
1973.
principal amount.
Business—Sale of franchises for on-location cleaning of

capital.

carpets, furniture, floors, etc., and the manufacture and

writer




interests. Proceeds—For

tion of

properties. Office—531 Petroleum Bldg., Wichita,
/ Kan. Underwriter—None.
'
'
"
/ ?

Wolf

March

subord.

^National Oil & Gas Investment Fund,
,
vV
Jan. 11, 1963 ("Reg. A") $300,000 of certificates. Price—
$600 per unit. Business—Purchase of oil and gas leasehold

'•

writer—To be named.

•

Wade, Wenger ServiceMaster Co.
Nov.

,

.

Oct. 25,

—

office furniture and equip¬

(L.

Workman

Vend-Mart Inc.

Proceeds

advertising. Office—118 E. 28th St., New
Co., New York.

ment for the U. S. Government and others. Proceeds—
F.), Inc.
For inventory, equipment and financing of customer acOct. 27, 1961 filed 162,000 common, of which 102,000 are
to be offered by the company and 60,000 by stock¬ y counts. Address—Jonesboro, Ga. Underwriter—None, yy
holders. Price—$3. Business—Operates a chain of retail
if Lord Jim's Service Systems* inc.
*
'-f fe
drug stores. Proceeds—Expansion, equipment and work* -Jan. 14, 1963 ("Reg. A") 100,000 common. Price — $1.
Ing capital. Office—738 Bellefonte Ave., Lock Haven, Pa.
Business—Operation of drive-in restaurants. ProceedsyUnderwriter—Godfrey, Hamilton, Taylor &; Co., N. Y. y For leases, equipment and working capital. Office—
1601 Mandeville Canyon Rd., Los Angeles. Underwriter
Wiener Shoes Inc.
:
—Keon & Co., Los Angeles.
"
/
April 2, 1962 filed 80,000 common. Price — By amend¬
if National Land Corp.
!
ment (max. $11). Business—Operation of a chain of shoe
Jan. 21, 1963 ("Reg, A") 300,000 class A common. Price
stores. Proceeds—For debt repayment, expansion and
—$1. Business—Land development for residential, agri¬
working capital. Office — 808 Dakin St., New Orleans.
cultural^ and commercial.,.purposes, Proceeds—For debt
Underwriter
Howard, Weil. Labouisse. Friedrichs &
repayment, acquisition and land improvement. Office-fCo., New Orleans. Note—This registration will be with¬
82 W. 2865 S., Salt Lake City. Underwriter—None. ; >
drawn.
^

named.

Jan.

machines

tray-forming and chip-covering mate¬
operating expenses, equipment, in¬

York. Underwriter—L. D. Brown

•

St.,

'

Proceeds—For

ventory and

and other corporate purposes. Office

expenses

Republic

equipment,

Dispenser Corp.

29, 1963, filed 50,000 common, Price—$2. Business
—Manufacture of the SAFER Butter Chipping machine,

Dec. 28,

Feb. 14. 1962 filed 250,000 class A and 250,000 common to
be offered in units of one share of each class. Price—

foams.

633 Secohd Aye., New York.
Co,, The., New /York. Offer¬
x
'
5

—

A^ril

investment.

Office—Thompson Bldg., Tulsa.
Edwards, Inc., Oklahoma City. „■

Widman

■

f • United Camera Exchange, Inc.
V<
Nov. 29,. 1962 ("Reg. A")
100,000 common.
Price—$3.>
Business—Operation of retail stores selling and trading
cameras, films and other photographic equipment. Com¬

-

* Electronic

other corporate

—

Office—1695 Elizabeth

—

Underwriter—W. R. Reish &

Offset, Inc.
July 13, 1962 filed 100,000 common. Price—$3.50, Busi¬
ness—Photo-offset printing. Proceeds — For debt repay¬
ment, equipment and working capital. Office—142 W.
26th St., N. Y. Underwriter
K-Pac Securities Corp.,
New York. Offering—In mid-February." *
'
;

'

'

working capital. Office

rials.
•

|y utors of allied equipment in the fields of contamination
control and ultrasonics.

Inc.,

Inc.

For repayment of debt and

—

Securities,

purposes.

Ultrasonic

fig —None.

Underwriter—Western

Wheeler & Ryan,

Nov. 29,

-

Proceeds—For construction, equipment

capital. Address—Butternut Basin, Great
Barrington, Mass. Underwriter—Kennedy-Peterson,' Inc.,
Hartford, Conn.
\\ •
* < >
and

Tyson's Foods, Inc.
26, 1962 filed 100,000 common. Price—By amend¬
(max.; $12)?Business—Company5 Operates an inte¬
grated -poultry, business. Proceeds — For construction,
equipment1 4nd'Working capital. Office—317 East'Eiiima
Ave., Springdale, Ark. Underwriter—Rauscher, Pierce &
Dec.

ment

-

Inc.

Jan.' 15,

-

Office—290

certain stockholders.

Ave., South Gate, Calif. Under-

if Buckingham Corp. (2/2G) * '• «i>
/ * " ~ >
Jan. 25, 1963,-filed 400,000 class A common.; Price—By
amendment (max. $30). Business — Importer of Cutty
Sark Scotch whiskey. -Proceeds—For selling stockhold¬
ers. Address—620 Fifth Ave., New York.. UnderwriterLehman Brothers, New York.
'
.
- .•
v

-

Proceeds—For equipment, exploration and working capi Oct. 29, 1962 ("Reg. A") 187,000 common. Price — $1,
ital. Office—201 E. 4th St., Casa Grande, Ariz. Under-1
Business—Operation of motels, hotels, restaurants and
writer—None.
related businesses. Proceeds—For completion of a motel
and

due

writer^Dean Witter & Co., San Francisco.

Feb.

Resources, Inc.
May 28, 1962 filed 500,000 capital shares. Price—$1.50
Business—Exploration, development and production of
the Lake Shore copper deposit near Casa Grande, Ariz.

filed

1963,

ceeds from the stock sale will go to

Jan.

Transarlzona

28,

/debentures
/ For

Of¬

21, 1963 filed $9,000,000 of subordinated debens. due
15, 1978. Price—By amendment. Proceeds—For debt
repayment, construction, advances to subsidiaries, and
other corporate purposes. Office—144 South
12th St.,
Lincoln, Neb. Underwriters—Paine, Webber, Jackson &
Curtis, Dean Witter & Co.* and Stone & -Webster Secu¬
rities Corp., New York.

*s "•

$800,000 convertible subordinated
1978? and • 15,000 capital shares. Price—
debentures, at par; for stock? by amendment (max.
$20). Business—Furnishing of specialized chemical metal
processing and finishing services..Proceeds—For debt re¬
payment, new; plants and other corporate purposes. Pro¬
Jan.

Address—10647 Garfield

Proceeds—For investment.

Gas

repayment, land development, and
Office — 3756 Lamar Ave.y Memphis,

Tenn. Underwriter—To be named.

.

fice—1755 Gilpin St., Denver, Colo.

For debt

—

'^Ariadite/jnc.??:!

Sept. 26, 1962 filed 600,000 shares of beneficial interest.
Price—$4. Business—Company plans to quality as a real
estate investment trust.

a

share.

working capital.

Western Empire Real Estate Investments

Top Dollar Stores, Inc.
May 1, 1962 filed 200,000 common, of which 100,000 are
to be offered by company and 100,000 by stockholders
Price—$5. Business—Operation of a chain of self-serv¬

in units of one $20 debenture

warrant to purchase two shares) and one com¬
Price—By amendment. Business—Mortgage
banking-, fearestate deveIopmertt, and sale of insurance.

(with

mon

Waterman

Pierce, Fenner & Smith Inc. (jointly); White,
First Boston Corp.; Eastman Dillon, Union

"fcynch,

This Week

1963 filed $2,500,000 of subordinate debentures,,
due 1981 (wth attached warrants) and 150,000 common

consisting of one $1,000 debenture.:
packaging , products.- Proceeds—For working capital.
and one warrant to purchase 55 common shares/ Price
Address—Elsa, Texas. Underwriter—Crow, Brourman & g1
—By amendment. Business—Manufacture of double wall
Chatkin, Inc., N. Y.
gas vent systems, prefabricated chimneys, roof drainage
equipment, stove pipe, and fittings.. Proceeds—For loan
Texas Power & Light Co. (2/18) .« ? - •
repayment and working capital. Address—230 Park Ave.,
-Jan. 22, 1963 filed $10,000,000 of first mortgage bonds
New York. Underwriters—Reynolds & Co.; Inc., and P. ■
due 1993. Proceeds—For construction, and other corpo- g
W. Brooks & Co., Inc., New York. Offering—Expected
rate purposes. Office — 1511 Bryan St., Dallas. Under¬
in late February.
* >
>
;
'
J
'
^
writers—(Competitive). Probable bidders: Kuhn, Loeb
&

Issues Filed With SEC

<

common.

Jan., 9,

July 27, 1962 filed 313,108 common. Price—$3.50. Bust- v
ness—Operation of a plant producing plastic film and

V

Thursday, January 31, 1963

—

capital.

working

.

Office—

Price—By amend¬
ment. Business
Manufacture of chemicals, equipment
and pharmaceuticals. Proceeds—For selling stockhold¬
ers. Office—25 Main St.,
Belleville, N. J. Underwriters—
White, Weld & Co. and Cyrus J. Lawrence & Sons, N. Y.

Office—19201 Cranwood
Parkway, Warrensville Heights, Ohio. Underwriters—
Westheimer & Co., Cincinnati, and Hartzmark & CoInc., Cleveland.

loans

.

cleaning equipment and materials. Proceeds—For

repayment and other corporate purposes.
N. Wayne, Chicago. Underwriter—None.

Wallace & Tiernan

Jan.

.

Address—Box
—

594,

iuu.uuu

common.

Favetteville.

Don D. Anderson &

Ark.

Under¬

Co., Inc., Oklahoma City.

(2/19)

25,'1963, "filed $50,000,000 of first mortgage bonds
due 1998. Proceeds—For loan repayment, and construc¬
tion. Office—929 E St., N. W., Washington, D. C. Under¬
writers—(Competitive) Probable bidders: Dillon, Read &
Co., Inc.-Lehman Brothers-Eastman Dillon,, Union Secu-

Jan.

Volume

197

•

Number

6234

on the last sale of bonds on Dec. 8, 1960: White, Weld
Co.-Kidder, Peabody & Co. (jointly); First Boston
Corp.; Shields & Co.- Equitable Securities Corp. (joint¬

Kidder,

Peabody

Federation Bank & Trust Co.

&

Co.-Merrill Lynch,
Pierce, Fenner & Smith Inc.-White, Weld & Co.-Salomon
Brothers & Hutzler
(jointly). Bids—Feb. 19 (10
a.m.
EST) at above address.
Corp.;

&

Jan.

1963 it

23,

reported that the bank is offering
right to subscribe for an additional
the basis of one new share for each
seven held of record Jan. 22. Rights will expire Feb. 7.
Price—$32. Proceeds—To increase capital funds to permit
the opening of additional branches. Office—10 Columbus
Circle, New York. Underwriters — Kuhn, Loeb & Co.,
its stockholders

ly); Halsey, Stuart & Co.; Stone & Webster Securities
Corp. Offering—Expected in March. /"/://///////////

100,114 shares

Atlantic City Electric Co.

(3/6)
that the company plans to
sell $15,000,000 of first mortgage bonds due 1993. Office
—1600 Pacific Ave., Atlantic City, N. J. Underwriters—
(Competitive). Probable bidders: White, Weld & Co.Shields & Co. (jointly); Kuhn, Loeb & Co., Inc.-American
Securities Corp.-Wood, Struthers & Co. (jointly);
Lee Higginson Corp.; Halsey, Stuart & Co. Inc.; White,
Weld & Co.-Shields & Co. (jointly); First Boston Corp.-

Jan. 22, 1963 it was reported

★ Power Cam Corp. •
Jan. 28, 1963, filed 200,000 capital shares. Price—$4.75.
Business—Company plans to manufacture a new type of
brake unit for heavy duty automotive vehicles. Proceeds
—For equipment, and working capital. Office — 2604
Leith St., Flint, Mich. Underwriter—Farrell Securities
Co., New York.

55

(511)

bid

rities & Co.-Stone & Webster Securities Corp.-Johnston,
Lemon & Co. (jointly); Halsey, Stuart & Co. Inc.; First
Boston

Financial Chronicle

The Commercial and

...

was

the

on

Inc.; Paine, Webber, Jackson & Curtis, and Laird, Bissell
& Meeds, New York.
V Food Fair Properties, Inc.

May

11,

1962

stockholders

issue 756.000 shares of

a

which will be offered

to

authorized

new

the

company

to

convertible preferred stock

stockholders

through subscrip★ Thunder Mountain Skiing, InC^
Drexel & Co. (jointly); Eastman Dillon, Union'Securi/
tion, rights on a 1 -for-10 basis. Price—By amendment./
Jah.11, 1963 ("Reg, Av) 5,000 common. Price — $ 15.
ties & Co.-Smith,;Barney & Co.; (jointly); Blyth & Co.
Business—Development and operation of shopping cen- /
Business—Development of a ski and recreational area at
ters. Proceeds—To retire outstanding 6% preferred stock
Hawley, Mass. Proceeds—For debt repayment.. Office—4 r
and purchase up to $6,000,000 convertible debentures of
Putnam Hill, Greenwich, Conn. Underwriters—Putnam 0
Hillr Greenwich,*
I*.,
"
:
'
•'
v''i..
/«/
Atlantic Coast Line RR (2/18):^;:
& Co.; Hartford, and Smith;'Ramsay & Co., inc., Bridge- :*
//iw' Major Realty Corp., an affiliate. Office—223 East Alleg¬
" Atlantic Coast Lin« RR (2V
■

EjST^.atjlrvIng jJTrust.

5!fNew *York

.

"

—

-

port Conn. /

.* 'Y

*,) '•*

'

'Valley Investors, Inc.
vq
qoq n^Q
Jan, 23, iofiQ filed 328,858
1963/
.Tar».

<

—A

mutual

new

'

'

'

»-

7

common.

*,

rw*

Jam- 15y 1963 it wasoreported

*

' •».» /.

equipment trust certificates*. Office-r-220 E».42nd St., New York. Underwriters

offip^,0990°F

rikSh^

Price-—$1,' Business,

fund: Proceeds—For investment.

that this road plans to sell
tr

Philadelphia. Underwriter—To be named.
The last rights offering in December/T95T/wasvuiider-^
written by Eastman
Dillon^ Union Securities ..&/ Co^s

-

?

Bethlehem Steel Co.,

New York.

added that this would not be required

future.

details, where available,' willcarried in the
Monday issue of the "Chronicle,"

class A and

voting control of the company. The stock, now
held by the Attorney General, was/seized' in 1942 as a
German asset. No date has been set for the offering
whicfo need not

reim burse American citi¬
War
II. Business—Company is a leading domestic producer
of dyestuffs, chemicals and photographic materials. Of¬
fice—111 W. 50th St., New York. Underwriters—(Com¬
petitive). Probable bidders: Bache & Co.; Blyth & Co.First Boston Corp. (jointly); Lehman Brothers-Kuhn,
Loeb & Co.-Glore, Forgan & Co. (jointly).

in the immediate

per

share

Office—25 Broadway, New York. Underwriters
The last public sale of securities in May,

1955/ was handled by Kuhn; Loeb & Co., and Smith;/

by

to offer $12,000,000 of 25-year first mortgage bonds in
February. Office — 195 Montague St., Brooklyn, N. Y.

Eppler,

*■

Japan Development Bank; " ;
$22,500,000 of 6% Guaranteed External
due Feb.

Loan

Stuart &

Oct. ; 29,

/'/'

Lewiston-Gorham Raceways, Inc./.
common offered at $1 per share by the company,
'

_

headquartered at

-

1962 it

Power Co.

was

Lynch; Pierce, Fenner & Smith Inc.; New York.
7

Central Illinois

Light Col (3/11)

I

Jan. 2, 1963 it was reported that this utility plans to

400,000 American Depositary/Shares Offered at $16.75
each by First Boston
Corp., and Daiwa Securities Co.,
Ltd., New York.

$9,375,000

of first mortgage

Proceeds—To

refund

a

sell

1993 in March.
like amount of 3^4% bonds due

bonds due

April 1, 1963. Office—300 Liberty St., Peoria* 111. Un¬

Petrolane Gas Service, Inc.

derwriters

100,000 common offered at $26 per share by Dean Witter
Co., San Francisco.

.

you have an issue you're planning to register?
Our/Corporation^ News Department would like

(Competitive). Probable

bidders:

Halsey,

* Gulf States

Kidder, Peabody

•

Co.; Eastman Dillon, Union Securities & Co.; Merrill
Lynch, Pierce, Fenner & Smith Inc.-Stone & Webster
Securities Corp. (jointly); Blyth & Co.-Lehman Brothers
& Cd.-Salomon Brothers & Hutzler
(jointly). Bids—
March"11 (11 a*.m. ;EST> at* 300 Park' Ave., New York.
Information Meeting—March 8 (11 a.m.) at 16 Wall St.
(2nd" floor), New, York.
'
" |
.

half of 1963. Office—285 Liberty Ave., Beaumont, Tex.
Underwriters—(Competitive). Probable bidders: Stone
& Webster Securities Corp.; Lehman Brothers-Equitable
Securities Corp. (jointly); Glore, Forgan & Co.-W, C.
Laagley & Co. (jointly); Lee Higginson Corp, -

,

Industries, Inc.1
/ "
/
1962 it was reported that this company plans
to raise some $2,500,000 by a rights offering to stock¬
holders. Authorized stock now consists of 2,000,000 $1.25
Highway Trailer

■

know about it

J to
•

so

that

similar to those you'll
Would

.

•

write

you

us

telephone

at 25, Park

we

can

prepare

find hereunder.

at

us

an

|

REjctftr

Central

item

July 10,

-

2-9570

or

v'

;

Place, New- York,?* N.; Y/

'O
-

|

Prospective Offerings
Alabama

Power

Co.

(5/9)

1962 it

Public

Service

Co.

Sept.

reported that this company plans
to issue about $10,000,000 of firstmortgage bonds in
1963. Proceeds—For construction. Office—607 E. Adams
was

Z

able

bidders:

Eastman

22, 1963 it was reported that this subsidiary of The
Southern Co., plans to sell $13,000,000 of first
mortgage
bonds and $5,000,000 of preferred stock in May. Proceeds

—For construction. Office—600 North 18th

St., Birming¬
ham, Ala, Underwriters—(Competitive), probable bidders.
(Bonds). Blyth & Co., Inc.-Kidder, Peabody &
Co. (jointly); Lehman
Brothers; Eastman Dillon, Union
Securities & Co.-Equitable Securities Corp.-Drexel &
Co. (jointly); Halsey, Stuart & Co.
Inc.; First Boston
Corp.; Morgan Stanley & Co. (Preferred); First Boston
Corp.; Eastman Dillon, Union Securities & Co.-Equitable
Securities Co. (jointly); Blyth & Co.; Morgan
Stanley
& Co.; Stone & Webster Securities
Corp. Bids—Expected
May 9, .1983.
■'
•
•
•
'
.

.

.

par

Dillon/Union Securities & Co.-

shares

common

Chicago Burlington & Quincy RR

shares

are

outcargo

Interstate Power Co.

16, 1963, following the sale of $6,300,000 of equip¬
ment trust certificates, it was reported that $14,700,000
of certificates remain to be sold in 1963, in two or more
instalments. Office — 547 W. Jackson Blvd.,* Chicago.
Underwriters—(Competitive). Probable bidders: Salo/ mon Brothers & Hutzler; Halsey, Stuart & Co. Inc.
Jan.

Jan.

16, 1963 it

was

reported that this company plans to

sell $7,000,000 of first mortgage bonds and $3,000,000 of
stock in May 1963. Office—1000 Main Street,

common

...

Dubuque, Iowa. Underwriters—(Competitive). Probable
bidders: Merrill Lynch, Pierce, Fenner & Smith Inc.Kidder, Peabody & Co. (jointly); Halsey, Stuart & Co..
Inc.; Salomon Brothers & Hutzler; White, Weld & Co.

\

Iowa Power & Light Co.

issue

28, 1962 it was reported that this company will
$48-$50 million of first mortgage bonds in May
1963. Proceeds—To refund outstanding 3Vs% and 27/s%

Jan.

to sell

bonds

—823 Walnut

Nov.

maturing July 1, 1963. Office—210 S. Canal St.,
Chicago. Underwriters — (Competitive). Probable bid¬
ders: Kuhn, Loeb & Co.; Halsey, Stuart & Co. Inc.; Kid¬

.

which 714,086

of

containers, telephone and power line construction equip¬
ment, etc. Proceeds—To help form a new finance com¬
pany subsidiary. Office—250 Park Ave., N. Y. Under¬
writers—To be named. The last financing by the com¬
pany
was underwritten by; Allen
& Co.,, and Van
Alstyne, Noel & Co.. New York City.

Equitable Securities Corp. (jointly); Blyth & Co.-KidPeabody & Co.-Merrill Lynch, Pierce, Fenner &
Smith Inc. (jointly); Halsey, Stuart & Co. Inc.; Salomon
Brothers & Hutzler; First Boston Corp.; Lehman Broth¬
der,

Chicago Union Station Co.

10,

|standing. Business—Manufacture of truck trailers,

ers-Bear, Stearns & Co. (jointly).

"l"

Jan.

..

Illinois

St., Springfield, 111. Underwriters—(Competitive). Prob>

T

•

Utilities Co*

Jan. 29, 1963 the company announced plans to sell1 100,000 shares of preferred stock (par $100) in the second

&

II ATTENTION UNDERWRITERS!
| Do

—

Stuart & Co, Inc.; First Boston Corp.;

&

,

,

^ Great Northern Ry. (3/7)'
Jan. 30, 1968 it was reported that this road plans to
sell $5,250,000 of equipment trust certificates in March.
Office—39 Broadway, New York. Underwriters—(Com¬
petitive). Probable bidders: Salomon Brothers & Hutz¬
ler;. Halsey, Stuart & Co. Inc* Bids—Expected March 7
(12 noon EST) at above address.

1

.

Nippon Electronic Co. Ltd.

•

Electric

reported that this company plans
to raise new money in the third or fourth quarter of
1963. A spokesman for the company stated that the util¬
ity is thinking of selling 380,000 common shares, al¬
though a final decision has not been made. Office—2885
Foothill Blvd., San Bernardino. Underwriter —Merrill

450,000

Auburn, Maine.

Cfy Inc.; White, Weld, & Co.; Merrill Lynch,

California

Bonds

First Boston Corp.; Dillon, Read & £ov Inc.; and. Smith,

without underwriting. The company is

Georgia Power Co* (117)
it was reported that this subsidiary of The
Southern Co., plans to sell $30,000,000 of first mortgage
bonds and $7,000,000 of preferred stock in November.
Proceeds—For construction. Office—270 Peachtree Bldg.,
Atlanta. Underwriters — (Competitive). Probable bid¬
ders: (Bonds): Equitable Securities Corp.-Eastman Dil¬
lon, Union Securities & Co.. (jointly); Blyth & Co.-Kid¬
der, Peabody & Co.-Shields & Co. (jointly); Halsey,
Stuart & Co. Inc.; First Bpstpn Corp^; Ifarriman Ripley
& Co.; Morgan Stanley & Co.; Lehman Brothers. (Pre¬
ferred): First Boston Corp.; Lehman Brothers; Blyth &
Co.; Eastman Dillon, Union Securities & Cd.-Equitable
Securities Corp. (jointly); Morgan Stanley & Co. Bids
—Expected Nov. 7, 1963.
.

Pierce, Fenner & Smith Inc.; Blyth & Co., Inc.-Eastman
Dillon, Union Securities & Co.-F. S. Moseley & Co.
(jointly); Harriman Ripley & Co., Inc.-First Boston
Corp. (jointly) * Bids—Expected Feb, 27.

1/1978; pffei^d :^96,get%* ;to yield 6.366%, by

Barney: & Co.,

•

Jan. 22, 1963

Underwriters—(Competitive.) Probable bidders: Halsey,

Dailas Power & Light Co. *
$25,000,000 of 4Y4% first mortgage bonds due Feb. 1,
1993, offered at 101.019% and accrued interest, to yield
4.19%, by Kidder, Peabody & Co.; Blyth & Co., Inc., and
Merrill Lynch, Pierce/ Fehner & Smith Inc., New York.

for losses of life and property during World

zens

-Brookiyit Unionl Gas Cob (2/27)
Decj 26; 1962 it was reported that the company, plans

96;000 common; offered at $6.50
Gqerin & Turner, Inc., Dallas,

be registered with/the SECr Proceeds

fi om the: sale will be qsed to

—To be named.

Stores,. Inc.

2,050,006 class B shares, representing 98%

of the

Barney & Co., New York.
Circle K Food

/

/

■

signed a bill au¬
thorizing the Government to sell its holdings of 540,894

•

3, 1962, Arthur B. Homer, Chairman, announced
that the company will embark on a $750,000,000 capital
improvements program to be completed over the next
three years.
He said that approximately two-thirds of
the financing for the program will be generated inter¬
nally and the balance secured externally. Mr. Homer

The foUowingt registration statements, were </eclared. effective this week by the SEC* Offering

Offering—Indefinitely postponed..

General Aniline & Film Corp.
On Oct. 22, 1962, President Kennedy

Dec.

Effective Registrations

Ave.,

,

(Competitive). Probable bidders: Salomon Brothers &,
Hutzler; Halsey, Stuart & Co. Inc. Bids—Feb. 18 (12/
noon EST)
at above address.

Ad¬

dress—Sidney, Montana. Underwriter—To be named.

hany

1962 it was reported that the company plans
$10,000,000 of bonds in the fourth quarter. Office

16,

St., Des Moines. Underwriters—(Competi¬

tive). Probable bidders: First Boston Corp.; White, Weld
&

* American Savings & Loan Association (2/11-15)
Jan. 29, 1963 it was reported that
242,581 shares of this

der, Peabody & Co/

Co.; Halsey, Stuart & Co. Inc.; Equitable Securities
Corp.; Kidder, Peabody & Co.; Eastman Dillon, Union

firm's

I/Consumers Power Co.

Securities & Co.; Lehman.

ruary.

Jan.

capital stock will be offered publicly? in Feb¬
Of the total, 200,000 will be sold for the company
42,581 for certain stockholders... The issue is ex¬

and

empted
A

from

SEC registration. Price—$8.50, Business—

savings and loan

company

with branches in Utah and

Hawaii. Office—63 South Main
St., Salt Lake
derwriter—J. A. Hogle & Co., Salt Lake

City. Un¬

City.

At'anta Gas Light Co.

(jointly); Harriman Ripley & Co. Inc.-First Boston
(jointly); Morgan Stanley & Co.

:

•

Jan.

22, 1963 the company stated that it was negotiat¬
ing with, certain underwriters for the proposed sale of
<S07 nnn Ann
,k
j.'
$27,000,000 of first mortgage bonds. It added that if the
£i

negotiations

t

not

r,

,

..

Eastern

Freight Ways, Inc.

vt

;

^

9, 1962 the ICC authorized the company to issue
100,000 common. Price—By amendment *(nhm $5)z Busi-

.

and for construction. Office—243
Peachtree




St., N. E, V sidiaries. Office — Moonachie Ave., Carlstadt,
Underwriter—Allen & Co.. New York.

named. The following

N.

J.

Supply Co./-.

utility plans
$2,000,000 of
preferred and common stocks. Proceeds—For debt repayment, and construction. Office — 161-20 89th Ave.^

'to

at

85

Jamaica Water

20, li*62 it was reported that this?
sell $3,000,000 of mortgage bonds and

March

fruitful

Atlanta, Ga. Underwriters—To be

Brothers; Blyth & Co.

Service Co.

that this company plans to
the third quarter of 19S3.
Address—Orpheum-Electric Bldg., Sioux City, Iowa. Un¬
derwriters—(Competitive).
Probable bidders: Kidder,
Peabody & Co.-Blyth & Co. Inc. (jointly); Eastman Dil¬
lon, Union Securities & Co.; Equitable Securities Corp.;
White, Weld & Co.; First Boston Corp.

Oct.

,

Public

Nov. 5, 1962 it was reported
sell $16,000,000 of bonds in

Corp./

the bonds would be sold ) ness—A motor vehicle common carrier
operating in nine
competitive bidding. Proceeds — To refund approxieastern states from Vermont to Virginia: Proceeds—For
mately $17,000,000 of outstanding 5%%. bonds due
1982-working capital, debt repayment and advances to subare

Iowa

16, 1963 it was reported that the company plans to
sell $40,000,000 of bonds in the second half of 1963, or
in 1964. Office—212 West Michigan Ave., Jackson, Mich.
Underwriters—(Competitive). Probable bidders: Halsey,
Stuart & Co. Inc.; White//Weld & Co.-Shields & Co.

-

.

•

,

•

.

;

-

-

-

•

Continued

on

page

56

56

Continued

The Commercial and Financial Chronicle

(512)

from

page

Ave.,, Hammond,

55

Underwriters

Ind.

Probable bidders: Halsey, Stuart

sale of bonds

,

Southern Railway Co.
Jan.

15, 1963 stockholders authorized the company to
$50,000,000 of general mortgage bonds. Proceeds—
acquire stock of Central of Georgia Ry.; retire first
mortgage 3%% bonds of Atlanta & Charlotte Air Line
BR.; reimburse the treasury for capital expenditures and
provide for additional capital expenditures. Offices—14th

Northern Natural Gas Co.
Jan.

Kentucky Utilities Co.

sell

issue

To

16, 1963 it was reported that this company plans to
$30,000,000 of debt securities sometime in 1963 or
St., Omaha, Neb. Underwriter—

1964. Office—2223 Dodge

1, 1962 it was reported that this utility plans to
approximately $15,000,000 of 30-year first mortgage

Aug.

named.

be

To

Office—120 So. Lime¬
Underwriters—(Competitive).

The

handled

bonds, in the first quarter of 1963.

I960

St., Lexington, Ky.
Probable bidders: Blyth & Co., Inc.; Halsey,

of debentures

sale

last

Nov.

on

16,

negotiated basis by Blyth & Co.,

Inc., N. Y.

stone

Co.

Kidder,

Inc.;

Stuart
Co.-White, Weld & Co.

Peabody &

was

on a

and

Richmond,; Va., and 70 Pine St., New
—
(Competitive). Probable bidders;
Eastman Dillon, Uniorj Securities
& Co.-Salomon Brothers & Hutzler (jointly); Halsey,
Stuart & Co. Inc.; Kidder, Peabody & Co.-White, Weld
& Co. (jointly). Bids—Expected in late February.

11, 1963, it was reported that this company plans
$25,000,000 of first mortgage bonds due 1993 in
half of the year. Proceeds — For construction.
Office—15 South Fifth St., Minneapolis. Underwriters—
sell

the last

Laguna

Niguel Corp*

Northwestern Bell Telephone Co.

would have'to earn only 6% to provide the same
Business—Acquisition, development and manage¬
ment of real properties. Office — 32802 Pacific Coast
Hwy., So., Laguna, Calif. Underwriter—To be named.
The last financing for the company was handled by
Paine, Webber, Jackson & Curtis, Boston.
pany

sell
441

16, 1963 it was reported that this company plans to
$10,000,000 of bonds in the fourth quarter. Office—
Stuart St., Boston. Underwriters — (Competitive);;;

,

•

Michigan Consolidated Gas Co. (3/19)
30, 1963 it was reported that this company plans
to sell $30,000,000 of 25-year first mortgage bonds in
Jan.

St., Detroit. Underwriters—(Competitive) Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; White,

(jointly). Bids—Expected

March 19.
<

to

Michigan Wisconsin f^ipe Line Co.
1962 fit was reported that this
sell about

company plans
$22,000,000 of first mortgage bonds in the

third quarter of 1963. Proceeds—For construction. Office
—500
Griswold St., Detroit. Underwriters—(Competi¬

Pacific Power

Corp.; Blyth & Co., Inc.

Mitsubishi

Electric

Mfg. Co.
that the Japanese Finance
Ministry had authorized the company to sell $10,000,000
Oct. 24, 1962 it was reported

of convertible bonds in the U. S.

.

/

•

sell

Smith, Barney & Co., New York.
(3/25)
Dec. 26, 1962 it was reported that this road plans to sell
about $5,475,000 of 1-15 year equipment trust certificates

Co.-Kidder,

of

Brothers

&

Hutzler

Halsey,

(jointly);

'

v

the

retirement

Union

Light, Heat & Power Co.

Nov.

21, 1962 it was reported that this subsidiary
Cincinnati Gas & Electric Co., plans to sell $5,000,000

of

first

mortgage

bonds

in

Office—139

1963.

East

of
of

Fourth

St., Cincinnati. Underwriters—(Competitive). Probable
Halsey, Stuart & Co> Inc.; Blyth & Co. Inc.First Boston Corp. (jointly); Merrill Lynch, Pierce, Fen¬
ner
&
Smith
Inc.-Kidder, Peabody & Co. (jointly);
Equitable Securities Corp.; White, Weld & Co.; Kidder,
Peabody & Co.
bidders:

(2/26)

Virginia Electric & Power Co.

Underwriters—(Competitive)/ Probable bidders: Halsey,
Stuart & Co. Inc.; Stone & Webster Securities Corp.;
White, Weld & Co.; Eastman Dillon, Union Securities &
Co.; Salomon Brothers & Hutzler. Bids—Expected May

Halsey, Stuart & Co. Inc.: Salomon Brothers &
noon

(5/14)

Jan. 16, 1963 the company announced plans to sell $30,000.000 of first mortgage bonds due 1993. Proceeds—For
construction. Address—7th and Franklin Sts., Richmond.

EST) at office of Will-

Chase

14.

Washington Gas Light Co.
Aug. 1, 1962 it
sell
of

was reported that this company plans to
$12,000,000 of 25-year bonds, in the second quarter

1963.

Office—1100 H. St., N. W., Washington, D. C.
Underwriters—(Competitive):
Probable bidders: East¬
man Dillon, Union Securities & Co.;
Equitable Securities
Corp.; Kidder, Peabody & Co.; First Boston
sey, Stuart & Co. Inc.

Socony Mobil Oil Co., Inc.
22, 1963 the company announced plans to sell about
$200,000,000 of debentures in early April. Business—Com¬
pany and its subsidiaries are engaged in the production,

derwriters—(Competitive.) Probable bidders: Salomon
Brothers & Hutzler; Halsey, Stuart & Co. Inc. Bids —
Expected March 25.,

•

Western

Jan.

refining,

29,

Light & Telephone Co., Inc.

1963,

the

company

(5

announced

plans
stockholders the

transportation and distribution of petroleum
products. Proceeds—For general corporate purposes. Of¬

purchase 113,300 additional common shares

fice—150

of

about

E.

42nd St., New York. Underwriter—Morgan
Stanley & Co., New York.

Co.

(
stated that it plans to spend

1963,

fall

Jan.

Office—8 N. Jefferson St., Roanoke, Va. Un¬

in

&

writer—To be named.

Ry.

the

3, 1962, A. J. Wagner, Chairman/stated that the
Authority plans to issue $50,000,000 of short- or longterm securities in the spring of 1963;
Proceeds—For
construction.
Office—Knoxville, Tenn. Underwriters—
To be named.
On Jan. 24, 1962 the Authority sold at
competitive bidding $45,000,000 of 4%% bonds due Feb.
1, 1987. The issue was won by a group jointly managed
by Chase Manhattan Bank; Morgan Guaranty Trust Co.
of New York; Chemical Bank New York Trust Co.; C.
J. Devine & Co.; and the First National Bank of Chicago.

Snelling & Snelling, Inc.
Nov. 20, 1962 it was announced that the company plans
its first public offering of stock. Business—Operation of
a
nationwide network of franchised personnel consult¬
ants with offices in 35 major cities. Proceeds—For ex¬
pansion. Office—1530 Chestnut St., Philadelphia. Under¬

—

20, 1962 the company
$40,000,000 on construction

Securities

kie, Farr, Gallagher, Walton & Fitzgibbon, One
Manhattan Plaza, New York.

Business
Nippon Telegraph, wholly-owned by the
Japanese Government, furnishes domestic telephone and
telegraph services, without competition, in Japan. Pro¬
ceeds—For
expansion. Office—Tokyo,
Japan. Under¬
writers—Dillon, Read & Co.; First Boston Corp., and

in

Tennessee Valley Authority

.

(12

plans to

company

bonds

Oct.

February;
This is the second installment of a total
of $12,720,000. Office—3600 W. Broad St., Rich¬
Va. Underwriters — (Competitive.)/Probable
Hutzler. Bids—Feb. 26

that this

mortgage

Stuart & Co. Inc.

issue

bidders:

Dec.

Tnc."S'alomon

Brothers

and

of first

Office—428 Travis

St., Shreveport, La. Underwrit¬
ers—^(Competitive). ProJwbla^biddeESi Merrill Lynch,
Pierce, Fenner & Smith Inc.-Eastmari Dillon, Union Se¬
curities & Co. (jointly); Kuhn, Loeb & Co.-Blyth & Co,

Light Co.

construction

$30,000,000

1963.

29, 1963 it was reported that this company plans to
$6,360,000 of equipment trust certificates in late

Nippon Telegraph & Telephone Public Corp.
Dec. 19, 1962, it was reported that the company plans to
sell $20,000,000 of bonds in the United States in. the fis¬
cal year April 1, 1963 to March 31, 1964. The financing
program is subject to approval by the Japanese Diet.

Gas

sell

reported

Seaboard Air Line RR

( Jan.

mond,

Illinois

Southwestern Electric Power Co.
Jan. 16, 1963 it was reported

$17,000,000 of maturing bonds. Office—9th and Hamilton
Sts., Allentown, Pa. Underwriters—To be named. The
last sale of bonds on Nov. 29, 1961 was won at com¬
petitive bidding by White, Weld & Co., and Kidder,
Peabody & Co.
Other bidders were Halsey, Stuart &
Co. Inc.; First Boston Corp.-Drexel & Co. (jointly).

Brothers; Merrill Lynch, Pierce, Fenner & Smith, Inc.

Northern

Ave., Dallas. Underwriters— To be named. The last
rights offering of preferred stock in April 1959 was
handled by Snow, Sweeny & Co., Inc., N. Y., and, A; C.
Allyn & Co., Chicago.

bidders:

Proceeds—For

—

in March.

1962 it was reported that this utility plans a
offering of $10,000,000 of convertible preferred
stock in the first quarter of 1963. Office-—1507 Pacific
rights

Pennsylvania Power & Light Co.
Jack K. Busby, President and C. E. Oakes,
Chairman, stated that the company will require about
$93,000,000 in debt financing in the period 1962 to 1970.

16,

Norfolk & Western

Southern Union Gas Co.

Lehman'Brothers-Bear, Stearns &
&
Hutzler
(jointly); Halsey,
Stuart & Co. Inc.; Blyth & Co.-White, Weld & Co. (joint¬
:

EST) at above address.

noon

Feb. 20, 1962.

England Power Co.

1963 it was reported that this utility plans to
sell $10,000,000 of bonds and $10,000,000 of preferred
stock in the fourth quarter. Office—441 Stuart St., Bos¬
ton. Underwriters
(Competitive). Probable bidders:
(Bonds) Halsey, Stuart & Co. Inc.; Lehman BrothersEquitable Securities Corp. (jointly); Kuhn, Loeb & Co.;
Merrill Lynch, Pierce,
Fenner & Smith Inc.-Kidder,
Peabody & Co.-White, Weld & Co. (jointly); First Bos¬
ton Corp. (Preferred) First Boston Corp.; Dean Wfitter
& Co.-Smith, Barney & Co.-Wertheim & Co.
(jointly);
Equitable Securities Corp.-Kidder, Peabody & Co.-Lee
Higginson Corp.-White, Weld & Co. (jointly); Lehman

&

was

70 Pine St., New York. Underwriters—•

—

(Competitive). Probable bidders: Salomon Brothers &
Hutzler; Halsey, Stuart & Co. Inc. Bids—March 27, 12

Aug. 15,

ly); Eastman Dillon, Union
Peabody & Co. (jointly).

publicly or privately.
Business—Production of electric machinery. Proceeds—
For
expansion. Office—Tokyo, Japan. Underwriter—
Kidder, Peabody & Co., New York.

Jan,

it

Office

issue.

,

whether the issue will be sold

New

Probable

Co.-Salomon

by March 31, 1963. It is

expected that the bonds would mature in 15 years and
bear interest of 6.5%. No decision has yet been made as
to

sell $4,020,000 of equipment trust certificates in
March. This is the second instalment of a total $8,040,000

that the company plans
to issue $30,000,000 of first mortgage bonds in June 1963.
Proceeds—To repay outstanding loans. Office—920 S. W.
Sixth Ave., Portland, Ore, Underwriters—(Competitive).
1962

28,

29, 1963 it was reported that this company plans

to

16, 1963 it was reported that this company plans
to sell $10,000,000 of bonds in the fourth quarter. Office
—215 South Cascade St., Fergus Falls, Minn. Underwriters— (Competitive). Probable bidders; Halsey;'Stuart
& Co. Inc.; Blyth & Co. Inc.; Glore, Forgan & Co.-Kalman & Co. (jointly); White, Weld & Co.

Nov.

tive). Probable bidders: Halsey, Stuart & Co. Inc.; First
Boston

^-Southern Railway Co. (3/27)
Jan.

^ Pacific Northwest Bell Telephone Co. (4/2)
Jan. 28, 1963 it was reported that this company plans
to sell $50,000,000 of debentures due 2003. Proceeds—•
To reduce outstanding debt, due Pacific Telephone &
Telegraph Co., in connection with the transfer in 1961
of the latter's properties in Washington, Oregon and
Idaho; Office—1200 Third Ave., Seattle, Wash. Under¬
writers—(Competitive). Probable bidders: Morgan Stan¬
ley & Co.; Halsey, Stuart & Co. Inc. Bids — Expected
April 2.

March. Proceeds—For construction. Office—415 Clifford

Octi<> 24,

(3/5)

Jan.

Halsey, Stuart & Co. Inc.; First Bos¬
ton Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc.;
Eastman Dillon, Union Securities & Co.; Kidder, Pea¬
body & Co.; Blyth & Co.-White, Weld & Co. (jointly).

Weld & Co.-Lehman Brothers

Office—70 Pine St., New York. Underwriters—
(Competitive). Probable bidders: Salomon Brothers &
Hutzler; Halsey, Stuart & Co. Inc. Bids — Feb. 14 (12
noon EST) at above address.

Otter Tail Power Co.

Probable bidders:

Railway Co. : (2/14)

ruary.

reported that this A. T. & T., subsidiary plans to sell $40,000,000 of debentures to mature not
later than 40 years after date of issuance. Office—100
So. 19th St., Omaha, Neb. Underwriters—(Competitive).
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan
Stanley
& Co.; First Boston Corp.-Eastman Dillon,
Union Securities & Co.
Bids—Expected March 5, 1963
at 195 Broadway, New York.

Massachusetts Electric Co.

Corp.;

Jan, 16, 1963 it was reported that the company plans to
sell $4;020,000 of equipment trust certificates in Feb¬

Dec. 3, 1962 it was

return.

Jan.

Southern

(Competitive). Probable bidders: Halsey, Stuart & Co.
Inc.; First Boston Corp.-Blyth & Co. (jointly); Merrill
Lynch, Pierce, Fenner & Smith Inc.-Kidder, Peabody &
Co.tWhite, Weld & Co. (jointly); Equitable: Securities
Corp.-Eastman Dillon, Union Securities & Co. (jointly);
Lehman Brothers-Riter & Co. (jointly).

1962, Gerald W. Blakeley, President, stated that
the company is "seriously considering" the issuance of
about $10,000,000 of debentures to redeem its 60-cent
cumulative class A stock. Mr. Blakeley said class A divi¬
dends must be paid from after-tax earnings, meaning
the company has to earn 12% of gross revenue, whereas
interest on debentures is an expense item, so the com¬
Dec. 11,

St.,

First 'Boston

Northern States PowerCo.( Minn.)

to

Canal

York. Underwriters

Jan.

(jointly); Eastman Dillon, Union Securities & Co.-Merrill Lynch, Pierce, Fenner & Smith Inc. (jointly).

Thursday, January 31, 1963

.

Terminal Annex, Los Angeles 54, Calif. Under¬
writers—(Competitive) Probable bidders: White, Weld
& Co.; Blyth & Co. Inc.; Merrill Lynch, Pierce, Fenner
& Smith Inc.; Halsey, Stuart & Co. Inc.; First Boston
Corp.
"
-

Lynch, Pierce, Fenner & Smith Inc. (jointly); First Bos¬
ton Corp.; Kuhn, Loeb & Co.

Co., Inc.

.

■J, 2736,

(Competitive).

& Co. Inc.; White, Weld

& Co.; Eastman Dillon, Union Securities & Co.-Lehman
Brothers-Bear, Stearns: & Co. (jointly); Equitable Se¬
curities Corp.; Dean Witter & Co.-Blyth & Co.-Merrill

Y. Underwriters—To be named. The last
on May 3, 1956 was made by Blyth & Co.
Other bidders were: Halsey, Stuart & Co. Inc.; Kidder,
Peabody & Co.; White, Weld & Co.
The last several
issues of preferred were sold privately. The last sale
of common on May 9, 1956 was made through Blyth &
Jamaica, N.

sell

—

.

Southern California

Jan.

16,

1963

it

Edison Co.

one

new

offering

on

right

to

the basis

share for each

Proceeds—To

repay

—Dean Witter &

reported that this company plans
to sell $60,000,000 of bonds later this year or in 1964.
Office—601 West Fifth St., Los Angeles. Underwriters—
(Competitive). Probable bidders; Halsey, Stuart & Co.
was

Inc.; First Boston Corp., and Dean Witter & Co.
ly).
:■

by

10 held of record about May
bank loans, and for construction.
Office—2015 Forest Ave., Great Bend, Kan. Underwriter
1.

"

undetermined
raised by sale of bonds. Office
—615 Eastern Ave.,
Bellwood, 111. Underwriters—(Com¬
petitive). Probable bidders: First Boston Corp.; Halsey,
Stuart & Co. Inc.; Blyth &
Co., Inc.-Equitable Securities
Corp. (jointly); Glore, Forgan & Co.
an

amount of which will be

$3,000,000

fy

Co., San Francisco.

-"

/

Wisconsin Public Service Corp.

Jan.

16, 1963 it

was

reported that this company plans to

sell $15,000,000 of bonds later this year or in 1964. Office
North Marshall St., Milwaukee. Underwriters—

(joint¬

—1029

.

'

Northern Indiana Public Service Co.
Jan. 27, 1963, the company stated that it

.

plans to

$25-$30,000,000 of first mortgage bonds sometime
depending

on

market conditions. Office




—

.v

sell

in 1963,

5265 Hohman

^

s

,

.

<'

Southern Counties

-

•.

'.-V;.

'

'

.

(Competitive).. Probable bidders: Halsey, Stuart & Co.
Inc.; Merrill Lynch^ Pieree7 Fenner. & Smith Inc.; Eastman
Dillon, Union Securities & Co.-Salomon Brothers

■

Gas Co. of Calif. - - v
/'.>•>
Jan. 2, 1963 it was reported that this
subsidiary of Paci¬
fic Lighting Corp., plans to sell $27,000,000 of first mort¬
gage bonds in the fourth quarter. Address—P. O. Box
.

-

-

& Hutzler

(jointly); First Boston Corp.; White, Weld &

Co.; Kidder, Peabody & Co.

Number 6234

Volume 197

.

The Commercial and Financial Chronicle

*

.

The following statistical

Indications bf Current
^
AMERICAN
Index

Cr"d°

100.0

102.8

production

:;i

——Jan, 25

(bbfs.)

-Jan. 18

30,256,000

cSiate 8X&".soa.ooo
Jan. 18

Finished

eacnlinp

Kerosene

f bbls

)

fl.P

nicHiifUp

3,713,000

^2,a3H,UUU

„a9

1j.6jo.ooo
6,707,000

182,684,000

28,647 000

28,843,000

29,449,000

32,090,000

Jan. 18

129,885,000

136,271,000

153,100,000

BANK

Jan-18

49,349,000

49,375,000

50,893,000

82,454,000

85,284,000

of

November

179,679

CAR

79,392,000

Revenue

OUTPUT

Bituminous

(U.

coal

Pennsylvania

NEWS

lignite

•

cars

cars

order

on

undelivered

and

month),,—

DEBITS—BOARD

OF

GOVERNORS

OF

(000's omitted)

$320,900,000

BUILDING

CONSTRUCTION-—U. S. DEPT. OF
LABOR—Month of December (in millions):
Total new construction—
Private

,

(tons)
—

>

n_

L—

——..cSL:

SYSTEM—1957-59 AVERAGE=100

g,

EDISON

ELECTRIC

Electric

60,600,000

//

Jan 19

Hospital

lb.OUO.uuu
qo

.

16,435,000

All

»

,

Public

FAILURES

(COMMERCIAL

BRADSTREET,
AGE

IRON

steel

Pig iron

gross

(per

PRICES

._——

6.19fac

6 196c

'

$25.8

'•«

/vDo'mSSeiT'at...
■

Export refinery at
(New York) at

Lead

Lead

(St.

3Zinc

at_
at)

(delivered

Zinc

(East St.

Aluminum

MOODY'S

Louis)

at_

(primary pig,

99.5%)
(New York) at—,—

tin

Straits

BOND

at

corporate
,v.

-----

-

120.125c

113.000c
on

q,

oc

no

90.02

.

—Jan. 29

92.93

93.08

90.77
89.37
83.53

90.77
89.37
83.40

Jan. 29
Jan. 29,.
Jan. 29

86.11
90.63
90.63

90.63
88.54
83.15
85.59

Jan. 29 /

,

—

Industrials'Group-BOND

;

—————

———————

YIELD

DAILY

'

AVERAGES:

V

—

—

—

—

—.

—

-----Jan. 29

—

—————

Railroad

Public

Group—
Group

Industrials

Group

NATIONAL

received

Orders

:

—

ASSOCIATION:

.

of

activity—-—-J--—-—,

Unfilled orders

(tons) at-end of period——

1949 AVERAGE=190
TRANSACTIONS

FOR

ACCOUNT

4.39
4.40
369.7

372.5

HS

341.351
350,964
94

Egypt (net tons)——

All

457,966

446,459

M

,nn

_

.

.

Housing,.

Apparel

Total

L

purchases-—

—Jan.. .4

sales

Jan.

Total

—

—

Total

initiated

purchases—

Short

the

floor—

Jan.

sales

433,540

4

39,700
397,800
437,500

-Jan.

4
4

the floor—

Short

sales-—-————.

Other

sales——

C/Ift

724,729

Jan.

4

Jan.

4

130,420
950,036

Jan.

4

1,080,456

81,700
563,360
645,060

1.194,894
1,373,594

:

/

Total

•

.

4

Jan.

4

COTTON

LOT

DEALERS

EXCHANGE

Odd-lot sales
Number

—

AND

SPECIALISTS

SECURITIES

by dealers

ON

Y.

N.

rqq

In

3,512,599
.452,500
?'o2o'ooe

Dollar value——.

short

other

Dollar value

Round-lot
Number

sales——

4

$62,026,252
'

Jan.

—Jan.

——

sales by dealers—
of shares—Total sales

Short sales—

Other

4

—Jan.
—Jan.

——

sales——————

——Jan.

Round-lot purchases by dealers—Number of shares——Jan..
TOTAL

ROUND-LOT

STOCK

SALES

ON

THE

N.

Y.

STOCK

,.^,981

1,611,174

4

^.904,244

.

$101,294,266

"in

,

1,652,303

spindles

13,088
toJo«9i?

°

EXCHANGE AND
FOR

ACCOUNT

ROUND-LOT

OF

TRANSACTIONS

STOCK

Durable

503,360

845,920

Hours—

..

749,390

845,920

352,090

All

503,360

165,380

'

Short sales

-

LABOR—(1957-59=] 00):

Commodity
All

;

•—

All

as

of

29——

Dec.

OF

••/'

4
4

29

•

/

commodities

'

Meats
All

.•

foods
——————

commodities other

than farm

and

•Revised figure.
tNumber of orders
sold on delivered basis at.centers where




:

552,860
15,751,450

.

Jan. 22
Jan. 22
—Jan. 22

—

foods

———:

Jan. 22 '
Jan. 22

„

559,006

19,542,000
16.395,000

19,561,000
17,181,000

8,035,000

8,019,000

365.9

^

,

100.5
98.8
100.5
96.6
100.6

100.5
°98.6
100.5

96.7
,

,

,

100.7

/

100.6
99.1
l°°-7
98.2
101.7

reported since introduction of Monthly Investment P^an*
freight from East St. Louis exceeds one-half cent a pound, a,Not

;

Not
Not
Not
Not
Not

avail.
avail.
avail.
avail.
avail.

—

U.

S.

DEPT.

OF

105.93

105.32

87.16

86.72

85.57

40.5

—

$97.36

106.86

40.4

40.6

40.9
39.6

; 41.3

$2.41

$2.38

41.1

,

39.8

/,/

$2.42

z*nc

not

available.

2.19 {

OF

STEEL

Month

CEMENT
of

November:

_:r.1

(per

2.55

i/v

2.15

/. //•

'

478,492

323,631

373,376

281,616

315,116

295,699

£25,725,000

£19,102,000

33,926,000
36,250,000
29,901,000

27,625,000

87

77

£41,154,000

-

(BUREAU OF MINES)—

'v."

29,339,000

(barrels)

used

2.19

IN

Shipments from mills (barrels)
Stocks at end 6f month (barrels)
Capacity

/

STEEL CONSTRUC¬

December:

(tonnage)—estimated
(tonnage)—estimated
ISSUES

39.8

(AMERI¬

closed

Production

'

2.59

2.60

GREAT BRITAIN
MIDLAND BANK LTD.—Month of December

..

$96.63

$98.01

?—

STRUCTURAL

TION)—Month of

PORTLAND

400.9
,

December:

goods—
goods—

CAPITAL

401.8

(

AND HOURS—WEEKLY

,

CAN INSTITUTE

NEW

108,656

17,181,000

7,317,000

manufacturing

FABRICATED

16,304,310

.

„

,

;

'

100,740
695,642

16,395,000

16,374,000

Nondurable

0/!A

Shipments

i

products

Processed

-

ee«

ft'v"//.'
.

1,794,720

11,719,825

19,518,000

—

ESTIMATE

'

684,095

667,192
1,418,984

13,073,648

■;'.I

manufacturing

Contracts

'

Farm

1,256,710
23,265,700
24,522,410

456,070
14,337,110
14,793.180

726,010
17,569.720
18,295,730

4

Jan.

,

13,995,754

COMMERCE):

goods

Durable
•

U. S. DEPT. OF

Group—

105.0

112.4

728,850

goods
Nondurable goods

v

—Jan.

—

105.6

Hourly earnings—

Jan.

WHOLESALE PRICES, NEW SERIES

108.1

112.7

16,374,000

—

Durable

;

„

Other sales————
Total sales

104.8

109.5

98,831

December——

Nondurable goods

'
.

106.9

105.9
-

589,881
1,498,003

Weekly earnings—
All manufacturing

$90,258,217

730,720

(SHARES):

MEMBERS

114.9

106.8

"

14,374,133

29

'

Total round-lot sales—

116.0

14,620,525

:—

of

(DEPT.

LABOR—Month of

,

312,830

.

115.4

BALES:

month

active

SPINNING

AVERAGE

1,668,190

$95,667,969

749,390

-——

4

4

106.9

COMMERCE):

OF

bales

29

FACTORY EARNINGS

cc01Qq

22,640

-

$61,790,907

730,720

4

101.0

108.1

105.6

of Dec.

storage as

December

..,,M

4

101.6

—

Spinning spindles in place on Dec. 29——
Spinning spindles active on Dec. 29
Active spindle hours (000's omitted) Dec. 29
Active spindle hours for spindles in place

.

2,090,219

1,657,284
„

___

.;,/'

..

.

*>582,008

_

$71,040,982

—Jan,04

—

„

$75,329,790

'

1,620,489
9,315

4

Jan.

—

—

sales

.

^

lOMnk

1,046,649
$46,052,825

1,327,453

J—-Jan.

;

108.6

LINTERS—DEPARTMENT OF

AND

public

Cotton

,

■'

4

(DEPT.

running

16

Linters—Consumed

•

Jan.

-

—

Customers'

1

,r

COMMISSION

EXCHANGE

Odd-lot purchases by dealers (customers' sales)—
Number of orders—customers' total sales
Customers'

1

(customers' purchases)—t

shares.^—L-——1-

of

,

,

102.4

109.6

110.1

——

——

recreation
and services

and

Stocks—December

4,252,826

5,315,294

J
s.

104.0

107.1

—

—

COMMERCE—RUNNING

-901,200
K'tit'oof

ODD-

STOCK

103.3

104.2

102.5

115.0

■

In

COTTON

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OI

103.7

107.7

—

Consumed,
month
of
December
consuming establishments as of Dec. 29—

988,576

5,290,880

2,529.580

care

GINNING

January

orq'r7«
,

Vriq

,,356,970
2'concJn

3,557,456
4,133,496

sales

106.4
;

108.3
-—

——

goods

COTTON

^

3,069,368

3,529,469
576,040

Jan.

—

,

_

-

Jan.' 4
Jan.;4

sales

sales.——

104.9

101.1

—

——

Reading

nunoa

U75,540

—

Short

528,260

--

854,888

Total round-lot transactions for account of members—
Total purchases
—

Other

8£i'38R

917,919

;

'

99.3

98.8
107.6

109.7

Persdnal care,——
Other

4

——————

«n.lp58

;■ Medical

39?S

—-—Jan.

——

102.1

104.3
,

——

Public

oqa oqa

609,880

„

-

—

107.8

104.3

——i—,——_—.

and girls'

Private

2,402,110
2,735,990

622,040

13,600
220,210
233,810

—Jan.

;
on

104.9

108.0

107.8

—

apparel—.^
Transportation

2,397,580
loo iin

rt .n

___

350,420

—

sales

Other transactions initiated
Total purchases-

Total

4

——Jan.

—

—

186.1
102.4

98.7

—

Other

o

2,677,820
3,331,720

,nn

———

sales—1—-------

Other
Total

off

-

«

1,389,040
1,650,710

2,209,620
2,615,540

sales—----------------Jan., 4

transactions

3,493,300
eES'Ion

1,864,060
261,6T2

2,178,010
405,920

4

Other

•

.

4

sales-—-'————--Jan.

104.2

108.1

Footwear

Other

105.0

■

Women's
atanunn

Short

99.3

108.9

103.6

———

———-i-———

—;

98.4

98.1
111.8

106.2

electricity
fuels and fuel oil

Men's and ;boys'__—

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists In; stbeks in which registered—

>

/

105.5

105.1

/■

——

Housefurnishlngs

117.67

123.46

98.5

104.3

102.0

111.9

1958=100)

Household operation
■

104.1

97.2

from home (Jan.,

and

Gas

Solid

•

106.3

104.2

Rent

'

100.5

108.0

102.1

-

vegetables—

Other food at home—
away

101.9

102.9

103.5

—

104.3

108.4

—i,—

—

and

and

104.6

106.0

104.1

102.6

:

Food

'v,

MEM-

106.0

———,w—-; :

Fruits

117

.c

„

—

NEW YORK—

OF

bakery products
Meats, poultry and fish
Dairy products _J——

333'6q?

361,907

.

w;

INDEX —1957-59=100—

home,—

at

Cereal

tin ^3

An

123.49

124.06

28

tons),^4D

(net

—

Food

323,390

on?

350,697

94

(000's omitted)—

PRICE

items

Food

393 390

' kai

_

30

27

.

Month of November:

4.57

288,610

355,178

.

PAPER; OUTSTANDING—FED¬

As of December 31

CONSUMER

Tri

1

o«R«m

3£5.234

$0$$$

'

—

(net tons)i————•

ERAL RESERVE BOARD

373.6

374.9

;

To

«.bi

4.70
4.37
4.37

49

Not Avail.

(BUREAU OF MINES)—

Asia

4.74
5.06

4.93

^

,

,

73

30

November:

of

COMMERCIAL

4.41

4.90

.

Jan. 25

OF

4.52

82

—

To

4.55

4.46

-

122

51

...

To.. Europe {net' tons)*j.,-,ta*.i»-ui—•
To South America (net tons)——

d

; j
v

79
490

, -

so
dY

v

/ -4.22
, 4.37

4.91
4.71
4.38
,4.37

-

A

—

4.46

v

Jan. 19
—Jan. 19
—Jan. 19
Jan; 19

—

-

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
ROUND-LOT

■

ncco,.

(tons)

Percentage

.

83.40
87.32
87.86

r

3.72
/'oi

/r ■/<

4.20;^; ; /

,

(tons)

Production

0

4.36

>k

4.36

Jan. 29

-

INDEX

PAPERBOARD

,

^

—Jan. 29
Jan. 29
Jan. 29

-

—

COMMODITY

/

•

■>.

Jan. 29

——

Utilities

MOODY'S

3.71
4.48
4.21

.Jan. 29

—

90.34
90.20

„

Jan. 29
-—-Jan. 29

corporate

1——

Aa

:

41

Avail.*
133

:

—

To North and Central America

9U.Ub
88.13
85.59
81.29

92.79

85.98
90.48
90.63

'

Jan. 29_.y.

U. S. Government Bonds
Average

.

Not

-

U, S, exports of Pennsylvania anthracite
(net' / tons

85.92

88.67

46

53^:

development
other public,—

Month

30

46

__

COAL EXPORTS

36
238

Not Avail.

enterprises

All

391

/

.33

.

systems——
——L—

service

70

234

■

buildings

Sewer

17

1,314
W 80

::

Not Avail, /

—1

Conservation and

120 125c

78
349

399

;

——

———■

24 000c

111.250c

.

buildings

12 000c

117'nnnr

77

1,404

water

and

Public

427

24

; Water

9.800c

89.09

Jan. 29 I'

GroupGroup

Sewer

25

97

446
369

:j

Military facilities—
Highways / / LAJAjAAAaAA-

9 800c

90.12

-

Utilities

MOODY'S

Baa

c

90.21

-

Public

A

12.000c

'

'

89.09

-

—

t Aaa

^.000c

onnn

-Jan. 29

—

-

•

Railroad

/

9.800c

——Jan. 29

i—

—T4*~-

Baa

■

Q

Jan. 29

Aaa
A

10.500c

10.300c

/

AVERAGES: '

DAILY

PRICES

i

-

U. S. Government Bonds——

Average
Aa

Jan. 25
Jan. 25
——Jan. 25
Jan. 25
——Jan. 25

_

28.450c

28.500c
10.500c
10.300c
12.000c
11.500c
22.500c >,
111.500c

_Jan. 25

;

Louis)

30.600c
28.100c

30.600c
28.475c

30.600c

30.600c

Jan. 25
Jan. 25

_____

•,

telegraph

Other nonresidential
"

.

21

;

———

and institutional
Administrative and service

QUOTATIONS):

57

98

;

———;

Educational

52

70

56

Hospital

$37 50

*9583

$27.17

$27.17

:

85

79

•

buildings

Industrial

6 196c

A Ah 85

—

construction

Nonresidential
6 196c

R1Qfi_

C1Q_

6 196c

—-Jan. 21
Jan. 21
_Jan. 21

.

143

286

321

Jan. 24

289

private

Residential

~Rq

—

.

ooc

w

ton).

M. J.

&

&

-

-

gross

(E.

DUN

—

PRICES:

lb.)—ton)

(per

(per

Scrap steel
METAL

INC.

COMPOSITE

Finished

INDUSTRIAL)

AND

;

195

203

293

7

.

utilities Z—————

other

398

239

189

Other public utilities—

iKfiRfiOOO

1(;^nnn

18,110,000

mi 428

v/

institutional

Telephone and
,„,nAAA«

C

:

221

52

and

construction

Public

98

908

243

;

Miscellaneous
Farm

'

1,896

964

Educational

95

,1

/

18,321,000

Jan. 26

366

4,659

107

Social and recreational

A—

:

~

kwh.)

000

213,400,000
3,100,000

W

RESERVE

—

^

INSTITUTE:

(in

output

345,700,000
13,400,000

Jan. 24

-

INDEX—FEDERAL

SALES

302,300,000

24

1.432

,

buildings and warehouses
Stores, restaurants, and garages
Other nonresidential buildings
Religious

miwoo
^.SOO.OOO

216,500,000

-

;

alterations

Office

43R9 Qnn OOO

sAomo

359,100,000

and

'

Commercial—j__

411,000

onr, nnn

annc

AAA

362,900,000

Jan. 24

state7nd_MunicTPri::::::::::::::::::--::::::::::::jan.
STORE

'411000

402,000

X:!44 *m?oW

"

Federal

8 540 000

,3,345

371

buildings (nonfarm)
New housing unitsi—

Nonhousekeeping :
Nonresidential buildings
/ Industrial

ENGINEERING

P?lva?evan,:e plannlng by ownership"

DEPARTMENT

nno

4,927
3,523
•1,991
1,513

construction

Additions

,

4n?'fifiO

419,000

339,000

487 492

,

q

a?o'nnn

8,5on'nnn

SERIES:

Public

51 ,0

7

■'

coo ,,,

,19nw

—"

—

nnA

cnc

o

Jan. 19
Jan. 19

—

PLANNING

ADVANCE

RECORD—NEW

-

(tons)

...

521,515
462,048

501.J57
478,j61

Jan. 19
cars)—Jan. 19

BUREAU OF MINES):

S.
and

anthracite

CONSTRUCTION
T

...

freight loaded (number of cars)
freight received from connections (no. of

Revenue
COAL

AMERICAN RAILROADS:

OF

148,120

INSTITUTE—

Residential

ASSOCIATION

185,190

152,852

THE FEDERAL RESERVE SYSTEM—Month

^4,805,000

82,048,000

Month

cars delivered

of December

129,376,000

at

of that date:

Previous

(short tons) end of Nov.

freight

new

of

(end

IBa.JUO.UUV

—J«n. 18

)'

(bbls

are as

of December:

of

freight
Backlog of

irq 305 000

iR9 RM nnn

nnn

191,782,000

Orders

—Jan. 18
rhhlVrn?

(bbls )

oils

1Q1

either for the

are

MINES)—

tons)—Month

New

27,898,000

",940,000
6,138,000.

5,722,000

194,418,000

transit, in pipe lines

at

1

at

nil

Residual fuel oil

Unfinished

Ihbls

6,293,000

Jan. 18

Residual fuel oil output (bbls.)__
Stocks at refineries, bulk terminals, in

OF

RAILWAY

Month

7,405,010

3°'8°8'™°

3,752,000

3,568,000

__Jan.18

fbbls )

mitnut

Kernspnp

—

_______

of quotations,

primary aluminum in "£he U. S.

Stocks of aluminum

27 898 000

i<;,047,000

(bbls.)

output

—;

of

short

(in

128.3

go'eofiOOO

8.574,000
3°'™,000

Gasoline

Production

7i340lUO
_8.611.000

average

cases

(BUREAU

AMERICAN

Jan. 18

stifls—daily

to

runs

ALUMINUM

„

100.6;

'?'La.nll7deasate "Ute"*—aa"y average (bbls.

Crude

in

or,

Latest
nnn

2,390,000

INSTITUTES

AMERICAN PETROLEUM

that date,

Month

olSnnn

1,874,000

1,515,000

on

57

production and other figures for the

cover

Dates shown in first column

Year

Month
i

1,863,000

•

tabulations

month available.

or

month ended

or

Previous

Latest

i

—-Jah« 25

1957-1959„l«V

for

week

STEEL INSTITUTE:

IRON AND

Ingots and castings (net. tons)-—
of production based on average weekly

Steel

latest week

Activity/

Business

(513)

cent)

27,103,000
31,894,000
78

25,446,000

30,382,000

58

The Commercial and Financial Chronicle

(514)

Forgan

TAX-EXEMPT BOND MARKET
buyers
at

well

as

Hattier

6

Continued from page

large.

The

,

sched*

tentatively

and

scheduled

Co.,

3.064%

a

made by

in

Other

1979,

reception

good

a

&

af¬

with

bonds

these

forded

the account headed
'

include

group...

the

of

Laden¬

One
the

annual

general

nues
were

in

Roosevelt

&

the

Braunr Bos-:

Cross,

.

report

.

Thursday, January 31, 1963

the

exemplifies

the

19.8%

1961

reve¬

Toll

Road

higher in

,

1962

than

individual

the

although

this

Toll

Indiana

count

1962 net

in

betterment

of investment.

for

Co.j Shearson, Hammill & Co., vehicle

worth
Co^ Inc., Tucker, An*
uied issues- now totals something present balance $450,000. The 1980
:thony ,& R. L. Day, The ^Illinois
to 1983 bonds were sold privately
less
than£ $325,000,000, £ In "the
Co., Mullaney, Wells & Co, Rod¬
and the 1984 maturity carried a
sphere of negotiated issues the
man & Renshaw, Townsend, Dabcalendar is apparently unchanged. 1% coupon at a 4.10% yield.
ney\: &
Tyson -r and -v Cherokee
with about $220,000,000 set for of¬
/
:
i~
New York City Sale Was Present Securities Co.
fering in February. This category
Scaled to yield from 1.90% in
Week's Feature
involves
$189,000,000 New York
1966 to 3.20% in 1990, the group
Monday of this week was an¬
State
Housing
Finance
Agency
other quiet day, with no sales of reports an unsold balance of about
bonds, $100,000,000 Triboro Bridge
The
1991
maturity
note, but Tuesday was a very $2,270,000.
and Tunnel bonds and $30,000,000
carried a one-tenth of 1% coupon
active day with five issues of gen¬
;BiV State Development Agency
and was sold pre-sale.
eral market importance on the

reaffirm

authorities

sphere

■

members

these

.

steady improvement being made.

cost,

burg, Thalmann & Co., Wertheim

in

was

runner-up

interest

net

major

Co.

to 3.50%

1963

interest

net

a

The

by John Nuveen & Co.

Glas

Inc.,

Co.,

Hutton &

F.

E.

2.00%

from

of

calendar

issue

new

Investment

Crane

at

3.052%.

and
winning
Dorsey & Co. Reoffered to yield

Market

Favor Tax-Exempt

Barrow,

Leary & Co., Ladd Dinkins & Co.,
&

Technical Factors Continue to
....

Inc.,

bid,

Co,

&

of

was

citizenry

the

as

Sanford

&

cost

.

down 0.5%; The

was

1.28% times interest

was

requirements

.in

1.01%

against

of

point. Some of the improve¬

a

shows

ment

up

follows:

as

Calumet Skyway 3%s at 71

bid

up

one;

at

10814

4%s

Florida
bid

Turnpike
one-half;

up

Illinois Toll Road 3%s at 98%

five-eighths;,: Indiana

up

3V2S

Road

at

bid

90

five-

up

' bid

86 V4

1 !4;

up

Bridge. 4s

Mackinac

102bid

at

opments in the past year was the

up

one;

increased truck count despite the

95

bid

slightly lower total vehicle count.

Turnpike 4%s at 107 bid
half

Turnpike 4s

at

up

and

^one-half;

Port

of

Oklahoma

New

continue

We

bid

102%

Tri-Dam Project 3.05s at

thority 3%s at 98 bid

Outpace General Market

one;

up

Maine

Dollar Quoted Bonds Should!

bid

'Toll

eighths; Kansas Turnpike 3%s at

1961. One of the favorable devel¬

,

Chi¬

cago

to

up one-

York

Au-

one-half.

up

believe

that

;

Transit

(Missouri-Illinois)

reve¬

schedule

This

bonds.

nue

fi¬

of

nancing certainly poses no threat
to the

present bond market level.

More

remotely,

$150,000,000

the

State of Illinois offering scheduled
for March 12 remains as the most

notable

street's

The

able

to

with

inventory situation

be

and

The

to be

the

to

best

bid

Revenue

City various purpose (1964-

$108,200,000

1993) bonds setting

New

annual net interest cost, was

by the First National

im¬

Bank New York Trust Co., Manu¬

The

no

facturers

Hanover

municipal Lehman

Trust

Blyth

Brothers,

last week.s The
resented

Co.

Nuveen

by the

with Halsey,

sold

curities

issues which

new

at

competitive bidding this
week
totaled a-r"moderate

past

$204,852,000,

which"

of

half

over

involved

the New York City fi¬

nancing.

As

continued

the

noted,

to

be

bidding

extremely com¬

petitive.
Last

&

&

Co.,

Northern

Trust

&

Weeks,

&

Co.,

Co.,

R.

Dickson

S.

was

quiet day,

a

Ladenburg,

in

$9,600,000 County

Co., A. G. Becker & Co., Inc.,

Co.,

the

Co.,

William

group

managed by The Northern

Inc.

and

Trust

Co.

Bank

bid

(1966-1995)

of

on

interest

cost

Scaled

The

3.155%.

cost,

second

best

3.50%

made by the First

was

submitted

for

additional

this

popular

bids

bond

issue.

to

major

members

$47,775,000.

Bank

and

Ingen &
Bank

Co.,

Trust

Co.,

B.

J.

Los

&

Angeles,

A.

G.

Co., Inc., Wm. Blair &

The

Illinois

Whipple

&

Co.,

Co.,

Bacon,

City

National

Bank and Trust Co., Kansas City,
The
Milwaukee Co. and G. H.
Walker
from

&

Co.

2.00%

Scaled

in

1966

to

to

yield

3.40%

in

1993, initial investor demand has
been

moderate

balance
The

in

1994

carried
and

with

at

Road

syndicate
of

coupon

pre-sale.

2.871%
made

No.

1,

sold

ditional

the

for

bids

from

cost

this

interest

cost,

Chase

was

won

over

the second

net interest

bid,

cost, which

by Phelps, Fenn &

bid

members

the

of

Bank

and

National

public

National

Trust

success¬

cago,

'Bank,

National

Co.,

Bank,

Boulevard /

3.401%

a

was

Co.

Re¬

Dallas,

St.

Louis,

Trust

Bank,

Shawmut

Co.,

as¬

J,;

Associated with Scharff & Clones
as

major underwriters

table

Securities

'

are

Corp.,

Equi¬

Merrill

Lynch, Pierce, Fenner & Smith,




Canfield, Vice-President of Wisconsin Power & Light

accepted the award

on

behalf of the

company

President Earl L. Hagensieker, of Reiriholdt

from

& Gardner,

Mr. Hagensieker cited the coftipan/ and its Hrlsident Carl J.
Forsberg and Public* InfoVhiation Director Willard S. Johnson for
annual

Acquired

and

shareholder

on

Tues¬

The

£
the;

split between two groups.

interim

reports to shareholders and its

meetings

which have been

a

in

the

means

company's

14

program

operating

of

districts

of informing and establishing personal

contacts between management and thousands of individual share¬

holders.
INVESTMENT TRADERS ASSOCIATION OF PHILADELPHIA

The Investment Traders Association of

Philadelphia has announced

$5,775,000 Metropolitan Sew¬ I that the annual bowling tournament with the
(1964-1984)

erage

bonds

the Northern

by

won

First National

at

Milwau¬

$9,175,000

Expressway bonds, with

award

were

Trust Co.,

Security Traders

Association of New York will be held Feb. 20 at the Pennsylvania

Lanes, instead of the 30th Street Alleys

as

previously reported.

City Bank account

2.588% net interest cost bid.

a

bid,

runner-up

figuring

PITTSBURGH SECURITIES TRADERS ASSOCIATION

a

2.61% net interest cost, was made

syndicate

Other

headed

Guaranty

major

jointly

Trust

members

account

Manhattan

Co.

of : the

include

Chase

Bank, Harris Trust &

Savings Bank, Bankers Trust Co.,

National
The

Bank,

bonds

1985.

The

Chi¬

Atlanta.

were

W.

Pressprich

Weld &

reoffered

present
sold

Co.,

White,

Seattle First National Bank.
John W. Hoy, Jr.

Scaled

to

yield from 1.60%

Fenn

syndicate headed by Phelps,

President—John W. Hoy, Jr., Parrish & Co.^iJ",

Vice-President—Frederick C. Leech, Arthurs, Lestrange & Co.
Treasurer-—Robert A. Woeber, Arthurs, Lestrange & Co.

bidder

for

County
bonds
net

Co.,

balance

$3,400,000

Expressway

on

its

bid

interest

backed up
est

a

Milwaukee;
a

This

2.744%

bid

was

net inter¬
made

was

by

Trust Co.-First Na¬

City Bank account.

Other

members

to

is

ma¬

rities
Fr. S.

of

Illinois
well

and

of the

winning

of

Lincoln

John L. Emery, Simpson, Emery & Company, Inc.; Robert C, Wetmore,

Dean Witter

&

ST. PETERSBURG STOCK AND BOND CLUB

At the annual election of officers of the St. Petersburg Stock and
Bond Club, held Jan. 15, the following new officers were elected:
President: Derwin B. Smith, Walston & Co. Inc.

yield from

& Smith

1.60%

ooo.

to

£:'v'

,:

Secretary: Walter S. MacConnie, Merrill Lynch, Pierce, Fenner

Moseley & Co., Reynolds &
to

£

Vice-President: Clifford U. Sadler, Davidson, Vink, Sadler, Inc.

Co.,

Co., and Paribas Corp.
Scaled

McJunkin, Patton & Co.; John C. Loos, Walston & Co., Inc.;

Paul Truman, Stroud & Company, Incorporated.

Curtis, Equitable Secu¬

Corp.,

pre-sale.

home

Secretary-^Thomas H. Davies, Jr., McKelvey & Company.
Directors—Roy M. Hamsher, Cunningham, Schmertz & Co., Inc.;

(1964- 1983)

2.75%

which

the Northern

successful

setting

cost.

by

cost. bid

tional

the

was

for a
2.95%
2%% coupon, the
Springfield, Illinois, the capital present balance is about
$1,865,as

Robert A. Woeber

Frederick C. Leech

tol

&

The

Jackson &
were

&

Co., Wertheim & Co., and

syndicate include Paine, Webber,

v

$2,795,000. The 1986 and 1987
turities

R.

Bank,

Boston and Citizens and Southern

made

and

sociates.

NSTA

Chicago

lowing officers for 1963:

syndicate include Mellon Na¬

National

barely

/; John E.

Company

the

285,000.

highly regarded offering.

Other

(1964-1983)

This

shareholder relations, at the annual dinner of
Security Traders Association at the Drake Hotel.

County, Wisconsin Sewerage

and'

made

in

3.399%.

for

2.75%,; the present balance is $3,-

yield from 1.60% in 1964 to 3.00%

of

Company was the recipient of the
Association 1962 annual corporate award

interest

Scharff & Jones at
cost

The Wisconsin Power & Light

National Security Traders

The Pittsburgh Securities Traders Association has elected the fol¬

2.93%

issue

net interest

NATIONAL SECURITY TRADERS ASSOCIATION AWARD

ten ad¬

were

to

a

Manhattan

ranging in

2.88%

cost

bid,

bonds to the syndicate headed
by
a

and

coupon

yield.

kee

winning

Sani¬

runner-up

interest

net

by

net

Philadelphia

$3,000,000

Improvement

a

The

Fidelity

bidding. Jefferson

ac¬

involved

members

Water and

day,

quiet

NOTHS

reof¬ and Halsey, Stuart & Co. Inc.

North Carolina

Bank account. There

First

important

one

at

2.867%.

tional

a

the

NSTA

(1964-1987) bonds to Continental Illinois National Bank
Wachovia Bank & Trust Co. and Trust Co., Kuhn, Loeb & Co.,

the

present

(Gretna), Louisiana, Road

District

$6,600,000

ful

public

Parish

sold

maturities

also

of

1%

a

Another sale of note

the

one

balance irt

County's

Morgan

being

1991, initial
been fair

has

day

by

presently

?

market.

tary Sewer

$3,760,000.

was

account

bond

better

tax-exempt

Co.,

&

By Two Accounts

«

The

However,

Winston Salem,

1995

sold

only

sold

the

one-tenth of 1%

a

Was

from the account balance.

account

and

were

Friday

with

Milwaukee

by

by ¥

in

sold at'4.00%

was

,

Van

Dallas, United California

of

3%

and

.demand

National

Co., Inc., First National

Bank in

Becker

Mellon

2.80%

to

three-quarters

general

revenue

relatively

$3,445,000. The 1991

maturity bears

$20,-

are

away

3.50%

demand

of the short bonds taken

000,000
fered

Corp.,

2.70%,

Corp.

1.65%

The present balance in

is

winning group include The First
Boston

from

Co.,

&

American

investor

to

count ' about

Trust

moderate for these bonds,

the

of

Pollock

yield

for

down

Other

E.

Swiss

coupons,

Chicago account.-

five

were

3.167% net in¬

a

National Bank of

There

to

net

a

bid, designating
terest

bonds

and

Bank and Trust

Federation

1965

investor

Dallas, Paribas

Corp., Weeden & Co., Inc., Bache
&

awarded

in

Co., Los Angeles, First

The Connecticut

Park

Hall-

Co., Inc., The First Western Bank
and Trust

docket. Harris County
Texas

Thalmann
Co.,

&

garten & Co., B. J. Van Ingen &

with only one notable sale on the

(Houston)-,

Sachs

with the present
Hornblower

Co.,

Wertheim

National Bank

Thursday

Goldman,

Co., Bear, Stearns & Co., The

than

do

the

rep¬

gain

other

and

will

Stuart

area

Recent Awards

bridge

issues

underwriters

,

The volume of

toll

syndicate.

& Co., First of Michigan Corp.,
of Lazard Freres & Co., Barr Bros.
.Cooley & Co. and Moore, Leonard
$500,000,000 for some time. The & Co., R. W. Pressprich & Co.,
Merrill Lynch, Pierce, Fenner & & Lynch>
Jan. 30 total was $519,309,000.
Reoffered to yield from 1.85%
Smith, Eastman Dillon, Union Se¬

offerings has been in the

dollar

about

at

against 3.54%

as

of

cost

Hemphill, Noyes & Co., Ira Haupt

Co.,

is

out

averages

Blyth & Co., Goldman, Sachs

are

&

Co.,

&

interest

& Co., Inc. as major

winning group include Chemical

Index

bond 'most of the closed end toll road;

revenue

successful

the

was
net

a

Associated

the

of

at

net interest cost, was made

City Bank

members

yield

3.508% this' week

3.282%. The second bid, a 3.29%
John

major

Inc.

Co.,

bidder

made

The Ghwnicle'sl

by Halsey, Stuart

&

and associates.

The

on

account headed

interest cost of 2.934%. The com¬

■

Tuesday. The

public bidding

annual net

an

Fla.
Franchise
Tax
(1965-1992) bonds up for

.•

$5,000,000

put

the

ap¬

market.

List of state and

Blue

for

The City of St. Petersburg,

Chase

submitted

York

along

carry

presently

parent float seems

pediment

dealers

more

able to

bonds.

more

relatively favor¬

more

willing and

Bank

Manhattan

peting bid for this issue, a 2.985%

underwriting.

continues

calendar. The group led by

■

Incorporated.

Treasurer:

Lemuel

-

T

Scarbrough, Thomson &

Directors: Albert Roberts, III, Goodbody &
C.

McKinnon, Inc.

Co., and Frederic

Beil, Jr., Goodbody & Co.
John

F.

Gallagher, outgoing President, will also

infrequent borrower,
The
dollar quoted long term
awarded $6,000,000 Electric reve¬ toll
road, toll bridge, public util¬
nue
(1966-1991)
bonds
to the ity and other revenue issues have
group headed jointly by Halsey, done well "over the
past week.

Installation of Officers will be held at the Suwanee
Hotel,
February 16 at the customary Installation of Officers Dinner Dance

Stuart

and Cocktail

as an

&

Co.,

Inc.

and

Glare,

Revenue

reports

from

most

of

serve

as

a

director.

Party.

Volume

197

Number 6234

.

Commercial and Financial Chronicle
The

.

.

nual report of the Council of Eco¬

Purchasers of the

Institute,

nomic Advisers

\

New York 22,

of

Ownership-breakdown of $250 million experimental

D,

Treasury com¬

Superintendent

—

Documents, U. S. Government

Printing

$250 Million Treasury Issue

" '

-■

..

,

(515)

C.

Office,

Washington

25,

(paper),

announced the initial distribution, by

(

Electric

Insti¬

17, N. Y. (paper).

of 4% Treasury Bonds of
sold at competitive bidding on Jan. 8,1963. The

bidder

successful

was

Evaluation

Federal Fiscal Policy in the
war

Recessions—Wilfred 1

'

Jr.—The

"
(millions

Investor .Class

Insurance companies.

State

and

local

Post¬

Lewis,

and

52

21%

purchasers

109

Financial

retire-

lytical

ment funds...

77

47

19

Commercial banks......

47

19

159

Dealers arid brokers....

39

16

124

Mutual

,

17

7

44

10

4

105

9

3

27

7

3

22

savings banks.

trust

accounts...

State

local

and

other than pension and

Corporations
insurance

other

than

5

.....

,

.

17

.

%
-

Details

250

do not add

to

totals

because

Model

The

Changes since

Arnold

W.

Lind¬ National

a

Bureau

Sametz—An Economic

conference of intendent

Committee

Research,

Exchange

ing—Dr. Paul B. Trescott—Amer¬

the

DIVIDEND

...

Book—Health

DIVIDEND

is.

Income

Jay

Tax

Lasser-rArco

Guide- Fifth

Chemists*

New York

Aspects

of

Conference

National

Labor
of

Bureau

Economic R

Economics—A
Universities-

the

Committee

e s ear c

for

;(cloth), $7.50..

\

Irisurance

ulation—Frederick

Rate

G..? Crane—A




1,

'/'V'

l

N",' \

<

'

;y

&

.

J.

,

holders of record

27Yz4

J. Ley,

080 MidisoV Ave.,

on

January
of

March
at

of

Board

dend

New York 21, N. Y.
of

Directors

23,

this

declared

1963,

Company

FUEL

ANO

20,

the

1963

close

to

of

stockholders of record
on
February 11,

CUMULATIVE

STOCK

A

PREFERRED

Company,

dend of 50 cents

S

has

8

Common Stock of Southern

—

of

$1.12H

cents

oer

250 Stuart St.,

as

1,

4.5%
DIVIDEND

:

1955

A regular dividend of Thirty-seven and

•

; :

.

j J. R. Wateriiouse
■

Treasurer

31

regular quarterly dividend of
$1,125 per share on the 4.5%
Preferred Stock and
1955 Series
Preferred Stock, payable March
1963 to shareholders of record
the

close

15,

ruary

1958
«

NO.

The

of

ot

business

Feb¬

PREFERRED
NO.

18

quarterly dividend of
share on the 1958

Der

Series

January 29, 1963

Preferred
Stock,
pavable
March 1, 1963, to shareholders of

i record

as

able

8

stockholders of record at the
close of business on February

•

28,1963.

S

j

W. S. TARVER.

|

Secretary
Datedr January 26, 1963.

•

'

I

of the

ion February 15

close

j

j

'

•
I.

;■■■

m

Symbol is EFU.

1

EQUITABLE

The United Gas

A

GAS COMPANY

Improvement

CONSECUTIVE QUARTERLY
DIVIDEND TO MORE THAN

14,000 SHAREHOLDERS
At a

meeting held January 23,1963,

the

Board

of

Directors declared

quarterly dividends of $1.09 per
on the 4.36% Convertible Pre-.
ferred Stock, $1.40 per share on
the 5.60% Preferred Stock and 4614
cents per share on the Common
Stock, payable March 1, 1963, to
share

SERIES

reaular

$1.34375

on

1,
as

1963.

DIVIDEND

The

8

Company

W TO PAY 52ND

48

PREFERRED

SERIES

& DIVIDEND

the

28

ot business on

NC.

on

Com¬

1963.
PREFERRED

DIVIDEND

share

per

declared

Natural Gas Company, payMarch 14, 1963 to

•

8

Boston 16, Mass.

Our stock- is listed'on the

February

pavable

share,

ot the close

February

Officer

January 17,1963

1963, to shareholders of rec¬

ord

of the Board

and Chief Executive

Inc.,

amount ot

the

In

Stock

P. TIBOLT

been

New York Stock Exchange.

A auarteriy dividend oh- the

February 8, 1963. Checks will

A regular quarlerly divi-

:
■

[ COMMON DIVIDEND NO. 86 ;

15,

:

I

regular quarterly
a
share,

:

Directors of Central

Electric

Louisiana

i

be mailed.

:

.'.I-\;• ;'%<* */"?!■ ;v'Ip ;1 •11J"S- *
Common Stock Dividend No. 96

8

414%

Secretary

.

Board of

mon

fr'm

6AS

payable April 1, 1963 to share¬
holders of record February 20,

;

business

FERTILIZERS

•

Birmingham, Alabama

•

business

dividend

'The

the close of

service:

IIICOMPANY
8

has declared:

at

of

CHEMICALS

•

i NATURAL

ASSOCIATES

Chairman

record

Gro wing in these

-

stock divi¬

a

NOTICE
CENTRAL LOUISIANA i
ELECTRIC COMPANY, INC.

stockholders of

Treasurer

t,

1- v.:-'

SOUTH CRN

per cent on the $5 par value
stock
of
the
Company
payable

DIVIDEND

Company,

January 24, 1963.

WITH ESSENTIAL BASIC PRODUCTS

R.

March 1, 1963, to

PAUL C. JAMESON

rWM';,

major areas

1963>

on

February. 11,
(woks will not

*

.

UALITY

of The American Tobacco

on

transfer

close.1 <

one

..

payable in cash

record

pi*

share

Stock,

1963, to stock¬

METALS

HAZEL T. BOWERS,

been declared upon the Common Stock

of

1963.

1,

i

VICE-PRES. ft TREAS.

1963.

share has

March

PLASTICS

CITY INVESTING COMPANY

common

per

on

declared
per

Common

outstanding

EASTERN

The

(37V^^)

the

•GAS^^;<^

NOTICE

One-half Cents

has

quarterly dividend of 30<

holders

Id

NOTICE

Directors

W. J, ROSE, Secretary

1963, together with the An¬

; 230TH COMMON

of

HOME AND INDUSTRY

SERVING

Transmitted to the-Congress Jan¬

^ms/iuzo/r^

Board

LIQUORS

the close of busi¬

at

January 30,1963,

.M

DIVIDEND
The
a

January 21,1963

February 8, 1963.

ness

Pa.

•

DIVIDEND

274

22Vi$

D.

•.

A rooular quarterly dividend of'
I"\ Twenty-seven cents (27c) per
share on the Common Capital Stock of
the Company, issued and outstanding in
the hands of the public, has been de¬
clared payable March 9, 1963, to the

(paper).

uary

25tf

Common

Economic Report of the. President

Reg¬

25f.
.

5.40% Convertible Preferred

Common Stock

•

925 Chestnut

Philadelphia

corporation!

on

v,V > .
5% Convertible Preferred

212th Consecutive Cash Dividend

Bank

NOTICES

and

share:

Wz% Convertible Preferred

1825

Dollar—Clay

of Philadelphia,

h—Princeton Street,

University Press, Princeton, N. J.
Automobile

the

Anderson—Federal Reserve

Princeton,

chemical

COMPANY!

it

Avenue, Washington

Defending

University,

payable

9, D. C. (paper).

17, N. Y. (paper), $1.

S.

U.

g

distillers

5% Preferred

POWER COMPANY, Inc.

Inc.,

n

(paper), $1.
DIVIDEND

have been declared at the following

'

AEP

Fact

Association,

Connecticut

N. J.

CALIFORNIA-PACIFIC!

rates per

on

Publishing

t i

n

for Reform of the Interna¬

Princeton

NOTICES

Re¬

BookEditio n—Manufacturing

Company, 480 Lexington Avenue,

i

Monetary
System — Fritz
Machlup — International Finance
Section, Department of Economics,

to shareholders of record March 1,

Ohio (cloth), $5.
Industry

r

NOTICES

Insurance

AMERICAN ELECTRIC

search, The Ohio State University,
bus 10,

Documents,
P

tional

Quarterly dividends payable March 15

insurance

Business

of

Balance

; national

Data—1962

Insurance

governmental reg¬

rates—Bureau

Chemical

1963

5750 Plans

$4.50.

automobile

a n y,

Office,
$1.75—Uni¬ Washington 25, D, C. (paper), 650.

Street, New York 16, N. Y.,

.731

Health

of

of

Government

12 East

;$°utji College Road, Colum--

Arco

for

Market—Jerome

UTILITIES

ulations

N. Y. (paper).

State

—

Office^ A1 b

..

N. W.,

Management: An Ana¬ Human Beings'* at

ican Bankers Association,

of rounding4.

volved in

Comptroller

Story of Commercial Bank¬

comprehensive study of the ofrj ectivesj problems, and issues in¬

BOOKSHELF

of

the

ot

Re¬

Nature and Efficiency of the For¬

7 Source

Businessman's

Costs

Department

T949; Horirs or^Work in the U. S,, Outlook for United States

Financing American Enterprise— eign

-

100%

-

Fact

State

—

Control—Annual

Comptroller's

mittee, Inc., 22 East 38th Street,
New York 16, N. Y. (paper), 25$,

36th
Total
*

Automobile

on

nomic policy and economic theory
—Richard D. Irwin, Inc., Home-

48
%<

Business

State

and

of

port

relating
actual
business Movies and
Censorship
Bosley
practice to the large issues of eco¬ Crowther—Public
Affairs Com¬

16

2

companies.__.._J..^_-..

All other.

containing articles

Economy;

ance,

and

banks

I

explanation and illustration of the versity of Chicago
Press,
basic principles of corporation fi¬ Ellis
Ave., Chicago, 111.

funds

retirement

York

Audit

wood, 111. (cloth), $10.60.

—

government

Institution,

Approach—Robert

and

say

Individuals, partrierships,v and personal
Corporate pension funds

Brookings

1775 Massachusetts Avenue,

Number of

of bonds*

...

pension

v

total amount

of dollars)

State

1962 Supplement

Advertising ;• a n d Cigarettes; De¬ of Payments-^Heariiigs before the
mands for 7 Durable
Goods,: ete. •Subcommittee^ biir International;
Washington 6j D. C^ (cloth)/ $6,757
Part II, papers on "Investment in Exchange and Payments—Super¬

'

~

York

—

Keeping Commerce
Department, 112 State
Regulations* sample forms, etc.—
Street, Albany 7, N. Y.

October, 1962—In Two Parts, Part

.

Book

Record

Journal_ vjof 4 Political

*

" Percent of

1963—New

New

Commerce Clearing House,
Secu¬
Inc.,
New
Kassouf—Analytic Chicago 46, 111. (paper), $1.50.

T.

-

Amount

in

peth 78, N. Y., $5.

Company^ Salomon Bros, and »Hutzler^ Bankers Trust Company,
Bank, First National City Bank, Chemical
Bank New York Trust Company, and the First National Bank of
Chicago, and 68 others.
^

How to Handle Expense Accounts

Investors Inc., P. O. Box 57 ,Mas-

The Chase Manhattan

The distributibn is as follows:

(paper), single copies
request (additional copies, 25c

Convertible

of

rities—S.

syndicate headed by: C, J. Devine and

a

on

Summary—Edison

—

Finance

ton, N. J.

House

A

classes, of the $250 million
were

How in Europe—Worth Wade and

Chereau—Advance

Stein—International

Section, Department of Econom¬
ics, Princeton University, Prince¬

How to Exploit Patents and Know' Louis

tute, 750 Third Avenue, New York

1988-93 that

Avenue, L*

(paper).

Electric; Power Situation In the Publishers, P. O. Box 334, Ard-' each).
United States
1962 Year End more, Pa. (paper), $12.50.
7,, lV

panies absorbed 21% of the total issue.

investor

Madison

N. Y.

com¬

petitive Jan. 8th sale of 4% 30-year bonds shows insurance

The Treasury Department

488

59

of business

1963.
T. P. Street, Secretary

DIVIDEND

H. S. Netting, Jr.

Pittsburgh, Pennsylvania

.^ecretar^

share

on

the

Common Stock has been declared

payable
holders
1963.

March
of

record

1963

to

February

28,

29,

,

,

A dividend of
on

the 4M %

been

$1.0per share

Preferred Stock has

declared

payable April

1,

1963 to holders of record Febru¬

all holders of record at the close of

business February 8,1963.

NOTICE

A dividend of 22c per

ary

28, 1963.

«

J. H. Mackenzie,

<

Treasurer

Philadelphia, January 22, 1963

60

The Commercial and Financial Chronicle : ::

(516)

-

J

"

■

Thursday, January 31, 1963

COMING

EVENTS

BEHIND-THE-SCENES INTERPRETATIONS
CAPITAL

FROM THE NATION'S

IN INVESTMENT

speech-makers

ministration

billion

are

support for them.

for

drive

increases,

tax
the

of

although

the

in

treatment

for

persons,

reform

tax

vocating

as¬

very

reduction

tax

The

well

very

in

off

well

as

an¬

at the

(Philadelphia, Pa.)

the

at

Stratford

Bellevue

f (Philadelphia, Pa.) |
Institute

:

of

the

at

>

Investment

University

Banking
Pennsyl¬

of

vania—sponsored by the Invest-

I'm

even

the

going higher than the SEC-

and

Association

Bankers

ment

"Furthermore

the

as

Philadelphia

March 10-15, 1963

intended tax reduction that would

leave the investor,

ol

bowling tournatnent

ner

two-

proposal

of

Hotel.

Direc¬

the

from

Association

Ifivestment; Traders

Philadelphia; annual winter din¬

taxes,

of

-

Investment Traders Association of

submitted to
Congress. Said the Board: "We \
had
thought the Administration

if

sidetracked

become

backed

day.

same

Pennsylvania Lanes.

States is ad¬

Board

the

(Philadelphia, Pa.)

Feb. 21, 1963

Com¬

of

reduction

a

package

might

plan

nual

--

•_

the

tors

separate legislative packages.

two

-

t

Chamber

the

'York

Association

his¬

in

down

go

nevertheless

made into

program

not

of the United

merce

tax reduction and

a

New

frugal administration by

as a

While

,

Executive

Chief

will

any means.

with in¬

persons

below $5,000.

tutely wants

tory

tax
and

of

areas

older

for

exemptions

The

which

will be given at the

House

Security" Traders

the

Administration,

Eisenhower

the

some

would
mean
This is particu¬

losses.

true

come

of

Asso¬

A luncheon for out of

Feb. 20, 1963

5
spending each year to the tune '
$5.6 billion as compared with

its

a

For

proposals

revenue

larly

;

Parker

show that

to

Traders

t

Council's

the

words,

(Boston, Mass.)

town guests

Kennedy Administration is upping

tax reforms amount

the most part,

a

launch

reforms.

tax

ler Hilton.

Eisen¬

the

of

Securities

ciation annual dinner at the S'tat-

greater than 1960,

year

purports

study

taxes: this- year,

Federal

this time next year

and
new

to

goal is to

Kennedy's

President
reduce

other

In

,

full

Administration.rVj.

hower

rally

29%

or

last

the

preparing to hit the luncheon and
banquet trails in an effort to

of

1963

Boston

1964

'proposed

total

Congress, Ad¬

to

submitted

been

the

Feb. 8,

out that vj
expenditure
$98.8 billion is up $22.3 u
experts: point

research

have

reform

tax

and

reduction

economic

The Council's tax and

V

'H WASHINGTON, D. C.—Now that
the Kennedy Administration's tax

FIELD

Wharton " School

Finance

of

and Commerce.

'

insistence

great

made

is

to

pass

legislation at the

tax reform

—funds

number

A

Cabinet,

initial

that have

returns

ment

The

come

in

job

opportu

tax; changes

C

e

indeed-

in

•

.

favorable to

appear

^approved

tax cut be¬

a

FleM

by

Congress

.

Start

Shortly

;

to

tax

a

the Government's

until

now

divWends

full
on

including

allowances,

27 J/2%

natural

a

hearing

Congressional

depletion
the

pefore Congress.
will have

allowance

gas,

oil and

on

plater this year.

received

corporations,'

from

■

and

■_

■■

~~~~

The annual revenue loss

repeal

$30,000,000

some

a year.

would be

Allow ?persons JiS^years
°$ suc'1 dividend income above ° der ® credit of $300 against
taxes otherwise due. This would
.

result

>

cern[ng

present

the

law

con-

gains.

The

from gjx months to

one

estate

as

curb

year;

capital

a

Y

revenue

\

Texas Group Investment Bankers

Association

Convention

the

at

CHRONICLE'S Special Pictorial

Section April 25.

,

April 17-21, 1963 (Syracuse, N* Y.)
American

Bar

Association

Re¬

gional Meeting.

Permit a minimum standard
deduction on each tax return of
$300 ($150 for each husband or
wife filing a separate return) ahd
a $100 deduction'per dependent
up to the existing maximum of

long-term capital gains treatment
reaj

Hotel;

April 3-4-5, 1963 (Dallas, Tex.)

pro-

capital

holding period for qualifying for

0f

$320,000,000

a

lnoc

p0saj WOuld extend the minimum

use

in

ciation 37th Annual Dinner at the

Statler Hilton Hotel.

.

?

the provision that allows a credit

29, 1963 (New York City)

New York Security Dealers Asso¬

Waldorf-Astoria

formula that will be announced,

a

flo.

against tax liability equal to 4%

*
tax

•■■

■

March

that from year to year, to come under

law

exc]u^es from taxes the first $50
of

.

the

of

some.

appears we

scale

:

opposition sector

reduction

about

'

"

existing

the

Change

■

'■_

In

Allowance

.

What

It

The

Change

reforms pending

Public Hearings to

Denleiinn
Depletion

In

Thance

Over

.

speculation.

.

Over

Fight

this
year. However, just what shape
it eventually takes is a matter of

ing

Amend

mcstic

bleak

is

'

'

1

1

top—Vaughn Meader!"

~

tax

s

p osp

e

,

"

1

pro-

growth-new invest-

and

based

country

Easter..

and

now

proposa

1

.

in the President

natural

for

cut

tax

parts of the

in all

plan

between

the

for

jobs,..

designed

well

.

revision

getting ready to

are

speeches

.

.

productive
.
De-

provide
as

I'm taking it right to the

funds

additional

well

some

visions

spokesmen, including members of
make

as

spite

Administration

of

to

facilities

same

time.

the

with

consumer,

:}

April 26,

Security

1963

(New

New York Annual

Grand

City)

York

Association

Traders

Dinner

of
the

in

Ballroom, Waldorf-Astoria

Hotel.

gains shelter; provide for taxation
May 6-7, 1963 (Richmond, Va.)
of 30% of capital gains taxation $1,000. The existing $600 standard Association of., Stock Exchange
campaign.
that
Congress will make any (now 50%), and thereby reduce deduction would be kept in the Firms ^ Spring
Meeting of the
There are many people who want
change in the oil-gas tax rate in the rate of capital gains taxation law. Treasury officials said the Board of Governors at the John
to know what is going to happen
1963. The big showdown is not under
the new individual rate proposed change would aid pri- Marshall Hotel.
to
depletion allowances, * capital
expected before 1964.
schedules. Also, allow an indefi- marily persons with incomes
May 8-11, 1963 (White Sulphur
gains, income splitting for mar¬
fiscal

house

can

be

in order

put

Yet,

its

launched

has

not

ried

couples, dividend

it

Administration's

credit and

The

they start

proposal

.

exclusion,

before

etc.,

beating the

drums for

which

affect them

may

tax cut

a

little

or

none.

However,

will

Congress
reform

is

it

pass

legislation

that

doubtful

so-called

any

1963.

in

Long

public hearings will begin before
the House Ways and

mittee

ment

Feb.

on

witnesses

be

to

Means Com¬

6/ with

Govern¬

connected with the Ken¬

or

Administration.

nedy

first

the

in

those

include Secretary of the

Luther

Secretary

H.

and

Hodges,

Labor

of

Willard

W.

Private

will

witnesses

begin

testifying about Feb. 18. Many of
leading

labor

men

will

for

in business and

testimony.

present

There will be
both

testimony presented

and

against

a

cut

tax

when

the

heard

by Chairman Wilbur Mills

and

his

public

colleagues.

witnesses

the

thout
touching the depletion allowance.
Reducing
will

industry

the

w

wouU
an

Meantime,

;

and

phasizing that the
gallon

much

as

of the

«
President

not

too

cm-

to

wholesale

/

Kennedy
Mcujr

Ctpprticxiii^

by the

pro-

.

tests that have
the

face

of

Both

labor

merce

chieftains

States

United

Chamber

are

advocating
State

declares

on

been

.

going up

of

prospects

an

in

annual

the

Chambers
that

economic

gether with
headed

Walter

by

President

it

said

appears

expansion

Additional
Favored

Tre

for

same

and
of

the

Com¬

side

in

In
gas
faces

-

contributions

of

to

the

institutions. Cultural

fgpg would be affected
ent iaw

provides

a

standard 20%

an

additional 10% for dona-

tions to schools and churches, and
,

synagogues,

.

and^ for

educational
-if-:

inciHn+irmc

institutions.

.

Deduction
p.

[This column is intended to reflect
the

Sought
,

,

,

,,

Change the present law to allow

of

year or

couple of




years.

;

Electronics

Official Films

0

-rvV^Waste King
Our New

york telephone number is

CAnal 6-4592

v.

:

.

may or

(

may not coincide
whose income varies own views.]

.

with the Chronicles

LERNER&CO., Inc.
Investment Securities

10 Post Office
Telephone
HUbbard

;

I

-.

Square, Boston 9, Mass.
Teletype

2-1990

and

eco-

\ -—M

flKSQRHf

617

451-3438

,

ttgK

V

r^jlwr

'

Major Pool:
Equipment
Corporation

and

seemingly

Bought—Sold—Quoted

later, there

are

FOREIGN

SECURITIES

SPECIALISTS
Annual

20 BROAD STREET

•

NEW YORK 5, N. Y.

Report available
on

importance, although Adminis¬

cause

balanced

s,

^

Mills

favor-

other proposed tax reforms

cuts

a

at

"behind the scene" interpretation

from the nation's Capital and

persons like artists, authors and

architects,

.

nnQr

•

Revision in Standard Tax

Meeting

)"

Head

Maxson

more m operation oi their atiairs. "

'■&<*£,

•

Botany Industries
Indian

support for a reduction from
the Pin.ched business people wha.
complain more and more that
Government intervenes
and-

limit for these type of institutions,

<

Attention Brokers and Dealers

Vrill there be a tax ^iutthis
Certainly there,wis- some

The pres—

Governors

TRADING MARKETS

!?,?.,^"!?eSt '™med'ate quf3t'on

.

_

Bankers; Association

the Greenbrier.

!/"

een-

of

on

The

big oil

which

spokesmen

have

action

any

charitable organizations which are

public

Board

v

tupm

Reforms

Tax

of

at

takes *i

Congress

to

Springs, W. Va.)
Investment

bigger tax bite down the

road, next

Commerce .some

of

addition

industry
a

-

try and labor will have plenty of
time
to
evaluate
them $ before

:
*

.

..

before Congress. Business Indus-

addU

.

'

pt

.

.

There are certain other . proposed- changes that are pendmg

by Administration

proval

a

amount

moderate

nomic affairs this year.

tration

budget in

a

business

of

current

still

Heller.

able that there will be

■

y

:■

any

to-

message,

the yearly report

levels, the country could have tax
and

his

in

his Council of Economic Advisers,

at;

by controlling Fed¬

expenditures

indicated

was

in

cha

$100,000,000

'

h

of

th

tQ

•

un-

are

tax cut. The Council

a

This

years..

bri

estimated
t

plus

.

apparently

Ave

disturbed

a

on

amounts
the

as

gasoline.

A

is

are

total tax

gasoline

of

about
cost

Congressmen

some

sedes

Increase to 30% of income the

V

industry spokesmen

individual

an

The

Qne

27^% presumably

later.

come

incurred by

top

$5.6 Billion Annually

eral

nnn

from

taxes

in

aaa

.=

Federal Outlays Increasing

of

year

$5,000 a year.

reform

(poqa

$280,000,009

for

balanced budget for the next few

Wirtz.

the

a

Petroleum,

Treasury

Douglas Dillon, Secretary of Com¬
merce

more

„

„

calls

will

These

unlikely

highly

seems

no

feel

that

the ; proposals
upset

to

the

These would include:

ap¬

would

economy.

MILL, THOMPSON & CO.,
70 Wall

<

request

INC.'

Street, New York 5, N. Y.

Tel. WH 4-4540

.

Tele. 212 571-1708