Full text of Commercial and Financial Chronicle : January 8, 1959, Vol. 189, No. 5810

View original document

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

ESTABLISHED

IS39

Reg. U. S. Pat. Office

New York

Number 5810

189;

Volume

Price 50 Cents

7, N. Y., Thursday, January 8, 1959

EDITORIAL

See It

Of Duty in Washington

A group

of eminent and able men functioning
President's Advisory Council on; Social

the

The facts and opinions it contains

worthy of careful study. They will

Chairman, Manufacturers Trust Co.,

Ex-Special Asst. for Economic Affairs

if they

best

lic

induce

some

Reflections of the nation's economic

are

pendent thought on the part of the rank and file.
What these eminently qualified men have to say
will in some instances, so we must all hope, tend
to stimulate and perhaps to guide independent
analysis of. the problems discussed. Due in part
to
the highly technical nature of the matters
under review and in part to widely understood,
misunderstood, basic

economic

and financial

the

In drawing on my own

well make helpful independent analysis by

man

in the street the

difficult.

comment

the role

and

con¬

law. in the last

session of

basis."

Congress makes adequate provision for
the program on a sound actuarial
To this encouraging note, it adds "that

under

the

financing

new

schedule

The likelihood of

who adds,

only is the system in close actuarial
balance for the long run, but also after 1959 the
income to the system is estimated to exceed the
outgo in every year for many years into the
future." Thus the uninitiated may well gain the *
impression that all is quite well with the system
and that the system accordingly can be counted
as
an
unmixed blessing certain to shower net
benefit upon; our heads throughout future years.
If this were a privately operated system with its
reserves productively employed and its premiums...
(what are termed "contributions" in this system)

outlook for

the

■

some

counselor

investment

major industries,

runs

sketches the
down

some

disturbing factors in the economic picture, believes
bond

government
sometime

prices

during 1959

will

regain

lost

popularity

1960, and foresees at least

The year

life

own

experience

One's

re-

course,

ward

useful

economists

and

statisticians.

process* of evaluating our expe¬
rience, the Chances of making the

this

future

better

hanced.

agreed:
Dr. Gabriel
v

Hauge

better.

the

past

we fire

few general

are a

comments that I would like to

en¬

are

surely
must always strive to do
thing

Here, then,

The role of professional

than

one

economists and statisticians

Washington today is an increasingly recognized and
effective one. Economics is still concerned—with apolo/

Continued

V ;

Leicester

♦An

on page

labor

Fisher

before joint meeting of American Eco¬
Statistical Assn., Chicago, III., Dec. 28,1958.

will win

may continue to drift lower in
flection
of further
switching
stocks inspired

and

hardening

otherwise

money

generally

Sobering influences in

rates.

optimistic

economic

Continued
address

♦An
San

Francisco,

by Mr. Fisher before
Calif., Jan. 6, 1959.

— Underwriters, dealers and investors in corporate
complete picture of issues now registered with the SEC and poten¬
tial undertakings in our "Securities in Registration" Section, starting on page 38.

re¬

into

by inflationary fears

picture
on

address by Dr. Hauge

nomic Assn. and American

submit.

which

and

It is
probable that during a large part of
the year—if not all of it—inflationtionary forces in the economy will
outweigh the deflationary influences.
It is likely that stock prices in the
aggregate will witness new all-time
highs in 1959 although the 1958
pattern of month by month increases
in the various market averages is
hardly to be expected. Bond prices

the

one

further substantial wage gains.

Government

Federal

our

something

just getting underway promises to? be

irregularly risha^ industrial activity, expanding business
volume and higher corporate profits.
It looms as a year in. which the cost
of living will continue to trend up¬

accumulation of experience available
to

page

predicted by Mr. Fisher

being pushed to extremes by inflationary

The

psychology.

upward fluctuating stock prices and

however, the reminder that there is the danger

of stock prices

various preconceptions to which each of us is subject
in some degree. But perhaps a sort
of preliminary post-mortem on al¬
most six years in the vicinity of the

fleets, of

Will' add

benefits not

Continued

Towne, Inc., New York City

continued recovery this year is

individ¬

an
rooted in his

are

thought.

summit

and

contributions

five

recently concluded experience
economic analysis in public

policy,. I do so with the full knowledge that

for example, finds that "the

tribution scheduled enacted into

based

Member, Executive Committee of the Institutional Funds

ual's views

The Council,

scene

Strum

Van

$460 billion Gross National Product in 1959.

concepts involved, other sections of the report
may

Vice-President in Charge of Research,

New York City
Pres. Eisenhower

White House economist are voiced
by Dr. Hauge for the benefit of economists. He discusses
such topics as:
(1) non-economic considerations in
reaching public policy decisions;
(2) need to deemphasize anti-recession policies and to remove obstacles
to achieving a good growth rate; (3) budgetary proce¬
dural reform; and (4) urgency for further basic analysis
anent—economics of defense in a cold war, incidence of
taxes and value of fiscal-tax policy, wage-cost-priceprofit spiral, and growth of underdeveloped lands.

careful inde¬

very

By LEICESTER W. FISHER*

and one-half years as

the pub¬

serve

Investment Outlook

By DR. GABRIEL HAUGE*

Security Financing has handed the President a
report.

Copy

1959 Economic and

]As We

group

page

are

of security dealers,

SECURITIES NOW IN REGISTRATION

DEALERS

securities

afforded

are

State, Municipal

and

U. S. Government,

State and

Municipal

STATE

Securities
telephone;

AND

MUNICIPAL

Lester, Ryons & Co.
623 So. Hope

Members New York

BONDS

Members Pacific Coast

LETTER

MONTHLY

Burnham and
MEMBERS NEW

YORK AND

MOAD STREET, NEW

CABLE:

•

Dl 4-1400

Inquiries Invited on Southern

Teletypes NY 1-708

Bond Dept.

Chase Manhattan

New York

BANK

Correspondent—Pershing A Co.

Markets

Active

Dealers,

Maintained

Banks and

Brokers

The Canadian Bank of Commerce
(Rights Expiring March 17, 1959)

T.L.WATSON&CO.

WESTC0AST

New York

TRANSMISSION CO.
Block

inquiries Invited

CANADIAN

25 BROAD

Exchange

STREET

NEW YORK 4,

N. Y.

goathwcAt company

•

DIRECT WIRES

TO MONTREAL AND

Goodbody &

•

PERTH AMBOY

115 BROADWAY
NEW YORK

these rights at the
market.

Direct private wires to

Toronto, Montreal,

For

Ottawa, Winnipeg, Calgary, Vancouver,
Victoria and Halifax

California

Municipals

DEPARTMENT

Teletype NY 1-2270

Domeuox Securities
TORONTO

Co.

MEMBERS MEW YORK STOCK EXCHANGE

BRIDGEPORT

offer to buy
current

Stock Exchange

American Stock

1832

THE

California Securities

Members

dallas

Santa Ana, Santa Monica

TELETYPE NY »-Z2M

COIUKNMAM

ESTABLISHED

rntsT

San Diego,

AMERICAN STOCK EXCHANGES

YORK 5. N.Y.

Distributor

Dealer

DEPARTMENT

BOND

Pasadena, Pomona, Badlands, Riverside,

OF NEW TORK

Company

Net

•

RANK

THE FIRST NATIONAL CITT

Underwriter

Exchange

Encino, Glendale, Hollywood, Long Beach,

BANK
N.Y.

Stock Exchange

Offices in Claremont, Corona del Mar,

view

CORN EXCHANGE

30 BROAD ST.,

Stock Exchange

Associate Member American

the

burnham

DEPARTMENT

Bonds and Notes

California

HAnover 2-3700

CHEMICAL

BOND

Public Housing Agency

Street, Los Angelea 17,

1 NORTH LA SALLE ST.
CHICAGO

DEPARTMENT

(ORPOKATTOTI
Aiaoclate Member of American Stock Kxch.

Exchange Place, New York 5, N. Y.

TeL WHitehall 4-8161

Tele. NY 1-702-3

MUNICIPAL BOND
'

Hunk af America
NATIONAL

300

Kvinos ASSOCIATION

•

Montgomery St., San Francisco. Calif.

(98)

The Commercial and Financial

For Hunks,

The

Brokers, Dealers only

Security I Like Best

A csallkuous forum in which, each week, a different
group of experts
1b the investment and advisory field from all sections of the country

1959
In

participate and give their

If it's Over-the-Counter

reasons

for favoring

advantage of
trading facilities.

large

our

over

offer

Author:

"The

Battle

for

City

Exchange
leading Exchanges

Nineteen-fifty-eight
closed on
unusual
note, in that there
seemed to be more buying to es-

Corporation
Established

Teletype NY 1-40

PHILADELPHIA

Private

SAN FRANCISCO

•

is¬

or near

their lows this

CHICAGO

Wires

Principal Cities

December

greatly

duced

over

years

Specialists in

corre-

d ingly

p o n

difficult.

Loeb

With the Dow

RIGHTS

SCRIP

Industrial Average up over 135
points during 1958 and with many
individual stocks having doubled
in price and more, it would seem
that
looking among those near
their lows might pay off the best
during the forthcoming year.

Since 1917

IfcpONNElL&fq
INCORPORATED

Members
New

•

For future

York Stock Exchange

American
120

Stock

Exchange

must

find

issue but

BROADWAY, NEW YORK S

profit prospects, one
just a depressed

not

depressed issue with

good outlook.

TEL. REctor 2-7815

regularly enjoys

best

markets

Sell¬

has not been seen since 1949, after
three years of

decline, and at half
top, the shares certainly

regarded

mature

even

1929.

Thus, it should be

evident that Chrysler is a stock
to blW and sell rather than to buy

cycle.

It is

^
n1-^ *rorf1
banner earnings
of 19o5 and the enthusiasm over

hold. There is

*5.Three motors. Foreign

export markets and

Life Insurance Co. of Va.

;

Commonwealth Natural Gas

STRADER and COMPANY, Inc.

home.

r-arenc

-5-2527—
Wire

TWX LY 77

Seu)

York

City

C°

cheaper.

duty, Plus

; V;

';/ryv>

^reeneandComparu^

have

„

rpnf

j ?e. car 1S
decision

feels is the low point of

cycle
t

compared

the

dverpopularity of sofact} in

called "growth shares." In

1958, rails, which are about as far
fr0m growth shares as one can get,up

almost 75%, the second
percentage
gain
of
the

Stock Exchange.,

The

seemingly

made

lw
best

make

has

but the

one,

Chrysler has

and

Teletype—NY

1-1127

owest price

rp,

car

real.

very

„

point out, as I
invited

TT j)Iactt0
regularly do when

write

know

time

for

security at

means

the time of

Chrysler.
nntinn

& Co.

Denver—Lowell, Murphy &
Company, Lie,

particu-

obviously does not

mean

calling atten-

tion to the situation

System:

this

continuous and perpetual bullishness on that particular stock.
It is

simply

Angeles—Marache, Doffiemvre

active and

very

the

New

York

the

ancj

has

range

between

been

and

59.

per

15
;

WOuld think that 1959 would show

excellent

volume

and

even

wicjer range. A good market is an

important asset to

uation

it exists at

I have followed the sit-

very

Maxwell

writing. This is true of

trci'xr

closely

Chalmers.

Chrysler,

other

and

have been neutral.

There

was

rally

HAnover 2-0700

than in

the

stock be-

any

Markets

in less extremes

run

Full considera- 2

past.

out

0f tax loss carry-overs.
investors have learned to measure
process
market

prices

quarter to break

Mobile, Ala.
Direct

since

have

bullish
times

Now, the stock
grounds

the

and

introduction

its

1959 models

probably has not ex.
ceeded 13%. This compares with
its all-time high above 23% in 1951
and

its

recent

high of practically
20% in 1957. Earnings for the first
nine months of this year show a
deficit of $45 million, or $5.18 a
share, and the fourth quarter will
perhaps show a further loss.
«•
,

Earnings in 1959
estimate.
first

second

seem

could

quarter

•

be
i_

„

dictable. both from

difficult to

are

would

quarter
i

was

short-term trading

technical

partly for
other reasons, its share of the mar-

ket

that the

good.

The

wholly

over.

the

offices

JAPANESE

and

have

fluctuated

produc-'

car

Chrysler

chances, favor

; penetration
widely and the

either

both

STOCKS
For

information

current

Call

write

Yamaichi

Securities Company
of New

York, Inc.

in¬

"V-"'

fluences

Affiliate of

Yamaichi Securities Co„

Ltd.

Tokyo, Japan

Brokers & Investment Bankers

111

Broadway, N.Y. 6 COrtiandt 7-5680

return to normal volumes should

show

increased

greatly*
margins. - r

Working capital

;

the

seems

adequate

low

dividend

current

assured

pfofit

Chrysler .4 has

through

problems.
The company has solved its styl¬
ing difficulties and if imitation

the

has

company

group

the

sincerest

flattery, it certainly

leader

The

many

considered

can

form of

INC.
37 Wall

Underwriters—Distributors

now

very

Dealers

Investment Securities

who have shown

owners

Street, New York 5, N. Y.

field.
loyal

styling
a

Burns Bros. & Denton

1959.

tendency to switch principally
in the years with complete body
changeovers rather than in the

usual

model

Canadian and Domestic

facelifts, tail-lifts and
reskinning. Thus, a current back¬
log was again built up.
years

Its engineering know-how has
always
been
acknowledged.
In
fact, since the famed engineering

firm

came

Zeder,
to

over

Selton

Chrysler

IN JAPAN

Breer

1924

with Walter P.

over.

•'

Opportunities Unlimited
Write

for

dealer
the

and

work

61 Broadway, New York 6, N. Y.
Telephone: BOwling Green 9-0187
is not

offer or solicitation for

for any

particular securitieo

its

sales problems,

which
acknowledges

management
understands.

and

whole.

Nomura Securities Co., Ltd.

orders

•

Monthly Stock

economy as a

This

Chrysler

our

Digest, and our other reports
that give you a pretty clear
picture of the Japanese

Chrysler

cars

bought rather than sold.

Some

new, and

untried

its

hands'.

developed

it has not
and

far,

enthusiasm

tail with little stress

qualities

RED

ultimately ex¬
Emphasis has been on de¬
to

Your

automotive sense,

.the

momentum

pected.

advertising

Chrysler
such important items
engine.
This is
the

the major

cars
as

the

only

new

CROSS
must carry on I

com¬

pletely

new power plant in
the
industry designed to take advan¬
tage of modern automated manu¬
facturing facilities. There has been
a
delay, too, in openly coming to
grips with the competition of the

so-called

small American

car

and

the differences in their riding and

handling

nothing

say

economy offered

the

Over-the-Counter

Quotation Services
for 46 Years

by the Plymouth

six.

unpre¬

standpoint of
industry totals and Chrysler pene¬
tration. The third quarter is likewise unpredictable except it may
reflect

branch

our

It is diffi¬

even.

that both total motor

tion

aver-

possibly

and

wires to

cult to

are

against

strike and partly as a result

this

NY 1-1557

New Orleans, La. Birmingham, Ala

in the final analysis, the risk

today tend to

£4.

since

been times when I

is entitled to

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

conditions

Chrysler, the com¬
pany has pioneered a long list of
of a position to a good trader is
engineering "firsts." There is much
rela'ted to liquidity in the sense
more continuity to such an inher¬
of measuring the cost of canceling
itance than people generally rec¬
out a position,
ognize.
The hiring and training
Current news on Chrysler has
going on over the years tends to
been
discouraging
and
has,
of pass standards and objectives to
course,
contributed to its avail- the younger men as they take
cause

forum,
security I can
safely publicize as "liking best"
for all
types of buyers and all
types of objectives. What is more,
I

mention of

Trading Markets

bay

tled

Chrysler position.

that

Over-the-Counter

market

In this general
atmosphere of age results, trends and potentials
gloom, the market currently re- than current figures.
Neverthegards
Chrysler
with
the
most less, discouraging figures if only
gloom of all. The situation cer¬ temporary can create buying op¬
tainly calls for a re-examination portunities. Chrysler has just set¬
of the

200

°+Vn-rlluf tion is given to the evening

selleis^
into the twilight
their top price car

between

zone

economic

a difficult abiiity at current prices.

1930

HAnover 2-4850

Jf ire

the

For them the problem

ago.

been

Los

jumped on
bandwagon. Current
and standard 1960 body dies of the
Big Jhree'were planned a long¬

one.

Bell

eduction

the small-car

Telephone

franc
m^ay make
even

•

Established

Studebaker

time

satisfactory

are

Statistically, it would appear
that Chrysler needs an average of
about $600 million in sales per

great oppor-

com- averaged about 14,000 shares

At home, American Motors and
now

Private

The

imports

frpfeM
1
s

general

Members New York Stock Exchange
Members American Stock Exchange

large if labor condi¬

very

favorable.

should

their

threatening points>

American production costs exceed

LYNCHBURG, VA.
LD 39

are

and

one

offering, to today s stock
Exchange. Trading volume
concerning-the M the first n months of 1958

petition has become dominant
at

and

what

the Ford public

Bassett Furniture Industries

Steiner, Rouse & Co.
likely be

tunity in buying cyclical stocks at

were

winter time of their

American Furniture

Bought—Sold—Quoted

set up a table comparing
Chrysler's penetration with indus¬
try totals as far as break-even
The stock, which ■/ in 1952 was
points
go.
However,
perhaps
sixteenth
on
the
list
of
the
something like 16% is required in
"Favorite Fifty," is now out of a 4lk-million-car
year, 15% in a
the list all together. There is noth¬ five-million-car
year,, and 14% in
ing to prevent its coming back. a 51/2-million-car year. A better
In studying Chrysler, it should way to look at it is to considej*

1955

Certainly the major motors, and largest
Chrysler in particular, are in the various groups on the New York

Trading Interest In

Compaany—Rodger W.
Bridwell, Lake Tahoe, Nevada.
(Page 47)

the

price that outside of 1958

c u r r e n

86,000

over

Louisiana Securities

Natomas

causing another $10-15 ^a
share earnings year for Chrysler
Chrysler's big-:
ket price of 50 has been seen perhaps in 1960.
many
times in the past. In the gest strides recently .have been
made in developing efficiency and.1947-49
period, in 1936-37, and-;

good buy

is made
s

the

corporation than a growth corpo¬
ration,
Its highest earnings; per;
share adjusted to the present capi¬
talization, occurred back in 1949.
The equivalent of its current mar¬

and the search

for

ing at

re¬

deserve attention.

usual

number
sues

Corporation—Gerald

tions at that time

New York Stock Exchange.

its

Thus, the

way.

120 Broadway, New York 5
•

positions

establish

Associate /.Member

BOSTON

short

selling

losses in the

1920 '■

American Stock Exchange

WOrth 4-2300

losses

than

_al1

It had

companies.

can

one

tablish

the

As of December, 1957, Chrysler

Chrysler Corporation

New York Hanseatic

improvement

sense that the picture six to nine
months from now should look a

shareowners.

400 issues.

Alabama &

Loeb, Partner, E. F. Hutton &
Co., New York City. (Page 2)

Members: New York Stock
and other

Week's,

very great deal better.

Partner, E. F. Hntton & Co.
New York

Thursday, January 8, 1959

Participants and

particular security,

intended

long-term

Investment

Survival"

trading problems
during the year, our private wire
system " will help you speedily
reach banks, brokers and dealers
throughout the nation—and pri¬
markets in

as an

GERALD M. LOEB

Vlia lever your

mary

they to be regarded,

are

Try "HANSEATIC"

not

be, nor
sell the securities discussed.)
are

? .

Their Selections

Chrysler

(The articles contained in this forum

and take

This
Forum

Chronicle

change-

The fourth quarter can very

Chrysler management is looking
towards

20%

1960

penetration

1957

Incorporated
Established 1912

will

again be achieved. Their plans and

"""Continued

National Quotation Bureaa

when its

year

46 Front Street
CHICAGO

page

NewYork4,N.Y.
SAN

FRANUISOO

Number 5810

189

Volume

.The Commercial and Financial Chronicle

IN D E X

European Recovery Strides and
American Competitiveness

Articles and News
Some Reflections

—Gabriel

By ERNEST R. BREECH*

Industrialist

finds

almost

unbelievable

Page

Tour of Duty in Washington

EPITAPH FOR

.Cover

________

OBSOLETES

1959 Economic and Investment Outlook^

—Leicester

industrial

swift

the

Hauge

Ford Motor Company, Dearborn, Mich.

Chairman of the Board,

development and cost advantages in foreign countries which,
he finds, threaten both the overseas and domestic markets of

Fisher

They left

—Cover

every tiling

be desired

except the cash they brought

European Recovery Strides and American Competitiveness
—Ernest

•

Breech_______

Wall!

American

industry. Recently returned from a trip to Europe,
observes we no longer are superior in capital
investment, managerial methods and economies' of scale and,
thus, the wage differential is becoming increasingly significant.
Predicting a continued flight of American capital abroad if the
cost disadvantage continues to increase, the Ford Chairman
recommends steps to keep our costs competitive, recommends
foreign harriers to our products be lowered, and urges we
halt inflationary trend and inflationary wage increases,
f
Breech

Mr.

{

German

just

have

Europ
b us in

e a n
e

again

be¬

p.eduction
As

frc

Eu¬

steel,

e s

enjoying

are

million

130

ceeds

sharply,

will

great single mass-marWet is developing and European
industry is furiously mobilizing to
a

njieet it.-

compared to

manufacturer

our

cur

automo¬

most impressed by
striking improvement
throughout Europe in the design,
manufacturing and merchandising
was

of automobiles and consumer du¬

rable goods. They have read some
pages, from Our book, and it be¬
gins to look as if maybe they
been

learning almost too
Europeans
have
a
great

1965.

joining of

new

once

companies

into

bigger

and

road

find

single
automobile
plants producing as many as 2,500
engines and 2,000 or more bodies
daily—levels of production that
favorably

compare

with

opera¬

tions here in the United States.
*

■„ *

*A
talk
by Mr, Breech
before j the
Pittsburgh Chamber of Commerce, Pitts¬
burgh, Pa,

Hazlitt's

J.F.Reilly&Co.,Inc.

Keynes (Letter to Editor)-—----

»Members Salt Lake

■

Views

(Letter to Editor)—

—_

Direct wires to Denver &

ex¬

Poor's Corporation

Standard &

____

___

specialized in

United Artists

vehicles

See

Pacific Uranium

(Editorial)--

Cover

about 4*/4 mil¬
Bank:and

to 5V-z million
In

">*■

alone

1958

Insurance

.v-

Businessman's

Stocks.—
•-

■

Ling Electronics

28
•

„

Bookshelf

!''■>'

.■

•*

Dixon Chemical &

Research
Coming Events in. the Investment Field.

—_____

Strong, Cobb & Co., Inc.

Scales

woods.

Dealer-Broker Investment Recommendations

Einzig: "Effect of Recent Changes in Monetary Units"-—.

From Washington Ahead of the News—Carlisle Bargeron

Singer, Bean

the

And

Indications of Current Business Activity.

communist subver¬
slim. I think all of
us have reason for both pride and
satisfaction in this. Europe's re¬
covery has been a major goal of
this country.
That job appears to
be just about done.
It has been,
done not only by government aid,
but
with substantial help from
pickings

for

trial

secrets

out for

our

Proud

sults,
and

and

Mutual

differential

Wilfred

Teletype NY 1-1825 & 1-4844

—15

_____

Our

Reporter

Our

Reporter's Report

Governments.—

turned

inside

Public

be of the

the

rate

poses

new

considerable.

page

——

Offerings.--.—

Security

Prospective
Securities

Registration.,.-

—

______—

Salesman's Corner—__

Permachem

....

and You—By

25 BROAD

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 2-4300
Albany

Boston

Nashville

Exchange

TELETYPE NY 1-5

Chicago

Schenectady

-Glens Falls
Worcester

Sulphur

5s— 1967

;

Heli-Coil Corp.*

_______

Wallace Streete.———

For

Security I Like Best—

The

Washington

and

Tenney Engineering*

—_—

The State of Trade and Industry______—___

You

—

1968

Commonwealth Oil

Refining
Twice

FINANCIAL

Company

CHRONICLE

Reentered as second-class matter Febru¬

•

Publishers

Park Place, New York 7,

Subscription

N. Y.

WILLIAM
:

DANA

SEIBERT,

Thursday, January

President

8, 1959

Other

135 South La Salle St..
(Telephone STate 2-0613).

Offices:

Chicago 3,

111.

news

Rates

in United States, U. S.
Territories and Members of
Union, $65.00 per year, in
of
Canada,
$68.00 her - year.

m V. FRANKEL & CO.
INCORPORATED

Pan-American
Dominion

Other Countries, $72.00 per year.

and ad¬
vertising issue) and every Monday (com¬
plete • statistical, issue — market quotation
records, corporation news, bank clearings,
state and city news,
etc.).
•
v
•
Every

Thursday (general

Publisher

request

/♦

Subscriptions
Possessions,

HERBERT D. gEIBERT, Editor &

Prospectus
*

25, 1942, at the post office at New
York, N. Y., under the Act of March 8,1879.

ary

Reg. TJ. 8. Patent Office

6s— 1972

Weekly

REctor 2-9570. to 9576

Spencer Trask & Co.

Corp. A

5s —1973

The Market

WILLIAM B. DANA COMPANY,

Stock

Chicago

—

Pan American
Securities Now in

Eu¬

the cost per hour for
purchasing automotive tools and
dies from independent producers

Continued

——

realistic

also

example,

York

Los Angeles

Utility Securities.______

Railroad Securities

re¬

PREFERRED STOCKS

New

Dallas

Cleveland

—

.___

Direct Wires to
San Francisco

May...—__________

INC.

40 Exchange Place, N.Y.

Philadelphia

prob¬
lems
Traditionally, of
course, Europe's wage scales have
been
substantially
lower
than
ours.
In certain occupations, the
progress
for
us.

_______

Observations—A.

box of indus¬

may

that

Funds

News About Banks and Bankers.*

European friends.
we

must

admit

HA 2-9000

We have lit¬

business.
our

mackie,

^__

sion look very

Members

«■

Regular Features

own

The COMMERCIAL and

many years we

have

Lake City

Salt

Tightening Money Markets for 1959 Depicted by

Published

J^or

City Stock Exch.

Exchange PL, Jersey City

cars,

the

out

rope's

units.

Cist

Frank

DIgby 4-4970

short, Western Europe seems
be riding the private enterprise

mergers,

small, high-

With

Differs

erally opened

do not hear of

Production

Compares Wage

American

viable

Teletype: JCY 1160

800,000.

awareness

today of the economies
scale, and they are fast inte¬
grating much of their heavy in¬
dustry. Scarcely a day passes that

Spitz

"Myths"

compared to
estimated 4,300,000, and- 750,commercial vehicles compared

You

our

commercial

passenger

our

49%.

really

Business Outlook____

000

new

Participants in Commerce and Industry Association

kilowatt

billion

increase from

ating pace.
In the period
1950
through 1957, for example, Eu¬
rope's Gross National Product in¬

cost

HYCON MFG.

Percy L. Greaves, Jr. Upholds Hazlitt's Critique of Keynesian

production;

equaling

lion units this year

been overtaking, us at an acceler¬

you

million to

production.
and

cars

000

well!

to v 650

domestic

1950, Europe's economy,
and particularly its industry, has

have

Richard

Europe is producing about 3,500,-

Since

Paul Mazur Named Tobe Award Winner for 1958___

coal, from 544 million to 575 mil¬
lion tons; and electricity, from 418 *
hour..—almost

the

__I

Symposium Optimistic

$300

tons—that

1957

own

our

billion

biles,

Davidson

PERMACHEM CORP.
New York

increase

will

from

substantially
higher "employment everywhere.
Living
standards
are
climbing

There

creased 88%

NORTHWEST
PRODUCTIONS

____

develop¬

to nearly

short

decades.

these

Product

greater national solvency than in

$226. billion

billion;

is hardly recognizable. There
new
strength and
growth in the European economy.
tremendous

c o u n

—Clinton

manufacturing.-v

and

result

National

Ernest R. Breech

fast that

When Special Situations Are Better Than Blue Chips

according to our own pro¬
jection for the. period of 19571965,
Western
Europe's
Gross

unbeliev¬

old

—Hon. Lewis L. Strauss

ments

happening

the

___

Upward Momentum to Carry Economy to New Levels in 1959

developments and processes ap¬
everyday in mining and steel

rope

Frank Heintzleman

CHEMICAL

pear

abroad

ably

—B.

largely gone by the board.
are
innovating at a tremendous pace and important new

recently can
attest,
things
so

GUARDIAN

They

trips.
Any who have

are

have

tween

been

EQUITY OIL

Alaska Beckons: "Go North Young Man, Go North"

high-cost,
low-volume
carteiized
production
and
pricing

let four years

elapse

Responsibility—Percival F. Brundage__

Telephone: -WHitehall 4-6551

—Sen. Clinton P. Anderson.—
Fiscal

Securities Dept.

WALL STREET, NEW YORK

____________

Stopping Extravagant Programs in Agriculture and Elsewhere

'
•

•

Never;
will I

scene.

tour

Motorola: A Mature and Resurgent Electronic Equity

■V—Ira U. Cobleigh

from

returned

weeks'

six

Obsolete

4
<

a
Moreover, these countries are
Europe, fast adopting modern managerial
during which I tried to find out organization and practices. ;They.
all I
could
about developments are
accumulating - capital * and
in our own
spending it. freely on vastly im¬
Ford interests
proved plant'and equipment. The
and in t h e j
old ties of tradition, the old habits o
;

brief

Experiences With Infration—Ludwig Rosenberg

Bank

Other

—

Monthly,

$45.00 per year. (Foreign Postage extra.
Note—On

the

rate

foreign

account of the fluctuations in

"remittances for
and advertisements

exchange,

subscriptions

must be made in New

BROADWAY, NEW YORK 6
WHitehall

Publications

Quotation Record

and

York funds.

3-3960

Teletype NY 1-4040 & 4041
Direct. Wire

PHILADELPHIA

The Commercial and Financial Chronicle

(100)

and

German Experiences with Inflation
Executive Committee
Federation

of the

Inflation

to swell—to in¬

means

German

swelling of the circulation of
what
characterizes
the
process which we call inflation.

German
said

are

process as well as the destructiveunusual inflations since W. W. 1., a
labor leader analyzes various factors and forces which
to cause inflationary tendencies to have gotten out of

may see

in depth the

Other developments
lead

ing

State of Trade

emphasizes the fundamental obligations that people must as¬
in afree* society., The labor economist argues against con-

sume

free enterprise, prices

trols

over

why

wages

and

and develops

wages,

you

which
you

ence

hav-

■

case

various
riods

pe¬

real

solutions

propose

lems.

wonderful

and

our

world

are

attacked

that

eration

you

experiences

had

others

amongst

the aspects of inflation I do so ex¬

witnesses
Ludwig Rosenberg
in-m«"»M
»**»•»<*•

clusively

actual

and

these

that

only report

tions

witnesses

such develop¬

ments in countries other than the

United States.

May this country

of yours be saved from the dread¬

ful

experience the German peo¬
ple had several times and may all
parts of your population be aware
of the fact that inflation is not a

penalty sent

will

to direct

with

which

to condi¬
prevailing in

regard

were

Germany.

It might be that some
experinces we had may be
to you.
It might be

of the

interest

that

conclusions

some

had to

draw from those

experiences may
be both interesting and useful for
others.

All

can

all

and

trying to attempt to do is to
give you a fair picture of what
happened — why it happened —
am

tivity
have

been

lieved

Here, on the subject of infla¬
tion, I will first of all restrict my¬
self

real
inflation, i. e. the
swelling of the amount of
money circulating and the conse¬

actual

quent increase of the speed of cir¬

culation.

whole and on the Ger¬
people. It can never be the

describe

very

many as a

developments which lead to

man

valuation of the

task

visitor

know your
and social

who

does

not

1958.

de¬

As far

obvious that in

real

economy

modern

our

inflation

it might be correct to

structure, its mentality

call

such

development

manip¬

create

call

inflation

situation

money

inflation
of

and

which

which, all or some of
of such swelling will

effects

be felt by the economy of
country and by the people.

the

Germany

had twice the

.1923.

purchasing

really

| power

ern

the first gigantic

was

before.

expe¬
mod¬

ex¬

Neither

the

the population

nor

knowledge

the avalanche

Gods

once

against

were

taking and

S.WASS

the

have this day been admitted

value

had any
this phe¬

us.

finally landed at
was

which

The

expressed

that

1914

Limited Partner of

1
our

firm,

General Partner.

Goldman, Sachs & Co.
St. Louis

Albany

Chicago

Buffalo

new
car buying.
Then, too, personal
tending upward which should stimulate consumer buying

New

Year.

noticeably above

Post-Christmas

At least

volume

was

reported

■

of the

some

decline, it added, was due to the closing
of employment offices for Christmas.
However, the volume of new
claims, which is a rough indicator of layoffs, was far below the
recession-swelled total of 553,900 in the like week of 1957.
Thi number of workers
drawing unemployment compensation
in the

week ended Dec. 20 also declined
by 75,000 to 1.947,000, the
noted. Part of this drop also was attributed to re¬

department

scheduling of claimant reporting in anticipation of the holiday.
Reports on the number of workers'drawing benefits lags a week
behind those for new claims because
unemployed workers gen¬
erally do not get a payment until a week after filing a claim.
The decline in the number of workers
drawing compensation
dropped the total slightly below the 1,954,200 reported on the
corresponding week of 1957, the report added. The rate of insured
unemployment was 4.7% of those eligible, down from 4.3% the
week before but about the

same

year

earlier.

steel industry the steel market is
tightening up, "The
Age," national metahvorking weekly, reported yesterday. It

Iron

stated

that

there

quite

are

Among them,

few

straws

the

wind

this week.

midwestern mill already is doling out plates
on
an
allocation basis.
Another plate mill in the same area is
pushing the limit of practical capacity and is getting ready to
set up new order-to-delivery schedules.
One buyer who tried to
place January tonnage three weeks ago had his order bounced
a

into
to

February and March. The strength of the market is spreading
Pittsburgh and the East.

Some mills are warning their customers that hand-to-mouth
buying will be risky business from here on out and are advising

them to order farther ahead
short

critical

narrow

products.

run

Some

the chance

steel

users

of being caught
already have had

escapes.

country drill pipe and casing, and linepipe. Demand for sheet
and strip, galvanized sheets, and terne
plate is showing steady
improvement. Tinplate shipments will more than double in Jan¬
uary over a relatively slow December.
market

strength, "The Iron Age" further notes, is
inventory building and higher output levels in
Yet to come is the expected avalanche of orders as
hedge against a possible steel strike at mid-year.

based on moderate
users' plants.
a

More mills

tions

some

are

time

now

talking in terms of near-capacity

the first

half

the

year,

opera¬

but this trade

Continued

HALLE

page

STIEGLITZ,

AND

HENRY
are

HERRMAN

pleased

to announce

CO.

that

they have this day consolidated

value

with

the

U.S.-Dollar
Mark

shows

HALLE

World

one

War

dollar

started
worth

was

At the end of World War

1918

was

worth

December, 1921, it

was

Philadelphia
Detroit

Members Jiew

4.16

52 WALL

ST., NEW YORK 5

Tel. HAnover 2-9050

swelling of the
money by the
State

during the
quence of

war

and

the lost

war

conse¬

had taken

The inflation actually had
already started — but it was not
yet unlimited, uncontrolled, and

Continued

Tcr\ Stoc\ Exchange
48 COMMERCE

ST., NEWARK

Tel. Mitchell 2-5690

worth
GENERAL PARTNERS

Stanley J. Halle
William M.

page

Cahn, Jr.

George W. Nubel, Jr.

controlled

voluhie

STIEGLITZ

Marks.

173 Marks and by
December, 1922,
it was worth 6,750 Marks.

and

ESTABLISHED 1889

William D. Prosnitz
Stannard B. Knothe

J. Hindon Hyde

Robert A. Nubel

I
LIMITED PARTNERS
Louis Strauss

place.

January 1,1959

trade

year ago.

The country's employment situation shows that
claims for
unemployment compensation dropped by 17,900 in the week ended
Dec. 27 to a total of 393,500, United States
Department of Labor
reported.
''

Up to this point a creeping in¬
flation, a constant but still limited

Boston

the

opment:

Marks.

New York

by the tenor of December
income is
in

breath¬

level

When

as a

in the midwest and the strength of the market is spreading to
While output of cars and trucks were
lower the past week auto manufacturers are
definitely encouraged
up

Pittsburgh and the East.

astronomical figures.

firm.

WALTER E. SACHS

having retired

problems, business leaders in their
hope for the future, but refrain from

being unduly optimistic in their predictions.
Some of the bright spots
currently showing up include the
market which, according to "The Iron
Age," is tightening

ever increasing speed
of the Mark was re¬

clearly this extraordinary devel¬

such

it started.

duced until it

compared

has this day become

express

steel

a currency went on similar to the
unescapable fate of an old Greek
tragedy. It really seeme^ as if the

L. JAY TENENBAUM

announce

face

Thus the catastrophe of a com¬
plete destruction of the value of

L. GRANNON

JAMES D. ROBERTSON

We also

the

utterances

nomenon and both did not know
of any effective measures to
stop

JOHN W. CALLAGHAN

our

precise

ARTHUR G. ALTSCHUL

General Partners in

There

economy.

ample
state

We take pleasure in
announcing that

public

Current

consequence

-~T

markets.

Plot-rolled bar demand is picking up.. So is the market for oil

tion

industry which set-in in the third

year continues in evidence with
prospects encour¬
aging in the'months ahead, despite such disturbing factors as a
possible steel strike, problems of price and production, growing out
of such labor disputes, together with the
competition for world

some

in spite of the fact that a devalua¬
of

Index

quarter of last

Germany in 1921-1923

rience of real inflation in

HAROLD

conse¬

actual experience of such true in¬
flation. The first was from 1921 to

money

CHARLES

only

can

be brought about by an aet of the
State.
In one way or another it

this defini¬

goes,

by Mr. Rosenberg before
Meeting of the Institute
Insurance, New York City, Dec.

purchasing power

tion

•An address

Life

dif¬

country, its economic

the 20th Annual
of

of money.

very

In general peo¬
to call inflation all

used

are

it is

accept this determination

swell, that is "inflate" this volume

"inflation"

Production

In the

If you

quence

happened,

used

be¬

which

reasons

development.
Modern Economic Science, how-.
ever, rejects this theory and prac¬
tical experience has proved them
right.

the

term

who

employment also

the

is the State which must
by
ulation of the volume of

Defines Inflation
The

full

might lead to such

ple

why

I ask you to

lecture.

economists

that

one

ferent situations.

Germany,

this spirit that

any

connected

what consequences it had on Ger¬

is in

con¬

of an increase of produc¬
with it.
There

omy and

often

and what consequences it had and
the lessons we drew from it.
It

avoid

men

inflationary trends are a
constant and slowly progressing
devaluation of purchasing power
which is often directly the con¬
sequence of an expansive econ¬

mankind by the
by accident but
that it lies within the power of
man to create it and to prevent it.
It is certainly not my task to
tell you what to do and if I grate¬
fully accepted your very kind in¬
vitation so for the sole purpose of
informing you of what happened
fate

and

These

was

If, therefore I am trying to at¬
tempt to convey to you some of

auto¬

such undesirable developments.-

the

community—but
take into consid¬

that

stopped and—as I said already

trol,

problems

solved

Ration
can

at¬

under similar conditions.

from

abroad

have

most

things in

similar

and

pie

the

one

very

forced

there

—it is in the hands of

fact

matic force in them which cannot

world—it

different
everybody can

the

might be in different parts of the

fortunate as7
invite peo-,

inflation—that

conditions

varying way. All we can do
is to support each other in ex¬
changing our experiences. No one
can
simply
transfer methods
adopted somewhere else into a

May I ex¬
press the hope
that you will
always be so

aware

these trends must not lead to real

prob¬

your

most

inflation.

similar

devel¬

used to call such

are

opments today "inflationary
trends" but we should be con¬

reactions of its people to

the

tractive

actually
lived through
n

and

Price

Auto

J
The recovery in trade and

becomes Increas¬

ingly strong, and thus they .may
indirectly prepare the path for a
true inflation—but by themselves
they are not a real inflation.

connot be held responsible for Germany's inflation.

position to convey to
something of an experience
is fortunately unknown to
and your country: the experi¬

Industry

Food

Business Failures

of money might finally

money

stantly
I

purchas¬

Trade

ume

government, and

Retail

Commodity Price Index

situation where the temp¬
tation to swell or inflate the vol¬

Mr. Rosenberg flatly declares "the State can create
inflation. It's the State who can prevent it."
He, thus, ;/

and

which also

devaluation

power

create

control.

places direct responsibility for inflation

Production

Electric Output

Carloading3

the

of his country's two

ness

Steel

The

money

Thursday, January 8, 1959

■

characteristic

flate—and it is really the swelling
of
the
volume
of
money
and

Unions

Trade

actual

of inflation.

By LUDWIG ROSENBERG*
Member,

the

not

January 1, 1959.

Louis G. Strasser

Volume

Number 5810

189

.The Commercial and Financial Chronicle

(101)

greener

Street
that

Observations

fund-promotion

and

bullish and
Instead

tors.
we

will

of
value
foresaking
In "thought," "pol¬
icy," and action it has in one way
or
another gone whole-hog after
the capital
gain — a respectable

abdication

depict

Before

quantitative

seeming to

this,

be'

mo s

income

look

attributes

index;

a year ago

market's

readers, along
with the pub¬
A.

Wilfred

will no
apply
their
own
respective

the

Standard

they

Poor's

were

4%%

(itself meager enough). Equally
significant is the. substantial dis¬
parity between this 3*4% return
satisfying equity holders and the
4.1% available from Moody's triple

Our

lic,

the

note its "quantifica¬
currently low yields
down to 3%%, on the 500

stocks

status.

May

A bonds.

doubt

bullish or
bearish interpretations, if too often
following the crowd's psychology

The

"expanded"

common

valuation

stocks

demonstrated

"quantitatively" in these yields,
of the time.
along with high price-earnings
Moreover;
we
propose
giving ratios (even after allowing for
only negligible weight to the ex¬ future growth or recovery-fromternal
non-market factors, since recession
earnings), superficial
their
interpretation market-wise appraisal
of
asset
items, and
by the community is geared to the zooming market advances; seem¬
current atmosphere, usually fash¬
ingly result from a variety of psy¬
ioned to fit the market's move¬ chological excesses.
ment. Thus, for example, the pos¬
sibility of stepped-up war tension, b Eager-Beaverism in Respecting
now

overlooked midst the market

will at next year-end be
still interpreted as economically
stimulating if the market is up.
boom,

should
the
market
have
fallen, the identical
event will be spoken of as "of
But,

meanwhile

course

bearish because of restric¬

tions and the threat to capitalism."

Similarly, an easing of interna¬
tension, with a reduction
of defense spending, would like¬
tional

wise

entail

double standard of

market-wise. It
hand, serve to
"explain" a bull market move¬
ment
(after
the
event)
since
"peace of course is bullish"; or
with
equal conviction, be con¬
versely interpreted as deflation¬
ary in the event of an intervening

interpretation
would, on the

one

market decline.
Atthis

crucial

time

particularly,

determinant

market movements

within

the

market

the

imminent

essentially lies
itself, and its

attending psychological attributes.
Rampant is a fast growing crop
of
boom
foibles, together with
their deft rationalization by some
individuals

who

worry over

the excesses.

are

inclined

the

While long-term rise in the ac¬
ceptability of the equity share
both by itself and in relation to
bonds, has, in line with prior
worldwide
experience, been in
order, we are now perhaps too
far on the "eager-beaver" side.

public's

reminiscent

propagated

the

credo

EVENTS

1920's

widely
via

Investment

Field

the

Jan. 15,

1959 (Philadelphia, Pa.)
Philadelphia Securities Associa¬
tion annual meeting and dinner

Long-Term
InvestOnly it has not been

stock-selection, now imparted to realized that the long-plaving Mr.
reclining
against, a
a
harkreclining against
back
Smith, seeing his thesis over-ex-

at the Warwick Hotel.

ground of mutual fund posters on
his
shop
wall.
(The
adjoining

plotted,

bootblack, the 1929 goat,
be still unimpressed.)

1929

six

seems to

himself

months

turned

before

Ja£*
■}$» 1959-(Baltim<ore, Md.)
Baltimore

bearish

the

Security Traders
rr^— As¬

October

sociation 24th annual dinner at

unpleasantness.

the Southern Hotel.

Behind That "Confidence" Posture
The Inflation Psychosis—Market

Before

Bulwark Number One

regimented

Perhaps most importantly supporting
the
hunger
for
stock
"New Era-wise" is the rampant
Inflation Psychosis—ignoring the
past cyclical course of the general
price level and its actual impact
the

stock market.

This

over-

emphasis on spending-and-'Tnflation" as a market factor, routinely
mouthed in practically every piece
of
market
literature, feeds the
popular distaste for bonds evidenced in the above cited disparity
in the bond-stock yield ratio.
"New

you

Jan. 29, 1959

(Chicago, 111.)
Security Traders Association of
Chicago annual winter dinner

immovably

become

into

that

posture

Confidence (the popularly ascribed
°f *he fantastic multipliers
rnaking the prevalent unrewarding
price-earnings ratios), you might
Ponder over just
ponderables,
ov!f. ls

few of the

new

additionally

Iv-ices^

Market

the

Investment Traders Association
of

are

course

factors

variety of

the

promoting

absence of margined-holding then
Sqrve to prevent liquidation?
•
^
*

Drm^a^The^eamtain^eainsS^tax
manv

Presumably the application of
scme loSical standards to the
stock market is not entirely out
infla- o£ order; since doillSs may still be
Chips »? the Pre-bootblack, post-barber

investors into stocks

which'enormous

naoer

Aeain

Drofits

Philadelphia annual dinner at

the Bellevue-Stratford Hotel.

April 1-3,1959 (San Antonio,Tex.)
Texas
,

Group o f Investment
Association of Amer¬

Bankers

ica annual
Hotel.

meeting at the Hilton
.

Nov. 2-5, 1959

•

(Boca Raton, Flft.)

National Security Traders Asso¬
ciation Annual Convention at
the Boca Raton Club.

Clayton Securities
Official Changes

main unruffled? Will the vaunted

Pyramid

„

There

ciation 35th annual dinner at the

Era"-type

Building

g, 1959 (Boston;. Mass.)

Boston Securities Traders Asso¬
Sheraton Plaze Hotel.

thinking has
spilled over into rationalizing the
^
^
changed status of business as a actlvlty ana setting P^ces.
market support. Thus, one of our
Should there be even a temleading lay weeklies in justifying porary drop in the earnings oi
the great bull market, hails the th?se impregnable "growth chips,"
supposed change to a depression- with their lunar- and solar-spheric
price-earnings
ratios,
will that
proof non-cyclical economy.
underpinning of confidence re¬

freeze's

at the Sheraton Hotel.

Feb

Feb. 27,1959 (Philadelphia, Pa.)

liberalized Congress going to afbusiness; (including the now
*a*"~av?,red oi* companies)?
Will there be an assault on corP°rate earnings — perhaps from
more Federal spending with increased taxes and higher costs; or

BOSTON, Mass.—Calvin W.
Clayton has been elected presi-

dent and treasurer of Clayton Securities Corporation, 79 Milk St.
C. Comstock Clayton has been
named chairman; Kathryn V. Mc-

tionary buying of the Blue
Go Id rick, vice-president and
clerk; and Harold D. O'Brien as¬
by
the
glamorized
public
is sta&e'
sistant clerk and cashier.
further pyramided by the expert
Note such items as the mutual fund
managers'
perhaps
unfund craze, now at an all time glamorized, but nonetheless com¬
peak; the increased devotion of petitive,
flight
into
the
same
other
"pools"
to
the
common
name issues.
(Spccial to The Financial Chronicle)
stock,
including pension funds,
All this feeds that age-old foible
who
together with other trust
PORTLAND, Ore. —Harold D. V SAN FRANCISCO, Calif.—Wmabout "scarcity value," character¬
entities
are
frenetically raising
Christianson
is
now
associated E. Pollock & Co., Inc., dealers in
istic of booms in all fields. Here
their portfolios' stock-proportion
with Zilka, Smither & Co., Inc., United States Government securiin the stock market area it proceilings; the mounting agitation mth
<TVhat "i?ood stocks 813 Southwest Alder, members of ties, announced the opening of ait
for, and actual initiation of the
nhuan ot
nripp »
riniv
the Pacific Coast Stock Exchange, office at 315 Montgomery Street,
are cheap at any price.
Only a j^e was
Variable
Annuity technique
formerly in the trading under the management of William
which subjects insurance policy slight variation of this credo is
department of the First National C. Nichols. Mr. Nichols was for*
returns to dependence on stock involved in the
Split mania, which Bank of Portland.
'
•:
merly with the Bank of America.
market quotations; and the public's
avid appetite for the market serv¬
ices of various kinds, highlighted
by the moneys and efforts ex¬
pended in their profitable promo¬
We are

H. D. Christianson With

W. E. Pollock Opens
San Francisco Branch

Zilka, Smither & Co.

™

onv

pleased to

tion.
to the

Trek

New

Wall

Street

announce

the securities business

Mecca

Auxiliary

the

public's

ing
of

(and

that

ap¬

McANDREW

Co.

Incorporated

ties business.

quite

COMING

clients

specific

Stock

at-

of bulls'
best-selling
bible, Edgar
peddling Lawrence Smith's "Common

petite for the common stock, is its
growing attraction for the securi¬

Basic in the present stock boom

Common

price

The Flight From Value

atmosphere

the

splittable

pie-in-the-sky attitude is nastily

filling stationing.

return.

in the

—now

peak

and

some

we may

tion"

importantly
this

from

manifestations

characteristic
of

investor

the

with

concern

the

some

complete

consideration.

term
for
making-a-fast-buck.
Coupled therewith is a complete

fac¬

that

taches the "good" value to a stock
~'the higher the cheaper."
Surely much of this present

And, again Stocks
the barber has gained the knack of ments."

"Not Another 1929"—But 1928?

bearish

instead

the traditional insurance

THE STOCK MARKET IN 1959

start-of-the-year look at
we are foregoing
our customary confinement to
a
mere un-editorialized listing of an
equal number

holds

editing; and with baseball stars
switch-hitting to market-advising
and

In this

Wall

exodus

of easier money from

occupations
ranging
from
the
tough textile business to magazine

By A. WILFRED MAY

the stock market

with

the

appearance

field,

mecca

Particularly alarm¬
specifically reminiscent
Twenties) is the

Sail Francisco,

California

the Nineteen

will

now

be conducted

Cruttenden, Podesta & Co.
We take

pleasure in announcing that

Mr.

Philip V. Mohaij

NEW YORK

Through this new San Francisco office

OFFICES

BRANCH

and

our

SAN FRANCISCO

are

0ENVER

LINCOLN

firm

effective January 2, 1959

CEDAR RAPIDS

GRAND RAPIDS

&■

equipped than

tatives in 14 offices and

MILWAUKEE

Chas. E. Ouincey

better

ever to

rect San

ST. PAUL

and

over

represen¬

50 communities. The

satisfactory quotations and transmittal of orders

all listed and unlisted securities

FORT WAYNE

new

Securities of

•

Cruttenden, Podesta

New York 4, N. Y.

5Members Tiew york Stock Exchange and Other Principal

and its Instrumentalities

209

South LaSalle Street

•

Exchanges

Chicago 4, Illinois

Members:
New York

Stock Exchange

American Stock

Exchange

DEarborn 2-0500

including Municipal bonds.

Co.

The United States Government

di¬

Francisco-Chicago-New York wire insures rapid

ESTABLISHED 1887

25 Broad Street

provide broad and far-

reaching retail distribution with 135 registered

Ceneral Partners
OMAHA

have extended

INDIANAPOLIS

ST. LOUIS

to our

activity into the vital Pacific Coast Region. Now

MADISON

Mr. John H. Excoffier
have been admitted

Teletype CG-35

Co.

The Commercial and Financial Chronicle

(102)

Motorola: A Mature and

complete line of TV sets, with an

principal of which is the transis¬

established

tor.

with

Containing

notes

some

the magnitude of the market in

rent comment on
You

cur¬

All of which is

the product of,

not

and nurtured by, a

enter¬

and

construed

but

mere¬

rather

t i

the

hat, in

munities,

have

Ira

Some

addition, of course, it does a
substantial volume in parts,
for

units

and

Cebleifh

older

cars

all

makes.

Naturally this
business
ren
spend 10 or 12 hours each depends heavily on conditions in
the motor industry; and with the
week facing the 50
million TV
car
sales in
1958
sets existing in our "affluent so¬ disappointing
ciety" and there is a broad seg¬ (4,300,000 units), Motorola earn¬
ment of public opinion holding ings from this division fell off
that television has miserably neg¬ sharply. Not only was the motor
car
trade pobr in 1958, but the
lected its obvious educational op¬
sales of home, clock, and portable
portunities.
radio units were sharply reduced
However that may be, we do
have a vast TV industry with, all by the severe recession in durable
consumer goods.
told, 530 stations including 35
In television sets the story was
educational and non-commercial
channels.
And
radio, far from much the same — declining sales,
child¬

languishing

honeycombs

our

the

vine,

nation with 3,850

and

stations.

lower level of

Motorola

profitability.

major

maker

in,., the

field.

wit, HI-FI.
Motorola
first to enter the

stereophonic phono¬
Opening in a"
July, with a port¬
able three piece stereo set, priced
at
$159.95, the- company would
have been happy to settle for a ;
sale, in 1958, of 10,000 units. Ac¬
in

tually, however, the model really
struck pay dirt and over 72,000
sets
were
sold, and
a
healthy
built

1959.

The

management

now

for

Financial
is

position

.' excellent

with

Motorola
working

of
net

capital running above $50 million
—easily ample for financing the
$5
million
total
of
expansion
planned for this year, and indi¬

contribution

net

The rale for the past six

ruption.

has been $1.50 which,

years

profit in the later months. Moto¬

duces

rola

the

market! price of 60, pro-,
2.5% yields On the. face

present
a

it,- that return might not ap¬
pear attractive but (1) electronic

1958.

Motorola

Thursday, January 8, 1959

sistors, and its latest portable TV ! stocks in today's market all sell
14-inch
battery
operated,
all on a very low yield basis and (2)
set
transistor
(announced
last the'> plow back of net earnings
summer) -should add measurably i is creating a much broader base
to. the Yd'emaftd for semi-conduc¬ for future
earnings and (3) there
tors. Motorola hopes to be able to is>. a
reasonable expectation that
mass
produce this model at a an ..extra cjasli /^vid^d ' may be
popular price a year hence.
paid»ih 1959.', This:! year-may well
1, The foregoing, in swift outline, be, the best dn ;the. entire
histbry
catalogs the product-mix at Moto¬ of Motorola! carrying ^sales' tor a
Now

rola.

what

about

earnings

and'jpr6speets?
I y .TheEarnings Picture

The first three quarters of 1958

admittedly,

(above the $227.6 mil¬

1956), and net

per .share
above the' $4.39 recorded in 1955.

j .

Sensibly

the dreary
side.-This.nine month period pro¬
were,

high

new

lion

■

Market wise

Priced

MOT is

sen¬

that ''stereo" is the hottest
sibly priced than most electronics.
thing in the whole industry, and duced sales of $137 million, and a Many such sell at from 25 to 45
believes that fancy sets costing Up. per share net of* $1.66, as against times earnings, while MOT sells
to

$5,000

find

can

$226 million in sales and $4.04

buyers.

eager

per
share in net for the full year 1957.
Since
September,
however,
a
sharp turnabout occurred and a

The $12 million advertising budget
at Motorola will be heavily slant¬
ed

toward

Executive

stereo

this

and

year;

Vice-President

Edwin

fourth

resurgent

quarter

will

Taylor, expects industry-wide probably carry the sales total, for
stereophonic set sales to zoom the year, past the $200 million

from

750,000

units

1958

mark;

above 3,000,000 this year.

and

other half

recent

mobile

rola

has

pioneered

nized

and

leader, doing

the

business

the

its

entire

suggests

buying

the

strongly

Moto¬
belief

overcome

recession, and
line, inven¬

product

tories well below

in¬

from

has

company

fine

that the

interest

stems

particular

own

with

recog¬

than half

the

that

Motorola

which

common

year

rising

and

ago,

sales

only

19 times its current net.

If it continues to sell

ratio,
tion

the

same

and does earn $4.50 this
the indicated market quota¬

year,

would

range

the

above 85.

past

six

Market

years

has

been between 29 and 61.

per

are

All

from transistors,

communications

Final quarter re¬
expected to reveal net
earnings of over $1.50 per share.
sults

comes

generate

net of above $3.

(the TV, radio
and
Hi-Fi
items)
account for
about half of Motorola sales; the

Consumer goods

communication,
industrial
and
adjustments in swollen inventory, military electronics. In two-way

now

levels,

and

has, quite obviously,' a very
large "captive" market for tran¬

there

1958,

among the

feels

very

our

tronics—to
was

backlog

was a very bright spot in the re¬
lated field of entertainment elec¬

able

bath

side

soggy

sets delivered in new Ford, Chrys¬

tele¬

the

ler and American Motors' models.

tubs

phones.

it has

years for use in motor cars.
business is still very
im¬
portant to the company and Moto¬
rola today supplies the auto radio

sets than
or

of radios

This

com¬

While TV and radio sales were
on

graphs

the

many

sizable

millions

hard

research

doubling present facil¬
pointing the way to a

year,

ities, and

modest way in

manufactured and distributed over

fact

this

market with

Motorola is earliest remembered

for the

drawn

o n

today,

Adversely Affected in 1958

stark observa-

irorh

discussion

for

Motorola, Inc.

argument
against liter¬

acy

topic

our

been

the

cating no need for public financ¬
into the profit column.. The tran¬
ing in the near term future.
;J
sistor plant at Phoenix,- Arizona,\ % Since 1941
Motorola, Inc. has
is slated lor a $1,500,000 expansion :; paid cash,
diyidends without, inter¬

Stereophonic Pioneer

vast entertain¬
tained
in
America
today even ment electronics industry led by
though you can't read or write. Radio Corp. of America, Columbia
Broadcasting, Philco, Zenith and
This statement
informed

and

well

production

significant

Motorola, Inc.

to keep fairly

manage

can

favorable

has

Transistor production by Motorola

by "snow;" flutters, and fadeouts,
resulting
in
expensive
repair
charges, this company guaranty
by Motorola is proving a most
persuasive sales argument.

electronics, together with some

entertainment

•

both

ranty in the business today! With increased, in 1958, by 100% over
thousands of TV set users beset; 1957, but is just beginning to get

By DR. IRA U. COB LEIGH

Enterprise Economist

Motorola

work,

which it now backs
full year's warranty—be¬
to be the only such war¬

lieved

Resurgent Electronic Equity

reputation for quality

product,

In the intensive selective search
which prudent

conducting
riot

taken

investors

for
off

stocks

are

that

now

have

gaudy flights
from
statistical
realities, Moto¬
rola, Inc. may merit a detailed
analysis. You might, for instance,
on

to compare MOT with Inter¬
national Telephone, another elec¬
tronic issue in the same price

range.

curve

;
Happy. New Year— and may all
dustry. This is a rapidly growing should
prosper
handsomely
in your .stocks be IBMs!
highly profitable segment of 1.959. The President, Mr. Robert
comp a ny activity.
Microwave W. Galvin, is of that opinion. He
business may be greatly expand¬ recently stated: "Our cost cut¬
ed if certain restrictions are re¬ ting plan is just now
beginning to
moved by the Federal Communi¬ yield
a
harvest
asi production
cations
Commission;
and
radio schedules turn upward.". It is pay->,
controlled
traffic light
systems, ing off where stockholders like it
BOSTON, Mass: — Richard L.
operated by microwave; are be¬ best—in higher net,.7profits per Bowser and Dudley F. Wade have
lieved to have a bright future.
dollar of sales. ;
become
partners
of) the
State
.-;-v, ,
■
•

and

WE ARE PLEASED TO ANNOUNCE THE ELECTION OF

Mr.

William

Admits Bowser & Wade

VICE

State Street Research

Torgersen

PRESIDENT

Street

Military electronics account for
AND

over

20%

include

Mr.

Warren

SECRETARY

Oltmanns

THIS CORPORATION

Motorola

many

items

sales,

vital

rocket and missile

aviation,

pro¬

and

The

One

weigold

Co.

INCORPORATED

JANUARY

Wall

Street,

New

term

ground

common

communication

the most rapidly

by... 1,935,131

equity

held

the

within .the fam¬

President

Board Chairman.
grow¬

Street

to know that

dustry is in semi-conductors, i the

and

the

It's always

nice

somebody who really

Management

are

Stephen' Heard,

pleased to

announce

Buros.

•

that

announces

for

our

partnership

firm

Senior Partner

many years our

has become

Limited Partner

JOHN C. HOYT

MAURICE SCHWARZ, JR.

■

■-

•

has been admitted

as a

General Partner
with
,

STEIN
:

'
.

ROE

FARNHAM

headquarters in
4.1}

;

135

Soutli La Salle Street

Chicago
January

i, 1959

6o Broadway
New York

.y!

Resident Partner in

our

Beverly Hills Office

Office

FRANCISCO

•

LOS ANGELES
i.-

SAN JOSE
(

•

NEW YORK
-•

BEVERLY HILLS

•

HAYWARD

Members

New York Stock Exchange
.

as a

General Partner and will be

•

San Francisco

SAN

Investment Counsel

SIDNEY L. SCHWARTZ

EDWARD A. BLECHSCHMIDT
has been admitted to

that

•

Pacific Coast Stock Exchange

American Stock Exchange (Associate)

William

Mor—-

ton, George F. Bennett and Allan

SUTRO &> CO.
are

Com¬

Paul C. Cabot, Richard
C.'Paine, R i c h a r d SalionstalU

is tending the store!

cares,

Research

pany

since .wr,n

Jle

Cor¬

Bowser has been with State Street

1959

managers

Investment

poration and Harvard

York

Management

shares. ! The

ilies vof

the electronic | in¬

'■.■.r

investment

Motorola

the

in long-

State

lor

top officers since 1951.
Mr- Wade has also,
certainly believe in been with State Street since 1951.1
their company, with about 25% ofV * Other
jpa rtners of; State Street
at

Profitable Transistor !

ing outputs of

debt, followed

Research

Company,

of .: Motorola

quite simple: $19 million

grams — airborne navigation
equipment, missile guidance sys¬
tems, airborne radar, radar bea¬
cons

Investments

Capitalization

our

systems.

Chas.

Personal

and

This announcement is not

offer oj securities for sale

or a

solicitation of an offer to buy securities.

New Issue

January 7r 1959

$200,000,000

Power Authority of the State of New

York

General Revenue Bonds, Series E
Interest exempt;

in the opinion of Messrs. Hawkins, Delafield & Wood and of Messrs. Sullivan, Donovan,
Hanrahan," McGovern & Lane, bond counsel to the Authority and to the Underwriters,

respectively, under the existing statute and court decisions from Federal income
and under existing statutes from New York State income

taxes,

tax.

$168,000,000 4.20% Bonds, due January 1, 2006
'

Price 100%

$32,000,000 3.75% Serial Bonds
Principal

Due

amount

January 1

Price

$1,725,000

1965

2,000,000

1966

3.20%
3.30%

2,300,000

1967

3.40%

2,175,000

1968

3.50%

2,250,000

1969

3.60%

2,350,000

1970

3.70%

2.425,000

1971

100

are

Due

Price

■

January 1

amount

• i

yield

100

$2,525,000 '

1972

2,625,000

1973

3.80%

2,750,000

1974

3.85%

2,850,000

1975

3.90%

1976

3.90%

1977

3.90%

2,950,000

3,075,000

Accrued interest from January 1, 1959 is to

The Bonds

•'1

Principal

yield

be added to the prices.

as a whole or in part, at any time on and after January 1, 1970,
\rb-V^:.;'/vas set forth in the Authority's Official Statement.

subject to redemption,

Copies of the Circular dated .January 5,1959, which contains further information, including the Official Statement of
the Authority, may he obtainedfrom such of the undersiyned as are registered dealers in securities
in this State. The undersigned are among the, t 'nderwrilcrs. '

Dillon, Read & Co. Inc.

W. H. Morton & Co.

Kuhn, Loeb & Co.

Halsey, Stuart & Co. Inc.

■

Incorporated

•
.

Goldman, Sachs & Co.

Glore, Forgan & Co.

The First Boston Corporation

Eastman Dillon, Union Securities & Co.

Drexel & Co.

Blyth & Co., Inc.

■

Harriman Ripley & Co.
'

Ladenburg, Thalmann & Co.

Kidder, Peabody & Co.

Incorporated

Allyn and Company

White, Weld & Co.

Equitable Securities Corporation

C. J. Devine & Co.

Alex. Brown & Sons

R. W. Pressprich & Co.

Smith

B. J. Van Ingen & Co. Inc.

Stone & Webster Securities Corporation

Smith, Barney & Co.
A. C.

Merrill Lynch, Pierce, Fenner &

Lehman Brothers

Lazard Freres & Co.

Incorporated

Shields & Company

Reynolds & Co.

Phelps, Fenn & Co.
Bear, Stearns & Co.

Ira Haupt

Estabrook & Co.

Blair & Co.

& Co.

Hemphill, Noyes & Co.

Incorporated

Hornblower & Weeks

W. C.

Adams, McEntee & Co., Inc.
A. G. Becker & Co.
Incorporated

Eldredge & Co., Inc.
A. M. Kidder & Co.,

...

Dick & Merle-Smith

R. S. Dickson & Company

Geo. B. Gibbons & Company

Bacon, Stevenson & Co.

Barr Brothers & Co.

Dominick & Dominick

Francis I. duPont & Co.

Gregory & Sons

Schoellkopf, Hutton & Pomeroy, Inc.

G. H. Walker & Co.

Weeden & Co.

Braun, Bosworth & Co.

J. Barth & Co.

John W. Clarke & Co.

The Illinois Company

McDonald & Company

Incorporated

Stifel, Nicolaus & Company

Chas. E.

Baxter &

Company

Coffin & Burr

Weigold & Co.

Incorporated

William Blair & Company

J. C. Bradford & Co.

Hayden, Stone & Co.

Hirsch & Co.

Incorporated

Riter & Co.

Incorporated

Bacon, Whipple & Co.

Kean,Taylor & Co.

Wm. E. Pollock & Co., Inc.

Incorporated

Allen & Company

W. E. Hutton & Co.

Incorporated

Laurence M. Marks & Co.

Inc.<

Wood, Struthers & Co.

/Incorporated

First of Michigan Corporation

Roosevelt & Cross

Bache & Co.

-American Securities Corporation

Clark, Dodge & Co.
'

Dean Witter & Co.

F. S. Smithers & Co.

L. F. Rothschild & Co.

Paine, Webber, Jackson & Curtis

F. S. Moseley & Co.

Lee Higginson Corporation

Langley & Co.

The

Schwabacher & Co.

Robinson-Humphrey Company, Inc.
•

Spencer Trask & Co.

Tucker, Anthony & R. L. Day

Van

Alstyne, Noel & Co.

(104)

The Commercial and Financial Chronicle

Thursday, January 8, 1959

judgment

in
supporting Eisen¬
proposals, but it is ex¬
tremely doubtful if anybody else
hower's

From

Dealer-Broker Investment
Recommendations & Literature

It is understood that the firms mentioned
send interested parties the

will

be pleased

following literature:

Atomic "Letter No. 44—Discussion of

projects for nuclear

pro¬

pulsion of rockets and earth satellites with particular com¬
ments on Tracerlab, Inc. and
Combustion Engineering:—
Atomic Development Securities Co., Inc., 1033 Thirtieth
Street, N. W., Washington 7, D. C.
Monthly Investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬

Burnham View

—

able is current Foreign Letter
Canada—Year end

letter—C. M.

Oliver &

Co. Ltd.,

821 West

Hastings Street, Vancouver 1, B. C., Canada.
Canada—Year end review—E.

Saunders

Limited, Victory

Building, Toronto 1, Out., Canada.
Forecast for

the

Coming Year—In

New York 6,

High

Yielding

Beane, 115 Broadway,

N. Y.
Good

Equities—Selected

Quality

list

30—

Gude, Winmill & Co., One Wall Street, New York 5, N. Y.
How to Use Options—Descriptive
booklet—Filer, Schmidt &
Co., 120 Broadway, New York 5, N Y
Insurance Stocks—1959 reappraisal—Robert H. Huff &
Co.,
210 West Seventh Street, Los Angeles
14, Calif.
Japanese Stocks
Current information — Yamalchi Securities

could

New York.

Keeping Up—Developments in electronics—Television Shares
Management Corp., 135 South La Salle Street, Chicago 3, 111.
New England Trends—Bulletin—First National Bank of
Boston,

much

d i f-

Senate

who

port.

l'erence
leads

them.

debted

their

defeat

feel

much

its

did

1956

was

Carlisle

Bargeron

Eisenhower
made

"liberal"

Eisenhower.
known

true

man.

that

made

Dirksen has been practically
man for the President.

down

little

affection

path of defeat

to the Hill. No one

has

than
acted

Several

times

against

his

Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
yield

and

market

performance

over

19-year

National Quotation Bureau, Inc., 46 Front
4. N Y
Public

Utility

period

Golden

Common

—

Exempt Bonds—Bulletin—Park, Ryan, Inc., 70 Pine Street,
5, N. Y.

123 South La

Hiekey,

Gas

Chemirad Corporation—Report—P. W. Brooks
& Co., Inc., 115
Broadway, New York 6, N. Y.
C & O Flash Annual
iieport for 1958 and the 1959 Chessie
Calendar
Chesapeake and Ohio Railway, 3850 Terminal

rado Fuel & Iron, National
Distillers &
McRee. i

Chemical, and Royal

Columbus Electronics
Corporation—Analysis—Sano &
.-William Street, New York
5, N. Y.
Cook

Coffee

Co.—Memorandum—A. G. Becker
Street, Chicago 3, 111.

120 South La Salle

in current

Co.,

Drydock

there

ful.

Botany Mills—Report—Lerner & Co.,
Boston 9, Mass.
&

defeated

lot.

better

but

the next

served

ambassador

said

about

have

job than
whom

done

Chester
heard

But I

surprised that Cooper

is enough of a "liberal" to become,
their leader. He is quite inter¬

Steel—Bulletin—Ralph E. Samuel & Co., 115 Broadway,

national minded

Van Raalte

Company, Inc.—Reprint of talk by the President
before the New York
Society of Security Analysts—Peter
P. McDermott & Co., 42 Broadway, New York
4, N. Y.

domestic

affairs

planted

elected

though

that

But

has

upon

perhaps is

field.

well

look

oddity

that

very

would

and

"liberal"

his

on.,
feet

the ground.

him

has

been

democratic state,

al¬

Republican.

Cruttenden, Podesta
Absorbs McAndrew Co.
SAN FRANCISCO, Calif.—
Cruttenden, Podesta & Co., mem¬
bers

& Distribution

soon

around.

state,

short-term

Co.—Memorandum—Woodcock, Hess,
Moyer & Co., 123 South Broad Street, Philadelphia 9, Pa.

(a) Operating Utilities

and

Bowles

Motor Company—Report—Loewi & Co.
Incorpo¬
rated, 225 East Mason Street, Milwaukee 2, Wis. Also avail¬
able is a report on Lakeside
Laboratories, Inc.

Transmission, Production

while

men

Coming

Democratic

came

much

56 Beaver

of the ablest
.

served

once

India

Co., 29

Westinghouse Air Brake—Report—Thomson &
McKinnon,
Wall Street, New York 5, N. Y.

stage

Sherman Cooper of

one

normal

for

Broadway, New York 6, N. Y.
Dynamics—Memorandum—Simmons & Co.,
Street, New York 5, N. Y.

back

another

whom the Republicans
to
succeed
Dirksen,

John

election

...

Company—Report—Schweickart

talk

He is an in and outer.

from

a memorandum on Northern

Office Square,

effort

in the Senate.
•

Waukesha

(b) -Natural Gas Companies

man

Senator

Also available is report on National Vulcanized Fibre.

Firm Trading Markets in-

been

nominated

New York 6, N. Y.

Inc

manuverings for the
the
Senate
side

has

The

was
vs.

the

Kentucky, is

Turbo

U. S.

attendant

operator.

Stieglitz,

United Gas Improvement

Co., 15

upheaval

effort to remove him. Al¬
though still a relatively young
man, Bridges is the oldest Repub¬
lican in point of service and his
voice is probably the most power¬

Corporation—Analysis—Hayden, Stone & Co.,

Studebaker-Packard

lot

of any

States Power Co.

over

leave

Congress one leader
have come through un¬

leadership

Hannifin—Memorandum—Kidder, Peabody & Co., 17

Oil, and Armour & Co. and

all

Co.—Memorandum—

World

Paper

best

victory

He
is
Senator
Styles
Bridges of New Hampshire, chair¬
man
of the policy committee. In

Street, New York 5, N. Y.

Post

his

new

seems

Street, New York 4, N. Y. Also available is the
monthly investment letter with data on Ford Motors, Rich¬

back stage

is
to

now.

the

upon

His

bound

air the

"ABC Invest¬

Airways—Analysis—Halle
Street, New York 5, N. Y.

Sutherland

Clevite Corp.—Data—du Pont,
Homsey & Co., 31 Milk Street,
Boston 9, Mass. Also in the same
circular are data on Colo¬

Hentz

Broad

field

than it is

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

Parker Hannifin

one

was

feeling that will tend to
the party more demoralized

make

•

Wall

—

Tower, Cleveland 1, Ohio.

Oil Industries—Review

American

Po¬

desta & Co,, 209 South La Salle
Street, Chicago 4, 111.
Chemetron Corp.—Review—Hirsch &
Co., 25 Broad Street,
New York 4, N. Y.
Also in the same pamphlet are reviews
of Clevite Corporation and Revere
Copper & Brass.

Co.—Memorandum—H.

dations.

Pan

scathed.

Shoe

Newport News Shipbuilding
&

ill

Lighting Co., Standard Oil of Indiana; Pan American
Sulphur Co., and Delhi Taylor Oil Corp., and a tabulation
of the performance record of Amott Bakers 1958 recommen¬

Parker

Corp.—Memorandum—Cruttenden,

Co., 36 Wall Street, New

Letter"—Amott, Baker & Co. Inc., 150 Broadway, New
38, N. Y. Also in the same issue are data on Long

Walston

floor.

Martin

Island

Broadway,

4, N. Y.

Natural

York

American Radiator & Standard Sanitary
Corp.-—Data—Oppenheimer, Neu & Co., 120 Broadway, New York 5, N. Y. Also
in the same circular are data on
Douglas Aircraft Co., Olin
Mathieson Chemical Corp., Pacific Petroleums
Ltd., Pitts¬
burgh Coke & Chemical Co., and Union Pacific Railroad Co.
Baltimore & Ohio—Report—Vilas
&
New York

ment

Survey—Bulletin—Halsey, Stuart & Co. Inc.,
Salle Street, Chicago 90, 111.
*

Carolina

the

Halleck

operator.

Street, New York 5, N. Y.

Kerr McGee

how.

see

Martin is

better

City Steel—Analysis—Reynolds & Co., 120 Broadway,
New York 5, N. Y. Also available is a
report on Sanborn
Company.
Wall

Pos¬

Both his mother and father were

Mines, Ltd.—Report—Arthur I. Korn & Co., 30
Street, New York 22, N. Y.

International

House, almost

leaders had.

practicing lawyers and Charlie is
a Phi Beta
Kappa.

Granite

New York

Year End Bond

Age

East 60th

as one

this year.

Street, New York

Stocks—Comparative figures—G.
Co., Inc., 52 Wall Street, New York 5, N. Y.

Saxton &
Tax

Diamond Alkali—Bulletin—Bache &
York 5, N. Y.

fond of

of three Indianans to be returned

every

is held in

he.

the

difficult to

that Eisenhower sent up

measure

let

very

sibly the Republicans will be more
aggressive under him but it is

recent

but he has fought for

much

is true of Joe Martin,
Republican leader. He has

slowed
years

was

to the White

access

last six

same

House

devastating speech at the Chicago
convention in 1952 begging Tom
Dewey not to "lead us down the
again." Dewey at

insurgents

In the

Early in his admin¬

Eisenhower

that he

of
the most promising younger
members of the Republican party.
Until recent months he had ready

"yes"
The

face.

the

be.

chair¬

the

even

Halleck and considered him

have

years

man

not

committee.

gets his infiuence by virtue
personal
association
with

Averages, both

with

well

did.

is
a

istration,

spe¬

"liberal" is ridicu¬

Taft

want

s e n

Illinois with
lous

that

him

part of the movement to dis¬
place him. One wonders just how

wanting to re¬
place Senator
D i

man

the

somebody.
idea

influence

sup¬

cant that Eisenhower would

if|

they- must

The

trip
to
Chicago
to
urge
Dirksen's reelection. It is signifi¬

that

feel

Ike

apostle

cial

November

take it out

given
is

philosophy that "the King is dead,
long live the King." So much in¬

They
are
bitter, though,
about

has

Boston, Mass.

used in the National Quotation Bureau

done

of the Neivs

—

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

have

them

For several years Charlie Halleck, of Indiana, has been gunning
for
Martin's
job.
Undoubtedly
Halleck is one of the most capable
By CARLISLE BARGERON
men
in the House, quick on his
Movements
in
both
Houses the time was engaged in nom¬ feet and an able parliamentarian.
But the result of his trying, and
against the Republican leadership inating Eisenhower.
show the restlessness of Repub¬
At
that
time
in
getting
Martin's
Dirksen
was succeeding,
licans.
In
view
of
has left
him
without
their
small counted as one of the old guard. job
any
But he changed with the advent position in the House ait all. It is
leadership, it
of Eisenhower and no one in the amazing that one who has so much
doesn't
make

Ahead

and

January issue of Monthly

Investment Letter—J. R. Williston

Washington

"FOR SALE"
Bound Volumes of the

COMMERCIAL

FINANCIAL

CHRONICLE

From 1928-1942

the

New

York

Stock

Exchange and other leading ex¬
changes, announce that the secu¬
rities
Co.

business

Incorporated

ducted by
Co. '

McAndrew
will

con¬

Cruttenden, Podesta &

The firm will maintain
San

direct

Francisco-Chicago-New York

wire.

Troster, Singer & Co.

Members New York

Trinity Place, New

HAao.er 2-2400

Available

immediately in N. Y. C.

Security Dealer^ Association
York 6, N. Y.

Teletype NY 1-376-377-378

Write

Phone

Edwin L. Beck, c/o

—

REctor 2-9570

Joins Scherck, Richter
.

(Special to The Financial Chronicle)

ST.

Chronicle, 25 Park PI., N. Y. 1

LOUIS, Mo.—Julius Lesser

now

with

Company,
members

Exchange.

320
of

Scherck,
Richter
North Fourth St.,

the

Midwest

Stock

Number 5810

189

Volume

funds

French

mining

prefer

form

doing,

and

than

LONDON, Eng.
reaction

first

cau¬

measures

the

there be

the

exchange

strengthen

restrictions.

any

case

ensuing

flight from

should that Britain stands to lose rather
than gain through such influx of
sterling funds.

Until

The

in fact be the case, French holders
of foreign balances are not likely

convertibility

where

On the other hand,

government has also adopted
against the middle
and the wealthier classes,

classes

France,
United

genuine

have

they

States,

the

and

They

during the postwar period.
consider

privilege

their

sterling is likely to be delayed

uncertainty of election

pros¬

It is true, the leader of the

pects.

Mr.

Galtskell,

while

the

any

change

intention to
if

Labor

Government should assume office.
This

undertaking is, however, in

Of A. G. Becker & Co.
CHICAGO, 111.

—

Roger O.

Robert

Winfield

Brown

and

of have been elected vice-presidents
viewed with of A. G. Becker & Co. Incorpo¬

are

inflow of

RrflUflt £ Wlltlialfl if.Pc
UlUlill Of TTIIIIICIU 1 TOi

result

quarters rated, 120 South La Salle Street,

many

realized

the

that

members

the

New

important

the

Midwest

liable

Now With Dempsey-Tegeler

become

reversed

moment and is therefore

tional
ness.

source

any

Moreover, while the influx con¬

for resisting

necessity

inflation, because the

demand for sterling resulting from
the

(Special to The Financial Chronicle)

LOS ANGELES,

tinues it will obviate the

offset the

influx will tend to

Exchanges.

addi¬

potential weak¬
W
';'1
••

Stock

Desbrow

now

Cajif.—Paul H.
with

Dempsey-

Tegeler & Co., 210 West Seventh
He

Street.

Walston

was

Co.,

Ryons & Co.

formerly

unfavorable

sterling,

before

long

very

thoughts
vailed

pre¬

foreign

the
ex¬

change

mar¬

Sterling

ket.,,

recovered

BALABAN

BARNEY

President, Paramount Pictures

Head Office: 44 Wall Street, New

Corporation

Chairman, The Sperry

and Hutchinson

Company

and

remained

steady
of
Einzig

Paul

its

new

i mprove

status.

■

sterling

This type of

the

affected by the
decision, because
proceeds of foreign

not

convertibility

sterling

technically
Since, however, it

investments remain

inconvertible.
is

now

ceeds

only
rate

possible to sell these pro¬
at a shade above par and

market

under the

shade

a
for

President, C. R. Black, Jr.

Corporation

sterling, for all practical

security sterling is also
convertible.
The only difference
purposes,

BRUSH

ALVIN

Products

Corporation
CRANDALL

A. DANA

CHARLES

Cosh and Due from

C. FLANIGAN

HORACE

Chairman-, Board

of Directors

should there be large
realization, of such sterling, the
rate might conceivably decline be¬
low
the
official
limit
of $2.78,
because this limit does not operate
that,

for inconvertible security

Securities

U. S. Government

Insured F. H. A. Mortgages

GEMMELl,

State, Municipal

Company

letter

red

day for the London
foreign exchange market. It made
arbitrage much easier. Even

though it is premature to judge by
the experience gained since the
change, it is reasonable to expect
result

the

that

increase

nent

will

the

perma¬

turnover

the London foreign exchange mar¬
ket.

There

that

London's influence

already indications

are

Stock of Federal Reserve

JR.

rates

has

increased

the

detri¬

President, Gerli & Co., Inc.

York, Zurich, Frank¬
Amsterdam and other

4,511,700

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

28,980,056

1,268,386,427

Purchased and Bankers' Acceptances

Loans, Bills

-v.

Y„

...vr:

23,298,055

Banking Houses and Equipment

HOOPER

EUGENE S.

23,958,221

Mortgages

Committee

Chairman, Finance

President

55,604,573

Customers' Liability for Acceptances
T.

HURLEY

Chairman and

Accrued interest and Other

President,

12,234,755

Resources

Curtiss-Wright Corporation

$3,654,044,628

L. JOHNSTON

OSWALD

Simpson Thacher &

Bartlett
LIABILITIES

BARRY T.

LEITHEAD

President, Cluett, Peabody
KENNETH

& Co. Inc,

(5,039,000 shares

Capital

F. MacLELLAN

President, United Biscuit Company

JOHN T.

MADDEN

Industrial Savings Bonk

$ 50,390,000

$10. par)

100,000,000

Undivided

Chairman, Emigrant

—

Surplus

of America

Possible Loan Losses

Reserve for

$ 221,503,502

71,113,502

Profits

48,712,786

george v. Mclaughlin
Vice Chairman,

centers.

.....

HAUGE

GABRIEL

ment of New

furt,

Bank

234,702,131

.....

Other Securities

deter¬

mining international exchange

and Public Securities

GERLI

PAOLINO

ROY

79,154,073

........

Clyde Estates

sterling.

The return to convertibility was

865,585,430

U. S. Government

FRANKLIN

President, United States Lines
JOHN

$1,057,629,207

Banks

Corporation

Chairman, Dana

JOHN

RESOURCES

Fuller Company

Chairman, George A.

Condition, December 31, 1958

Statement of

Chairman, American Home

LOU

unexpectedly se¬
rose
above the
sterling-dollar parity, for the first

Indeed, quite
curity ; sterling

time in its existence.

GREATER NEW YORK

BLACK, JR.

during

the first week

Di.

CLINTON

OFFICES

114

from its initial
weakness

York

BEINECKE

EDWIN

COMPANY

TRUST

DIRECTORS

second

Reserves for

Triborough Bridge and

Taxes, Unearned Discount,

Interest, etc.

31,912,070

. ..

Tvnnel Authority

London

banking circles widely
assume
that the change
in the
status of sterling will attract an
increased volume of deposits from
abroad.

Continental

overseas

and

other

banks and business firms

may now hold sterling as an alter¬
native to holding dollars on the
safe

assumption

switch

that

into dollars at

they
a

can

moment's

notice.

Refugee balances, too, may
be kept in London in preference
to New York by continental hold¬
ers

who
be

find

able

London

banks

convenient

visits to their

pay

without

incurring

undue expenses.

Effects

very

effect
There

be premature to form
the

franc

some

G. RABE

Chairman, Trust Committee
HENRY

2,519,500

15, 1959

President, American &
Power Company,

56,719,484

Outstanding Acceptances

B. SARGENT

Liability

Foreign

Inc.

Other

Endorser on Acceptances

devaluation.

repatriations of

31,982,360

and Foreign Bills..

2,839,103

Liabilities

HAROLD V. SMITH

Chairman, The Home

3,257,855,823

Deposits

Insurance Company

I. A. VAN

$3,654,044,628

BOMEL

Trustee, American

Surety Company
♦

HENRY C. VON

ELM

Applicable to cover such

future loan losses as may

develop.

None are at present known.

Honorary Chairman
GEORGE G. WALKER

Bond and Share Company

United
secure

States

Government

and Other Securities carried at

public funds and trust deposits

$148,196,612 are pledged to

and for other purposes as required or

Devaluation

definite opinion about the
were

WILLIAM

President, Electric

of Franc

It would
a

Dividend Payable January

Member Federal Deposit Insurance

Corporation

with

Inc., and, Lester,

MANUFACTURERS

was

and

York

strength of sterling resulting from
such
influx of "hot money" is

reverse

balances

misgivings

criticising the return to converti¬

been bility, disclaimed

thoroughly pampered and spoiled

funds

The full effect of convertibility
on

In Opposition,

grievance.

Britain

;workers

industrial

the

that

repatriate their
really large scale.

prospects

outcry against the effect of
on
the cost of

devaluation

have

franc.

foreign

measures

the

Inflow

the

weaken

becomes evident whether this will

food subsidies.

the

might

the

Taking the
long view, it is therefore probable

change of government,

There

living and against the removal of

Expects

Christmas weekend

the

public

inflation

balance of payments.

monetary changes announced dur¬

ing

whether

adverse effect of

Although the

—

seen

re¬

Britain stands to lose rather
gain through influx of for¬
eign balances.

pects

pressure

frequently

prospect

is by

certain how the French

franc at its devalued level.

produce the opposite ef¬
Taking a long view, sus¬

fect.

the

and

deposits from abroad, and traces
factors—should they arise—that
would

remains

the

with

tention

changes

means

adopted by the gov¬
ernment in order to safeguard the

larger inflow of

under

conflict

peated declaration of Socialist in¬

tic

of writing it

the time

permanent increase in the turn¬
over of London foreign exchange
market

sacri¬
in the

any

necessary
national interest.

trade unions will react to the dras¬

is still premature to

definite opinion.

from

exempted
however

and opinion, which is behind General

fence

the

the industrial situation.

sterling and franc monetary
so

sit

abroad

Gaulle, the French trade unions would force Mr. Gaitskell's hand
will adopt a reasonable attitude. to suspend convertibility regardIf not, a series of strikes and en¬ less of his present intentions.
forced wage demands might nul¬
Misgivings About "Hot Money"
lify the beneficial effects of the

PAUL EINZIG

and, in

fices

most

But

funds

await the effect of the devaluation

British commentator appraises re¬

changes

shares.

holders

French

Changes in
Monetary Units

tions that ilt

from New

French holders sold South African

gold

cent

not only

York but also from London where

Effect of Recent

(105)

The Commercial and Financial Chronicle

permitted by law.

,(106)

The Commercial and Financial Chronicle

Slopping Extravagant Programs
In Agriculture aad Elsewhere
CLINTON P. ANDERSON

By HON.

Agriculture

cents.

this

(D. N. M.) *

calendar
will

come

000.

Former

stable dollar. Moreover, he also recommends that

procedure whereby appropriation bills would
be automatically reduced if their total exceeds anticipated
Federal revenues. Sen. Anderson would, further, cut $2 billion
from Foreign Aid Program, and warns farmers who believe

this

Here

agriculpolicy but things
mind because of

ture program or
that are in my
m

mittee

tural

Financ

our

time the

Committees,-

the

dollar

the

De-

election

Twice

in a

agriculture

year

have

cited

over

figures

and

can

some

now

newsletter.

page 184, the back sheet of a fourPaSe
paper,
there
is
a
story

without

of the
Treasury be¬

signed applications | for 1959 contracts in the Conservation Reserve

fore

That

of the Soil Bank which offer

had

the

Sec¬

retary

the

ate
C

Sen¬

comes

i ttee

asking for

which

Clinton

p. Anderson

be increased. We

visualized it going from $275 bil¬
lion to $288 billion and it is now

$280 billion and

20%

received.

the

income

know

that

that, is not really any tie between

the

national debt to

over

rate

farmers

would

permit

that

tne

thorizing

legist ation

That story told how farmers have

against realized farm in¬

was

1953 of $13,880,000,000,
spending in the Depart¬
ment of Agriculture was about at

Finance

o m m

annual

year

made
,

lions

on«

quick

decided
would

acres

use

$285

million,

annual

payments under contracts

signed in previous
It

true

that

years.

the

them, but

every

took

dollar

time the farmer
the

Department

than

acreage

goal

for

states

and

country as
cations
more

thje

provided

nationally.
a

whole

program

It tells us that the wheat production which was running at the
rate of 858 million bushels during

putting
in the

acres

The Department of

reserve.

up a

1,449

had

ings

that

wheat
lion

got

high

trimmed

75
the

Agri-

serve of

Then

the

farmers

the soil bank, and

harvested

bushels,

new

national goal ;u What

1958

can

wheat

1,156

million

surplus to

believe

and

harvest

domestic

our

four .bushels

world

trade.

were

and

willing? -There
we

yet

wheat

our

and

keep right on
evemthough

adds
k

* soon

two

are

the

fiscal

will

at least

and

one

Ttu s announcement

brought

probability is that the next Con-

1,449

still

figure.

with

./. Congress' Will

■

offer oj securities jor sale

or a

solicitation oj

pens? • The
percentage
of
New
Mexico population
living in towns
and cities was less than half of
the state's total * in 1950 but

1965 it will be 74%.
Does any
farmer think that a New Mexico

the House

can

the

Senate

national debt authorization to $300,
billion. No member of the bank-

on voting for
agricultural programs which pile
up wheat in warehouses way be¬

the

far

needs

beyond

the

domestic
needs

requirements

relief

programs,

January S, 1959

the
common
garden
variety of -*
public officials, can look at that
steadily mounting debt without* •

•

$75,000,000.

fraternity,
the. agriculture
community, the laboring groups,
the
manufacturing interests, or

C. I. T. Financial

Corporation

apprehension.

4%%: Debentures, due

Suggests Formula to Cut Spending

Every
erodes

year

now

little

more.

our

not

of the

dollar

until

not

are

going to stop the dilution
sion

January 1,1979

dollar" "

our

ero¬

bring

budget into balance. We are
going to bring our budget into

balance

until

try

control

spending

department by depart¬
ment
and impose some over-all
ceilings for annual spending be¬
yond which
out

will

not

Price 99%

with¬

raising the accompanying

plus accrued interest from January 1, 1959

revenues. I

support and have sup¬
the proposal to make the

ported

passage

all

appropriation

tentative, then
when

total

them

bills

all

the

Congress has finished
work, and if they exceed the
amount
of
anticipated revenues
try to reduce them to bring them

Copies of the prospectus

its

(iwho

are among

map be obtained from such oj the undersigned
the underwriters named in the prospectus) as map

legally ojJ>'r these securities tinder applicable securities taws.

in balance with
expected receipts.
I would favor
a
provision that

would either automatically reduce
appropriation totals to the level
of

anticipated

the

revenues

Congress, by

or require
two-thirds or

three-fourths affirmative vote, to
decide

that it

deficit

spending.

wanted

Immediately

that

continue

would

governmental programs into
review. It would
result, in my

$2 billion of
think

would

could

not,

lopping off at least
foreign aid. which I
be

good

thing. It

reduce

course,

debt, could

amount

have

pay

the

na¬

not

reduce

the

payments

make

veterans and retired Civil
Service
a

the

First

Credit

talk

by Sen. Anderson

Annual

Conference,

Farm

Las

and

Cruces.

before

Livestock
N.

Lazard Freres & Co*

Kuhn, Loeb & Co.

Salomon Bros. & Hutzler

Eastman Dillon, Union Securities & Co.

M-

Glore, Forgan & Co.
f

Lehman Brothers

Blyth & Co., Inc.
Goldman, Sachs & Co.

'
>

Harriman Ripley & Co.
Incorporated

Merrill Lynch, Pierce, Fenner & Smith
\

the

constantly mounting figure of inr
terest

tional

bring

some

opinion,

Dillon, Read & Co. Inc.

A. Q. Becker & Co.
Incorporated

Smith, Barney & Co.

Stone & Webster Securities
Corporation

Baker, Weeks & Co.

trade, far beyond the

ing

keep

ojjer to buy securities.':

.New Issue

think Congress is going
to stand idly
by while that hap¬

the export
that

Say

Do you

trade,

all-time high,

yond

million

will be asked to increase the*

gress

not

more,

the 4 carry-over' will
three billion bushel

possibly two

before that budget can
into
balance.
The.

years

reach

summer.1

and

year

our

crops

bushels

year

reach

market

carry-over

billion

Each

can

upward.
which the anticipated deficit will
be $12 billion and we see ahead

you

Canada, * Australia
Argentine; intend to let
that, even-if our Russian

its way

that

hope that

wheat

1.3

tried to

the

friends
no

1958

would have to sell three

every

moved

representative

by law to 55 mil-

acreage

acres.

For

for

than 20 million

culture had set

the

most

reached
1958.

wheat running wild in the 1937-41
period! We had total wheat plantmillion

...

talks about wheat,

the i5 this country put 5.3 million acres
232,000, appli- of wheat-land into the acreage re-

call

would

only

growing record

■>

Department

it.

trade

out; of

and
profit¬

away,

points out that the

world

needs

12.5

sell

grows

it,, faster

can

bushels in 1957-58...If
which

calcula-

that

sell that part of our

payments

contracts.

new

give
or

eat

can

than

article
,v

amounted

payments
for

rather

some

and

year

than the $285

available

beaded: "1959 Conservation Re- 'the 1937-41 period
serve Applications Exceed Goals." million bushels in

political overtones,
In fiscal year 1953-54, the total
U. S. Department of Agriculture
expenditures were $2,950,000,000.

practice

would require
million

first

20 million acres would
claim.for cost $466 million. To that would
the,.part- be added $375 million already
I. do say authorized by Congress to make

any

^ration's official

agricul-

spending.

The

would

can

faster

The

Conservation

the American Farm Bureau Fed- ,another column

all

much

wheat?.

entire

in-

that I think is most vulnerof

than

applications

them
able

Com¬

faster

and

net

political party.
that I supervised the spending of
lots of money in the Department
of Agriculture at one time, and J

say

mountain

Stabilization

every

mil-

it would quickly bring programs under review, and one of

the

Senate

12,5

$13,000,000,-

I am not making any
superior intelligence on

essential government services. But

member-

ship

year

takes

story pointed out that

news

Thursday, January 8, 1959

ably store it

Shocked at Rising Farm Spending

workers, nor could it reduce a
whole host of expenditures for

particular

any

The

shocked when I see the level can and probably will scale down
that agriculture spending is now 1hese applications to the amount
reaching
of the budget, but I wonder if that
While I was dictating this paper solves our
our
problem. The same
1 received the Nov, 17th issue oi page of the 'same newsletter in

di-

not

words

some

are

about

1959 sign-up

acres.

if all the farmers who signed the
were
offered
contracts by the County Agricultural

farm

year

run

lion

million

price support and soil bank programs can continue indefinitely
they are "living in a fool's paradise."
rected

the De-

year,

spending to jump from 20 cents to
53 cents by farm programs which
I think do not justify these costs.

part of an economy program at ending deficit financing and

Congress adopt

lor the
>

partment of Agriculture is spending 53 cents. We have allowed this

Agriculture Secretary proposes Congress slash about
$5 billion from the Agriculture Department's budget next year
a

partment of Agriculture will
spend $6,900,000,000, and during

farmer

During this fiscal

Senator, United States Congress

achieving

spending

was

White, Weld & Co.

Spencer Trask & Co.

Volume

Number 5810

189

The Commercial and Financial Chronicle

completely beyond the capac¬
our warehouses
to store?

and

Chas.

ity

1965

that

during1* World

Warren

Oltmanns

worked in Air Force

living in a .fool's paradise,, and
the quicker he ,1 realizes - it the

tions,

better off he will be.

out

ago
This

some ;years

heard

had

fable.

and

was

March,

1944.

R. E.

Pacific

with

commissioned in~
served in the

the

Army

$20.00 per

reserve.

divided

land

his

each

acres

land

Mi*.

So the

man

formerly with
Reed, Inc.
/ /

was

Waddell

Pacific Coast Stock Exchanges an¬
nounces that Sidney L. Schwartz,

York

for : many
years • senior
partner
of the firm has 'become a lim¬

partner.

John

Hoyt has
been admitted to general partner¬
ship with headquarters in San

will

Beverly,

} MASSAPEQUA, N. Y.—William
is

Hills

engaging in

a. secu¬

•:*>
graduated' rities business from offices at

partner

office,

275

1906

-the

told

He has also

1958

ments

the

cost

Norman Nelson Partner
In

North

joined j Sutro &
becoming a partner

Roggenburg & Go.

and-the firm's member of the San
Francisco Stock

Exchange the fol¬
lowing year. His 51-year member¬
ship
continues
as
the
longest

Roggenburg
New

way,

Co.,

York

City,

windfall

the

With

540

would

payment
.

acres

each

been admitted to

general partner¬

ship in the firm.

Hofstra i College

the'

and

Grand 'Avenue.

tenure

change.

the

Mr.

history of-the Ex¬

Schwarl^

served

with

been

Mr. Nelson-has

years

Roggenburg for many

Cashier.

Praises

Bank

tried,

would all admit that

scheme

the

not

was

Cash and Due from Banks

of the soil bank

the

by
and

President

the

States.

advocated

Secretary

certainly

not

would

have been possible under the soil
bank proposal which I attempted
in

substitute

Senate

Committee

culture

offered

guage

the

lan¬

Secretary

practice
is indefensible, and if any such
contracts
are
in
existence, this
Such

Agriculture.

would

them to

good

time

bring

Stock in Federal Reserve Bank

Drastically

16,431,133

Loans:
■-'*!*

Loans Guaranteed

i*-

i ts

the best way the Congress can put
them there is to reduce the fiscal
1960

appropriation for the De¬
partment of Agriculture from six
billion, nine hundred million, to
flat

billion

two

would

notice

serve

That

dollars.
the

Sec¬

that he must have some
different plans, and let him come
with programs and a schedule
retary

departmental

which

35,652,644

think

time

cut

$5
this
depart¬
ments can trim their sails enough
to bring us back to
a
balanced
agricultural
billion

spending

per

and

year

about

when

is done other government

budget and
I

suggest

stable dollar.

going to be
that if the

bold

feel

banks

19,317,535

F.II.A. Mortgages

livestock

and

men,

might

which in the long run
serious threat to agricul¬

programs

pose

ture and at the same time threaten

all by

inflation
on

their contribution to an
which

long

spending,
national

as we

certain

and

Real Estate

363,521

raise

our

Banking Houses

That route
ment

the

—

not

spending—seems to

one

should

now

Digitizedlowing.
for FRASER

American
MINOT

Acceptances Outstanding

48,736,783

to be
fol¬

MILLIKEN

Dcering, Milliken & Co., Tnc.

8,176,282

MITCHELL

Chairman,

Sylvania Electric Products Inc.

$1,991,230,223

Total Assets

MOORE

ROY W.

Chairman, Canada Dry

LIABILITIES

PETER

$1,774,870,208

Deposits

President,
New York &

15,059,912

Expenses

January 2, 1959.

2,040,000

Corporation

S. PAINE

Pennsylvania Co.

LeROY A. PETERSEN

President, Oris Elevator Company,

Acceptances: Less Amount in

55,326,924

Portfolio

WHITNEY PETERSON

President,

Other Liabilities

6,838,807

1,854,135,851

Total Liabilities

United States

DONALD C.

Tobucco.Company
POWER

President,
General

AIT'OIJ ATS

CAPITAL

Telephone Corporation

RAYMOND

Capital Stock (5,100,000 shares —$ 10

Surplus

......

.....

Undivided Profits
Total

51,000,000
57,000,000

par)

Capital Accounts

29,094,372

137,094,372

....

Total Liabilities and

Capital Accounts

II. REISS

President,

Reiss*Manufacturing Corporation
HERBERT E.

SMITH

Former Chairman
and

of the Board

Chief Executive Officer,
Company

United States Rubber
.

....

$1,991,230,223

STEWART

President and Chairman

National

U. S. Government Securities pledged to secure
monies and for

deposits of public

other purposes required by iaw

MEMBER

r E D E R A I

of the Board,1
Dairy Products Corporation

FRANCIS L. WIIITMARSII

President,
Francis H.

govern¬
me

Cyanamid Company

DON G.

Dividend Payable

Fice President and Treasurer,

Accrued Interest and V.

Taxes and Other

Corporation

MALCOLM

President,

Customers' Liability for

Other Assets.

MacDONALD

Chairman and President,

16,743,429

amounted to $94, ISO,518.

the dollar.

LUKE

DAVID

19,681,056

steadily erode

K1KKWOOD

President, F. W. Wool worth Co.

General Cable

indulge in deficit

continue
debt

HARVEY, JR.

ROBERT C.

Conventional First Mortgages

well to help stop these extravagant

Pulp and Paper Company

U. S. Government Insured

genuine interest in extending the
right kind of credit to the farmers

;

President, West Virginia

will

more.

FOG ARTY

Chairman, The Flintkorc Company

773,160,484

expenditures

stay within the two.
billion dollar figure because the
Congress can't afford to give him

Bristol-Myers Company

Mortgages:

BRISTOL

Continental Can Company, Inc.

28,387,908

Agencies

Loans Secured

Chairman, Executive Committee,

by U. S. Government
or

...

President,

837,201,036

going to try to tell
everybody what to do with our
agriculture problem.
I am only
going to suggest that the opera¬
tion of our agriculture programs
ought to be on a sound basis, and

HENRY

Insured

MURPHY

President

THOMAS C.

Cut

not

"'v, '

544,042,522
*4

of the Board

3,240,000

Other Securities

Appropriation
I

Chairman

GEORGE A.

31,163,893

Other Loans

Would

yv v't-

Underwritten

U. S. Government Securities

halt.

1958

31,

RICHARD II. WEST

493,207,496

Agri¬

the

for

«*«•'.

•

by U. S. Government Agencies

United

the

516,649,115

r'Vi-;.

U. S. Government Securities
Securities Issued

Agriculture

DECEMBER

imtLCTOICS
.

Securities:

pur¬
,

pose

CONDITION,

ASSISTS

fable.

But if something like that was to^
such

be only

may

the

STATEMENT

Soil

Program
that

Now

NEW YORK

;

Own

His

pay¬

within

$5,000 maximum..

an¬

operation.
unit, the

Broad¬
has

that Norman Nelson has

nounced

land

tax

celebrated

the

the "

the

income

annual

the

New

founding.

^ay for the land and leave them
for

the

anniversary of its

government would pay them $9.00
an acre for 10 years, which would
one-third

First

Francisco

San

and

reserve

terms

and

Exchange.
Co.

100th

nine

for

creator

Governor of

Stock

Sutro

the

Exchange.

served

Schwartz

Co.:in

Sinnreich

resident

Stock

Canon Drive.
Mr.

Wm. Sinnreich Opens •;

the

this

but

acre

Oltmanns

securities business. Mr. Mayer

was -

Exchange

was

President

The new buyers
they could put it in

conservation

the

new

offered

to engage

and

FRANCISCO, Calif. —
Sutro & Co., 460 Montgomery St.;
members of the New York and

down.

money
were

tracts

iii

in 1946. Hehas served in .all phases of the
business and is presently engaged

But along from

into

and

$60.00

with

Sam

conservation

540

acre.

Uncle

1242 Baldwin Street

re-:

and

SAN

President of the San Francisco

Stock

Francisco; Maurice Schwarz-, Jr.
Mayer & Co. with offices has-become a general partner and

turned to the company

'*•,

his

Airways

System

Mayer Co. Formed

mond "E.

Communica-*;

part of this state who had several
thousand
acres
of
dry farming in
buying and trading. "
land that he wanted to .sell at
came

career

:WILLIAMSPORT, Pa, — Ray¬
mond E. Mayer has formed Ray¬

Communications

fable told of a man in the eastern

about

re¬

ited

pointed

Army

and

Sec¬

that any farmer who be¬
retary of the company. *
'
lieves that .these programs will go
Mr. Torgersen started with theon without,.interruption
and that
company in 1938.
He entered the
meanwhile he will .be paid fan¬
United States Army Air Force in
tastic prices to take a little bit
September,
1942 " as / a
private,"
of his land out of cultivation is

II,

turned to start his business

say

that

War

E. Weigold & Co., Inc., 40 in
1946 with the company. He has
Street, New York City, an-, served since in various
capacities,
nounces
the electionyof William- and
is presently devoting most of
R. Torgersen as a Vice-President his time to
sales work.
and

the

Partners in Sutro & Go.

He served in

Theatre

Wall

make any sense? I don't believe so.
I

Administration.
Pacific

Chas.

pro¬

produce wheat for the
rather than the trade

treasury

ness

Torgersen, Ollmanns

Congres¬

persuade

can

representatives

grams

Harvard Graduate School of Busi¬

Weigold Names

the

<Do, you think the.. 8%. scheduled
to be living on New Mexico farms
sional

(107)

DEPOSIT

INSURANCE

CORPORATION

Leggett & Company

•-

The Commercial and Financial Chronicle

(108)

Fiscal

Responsibility

for four years, and I am going to
summarize for you some of my

pens,

conclusions.

consideration

By PERCIVAL F. BRUNDAGE*
Former Director of the

Simplified

Budget Director blames Congress for much of the
Federal deficit looming up in this fiscal year and offers a

cated.
much

variety of suggestions to achieve less political pressures on
spending bills, more economy and efficiency in government,

years
to

small de¬

gree

Lincoln

felt

e n

Mr.
who

asked

how

'did

feel

;

it
be

President,
plied, "Y
who

man

been

Percival F.

and

Brundage

town

rail?

being

was

ridden
man

out

the

for

first

measures

consider

proposed

Budget

sistance

coordination

economy

the

proportion

Con¬

gress

in the 1959 budget of which

there

were

The

asked

which

for

postal

would

teaches the Bureau of the Budget,
where it gets a
thorough going

net

bring

growing and getting
complicated. Our

over.

There

half,

and

to be away from their

execu¬

tive

responsibilities, and to

answer

questions for

dollars

ferent

has

than

doubled

beginning of World War

In my opinion, we must accept

the fact that

have

large government but

solve to

do all

shall continue

re¬

keep it within bounds and
to

we can

foqr dif¬

committees.

The net result of Congressional
action is that there are
many cuts

made^in needed requests for
propriations and many
increases are added.

ap¬

unneces¬

sary

improve and sim¬

plify it.

as many as

the

Congress

of what

gave

half

Higher interest rates on college
housing loans were prooosed, and
Congress gave

nothing.

The

This is vastly different from the

about

proposed.

Budget proposed to adjust
certain veterans benefits which I

million,

We asked

price

Congress

but

not

was

for greater flexibility

support

for

gave

some

agriculture.

flexibility

but at much larger cost. We asked
to have the
acreage reserve end
with

the

would

1958

have

crop

saved

which
million.

year

$525

Congress ended it but liberalized
it

last year with
a
net saving
of only $275 million. To sum up,
the proposed savings came to $3V2

billion, and Congress
half

only

gave us

billion.

But

this is not all.
Congress
appropriations beyond our
requested
amounts:
Department

raised

The President proposed increas¬

the interest rates on FNMA
special assistance mortgages, and

addi¬

enacted.

will

ing

in¬

Congress on the
hand increased the Federal

$190

are

son,

ill-advisedly

was

areas by
increasing local partici¬
pation, and this would have saved

million; Con¬
voted increases estimated to

savings in

saved

have

The Federal

tional $197 million.
The President proposed limiting
school aid in Federally affected

to Economy

estimated $725

gress

could
year.

portion again which cost

President

increases

rate

creased last year.

other

16:

What Congress Did

and

which

$250 million

at least 15 months before the be¬
total $546 million, but also gave
ginning of the fiscal year to which pay increases to postal employees
it
relates.
Each
department or exceeding our recommendations
agency spends weeks and months by $219 million (including $117
of analysis and review before it million
retroactive). This cut our

Gross National Product in uniform

II.

feathered

and

o u

had

economy

since the

tarred

place, our budget
much too compli¬

Let

still have a postal deficit in fiscal
frequent reviews 1959 of over $700 million.
£nd decisions by the President,
The Budget
proposed user
Cabinet and Security Council be¬
charges for aviation which would
fore submission to the Congress.
have eventually brought us $211
Then come months of hearings
million a year in revenue to
help
icy, when actually the Bureau of before the House and Senate com¬ pay for advanced
airway naviga¬
the Budget and the President only mittees. This is the most grueling
tion aids, which are costing well
kind of work—the heads of all the
propose and Congress disposes.
over
a
billion dollars. The Con¬
Government is growing as our important departments and agen¬
gress took no action at all.
population is growing. Our whole cies are required to appear in per¬

re-

remember the

are

have to
start the preparation of the budget

relief, I must admit, to the honor of the thing I'd rather
be able to discuss with personal walk."'
It was a terrific strain to be one
detachment about government af¬
fairs and the heavy burdens that of the focal points of continuous
your
public attack on administration fiscal pol¬
servants carry.
For ;
some

by the President in his
Message last January.-

They take altogether too
time 'of the top officials of

efforts

our

(4) lengthening Congressmen's, President's and
Vice-President's terms to six years; (5) thoroughgoing reform
of Federal-state-local tax policy; and (6) extending "conflict
of interest" rules that now apply to Executive branch members
to our legislators.
a

first

simplification.
To review briefly,

income taxes;

Procedure

bility is too divided in spite of all

(1) simplifying budgetary procedures and hearings; (2) enact¬
ing a single omnibus appropriation bill; (3) less reliance on

$200 million a year eventu¬
ally, but Congress gave us nothing.
The Budget proposed increased
local participation in public as¬

the government, and the responsi¬

Mr. Brundage suggests:

responsibility.

the

procedures

Former

and clear cut fiscal

Budget

Required

Thursday, January 8, 1959

saved

by Congress of the
1959 budget, which was submitted

Federal Budget

Consultant, Price, Waterhouse & Co., Washington, D. C.

I would like to summarize
what took place last spring in the

Defense

military, SI.3"billion;

General

Services Administration
for public buildings, $200 million;
National Institutes of Health, $96

million,

for

the

year;

Public

tions,

$61

the

successive

Appropria¬
(in addition,

million;

future

starts

third

Works

costs

year

of the

new

Congress approved will be
million).
In total, the in¬

$694

believe would have eventually re¬
creases came to
$2.2 billion.
party in power takes respon¬ sulted in annual savings of at least
Other
budget increases
were
stopped sibility for the budget that is sub¬ $500 million; Congress did not made
outside
of
appropriation
even consider it.
growing at each end, but contin¬ mitted, and it is either
acts.
For
accepted
example:
Emergency
ues to grow in the middle."
I be¬ and passed,
or
rejected by the
We proposed reductions in RE A Housing Act—$1.8 billion; changes
lieve we can limit our government Parliament.
I firmly believe that loan
programs, which largely cover in the Federal Aid to Highway
to that kind of growth.
our
present system is unwieldy, not farmers but industry which is Act which will lead to an in¬
I have been studying our gov¬ costly, and
now
unsatisfactory.
spreading out into the rural creased highway fund deficit of
ernmental procedures
As an illustration of what hap¬ communities.
This
would
very closely
have $850 million; pay raises over the
budget, a total of $845 million.
You

adult

system in all other countries where

know

—

the

"One

definition

who

the

has

crowd asked him how he liked it.

His

answer

♦An

the
N.

address

28th

Jersey

was

Annual

Taxpayers

'if it

wasn't

for

Mr. Brundage before
Meeting of the New
Association, Newark,

Congress increased 1959 budget
by a total of

recommendations

NEW
-a

$7.7 billion.

ISSUE

•'

This is not
The

January 8, 1959

offer of these Securities for sale.

spending,
felt

offer is made only by the Prospectus.

its

1959

Against
tions

This is not

but

and

these

came

billion.

will

later

reduc¬

something

net

result

years.

increases,

The

year's

one

force

over

that

was

Congress
increased
our
budget
proposals by over $5 billion.
I

cannot

that

this kind

operation is satisfactory to the
taxpayers
or
adequate
to
our
needs today.
I don't know any¬

$30,000,000

better

one

believe

,/*

fitted

than

C.P.A.'s to

improve it.

Finance Corporation
'❖/.W/.VAV.VAV.V.W.vy

.y.v.w.v.v^Av.v.v.v.y

have
frequently thought of
story of the Texan who was
visiting Washington for the first
the

time.

w.y

•I^mvawavawa;,-*

shown

was

around

the

White

Xy.v.-.v.v.v.v.v.-.v.-.v.v.v.-.v.
*!y///AVAV</«VMV.V.V.V.V<

House, the Treasury and
Capitol but was not overly
impressed.
That evening he re¬

Sinking Fund Debentures

the

Due 1984
Dared

January 15, 1959

marked

heaven

we're

friends, "Thank
getting all of

some

not

the government we pay for."

Due January 15, 1984

This brings rne to a second seri¬
ous

failing

spend

preparing

Copies of the Prospectus

Price 99%

be obtained from the under¬

signed only in those states and by those

Plus accrued interest from

the

January 15, 1959

undersigned

may

small

may

persons

time

legally distribute the Prospectus.

our

fraction
There

and

Bureau

cies

fiscal

system.

dollars

and

that

only

amount

the

results

seems

to be

staff

budgets

our

evaluating

wards.

to whom

millions

after¬

available

little

the

Budget, the agen¬
Congress for subsequent

analysis, investigation and expla¬
nation

variances

between

budgets and actual performance
which private business follows
up
so
closely. Here lies the greatest
opportunity for self criticism and
improvement for the future. The

lee hlcglnson corporation

Bureau

the

Budget of course
funds, the Treasury
expenditures, and the
General Accounting Office makes
apportions

White, weld
Blyth

Co., Inc.

& Co.

William Blair & Company

the First Boston corporation

summarizes

Glore, Forgan & Co.

Goldman, Sachs

& Co.

post audit to

not

made

poses.

Harriman Ripley
Incorporated

Co.

Kidder, peabody

& Co.

Merrill Lynch, Pierce, Fenner & Smith

Paine, Webber, Jackson & Curtis

Stone & Webster Securities Corporation

Lazard Freres & Co.

Lehman Brothers

Smith, Barney & Co.

much
or

But

that they

were

unauthorized

pur¬

see

one

determines how

was

spent for unnecessary
undesirable purposes and why.
Administration Leadership

Let

place

dean Witter & Co.

for

should

turn

American

public

directed.

people

have got to

now

which

third

attention

believe

and

the

press

change their attitudes

Continued

page

Volume

189

Number 5810

Financial Chronicle

The Commercial and

(109)

25,000

Alaska Beckons: "Go North

United

30,000 native Indians and

Eskimos.

States,

supply

•

The United States received from

not

had

with

natural

bountiful

ing
population: of
the
United
has States. This is bringing more and

resources,

pressing need for most
a region that prac¬
of the things Alaska has to offer.
in the same condition In the hands of a "Have-Not'^ na¬
the Russians found it, a century tion—for
instance, Japan, a near
a

Young Nan, Go North"

and

By HON. B. FRANK HEINTZLEMAN*

almost

Former Governor of Alaska

100%

namely— neighbor

earlier,

wilderness.

would

Alaska's detached position from

Vice-President,

Regional

quarter

Continental United States

Alaska of the Pacific Northwest Trade Association

long

ago

ing American markets, a situation
promises added population
and
more
prosperity
for
this
region.

have been devel¬

vast open space filled with

people.

for Alaska since World War II is

era

new

Governor

former

economic and natural

detailing

In the hands of

resources.

substantial

pictured by its
a

migration

"Have Not"

tion and what it would

mean

out

decidedly rising popula¬
terms of increasing American

Envisions

reached

New

into

of western

Pacific

the

But

its

American

long

ond

growth

Since

new

history,

World

War

seems

and

countries around

have

Alaska

that

some

for adding coking coal

prospects
iron

and

leum

con¬

the Pacific Rim.

presently selling pulp
lumber to Japan with early

and

this

see

development. The change is

Continental nected -with the

because

World War II

era

changing the picture of Alaska

however, the Territory has lagged
in

Era
a

also

true

products are now begin¬
ning to enter the markets of other

opened since the cllose of the Sec¬

Oregon and Washington. Through¬

nation, Mr. Heintzleman declares, Alaska would have been

substantially developed.

advancement

Alaska when the surge

of his state's potential

some

Alaska's

sponsible in part for checking any
A

Alaska

which

resources

oped substantially and much of its

re¬

was

Alaska's

—

resources

within economic range of increas-

was

the

Russia in 1867

tically

and

ore

this

possibly petro¬

list.

This business

Continued

rapidly increas¬

page

markets; depicts growing Alaskan export opportunities around
'

Pacific

the

Rim

and

elsewhere, including China when that

country's affairs are acceptable; and lists specific facilities
and supplies opened to U. S. suppliers by Alaskan activities.
Cautioning that this Scandinavia-latitude region does not
have

"readily tapped wealth," the Alaskan explains what

accomplished,

and how

"boom and bust"

;

Tie FIRST:v

can

MTIOML CITY BANK

economy

will be avoided.
The

grant

statehood

of New York

48 states as a whole,

the possibilities for Alaskan de-

velopment. In
this

of the

1/165 that of the average

the

Territory of Alaska on June 30
last has strongly focused attention

connec¬

tion it is inter¬

this

thumbnail
sketch of Alaska's past may be of
interest.
Its
history started in
1741 (217 years ago) when it was
first visited by Vitus Bering
(a
At

esting to note
a
widespread

whom

for

Dane

point

and

Sea

Bering

Head

•

Office: 55 Wall Street, New York

77 Branches in

74 Overseas Branches,

Greater New York

Offices and Affiliates

•

Bering Strait are named—an ex¬

reawakening

plorer in the employ of the Rus¬

of the Pioneer

sian

Statement of Condition

Czar.

of December 31, 1958

Spirit that was
so

The

effective in

the

"Winning
West"

of the

the

previ¬

This

can

observed

in
F,

well

Heintzleman

the

other

use

exploration for and
resources

To benefit from this

great interest,
the state government which has
come into being in January,
1959

animals.
sources

1867

had been

fur

re¬

decimated by

over-killing that the possession
expected to take early ac¬ was
hardly paying its way. But a
designed to bring more rapid more immediate reason for sale to
growth to Alaska than has been the United
States, and at the very
the
experience
under
Federal
low price of $7,200,000, was the
guardianship, Principally this will fear of seizure b
Great Britain.
mean
offering encouragement to The
.
_
rival fur traders—the
Russian
the
development of natural re- American Fur Co. and the Hudsources
by
private
enterprise. sons Bay Company had been feud¬
Making substantial
headway in
ing for years over their respective
this development will require the
rights on land and water in this
services of men of organizational,
section of the world. In the United
managerial and technical ability
States, at the time, the purchase
in many fields of American ac¬
was highly unpopular.
The terms
tivity. We Alaskans believe that "Seward's Folly" and "Walrussia"
the prospects for accomplishment
—from Walrus,
of course—were
be

can

tion

in the

new

Alaska

might

well borrow for
the statement
wrote — in some

connection—"Send

To Match

...

own

who

poet

other

...

„

state merit such action.

of its

purposes

Men

My Mountains."

Due

and

from

Banks

U. S. Government.Obligations
State

and

facilities that will

mensely to
In addition

kinds

result

major

im¬

contribute

military work of

currently provides
economic

many

with

But we
want to prepare now to take up
the slack in the local economy that
could

come

of Alaska have
Some

help.

any

withdrawal

time

mensurate
value of

with a
military

with

our

the

reward

Russia

for

Other Securities.

that

was

and

son

William

bought

fore

the

planning

size

Bank Premises,

Equipment
Items

7,000,000

•

Transit

with

-'Total .;

help

al¬

gives Alaska

density
address

his

Secretary

Seward,

square

popu-

mile of

Mr.

Heintzleman be¬
Industrial
Conference

meeting,

Cleveland,

Ohio.

380,000,000

93,179,286

1 otal

.......

•

713,179,286

$7,926,482*441

Figures of Overseas Brunches are as of December 23.

member federal deposit insurance

corporation
President

Chairman of the Board

HOWARD C. SHEPERD

JAMES S. ROCKEFELLER

Vice-Chairmen

RICHARD S. PERKINS

DeWITT A. FORWARD

ALAN

H. TEMPLE

CITY BANK FARMERS
Trust
Head

population.
For all of this,
purchase price of two cents
acre

doubtless must

Office: 22 William Street, New York

Affiliate of The First National City Bank of New York for separate
administration of

of Condition

Statement

Russian
of

all

America

have

Cash

and

Due

Banks

from

U. S. Government Obligations.

State

and

Municipal Securities

Other Securities

•

76,101,396

•

25,139,986

sale. The

the

of December 31, 1958

•

2,772,043

Real Estate Loans and

Securities

Federal Reserve Bank

Stock

Bank

2,960,826

Total

Reserves

$118,117,786

•

8,948,243

(Includes Reservefor Dividend $721,443)
Shareholders' Equity:

1
Capital

.....

$10,000,000

Surplus

.....

10,000,000

600,000

Premises, Furniture and

2,907,593

Equipment
•

5,480,707

..........

$161,661,402

Other Assets

Deposits

........

the

Undivided Profits

14,595,373

Total

34,595,373
$161,661,402

$10,275,952 of United States Government Obligations are pledged to secure
Public Deposits and lor other purposes required or permitted by law.

per

member federal deposit

RICHARD S.PERKINS

insurance corporation

President
EBEN W. PYNE

employees

the fur company and

home

Loans

seemed

Russians

were

functions

LI AB I LITIES

$ 45,698,850

Chairman of the Board

the

trust

ASSETS

attractive.

Almost

Company

of State,
who
con¬

America which in the hands of
any
other
nation
could
have
caused us trouble. Think of the

turned

National
3S9th

per

8,280000

$543.001,L04 of United States Government Obligations and $5,249,300 of other assets are pledged
to secure Public and Trust Deposits and for other purposes relinked or permitted by law.

sight of the highest order in tak¬
ing over this huge section of North

rise out
a

....

Undivided Profits,

$7,926,482,441

fishing

the

P10ve
usefuI
sora®J^reJ™?
an
expanding
United States
an exPan"ing

$240,000,000

Surplus

995,347

9,398,216

Other Assets

•

(12,000,000 Shares—$20 Par)

Overseas

Branches

-4

57,293,047

.........

Capital

47,129,511

....

■

Shareholders' Equity:

Furniture and
.

,f.

33,878,912

Accrued Expenses

and

Dividend
.

1,245,700

Unearned Income

International Banking
Corporation

102,912,■flST""**

18,600,000

•

Taxes

Federal Reserve Bank Stock

Reserves:

98,668,993

$7,009,693,334

Acceptances and Bills

Foreign Funds Borrowed

108,335,782

.......

Others

involves

Texas—we

add—just to get

the

Board's

520,511,051

3,836,340,391

it to

possessing natural resources and
an area for settlement that might

resources.

our

Texans)

lation

Customers' Acceptance Liability

ducted the negotiations, with fore¬

very
ways

Liability

Loans

proffered help

and

extent

getting more people. The present
population of 200,000 in a region
of 586,000 square miles (more than
twice

1,511,901,738

This

forces.

All

...•••••••

long been debated.

said

have

situation we would have faced if
gives urgency to our Alaska had remained Russian un¬
natural resource development pro- til 1904 and had then been taken
grams, but we propose to go far by Japan in the Russo-Japanese
beyond plans for merely not slip- war; or the predicament we would
ping back. We want to smooth the be in today if Russia still owned
way
for obtaining a steady in- it. Johnson and Seward also seem
crease
in
permanent population to have considered that Alaska
and an expansion in industry com- offered at least the probability of
heavy

of its

economic growth.

our

Deposits

Municipal Securities

companies in the newly acquired
position on transpolar flying California and Oregon Country to
routes have brought many permaextend their operations to the
nent
public
works,
especially north. Many of us, however, credit
highways,
air fields,
and
port the then President Andrew JohnAlaska

come

$1,767,601,412

...

applied everywhere in deriding it.
The reasons back of our purchase

if needed in the Civil War.

The defense activities that have

Cash

the

than

these

LIABILITIES

ASSETS

possession

highly prized fur of the sea otter
and fur seal and a few upland fur

individuals.

Purchase

new

as a source

nization

corporate
bodies

its

used

of furs. Through¬
out its long occupation of "Rus¬
sian
America," as its possession
was
known, it discouraged colo¬

solely

century.

ous

Unpopular

Russia

they

re¬

the

time

only residents left after

the departure of the Russians were

shall be

glad to send, upon request, a complete copy of the 1958 "Report to the Shareholders"
City Bank of New York and City Bank Farmers Trust Company.

of The First National

The Commercial and

(110)

lion

Upward Momentum to Carry SI
Economy To New Levels in 1959
By IION.

^LE WIS

This

1957

and,

—

quarter

Secretary of Commerce

tion

rates

further

improve

this

Admiral Strauss, until recently
Energy Commission, charts increasing

year.

Chairman of the Atomic
number

the

Hails

fourth

records"

employed

quarter

and

sees

the

New

was

but

prices

the

begins, the
overall economy has regained the
record high reached in mid-1957.
The
prospect
is
for
further
improvement.

uncer-

t a in t y
p

and

essimism

widespread.

momentum continues.

Recovery,
commenced in
the

S p r

Today,

economy.

from

Year

Lewis

Strauss

increasing strength and of grow¬

substan¬
tial
advance
in output and in¬
come.
The initial rise in* produc¬
tion Was evidenced primarily; Un
and

little

.^Thge

retarded

previously
ful;

the

test of

full

The decline in

Fall.

latest

should

for

surpass

last

of inten¬

for the first

quarter of the New Year indicates
tendencies
but
at
an
investment rate only slightly in
advance of the final
quarter of
1958.

course,

free

the

course

recession

levels.

From

unemployment figure of a little
five million, seasonally ad¬

over

justed, in the month of April, we
seen

reduction to approxi-

third
to

months

early

quarter,

workers

the. rolls,

and the
lengthened.

further
value

total

of output

in that

the ascending curve
periodic pauses and

spending* with
registering
a
pickup.
Government

goods

noticeable

expenditures

Economic Review

sustained

sion which advanced

national

Product)

output
to

and

sales declines

deep

variety of invest¬

ment-type goods. These, together
with
the
associated
swing
to

inventory

general

liquidation

concerns

the

near-

clouded,

outlook

market

term

were

also

up,

and

major depressing factors.
The result of the cutback in de¬
and production

mand

sonal

was

rela¬
income.

sion,

expan¬

the value of

National
than $450 bil¬

most

were

marked

durable

the

demand

for

business

construction. In contrast,

goods

demand for nondurable

and

goods and

decreased

taxable

with

the

earnings and,

new

purchasing are
high in both dollar and
terms.
The
Federal, State

new

real

governments continue
a
sizable; market for
goods and
services, and publicprograms in many fields, includ¬
local

and

provide

ing highways, are moving ahead.
The

ing

volume

curtailed

has

been

better balance

tween

achieved be¬

was

During the recession, the 5%
in earnings from current pro¬

duction

was

thus not reflected

and

production

overall

Substantial
at the end of

which

momentum

ward

gains made

1958 establish an up¬

to carry the
levels in 1959.

expected
to

new

J. B.
In

Goodbody & Go.

James

Goodbody

membership

disposable personal income, wnere
drop amounted to barely more

the

J %. Consumer incomes were

largely shielded from the drop in

Exchange,
effective

output.

Employment has shown
ual

general public,
Prospectus, by

described in the official

a group

of investment dealers

being formed by the undersigned.

> $24,000,000

climb

since

the

quarter

son

1958, but the total remains well
below the 1957 high.
During the

chiefly in durable
goods
manufacturing industries,
in mining, and in transportation.
There has been a significant re¬

who

hold

York Stock

Elsewhere in the
•economy,
^employment
declines
were small, and some subsequent
rise

u p.

occurred in most groups.

has

^ Vh% Capital income Sinking Fund Debentures

ing

the latter part of

accrued interest from Jan. 1*1959)

dur¬

early part of 1958, but
appreciable decline in

the

showed

Due January 1, 1989

increased

the

year.

re¬

membership
on
Exchange.

The

f i

fourth

generation
his
family

B. Gocclbotly

tle

founded
r m

the
James

in manufacturing, but the
other two groups have shown lit¬

Robert

1891,, and

the

occurred

Good body,

recession, the decline in employ¬
ment

Good-

body
is
a
great - grand¬

grad¬

Unemployment

^ PriCe 100%* (plus

first

Mr.

covery

Sheraton Corporation of America

New

Stock

York

national

New Issue

being offered to the

been

115 Broadway, New York
City, and
to

Co.,

111

Jan.

are

hqs

general partner in
the investment firm of Goodbody
a

Employment and Unemployment

These Debentures

can

economy

Goodbody Partner

the

than

consump¬

tion.

admitted

rate.

build¬

residential

has improved; liquidation

inventories
a

1957

maintained at about the

con¬

opens,

year

incomes and

de¬

sharp fall in corporate
earnings, the flow of dividends

cut
reces¬

the

spite

virtual halt.

The effects of the 1957-58

taxes

cut

was

market.'

the

sumer

were

inventory
liquidation,
which was an important factor in
the
earlier
decline, came to a

(Gross

1957
to the first quarter of 1958, the
reduction
in
purchases for all
final uses totaled 2%. It involved
autos

delayed full-scale /output
new
models—it is as yet

early to gauge the size of the

too

From the third quarter of

relatively

with

1959

current

consumer

durable

followed

activity continued to benefits made up for more than
expand in the closing months of half the overall decline in total
1958. A sizable advance occurred payrolls.
At the same time per¬

early part of 1958 saw the
the sharpest,, but shortest,
recession in the postwar period,
end

the

Business

will continue upward.

Year-End

added
buying

rise of $10

business
1958

the

annual rate of tively sharp decline in
billion The rise, however, in unemploy¬
"from* the second quarter.
ment
and
other
social security
billion—a

$439

The

has increased

Employment

work

»*of

the

period reached

which
anything we have
prosperity

employ

Recession and Recovery

business

workweek
The

barring
war,
our
dynamic
enterprise system effectively,
if

and

added

were

but,

fluctuations,

the

Hours

the

will

exhibit

will

work,

1958.

firming

have

These

base

experienced.

ended

survey

tions by businessmen

above

the

with
number of

change

workweek

expanding

sales.

plant and equip¬

expenditures
The

the market

the Spring.

should be in

ment

strikes

looks' m'ore hope¬

and weak sales,

hours

' had
dropped well below the usual full

oppor¬
capital
investment
employment and
factors are part of

for

tunities

succeeded

workers.

unprecedented

provide
and

progress

was

increased

technological

insurance programs

;

recently
the introductiofl

Auto sales have

mobiles.

improved

models, but, with the
secu¬
interruptions to production aristhe unem¬
ing
from /industrial
disputes—
old-age and sur¬ which

current. consumer

strength of the demand for auto-r

under

payments
ployment;' and
rity

vivors'

sharply during the recession. Also
still
to
be
tested
is the; basic

social

rise

simultaneous

renewed

upsw ing. The same generalization
applies to U. S. exports of goods
and services, which were reduced

The

t;u,p,ii,; in7 procurement.

evidence

clear-cut

The acceleration of contract
placements for national security
programs towards the end of 1957
was subsequently reflected
in an

in the spring

The decline ended

impact of population increase and
the continuing flood of invention
and

1953-54-recessionij

halted

year.

plant and equipment ljas been
but
there
is
as
yet no

;or

advance that brought the
industry to
an
unusually high
volume in the latter part of tiie

power:*

•

confidence.
Although
most economic
in¬
dicators
report progress,5 a few
still lag.-Automobile production,
ing

in the

home-

Expansion During the Yeah'

qoming year will
the threshold of the
1960-70 decade during which the

bring

position

1948-49 and*

This

peak-to-trough

movements of 2% and

long range outlook also has
encouraging influence on the

the New

start

•

real

5Vi%:.

the

exceeded

The

n g.

billion in the

contraction

the

amounted

terms

from

—

trend

improved.
expansion in business
last- spring has
been sub¬
stantial, and tne base of recovery
has widened, some major elements
of demand are still lagging.
The decline in business outlays
While the

since

strong

quarter

period,

prosperity"—in
the fourth quarter of 1958 broke
all previous records in value and,
after allowing for price rises, the
physical volume of output is esti¬
mated to equal the peak attained
in
the
summer Zol'. 1957,
The

and

decline

j^e

"measurement

accelerated
with

prime objective in 1959 will
more
work lor more people.

plus side, the total Gross
National Product —the so-called

the

with

1958

economy

number

unemployed still above normal,

4.1/2 %

has

ag¬

building was reversed early in
1958,
and
was
followed
by a

of 1957
to $426
billion in the opening quarter-of
1958.
After
adjustment for the
continued rise in prices over this

On the

entered

with the

However,

rate of $446

declining

The

•

out¬
its prior
The employment situation

physical volume of total
is currently back to

larger than a year ago.

down

was

1958 came to a close.

put

considerably

and at year-end was

average

3%.

third

mately lour million by the yearof

volume

1957

from

higher

with

declined

put

end.

off

fact,

and

The

gregate spending for nondurable
goods and services was scarcely
checked
in - its postwar growth,

put showed a larger swing on a
quarterly basis. During the busi¬
ness downturn,
the value of out¬

levels.

Year

billion,

which

annual
As

national

$437

The movement of national out¬

1958 GNP for breaking "all previous
this momentum continuing in 1959 to
new

gross

value,
about

1959.

the prime objective in

year,

totaled

the

For

product

Secretary Strauss predicts peak income and produc¬
said to have been achieved in late 1958 would

Commerce

setback,

continued

recent cyclical
forward tnrust

the
the

from

covery

sub¬

any

contraction.

stantial

volume.

underwent

time

Thursday, January 8, 1959

income peak.

i.e., after-tax,

disposable,

what
is of vital
equal to it in real

significance,

L. STRAUSS

peak

the

third

the

higher

than

dollars

current
reached

Such

well sustained.

was

buying is closely linked to cur¬
rent consumption needs, and con¬
sumer
behavior in
the 1957-53
recession reflected the fact that

substantially

was

services

seasonally
adjusted
the final quarter.

annual' rate

Financial Chronicle

the

partner of the firm, and a greatnephew
of
the
late
John
L.
Goodbody and Marcus Goodbody,
both
former
partners of Good&

body

the

Co.,

former

higher, however, than in
other recent years, in reflection
of the usual tendency for a rise

1914-51, the latter from 1902
his death this year.

employment to lag behind an
increase
in
output
during
the

the

earlier

modity

stages-of

cyclical busi¬

Goodbody

Co.,

York

New

from
until

members

Stock

Exchange

and other leading stock and

offices

recovery;

New

partner is a son of
Goodbody, (managing

new

Harold "P.

mained

ness

of
to

com¬

exchanges,
operates
38
throughout the country.

Quantity discounts will be allowed to individuals, trustees,
•

and institutional investors

each

large purchase for

single account —ranging from Vi of 1% on purchases of
$25,000 or more to 2!i% on purchases of $500,000 or more.

You

are

invited to ask for

Prospectus

describing these securities and the Company's
business from your own
dealer

broker

year

plies

prices

rose

have

and

reflected
during

demand

a
a

shrinkage in sup¬
period in which

remained firm. Prices of

or any

investment

commodities other than food have

qualified to do business in

your state.

also risen
a

S. D. Lunt & Co.

over

the past year, but

services have advanced

than

other

major

nents of the consumer

compo¬

price index.

The

made

To Be NYSE Member
DALLAS,
Securities

Tower, .will
the

United

quick

—

become

York

New

Jan.

Tex.

Dallas Union

Co., Inc., Adolphus

members of

Stock

Exchange

15th, with the acquisition of
exchange membership by B,

Franklin Houston.
Officers

the

firm

are

Obenchain, president; B. Franklin
Houston,
C.

Dick Clark, Jr., James
Jack C. Payne, vice-

Owens,

States economy

has

presidents; Jack P. Brown, vicepresident and secretary-treasurer;
Philip L. Hendrix, assistant sec¬

substantial

re¬

retary-treasurer.

Situation at Year-End

January 6, 7 959

Dallas Union Securities

considerably lesser amount.

Prices

Changes

through
since shown
little
change,
as
food
prices
leveled off and subsequently de¬
clined. Food prices earlier in the
midyear

Paine, Webber, Jackson & Curtis

Price

Smaller
Consumer

and

Volume

Number 5810

189

The Commercial and Financial Chronicle

(111)
■

1939,

appointed

was

Treasurer in

News About Banks

present world¬
Chemical
Corn

its

Broadening

facilities,

Bank,

Exchange

has

Y.,

officer

the

named

and

or¬

company

President later that year.

will be known

Trust

I'm

to the Pension Trust Division and

who has

Interna¬
Amos

nthat

Amos

Foy

Senior

BANKERS

who

Foy,

direct

will

Division,

In¬

company's operations as Exec¬

the
*

bank's

the

Vice-President

Total

discussing the new company,
Mr.
Helm explained,. "Chemical
International
Finance
Ltd.
will
of

Loans

same

and
in

York

Assistant

Secretaries.
*

IRVING

TRUST

Dec. 31, '58

men

are

works with accounts

De¬

Atlantic

States

and

business

States,

the Mid¬

and

Middle

Western

Mr.

Darcy

handles
England

the

New

New-

Jersey

1,841,890,351

Deposits

1,774,870,208

1,634,707,805

and

due

banks—

from

______

516,649,115

411,080,919

holdgs.

493,207,096

482,159,315

discts.

837,201,036

736,926,821

29,094,372

27.046,893

Govt,

curity
Loans

Undiv.

se¬

profits

H. Roy Winter and Arthur P.
Morgan have: been elected Vice-

•

Ellsworth J.

Michigan,

New

and

York.

1.991,230,223

Domestic

the

'1' ■*.'

i' $>

903,7741811

Burns, Richard W.

Continued

W0RLD4MD& BANKING

'r;rV ;

726,794,348

557,042,962

discts.

1,391,104,667

1,384,340,859

profits.—

67,962,118

64,835,958

THE

John

Co.,

Assistant

2nd,

Morgan

Vice-President, Charles W. Berg¬

AlbTam Claude Jr., Richard
Hart, David L. Hopkins Jr.,
Lawson, Neil M. Holt and
John G. Thompson as Assistant

man,

BANK

John S.

Treasurers,

.1.

V.:'

MORGAN

CO..

INCORPORATED.

Common

31,'53 Sept. 30/58

where

areas

$
Total

resources—

982,560,034 918,535,476 >

—

Deposits

expansion offers opportunities.""/
Charles B. Love and Russell L.

New York

Pine Street;

Cash

due

and

Condition, December 31,19S8

Statement

YORK

NEW

Doc.

other

Smith

Alfred S.

and

OFFICE: 18

HEAD

Assistant Trust Officer.

technical assistance,

whether in the European

1 799.

■CMARTERE O

Vice-President of J. P.

857,868,671

790,796,637

242,685,323

186,615,861

ASSETS

from

•

Hauser,

^Assistant

former

been

have

Presidents,

;

banks

Viceelected

Helm, Chairman.
Love, joined Chemical

Mr.
1951.

& discounts.;

Undivided

391.219,811

362,309,060

.18,050,836

17,158,722

profits-

U. S. Government

❖

■

s't

State,

Vice-Presidents

Elected

oL New York,

Bank

J. Lenox Porter.

Hauser

Mr.

ment

THE

;

*?•

BANK

resources.

Cash

...

and

from

curity
Loans

Undiv.

3,593,567,713 3,184,890,779
3,174,002,554 2.787,584,766

613,977.061

hoMgs.

585,707,523

572,098,141

uiscts.

1.524,329,145

1.470.646,926
45,837,760
42,829,445

Edward

O'Brien,
Jr.,
of
Company's
New
York, Investment Research Divi¬

Bankers

Trust

named a VicePresident of this division, it was
announced on Jan. 5 by William
H. Moore, Chairman of the Board.
4

has

been

Coincident with the announce¬

ment, Mr. Moore made known the
to Assistant Vice-Presi¬

elections

dents of Gorge B. Denious,
Personal Trust

Division

of the

and Alan

Rothmayer, of the Methods Divi¬
sion.

Named

of the

company

the

Dawson,

Assistant

Madison

Avenue

officia

"taff

Sani

were:

Treas

e r,

Office; Nicnolas

Foley,

Assistant
Treasurer,
Public Utilities Group; Daniel J.
Sullivan, Branch Manager, 94th
Street Office and Joseph E. Viel,
Branch
nue

Manager,

Burnside

Ave¬

Mr.

O'Brien

joined
Bankers
Trust Company in 1950 as a junior
analyst in
the
Investment
Re¬
search

the

Division

Petroleum

concentrating
and

Automobile

«....

1,505,876,335
442,967,864

178,722,647

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

3,807,259,870

•

Banking Houses
Customers'

.65,042,893

165,547,113

Acceptance Liability

Other Assets

•

...

•

63,690,154

•

620.358,278 520.287,015

—

543,484,450

449,288.721

210,814,151

123,399,116

$8,329,981,739

Govt.vsecu-

95,537j635

94,563,732,

discounts-. 266,953,078

250,630,135

-6,224,258

5,839,821

holdings—

rity
Loans

profits—

Northern

The

Trust

York

New

Watertown, N. Y., was

Company,

given approval to increase the
capital stock from $2,000,000 con¬
sisting of 80,000 shares of the par
value of $25 each, to $2,280,000
consisting of 80,000 shares of the
par

Loans

value of $28.50 each.

Certified

copy

of Dissolution

Part

Term

Court
held

New

York

the

State

the

Order
Special

Supreme
York,

of New

the

for

and

Deposits

of
Court

County

•

♦

•

$7,386,096,807

•

4,136,456

Foreign Funds Borrowed

58,773,172

Reserve for Taxes

Acceptances Outstanding
Less: In

Portfolio »j:

•

Other Liabilities
Reserve for

Final

granted at

LIABILITIES

•

.....

•

...

Contingencies'

•

$184,014,712
14> 7 6 5, X 4 6

•

169,248,866
60,568,261

19,749,712

Capital Funds:

Capital Stock

........
(13,090,000 Shares—:$12.50 Par)

$163,625,000
400,000,000

Surplus
Undivided Profits

•

67,783,465

631,408,465

House

thereof, on Dec. 29, 19 8,
declaring
Peoples
Industrial
Bank,, New York, dissolved and
its corporate existence terminated,
with

filed

New

the

York

State

•

The

$510,850,056 are pledged to secure public deposits and for
and trust and certain other deposits are preferred as provided
by law. Securities with a book value of $25,412,945 are loaned to customers
against collateral. Assets are shown at book values less any reserves.

Of the above

'!»

appointments of Gerard J.

Creamer, Gaius W. Merwin, Jr.
and
Daniel I. Sargent as ViceNew

Company,
nounced

Chairman
Mr.

Creamer

executive

York

Horace

of the

are

Member Federal Deposit

Flanigan,

joined the Bank's
program

Insurance Corporation,

an¬

Board.

training

assets

other purposes,

Banking Department.

$8,329,981,739

Presidents of Manufacturers Trust

Office.

•

due from

and

Undivided

945.243,956

se¬

profits..

sion,

due

banks.

Govt,

resources

* '■'

banks

Sept. 30, '58

Deposits

Cash

YORK

NEW

Di!C. 31, '58

Total

'■^

Deposits

EXCHANGE

CORN

•''

•_

YORK

-7 Dec. 31/58 Sept. 30/58

Total

'CHEMICAL

ffi

OF NEW

BANK

Depart¬

Street.

Broad

of the

charge

Loan

Mortgage

Obligations

•

respon¬

sible for its Far Eastern business.
Bank's

$2,100,874,863

Municipal and Other Securities

Mortgages

Gordon "

were

Howard J. Poduska and

D. Brown,

•

where

...

the

bank's International Division, 165

Broadway,

the

member

Cash and Due from Banks

secu¬

holdings—— 235,000,649 246,582,012 '.

rity

Exchange Bank, New York is was
announced on Jan. 7 by Harold
H.

Govt.'.

Loans

Vice-Presidents of Chemical Corn

——————

OFFICES

Sept. 30, '58

$
Total resources.

Cash

Both

Banking Division. Mr. Cavanaugh
dle

COMPANY, NEW YORK

announces

dent to Vice-President.

;■

Jere H.

year.

business

sjs

Trust

Company,
New
the promotion of
Cavanaugh and David K.
Darcy from Assistant Vice-Presi¬

Trust

»'i:

present, Mr. Sargent heads
which handles the
>

Raymond, Ernst Schneider and
Traugott V. Sendler were named

1,268,386,427 1,208,444,438
71,113,502
68,007,453
_

Irving

the 1 division
Bank's

discts.

profits—

Inc., N. Y., was
announced." Other elections were,

participate in international trans¬
actions or projects which require
American capital, equipment,

■

629,521,625

Morgan

"Specifically, Chemical Interna¬
tional Finance Ltd.* proposes to

Market

the

Undiv.

The election of Francis K.Gib-bons

States.

Fuller, Donald E. Lee, Robert M.

872,826,033

2,891,024,338

holdgs.

<fc

Undiv.

commercial
banks. Through it, the bank anti¬
cipates taking an active part in
helping its customers in the
United
States
and
overseas
to
establish themselves, or to enlarge
their operations outside the

know-how

business

1955

764,668,535

865,585,430

due

banks—

curity

handled

and

Govt.-se¬

traditional type of foreign

United

Lbans

Manufac¬
in 195l. He
Assistant Treas¬

May,

1,057,629,207

se¬

present,

Manufacturers

Govt,

financing

be restricted to the

the

trade

3,257,855,823 2,936,899,512

curity holdgs..

joined
an

pro¬

Secretary.

2,779,132,984 2,523,564,898

from
U.

riot

were

Lindsay T. Andrews, Henry E.
Christofferson, William H. Cowie,
William H. Duker, Jr., Arthur E.

Sept. 30, '58

•••'V

3,127,664,879

resources-

Cash

81, '58 "

Dec.

Deposits

Vice-President.

utive

3,654.044,628 3,332,749,463

clue

banks—

Waters

COMPANY. NEW YORK

TRUST

i' S.1 ' C-y_. -y-'-

•

ternational

appointed

cember
>.

______

and

from

from Assistant

Sept. 30. '58

since 1957.

nounced

Cash

Rothmayer
has
been
with the
Methods Division of. the cornpany

tional Finance
Ltd.,

Bank's

Vice-President

Department in 1955.
Named an
officer of ther:!bank in 1956, Mr.

oeeu

Deposits

division

Assistant

of the com¬

manager

the

dent of Chem¬
ical

resources-

James

moted to Assistant Vice-President

CO., N. Y.

$
Total

Assistant

Company

bined Pension and Personal Trust

Presi¬

elected

named

Helm,

Mr.

heads

Sargent

urer/

pany

was

Jan.

Rothmayer joined the com¬

in 1946 in the Personal Trust
Division.
Later, he was assigned

Harold

/ Mr.

was

Mr.

h airman

Mary¬

turers Trust Company

1953.

Ltd.,

Merwin-

handling

Named

International
Finance

Company

and
TRUST

Dec. 31, '58

Arizona, California, Nevada, Ore¬
gon and Washington.

joined

assigned to trust investment work.
an* Assistant Treasurer in

Chemical

Denious

Mr.

"
' 1 "
Bankers
in- 1934, he was

ganized a wholly-owned subsidiary which

>!!

MANUFACTURERS

Vice-President in 1955.

1955
Vice-

Assistant

'an

the

Mervin

Secretary in 1953 and

named an

was

heads

Ohio, and <in the city 'Hastings, Robert E. Lee;'Eugene
Pittsburgh, Pa.
J. McCabe, Benjamin D. Sisson

; : '
joined Manufac¬
turers Trust
Company in 1947.
He
was
appointed an Assistant
'

Mr. O'Brien

Washington,

and

D. C.

CAPITALIZATIONS

fields.

1953.

Pennsylvania,

Delaware

land,

Bankers

and

OFFICERS, ETC.

REVISED

wide

business

NEW BRANCHES

Creamer

Kentucky,

Assist¬

division which handles the Bank's

CONSOLIDATIONS
NEW

Mr.

present,

Assistant

1949, and

Vice-President

ant

GREATER NEW YORK

—

OVERSEAS

page

(112)

The Commercial and,Financial Chronicle

Motors

showed

some

stir¬

ring, presumably from rein¬

THE MARKET... AND YOU

vestment demand

By Wallace streete

Stocks continued to forge had to be laid to American
higher, finding much profit- Telephone which continued to
taking to be absorbed on the work to the best postings seen
way up, with industrials

ap¬

this

issue

since

1930.

proaching the 600 line for the fact, it was Telephone's
first time in history and utili¬
spirited response to its first
ties at their best level in more stock
split in history and
than

abandonment

quarter century.

the

classic,
$9 divi¬

32-year-maintained

dend that enabled the indus¬

Selling drives made little
headway even at the poorest

the

year began, but they
rather quickly and not

trial

new

tired

rescue

several times.
❖

Rails

the

were

laggard

❖

It also set off

sec¬

❖

stock

was

seized

soft

drink

merger
candidate with various other

split

outfits

but

average

post

it tended to peter out rather U. S. Steel which hasn't

rapidly without

any

real fol¬

low-through.
Nervous Sections
Some cancellations and
tract shifts
nervous

con¬

kept the aircrafts

and the combination

profit-threats in Venezuela
and ample discussion of the
dire

consequences by finan¬
cial services kept the oils well

restrained.

There

was

occasional

un¬

easiness in the chemicals, the
drugs, some of the metals and
the

Warner

Air

Eaton

and

Foundries.

Line

American

Steel

The recent popularity for
quite
made the par line yet. Steel food shares was also
pretty
did forge to within the mini¬ much over, but it left some
mum fraction of that level to
neglected items in the section,
start off the week. The issue
including General Baking
has never sold above par since which still offered a dividend
1937 despite 3-for-l and 2- yield of around 4.7% for a
for-1 stock splits in 1949 and
company that was able to turn
1955.
in thoroughly c o m f o r t in
g
profits for 1958 despite the
Chemicals Laggard
trouble spots elsewhere. High¬
The chemical easiness kept
er sales for last
year rounded
these issues from
setting any out a decade of
uninterrupted
records, n o t a b 1 y du Pont
improvement but, apparently,
which had approached the 250
was little
inspiration to those
line in 1955 and hasn't been
bent on chasing the highwithin a dozen points of that
priced, split-hopefuls.
area
since. Similarly, Allied

This announcement appears as a matter

offer

buy

any

of record only. It is neither an offer to sell nor a
of these securities. The offer is made only by the Prospectus.

sporadically,

good

has

book value in the mid

80s and is

than

dozen

points under its

1957 peak.
company's capitalization

The
is

such

that

there

[The

views

expressed in this
necessarily at any
time coincide with those of the
"Chronicle" They are presented
article

those

"leverage" in the common
stock, meaning that earnings
fluctuate rapidly on an up¬
swing in profits. As business
slowed from 1956 to last year,
the per-share profit skidded
from

than

$3.25

mated

$8 to

esti¬

last year.

operations showed

Then
good re¬

one

New

car¬

has
a

6% First Mortgage Convertible Sinking Fund Bonds
due November 1, 1968

Price 100% (Canadian
Currency)
Plus accrued interest

joined the ranks of dividend
payers late in 1957. Its final
payment of 1958 lifted the

has been with

Fitzgerald

firm

for

may

be obtained from the undersigned only in such States where the
securities in

compliance with the securities laws thereof.

Company

W. C. Pitfield & Co., Inc.

e n

f the

Traders

AssoAlfred

ciation
New
and

Tisch

York

Chairman

the National

event, the indicated

turn at the

434%

rate is

new

without

waiting

re¬

good
for

further liberalization.

Goldman Sachs & Go.

Admits New Partners
Goldman, Sachs & Co., 20 Broad

Street, New York City, members
of the New

Charles

quality
labeling it
one,

was

times than not

even

Ohio

dividend

record stretches back without

mitted

from

been

ad¬

partnership

general partnership,
limited partner in the

pioneering
of rail¬

Stieglitz,

H. Herman Consolidate

when the line

facets

Halle &

member

new

have

general

firm.

dated

many

D.,

Waiter E. Sachs has re¬

On Jan.

James

Tenenbaum and

Wass

Harold

interruption some 36 years,
although the payments were a
bit erratic early in this decade
was

rails, some
a blue chip.
O's

Arthur

Grannon,

Robertson L. Jay

tired

that

Altschul, John W. Caliaghan,

the firm.

Yprk Stock Exchange,

announced

have

Stieglitz and
Co. consoli¬
Halle & Stieglitz. Offices

of the New

New

Halle &

Herrman

Henry

York Stock

firm

Exchange

Wall St.,
City, and 48 Com¬
Street, Newark, N. J.
are

York

merce

roading, some definitely dis¬
General partners are Stanley J.
appointing. Lately its fortunes Halle, William M. Cahn, Jr.,
have
improved greatly and George W. Nubel, Jr., William D.
its $4 payout (and yield of Prosnitz, Stannard B. Knothe, J.
Hindon
Hyde, and Robert A.
slightly over 6%) is the high Nube. Louis Strauss and Louis G.
with

business,

others

annual rate.
in

earnings

the

rail

were

off

last year but the dividend is
in

estimated to

profit for the

year.

the

eventual

Strasser

limited partners.

King ¥.-P.

Of Kormendi § Co.
Kormendi

Street,

New

Co., Inc., 70 Pine
York City, under¬

writers and distributors cf invest¬

Earnings Increase Plus

securities, announced that
B. King, has joined their

William

organization

Romance

He was

In the airlines the

are

William B.

ment
December 22, J 958

Presi-

former

quarterly rate to 90 Advertising Committee of the Na¬
tional Security Traders Associa¬
cents for a payout of $3.15 for
tion.
:
last year. And even the indi¬
cated $3.60 rate on the new

jeopardy and is well
covered by the better than $6

Allen &

75-cent

legally offer these

Security

for all-time

may

Mr.

good gains
earnings recently. It only

For

(No Personal Liability)

ad¬

Fitz-

York

lists

Campbell Chibougamau Mines Ltd.

Company,
40
Street,

riers able to show

found
*

been

Wall

years,

eastern

has

Tisch, who

something of
few

Tisch

partnership
gerald &

the

unknown. But it is

the

mitted

nounced.

In the rail section Western

Maryland is

Fitzgerald Partner
Alfred

been

Interesting Rail-Issues

dividend

A. F. Tisch Becomes

City,

bound late last year.

lit

$5,000,000

not

of the author only.]

much

becoming

undersigned

Airways

Rails

Chesapeake

Copies of the Prospectus

World

American

ex¬

Pan

participation in that are indicated in other
upswing in the gen¬ high-flying issues where the
eral economy.
Wheeling Steel interest has been more in¬
In the mid 50s, for instance, tense.
as

NEW ISSUE

(Canadian Cukki-ncy)'

of little interest

one

further

In any

been

Mfg., Borg- cept,

tires, although the latter
Chemical hasn't been within
had had a good run and some
There was a rather good basis is covered more than
some
30 points of its 1956
reaction wasn't
list of issues around still offer¬ twice
unlikely.
by estimated 1958 earn¬
peak to give something of a
lie to the tale of the industrial ing a return of around 5^ % ings of $7.88 a share while the
j
ATT the Bellwether
but few were associated with company projections
point to
A good measure of credit average that "stocks" are at
any market fireworks. Among $9 a share as probable for
for the continued new
their
highs
highest levels in history. them was American Brake 19 59! Hence, dividend
largesse would seem logical.

solicitation of

Thursday, January 8, 1959

even

not in posi¬ fad that was a continuing sup¬ before it could get into its
anything ap¬ port to the many hopefuls whirl, the denials started flow¬
proaching record levels and around, mostly those in the ing and killed off its one-day
when, as there was to start bracket above $100, such as show of spirited market ac¬
off the new
year, a session of International Paper, Eastman tion.
two of good action showed
up, Kodak, Firestone, and even

tion, their

tion

Seaboard

rails,

generally which, at the moment, is the
much were the high-return items romance item because of its
came of it.
Chrysler for in¬ including such quality items jet service. It isn't all ro¬
stance has yet to reach what as Santa Fe with a return of
mance, however, since inau¬
were the year's low. prices for around 5 V2 % and
Chesapeake guration of jet service prom¬
1955 and 1956, with its peak &
Ohio
which, at recent ises a sharp upturn in
for recent times above the levels, was a 6% item.
earnings as increased revenues
❖
*
100 mark of 1955, with the
%
and substantial economies re¬
current standing only slightly
Steels, despite the pinpoint sult. Some estimates are that
over half of that
figure. Good demand on some and the Pan American is currently at
production reports from De¬ rather good
general group a level that would be less than
troit were
still being eyed
movement
recently, still 10 times 1959 earnings, which
skeptically and more concrete would seem to offer some of is distinctly conservative
evidence of an upturn was the better
basic values as well against the 60-times ratios

average
to plough awaited.
prices, and once the pressure through the overhead resist¬
Belated Bargain-Hunting
abated, the list was able to ance late in December and
the
There was much hunting
string of record
snap back smartly more times start
than not in impressive shows highs. And since then when among the neglected items for
the list showed signs of falter¬ issues that could
of strength that, in
finally get
spots, de¬
fied any logic or specific rea¬ ing, Telephone came to the into the act. Charles E. Hires
son.

Shoe,
the

story has

Bvrd

Vice-President.

formerly with the firm of

Brothers.

Number 5810

.The Commercial and Financial Chronicle

However, the
for

rate

Rate

Public

Utility Securities

increases

California Water Service Company
supplies water at Contra

company

in 29; communities and

retail

ad¬

jacent areas in California, with a

population

Chico,

Hermosa

Beaches,

Petaluma,

Redondo

Stockton and Visalia. and the Bear
Gulch

said to

Contra Costa Districts.

and

the

largest U.

privately operated water company
(apart
from
holding
company
systems such as American Water
Works).
The

areas-

largely

are

tural, though there is
production
and
light
Residential

agricul¬

oil
industry.

the

already

properties

construction

Fathers,

help of the Indians.

ducts

were

and

water

diverted

with

Mountain
into aque¬

supplies
being
thus
supplied. A few of these
facilities may still be in opera¬
tion—at any rate they are pre¬
underground

tapped,

were

Missions

have

been

exempt.
The
using acceler¬
.which
is
a

company has been
ated
depreciation

pro¬

factor.

•

; .*

/•

' Vn

about

88%

The

has

company

doubled

size

the

level

companies,

purchases and sales of properties

the

rate

return

gradually

in 1950.

4.2%

having
from

return

sought in the rate

was

The
from
in

menting cash from operations, no
financing was required in 1957,
except for the sale of 12,000 shares

dividend

rate

the earlier

1954

and

Dividends

about

6^%

stock.

5.5%

convertible
- ^ •

follows:

•

currently

$2.40.

partially

non¬

' bM

■

Millions

the

dividend

Common Stock__.

Total

may

in the 12 months ended
1958.

in January,

previous period, it represented

1958 for $1,909,-

000

(the revenues from this prop¬
erty
were
less than 2%
of
revenues).
Possible sales might
cities of Stockton
the San Ramon

Valley County Water District pro¬

poses

buy

portion

to yield

48,

the

While

the

20.7

$60.8

and

100%

anticipated,

the stock would be
about 13.5 times

Q)eiec/ot6
Board

Honorary Chairman of the
N. BAXTER JACKSON

CHEMICAL

Chairman, Executive Committee
DRYSDALIS

ROBERT A.

Drysdale & Co.

Senior Partner,

DUNHAM B. SHERER
New York

JOSEPH A. BOWER
Chairman, Detroit International
Bridge Company

CORN EXCHANGE

gain of 14 cents over the amount

THOMAS R. WILLIAMS

President,

reported for the 12 months ended

early in
1958 had granted a 5%%
wage
increase which (along with severe
storms in the area) accounted for
September. The

the

company

BANK

York

165 Broadway, New

Ichabod T. Williams & Sons, Inc.

JOHN K. ROOSEVELT
Roosevelt & Son
HENRY UPIIAM HARRIS

Partner, Harris, Up ham & Co.

Chairman

HAROLD II. HELM

dip in earnings.

H. E. HUMPHREYS, JR.
Chairman.
United States Rubber Company

ctfendenbed Ufita/enienl

CASON J.

The

offer to sell nor

solicitation of offers to buy

any

of these securities.

of business December 31,

At the close

1958

Farmer

CALLAWAY

ROBERT J.

This advertiscr;c:t is ntither-an

McKIM
President,
Goods Corporation

Associated Dry

MAURICE T. MOORE

offering is made only by the Prospectus.

Partner,

Cravath, Swaine & Moore

JAMES BRUCE

January 7,1959

NEW ISSUP

ASSETS

J. ALBERT WOODS

Industrialist
President,

Commercial Solvents Corp.

Cash and Due from Banks

295,841 Shares

945,243,955.86

U. S. Government Obligations

Loans

Company

394,209,559.69

JAMES B. BLACK

23,193,256.25

Board,
Pacific Gas and Electric Company
GILBERT II. PERKINS
Vice Chairman

22,462,328.92

ISAAC B. GRAINGER

80,144,901.16

KENNETH E. BLACK
President,

President

Accrued Interest and Accounts

Common Stock

The Home Insurance Company

Receivable

value)

Other Assets

13,548,353.34

4,658,689.71

.......

"$3,593,567,713.32
The
to

Common Stock the right
share, for the above Common Stock at the rate of one

ALEX. II. SANDS, JR.
Vice Chairman,
The Duke Endowment

ARTHUR B. GOETZE

President,

Company is offering to holders of its outstanding

subscribe,

$50

per

share for each 20 shares held of record
will

Chairman of the

Banking Premises and Equipment

Customers' Liability on Acceptances

or par

ROBERT G. GOELET

1,524,399,145.44

Other Bonds and Investments

Pennsylvania Power & Light

(without nominal

BENJAMIN F. FEW
President,
Liggett & Myers Tobacco Co.

585,707,522.95

Real Estate

State, Municipal and Public Securities

Western Electric Company, Inc.
HENRY L. HILLMAN President,

Pittsburgh Coke & Chemical
Company

January 6, 1959, Subscription Warrants

expire at 3:30 P.M., Eastern Standard Time, on January 26, 1959.

LIABILITIES

During and after the subscription period the Underwriters may offer
prices varying from the subscription price.

Capital Stock ($io. par)$
Surplus

Undivided Profits
Reserve for

Copies of the Prospectus .may be obtained from any
•writers

only

of the several underin States in which such underwriters are qualified to act as

dealers in securities and in

which the Prospectus

may

CHARLES.II. KELLSTADT
President,

shares of

Common Stock for sale at

Reserves for Taxes,

legally be distributed.

Sears, Roebuck and Co.

63,765,900.00

186,234,100.00

Expenses, etc.

Dividend Payable January

Acceptances Outstanding

1,1959

(Net)

295,837,759.58

45,837,759.58

Contingencies

C. WALTER NICHOLS

9,780,167.76

17,072,528.49

3,825,954.00

83,015,091.69

Kidder, Peabody & Co.

Drexel & Co.

Corporation

Pierce, Fenner & Smith

Merrill Lynch,

Real Estate

FREDERIC STEVENS ALLEN
Trustee

WILLIAM

10,033,657.83

Deposits

Lehman Brothers

Chairmfi, Nichols Engineering
& Research Corporation
ROBERT GOELET

HOLLOWAY

Honorary Chairman of the Board,

Other Liabilities
The First Boston

3,174,002,553.97

W. R. Grace & Co.

JOHN R. McWILLIAM
w. koss McCain

Retired

Chairman of the. Board,
Aetna Insurance Group

$3^93,567,713.32

FREDERICK E. HASLER

Stroud & Company

Hemphill, Noyes & Co.

Dellaven & Townsend, Crouter &

Chairman, Haytian American
Sugar Company, S. A.

Incorporated

Bache & Co.

Auchincloss, Parker & Redpath

E. W. Clark & Co.

Blair & Co.
Incorporated

Elkins, Morris, Stokes & Co.

Bodine

WILLIAM

Securities carried at

$148,842 #52.76 in the

deposited to secure public funds

WORTHINGTON

foregoing statement are

President,
Home

and for other purposes required by law.

Life Insurance Company

JOHN K. SUM AN
Oil and Gas Consultant

Janney, Dulles & Battles, Inc.

Green, Ellis & Anderson
W. II. NewboM's Son &

Reynolds & Ce„ Inc.

A. E. Masten & Company

Parrish & Co.

Newburger & Company

Co.

Singer, Deane & Scribner

Yarnall, Biddie & Co.

Booker Brothers, Inc.

Blair F. Claybaugh & Co.

Warren W. York & Co., Inc.
James A. Leavens, Inc.

Supke, Yeatman, Mosley
Incorporated

& Co.

Convenient Offices
Every Banking and

Throughout Greater New York
Trust Service at Home and

Charter Member New

Member Federal Reserve System

might

selling at only

earnings.

latter
a

approximate $3.55 on-which basis

figure compared with $3.38 in the

30,

5%..
on

forma basis for rate increases

FRANK K. HOUSTON

(highest since 1929)

and $3.26

sold

to the

around

53%

8.1

recently

over-the-counter

earnings, if adjusted

received

Stock

Preferred

From this

be made with municipalities.
Hanford Water System was

Concord and

pro

the

been

than

The

made

Latest

had

Percent

Long-Term Debt $32.0

1954-6 though not

1958

market

Capitalization is approximately
raised

was

stock

quoted

preferred

in 1957; it is possible that a small

part

The

cases.

$2 rate to $2.20

were

taxable during

in¬

they gradually increased to

$3.32 in 1957

preferred

stocks (all $25 par) with dividend

postwar

Nov.

and

outstanding
of

sales

clining to $2.62 in 1954.

series

reve¬

cooperated with others in forming

may

served because of historic interest.

municipal water districts.
As with other water

;

has

company

number

period, customers increasing from
105,000 in 1945 to 230,000 in 1957,
the utility plant
nues.
While the company's wells and
has more
and the Sacramento River are the than tripled to $74 million. Water
main sources of supply, about 29% output increased from 128 million
is purchased from the San Fran¬ gallons per day to 318 million, or
cisco Water Department, Pacific nearly 150%.
Gas & Electric, etc.
In Los An¬
Share earnings remained some¬
geles County the company
has what irregular during 1950-53, de¬
for

account

The
a

1957 earned 5.5% on invested cap¬
and 5.1% on net property—

begun back in 1769

was

expected

again

areas.

ital

creased

Franciscan

streams

some

commercial

and

that

Carlos, facilities

San

Mateo, South Ban Francisco,

San

small

Two

acquired in 1957

Of historical interest is the fact

Los

East

and

Angeles,

adjacent

system.

were

including operating.

840,000,

Bakersfield*

Costa

properties

six

rates ranging from 4.4% to 5.5%.
Construction
expenditures for
November, reflecting 1957 were close to $5
million, a Several series (about one-fifth of
two of these applica¬ reduction of
27% from the previ¬ the outstanding number of shares) tions.
If granted, the remaining
ous year although the number of
are convertible into common stock
amounts
would
yield about 11 customers gained 2%. With
pro¬
at varying rates.
cents additional. The company in
ceeds of the Hanford sale supple¬

effective

decision

The

applied

company

increases

vide about $140,000 additional net
income (25 cents a share) became

By OWEN ELY

(113)

Abroad

York Clearing House Association

Member Federal Deposit Insurance

Corporation

The Commercial and Financial Chronicle

(ii4>

stores

New York Business Leaders
City's leading
t-;

and industry heads believe the

commerce

will be

year

good

Optimistic

one

during

the

the, strong
S.5 economy* PUBLIC

sion.

see
new
highs in
business ehdeavor;
although the possibility of a pro¬

lines

tion Director.

will

ance

better than 1958—for the nation's

ance

business, with upward trends in a
number of areas, was expressed by

expect

14 business and industrial leaders

volume

than

participating in the annual

will be

increases

sharp

report

1959
good year—and probably
agreement -that

in sales in 1959. We in life insur¬

sym¬

industries,

write
we

but

more
did in

hopeful

are

the records

match

not

may

these

that

tracted

Steele strike
may

of: this

and

hold, food and
drug products

1958

group

our

Nine of the executives contribut¬
are mem¬

bers of the Association's Board of
Directors.
1
all their views

are

what

INSURANCE:

Clarence

President,

New York Life Insurance Com¬
and

pany,

President

most

insurance

other

felt

businesses

the

favor-£

continue
able future
duction

some

increase

Mass

James

Hill,

Board,

Sterling

hous¬

have

not

ness was

writ¬

limited money

ten,

the

larg-

est

annual

supply and less attractive financ¬
ing terms will probably act as
restraining ; factors.
I
do
not
anticipate any important uptrend

Henry C. Turner, Jr.

exceeded

construction.

volume

industrial

;

deed, our new
ordinary business, which

dicator of the expansion plans of
industry. Such awards have been

still

years

the

backbone

States,

rose

J. Myert

all-time record

$47,500,000,000-$1,900,000,000
above 1957.
Our group business,
always more responsive to eco¬
nomic
nary

conditions

than

ordi¬

our

business, declined in 1958 by
$2,800,000,000, about

estimated

20% below 1957.
Insurance in force increased

$35,000,000,000 during the
$493,000,000,000. This

was

year

the 25th

consecutive year that insurance in
force has risen.
Last year at

eral

economic

the

cal

outlook

many

level

but

important in¬

for

with

the

con¬

past

two

general

im¬

business,

should
improvement
during
1959.
However,
there
should be a large increase in this
category
during the
next
five
show

years

abandons

ob¬

facilities

modern

and

industry

solete

and
develops
plants for new
production.

efficient

expanded

due

primarily to wage increases
throughout industry as well as in
construction.
Summary — 1959
boom

ments

less

was

is encouraging. Very
industries more cycli¬

character

good year but

not

year.

con¬

tinue

the

than

life

insur-

William II. Burkliart,
President,
Lever Brothers Company, and

Vice-President

goods

will

years,

our

ports

will

selective

and

require

excess

Construction

the overall cost

will be

of pro¬

required by

of the

industry

large

cover

increased costs.

John.

Hill,

President,

Company,

Inc.,

the

several

Association.

packaged
consumer
through grocery and drug
,

Hill,

Jr.

for medicinal preparations.

return

apparent
halt

the

dicate

trend.

percentage
match

-industry's
upward
the other hand, the

that

increase

shown

for

may

1957

not
and

1958.

Long term outlook is also good.
purchasing power high, the

all

people turn more and
products
related
to

The

drug industry is also
a particular
beneficiary of the in¬
crease
in
population
and
of
medical
the

progress

which

development

products

that

aid

of
in

has

many

income

reflects

new

bile

many

high

and

optimistic

that

metal

may be
levels of

protecting
health and preserving life.

records

by the middle of 1959.

outlook.than

year

ago.

working

activity
expected with improved
-

demand

and

the

automo¬

durable

consumer

not

industry

should

only from the return

This

announcement

securities.

is neither

offer to sell nor a solicitation of an offer to
buy any of these
offering is made only by the Offering Circular, which
may be obtained
undersigned only in States in which the
undersigned is qualified to act as a
an

The

from the

dealer in securities and in which
the

Offering Circular

may

legally be distributed.

higher levels of general busi¬
ness
activity, but also from the
products

new

tions

coming

New Issue

ear

CLASS

buy

these

COMMON
per

STOCK

share)

research

securities.

de¬

demand.

Re¬

copper

k: s

into

with

consumption,
domestic

producers
d r a s tically
curtailed their

output.
June

some

not

The

good

strong

offer

offering

Robert

Page

producers
operating at

were

the second

durable

about

goods
rise

with

coupled

60%

capacity.

half of the

activity

year,

the
industries brought
in

demand.

strikes

This,
copper

properties in Rhodesia and Canada,

effectively reduced world
stocks.

The

copper

prices

the

fourth

sell

made

two-year
was

quarter

solicitation

only

the

copper

decline

reversed.

Offering

the

offer to
Circular.

ISSUE

Corporation

(Par ^aliie $2

applica¬

its

the likelihood

NEW

First Lumber

new

all, 1959 should be

and

This

50,000 Shares

and

out

laboratories.
All in

:,/

reflect

consumer

improvement

chemical

benefit

300,000 Shares

Northwest Gas & Oil Exploration
Company
COMMON STOCK

PRICE

per

($.10 Par Value Per Share)

PRICE $1.00 PER SHARE

Ui:a\
40

Exchange PL. Ncav

York 5

Mackii:. isc.
HAnover 2-9000

Copies

the

Offering

Circular

may

obtained

from

the

undersigned

GREENFIELD & CO., INC.

December 31, 1958

and

Corporation,

continued

goods

industries.
The

!V/,

President,

Page,

States

tion

rising, and the consumer's at¬

seen

V-.

copper

line

sales

Consumer

April.
To
bring produc¬
John A. Hill

and

Good

; •

YY-

that

produc-.

titude

im-

reaching
the
highest
point

to in¬

new

trade,

must

increased/

rather

industries

the

York

New

the first-half of 1958,,
consumption in the United

tion

Wall

importers. ^

fined

see

its

creased

tbe-

may

During

market

clearly

With

American

seem

its

Robert

durable

goods

hold

must

Association Director.

consumer no

the

preference

promotion

Phelps Dodge

spending and
the expected

into 1959, there are no
signs which indicate a

sales

Port

and

govern ment ;
James

reces-

there

where

prove

^business

increase

the

sion, while severely affecting cap¬
ital goods, did not interrupt: de¬
As

kets

for established U. S. brands, eon-

COPPER:

spending, an':

mand

selling in the face of stiffening
competition. Even in, those mar¬

halt'

to the decline

record

Vino

competitive position so. ^
that any added cost of doing busi¬
ness
through the Port ! does not
exceed the advantages and special
activities
it
offers
to
exporters

the slope of recovery
promise of resuming the
was interrupted in

middle

and

give

The

Gerald

the

growth which

1958

Air

Business has already moved far

enough

growth which
resulted

years.

ex¬

hard

tinued

Association Director.

;

has

past

during

past three

con¬

1957.* A

over

the

business

industry's

sales

been

expenditures for

Reduction

the

true

heating.

space

increasingly

maintained.

should

health.

CONSUMER PRODUCTS:

Sales

the

Forbes

1959, and moderate rates in¬

segment

seg-}

■

Construction costs will probably
increase moderately during 1959,

should

con¬

re-;;in

be a;:

can

has

Harland

previous '

availabilities

foreign: trad^However,

somewhat

and

corresponding

dollar

f;.

ers.

for

increase

creases

commodity

year for many

CHEMICALS:

drug industry,

outlook

1959

viding utility service will be high¬
er

lower

satisfactory \

expenditures.

costs

Vino, President,
Company, Inc., and:;

products, I;;
believe; tha t

moderate

this time the gen¬

than favorable. This year most of
the business indexes are
rising and

likely

low

provement

Clarence

life insurance
in the United

awards

all

trend

except
for 1957.In¬

tract

high

new

for

•

commercial

The

Chairman

Drug Inc.; and 1

ceptions of demand potential. The

any

because

our

;

gas

This

1958

^ V
exception
yearly sales of the drug industry

busi¬

Jr.,

without

now

placed

f .b' y

necessitate

Association Director.

shows

books

use

are

struction

Almost

may

show

quality.
'

ending

v e;ever

and

DRUGS:

due

primarily
to
growing
Highway

ing

convenience

year

the

favorable.

and

new

increase

volume

sal

in"*

1958

exceed

■

because

further

new

'William H. Burkhartl,

foresee-

that

duction

h o-u.1 d

•

V;-

1959?:^;

sales

1959

$65,500,000,000

mated

Such

Guiterman

In spite of
prices with a

this;. fazY~

through

is,"

her

program.

recession

1958,

trend

•

Association

vorable ; trendy
will • continue V.

show

life

1958, but the companies still en¬
joyed a successful year. It is esti-

Hence, the prospects for 1959

Tesumed

was

latter v;'

and

con-

offer

the

Association.

the

year

Gerald

corresponding periods

expected■to
the

preceding

part

totals will

the

Construction

Myers,

the

gains. '-;i

This
able

than

intro-*: not less than ;:
improved •• 6%. Gas sales >
products by the industry, aggres-;
WillY continued
months and I believe that it will sive merchandising and promotion- to increase as 5*
continue
to
show
moderate by
retailers and manufacturers, a result of.and a
continued strong demand the
improvement
continuing
for
1959.
by consumers for products which trend
toward

1951) will bring:
LIFE

showed
sistent

ing to the round-robin

Here

goods

FOREIGN TRADE:'

sively larger .electric utility sales

soft
lines,

many

pace

YY-'-V1

recovery.

the v*

during
slow the even

The long-term trend of progres¬

and

ordinary

the outlook for the

rabies

sales of house¬

business will approach the peak
new
by the Commerce year of 1957.
;
% ">•
j
and Industry Association of New
CONSTRUCTION:
York, Inc., issued Dec. 30.
;
The year-end forecasts cover the
II.
C.
Turner, Jr., President,
fields of life insurance, consumer
Turner Construction Company,
•and
Vice-President
of Associa¬
products, construction, chemicals,
tion.
copper, drugs, foreign trade, LatinAmerican trade, petroleum, publicThe general economic outlook
utilities, railroads and real estate. has improved during the past six

posium

year conducted

du-

consumer

> i;

summer

General

shall

most

Board, Consolidated Edison Co.
of New York, Inc., and Associa¬

<•;,

Despite

declines

Thursday, January 8, 1959

...

that

UTILITIES:

Harland C. Forbes, Chairman of

1957-58 reces¬

new

compared to 1958.

one

were

elements

Street, New York 5,

N. Y.

Tel.:

2-9290

in
In

year

Number 5810

189

Volume

domestic producers increased
1959; the

For

prospect

Commercial arid Financial jCThronicle

(115)

their mark, with the dampening effects -RAILROADS:

production rate substantially. ;
-

The

tight

future

appears

perhaps offset by
government action;
our
money

estimate

i faVorableV The additional produc¬

now

A
•

1958.

-The

railroad

15th

that 1959 will be

are

consecutive

the

crease

and

record

year

extent

ex^n;

of in-

year

the

outlook

me °ut!?ok tor ?en<*aA

in construction

months

Norman

Tishman Realty and

American business is expansion minded by nature, a

characteristic
•which is reflected in every field.
There is every indication that real
V
;
; estate will fol.

and

the

cur¬

rising de¬

mand for of-

ficerspace will
continue

into

J;
A growing

number

corporations,
which

year

com-

niltmeilts for

••

1 -y

■*■)'*> f- 1

re¬

newed confidence in the economic

strength of the nation and in their
As

future.

result, the de¬
space, tem¬
porarily latent during the recent
•recession, is beginning to reassert
for

itself.

office

new

Businessmen

have

for

With

office

new

real

estate

values

going

possible time are protecting them¬
selves
against
an
inflationary
trend

which

pronounced later

on.

from

CONSTRUCTION :
'

1
»

low

recession.

Dodge Corporation.
to

seems

little

doubt

that 1959 is going to be a far bet¬
ter

for

year

than

1958,

business

although

mark

demand

the

1958

increases,

refining operations will
This should

from

covery

move

mean a

fair

Alfred P«rlman

the

reported

pacity

probably

—

achieved

until

will

after

Peter

may

move

ahead

others vb ut

feel'.th
in general

not

1959.

still

fabricat-

industry,

President

If.

best

contracts

Construction

1958,

with

continue

itbove 1958.
ulus will

and

The

come

schools

principal Stim¬

buildings

and

hospitals),

still

com¬

(including

utilities and highways.

activity

from commercial

buildings,

industrial

munity

aroiind

total

the

big

question

im¬

public's

Co.

ton

Co.

in¬

under

the

benefit

Finch.

has
the

direction

•

CARTER

Statement of Condition December 31,1B58

immfEi

ASSETS

■:
Cash

ott

$242,685,323

hand and due front hanks

President

•.

;

Fonhdry Company

CABOT

PAUL C.

Chairman

•

State Street Investment
:

BERXARD

Loans and bills

Corporation

CARTER

61,003,628

Spite and munieipal bonds and notes.
Other bonds and securities.

;

235,000,649

United' States Government securities.

RCRCESS

American Machine &

11,877,035

...

391,219,811

purchased

Accrued interest, accounts receivable, etc..

4,789,294

Stock

2,100,000

of the Federal Reserve Rank

Chairman

Morgan, cs* Cie. Incorporated iy

Investments in M organ

Gr enfell <S' Co,

Limited, Morgan 8? Cie. Incorporated,

•

Chairman

the
the

Latin

American

■

........

of credit and acceptances.

24,749,294

CRAGIX

TV.

6,135,000
3,000,000

Liability of customers on let ters

Peter Grace
STUART

Corporation.

Banking house

The li. F. Goodrich Company

$982,560,034

Senior Vice-President

These

and Hi Broad Street

CO.LLYE11 cm

JOJJX L.

V :

CHEST OX

CHARLES

R. DEVPUEE

III CHARD

nations, which
most
important

Chairman

LIABILITIES

The Procter & Gamble Company

CHARLES

much

DICKEY

U. S. Government

Deposits:

All other.

GILBERT

CARL J.

Official checks outstanding

Accounts
Senior Vice-President

payable, reserve for taxes, etc.

Acceptances outstanding and letters of.
credit issued.

49,430,287

...

11,775,138

...

24,865,389

...

35,000,000

JAY

Capital—460,000 shares

Director

Morgan & Cie. Incorporated

Surplus.
■.

serious problem,

DETERETJX

JOSEPHS

Chairman

the

770,401,501

...

$857,868,671

IOXGS TREET IIIX T OX
•

$ 38,036,883

...

Chairman

may7 reach only the

...

......

The Gillette Company

depreciation of
currencies in Latin America,

livia 38%,

Chairman, Executive Committee

America will increase

but

however,

and

V
I

1957 level.

local

MORGAN
NEW YORK

;

Xew York Life Insurance

•

Undivided

•

35,000,000

.,.

18,050,836

profits

$982,560,034

Company

THOMAS S. LAMOXT
Vice-chairman
-

United States GtrvenniisiiJ $£entities carried at $5A,45&JH9An
the above statement are pledged to qualify for fiduciary powers, to
'secure public monies m>s-required Fy law, ami for other purposes.

C. LEFFIXG IfELL

L. F. McCOLLUM
President

Me m beV Federal'Reserve System

Continental Oil Company

;

Mom her Federal

JO fix M.

Chile 43L%, Brazil 58 %

MEYER, JR.

Deposit Insurance Corporation

Senior Vice-President

Argentina 103%.
JUXIUS S. M ORG AX

The
this

basic problems

extremely

underlying

serious

ALFRED P.

develop¬
-

ment
has

are

been

yet unresolved.

serious

blow

This

the

SLOAX, JR.

Honorary Chairman
General Motors Corporation

MORGAN

CIE.

INCORPORATED

14, Place Vend6me, Paris, France
,

GEORGE 1VHITXEY

economies of these countries and

American

vestments

manufacturing
Latin

America.

business in 1959.

IIEXRY S.

in¬
It

W'TXGA TE

President, The International
,

Nickel Company bf Canada,

Limited

opened a branch
Swatting Building

axdjuisox

Hill, Darlington Branch

area

1959

J. P.

LATHAM, N. Y.—Hill, Darling¬
office

the removal of

the

for

1935
w ns

National Security

President

- public should take top priority for ac¬
Housing tion by the U. S. Government and

the

maintaining qual¬
what

in the present situa¬

can

toward

equities

stj<:vm:x D.

over

with Latin

We estimate that new contract

awards in 1959 will

work

lirehtcl ('orpar<ttion

reported by F. W. Dodge Cor¬ which has been one of the most
poration, were at an all-time high, severe in recent history. As an ex¬
With exceptional strength sh^wn
ample, during the 11 months' pe¬
toward the end of the year. Since
riod of 1958 the currency of Co¬
the contracts come in advance of
actual construction activity, this lombia depreciated in relation to
fact alone virtually insures that the dollar by 33%, Peru 36%, Bo¬

rise,

the

DAVIS OX

7».

Ait rmm

J959 spending on construction
materials, labor and services will
be higher than ever before.

One

and

previously
eight years with

for

Becker

since

Traders Association.

The other is to continue to

tion.

President

generally had been increas¬
ing annually during the postwar
period, fell off markedly last yeai\
1 anticipate that trade in general

its
Dr. George C. Smith
year
in
1958,
despite
the recession, and all indications
are that 1959 will set new records.

wound

associated

and earning

Co.

which

business

Blechschmidt

INCORPORATED '

for American" private
investments and
trade, are still
struggling to recuperate from one
of their
sharpest 'I economic set¬
backs in recent times. Our trade,

building

May

ALKXJXDm

HKXRY ('.

the

foreign

Construction.
The

1959.

service

sDIRECTORS

con¬

business

e s

satisfactory

be
-

we '

However,

constitute

its , relation to United States

tern.

countries.

Strength
shown by the
nation's
larg-

industry

economy and defense,
'
1

resuming our
long - range
growth pat¬

covery

the

for

return it

transport
51
.

toward

way

favorable

ments

been

;firm

member of

ordered

the

has

Pennsylvania, like all other
railroads, has two major assign¬

M t-

'.with* the

The

Ne
k.

o r

Blechschmidt

can

Federal bodies.

ity of

equality of treatment is granted
the various local, state and

transportation

Streqt

Chicago
and

investment unless

mediate task of

than

re¬

look

econ-

our

for

out¬

South

counselor's

on the broad study,
by the Senate, into the

substantial rale. Some sectors

ol'

economic

the

earned

135

with offices in

return will be

Policy, based

in the domestic
economy will continue during 1959

reason for

national

I feel confident that the present

prospects

Cranwell

Roe

Farnham,

Salle

un¬

Stein

i nvesthient

tibhak legislative steps toward

modern>

business recovery

cerned

that

Wnn:n
which

than'

A-

admitted

partnership

expected is

Chairman

Grace,

W. R. Grace &

im-

un¬

LATIN-AMERICAN TRADE:

sist.
r

the

services, a n d
compete most
directly with
publicly supported air,
waterway and
highway
transport, the
be

Edward

been

passenger and
c o m mut er

best

—

But
full
recovery
from
de¬
pressed earnings and prices — and
normal utilization of
refining ca¬

lems will per¬
o

last

■

One

inequities
„„„

re-

depressed earnby nearly all oil
companies throughout 1958.

general
some
prob¬

o u

the

"-some

profitable health
level.

are now on

George Clitie Smith, Vice-President
and
Economist,
F.
W.
There

approach '

the

even
v

Reveling

Congress, of

would

r o m

)session

increase

JL e,O»n°0k
for the year ahe^d
continuing
recovery

reflects

sooner

become

may

benefit f
.

•

should

rbads

probably

which

they have been suffering. It

new or

additional facilities at the earliest

rather

^ gradual climb.
'.,,'The raiF-

once

facilities.

organizations acquiring

up,

5%,

1958 gain over 1957 was
2%. Tlje
is
nation's refiners operated at
onl-y^'^R^'that they may be further
80% of, total capacity.
v'V:',,strengthened next year by addi-

'again become extremely conscious
'of the need to plan for future ex¬
pansion and are actively in the
market

but

the average growth of 5.4% since
World War II.
In contrast, the

ings

have replaced their

"wait and see" attitude with

own

will

economy,

.in

deferred

g o

making

mand

•"),

1959.

space,

r-''

■

in 1958,
both for earnings and
growth of
demand, the outlook is consider¬
ably brighter for the U". "S. oil
industry in 1959.
•*

products

rent

office

the business
that

Norman Tishroar

year

Compared to 1958, nation-wide
industry demand ; for petroleum

upturn

depressed

low the line of

,V:' >

;; After

;

ciation Director.

; the

industry's
money - losing

im¬

provement"

William Naden, President; Esso
Standard Oil Company.
-'v

Inc., and Asso¬

Company,

tion

President,
Construc-

Tishman,

CHICAGO, 111.
Blechschmidt has

"the

forsee

sudden

PETROLEUM:"''

In Stein Roe, Farnham

large share of

coming

con¬

hot

'HEAL ESTATE:

improvement in freight
is
anticipated in 1959.
However, for roads like the
Pennsylvania which render a

for General

consecutive industrial production. During the

12th

BMschmidf, Partner

Some

volume

great

corporate health. Any

own

vania Railroad Company.

(

prospects for the

industry in 1959 depend to

tracts.

•,

Prospeets
the

%*■ Ferl,na]a' President, New

and its

less frank concept of the outlook
would be unrealistic.

James L. Cranwelt, Vice-Presldent-New York, The Pennsyl¬

Pr^nt

stafRailroad.

that-

in 1959 will be about the"same as

capacity which has come into
being is ample to take care of
anticipated world demand, and it
•is hoped that unhealthy conditions
(of shortage in supply, or of excess
-in supply, with violent swings in
price, can be avoided.
;
;
tive

RAILROADS:

feriman

MORGAN GRENFELL

§ CO. LIMITED

24, Great Winchester Street, London E. G. 2, England

John

(lltf)

The Commercial and Financial
Chronicle

had talked

When Special Situations
Are Better Than Blue

^
Chips

Chairman

II.

and

Fund

ket?

will

loss.

inflation

years

from

now

elect

retain

Administrations

Ad¬

will

take inflation¬

ary steps; and
if the Adminre-

fused

take

Davidson

President

inflationary steps,
Congress would enact laws in¬
cluding inflationary provisions. I,
therefore, am willing to predict

positively and without
ing whatsoever, that
what
the

inflation—and

effect

that

any

order

know

have

upon

anti

item

creased

and

wages

then

the

and

the

been

mine

Bankers

clipped

this

sent it to the Number 2

time to labor relations.
had

discussion

My friend

with

him

and

in¬

com¬

olies and that in his opinion,
they

opposed

talk

were

sales at that time was
approxi¬
mately $4 billion. This executive
devoted
a
large amount of his

were

*From

that
been

pointed out that the farm organi¬
zations had always fought
monop¬

are

steel

at the head of a large man¬
ufacturing company whose annual

by Congress, we are
also witnessing a wage -price
spiral.
For
example, the steel

strike,

friend

by Mr. Davidson before
Club in
Cincinnati, Cincin¬

manufacturing

monopolies, labor monopolies and

nati, Ohio.

all

monopolies.

said

that

officer

his

spoke

December 31,1958

Cash and Due from Banks

.....

United States Government
Securities
State and

$11,913,115.55

Municipal Securities

Other Securities

Stocks
Bonds and

Mortgages

stantial

portion

their

best

We sell
of

Bank

nor

steps

that

the

being

•

680,391.93

$84,037,971.23

$ 2,420,000.00

SurPlus

6,000,000.00

Undivided Profits

1,242,000.00

General Reserve

887,154.97

Unearned Discount and Other
Deferred Credits
Reserves for Taxes and

Expenses.

245,461.45

Deposits

73,103,584.51

KINGS COUNTY
TRUST COMPANY
(sloblished 1869

FULTON STREET

the

corner

In the Heart of the Civic

of COURT SQUARE

Center, Brooklyn

f*e«r*tO•peril tnivr.M. C.rpetmf.tn

tech¬

senior

degree

States but,

perience, I
be

can

not

ex¬

one

will have consid¬

inflation

and

unless

how

the

wage-

tell

price spiral

of my

certain

can

result

that

erably

will be stopped, I do
one
can
retain his

how

see

present

purchasing power by sim¬
ply investing in bluechip stocks.

partner,

economist,

and

author,

Retailing." His long contribution

America's expanding contribution
cited.

will

surd

tees

ab¬

"Many
bought
price,
it for

Twain

woman

dress

who

thinks

for

said,

she

has

ridiculous

when in reality she bought
an
absurd figure"?

Favors

Mazur
named

the

Equity-Hedging

All of you, I
that the usual

believe, will
form

agree

inflation

makes it

imperative for any trust
investment fund, which is set
up
to protect the beneficiaries
over the next ten
years or more,
or

"Oscar

merchandising, government,
and

pends

served

Fiscal

Counsel

wage-price
and

spiral

possibly

brings

even

serious danger into the
picture.
That is, the danger of pricing our¬
selves completely out of the world
markets. Our Government in do¬

Davis, leading

be presented at the annual
"Boss's
Dinner"
for
leaders
in

City

The

Moreover,

cessfully

argued

other

com¬

fields

St.

Regis, New York
Wednesday, Jan. 14."

Mr.

Mazur

for

many
years
Director of and is now
of Allied
Stores

Corp. He is also a member of the
Board, and Financial Consultant
to

Federated

He
of

has also
Radio

Department
served

Stores.

Director

Corporation of America

that

has

suc¬

act
directly or indirectly economic in
nature should be judged
by its ef¬
on

the

sions

every

living standards

laws

ment,

and

policies

of govern¬
activities and deci¬

the

labor,

management,

and

shareholders."

would

to invest largely in equities. Woe
the investment unit that de¬

another

con¬

merchandising and fashion con¬
sultant, known professionally as
"Tobe," added
that
the
award

munications,

so¬

delicate economic

our

balance."

fect

Mrs. Tobe Coller

bonds and mortgages

America's

tribution."

Hotel

upon

which rests

Mazur

expanding system of dis¬

the

alone!

Paul

his "over 40 years contribution to

stantly

our

production, creates continuity of
employment, and converts pur¬
chasing power with actual pur¬
chases, and is the fulcrum on

the

phase

"Mr. Mazur has held that it is
the standard of
living that sparks

Retailing"

every

More¬

economic position that that would
enable us to be truly
thrifty.

because

can keep itself stable
only
by not stabilizing its standard of
living—that we must paradoxi¬
cally spend in order to be in an

honor—known,
as

rate.

he has stressed that

ciety

that

Mr.

continue

ever-increasing

over,

was

—

Mark

said

receive

the

to stop
which
is

spiral

The Award's

figures.

Was

was

Board of Trus¬

take

1 9 5 8

ended

necessary

tionships to

winner of the

Government, the Con¬
are

economic rela¬

ulture,

chosen

wage-price

"He

has

worked

closely

with

the

New Jersey Agricultural Ex¬
periment Station at Rutgers Uni¬
versity in developing concepts of

techniques

radically differ¬
farming and live¬
stock feeding—based on the abil¬
ity of animals to perform their
ent

system

labor to feed themselves. Es¬
to
this system were his

own

sential

inventions of

unique hay barn,

silo and feeding
gates, all success¬
fully demonstrated at his Fiddler's
Creek Farm."

and

the
National
Broadcasting
Company, of the Western Union
Telegraph Company and Postal
Telegraph Co. of the One William

Calls
The

for

Trustees

Mr.

Mazur had

tus

quo,

Change
also

noted

been

that

prime be¬
latest, most efficient lowest pro¬ Street Fund, the William Street liever
in
the fact that
younger
ductive cost equipment. By
using Sales, and Lehman Corporation. men and women
should
"have a
such
equipment
together
with Additionally,
his
directorships respectful disrespect for the sta¬
their
much
lower
labor

costs,

many of our industries will not
be able to meet their competition.
I understand that as of
today, a

portion

the

uses

Russian

steel

latest

low-

very

have

included

the United

Reasons for

whose

zur was

chips

are

compa¬

the

blue

the New York Stock Ex¬

maintain

purchasing

power

his
over

the next ten
years? Dr. David
McCord Wright of McGill Univer¬

banker

The

Filene's

Department

Store

amount

Stocks

nearly

decline

are

good

Stocks

the

become

great
value
a

poor

hedge when there is an institu¬
tional setup in which
wages and
other costs keep rising at a faster
rate than prices.
For then real

the

"His

way

emergence

man,

the "yes"

has

man

express

of the American free

held,

afraid

definitive
the

doom

enterprising

system, be it in science, religion,
industry, or education.

group

Established in 1943, Tobe Award

range

selections

from

sic

in its field—to The Standards
We Raise—the Dynamics of Con¬

sumption"

Situations"

The

inescapable conclusion, in
opinion, is that because the

price increase of successful "spe¬

*which

propounded

revolutionary thesis that
increasing
consumption
rather

than production was the
key to
the growth of the U. S. and inter¬

national economy.
Stresser of Consumption
"He
list

"Special

—

the then

profits do not keep pace with in¬

books

their

point-of-view, spelled

five

security seeking

unable

unusual

widely varied

of activities.

flation."

Advises

record

men

are

made

by the Board

of Trustees which includes 14
pre-

the

the
increase
in
the
of money taken as profit

money.

responsible

Principles of Organization Applied
to Modern Retailing^ published in vious winners.
Among them are
profit-squeeze 1927—and
Bernard F. Gimbel, Chairman of
long regarded as a clas¬

great,

the

since, had made

years

organization

economist, and business¬
man-farmer, who began his career

sity says, "Whether stocks are a
good hedge against inflation de¬
pends
upon
phenomenon.

those

responsible positions."

change, are priced out of the world Boston soon after
graduation from
markets, what can the investor Harvard in 1914 and
who, in the
purchase

and

through the creative devel¬

opment

"unique combination of
retailing - distribution authority,

Chips to Avoid

stocks

come

Selection

The trustees noted that Mr. Ma¬

If, therefore, the larger
nies

Studebaker

RKO,
Fruehauf for
it, believing that change was
Trailers, Collins & Aikman Cor¬ of the essence of
all the sociolo¬
poration,
and
the
Educational gical factors in a
society and that
Testing Service.
changes for the better could only

States.

What Blue

the

Corporation,

equipment, than steel plants

hedge
139,770.30

g r i c

against

That

causing prices to reach such

present

Capital

the

disastrous .< inflation
in
I do not expect the same
of inflation in the United

France.

has

sub¬

•

business

gress

3,655,318.89
610,629.05

Paul

said,

absolutely convinced that

neither the

cost

Building

Brothers*

our

interests."

the conference.

19,826,791.74

Other Assets

Lehman

product
of labor unions and

to members

larger
plants

23,560,659.65

from

quite

in¬

not

the company.

can

715,881.20

Loans and Discounts

profit

honored with the "Oscar of

can't sponsor anything and neither

19,631,058.88
3,414,124.34

;

I witnessed the
disastrous
flation in Germany and the

Mazur Named Tobe Award Winner for 1958

company

and

every year, which enables them
to
equip their plants with the

placed,

nological growth and innovations
of the future.

you

friend to meet with him.

nating billions to foreign countries

At the Close of Business

investor

strategically

consider

man

and

worker's

the

place part of his funds in special
situations which are

his

could

to those provisions. He
further that if the labor
had

successful
secure

Economist, Mur¬

every

nounced Jan. 4.

subject to the
monopoly provisions, this
not have happened.

could

the

price of all stocks will
increase equally. , Proper selec¬
tion of stocks will be just as im¬
portant, if not more so,
even
though inflation increases mate¬
rially. In addition to the inflation¬
ary steps taken by the govern¬
ment

business corporations

virtually

legislation that labor unions

war

Anti-Trust

for

secure

Act,

the

make

invited

in
and

Shields, recently stated that
his opinion, it was advisable

not

stopping

had

ray

ex¬

visions

unions

certain you also know that
increased inflation does not mean

unions

laws

discussed.

Tobe Award it

pro¬

stated

labor

been

neither you nor the company can
have any part in
endeavoring to

exempted from the monopoly

subject

will decline.

that

can

possible only be¬

was

the

while

stock

of needed
Someone wrote

this action
cause

by issuing

resulted

production.

hedg¬

prices in general. The
purchasing power of the dollar
I

will

amount

be¬

Anti-Trust

manufacturer

that. Dur¬

answer

Truman

which

large

will have

you

will

can

Thursday, January 8. 1959

Mazur, senior partner
Additionally, he held that only as
of Lehman
"Mr. B
neither you nor our
Brothers, investment a consuming nation could we re¬
bankers,
and
an outstanding au¬ main
company can have
a
any part in
producing one—and that
thority in the fields of economics, we were
this. You can't make
suggestions;
compelled by the dy¬
retailing, and
you can't contribute money; you
namic character of

ing the last war, one man, the
president of a labor union, defied

*•

Clinton

I think I

the

immediately

Con¬

take steps to stop it. Can you
pect big business to Stop it?

not

istration

has not taken and

gress

ministration

tp stop it.

organizations,

situations

large price increases from them to
offset the dangers that have
just

organizations subject to
anti-monopoly provisions.

relations

-stopped*'It was definitely en¬
couraged by the Roosevelt ;Admini stration and nothing has been
done since then by. the two other

and

Stopped?

I would like to ask how this

today; it
impossible

special

interested
in working with
the
Washington man towards securing
proper
legislation.
The
public

than

that

Because of the concentrated

•Can Inflation* Be

industries are being affected
by this wage-price spiral.

•

investor

man

funds

the conference by ex¬
plaining the great dangers con¬
fronting the country due to these
monopolies and said that he was

than

twenty

chip stocks, it is necessary for the

He opened

many

there is today
and also more

and

that exists in both the big
labor unions and in big business,

lrom

years
now

their

sufficient

be amended

The

power

ten

years

much greater

probably continue to be
much greater than that of blue

legal expert, his public relations
officer, the Washington farm man

panies increase their prices
that they will not operate at

mar¬

predict positively and
equivocation that: there

cial situations" is
and will

prac¬

the labor

their

profit-squeeze.

can

with

that

could

inflation

companies undergoing a profit-squeeze become a poor hedge*
Strongly advises investments in "special situations" to offset

the short turns of the stock

Washing¬

with

for

farm

lieved

funds should invest largely in equities and, two, blue chip

without

that

the

Growth

inability of Government, Congress and business to
prevent its continuance* Concludes, one, trust or investment

Who is smart enough to predict

many

said

the

inflation and

tions

for

man

the farm organiza¬

printed educational
material, and with the support of

Mr* Davidson describes the inevitableness of
and

worked

legislative problems and this

the Board,

International

had

available

By CLINTON DAVIDSON*

Townsend

who

ton

tically all

was

from

creator and evange¬

the

purchases,

point

and

view

that

not

purchasing
power, and consumption, not pro¬

duction,
ly

was

affect

the factor most like¬
our

economy

future.

the

Board

Gimbel Brothers,
Inc.; B. Earl Puckett, Board Chair¬
man,
Allied Stores Corp.; Fred
Lazarus, Jr., Chairman of the
Board,
Federated
Department
Stores, Inc.; General Robert E.
Wood, former Board Chairman,
Sears, Roebuck & Co.; Walter
Rothschild, Chairman of the
Board, Abraham & Straus, Brook¬
lyn;
Hughston
McBain,
Board
Chairman, Marshall-Field & Co.;
J. S.
Penney, Honorary Chairman,
J,
C.
Penney, Inc.; Donald K.
David,
former
Dean,
Graduate
School
of
Business Administra¬
tion, Harvard University.

Volume

Number 5810

189

The Commercial and Financial

(117)

Chronicle

vital aspects of the
statement that the

Continued jrom first page

system and its functioning. Hence, the
"security (of the aged and other bene¬

Paul 0. Frederick With

ficiaries of the

We See

system) depends even more fundamentally
on the continued ability of our society to produce a large0
volume of goods and services under conditions of economic
stability." It is at this point that the Council touches most
tellingly upon the real soundness of the system. No system
of the sort could be termed "sound"—or perhaps even in
good faith—which has to function in a broad economic
milieu which has been depleted and is kept in a depleted
condition by studied contempt for time-tested principles

certainly collectible throughout the years as is the case
with the social security system, there would be greater
reason for making some such assumption—although even
then we should want to qualify it materially.
But this is not a private system. Far from it, and the
difference is vast and vital. The "fund," or reserve as it
as

might be termed, is wholly a bookkeeping affair whose as¬
sets consist solely of obligations of the same entity—the
Federal Government—which has obligated itself to pay
the

pensions in the future, and moneys which built up the
are nowhere productively at work, but have been

"fund"

;

employed for any and all of the ordinary expenditures of
technical phrases of
the Council mean when translated into ordinary English

the Federal Government. What these

is that the

people of this country through their national

government have pledged to pay to certain elements in
the population (chiefly those who have attained the age of
65 years

and have retired) sums which over the years will
approximately to the higher rates of taxes (or
contributions) now scheduled plus interest on a growing
"fund" which by 1963 is expected to reach about $25
billion. The actuarial "soundness" of the system consists
amount

solely in the fact that the people have not committed
themselves to pay more than that.
Enormous

It would be

of democratic

Coast Exch. Members
George W. Davis, Chairman of
the Board, San Francisco Division,
Pacific Coast Stock Exchange, has
announced the following changes
in

Fahnesfock & Co,
Paul

Frederick

has

become

associated with Fahnestock & Co.,

Exchange, operating as a profes¬
sional not doing
business with
public, and his membership
on
the Pacific
Coast
Exchange
the

will

remain

inactive

present.

the

for

Paul O. Frederick

...

membership effective Dec. 29,

;

Douglas G. Atkinson, a general
65
Broadway, New York City,
partner of Dean Witter & Co.,
Avery
L.
Eppler,
a
general was elected to
members of the New York Stoek
membership
partner in the firm of Avery L.
through the San Francisco Divi¬ Exchange, as manager of the New
York Municipal Bond Department.
Eppler Company, Redwood City, sion
through intra firm transfer
Calif., was elected to membership from Charles H. Clay, also a gen¬ Mr. Frederick was formerly a
partner in Baxter & Company.
in the Pacific Coast Stock Ex¬ eral partner of this firm.
1958:

change.
Otto

Bert E.
B.

Reimer

elected to

was

membership in the Pacific Coast
Stock

Exchange through the San
Mr. Reimer is

Francisco Division.
a

Magnitude

government.

member of the New York Stock

Green,

general part¬

Sole Proprietor

in the member firm of Green

ner

Co.,

ship

elected to

was

member¬

Coast

Pacific

the

CLEVELAND.

Stock

Exchange through the San Fran¬

—

Charles

sole proprie¬

tor of Baxter & Company,
Commerce

cisco Division.

Ohio

M. Baxter, Jr. is now

Union

Building.

good thing if somehow the rank and
file would make a special effort to grasp the magnitude
of the sums that are thus being bandied about. The word
"billion" has grown so common today—yes and even the
term "trillion"— that no one is: longer shocked by its
a

application to a specific situation, and either figure is so
large that it is about as difficult to visualize as the distance
from the earth to some of the more distant heavenly
bodies—a distance which is commonly expressed in "light
the distance light travels in a year at 86,000
no general or popular ap¬

years,"

miles

second. Yet if there is

DIRECTORS
I

Chairman of the ISoard

The Council and its advisors estimate that
committed ourselves to pay

Company

JOHN M. BUDINGER
Senior

fire President A"

Chairman of the Advisory Committee

{senior Vice Preeulent

BRIAN

Senior Vic* PretMe.nl

P. LEEB

Condensed Statement

is only four short years away. The
Council does not say—or at least part of its report carried
bv the daily press does not say—what the annual toll will
be, say, 25 years hence. Of course, it will be very much
larger. Even the 1963 figure of $12 billion is the equivalent
of a perpetual debt of $400 billion, assuming an interest
rate of 3%. The payments scheduled to be paid to benefi¬
ciaries during this year approximate $10 billion or the
equivalent of some $333 billion of perpetual debt at 3%.
The gross debt of the Federal Government, as usually
compiled and published, was $283 billion at the end of
last November. And this is the figure which has been
giving many of us so much concern. Needless to say. it
includes none of the vague but very real commitments in
the various insurance and guarantee programs of the gov¬
ernment, and none of the obligations of the social security
system except the formal obligations in the so-called
"fund," amounting at the end of the year to some $22

FRANCIS S. BAEK

Sew York

JAMFS C. BRADY

Pretident,

ASSETS
Brady Security A /trail 1/ Corjioration

Now 1963

over

those

who

have

reached

the

rather

arbitrary age limit of 65 years, and retired—as so many
are now
virtually obliged to do. Whether we have under¬
taken to do more than can be expected of us depends
obviously first upon our productiveness in the years to
come and second
upon the willingness of the great rank
and file to proceed in good faith in thus contributing to
the economic welfare of certain elements in the popula¬
tion.

the

The real
of

"contributions"

are

not the

taxes

bottom

to supply goods and services. There are
in which these commitments can be dis¬
honored, the most likely being inflation which auto¬
matically reduces the real value of the promised pensions.
Obviously, the Council is well aware of these more

many

629,521,625.48

....

President. Cullman /iron., Inc.

Loans
Sue York

E. CHESTER GERSTEN

»y

State and

WILLIAM B. GIVEN. JR.
Chairman,
American brake Shoe Company

•, v •

•

Municipal Securities

1,391,104,667.14

•

Other Securities and Investments

84,657,871.41
34,822,445.16

Director,

JOHN W. HANES

Olin Mathieeon Chemical Corporation

Banking Premises

23,241,102.67

Accrued Interest, Accounts Receivable, etc.

12,130,607.66

LEWIS A. I.APHAM
/'resident and Dirertor,
Orate

Line, Inc.

Customers'

GEORGE G. MONTGOMERY
/'resident anil Director,
:

■

Liability

Acceptances

48,411,749.26

S3,127,664,879.32

! Kern County Land Company

Sew York

THOMAS A. MORGAN

HENRY L. MOSES
Partner, Mores and Sinter

LIABILITIES

Capital (par value $10

Corjiorntion

per

share)

•

$ 40,299,500.00

DANIEL E. POMEROY

Surplus

New Jersey

•

Undivided Profits

B. EARL PUCKETT
Chairman of the Board,

•

160,000,000.00

67,962,117.75

268,261,617.75

Allied Stores Corporation

Dividend
PHILIP O. REED
Chairman of the Finance Committee,
Central Electric Company

Deposits

Acceptances

Partner.
II.

•

Reserve for Taxes,

WILLIAM T. TAYLOR
/
Chairman,
ACP Indittlriee. Incorporated

WAtTER N. THAYER

Payable January 15, 1959
•

•

Accrued Expenses, etc.

3,022,462.50

•

2,779,132,984.40

•«•••

23,002,078.56

Outstanding 5 53,582,614.16

Whitney A Co.

Less Amount in

50,910,133.96

2,672,480.20

Portfolio

New York

B. A. TOMPKINS

Other Liabilities
THOMAS J. WATSON. JR.
Inttrnalional Business Machines

•

3,335,602.15

•

President.
Corporation

$3,127,664,879.32

ERAZAR B. WILDE
President and Director,
Assets

Connecticut General Life Insurance Company

earned

14,672,970.27

December 11. 1978 were pledged eu secure deposits

one

ways

903,774,810.54

paid in

social

security but the goods and services
supplied by the productive to the non-productive year by
year. Whatever the technicalities, these commitments are
name

Depends

These are obviously very large commitments we are
making for the future. It is, of course, not merely a matter
of owing to ourselves. We are undertaking to take a very
substantial part of the income of those still productive and
it

U. S. Government Securities

HOWARD S. CULLMAN

Olin Mathicson Chemical

hand

Cash and Due from Banks

Yew York

S. SLOAN COLI

JOHN M. OLIN
Chairman of the
financial and Operatint Policy Committee,
Chairman of the Executive Committee,

oj Condition, December 31, i'J5S

in 1963 to those who have by

reached the age of 65 years and retired,'; roughly
$12 billion—and each year after that the payments will be

billion.

YORK

NEW
J. I'ASCHAI. DREIBELBIS

have

1963

larger.

President

ALEX H. ARDRF.V

this

system, and the political pressure continues each
election year to add to them, the system could well some
day come to disaster.

tl'./il.

bankers Trust

WILLIAM H. MOORE

preciation of the magnitude of the obligations involved in

„

MEMBER

THE

(FEDERAL

DEPOSIT

INSURANCE

COR POR AT ION

and for other purpose,.

(118)

The Commercial and Financial Chronicle

LETTER

THE

EDITOR:

but often in error", and that seems
to

Spitz Differs With
Fellow New Englaoder

THE

Thursday. January 8. 1959

EDITOR:

up
the Keynesian eco¬
thinking in a few forceful

words.

the

But

I C.

Pro-Hazlitt and Anti-Keynes

*
j .-v.:.-'.-, v
persists and the

doubt

become

doubts

redoubled

Percy L. Greaves, Jr. offers detailed rebuttal

voiced

by sound men of business,
and politics, and the re¬
sponsiveness to soft m o n e y is

Cist's communication

finance

Writing from Biddeford, Maine, Mr. Spitz takes decided excep¬
tion to Brewster,
Mass., correspondent's views on Keynes
(Chronicle, Dec. 11, 1958, pp. 18-19). The latter, Frank Cist,

sum

nomic

Reader

LETTER

and

Henry

inflation, and how

protect himself from soft

one may

Hazlitt's

"Myths".

Keynes concepts ' with
solid goods, real estate and com¬

Frank

the

"Chronicle" which took issue with

previously published critique of Keynesian

Mr.

Greaves

endorses

Mr. Hazlitt's position on
and values, holding the more

Say's law concerning production

monetary

to the

you have to give the more you can receive. Submits clarifica.-■v:
tion of issues concerned with
equity investments
gold, money, pricesy credit,
Keynesian soft monetary concepts and theories to maintain the
(that are no inflationary hedge at
( tariffs, profits.
Calls JCeynes' expressions. -"jabberwocky'^
capitalistic system, or the edict of government
will take
all, especially where prior 'senior,
^
whose confusions have made it almost impossible for any¬
form as it did in
securities exist) that are supposed
Germany . .
and other countries.
one
to
learn
to
provide immunity from the
economics
at
our
so-called - institutions of
Editor, Commercial and Financial ian advocate can P LAN T O flight from the dollar..
^
"-'rf"higher learning."
Chronicle:
PAY BACK the moneys it has
When, in fact, the Keynes softv
The article by Mr. Frank
Cist, stolen from the national treasury money is ultimately to be evalu- EditorCommercial and Financial receive.W His reasoning;' has never,
under Keynesian planning, that ated in terms of gold content, or
dateline Dec. 11, 1958,
glorifying
Chronicle:been *logically ^controverted^: It
evaluated by edict as Hitler and
soft monetary
concepts, a 1 a even provides for the Hottentots,
Unfortunately, the courageous t.:an thus be assumed that econqKeynes and against hard mone- but cannot find a plan to pay a
ta ry
single, solitary dollar back into
gold
the national treasury to even fis¬
content, is the
_-----xxt-ui^
xxa/oiixt
Utdl, d;JlJCdl UU 111
0 1 d
cally amortize the national debt. of monetary gold did the job for - the 'Dec,- 11th issue of the
Keynes
Chron- /:•(( 3), -The subject-matter is not
1 m p 1 i cation
Keynes said, "We owe it to our¬ them, and with it the prelude wasif. Would
take more space necessarily technical;
It is actuthe lack of sound monetary stand-)
selves"
that
and
why
Keynes
worry- about
thail iS' available to diagnose
fully ally simple. The artificial introis ■ perfection
repayment, "for we all die some¬ ards, the prostitution of,iConstitu-£.aii
"fundamental errors"-which duetion of technicalities is merely
time" and the hindmost, our
and
capitalpos¬
istic
hard
terity, can worry from there out!

is told "that hard
monetary content

is going to discipline the

modities

and

„

monetary

what

content is dis¬

what irresponsible planning,-r-that
is no planning at all—but

aster

im¬

and

billions

turn off their

charges

old

would

juke box
playing that
old, broken

self,

approaches

own

only

faulty,

are

"So

fact, rather than putting everyone
pointing out that
their theoretical premise is
wrong
the

swers

with

Keynesians

one

talistic

the

an¬

come

also wrong and

are

place, and

claimed

ever

system

wouldTiot have extended

down

monetary

concepts
of
Keynes who foisted it upon Great
Britain, with attendant socialism
with which that country is im¬
pregnated
real

failure

this very
of

day!

Keynes

The

monetary

concepts

was failing to accept the
self-discipline of gold monetary
hard money content, but
running
out
on
the
economic discipline
that was coming to us for the

abuse

the

capitalistic system,
substituting the subterfuge

and

that the elixir of soft
money could

everything

cure

trme

stress,

—

depressions

and

undisciplined

prosperity in time of inflation and
war-time production, with attend¬
ant peace time
shortages of goods.
a

Prediction

longer

the

self-disciplining

agency of the capitalistic
system,
I shall predict that hard
monetary
content is going to
discipline the
Keynesian soft monetary
concepts
and theories to maintain the
talistic

system,

the

government and social
or

worse,

one

And

the

advo¬

proverbial

keep

dog
with

—

where

the

when
it
exist in the broken

even

Keynesian

matter

it did

other

coun¬

free

coordinating

money,

government

evolutionize

talism

the

real

What a far cry
in. the claim of

needs

can

monetizes

men.

perfectionism,

do-

security for

plan spending

the

capi¬

from Keynes, who

croodism and claim of

peoples,

national debt to

point where not

one

it
a

single Keynes¬

states,, "A

lican form of government as
call¬
ing the baseball player in
right
field a left fielder. Neither
are

just there!

—

And neither is
Keynes
soft money

monetary
concepts able to give

the

self-discipline of planning or
anything else, when it constantly

and

then

one.

to,

The

money

and more

inflation,
inflationary spiral
solve a
deflationary

adjustment

to, the

ups

economic well

with

and

hard

downs

being oft times be¬

came

abuse

tion

po¬

Keynes

correctives -is
same
poison govern¬
spending and stimulus and

always the
mental

place

where I should think it
should go,
and it must be
tolerated to save
the capitalistic and
free enterprise
system (or what is left of
it). So
this is the

discipline

and

organ¬

For Beneficial Finance

Lancaster,

essence" of
.

of the

one

Patton
one

once

never

said
in

that

doubt,

His
no

about

"stable"

prices

kct value, and thus the purchasing

if •wiQV W

uml VVKl1 a

law

it; from that instant,, a

slable Vtllue"

buch

™i/.JL'X ^
taptly^^u^prt. to
wLi-A/rr

onensfa^verit.*r-Ai

than

medical

and

home

the

modern,

theory of

^ vague and arbitrary. .
Jp ^is science [economicsJ relav?\ue 1S *le on*y guide,
2-)

1,100
:v

Dropping into the Lancaster officc of the Benefical Finance Systern to arrange for a loan of $600

M- Say did not

assume,

Mr.

Cist would "nave

us
believe, that
with an increase in the production
of any. product the exchange ra¬
tios, i.e., prices, would necessarily

improve

ment

expenses, Mr. McLain was remain constant. Say assume I that
pleasantly surprised when he^any increase in the production of

that

lionth borrower

the.

was

30-,nil-;any. good resulted in

increase

in the total values produced and
in observance of the significant; a reduction in the unit
price. At
milestone, the company hadr.one point he wrote, "A striking
granted a fully-paid loan'at no Example has been afforded by the
expense to him.
:
-v ;
r
invention of the art of printing.
O.

and

the

sob ifer

value," his ideas on
J.'yalue" were certainly advanced
for ills time. Say did say, "Valua-

learned

and

,./.y(aS?e'

fices of the Beneficial Finance Co.

for

think

doubling of the produc¬
tion of anything will,, or
should,
without inflation, double its
mar^

could

"subjective

Pa. letter carrier,

Benefical

and

Caspersen, Chairman of By this expeditious method of
Beneficial, disclosed thatrthe ,Mc- «multiplying the copies of a litLain family is
only one of.*':the eriary work, each copy costs but
more
than 1,600,000 families that a --20th part of what was before
will borrow

whtah"th^Think

for

customers'wfflf nay
sums

higheit

the

and

over

costs.

eco-

above- production
certain
conditions,

Under

this includes certain quantities of

gold.
does

Under
not.

products

money.

the

other

conditions,

Say told
want,

you

us,

and

it
"It

not

Money is but the agent
of values." (Note

transfer

4.)

(6)
Contrary
to
Mr.
Cist's
thoughts, economics does have r
"porm":for "too high"? prices and
deficient" gold mining. The norm

f.^r

"thn hicrh"

W a

nri^p i? that nHdA

^ove

^^"which^ foe
thP miantitv

^
pay.

the

The

H^est

the

can^U

seller

hp wantc tn crfi

norm

irnr

iSouS?tof ^ffl

™
for

"deficient'*

gold mining is that point at which
it
becomes
profitable
to
mine
more gold.
It is really that simple.
(7)

Let's

remember

that^the

$700,000,- ;paid for manuscript.
So that,
000 this year at Beneficial's 1,140* where
there was formerly one
offices.
Since ,1929/ he ~ added,copy only of the value of
$12' of
Beneficial has supplied borrowers * present money, there are now 100
,with a total of $7.7 billion in per- v copies,
the aggregate value of

science of economics does not de¬
fend "Central Banking" much less

sonal

SgteErnies teachesfoatmayket
competition
and
economic

cash

loans.

it has

ers

The

..I

assets now total
and

than

and

some

Since

-x

its

neered

26,000 stockholdthan

•

several

1/20.

$500 million

over

inception,

Finance

Bene-

system

has

unique

forms;,of

emergencies,

air

ous

plan.

travel

items,

all

were

able: to

Say

wpv0

instalment

knew
but

^ave
*

■

NOTE

variation,
a

nominal

(Note 3.)

economic

were

give the

values

^'nonnBl"

nor

relative

anrt

fluctuating and that the
more

you

can

l.Say, Jean-Baptiste A Treatise

provide funds

the

of price, con-

real

neither

^able"

pin-

and purchase varion

upon

em-^

the

the reduction

sequent

does not occasion even
./diminution of wealth."

6,000

xJ'

fjlus
-

financing for individuals through
meet

company's>wWch. ^ W thou£ ttat of each
single copy be reduced to

nloveeq

ficial

11-

for

"An expert is

ideas
that

^
is

Jevor.s and Walras to reveal the

30-MillionthCustomer

tives!

General

reasoning

can

expressed in
mathematical formulas and equa¬
tions., This leads to the fallacious

Although Say left it for Menger

which these persons

correc¬

tend

men

economic

human values

wages

J •

could

reasoning

that

ized result of a
planned economy!
More planned

unplanned

and

[si not irn-

Robert. McLain, has become the30-miHionth customer, to" borrow

repub¬

Such

that

value,.,. The, creation .of

our

much."

SPTT7f $ * nrod-uet ammedml&Lv

and services.

different in concept of

ships.

a market for other
products;to the full extent of its own*

ian

happy idea to call it
social-democracy that is about as

not

Biddeford.
Dee. 16,

try. to stabilize the soft
monetary value of diverse soods

then get the

did

economic

Fortune'

orders to

So, to prove a Keynes¬
theory they do violence to
free enterprise
concepts by im¬
pregnating with socialism, and

Say

circular."
It
is
the
anti-econo¬
mists whose reasoning is
circular;
those who think in terms of stable
or
constant values and relation¬

affords

RTf!HARD

much

product

created than

credence (in:

J^e..first place,:-

by bringing in play the edict of
government, with parities, subsi-r
dies,- military and governmental

sound
and

he sold twice
buy
twice
as

economy,

mouth the words "free
enterprise"

men

capitalistic

not have received any

gold
evaluation in a true condition of
free
enterprise and capitalism.
Yet, • the Keynesian theorists

as in Great Britain and we
non-payment of deficit
financing
at any time!
hall all stand in queue lines
and
f:>eg politically for our
varioqs $e-4 .Now, we are told that Keynes
curity sufficiencies.
is in our' economic life
blood so
It
takes sound
we
cannot remove it

sound

responsibilities^:that

duty, and

.self-discipline Jof

tries,

constitutional

also

not make "all

the
;V

PVP11

reciprocal, in
will continue to be disproved as the worst
unplanned planning that" should

goods and services
diverse were tinder the

are

(4)

fact

Reasoning" by
Anti-Economists

fickigt'V,^dr:'fras happened iir/the' prist br
vnhlp '
even fflllPpi
conceivable?
;
'

fAi'inn.
his ivrncnfM-iciKlfi
irresponsible onnn^nriTrv
economic-formu-

meeting the

the

"own

his

!-»io

of the value of

constant

write

and

planning

difficult with the
degree of
involved but it afforded
remedies consistent with the
eco¬
capi-'
edict of nomic problem involved.. The

democracy,

will take form

Germany, Italy and

the

tail

first to solve

When Mr. Cist says that
gold is
no

and

then

calls for
Makes

debt

reduced

years.

'Circular

Questions

....

ability to present theKeynes- *
Whatever "conventional
point of view, - but--it -can-1 gold-standard thinking
may be,
not overcome the fault of Keynes
" certainly is not tound in the
monetary views by berating they Wnungs of *• Henry Hazlitt, His
lack of self-discipline of hard gold
understanding of money is unmonetary content, for it still ex-- Questionably superior to that of
ists and Keynesians will find then- those who seek a return to the
planned unplanned
"perfection¬ money system which produced the
ism" is not only
imperfect, but 1929 debacle.
non-correcting for it is really the ;>•' (2) General overproduction, if
it means
most undisciplined system of all!
anything, means there
And the discipline agency will' lis more of everything than
every
be hard gold, monetary content, ( one wants with
the result that
which is really what Keynes tried' nothing
can, be
sold.
Does
Mr.
to get away from in the first place" Gist
seriously cont rid that thi*

undisciplined one,
Yet, inflation takes

record

And

the

States, instead of adopting

soft

the

his

not

the

markets and free and

until World War II, if hard
monetary content had been con¬
tinued in the currencies of the
United

that

Jsome

congratulated?\Wfes"

upon

theory?

that

vxx

„

ian

Keynesian Misnomer

years

the

ir-

1929

over

toll

and

political thinking of the pop¬
ulace for letting things get out
of

does not

and

debacle

service

of the Keynes

coming down
discipline of

capi¬

of hard

The

Cist is to

Mr.

mounting costs and prices—every¬
thing going skyward and nothing

public interest and for their own
self-interest a|nd gain, but selfdisciplined the social, economic

hand.

then

over

chases

monetary
content is perfectionism,
but it
self-disciplined not only the men
who abused the system
against the

year

What?"

it's

faulty.
the

dollars

each

answer

cates,

to the trouble of

the first

debt

In the latter case,

and

penny

that

say

it would be nearer to statement of

national

ultimately amount to more
than the existing national debt it¬

Richard Spitz

record, perfectionism, and
their

the

redeemability.
8

would

Offers Congratulations

repudi¬

IftheKcynesians

irresponsible planning—that

ation

perfection.

SSSSTPriosep,
NOTE

c.
2.

Philadelphia,

Op. cit. P. 285.

NOTE 3. Op. cit. P. 302.

Central

those

Banking policies such

which

initiate what

quently referred to

calculation

are

the

most

is fre¬
•

trade

efficient

guides for obtaining the most de¬
sired

results.

This

applies

banking, lending and investment
r
iust as much as it does to selling
shoes or bread.
■*
-

Economists will agree with Mr.
Cist's authority, The Hon. R. H.

Brand, that most bankers "do not
always understand what they are
doing."
To
assume
otherwise
would

1863

"
Pp-u

evil

be to charge them with
intent.. In this respect we

should remember that bankers
NOTE 4. Op. cit. P.

133.

are

■

Volume

act

Number 5810

189

The Commercial and Financial Chronicle

longer free agents. They must
in conformity with statute

his production at the profitable
prices he thinks he should receive,

law, and the dictates of competition as set by statutC law,r arid riot
free market
^

(8)

sertion;

wholly
are

as-

whats is' Worthwhile

subjective question,

all other valuations -of acting

rhen.,../ / ;

strictions

moral actions:

sumers' demands and this Britain an
ex
post
^refused to do. She reaped the eco- respectability

•

prevent hiS\ acceptance of such a for a farmer's'planting;
j6b. The modern phenomenon of, ;^(d.4) Inflation- does"

professional

facto

re-

for

the

very

ticians

reaction

of organized labor. His
jabberwocky was not economics..
if was merely a veil to hide the.

economic
nomic

of unecofrom British'

consequences

olicies

workers.
Unlike

Hazlitt,

Mr.

Inflation-Means

■"

nnrm/iT

«/>♦»_

S.0 there is not i necessarily any Nation.
Disinflation reduces the V j;; ^ No Actual Stability
♦'pormal levei of general pfoduc- relative demand of^ thosSe^whbse^^^ InMs Section III, Mr. Cist talks
tion," whatever that may be. Since . funds are reduced and thus-in- about ^"exchange stability" withthe desires of men are constantly ureases the relative demaiid of v0ut defining what he means. There

changing, there can be no norm.
for human desires or values'. Men'
not

"general," they are specific
individuals, each one different

are

<•

flrom all others.. Thanks be to God!.

To assume all men have the same
abilities

values

about

the

others.

So-called reinflation in- ^ of
relative

creases-the

demand

of "nomiC

demand

others.

Neither

changes the available supply of

;

tionships of
tutes

paper

the

and

marketable wealth. They are both commodity

in many so-called
"general" or
or "macro" approaches
to economics, which is a science
of human action and requires the

"jnicro"

approach
understanding. V
Cause and Curb

for

fled and those that would have
been satisfied
satisfied under
under free
freA market
market

eco-

conditions.

rela-

•

quantity of the
the money-sub-

Cist

deserves

for challenging Mr.

it is that' supply money-substitutes .of two countriesfree market con-;;.c?n only be maintained if the

supply,

money

Depression

(3) a decrease in the
supply of commodity money be-

determined

The

ditions.

total

supply

of the
is then

colleagues would not have dared

thing to remem-

Continued

ber is that Keynes was providing

one

vaiue

use

gold

December

fZstZ'K

1st NATIONAL
—
«•

paper

cess

money
.

supply of legal,
substitutes in ex-

additions

commodity

possible.
"
:
r
%
obtained dollars by selling to
(t7) Economic equilibrium-is a-other nations, but unfortunately
g^e 0f complete inaction;. When Americans were not the only ones
become

$35,380,654.82
62,875,414.45
29,526,457.44
224,000.00
22.533.451.02
1,971,292.14
1,173,284.42
33,676,483.37

?U. S. Government Bonds
mm

state and

Municipal Bonds

Other Bonds and Securities
Demand Loans,

Secured

Demand Loans, Unsecured
Time Loans, Secured

...

Loans .and Discounts
Real Estate

Mortgages

23.611.314.03
10,961,732,85

F. K. A. Insured
V. A. Guaranteed

yllliillll

Other First Mortgages

Federal Reserve Bank Stock

20,254,696.64
360,000.00
2,557,361.92

Banking Houses

466,163.18

Furniture and Fixtures

HfMMM

Wmmm

Customers Liability a/c Acceptances
Accrued Income Receivable

Other Assets
*

reserves,

qUantities desired and available who refused to buy British goods.)
are jn
balance, there is no urge Naturally, Americans will seldom
produce any more. Alh human be eager to lend their savings to
(12) When people increase their life is disequilibrium. Live men British industries
whose "-labor
demands for cash -holdings,-or always want some "values" they costs price them out of world
hoard, as Mr. Cist calls it, they do not have.
^
markets.
merely prefer' more money to "
(18) Mr. Cist might be asked
j The British loss of gold was
more goods. Contrary to Mr. Cist's
what, he means- by "a- rate < of merely the logical result of instiqontention, such "hoarding" will profit." Apparently, he does not tutionally subsidized wages and
Hot "leave production with no understand that there is no nsuch the
resulting high prices which
adequate outlet and thus, face us thing.. Profits
tended -to reduce exports and inVwitfi ; • cWerModiiction? " Under relatively better''^reH|®vr''ttd"'^ea^e"impoHs. The proper corsiich conditions, producers who ability in supplying .consumer de- rective was the removal of the indesire to sell their goods must mands. Profits are ever changing slitutional restraints on free marthen,offer them at lower prices, and are not necessarily ; related: to: kEt1^ Wages and not the money
Under this assumption, wages and investments.
Profits are always manipulations by which Keynes
the prices of raw materials in a temporary and never steady. They
sought to make lower British real
free market will also drop. Sellers appear, disappear and reappear'as
wages more palatable.
The poliQan then replace the quantities of market conditions adjust to new cies advocated by Keynes were
goods sold at a lower cost and re- situations. Profits can only ex- not economic policies but merely
gain their former position without ceed losses when there is a relative policies - of political expediency
suffering any real loss. They may increase in satisfying consumer whereby he hoped to fool British
hold fewer units of money but demands. In a free
market, prof- wbrkers into thinking that their
since the purchasing power of its, once created, are soon dishigh wages in paper pounds were
each unit will be higher, their loss solved by competition into higher the
equivalent of high wages in
will be purely nominal. Whether wages, higher prices for raw ma-, terms ^of the former
gold pound,
,

i.'i

liiifi

Cash and Due from Banks

•AV.'X'Zv

i.e., the official
Encouragement of credit expansion beyond amounts saved.

money

page

1958

31,

BANK AND TRUST COMPANY of PATERSON, N.

tender

ASSETS

another, i.e., the'Americans never-refused to buy
money, jewelry, British goods. We only refused to
cause
of
increased
demand for 0r an industrial
commodity would buy British goods at the prices
that commodity for its otheroises,
j-,e the same.
With every shift in asked for them in this country,
or (4) a decrease m the supply of
the relative values of the different These prices included the exorbiliioney substitutes made possible. uses? jt becomes profitable to shift taut demands of British Labor
solely by the prior existence of quantities of the money commod- Unions.
There never was any
legal money substitutes in excess jty from one use to anotiier. As: logical reason why American conqf
commodity
money
reserves, human demands change, Jthe rela- sumers should subsidize the mem.Tlie great depressions of modern
tive quantities put to each use, hers of British Labor Unions.
If
times .have primarily taken /the" -including that used for money,' the British insist on pricing their
£orm (4). To put an end to such
wijj_ ajso change. When men stop wares out of world markets, they
depressions, all we need do is re- changing their relative <■ values, • mustv* suffer
the
consequences,
peal those laws which " now in- an(j- only then, will a'' '.'normal. .(Incidentally, Mr. Cist seems to
stigate, .encourage or support ad- level" or a "stable money value" forget that Britain could have

the

great credit
Hazlitt's con¬

ments
meet

holdings,

men:
satis-

Most of his like minded 1

tribution.

Keynes* "Jabberwocky"
The
A
important

mOney-substitutes of both(11) Prices cannot all fall un- commodity used as money,
countries can be freely converted
less there is (1) a decreased ef- distributed
among its many uses into the same commodity at the
ficiency in the use, of money, (2) g0 that no one can gain a profit previously established ratio,
jn increased demand for cash
transferring a quantity of \ it • Mr.. Cist seems to forget that

qitions

less human

The Sneer Treatment

Mr.

money-substi-

money

result in

proper

a
,

must

points

neglects the Brit-

create still greater demands for sources as Mr. Cist cites, the nonr
infringements on free sense of statistical approaches and.
market: operations and thus in- non-scientific-"macro" estimates;
that tend to hide the scientific
creased the gap between the conA x
J
J"Jf"
sumer demands that were satis- realities of individual actions.

greatest
economic
error
that
can signals ttiat tell intelligmt mitw- stUutes are supposed to represent.
he committed.
It
one
of the P^neurs to leaajust tneir invest- That stability is maintained by the
Weak

Cist also

further

course, no stability in ecolife.' The only stability that

those receiving the newly added js desirable in the realm of
funds and thus reducestfterela- nomics/is a stability in the
five

Cist

Mfc

niass unemployment is merely the- "a rise, above " this normal ^evel^ humhn actions or death but" it mtimber of profitable jobs in many political
economic price we must pay for/of-' What someone
may^con^der^certaihly cannot be explained by American industries.
moral transactions of free

the bolitieal orivuleges granted to' "worthwhile."

un¬

economic policies of British poliwho feared the political

Cohtraiy,/to Mr.' Cist's

market unhampered by legal

Consumers are free to imposef -r ((2)^ What Mr. Cist means by "oi?- homic consequences and we shall
losses on those wh6se productionji thodoxy^ is not clear,' but there is do the same if we should ever
or prices, do not meet with their no "Wide gap" in the fences of grant to
all workers the legal
approval.
''economics. The gap, if any, is in privileges now exercised by the
(13) Whether "a farmer over- the.f economic understanding of minority of workers represented
plants- or underplants"?' depends 'th'ose^ wiio do not
sufficiently by labor unions. The penalties -of
solely on. how his foresight•pf fu-* uttderstand economics.
our present "labor" policies now
ture conditions compares with the
*;(2IY&ince all life is a series of fal1 primarily oh non-union-represulting.;, reality/ that, develops^phahffos^an'd sinpa human values resented workers. The penalties

they would imder conditions of
competition.
• > ».

23 *

(119)

35,498.64
1,042,295.84

87.830.01

$246,737,930.77

TOTAL ASSETS

LIABILITIES

Deposits

gfi individual reltor makes a real terials and lower-prices for finprofit or suffers a real loss will ished
goods.

re?5on °lher factors
fc "ie.. n°n-mor,ey Side
ineir.transactions.

I?11?131!#
.

held

some

up,

wages

are

there will

"rate

for

two

tions of

should

are

also

remembered

a market society
tees'that

that

never guaranproducer can sell iall

Reserve for Unearned Income

Reserve for Interest,

Taxes, etc

Reserve for Loans and Discounts

Acceptances Executed for a/c Customers
Capital account Common Capital Stock
(200,000 shares $25 par)
Surplus

interest."

They

are

two

ishers.

So far

different

entirely

contributions

consumer

"in line" when

mined,
savers,

the

types

satisfac-

demands. They

they

are

deter-

consumer

British

the British

was

merely

demand.

difficulties

shift

The

real

resulted

TOTAL

3,899,307.92

$246,737,930.77

LIABILITIES
f. raymond peterso
Chairman of the

Board

benjamin p. rial
President

NATIONAL BANK
TRUST

AND

COMPANY

PATERSON

v\>

HlilHip

Handy Offices Throughout Passaic County
Dnfarcrtn

DlnAmlnnHila

Pllffnn

Paterson, Bloomingdale, Clifton,
Mt. View, Pompton Lakes, Preakness,

Ringwood, Borough of Totowa,
Wanaque Borough
and West Milford

wfflwm

J
M

from

Britain's labor policies which we,
in
a
major way,
have
since y

joint/actions ► of/adopted; > ; Sellers must always ' v
consumers ih a
adapt their production to con-

sellers and

5,000,000.00
7,000,000.00

Profits

Undivided

were

$115,198,497.22
107,883,992.31
2,884,433.72
1,373,804.46
1,446,670.96
2,015,725.54
35,498.64

•

(19) Profits have no constant help matters but American suf- ^
or desirable relationship^ to the fered from this as well as Brit-

difficulties, but these: cannot be
as
"overproduction." It

classed

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

U. S. Government

• Every economist will agree that
American
tariff
policies
didn.'t If

artificially entirely different types of rewards concerned, it
course

Demand
Time

'* /''/
MCMftfft

;

-tjinxnrr":

IMSWMNCI

'fftftT'

(120)

Continued

from

wholly unnecessary burden of try¬
ing to foretell the whims of poli¬

page

ticians

into such

controversy.

They usually prefer to talk among
themselves
while
giving sound
economic
papers
the* sneer
or
silent treatment.

Some

now

carry

their illogical reasoning to its log¬
ical conclusion that the easiest way
to create

wealth

legal tender.

conclusion

all

is to

issue

The ultimate
such

nonsense

revealed in a recent book
which held that all Americans are

was

now

too

affluent,

our

various

governments should all increase
their tax take and we should pay
more

people' to
ployed.

remain

unem¬

Continued

that

income

they

distribute

can

confiscate

the

their money substitutes. They are
thus able at any moment to in¬
validate the economic calculations

pressure

which they are be¬
// ■'; ■
Tariffs are uneconomic because
to

from page 3

European Recovery Strides and
American Competitiveness

make half hidden additions to the

tremely difficult to keep adjust¬ supply of money substitutes which
ing to the constantly changing they always endow with the same
whims of politicians who are ever
legal value as commodity money
seeking new forms of wealth or and
all
previous quantities of
and

the

Detroit

area

$7.90

all

per

hour, as compared to $3 per hour
in England, as low as $2.38
per

hour in France and $1.60
per hour
Milan, Ttaly.
The
current
by making in
available new quantities of pur¬ hourly baser rate for a Ford as¬
they reduce the satisfaction of chasing power which can com¬ sembly line worker in the auto
consumers and new ones also re¬
pletely
change
the
previously industry here is $2,44, exclusive
duce the satisfactions of producers
existing pattern of consumer de¬ of fringe
benefits, which add,
with fixed
capital designed to mand on which businessmen had roughly, from $0.50 to $0.60 per
hour here, compared with $1.05
satisfy consumer demands as they based their production plans.
in the United Kingdom and $0.69
previously existed. However, the
Nothing could make the eco¬ in
general effect of a new tariff law
groups

holden.':;--./;

shift

same

now

American rates.

Traditionally, American indus¬

try has been able to meet and
beat wage competition because of

necessarily

ticians

and

their

the higher real

apologist,

late Lord Keynes.
Like many others, Mr. Cist

ac¬

cepts the political propaganda that
the
so-called
Reciprocal Trade
Agreements Program helps, rather
than

wages.

Whether Keynes suffered from a
in his eye, from total eco¬

mote

ments have

nomic blindness

honorary

restraints

moral

not need

trade.
a

Free

limitations
trade

trade dictator such

"economists,"

knew what he

the

served

to hide

teachings of economics.

In addition to the
back

the

ensuing set¬
teaching of sound

these agree¬
economics, the real disaster was
provide.
Any investor in the damage done tq the economic
international trade is novy giving calculations that
businessmen must
a hostage to the White
House and make in order to determine in ad¬
the political executives of other
vance how they can best
employ
lands.
Today,
when
political available supplies of labor and
whims can unexpectedly
stop or material resources to satisfy the
limit either exports or
imports, consumer demand that will
as

the role of tariffs is
strictly minor.

adjust to any estab¬
lished tariff policy but it is ex¬
can

title

and those who

ments

Traders

agerial methods and economies of

wholly

listen to them still
doing, we may never know.
However, we do know that his proclaim the miracle of political
General Theory was a forest of credit expansion as the answer to
was

does

political executive

conferred the

scale.

hinders, international trade.
By definition, free trade means no gobbledygook that
political

Only the confused theoreticians, its greater capital investment, its
on whom universities and
govern¬ superior plant, equipment, man¬

exist

at the end of their operations. The

Keynesian confusions have added
to all economic calculations the

now

largely lost this
advantage, particularly in indus¬

the European
economy, the in¬
creasing capital investment, the
improvements in European man¬

ufacturing methods

economics and his head below the
foggy clouds of Keynesianism.

the

ery,

and

achievement

machin¬

produc¬
tion volumes rapidly
approaching
our
own,
the wage differential

GREAVES, Jr.

Mises, Ludwig Planning for
Freedom, Libertarian Press, 1952. P. 51.

alone
will
become
increasingly
significant to American manufac¬
turing industries.
It is likely, of
course, that Eu¬
rope's wage scales will increase in

ish

the years ahead.

Suite 2407

Madison Ave., New York 17.

NOTE

Professor Mises cites the "Paper of Brit¬

Experts

Author

this

Keynes."

April

It is unrealistic,
however, to think that in the next
decade their wages will catch
up

8, 1943 .
The
document was, of
course,
.

with Americ&n wage costs.
As a result of stern self-disci¬

pline,

many countries in Europe
achieved balanced budgets

have

and in certain instances have had
one

THE 1959

★ The 1959 issue of

OUTLOOK

leaders who

manage the

★ Do not miss the

Bank

|pushed

year's business possibilities from the

country's industries.

How

issue constituting a composite cross section of
America's most
competent business and financial
opinion on the economic
outlook for the
year ahead. Please reserve
your space requirements before
closing date of January 10th.

—

bination

25 PARK

PLACE, NEW

YORK 7, N. Y.

RECTOR 2-9570

ill

afford.

have

been

wage

Cites
One

Others'
our

authorities

Comments

foremost

national

international

eco¬

nomics, Mr. John J. McCloy,
cently had this to say:
"We

have

face the

re¬

fact that

is up to us to make clear
we have to
keep prices
We have to make

to all that

and costs down.

better
work

products

and

have

longer and harder to make

them.
a

disconcertingly

large
people in this world
working harder and they
rapidly achieving a competi¬

number

all

are

aware

...

the

we are

(also)

tremendous

strides Russia has made in indus¬

growing produc¬
efficiency with low

tivity

and

wage

rates

that

competitive
world

threatens

position

markets,

our

only in
also in our
not

but

domestic market?

seems

there

possible approaches.
return to

tionist

three

are

try
high tariff, protec¬
policy. We can ac¬

trade

can

celerate the movement of Ameri¬

production abroad to take
advantage of lower wage rates.

can

make

can

effort to maintain

the

our

necessary

competitive

position both at home and abroad.
Let's examine each of those

points

briefly.
Would Not Restrict Trade

First,

should we fall back on
trade restrictions? To begin with,
postwar

our

low

foreign

policy

economic and trade

that

would

shattered

strengthen

has

toward

the

war-

friendly

enable them to

and

Communist

present

policy

the

economies

countries

sist

subversion.

re¬

that we have
succeeded, particularly in Europe.
In the long range, we have worked
market

appears

vision
in

areas

which

United

rich

the

new

world

States

industry

might participate fully.
A

return

trade

policy

have

would,

restrictive

course,

international

severe

cussions.

would

reper¬

bring

sharp
reprisals tending to seal us off
from growing markets throughout
the world. The effects of reprisals
on the cost of imported raw ma¬
terials, on which we increasingly
depend, also could be severe. The
long-term effect would -be to con¬
tract the scope of our total eco¬
nomic
activity,, to throttle our
growth and to weaken our leader¬
ship and influence in the world..
Furthermore, a protectionist

policy would deny the American
consumer and American industry
the benefits of progressively lower
cost and

which
of

efficient production,

the normal

are

outgrowth

competition from abroad, and
ultimately result in lower

that you will agree
than seeking to re¬
strict trade, we should "be doing
the things that will enable us to
compete—to swim strongly in a
am

sure

that, rather

stream of

in many lines we are
pricing our¬
selves right out of the world mar¬

tive know-how

COMMERCIAL & FINANCIAL CHRONICLE

fast

world trade levels.

are

THE

could

and Europe, and
sharply into our former ad¬
vantage in productivity.

important issue.

cut

for space in this

mar¬

America going to face
the challenge of swift industrial
development abroad
the com¬

tween ourselves

Regular advertising rates will
prevail

Out of world

would

ket.

Firm, Corporation

in^ this important

excessive and re¬
increases that have
steadily widened the cost gap be¬

January 15, 1959

your

small

labor

into

peated

opportunity to advertise

workers

Industries

spree.

our

perspective

made

We, by contrast, seem to have
been on
a
continuing spending

your

and

countries

ANNUAL REVIEW & OUTLOOK
ISSUE will
present the official opinions and
forecasts of the nation's
banking,
indus¬
trial and financial
leaders on the outlook for
business in their
respective
fields.
"
/,;7;^/%-' /•*.
• '
★ Get

been

England,
Germany and other countries, who
repeatedly refused to press for
wage increases that they felt their

ISSUE OP

Will be Published

cuts.

statesmanlike

and

leaders

THE CHRONICLE

tax
has

contribution
wise

ANNUAL REVIEW

pricing

of
are

had two related objectives. In the
production.
Given-the de¬
short range, we have tried to fol¬
velopments I have described in,;

wish
of
every
pressure
group.
Henry Hazlitt cannot be
listed in that distinguished com¬
pany.
He insists on keeping his
feet on the solid ground of sound

295

unen¬

trial

every

PERCY L.

have

and

kets.

offer in manufac¬

turing methods and equipment—
Japan—industrial wages
run
roughly 14% of comparable
I refer to

their orbit,,

by the problems
and price inflation that,

wage

that of any other
The necessary

his day.
Union statisticians who
system of economic calculation— Keynesian attempt to fool British
now watch the index
figures have
system that cannot be torpedoed workers. His cunning may have
at any moment by political ex¬ worked temporarily but the unions since alerted their members to the
pediency and later justified by now all have statisticians, called inability of Keynesian doctrines
to perform the "miracle
of
someone
hiding under academic economists, who quickly inform
a
stone
into
bread."
robes, as happened in the case of their members that higher paper turning
(Note
5)
post World War I British poli¬ money wages are not

with two great po¬

cumbered

demand.

world

into

areas

businessmen

Cologne, Germany.
nomic nonsense of the "Keynes
In the steel
industry, Mr. Roger
program" necessary. Nothing can
Blough reports a similar picture,
majce
voluntary
insanity
neces¬
with Ruhr steel workers
readjustments in production can¬
earning
not be made without some eco¬ sary. It was and is only the eco¬ a weekly
wage of somewhat less
nomic ignorance of the validity of
to recognize that the virtues of nomic
losses.
than
one-third
Nonetheless, such
that
of
their
free trade are primarily depend¬ losses are infinitesimal when com¬ Say's law which made the Keynes¬ American
counterparts. And in
confiscations and confusions
ent on a concept of free and un- pared with those resulting from ian
the case of another
booming econ¬
of
economic
calculations
seem
manipulated currencies which per¬ the anti-economic measures which
omy, aggressively
matching the
mit businessmen to use a sound have followed in the wake of the plausible to the British workers of best we have to
compli¬
mented for recognizing "the vir¬
tues of free trade," but he fails

the

tential trading powers, .seeking to
draw
the
vast
underdeveloped

is the

Mr. Cist should also be

Thursday, January'8, 1959

their

attempts to fool
their electorate into believing that
they are Santa Claus when they

Pio-Hazlitt and Anti-Keyncs
to enter

The Commercial and Financial Chronicle

expanding world trade.

America's

cost disadvantage
increase, however, it
seems to
me
we must
anticipate
an
increasing flight of American
capital and much more sourcing
of parts and products abroad.
A

continues to

trend

this

evident.

direction is

American

of tractors and

well

already

manufacturers

farm

implements,

typewriters, office
machines, cameras and optical in¬
struments—goods having a high
as

labor

content

—

are

increasingly

sourcing

and manufacturing in
Europe, Latin America and Japan
for sale

in the American market.

suggest that what
is now a
trickle may grow to a flood which

trial development. We no longer
stand out as the single great
sup¬

could disrupt both production and

plier of goods that we were in the
early postwar period."

United States.

would

add

the

employment patterns here in the

Must Remain Competitive

thought that

the industrial development of Red
China also is proceeding apace.

want

Thus, in terms of the Cold War,

markets and if

are

confronted in the markets

Now it

see

seems

sell

me that, if we
expanding world

do not want to

American production and jobs

Volume

Number 5810..

189'

JiThe Commercial xand Financial Chronicle

disrupted by the flight of capital

and see if they are all really nec-

and industry abroad, we are going

essary

to remain competitive in

to have

quality,

design,

costs

Now,

phccs, to

and

today,

will

that

you

be frank and

lot of people argue

with foreign industry.
~
Here I want to point out

tions

whatever

substantial market in

that

that,
problems of cost

our own

The theory that trade

American

the

any

ago

market

world trade, Henry
"I

feel

mobiles,

Fordjffi made
M$?£-

this comment:

strongly .that

very

bai^ieirs will
be of
real value to $p£world
economy
only
if
ou:g|^oreign
friends are equally dilig^Liq, reTaxing their own trad^lrfcpiers."
^.

mendous

market'Uiat will

ognize

their

the

market

common

Criticizes European

fries

tariff

have

riers

and

effective

plan be¬

would

that

qubta bar¬
penalties so

Take ibgtfasase of

you

cars

lowered from
have

tariff
was
recently
to 8Vz%. We
other restric¬

know,

may

imported

10%

our

quotas or
tive devices such as currency con¬
trols.
■

Now consider

1959 automobile

with full optional equipment, de¬
livered in Pittsburgh, with a sug¬

gested list price of about $3,600,
including state and Federal taxes;

although, as in the case of many
other
products,
it :is
common
knowledge that the actual cost to
the customer may be somewhat
-lower

the

than

suggested
wanted

retail

manufacturers'

price.

you

buy the same car in
England or Italy, you

France,

have to hurdle barriers of

would

quota

severe

restrictions

and

heavy cost penalties.
In
of

that

duties,

car

about

less

$8,200.

$3,200

than

40%

premium for dol¬
equalization fee and
special purchase taxes. You would
a

lars called
also

pay

annual

about $240.

tax

use

In Italy, it would cost

$5,800, with a penalty of $1,400,
plus an annual use tax as high
$302.50.

would

In England, the price
about

$8,000, with the
penalty composed of a 30% duty

and

60%

purchase tax—which
is applied without discrimination,
•

however, to all
As

if these
not

were

passenger

vehicles.

formidable

barriers

enough, imports

are

all

fur¬

12,000 vehicles a year from
the United Kingdom
restricts imports from

sources,

presently
the

United States and

650

automobiles

that

quota

has

every year—and
a

Canada

per

not

filled

Italy admits only

few hundred American
In

year—even

been

cars.

fairness,

considering past
conditions in Europe, it's not hard
to understand why such
penalties
have been imposed. Most of Eu¬
rope's
restrictive
devices
were
established

protect

local

in¬

dustries weakened by war, to con¬
serve
scarce
dollars
for
vital
purposes
source

and,
tax

suggest,

about
some

time
of

importantly,

revenues.

these

that it is
examining
practices closely
start

contrary/ capital
these

countries

certainly

altruism.

engage

have

been

position of

would

somewhat

fellow who has

watching out for the little
next door, and protecting
him
against
the
neighborhood
bully. And suddenly one day we

flowing

the

has

up, and has a good set of
shoulders and biceps of his own.
And

Son, the big brother

say:

act is over, and from here on out

it's

man

Let

remember, however, that

even

man.

were

fectly free

kets,

access

it would do

unless

achieve per¬

to world
us

mar¬

little good

find ways to make our

costs

and, consequently, prices,
competitive. This we must do if

to sell in those markets

are

well

competition with forgoods in our United States

eign

market.
How

can

keep

our

manu¬

competitive?

First

of all, we can intensify
development and introduc¬
more efficient cost-saving
machinery and methods.
To do

ithe

tion of

must have

investment.

that

expanded capi¬

And

that in turn

industry

must have
profits adequate to create and at¬
tract that capital—profits that are
not excessively taxed or squeezed
to death between the pincers of

means

soaring costs and price resistance.
Leaders

have
for

the

steel

industry

championed the case
realistic tax allowances

ably

assistant

Winthrop to

Herbert

Moeii%

engage

Officers

business.

Dickey,

clear that if the

seems

Gordon

treasurer.

M. Sharpe, secretary.

Sheffield,

secretary'

pres¬

inflationary wage
increases is permitted to continue,
must be to

not

only out of
foreign markets—but out of our
„i

markets

own

due

„j>

well.

lead to

course

for

must

hue and cry

protectionism that would iso¬

late

from the world and great¬

diminish

our

influence

leadership

in the struggle

and
for

peace.

us
hope that the impetus
change will come from an en¬
lightened American public that

for

the

understands

nature

lieve

the

it will not understand

me,

lightened labor leaders, from gov¬
ernment, from our schools and
our

media

mass

Jolly Sailor
to everyone

communica¬

It is our mutual job to see
to it that everyone is alert to this

particular danger.
>
If enough of us recognize this
situation now, it is not too late to

free

a new course, to stop
the in¬
flationary trend, to hold our own

build

our

kets.

This

but I for

the

who

opens a new sav¬
or more—as

long

supply lasts. Come in, open

your account now,

and get

one

these decorative coin banks, made

exclusively for The Seamen's Bank

set

markets and in due

COIN

ings account of $5

tion.

for Savings.

to re-i

course

dwindling export

mar¬

may be asking a lot,
do not forget the lit¬

one

erally thousands of letters

re¬

during our recent labor
negotiations, many of them from
union members and their wives,
asking us to hold the line against
further price inflation, even if it
meant giving up additional wage
increases. People are beginning to
see
the
problem.
Let's
hope
enough of us can benefit by the
lessons of the recent past so that
we will not have to go through a
much tighter wringer before cor¬
rective action is finally taken.
After

all,

have everything
we need to meet this
problem, the
talent, the intelligence, the rich
resources of our nation's unparal¬
leled
industry
and
agriculture
we

and raw materials.

direction

not let it be

could

improving

fruitful

industry's

dream

lies

LATEST DIVIDEND

year

DECLARED

(3% regular plus Va% extra)

Compounded QUARTERLY
will

earn

on or

before JANUARY 15

dividends from J A N UARY

Money deposited after January 15
will

earn

dividends from

*'"•

•

DAY OF DEPOSIT

The American

before

and untarnished

Money deposited

ever.

bright

BANK BY MAIL —Send for free

postage-paid envelopes

We must

stung to death by the
of wage inflation.

wasp

competitive problem.

J. L.

Fauls, Jr., Co. Formed

Must Halt Inflation

lem

ultimately the great prob¬
before us lies in halting the

present trend
It

toward inflation.

CHICAGO, 111.—John L. Fauls,

indeed

ironic

that

today
many
well informed Europeans
apparently are more concerned
about the stability of the Ameri¬
can

and the American
they are about their

economy

dollar
own

than

Jr.

has

Co.

been

formed

with

offices at 141 West Jackson Boule¬
to

vard

Officers

kusjness

Fauls,

engage

Jr.,

John

are

President;

Joseph

CHARTERED 1829

Fauls, Secretary and Treasurer,

B. D. McCormack Sees.
know, the rea¬
sons behind the waning value of
B.
D.
McCormack
Securities
the dollar are many and complex.
All of us are at fault. As a nation, Corp. has been formed with ofour people have been too ready, to
fices at 99 Wall Street, New York
take the easy way out of our very

difficult

problems, too ready to
tolerate deficit financing of vast
governmental expenditures, too
ready to go along with the idea
little

inflation

good

thing.

City,

The most insidious single factor
all has been repeated annual

wage

gains in

excess

produc-

engage

Officers

business.

securities
Samuel

are

Balinsky, President; Stanley Mindel,

Vice-President;

and

Gloria

Secretary

and

Treas¬

Giordana,
urer.

30 Wall Street, New York 5, N. Y.

Hours, 8:30 A.M. to 3 P.M. Mondays through Fridays

country's outlook.

for SAVINGS

Griffin, Vice-President, and A. B.

As you all well

that

SEAMEN'S BANK

securities

Mr.

Balinsky and Mr. Min„

...

^el were formerly with Ross Se¬
curities and P. J. Gruber & Co.

are

J, Heinemann, vice-president; and

vice-president;

consequence

in a

president; J.

Inflationary Wage Peril
It

depreciation and replacement
of plant and facilities in the steel
industry. Broader action in this

for

means

Sidney C.

3327

securities

ceived

facturing costs

that

ington,

are

presictent

find

fellow

treasurer;

Officers

Jr.,

into

benefit

that problem without all the help
it can get from industry, from en¬

little

Sharpe,

I suggest that

problem and that acts in its own
enlightened self-interest. And be¬

the

business.

Association,

re¬

fellow

that

and

Investment

own.

say

Services

Inc. has been formed with offices

instead of trying to upset their
economies, we concentrate on cor¬
recting the deficiencies of our

not

But

all their economies.

our

been

however,
to

United

Europe and
Japan and start pumping up the
wage scales over there.
To the

But

ther limited by
severejjuotas and
related
devices.
France
admits

only

the

tal

France, the delivered price

includes

not

grown

automobiles.
As

Avenue

—

the solution is to go to

suggest world
aid to Europe has beertw Let

our

that

$j#irlers

high as virtually to exclude all
imports of various U.^iyi«enufactured goods.

nnt

will

Europ^jaftjrcoun-

some

urill

volume

them—steel, rubber, glass, chemi¬
cals, coal and all the rest.

pure

Today,

WORTH, Tex.

have been suggesting that

cently

final

tmliimo

the

union leaders

our

the

colac

sales

How to Keep Costs Down

effective.

fully

comes

crack at Europe's rapidly expand-

especially

hope that they will,

Some

pattern

only be felt by them but by all
the other industries that supply

rec¬

world^Xet

There

considerable

out

Frank

market.

ent

potential

responsibility to
progress

free

world

products

of product in the future,
If American manufacturers are
deprived of a fair competitive
nnfontiol

the economic,

whole

the

leaders

917

securities

by Mr.
wage-costing
of

log markets, the resulting loss of price ourselves

tradft; every¬

Europe's

encourage
of

American

growth of demand for that kind

boost

where,

manufacture.

could very well be

explode in Western Europe ih the
next
decade
can
giv£*~ HV} tre¬
,1

well as the many other
labor-saving devices of

American

efforts to relax trade

The great new

wonderful

our

comfortable and safer auto¬

speech on

described

the

—

FT.

Inc. has been formed with offices

and E.

our

foreign producers with size alties?
and efficiency comparable to ours
As the standard of living grows,
and with substantially lower wage as new highway systems spring
costs, we must ask an equally fair up all over the face of Europe,
crack at their markets.
V
people will begin to want larger,
years

Form United Services

this trend,

want to buy

may

and other goods now be able
to do so without prohibitive pen-

situation

McCloy

cars

to-

Five

Sharpe Opens

people who

way

access

in'' recent
years,
have gone up, and
while corporate profits have not¬
ably failed to grow, all underlie

vice-president; Richard S. Wash¬

two-

street applies just as much to
our foreign competitors as it does
to us.
If we are to give free

restric-

never

F. W.

DOUGLAS, Ariz. —Frank W.
Sharpe, Jr., Stock & Bond Broker,

substantially
while prices

Ultimately the greatest single
problem before us lies in halting

to foreign markets.
*

such

would

tivity.
The fact that corporate
employees' income has increased

the

we must
be granted
free competitive access

and

there

<121)

Europe for
American automobiles and other
goods.
My answer to that is: If
we offer no competition, why do
many
countries try so hard to
keep us out? Why shouldn't the

reduction/
full

without

even

say

Open Thursdays till 6 P.M.
546 Fifth Avenue at 45th Street, New York 36, New

Hours, 9 A.M. to 3 P.M. Mondays through Fridays

Open Thursdays till 6 P.M.
•

Member Federal Deposit Insurance

Corporation

Yodfe

The Commercial and Financial Chronicle...,

(122)

Continued

from

would

page

had

has

Fiscal Responsibility
toward government service and
recognize the achievements and
good points of our public leaders
as
well as their failings.
Press
and

radio

talk

of freedom

much

speech, very little of the re¬
sponsibility that should go with
it. Any political leader who dis¬
pleases a pressure group may
expect to be ridiculed and even
insulted. His every motive is im¬
pugned, people are encouraged by
propoganda to believe that he is
weak, incompetent, or corrupt.
A

taken to the nearest

man was

hospital after an-automobile acci¬

remain

overnight
In
morning the doctor returned
said he'd have to stay for a
could leave the next day.

but

the
and
few

days,/ "I didn't know how
the

read about

•>
Sometimes when I get through
reading about how bad conditions
are, or listening to a commentator,
I wonder if they are talking about
my country.
When I went
to
Washington
four years ago, I dreaded the
bureaucratic atmosphere for two
reasons: I thought that the per¬

below

the

Nation

helps to build
and

and putting modern business prac¬
tices in the government.

by the legislators and outside ex- ing to present the facts of Ameri- /
perts as to how we could: improve ■ can life, (together nations of fhev
the operations of both Houses".
"" world. Every effort is being made,'

operating
our

vast forces

afield

President.

dence in

have
have

have

modern

business

corporation.

Then there is Mr. Hoover's

mendation for

dent; perhaps

that too many

greater

leadership

our

vice

once

recom¬

second vice presi¬

should have two

presidents,

believe,

same time as .toe. appiopn
^tion bill, so that ev^ry

going to the large-

are

scale operators.

competition between the Corps of
Fn^inppr<?

whiph
wftich

Engineers,

hi*

manv

has

lion

Ihp

Forest
grams

•

Service,

and

other

opinion

should'be

the

been

in the press and

periodicals. How¬
a lesson
ever, much more education seems
practice. to be required. Take the Defense
government official Department—there is no limit to

Australian

There, when

is criticized in the newspapers or the amount of
money that we could
over the radio or
television, he is spend on our defense establish¬
given the same space or the same ment. Each of our thousands of
time to reply. I believe that might installations of
the different serv¬
go a long way to help correct this ices
throughout the world have
abuse of freedom which I think
many needs and desires. I can as¬
we all recognize.
sure

that the budget as pre¬
the Congress with the
Budget Message has

you

Let
of

men

tell you that the
group
who

are

running

Washington Administration
capable
men

and

are as

devoted

could

a
group of
found in this

country, and amazing
been made in

sented

our

has

progress

At-

certain that

not

realize-

J3S

Pr.°.v£

^h,ch had I bee®
J?® aPPr0yal and forW. P

dld n2,t/ sb

^hls would restore to .the

lty*

bvsmn'e member of (Congress1
ConsyidTth"houSng m-og?ams'

AfteT the

war

there

was

great

shortage of housing units and both:
parties helped in putting through

housing
nas
lias

is
as

and

the

Federal-State

eaerai oiaie :

•

plaC?d by the Fedfal Go,Yr15"";
went on
these, act

income taxes. While;
a cushion against»

!cap,d a changes
dechne in
» business:
the

net

lnCome,

ernment's

gov-:

income

difficult:

are

fQm Fed-eral
in

shorSge Thatei^rgencv greSS fecI sufficiently-; strohgiy
vet Coneres?
is con
con-'about the necessity - for^ an.
yet
congress is
that has been
vetoed by

th£ Fres-

:il1come':

bill ion,

This I-is..U»

ibaf

♦?*«!:

than
t!

spite

business

■

of ;

activity

10%.
;fact

the

still*.

has

andnewUp^grams ident>.they could o| course pass it 'heen maintained .at a ,high level.;
that compete with prteate SZiorUy J/laeh House «uld In lnc0me
future,
too.puch reliance:
nri<;p»
+h% ma3ority ot eacn wouse. it woum
taxation could jeopardprise
and do not
grams

do not hopin to 1t,va

begin to nave the

not- be

necessary,
however for ize our Federal budget and credit'
President, who ' disapproved ^
0f a single item, to 'return'the *•
j bel^ve ^ that .we:"haveV
whole
bill,
thereby
lmllifying multipiicity. of tax returns which;

of the earlier programs.

Our highway programs are far
reaching in significance. The

capabilities.

"J/1

passed
passea,

reduced the service desires
by sev¬
eral billion dollars and is well
balanced as to the nation's defense

improving efficiency reasonably adequate defense

riglitlully his to conduct the t0 estimate for. budgetary pur-:
°Perations of the
W poses. As an example" the Treas-.
the most effecti/e. effieient.mari- ury,. estimates of "receipts. both:.

year

urgency

and

problem

present time i

Priation bill»
is very nnportant. whole tax policy — Federal, state'
that the President be;granted atf and local.
I personally believe
item veto so that he Muld diaan- that too much reliance is being-

one

President's

needs

The
Kest"baum Commission
made
some, excellent studies
into this1

•

nro-

united under

department

be interpreted. +We have also :
failed to:.do anything about the -

the exPectecl annual revenues. AtP«ntfrpQQmpn

pro-

those

thlnl5mS

many congiessmen do nox realize j01nt Action Committee hasthe effect of their Votes in rela- ^touched on phases of it I believe"
onri
tn+ni hudePt hipture
p
oeueve,.
budget picture.
that the tlme lg now npe for a,
In addition to the single, appro- thoroughgoing review of our

iho

of the Department of Aari-

culture
grams

sup-

Reclama-

Tnfprior Dpnartmpnt

Tevem

enn

many

porters, the Bureau of

President the responsibility which

Our many fiscal problems have
discussed pretty thoroughly

that
leadership. I
practical suggestion to

;;iegl$JJn

Sp T^Se^
^.em+s.elves
IhnnY^
orderedat*-™or^comPhfab™s>
ab® thT anbrodri ? —provisions that- have to,:

offer and that is to take

from

individual

™

tn^pthpr^nntf

Fiscal Position

confi¬

chosen
one

namely,|

Take the Veterans' programs as
appointed
people seem
to
think it isn't
by the president in addition* to another
enough for the government to
example. Here the Adthe elected vice president.
The ministration has
guarantee them the pursuit of
waged a continugovernment certainly needs more ous
happiness. They expect the gov¬
fight to prevent many expenernment to run interference as good managers and effective co¬ sive,
unnecessary and undesirable:
ordinators at top levels.
well.
programs
bonuses subsidies
and
must

Jle*d^pZtl

political antagonisms.

\vav

by,

This

low-?+-V3S
legislation

through

♦

new

program

baiances.

place

?Hier good /matures whiCh^ the

the

magnificent

structureecleraI budg/<^ani^ cled't.

the

bill may

country-wide

contain.

'
.

,,,.

Another proposal I have in mind

js qbite unnecessary. Certainly it
shohld be sufficient to prepare one
individual

income tax return

and;

tnroughways^on, a js to have more joint'^tearings "held'f oft'^icorpobaW: incofne
i fbtum'
self-supporting basis. As the .re-'; at which the members of thediffef-"
which could be use:d f6f*^ several^'
suit of lecent Congressional acent committees of both the House
purposes and for several levels of
tion, however, expenditures
pex| ancj the Senate could; ;b§ pr/esent, gpyerninent.:. .We .?could have /a"r
year will be more than-the trust
s0 that the top administrators
of
/joint collection agencv^ "Federal"
fund
receipts
and accumulated, the
government would have to ap-

There

are

approximately 9,000

and brokers in
We

have

the United

metal

Investment

dealers

States, and 900 in Canada.

stencil

for

every one of these
business, all arranged
alphabetically and geographically by States and Cities.
This list Is revised
continuously and offers you the
most up-to-the-minute
service available.
firms

the

stock

and

bond

Addressing charge for the
Canada $7.00

Special N.
arranged

$8.00 per

We
a

can

small

entire

United States

thousand.

list

(Main

names.

Cost

only),

also

approxi¬
for addressing N. A. a D.

thousand.

also

supply lists
additional charge. '

less
the

needed

—

done
will

state

un-

about

it,

voted

gummed

roll

labels

New York 7, N. Y.

pear

only

Gbte

able

once

give

time

and

the

therefore: be

of their: valuadministration

could go on all day to illustrate our constant fight to reduce

and operation of the government,
jt \s most difficult to get leaders
of business and labor to take jobs
jn Washington with the present
cumbersome procedures, the con0f
interest
fb(d
laws, and the
continuous criticism to which they
know they will be subjected. The

the

conflict

essary, tolls and gas taxes should
be increased so as not to have to

dip into

our

general receipts for

concentration

power

both

fiscal and administrative in Wash-

Herbert D. Seiberf & Co., Inc.
REctor 2-9570

funds

expect that

ington.

—

°5w5„fenu
recfipls*.,1' for;
one, strongly believe that if nec™

ous

25 Park Place

can

something

this vast program.
offices

geographically and alphabetically,

mately 3,900
list

per

■v

»;

To start with j beiieve that the
to present a fair and true picture
Congress, how-, t6rm of representatives-should be without , progaganda overtones./
the
Defense
budget
has
anextended from two to four-years.- Bptunuch.of the good is counterBetter Organization
other thorough going-over by the
,Too mucb time is spent in camacted by unfortunate, statements f
One
of
our
real
accomplish¬ various committees. As
finally
en-^paigjjing an(j the politicaleffects of made by individuals in. Congress f
ments this year was passage by
acted, the budget in my opinion isVeach decision take too prominent - and business which are* widely
Congress of H. R. 8002 which re¬ not as
good, not as well balanced,
a/part in- their approach to every Publicized im the pressand con-r
quires that agency budgets and and not as
carefully worked out
.jproblem - Even better would be -verted.by our enemies into telling »
appropriations be made in terms as the
original budget presenta- to have the terms of the President .P.rogaganda attacks. Radio Moscow,;
of annual accrued expenditures.
tion. I have the greatest
admira->and yice_president :and congress-/Kas a midnight broadcast in Eng- j
The American Institute was very
tion for our military leaders,
all extended to si* yeabs, and dish which is fiendishly clever; in ? si;:''.
helpful in enabling us to get this the Director of the
Budget is not.,bave the eiections coincide.-Then attributing false and ^misleading '■5-;
bill through the Congress.
The the most popular member of the/
W0. wouid really have a Doriny^ motives tot every action whichwe .
approval
of
the
reorganization administration in
military;circles. broofr
every six years..but during dake.
This is supported hy daily..
plan of the Defense Department
They say that the officer of theHhe other five
years'fcthmk we quotations from-the pTess of • this,
is the second big accomplishment
deck on a destroyer on patrol off/.
might „et more attention to busi- country which can be Mound to
this year. Each of these will take
Formosa asked the starboard lookand less influence exerted by serve almost any purpose,. I think f
some
time for thorough imple¬
out what he would do if a man fell
the" pressure
groups
and :politi- we badly, need a public Melations
mentation but they are really sig¬
overboard.
The
lookout " w a s
-cians-' > /
•'* n-v
andi education program; in ..this v
nificant developments.
•
silent
for
a
moment ,and
then >
". -:j-;
I'
--ir country as well as.abroad.
I was ,
Other important accomplish¬
asked, "Which one, Sir?" .; ;
:
.
told it was politically impossible
ments are the merger of the Of¬
Turning back to agriculture,
--that:l?ccause' it-;waaj feared., that 5it-,
fice of Defense Mobilization and
Secretary Benson has fought gal- ^i
®
^hmit ri#»ht * to --nut'' >Vould become a propaganda of- •
the Federal Civil Defense Admin¬
lantly year after year for more
am not Willing to give up istration. Also, the more effective
flexible price supports and lower
would areatlv iihthatEasily and f , believe some- "
coordination in the operations of
fixed
minimum
payments.
The changes which w a d S,
y
thing
could
be done to .meet the v
our
civil aviation agencies with
administration has been able to Pr9ve ouv fiscal c°
.
y need
Gnce
the; general
public
those of the Defense Department
defeat some adverse proposals and opinion, we
recognizes it. ; £'
2 ; :
through a new Federal Aviation a lot of undesirable amehdmehtS.
Agency. This was largely worked At the same
time, agriculture has ;
operations of
b V
Taxation
^ •
out by General Quesada, and will
been going through a teehnologif
t
k
iT oondudmg imy remarks,;;
enable us to avoid a very costly
cal revolution with rising produc- veto,
th^'
•
I
something about the
duplication of facilities.
tivitv
The net result has been woulcl be to bave fhe individual , subject which is of course of more '
But in spite of all these accom¬
that the cost has been going up to appropriation bills
direct interest to;-you,
plishments, there is still a tre¬ fantastically high figures." It is PaP!ed
1 £
nnd
ilf- —e
5ve
mendous lot to be done. The Pres¬
not only the cOsHo the U. S. Govthe
last bill
^
favorably /
ident's responsibilities and duties
eminent but the cost to every citi*he
?f
a thorough overhaul of our tax
are
much too great for any one
zen, by increasing the cost of every /iS8
rficon+?nce
x\?r'
individual. A number of sugges¬ item he
has to buy. Each one of
m - S
have add£d>
tions have been made and detailed
you should interest himself in this
he
™°le techr :
plans have been proposed which problem. Most of the
payments,

When it gets to

ever,

up pressure groups

It has been said

ally
than

relations. Through the USIA and)
the Voice of America, we are try- ■«

business

whole.

experience in this

type of fiscal problem or in actu-

standards; and that it would be
impossible to make progress. In
my first assumption, I was com¬
pletely wrong. Generally speak¬
ing, the personnel is fully up to
are
still under consideration.
I
private industry and in the case
of the Bureau of the Budget is personally think that the recom¬
mendations of the Second Hoover
above it. As for the second, I was
Commission Task Force report for
partially right. Progress is diffi¬
further strengthening the Bureau
cult and very slow. Each one of
of the Budget would be very help¬
us
is partly responsible, for we
ful.
The Budget Bureau already
tend to interest ourselves only in
acts very much like a controller
what directly affects our personal
or
financial vice president of a
interest, rather than the interest
of

be improved- I think it is time to
have a thoroughgoing study made

aPProI^^iW^fy^fb^^'^?j.?J;.

would

for
who

one

JJj®-I

accident in the

paper."

sonnel

prepare
no

nurI"? 'ba paf

badly banged up you were until
I

There is

The doctor put his leg in a
cast and told him that he would
dent.

have

possible to

in advance.

Thursday, January 8, 1959

The President is

interest

rules

should,

opinion, be modified

vigor-* applied

leader in this effort.

Congressmen

members

the

and

branch

Offers

Own

Suggestions

eral

mentioned

incidentally,

Another broad

sev-

places where I thought that

Congress and its procedures" could

and

Public
area

Relations

govern-

local saies

residents

states caii

public

ap^ficient

neighboring
shipped

of
,

the tax.
.,,

Fur-)
,

lbermo^e» ^keie should be standard
exemptions and credits
I

have

long

come

as we
-

•}

believe

that

continue high tax col-,

we are

going to have high'.

government spending. Even if set-

tlement should be reached in the

have'purchases

avoid payment
,,

and

area

c
;

direct to their homes and thereby

cold

the

excise,

is auitO inefficient1

tax

l0fal

when

ment which needs intensive study
review is

could

manufacturers excise tax.VA

lections
Information

which

taxes, sales taxes, arid possibly
new

Improve Congress

local

Potion- the. receipts from

well

Executive

and

stat® and locaI> wblcb could aP

war

that

over

the next few

could

years

look' forward

•

Volume

139

normal

Number

coexistence,
of

tures
;

5810

The Commercial and

and

peaceful

fear that

expendi¬

other

Federal

might' ehsily pick up most of ther
savings unless plans for tax cuts
have already been studied and ap- >

f>r initiation when the
opportunity arises. I do not think
there is any good justification to
continue indefinitely a corporate
of

tax

50%,

the

particularly

there vate

vsfnd

statcineat''mat
this country

they
'to
r

from

that

corporation.

;

name,

The

;

Broad¬

the

Board

and

William

Vice-Presidents.
also

new corpo¬

tary and Treasurer.

;,1

and

Chairman

Directors

the

Richard

has

Members

rectors

of
T.

are

Charles E.

been

the

Mr.

named

Board

O'Con¬
Secre¬

Murray McDonnell,

McDonnell, Edward F.

Pistell

has

been

since
was

der

Noel

Company,

Inc.,

Wall

Pistell

has

Elliott

the

general

Company

Prior

war.

associated
&

been

that

with Van

fye

Alstyne,

Company. Mr. Pistell has

Street, New York City, members

supported and participated in the

financing

the

American

Stock

Exchange

growth

many

com¬

the

National

Association

.of

panies including Standard Packag¬

Security

Dealers.

Organized

ing,

American

loy

Corporation,

years

ago

1934,

the

broker-

dealer firm has recently been in¬

Becker, Robert A. W. Brauns and
Mr. O'Connor.

Mr.

partner

named President of W. W. Schroe¬

£ind

Di¬

elected Chairman of

was

the Board.

Of W. W, Schroeder

O'Connor Jr.

nor

of the firm is McDon¬

President

nell

founder,

R. C. Pistell Pres.

McDonnell, Jr., Donal P. McDon¬
are

Go., Incorporated.

was

Mc¬

nell, Robert A. W. Brauns, Hubert

partnership

Murray McDonnell has been

elected

which

Charles

corporated.

Television

Tractor, Chromal-

Capital

Corporation

Cities

and

Crowell-Collier Company.

W. W. Schroeder, the

the

;•

for

worx

it.

lot of educational work''

&■

business groups^

" housewives,

with

120

1905.

will get the kind

done with

me reiterate
the taxpayers

out ; and

Co.,

New York City, members of
York Stock Exchange,
changed its status of opera¬

tions
to

Corporation

New

has

-.-s-.

••

that mey want

government

There is

way,

the

^ofchpr serious^ in-.v

^ in - conclusion, let

McDonnell

firm

Donnell, Edward F. Becker, Rob¬
ert ,E: Becker, Robert E. McDon¬

equities.
-the

Now

individual
rate
present high levels, "
in the top brackets, nell

over

taxes

founded

agencies

(123)

investment

McDonnell & Go.

; proved

Financial Chronicle

the

among

->•

professions, with the farmers, and
with labor groups as well, if we
•<

to get back to a balanced
budget, Reduced Federal expend¬
itures, and lower taxes.
r
:
want

American Stock Exch.
Renominates Dyer
1 James R. Dyer, American Stock
Exchange member for the past 30

renominated

was

fourth

consecutive one-year term

Chairman

that

mar-

ket's Board of

his

years,

•

Governors,
according to
an

announce¬

ment

Ed¬

ward

Mc-

Cormick, ASE

President, fol¬
lowing receipt

J of the Nominating^Com- T'
rhittee's-slate.
T h
m

i t1

e a

b y

Clarence
•

e;;..\yas

jame. iv. oyer

Bettman,

Milton

Reiner

Company..„Mr. Bettman. is, a for-"'
itfetf Exchange President and also
served as
Board Chairman
proi

^|Th^|^^nainig:

mm -

.-Li
Committee also

damed^ive-regula^

members

c^ipsfi

three year board terms, four non-

l'egular
'terms

-members
and

gratuity
filled

pt Mr.
and

member

one

fund.

All

the

annual

Feb.

to -three-

the

been

was

first

1946

and

board

1947, 1951, and 1954. He was
vpce-chairman in 1952 and first
chairman

On the first business

issued

Nominated to three year terms
were

member

governors

Charles J. Booklet; John

Covven

Co.;

Gerald

Smith

Sexton,

Robert

and

Suydam,'Merrill
Fenner

Lynch, Pierce,
Smith, Inc.
Messrs.
Mann and Sexton have

Booklet,
served

board

ations up

to midnight

Income-wise, 1958

members

long history. It
dividend

the 1958

.clay of 1959 Chesapeake and Ohio

was

systems. It gives C&O

of December 31,1958.

was

the fourth best

year

was a year

earned with

year,

trends

in which the regular $4

—helps

us to see

and indications

are

what is going to happen.

general trend has been upward

for

continuation of this trend. We

foresee increases in merchandise
tial movement of coal,

additional coal pier at Toledo, Ohio,

which is the newest and fastest

quick picture of what has hap¬

Since mid-1958 the

comfortable margin. It was

too, that saw such notable additions to C&O's
as the new electronic classification yard at
an

product of Chesapeake

one

pened, what is happening, and by translating facts into

in C&O's

facilities

llussell, Ky., and

figures so quickly is

and Ohio's electronic communications and computation

Mdnn, Mann, Far cell, Jacobi &
Greene;.
William
F.*
Neubert,
Sexton

;

Flash Annual Report covering its years oper¬

1956.

regular

mm&

reelected to three year terms

became

the

elected to the
was

stock specialist
member

exchange since 1929.

■'

•

Dyer is

be-

election, on\

1959.

has

year

will

posts

tim
prtifK:

carloadiugs,

substan¬

improved earnings and

expan¬

sion of facilities that has marked C&O's progress, over

the Lakes.

the years.

Up-to-the-minute reporting of the type that provided

Chcssie's railroad keeps growing and going.

the

past. Messrs. Naubert and Suydam
were

nominated for the first time.

Nominated

bers

for

three

non-regular
year

mem¬

terms

Dividend Paid per

were

Earned per

Edward A.

Harvey, L. A. Mathey
& Co.; Solomon Litt, Asiel & Co.;
Walter
T.
O'Hara, Thomson
&
-McKinnon; and Adolph Woolner,
Ikiche & Co, Messrs. O'Hara and,
Woolner have
Messrs.
time

nominees.
A.

Co.,

was

of 1958

first

are

Merchandise

•

Other

Total Operating Revenues

nominated to
trustee

$4.00

6.36

8.36

Net Income

gra¬

$177

$233
168

•

151

•

$356

$432

$304

$364

Expenses, Taxes, etc.—Net

three

of the

$4.00

(millions)

Coal and Coke

Ludlow, J. A. Ludlow

term, as

1957

1958

Operating Revenues

Highlights

the past.

Harvey and Litt

John

year

served

Common Share

......

tuity fund.

Serving, with Mr. Bettman on
Nominating Committee were
F. Browning,
Jr., Wm. P.
Hoffman & Co.; Charles F. Bryan,

Net

Income—% of Operating Revenues

14.5

the

Oren

Spencer

Trask

Co.:

Arthur

*Jf

you

would like

a copy

of C&O's Flash Annual Report for 1 958 and

1959 Chessie calendar (shown

above) in full color, just write:

Conroy,

Boenning & Co.; Joseph
A. McGarry^ Wm. P. Hoffman &
Co.; Frederick A. Mum ford, An¬
drews,

Posner

Clarence

Rothschild

Quayle.

and

Chesapeake and Ohio Railway
3850 TERMINAL

TOWER, CLEVELAND 1, OHIO

15.6

(124)

The Commercial and Financial Chronicle

Continued

from

page

bank

the

Bank and Insurance Stocks
By ARTHUR B. WALLACE

best

kept

merger

secrets in years broke out

December

in mid-

announcement

when

made that directors oi; Guar¬

was

anty

Trust

Company

N e w

York, and of J. P. Morgan & Co.,
inc.,

had

approved

merger

Banking Department

New

are

York

(both
chartered),

State

and to the favorable action of the

shareholders

both

when

cases

these bodies meet at their annuaL

meetings.
Under
the
proposed terms,
present holders of Guaranty Trust
Company would receive a share
of the newly organized Morgan
Guaranty Trust Company for each
Eh are of Guaranty; and the hold¬
ers of J. P.
Morgan & Co., Inc.,
,

would

the

receive

new

2/5ths

for each share
held.

company

Morgan now
Presently Guaranty has out¬
standing 0,000,000 shares of $20
par value, and Morgan has 350,000
shares of $100 par. A merger on
the

proposed

7,540,000

would

terms would result
shares, $20 par.
It

the

put

new

company

third place among the New York.
City banks on the basis of asset

size, and in fourth place country¬
wide.

Capital funds, based on the two
banks' Sept. 30, 1958, statements
Of

condition

would

$508,518,-

000; deposits $3,244,085,000. Book
value of the shares, as of the
same
quarter-date, would have
been $67.44, exclusive of reserves.
Earnings on a pro forma basis at
the Sept. 30 date would have been
$5.12 for 12 months; while Guar¬
anty's 12 months operating figure
at that time

$5.20.

was

The Mor¬

gan
holder will fare somewhat
better as regards dividend as he
has been receiving

$10 annually.
Thus, if the $4 rate on Guaranty
is to be continued after the

mer¬

the present holder of Guar¬
anty will continue to get his $4
annually, whereas the Morgan
stockholder's 4.4 shares per share
ger,

Morgan will yield him $17.60.
Shortly after the announcement

of the

merger

that

newspapers
of Justice

proposed
„

view

the

Department
scrutinizing the

was

consolidation

word

came

deciding

consummation of

whether

the

result in lessened
it is decided in

with

the

reach

the

reached

that

pass

matters

the

Youngstown affair.
the

bank

they

Bethlehem

or,
den by the courts.

have
Steel-

that

could

merger

long delayed,

case

well

indeed, forbid¬

The fact

that the market price
of Morgan has eased
somewhat
from
the
high of around 400
reached

directly

nouncement
that at least
ens

the

seems

after
to be

the

an¬

telling

protraction threat¬

York

New

ing

plan.

Trust

resentation

the

Board

There

are

Manufacturers
a

count,

Trust has an¬
transfer of funds from

profits

and

amount

from

surplus

transfer

surplus

capital.

Members

New York

Stock
Exchange
Members American Stock
Exchange

120

BROADWAY,

NEW YORK 5, N. Y.

Telephone: BArcla.v 7-3500
Teletype—NY 1-1248-49

Dell

Specialists in Banh Stocks

was

the

German

cur-

year 1921.
world 'market for

the

1921

ready made goods shrinked.
volume

The

was

the

Yeirof
1Q23
Yeai oi uz,

time

the

June

the

billion,

Reparation

Basis

fixed

were

two

the

hundred

and

million marks and the attempt (o pay thig in goods failed

39,751)

speculation

get

equal

manner

same

the

exchange

foreign

Reichsbank

fact,

was,

constantly lending foreign money
the Reichsbank or with its

from

help and repaying, it was possible
to make
unbelievable
profits in
Goldmark because of the constant
devaluation

at-

154,000

—

mark

encouraged and made possible. By

reduced.

fifty

M-irk*
jviarKs

January

substantial

credits on the basis
mark and a very
and
ever
increasing

sible

via

three

worth:

was

outside ot

consequently

same

Payments

that

was

incoming foreign cur¬
for German ex¬

rency as payment

ports

result

The

the paper mark.
incredible amounts
marks accumulated in
of

this way

on the board.
A group
tempt to spread payments over a of paper
July
1,102,000
itself
"Committee
for
longer period by raising loans.
the hands of the debtors of the
August
10,325,000
This had the effect of reducing Reichsbank and
Representation" has
this, of course,
September —160.4 million
distributed proxies for the Janu¬
the value of the mark by one- attributed to the
process of infla¬
October
72.6 billion
ary annual meeting proposing that
fifth during the period from July, tion.
These credits,
in- fact, fi¬
the
board
membership be in¬
On Nov. 23, 1923, the dollar was *921, to November,
1921. When nanced the flight from: the inse¬
creased to 24.
The management worth four
trillion, two billion of Rathenau succeeded to reduce the cure paper mark into secure for¬
is opposing the move.
Marks.
German cash payments and to ineign currency.
'
XAv
On Nov. 22,
The management charges that
1923, the price for crease the payment in goods in
Traces thc Vicious Circle
in the Committee's first bid for one match was 900 million Marks.
1922
this
trend
was
largely
The stabilization of the German
stopped and later developments
proxies their move was "specifi¬
This run for foreign exchange
cally and strictly for the purpose Mark took place on the following prove that the reparation , pay¬ automatically reduced the value of
of gaining representation on the day, Nov. 23, 1923, on the basis ments were not—as some German the German
money
even
more.
Board," and that the Committee's of One German Billion, which is politicians and also some econo- And here we see the effect of the
subsequent a p proach showed one Trillion Mark, equal to one mists believed — really instru- loss of confidence in the national

"their

intention

real

mote

merger."

New

ters

Trust

been

pro¬

quar¬

has

for

considered

candidate.

merger

bank's

was

In many

York

time

some

that

_______

Indeed,

management

has

the

stated

they had discussed mergers

with

other

several

banks.

quote from

the 1957 Annual Re¬
"Certain banks have ex¬
pressed interest in merging with
the Trust Company. It is the in¬
tention of the management to ex¬
plore this interest."

port:

The report then states that any
specific proposal considered to be
in the shareholders' interest will
be

submitted

the

their

consideration.

have

gone

latter

Proxy

bids

from

both

twice

out

contenders, and there the matter
stands

await

resolution

Gold Mark, equal to one Renten-

mark,

which

the

was

new

the

period

short

and

currency

There .is. no doubt that thc. real

r^man ^State"

real circulus viciosus:

People
national

the automatic con¬

it must have.

sequences

Gold

confidence

lose

They

currency.

buy

the
in

MnSt'dc^v^afthe

constantly increasing numbers
foreign exchange; in Germany it
was mainly the U. S. Dollar.
whi 'h
toni"g bank abandoned the gold
They try to get goods and are
t
casvNosee clearto he ld
basis" Ullder the circumstances ready to pay higher and higher
fercnce "to
developments which
timc tHere was prices for them.
we
may call inflationary trends.
The
demand
for
foreign ex¬
was> h0wcver> the constantly
change cannot be met by the in¬
Reasons for the Currency
increasing expenses through war come of
export trade and- services.
Inflation
production
and
the
increased
start of the

war

the German issu-

The

There
j

several

were

some

which

will

reasons,

try to

ex-

.
The
inc

lost
iosi

mnde

war

neeecrcbrv

war maae it
necessaiy
to import more than was essential
in prewar days, because

large ter-

the

cssarv'tolmnort food^ndTm-tad"

Jan. 19 annual meeting.

inflation,

Out Leaving

during

exactly

Singles

picture of

devaluation of money

tois

mental in creating

cur-

It is

ieS°/s a^elw1'short

for

prafib5 made by ™ar P^^ion

)
ma
Is. °ss,.
a
basis a source of inflation.
At thc end of the war therc

was

f>hrpp

cir-

4jn,pc.

mnrh

ginning of the

war

with-

circulation of the
Earnings figures just being re¬ turai products which betore the s,nrn1ll(3
mnnpv
hv mpan„ of fava_
1958 by several of the war were supplied by territories
as
of the
large New York banks indicate, now lost. Through the war, Ger'
prevented the
that operations are likely to yield many had also lost
many foreign S
to tak(
such nccessarv acresults very close to those of
1957, markets, there was a considerable
a
,
. these erouns were also
on average.
An interesting aspect loss of good will.
?
4
gF XP
X
? r
t«
Ap
able to counteract the attempt of
will be the extent to which
they
have profited from securities op¬ ready to accept
large quantities
erations. Some gains (after taxes) of consumers goods and others all'

Lliticaf influence

j,ro b c^cemtd
f:

The

inland

currency

the

foreign

°te

in dollars.

import etc. can
paid for in foreign
currency as now demanded by the
exporters abroad.
no

from

dl'awal

the

but

marks

monev

Thcrc should have been

the

devaluates

m suppliers demand payment not in

leased for

necessary

Prices

increase

constantly be¬
on goods and
large parts of these goods and raw
there is

cause

a run

materials must be bought in for¬

eign

countries

and

paid

in-

for

dollars.
Production is withheld and

raw

^\i!r p™o™eriy' toTetAratton

from

Xmentf

this

part of their business
are likely to be
large. One of the
early
birds
reporting, Bankers

Trust, showed

net

profit of $5,-

322,702.

With

Manley, Bennett

DETROIT, Mich.—Edgar L. Fink
is

associated with the invest¬

now

11 in

ie- to

hniannn

c'cZan "Severnmeihods bwtoereaitoettm totomn

led

reparation

There

The

strietod
«ivffv

materials stored because they can¬
not be replaced.
is

the

start

the

ava¬

lanche.

?S5..»»S3S&^SSaSS g00ds
'exponf lcd°toS Xpas"iFa,rin
which

taxcs °n the basis

fixed gold mark value—as

the

^pfXil nHnBnfIf ltlf

ol
ill-

^LTvZZer mXto
counteract the
State to Prevent

mnnpv

uation

its

Attempts

the

press

is called in to

Actually
the
newly
printed
is being used- to buy for¬
eign exchange at constantly in¬
creasing rates.
money

constant deval-

income,

printing

help.

The

state goes,

the

in fact, into the

most black market—it tries to do what
ment brokerage firm of
Manley,
Tt mnv hn
primitive means to stop this de- all the
Bennett
&
people in the country do.
Co., Buhl Building,
nrpmil flp
/ Th velopment were bound to fail.
Instead of preventing such devel¬
members of the New York and
Jn^nflSffnn
nLnlt
U
The
State
COuld
110t
Set
th°
Detroit
Stock
opment, the issuing" bank propa¬
Exchanges, as a
l51 fh
t(> cover its expenses. Besaid
that the passivity nf
of til!?i
trade money
it, opened all possibilities
registered representative. Follow¬
Pa,,oP
nf fi10 pon<;oniipnrp<? of the gated
nnd

£if
n^enrifv'

ing

some

years

in the investment

business, Mr. Fink,

dent of many
years,

cently been active

Detroit resi¬

has
as

more re¬

owner

and

operator of La Salle Supply Corp.

With Vilas & Hickey
&

soaXei7aS thB

Hickey, 26 Broadway,

cctive

findn

l
balance,

tiade

for which

were

finnni

Stock

Wi? mS

now

Exchange,
A.

an¬

Dickinson

national and grindlays
bank limited
Amalgamating National

Bank of India Ltd.
Grindlays Bank Ltd.

ri
There

BISIIOPSGATE, LONDON, E.C.2

13 ST. JAMES'S
54

SQUARE, S.W.I
PARLIAMENT STREET, S.W.I

Bankers

to the

Government in; aden, kenya,

uganda, zanzibar

somal1land i'roiectorati

Branches in

india, pakistan, ceylon, burma,
kenya,
tanganyika, zanzibar, uganda,
aden, somaliland

protectorate,

northern and southern
rhodesia.

the

were

nnrtc

fho

Romihlio
Republic

-x

souice

from

left

the

vlmafiiini

thw-itnitoH
threatened

and

^
^break

Pdv

the

cannot say

that these events
really caused inflation.
There
of

was

which

at the

expenses

start

which to save is its highest
Once started, the- printing
press of the issuing bank never
stops until everything" is lost.
Finally the national currency

reg-

Reviews Wages and Prices

thc

April, 1923, by one-seventh; in
September,
1923,
by
one-hundredth; and at the end of November, 1923, by approximately pnethousandth.

Besides

this

very

unfortunate
was

or less forced by political
influences of group interests, the

^ Ge?many

issuing bank
pursued
credit policy which was definitely
contrary
to
what
was

ment

with

another development
said that it de-

was

cisively contributed to inflation. It
was the passivity of the German

Rpichsbank

crease

the

rate

refused
of

also

interest

special
to

the

in-

level

might be

develop¬

and prices during

1914

until

follows:

1922

Milk

Meat

Bread

Now

for-

according
Germany
Instead of it, the Reichs¬

devaluation

currency.

of wages

Eggs

refused

commercial and

ejgn exchange credits to
institute.

(January) by 17 times. His wages
were
17 fold higher. Prices in¬
creased during that same period

Criticizes the Reichsbank
the

connection

this period.
The wages of the average Ger¬
worker increased compared

necessary,

transfer

this

of interest to follow the

man

position into which the state

The

to exist.

ccascs

cover

Ruhr Occupation by one-third; in

productivity of German
economy constantly and comparatively quickly recovered, so that
one

figures: Bv

cur¬

duty.

necessary to note that
spite ot all this the production

and

„

ular income the State could

own

rency

money

taxation—di-

stantly

°iC~

Ruhr

•

But it
in

revolts and revolu-

unrests

through

ex-

rec{. and indirect—decreased con-

beink

The value of the

penses.

y coming in
reasons

finally finds itself in

not reduce toe position to devaluate its

most important part of these

for it and

^SGw°£r i' ^otod

its
w

mf^ion^^Tiv^V^t^r
cupations (like that of

Head Office:
26

Inflation

associated with their firm.

and

quite obvious.

^
Hilfnrhnnno!

City, members of the

that

?hp\vnr°inhmftfin ° yG^rS after

New York

nounced

fhU infultton ^ ?q9q

New

York

-aergni etd

Ant„oii'.too.o

The fact that German
economy,

London Branches:

Laird, Bissell & Meeds

S. Dollar

Stockholder

and

INSURANCE
STOCKS

State

some

tionary

BANK

the

London Ultimatum

This

devaluation.

crease

calling

ac¬

1922

Di¬

payments.

rep¬

present

figures, which convey more than words can do. One

members

Vilas

undivided

began.

Here,

balance

especially true of the

end

destruction

encounter¬

nounced

the

rency

stockholder contest for

rectors.

could

yet

changed, but the dollar amount of
capital is doubled to $100,780,000.

plan would

competition.

case,

not

were

Figures Are More Meaningful

which, of course, had reduced it¬
automatically with the in¬

the Reichsbank it was hardly pos¬

consequences

actually lost control and the rapid

move

business

its

is
to increase the par value from $10
to $20 a share," as the number of
shares
outstanding remains un¬

Washington that

such

single effect of this

the two banks, subject, of course,
to the approval of. the New York
State

The

increase

credit

and

self

the

oi'

propagated
draft

German Experiences with Inflation
catastrophic.

This Week—Bank Stocks
One

8, 1959

Thursday, January

——.

some

times
-

higher

34 times

times

55 times etc.

figures

for

1922

as'

from April of that year. The offi¬
cial cost of living index was in

April
1922

1922 = 3,175 in November
(same year) = 5,800.

Wages', however,
27

times

were in April
higher .compared', with

to-"

Volume

days i.e. 20% less com¬
pared with the increase of prices.
In
November 1922
they were
prewar

with the in¬

less compared

54j%

of the cost of living.

crease

same.

dates

inflation

be¬

too

rapid. *
It is undoubtedly true that the

value

1924

the

increased

workers

of its value
inflation in

by 50%

After

1918.

paid

wages

reduced

was

again

about

two-thirds of its prewar value.
For

worker

some

France

times

3.5

was

and

by
and

higher than that of a German
worker, in Great Britain 5.5 and
in the U. S. A. 17 times higher.
Another method to demonstrate

duce arms,

actually

industrial

boom

starts

and

one

fight here the symptoms

not

the

for

reasons

introducing

stop

inflation

wages

prices and by submitting the

The

reasons

for this

flation were, in fact,
with the first one.
It

started

mense

increase

the

same

state

armaments. This

im¬

expenses

was

not felt

the

for

pro¬

tunity to

after 1945.

uncontrolled

prices

where

market

black

side and high and

one

nearly

the

that you

Official

everything

near

found

when

occupied Germany and the

ture

tive

friends here
than

their

are

all

they

many

true pic¬

any

facts—as

all

official

statements of that time

are

lies.

:p7':V'''

the

period

for

and I

give

willful

after

the

information

some

will confine myself

one

all

effec¬

1948 Currency Reform

of the

Only those who owned property,
mobile

who

immobile

had

and

the

our

currency

some

ple,

nor

neither

the business peo¬

the

professions

mark

civil servants—not the
people
but the state produced the swell
in

currency

which finally led

new

introduced it

Deutsche mark
was

time

Oct.

ingenious
which were adopted —
clever, cunning, ruthless and well
constructed

—

but

nevertheless to

Continued

stated that

1923:

goldmark per

The

per annum;-

November

inland

annum.

market

shows

also

of the Ger¬

Telephones Be Like?

currency.

The

index

trade shows
with

1914

for

wholesale

the

increase compared

1920 by 20

January 1921_ja>

And

*._42 times
__91 times

June

then

times.

21 times

January 1922
July 1922

and

price structure of the Ger¬

man

gold-

approximately

the rapid destruction

1923:

2,054 times
into astronomic

goes

figures.
Retail prices

followed, of course,
development and an addi¬

this

tional

reason

prises

tried

that

was

all

enter¬

stable
basis of calculation and, of course,
come

to a great
extent engaged in a
price raising policy which had no

relation

advantage of
This
was

then

but

facts

took

unusual situation.

short

was—as

facts of the first German inflation
after World War I. I

that

conscious

could

not

possible—a fair picture of the

of the fact

This

communication

in the years

service

ahead. Matter of fact,

the need is with

right

now.

give

Just the great increase in popula-

details in this restricted time

country is going to be needing

lot

but I hope that I have been able
to convey to you the reasons, the

tion

implications

people in the U. S. by 1970) means

obvious

and

from

the

facts.

what

said

the

policy of

credit

policy

the

state

the

and

that we'll be

the attitude

by the loss

issuing

obvious

that

people is dictated
confidence in the

stepping right along to

keep ahead of

our

customers' needs.

The greatest progress

bank.
Furthermore

and

what the facts prove that this in¬
flation was mainly
due to the

financial

(there will be 40,000,000

will

come,

always has, from the Bell Sys¬

tem's

unique concept of unified re¬

national currency which gives to
those who own property and are
in business a variety of possibili¬

search, manufacturing and operation

ties

telephone service in the world.

effects

evade somehow

inflation

even

attempts

of evasion

ways .in

the

end

the worst

The

and/or

working

the

man,

people

insurance

civil servants

bound to lose

are

everything they have—they have
to start from scratch.

Many
or

new

created

things

are

always the

consequence

ing the volume of

of swell¬
and this

money

can

only be done by the state and
its issuing bank.

you

be able to get

your

receiver all be in the unit

party just by pushing buttons,

turn for

view of the second
many

during

had
and

short

to communicate

New instruments will

provide

ever-widening choice for
tomers.

our

development of

switching will make

services faster and

our

versatile.

There

are some

bilities in the
ties for

use

tremendous

possi¬

of telephone

facili¬

enabling business machines

with each other—

how many

miles apart.

Great volumes of data of all kinds

cus¬

Improvements in trans¬

mission and the

matter

transmitted

can

over

telephone lines at high speed.

automatically

We also have the prospect

in addition to the present

networks for television
How far

go,

broadcasting.

and what

we are

depends

on money.

make the best progress
to

the greatest

advantage of

must be in

the Second World War.
This inflation
ous

first

was

and

not

was

obvi¬

timely

BELL

every¬

good shape financially.

In all lines of business it is the
are

good

able to make the best

prod¬

companies whose earnings
that

ucts,

arc

provide the best sendee and

give the best values.

re¬

before,
started

and apply it

body, the Bell Telephone Companies

pro¬

viding picture channels for many
purposes,

able to do,

inflation Ger¬

experienced
after Hitler

hold

and testing them at Bell Laboratories and in homes and offices.

Hitler's Inflation

Now let

you

instead of dialing?

already at hand

full employment nor by wages or
wage increases. A real inflation is

hand? Will

We're working on many types

electronic

cannot

of this concept is al¬

sight.

It is further true that such de¬

velopment

telephones be smaller and lighter and specially

to look ahead and not baclc.

ways

companies, the
overwhelmingly
large
mass
of
people .of
all
professions
and
trades, however, whether in busi¬
ness .or workers, whether doctors
or

A vital part

not al¬
really suc¬

^ave their savings to banks

PICTURE OF TOMORROW. Will tomorrow's

designed for each room? Will the dial, mouthpiece and
in your

may

given this country the best

such

cessful.

who

that has

was

per,annum.7;7H:;.t..
1, 1.922: approximately 14

goldmark

nor

the

head of the population
in Germany:
approximately 90 goldapproximately 7 51

extent.

again the state who was
responsible for all this. Neither
was

in goldmark was

1919:

im-

power per

mark per annum. ;

those

most

industrial enterprises
escaped this complete destruction
a n

this development: The purchasing

1914:

practically

everything again.

methods
cur¬

rency

saving was

that

complete destruction.

When in 1948 the German

was

know

all Germans lost

This

figures I could

6.5.

You

the workers

figure only:

give.
contingents were
all goods and actually the whole
You know of the hunger and
economy was under control of the misery of a people who had to pay
..

the

war we can

families .and

much

the

Only

stories which will have been told

them,

statistics of that Hitler

period do not give

all will remember what

soldiers

your

the loss of value in all

p o r

self here to these short remarks.
are

help your country
countrymen have given
people in these dark days

black

could be got on the other side.
I may be allowed to restrict my¬

events

leaders

gratitude to

express our

your

goods

their

foolishness and ,100

own

crimes and I may take this oppor¬

and

of the

appearance

madness

and for their

market—fixed prices in the state
controlled economy and scarcity

lated

by the state,
fixed for nearly

and also shortly
first
consequence

generous

directed

purpose:

and more arms.

war

the

first, because prices and wages
were stopped, raw materials were
controlled, production was regu¬
and

the

These

1936
of

in¬

second

one

arms

During the

whole economy to a strict control.

lor

interna¬
tional figures: in Spring 1922 the
value of the wages of a building
comparison

state for the

was

these

even

the

before

fix

perhaps

because

tries

came

its effects

actually

dangerous to have this type of in¬
with

figures

but

—

(125)

flation

not

these

all

later

Financial Chronicle

,nevertheless

were

give theihue picture as dur¬
ing the last period of inflation in
1923 it was actually impossible to

And
even

controlled

t»'!' '.'i

The Commercial and

Number 5810

189

TELEPHONE

SYSTEM

page

The Commercial and Financial Chronicle

(126)

Continued

from

page

German Experiences with
the

volume

The

effect.

same

from

away

bigger.

destroyed the savings and every¬
thing material for a whole com¬
munity.
One might well say that it is,
of course, the people themselves
who cany a large part of that

one

can

the

cake—but

responsibility

allowing

those

beginning of my paper
said that inflationary trends are

often

regarded

have tried

show

the

reasons

If I try to deal

for true inflation.

tendencies

with inflationary

now

inflation.

real

be permitted to survey the
economic development as a whole
I may

explain more fully the
and backgrounds of Ger¬

forces
man

economy.

1929-33 Wage and Price Deflation

inflations

Both

Germany

follewed by a period of de¬

were

flation.

War this

After the First World

period

1929

from

1933

recognizable
i.e.

—

for

four

price level fell during that
time by 22%
(1922 = 100). The
reduction of the price level per
to

little

than 5%.

During the same period nominal
wages per hour per man fell by
27%

(1929

100).

The reduction

of wages was thus larger than that
of

prices.
development of real wages
was also negative during this de¬
flationary -period. It fell by 5%
and the puchasing power fell per
annum by 1%. ;
<
The

The social effects of this defla¬

tionary period made • themselves
felt by an immense increase of
unemployment and a constant loss
of purchasing power. '
to

This in turn attributed strongly
a radicalization
of the masses

and the

uprise of Hitler.

There

certain

were

for

reasons

this development. In the 'Twenties
German industries had rational¬
ized

their plants

degree.

high

very

•'

Productivity
various

campaigns

methods

and

increasing

production had been introduced.
increased production could

This

not be sold

ficient

there

purchasing

pieces

that

the

avail¬

able.

various

ciety and

income

the

into

of our so¬
will know what I
groups

you

mean.

By fixing prices artificially one
destroys the working principle of

You fix the size
piece of cake to a large ex¬
by one method or
another, whether by state control
or
by private enterprise—if one
does this, one prevents the regu¬
lative of competition to work and
a

free economy.

of the

Whether

tent.

which

conditions

creates

living, the
purchasing power and finally the
value of

our

this

But

money.

inflation.

not

Be¬

afraid

of
to

inflation

one

income

demand—produc¬

opposite mistake to what had hap¬
pened before.

fixed in this

or, if at all, only for a rela¬
tively small group of workers
compared with the whole Work¬
ing and buying population of the
community, there is no possibility
by wage increases to start infla¬
tionary trends.
This would be only possible if
wages could be increased gener¬
ally to such an extent that neither
prices, nor production, nor sav¬
ings would be-able to absorb them.
This, however, has never hap¬
pened in Germany and it is un¬
likely that it could ever happen
in

because

free

our

economy

Prices

find

Wars

high increases of
during the first years.
During an exceptional increase
in prices, wages increased from
1924-25, by 14%; and in spite of
Price
Stability they increased
from 1925-26, by 7%.
we

real

very

wages

And

the

after

Increase
1948-49

deal

with

subject which is very much dis¬
cussed in

Germany and I

everywhere else.
whether

prices

whether both
and whether

respective

World

Second

wages

18%

increase

normal

ques¬

wages

price policy and

wage

policy

can

Increase
1950-51

with

by 7%
increase

wages

strong

in
of

prices.

increase

real

wages:

1957-58,

ap¬

pre¬

vent inflation.

This

shows

that

increases

the

rates

closely con¬
nected with the conjunctural de¬
velopment of the national econ¬
are

They are surprisingly
independent of the development
of prices.
omy.

Let

examine the facts

present themselves to

they

Ger¬

many. First of all let us state that
if you take the cake of the
social

product

divide this cake
pieces.
You may

you can

into

different

take

pieces

exactly

the

size and distribute them
all the children at the

same

between

table—you

cut different slices of differ¬
ent thickness. It is, and

may

remains,

always the

same

cake—only

So, if one boy complains about
his small piece he can—theoreti¬
cally, and if you wish to do so in

practice—get a bigger piece with¬
out increasing the volume of the
cake.
You

have

only

take

There

some

were

other

reasons

which

reduced the

purchasing power and
are in Germany: the
underdevelopment of the industry
producing consumer goods, the
overdevelopment of heavy indus¬
try and of the export industry.
This among other reasons led to
some of

them

stagnation.

you

divide it up differently.

in¬

increase

industries

would

disturbed.
to

measures

and

trades

normal level

support

which

are

before—wages
increase more than produc¬

must

All increases of

the

increase

price level
the

volume

money. They are always con¬
nected
with
a
swelling of the

credits

and

opening of the
This, however, is

ume

tendency

part

our

free
From

remarks just

it
that the preconditions

obvious

now

under which nominal wages should
conform with the increase of pro¬

ductivity do not in practice exist.
Prices

Germany

not

are

really subject to the laws of free

Approximately 40% of
our
income in Germany is spent
on
food.
With the exception of
but a few products
thgse prices
are
regulated
by
subventions,
contingents and by a "Marktsordeconomy.

nung" (Market Regulation) which
regulates them in the interest of
producers and distributors.1
Another

20%

income

our

goods and services which

subject to public monopolies:
Postal
services,
railroads,
gas,
water, etc.
Another part of our expenses is
influenced by the Central policy
of capital interest fixed
by
All

these

garded

prices

banks.
be

cannot

market prices,: in the
theory of the free econ-

and/or

subject
of

services

other laws

market

Not

the

Under

where

sible

for

which

than

are

those

hand

the

pur¬

chasing power is for more than
relatively short period unduly
reduced, the effect is deflation.
very

wages
rate

and

make

wages

one

respon¬

are

consequence of

instances necessary inter¬
in
the
market mecha¬
nism! How far this interference is

from

and

groups

political
influences,
this
is
question I cannot discuss here.

certain, that much of this in¬
terference is not necessary.
;
,

It is certain that

and

lot of it

distortion

con¬

our

and

prevents structural
which - are unavoidable

the

interest

the

community undesirable.

simple

must
the

not

formula

rise

increase

above
of

that

omy which we
textbooks
does

the

know
not

actually

Nevertheless

force,

must

from

and

the

cannot

existed

never

this

modern

enjoy is to be saved

allow

the

State

the

preconditions

ling

fulfilled:

the

for

wa. es

would

•

create

cutToreign

lessons

Campbell Chibougamau
Offering Completed ^

Lid.

whole

accordance

and'

Net

with

the

economic

everything

but

interfere

an¬

offering of $5,u r r e n cry)
Mines

Chibougamau

and. the

economy

community
is

the

and
in

man

know
street

u£ed

The

bonds

the
company
at the
rale of 145 shares for

each

bond

converted

120

before Nov.

who

freedom

has

than

and to guarantee
each

citizen

the

community. %'
free

$1,000

rate

bond

before

will

Nov.

into

which

1968.

the

made

list

bonds

American

Exchange.

The

in¬

§1,000
prior to

1, 1963; thereafter
$1,000

convertible

Application

Stock

State

per

are

secure

conversion

at the rate of 100 shares
per

clever.
the

un¬

May 1, 1961 thereafter at the
or

shown,
is

convertible

are

maturity,^ unless
previously
redeemed, into common shares of

terfere to

corporate

til

the

cunning

proceeds will

including
commence¬
development of one of its

bond

the

general

who will pay most dearly for all
experiments which may be made
by people who, as our history has
are

for

bodies.

ore
-

mo¬

the

books

sale

purposes,

nopolies must be kept under con¬
trol so as to prevent them to set
their intcjftest above the interests
it

the

applied by the
repay
bank
loans.

ment of

the

bonds will

welfare

We know that all economic

and

from

v-;Vvproceeds

company
to
The balance of

its people for some dreams of

the

first

oversubscribed

such

power.

Pit—

Dec.

closed.

know how

for

that

"W.

anu

Inc.

(Canadian;/e

Campbell

The

developments.
We
know what it means if a people
engages
in political ' adventures
when it is ready to sacrifice its

Co.,

000.000

inflation arises,
know how to prevent the rea¬

Co.

nounced that their

rency), and accrued interest, was

experience

sons

Alien

field

been

bonds

r'v

will

redeemable

optional

redemption
prices
ranging from 103% to par, and
they will also have the benefit of

and

annual

sinking fund through
redemptions will be made
beginning in 1961 at prices iden¬

which

society this duty of
imply to regu¬
regulate

tical with the

optional redemption"

late free enterprise or to

prices,

accrued

prices and wages.

each

the State does not

est

Only

the

State

Can

His

duty is to

manifold

Create

see

the

national

has

ar¬

can

inflation. It is the State

it.

It is the State who

when and where

and

to what

the

duty

every

mill

selfish

see to it that
interest does not
over the common in¬

all.

These

words

—

they are—have but little

factual effect.

professed to
and still

Human

many

live in

beings have
great

a
a

ideal

world which

only too often resembles

com¬

munity where the laws of the
jungle are stronger than the laws
of justice.
So it

is left to; the chosen

resentatives
the

them

the

government
to prevent

power

and

and
responsible
to
the

influence.

misuse

can

of
do

Mines

The

silver

company's main
situated

are

gold

and

some

the

The

company operates a
Merrill
Island, Obalski

has

been

operated

rates

exceeding 2,000 tons daily-.
Upon completion of the current

financing, outstanding capitaliza¬
tion

of the

the company will consist
$5,000,000 of 6% first mort¬

gage

convertible

bonds, due Nov.
536,925

par

sinking
1,1968,

fund

and 3,-

common

stock,

value.

Stanley A. Russell

rep¬

people

occasion

group

power

cur¬

Township,
which
has operated
regularly at tonnages in excess of
1,700 tons of ore per day and on

group

community to

copper

well

cobalt.

Canada.

gerous.

payable

United States

proximately 300 miles north of
Montreal, Province of Quebec,

foresee

can

and

point inflationary trends are de¬
or
rejectable; and
dan¬
It

Townships of Obalski. McKenzie,
Lemoine and Roy, all an the Chi¬
bougamau District of Quebec ap¬

sirable

of the

Chibougamau

contain

deposits

given

alone which

prevent

will

development of its properties

which

can

properties

It is the State

Campbell

and

situation.

can

bonds

Ltd. is engaged in the exploration

currency

than is desirable in

interest

Principal of and inter-?

the

in Canadian

by his

plan ahead, to see ahead and
range things so that no one
devaluate

plus

case.

rency.

instruments

;

facts.

foreover

have

country.

our

you

all

methods

which

see

—'

be
saved
from learning by such experiences!

trade

our

apathy will

experience and the

have learned from two

May

only method really effective is the
one

the

Germany as we
They have all failed.

These

seen.

/inflations in

kept
in-

some

either

society
dangers of politi¬

mortgage convert¬
ible sinking fund bonds, due Nov.
1, 1908, at 100% (Canadian cur¬

terest

interest of all to interfere. Not to
interfere for the sake of control¬

are

This

democratic

it that it works. ■*>'■'<

keep prices at a level out of
contact with the rest of the world.

true

tivity is only workable if certain

produc¬

would refra i i

stable

it would
Market or

1 Slack

econ¬

economy which we know and the
we

fqr Inflation

currency. ds- iuifafr*

prices

watchful

conscious of the

cal and economic

gain

and it may be,
therefore, that it is
so
often proclaimed as the ideal.

freedom-

if workers

•

Even, if

whole

We all know that the free

of.; our

artificially

create

changes

we give them our
support to
plan in the common interest.

•

only create ,a. reductioi>;pf trades
unemployment and misery.

who

economy

that

given period—this- would 'not pre¬
vent • inflationary-X' 'tfendehci-es^^^
under cert alii coditions it would

result

tributes

increasing their

really necessary, how far it is the
pressure

And as—in -a
democracy, we are the State
our
responsibility to see to
that they get the powers and

with

demanding the impossible.

some

ferences

to control

These trends

fact

position to
plan ahead.

—it is

Inflation

circumstances

decide

are

free

pldneresponsible ^orCflity

Even

offer and de¬

The

them:

safety

In
on

They

that responsibility!

the

pick one group of the com¬
munity out to make them and

our

development in Ger¬
many which at certain times ap¬
pears to show inflationist trends.

exist.
other

these

hardly

can

are
of

means

Free

implies that 80% of
in Germany is spent

income

goods

Prices Are

They

go.

not.

truly the State has to interfere to
guarantee the economic security

regards the market.

Most

various

Cannot Blame Wages
,

re¬

the

sense

and

government

tried

it appears,

not
where they
advisable—by ail

economy.

free economy which in fact is not
as

whether there will be inflation

methods of* our*

direct^

"normal" swelling of the vol¬
of money and a certain infla¬

tionary

light hand in time trends which
may
become dangerous to .our

tivity.
mean

^Parliament and goverhirierit ;deiermine the road economic policy

conse¬

competitive mean increase of
prices—if demand is to be upheld
at

communityTalonO-tyj
destroyed' 13^ dnt/

than

not

Are Wages Independent of Price?

wages

the

mand determine the price.

1928-29, only 2%;
proximately 1-2%.

must
more

demand

wages by 13%
in
reduction of prices.

some

interfering with free¬

one- rin

modern economy it is in the hands

market

suppose

the

lead to inflation

can

increase

Protectionist

This

Increase
1949-50

world

without

dom—if it plans in time and acts
time.

system,

sound—and

productivity
because otherwise the equilibrium

omy

with

retain

only and ex¬
by offer and
must be no pri¬
interference;
if

the

must

Wages
quently

War:

small

rise

economy,

done

by fixing rates collect all facts and to
of
interest,
arranging . taxation
.They have the means to influence
and direct subventions only where
arid to interfere.
^J'
they
are
really i.r economically
V.,' They cannot be absolved from

land market.

are

World

both

financial

state

be.

permitting it;

manifold

struction

Whilst before there

we -come

must

State

demand—there

spent

after

our

money.

By the various

politically

prices
prices

our

of the community without

clusively regulated

are
very
susceptible to
conjunctural trends and are in
fact, in spite of what most people
believe, rather independent of the
development of prices.
Here are some figures:
During the periods of recon¬

wages

Compared with these figures,
was too much money available—
those periods of strong develop¬
this time there was not
enough.
ment of industry show—contrary
to what is often
Can Wage-Price Policy Work?
believed—only a
Here

balance

the

tion.

vate

basis of

cannot

group

another

consequence

It appears that this continuation

As wages cannot be

increase

purchasing
sufficiently and made the

power

distribution

trary it is reduced.

ex¬
was

the

prices.

Obviously shocked by the
perience

tion

development must
there must not be
structural
changes in the
eco¬
nomic
set-up which would de¬

purchasing power cash-reserves.
is thereby created.
On the con¬ hot inflation.

way

This

i.e.

the

save

group of the
be "nor can it be

economic

stable,

influ¬

standard

the

ence

not suf¬

was

power

thickness

the

and

each piece, are not.

The

amounted

pieces of the cake is up
The volume of the cake
fixed thing—the number of

the

years.

annum

get more than there is in
that the distribu¬

you.

position must be such,
the distribution of income is

mand

clearly that no

very

the value of

tion of the
to

cause

clearly

was

means

Translate

the

that

just and correct also with regard
to production and demand — the

What does that mean?

to rule and to act.

men

which

piece

one

inflated.
All cunningness cannot absolve
those responsible for having
money was

Inflation

starting

Thursday, January 8, 1959

...

Stanley Addison Russell
away

Dec. 31

Russell

had

at the age

been

Lazard Freres & Co.

passed

of €9.

founder

Mr.
of

Volume

Number 5810

189

Chas. E.

Tightening Money Market ; Depicted for 1959
r: In its annual projection;of bond
-

prospects, Standard &
of fjunds reveals continuing
pressure for funds which are expecjted -to increase $3.4 billion
in second half of 1959 tompared ^ second half of 1958.

Our

,-ws

interest

Long-term

will remain high

rates

the

and

admitted

is whether

not current quotations have

coupon

rate, and the maturity of the

the financial

district

believes

discounted the

new money

bond

the

Treasury will offer in
V,order to raise the needed funds which will be used to meet the

estimated.; Major; intreases will bd in'.corporate demand, re-

tion

John h.

and

been

The big question which the bond market is trying to

(Jan. 8).

amount, the
/ which

have

general partnership in the invest¬
ment firm of Chas. E. Quincey &

market, after finishing a very defensive year
in 1958, is waiting for the impending new money raising operation
of the Treasury, the terms of which should be made public today

•;*yfdzcredit, coming/ year,
:/ bond analysts of the! statistical and investment advisory organiza-

V. Mohan

Excoffier

The Government

money

Quincey & Go.

Admits Two Partners

Governments

Philip

answer

•

By JOHN T. CHIPPENDALE, JR.

market prospects fbr-1959.

annual study of- bond

•

Reporter

Poor's analysis of sources and uses

■

'31

(127)

The Commercial and Financial Chronicle

/. deficit./ :/.>/. ' '/ 7. \./;"; V1 //" * •'•
/• /:./•;
largely; to iavfttirnvabout" from^invehtdry liquidation to
//■■7/The demand for short-term issues is still sizable and this
accumulation.',.pv. >/••.%/
7 section of the money market continues to be as broad as ever.
;.^Presenting a detailed table of "sources and uses of funds,'' :1-' / However, it is reported that certain corporations that have been
I they hlso/expect pa ;
^dei^^^^plCQnsuhief credit/?£. large buyers of the most liquid Treasury issues are now indicating
:
Government, requirements,, while remaining,-large, may, be little 7/
that this interest is likely to decline in the not distant future.
changed from those 0^-4-^58.'■ The action of the monetary authorities is being watched very

lated

Jengtheni;t% ^^v;^!^^theldss, will exert /

//T^Treau^y^

the -bond market. /The/fiming'
^these and- other
borrowings, and the/reacti/m of interest rates, ' will be in large
measure determined by policy decisions of the Federal Reserve

% pressure
■

:
:

Board.

•;

which the Treasury will raise its new money, and
involved, should be made known today. The conferbetween the Treasury and the various advisory groups,

ences

7
-

Funds in; the, JL S. Economy / ■.

Sources and Uses of

nnually —Billions of Dollars
/'-—1956

OF FUNDS

SOURCES
/

1.2

& Loan. Assns.——

Savings

2.8

•

Sv: & Local Retire't & S. F.s
/ Federal Agencies—
-VI-

—7

f Credit Unions-.-—-"

-1.0

1.1

t Business
Federal

Reserve

Foreign

Capital inflow

'0.3

:/• c.2

—0:2

1.3

1.0

2.5

3.2

12.3
/ 1.5

0.1

1.0
;

1.4
0.8

0.9

1.1

9.8

USES

FUNDS

State

„•

////Z^/'

Notes
r

•

2.1

1.2

7 1.4

—-(L9

0.2

0.5

6.8

7.2

-7.0

28.4

19.8

31.8

,2.i

6.5

7.3

1.0

0.2

0.5

will

2.3

2.5

with

■•••:

1.4

1.1.

1.3

2.1

2.2

i'/

C.3

0.5

5.5

Four-Fejnily Homes

—

——

5.4-

•

1.4

1.5

market

than

occasion in the past.

one

0.2
1.8

0.2

—0.3

—-0.2

—0.1

0.3

0.8

1.4

1.7

2.0

1.9

1.5

4.2

0.4'

/' U. S. Private Cap. Outflow/

0.9 " —0.2

1.1

2.5

3.7

x4-l

y —5.9

0.4

0.3

0.4

4.1

■5.3

5.0

4.8

.1.5

1.8

1.7

1.5

0.2
2.3

3.7

Possibility

—1.7

1.6

0.5

2^5

0.1

0.3

0.8

0.5

0.4

0.3

0.8

0.2

0.4

—0.1

0.4

0.2

0.7

0.6

0.8

0.3

1.1

0.8

0.7

9.0

27.8

10.6

25.3.

8.2

28.4

,19.8

31.8

this real longer-term bond talk, comes the opinions
bond with a maturity of 10 years to 15 years is going to

As against

0.5

•

work, and

put to

the moment.

0.2

-■

that

part of the new money raising of the Treasury. It is being
pointed out by certain money market specialists that there are not
a few institutional buyers with funds which can be put to work in

Excoffier

Stock Exchanges. The Quincey
organization was founded in 1887.

can

Mr. Mohan

was

formerly

Vice-

President of The First Boston Cor¬

poration,

having

associated
V

been

with that firm for 22 years.
Excoffier's

Mr.

admission

partnership coincides with his
anniversary with Chas. E.
Quincey & Co., where in his many
years of association he held man¬
agerial and administrative posts,
including successively, positions as
assistant
cashier,
cashier and
assistant office manager.;])
38th

William Lucas Joins

Phelps, Fenn & Go.
Phelps, Fenn & Co., dealers in
state and municipal bonds, Hous¬

having a maturity longer than the
longest of the Treasury bills. As against the prospective shortterm issue, there is more than a passing amount of talk about a real
long-term l?ond being the other part of the package deal. It is in¬
dicated that a 30-year maturity with a 4% coupon at a discount
price of say 98, seems to have a good deal of the spotlight at

4.8

5.0

<1.2
—0.2

.4.2

5.5

0.4

—0.1

—•

;'/

4.4

0.8

•

Commercial

limited amounts, that

intermediate-term Government bond, in

ing Authority securities, and rev¬
enue
and corporate
bonds, an¬
nounced that William E. Lucas,
has

joined their organization. He
523

will make his headquarters at

Union Commerce Building, Cleve¬

land, Ohio. Mr. Lucas was for¬
merly a partner in Baxter &
Company.

H. E. Hoffman Partner
H.

Hoffman,

William

York City, has ad¬
mitted John J. Delaney to part¬
nership.

Street,

New

Mitchum, Jones Branch

Estimates or forecasts.

will not be attracted to a Treasury

individuals, unincorporated businesses, non-profit institu:'-/*/tions, investment companies, fraternal, benefit associations, etc.

of 12 to

t Residual—represents

$ Excludes

tl Excludes

changes

and

§ Excludes- stats

Federal Government and agency

direct investments,

holdings.

and other state and local issues,

local holdings of their own

;

President

Chicago Analysts
Forum on Drug Industry
111.

CHICAGO,

—

The Invest¬

Analysts Society of Chicago
on
January
15
will /hold
a
forum
at the Midland Hotel
on

ment

Product

"The

Story

Drugs in the Post-War

Ethical

Era." Pro¬

15 years.
the

a.m.

President,
poration.

Sobering Cor¬

thereafter.

2:00

p.m.

Edwards

and

other

& Sons,

Stock Ex¬

On Jan.

principal

ex¬

Drugs;

Carney, Vice-Pres¬

ident
and

development,
control., Eli Lilly and Com¬
of

research,

Charles
New

1 Ralph Iriarte

became

King & Co., 61 Broadway,
City, members of the

York

American Stock Exchange.

With Van Strum & Towne

.(Adams Room):
Afternoon

3^15 p.m.
E.

Session:

2:15

"Antibiotic Drugs," John
Pfizer

McKeen^ President, Chas.

Van

Strum

vestment

Towne,

counselors,

Inc.,

have

Century

annual

Digitized

that George H.

Edward

and

Chairman

office
the

920

manage¬

Ralph G. Dalton.

Specialists in

'■

U. S. GOVERNMENT
and

Werle,

Securities

of the Board.

Now

Corporation

(Special to The Financial Chronicle)

dinner of the New

ZANESVILLE, Ohio —Hay In¬
Quarter
vestment Company, Incorporated
will be held Thurs¬
is continuing the investment busi¬
day, Jan. 8, in the Grand Ball¬
ness of The Hay Investment Com¬
room
of the Biltmore Hotel.
pany, First National Bank Build¬
The Club has a membership of
Officers are Edward A. Hay,
444 employes who have had 25 ing.
President and Treasurer, and P. F.
or more, years of service with the
Hay,
Secretary.
Exchange. Some 385 are still ac¬
tive while 59 have retired.
The
Forms N. E. Inv. Co.
Exchange has a total of about

Exchange's

Stock

in¬
an¬

1,300 employees.
Average
members

age

active

Club

and

aver¬

years,

length of service is 32 years.
& Co., Inc.
It is expected that 300 active
and Gordon Peter Reed have be¬
and retired members will attend
Second Afternoon Session: 3:30 to
come associated with the firm in
the dinner, including 15 women.
4:30
p.m.
"Tranquilizers, Anti¬
the New York office, 85 Broad
Guests of honor will be Keith
convulsants, Hvpnotics, and Sed¬
Funston,
President of the Exatives,"
Charles J
Kern, Vice- Street!
for
FRASER
nounced

under

federal agency

Club Dinner
York

pany.

First

branch

Century Club

Anti¬ a general partner and Herbert
Vaccines," Hipkins a limited partner of

Dr. Thomas P.

Street

the new
years is

change,

NYSE Quarter

changes.

"Hematinics; Cardiovascular

hypertensive

but it will probably consist of issues not used in
venture. A note with a maturity of less than five

of the Graybar Building
A.

members of New York

change

State

been

have

Charles King Partners

12:00

issues in this deal, since the Federal Reserve Banks own
nearly $6,000,000,000 of the securities coming due at that time.
What the rest of the offering will consist of is open to conjecture

being talked about.

opened

Government is

money

Murphy and Sal P.
appointed
co-

Edward

raising operation of the

key

now,

Edwards Co, Managers

Calif.—

BARBARA,

Mitchum, Jones & Templeton has

Refunding

there will be the February refunding which will
most likely involve another package deal.
It is expected that a
certificate with a maturity of about one year will be one of the

The

(Ballroom//
Luncheon:

Reception.

$6.00 per person

Comes the February

After the new money

(mem¬
guests) until Jan. 12 and

bers and

Then

SANTA

ment of

maturity.

real long-term

out of the way,

Tariff is $5.00 per person

office

Session: 10:30; to 11:30
"Steroid Drugs," Francis C.

Brown,

Treat

Dutch

hand, there are state

other

devel¬

and

(Ballroom):

managers

(Adams Room):
Morning

research

opment. Wveth Laboratories,

Lalli

scheduled is as follows:

gram

issue with a maturity in excess

pension funds that must
confine their purchases entirely to Government bonds and, ac¬
cording to advices, they will be interested in a Treasury bond with
On

2%s

-■■

0.7

Total--

the

Reports are being circulated to the effect that the Treasury
make a split offering in the new money raising operation,
a
short-term issue to appeal to those investors that have

0.7
—0.8

/ 2.5

—0.5

Consumers

be the consensus among most money
Treasury will be able to maintain better

Real Long-Term Issue

2.3

;*'4.9

Farm Production Loans

*4-

4.8

—,

M.o

4.8

Financial

been

.0.9

3.3

•

1.2

—7';7.'-

1,3

-■ ■

June

?/■' Multi-family & Commeri
,

•

a—:

Farm

;

funds

New Btockr Issues—

One* to

<■»

4.2

Mortgages:

■3.5

Funds-—-—

Other Short-Term
Net

4.5

last

flotation

balance
and greater control over the bond market, and get the longer-term
issues it might offer into the hands of ultimate investors better,
by not offering securities with gimmicks attached to them.
To
be sure, the speculator has a place in the bond market as well as
the equity market, but there should not be excesses, as there have

/..'>

and Payables--—

Long-Term

'.
*

0.2

1.5

—9.8

25.3, '

10.6 ?

/ 0.3

Business.Corporations:

3.3'
,0.1

/: 0.3:
—

•I't.V

—9.7

Agencies*——
Local Govern'ts§

Federal

27.8

9.0,

0.7

0.3

the

f.L!/ Y- ;

Government*

Federal

";'v

■

Total

0.3

surrounded

that

It appears to
/•- followers that the

,1.1

2.0

7.5

1.2

/ 5.5 /

••

—4.2

•

./■

0.7'

obligations to get in the hands of speculators to any large extent
since there is no desire to have a reoccurrence of the unfortunate
situation

Broad Street,

bers of the New York and Ameri¬

namely commercial banks, the savings banks, the savings and loan
associations and the insurance companies have been concluded,
and this has resulted in opinions that a longer-term obligation
will be offered by the Government in its new money raising
venture.
The beliefs are strong that the new issue or issues which
will be introduced to the market by the Treasury will be pretty
much along orthodox lines, in spite of "open month" rumors to
the effect that option call dates, and conversion privilege, would
be among the features of the new money raising obligations.
It is
indicated that the Treasury does not want the new money raising

of 1965.

7 0.2

0.1

*«

1.4
0.8

0.5
.

V 4:0 y

■i

1.3

0.5
1.0

0j3
-0&
5.5

'—f.9"

i.'wl'S":-

2,6

1.1

3.3

0:6.
'-.0.6
5:4' V "2 .6

1.2

Otherst/-l_~

Individuals &

0.3

7 1.5

-T-O.6

—1.0

Banks—

0.8
'

5.1

—2.4:

Corporations—-—

C
;

.0.4

—D.9

CuhunerciaV Banks

,0.9
»

0.2

,3.0

2.7.

3.2

2.3
1.3

0:2

/ 0.1

hall'4

half4

"0.9

1.2

•

halt*

:/2.7

2.9,

3.1.

;

2nd

1st

2nd

•

half

/half

9.4

Casualty Companies

Fire &

2.3

1.2. "/v 1.2
0;4

Funcls_i

Cernovate Pension

1st;

•

2.4
0.9 " '1.0

2.6

Banks'—-

Savings

Mutual

2.9

.'2nd?

half

half /

half.

Companies-.

Insurance

Life

■/>//

v-llst

-1959

r-19 58

—

.2ml

1st

John

New York
City, specialists in United States
Government securities, and mem¬
Co.,

the amount

aboq£ inflation, and have implied that the * monetary expansion
/
they permitted during 1957-58 is suffiOieht to support near-term
economic growth."/// V/iV/)//:/,/,- //;//ri,/;..■//
"if business improves to tne exfeii? forecast, any change inmonetary policy is likely to be jrntftertairection Of tightness,which / /
could result in money and capital market congestion."

;

Money Issue Details Out Today

The way in

Martin, can be 3

what these will be," the study- .concludes. "However, the
/
authorities have made it clear that 'they dre still deeply troubled/

/sure

Philip V. Mohan

New

•

"Nobody, probably not even Board • Chairman

closely also by the money market to see whether there will be
any
changes in policy now that the year-end demands have
been met.
'-■'/'/ //;/ / '/■■ //./•" //'

Garfield

age

STAMFORD, Conn.—John J. P.
Nocerino is engaging in a
ties

business

from

securi¬

offices at

520

Hope Street under the firm name
of

New

Mr.

Ira

England

Nocerino

was

Haupt & Co.

Investment

Co.

formerly with

Aubrey G. Lanston
& Co.
INCORPORATED

20 BROAD STREET

NEW YORK

☆

CHICAGO

☆

BOSTON

The Commercial and Financial Chronicle

(123)

Continued

from

from, first

competition, usually in the
of stability, is largely the
legacy of the Great Depression of

page

name

Some Reflections

Tour

on a

the author of "The Af¬
fluent Society" — with the effi¬
cient
matching
of limited
re¬
sources
against unlimited needs.
to

Prof.

Allyn Young once defined
goal of economics as the

the clear

welfare

material

mankind.

Next to the building of a just and
lasting peace, to which this goal
is
inextricably linked, govern¬
ments today are primarily con¬
cerned
with the wide range of
issues surrounding the matter of

Hence, trained per¬
assist policy
makers in reading the economic
signs of the times and in gauging
the most efficacious way for pub¬
daily bread.
sonnel

lic

who

policy

can

the intricate

touch

web of economic stimulus and re¬

opportunity
key and growing role.
have

sponse

play

Professional
of

can

help

great

first

makers

and

men

women

policy

economic situation
get" out the facts from the

describing
•—to

world

rationalization,

rumor,

gossip, opinion, and prejudice in
which they are often immersed.
This process is essential to the
task of defining the problem and
of asking the right
it.

the economist

statistics

into

ventures

questions about

that

here

joins

Next, the economist can under¬
particular prob¬

take to relate the

hand

whole

the

eco¬

nomic scheme of things. This job
is most essential
narrow

lated

interests

the

time when

well

are

articu¬

interest
languishes from the simple fact
that it is everybody's—hence no¬
and

general

body's business.
Further, the economist can assist

policy makers in devising a range
of alternative courses of action to
meet

particular situations.
Finally, the economist can pro¬
vide guidance as to the possible
consequences of going down these
various paths to a solution. All
be

carried out

this

must

full

realization

economic

with

the

how fluid

situation

is, how great
uncertainty prevails. It must

be carried out, too, with a candid
facing up to the built-in biases of
the investigator, a factor that can
be guarded against to some extent
by emphasizing statistics in the
analysis.

Having performed these
faithfully and well, an

omist will
what

soon

become

he may have

four
econ¬

aware

suspected but
own experi¬

knew from his

never

economic considerations

ence:

are

not the

only, nor always the most
important, grounds for reaching
decisions on public policv. Truth

is, indeed, many-sided. Situations
in our society are sometimes not
to be solved by being merely logi¬
cal, as a venerable teacher once
reminded
factors
acter

some

The human

us.

personality and

confidence,

and

relevant.

are

democracy

of getting consent from

and

conciliating

of various groups.

such
for
of

char¬
course,

So, too, is the im¬

perative necessity in

af majority

thej interests

It is to factors

these that

must

look

explanation, for example,

failure

the

government

are

equal, economic analysis may be
determinative. In still other cases

analysis

economic

War

II.

The

ponents clearly and at once on the
defensive. A sound analysis makes

can

demonstrate how he

It makes

the facts.

overcome

tougher, too, for the
high priests of incantationah eco¬
nomics with its liturgical phrases
like "tight money", "90%
price
supports", "trickle down theory",
the

going

American

"the

and

Americans".

market
the

Moreover,

for
con¬

the

most

likely

indicated

course

by economic Tact and logic, should
he feel impelled to depart from
it
for reasons that to him
are
aid

policy
makers is being provided today in
our
nation's capital and its great
value is recognized.
To be sure
there are so-called practical men
who cast a gimlet eye toward the
man
with the brie f case, the
kind

This

graphs, the polysyllable language
Beta

Phi

the

Kappa

key.

may be suspicious of
who hasn't carried a pre¬
cinct or met a payroll. And, let's,
face it: they have had reason on
occasion for their suspicion. They
have found professional opinion
sometimes managing to come up
with a difficulty for every solu¬
tion.
But
such
suspicions
are
These

men

anyone

rapidly disappearing. Administra¬
tors and legislators are faced with
problems of such intricacy and
complexity that they need pro¬
fessional help—and they earnestly

Economists

Return

Favor

Competent, effective profession¬
als are members of virtually every
executive management and legis¬
lative team in Washington today.
This is

certainly true of The Hill
w here
professional staffing of
Congressional Commit t e e has
steadily gained ground, as well as
in the Executive departments and

independent
White

House

of Economic

agencies.
Office,

the

Advisers

the

Council

operates at

high level of effectiveness un¬
der its present chairman. Earlier
the Council was restored by the
magnificent labors of the new
president-elect of the American
Economic Association following its
demise in early .1953 as the result
of having apparently lost the con¬
fidence of Congress the year be¬
fore.

For the first time, the Pres¬

ident's

staff

personal

has

included

recent

designated
experi¬
ment, set up to aid the Chief Ex¬
ecutive mainly in an operational
way, has perhaps turned out well
e n ough
to merit continuance,
though ^obviously this is a matter
for others and history to judge.
It Was especially gratifying to me
that when a vacancy developed in
this position last fall, President
years

economic

assistant.

Eisenhower
with

This

proceeded

fill

able and experienced pro¬
fessional economist.
an

competition

the

economists
But

ablest

not

agricultural

espouse.

economist who has ob¬

jectively appraised the facts, re¬
lated them to the whole, suggested
remedies and their likely conse¬

in the light of his best
has rendered an indis¬
pensable sendee. In many cases
quences

judgment

the facts and statistics may point

general blight, there has grown
a disposition to overcompensate for such adjustments.
This
up

is in evidence around

impulse

economic

the

most

horizon—

agriculture,
industry, labor, fi¬
It springs from a desire for
s e c u r i t y,
for immunity from

nance.

markets

badly needed emphasis in

ernment

gov¬

policy.

changing world. I might add, in
a
theological vein—and at some

economics

often seems to
theology—that this im¬
pulse is intelligible, perhaps, as an
point

manifestation

economic

Dr.

Martin Luther's doctrine of orig¬

which

manifestation

sin—a

inal

monopolist
(or monopsonist) in each of us.
By
overindulging
these atti¬

finds something of the

tudes and fears we may well have

achieved

the

various

the

for

run

something

short

economic

But these ad¬
vantages have been bought at a
high price for the economy as a
whole—a growing rigidity in
structure and a tendency to ris¬
ing costs and, consequently, of
prices. One of the key factors re¬
sponsible for the long-run infla¬
tionary threat we face today is
surely to be found in this legacy
from the days of the Great De¬
pression.
The
experience of the three
concerned.

groups

resiliency of
its
capacity

and in

our economy

to correct
adjustments

make

and

excesses

without

grinding down to the bottom of
the pit of depression. Government
policy with respect to the busi¬
ness
cycle must, it seems to me,
be based on this experience.
It
must be geared

to minimizing, but
not
abolishing,
the
fluctuation
around the growth line. It cannot,
in a free society with decentral¬
ized
economic
decision-making,
be based
boom.

For

theory of perpetual

the

government

deeper and deeper into the busi¬
of
building
competition

ness

shelters

basis

detailed degree

some

public

policy have
reasonably satisfactory.
should, of course, recognize

the assertion

still

made

by some
that the outcome might have been
as
good or even better in the
absence of any conscious govern¬
ment
policy actions. I donot

that

view,

though

even

were—and

what

must

the

private

forces

great

the

themselves gen¬
been
soundly ob¬

economy

has

erate.

that

served

policies
about

be—marginal to

not

government

themselves

recovery

but

economy

that

kind of

our

rather

bring

the

private reaction to public policies
that does

fails to do

so—or

so.

Policy

got

underway

last autumn. The contraction
about

the

result

the

decline

early

came

the

orders.

effect

policy in

slowdown

The

restrictive

some

monetary

of the

areas

time.

These

events

environment

econ¬
same

interacted

that

heavy psychological blows by
Sputnik in early October, by the

stock

market

month
third

and

illness

breaks

the

late

Administration

later

November.

policy

respect to the recession
ceived and carried out
of

that

President's

analysis
of

the

apt

was

which

perhaps

the

probable
set

of World
A

downturn
one,

previously

type

twice

encountered

since

the

end

War II.

second

—

was

Reserve

System in late
October, 1957. This development
was
to prove very effective in
helping to promote recovery.

uled

omies in the interest of all.

Elihu

for

the

50%

jump

hall of 1958 compared

was

marked

This

contrast

1953-54

fense
were

sched¬

was

previous six months.

situation

than

in the first

period when de¬
expenditures
declining sharply fol¬

orders

both

lowing

the

and

end

the

Korean

Hoot is reported to have remarked

War.

that

fense ordering did not connote

Congressmen feel

organ¬

ized

minority will punish, but an
organized majority will not pro¬
tect.

Economists, it

seems to me,

have

some
responsibility to generate
support for people in government

have

say

groups

"No" to narrow
which seek
to

government an engine for
the attainment of their ends.
In

past, because of

the lack

such support, government on this
front has resisted too little and

yielded too much.
Ill

general observation is
this: anti-recession policy must be

been

ing situation.

third

flexible and geared to each evolv¬

World

War

While such accelerated de¬

since

the

end

economy

immediate

expenditure increase
of
corresponding
amount,
the
sharp increase in contract letting

needs of

workers who had

benefits

under

exhausted their
state

take

to help

programs.

and feasi¬

as were necessary

clear

made

was

further

such

the

President in his policy statements
of February 12 and March 8 and
occasions.

several other

Steps

that offered little chance of effec¬
tive

short-run

assistance

the

setting up a
huge
emergency
public
works
program — were resisted by the
such

—

President.
The

principal

lated to
This

uncertainty

re¬

anti-recession tax cut.

possibility

eliminated by
the President lhte in May as both
unnecessary
and undesirable, a
was

which was joined in by
leadership of both parties in
the Congress.
Failure to employ the tax cut
decision

the

either

device,

taken

measures

lieu
in

other

addition to

them, has perhaps been the aspect
of
the
recent
experience most
often discussed

by economists and

It should

others.

that

recalled

was

recession
As

tax

cut

late

anti¬

May.
of fact, I received a
during that period from a
measure

matter

letter

distinguished
and
conscientious
expert at one of our great
universities
stating that, if the

fiscal

Administration did not endorse

thought of

hence

the

category

same

failure
generation

temporary tax cut, such
would be

President Hoover's failure to take

advice

the

thousand

econ¬

tariff

the Smoot-Hawley
legislation in 1930.

History

prove

may

corre¬

spondent right. I rather doubt it.
The

incident, however, is worthy
some retrospective comment.

Tax

Policy in Retrospection

First, it should be clear that the
question

never one

was

anti-recession

eral

tax

gen¬

cut

additional expenditure to alleviate

hardship

the short

the

revised
year

$5.3

Some

billion

estimates

tributed

may

demand

billion

increase

expenditures
figures

ary

increase

run.

over

fiscal

1959

the Janu¬

be properly

conscious

at¬

anti-reces¬

sion effort. More than half of that

billion

§2

housing

and

accounted
most

for

the

by
rest

supplemental

clearly expan¬
well have
significant factors
slowing down the net liquidation

unemployment
benefits and a small expansion of
public works and public assist¬
ance. It is my own judgment that
only a small part of those added
outlays at best would have been
deterred by a tax cut. As it
was,

of inventories.

onlv

was

destined

for

sionary /effect. It
been

one

ground

may

of the

fourth

factor

the

anti-recession

back¬

policy

the operation of the so-called
built-in stabilizers, such as un¬
was

employment insurance, which
would help sustain incomes in the
face
of
falling production and
employment. Supplementing these
were
certain budgeted increases
for compensation of Federal per¬
sonnel

times

Congress

measure

omists to veto

the policy
initiated by the

factor

easing credit

Federal

the

special
meet
eligible unemployed

favor

moderate

proposed

temporary

proved

the

that

was

be done quickly by accelerating
existing work on already author¬
ized and
needed programs and
projects.
Major among those
efforts was early and continuing
support for housing which gave
the economy a real boost in the
late
spring and summer. In a
period of eight months the rate of
housing starts increased from a
10-year low to an all-time high.
Early
in March
the
President

the basis

business activity

then,

ernment demand where that could

quite a preponderance
professional economic opinion

Report of January 1958. The esti¬
correct,

panic buttons. Rather he
on
increasing gov¬

concentrated

there

down in the President's Economic

mate

the

the impact on it of certain factors,
and prospective. First was
course

for

con¬

actual
the

The President did not reach

year.

with

was

judgments about the future and

Political organization for pro¬
moting Federal activity to benefit
special groups is very efficient.
There is apparently no comparable
method
available
of
mobilizing
political support for resisting such
effort or imposing Federal econ¬

Three

dealt

was

three

procurement contracts

dampening

became evident at the

omy

exports beginning

1957,

defense

tion

economy

variety
of causes including the cessation
of expansion in capital spending
by industry as a squeeze on profits
developed front excess capacity,
as

light of these background

selective one, fit for the situa¬
as
it
appeared early
this

ble

might be useful to consider
briefly some aspects of govern¬
ment policy in
the most recent
which

In the

factors the Administration anti¬
recession program was designed as

steps

downturn

Thursday, January 8, 1959

Readiness

Examines Recent Government

indeed.

the

do believe that government efforts

A third factor was related to a
is constantly being
do—usually on the major exogenous event.. For rea¬
someone's
economic sons wholly unrelated to business
is a dubious policy, cycle policy, the placing of defense

the pendulum has swung too far
toward public interference in mar¬
kets of various kinds. There has

growing disposition to re¬
gard free markets as strictly fairweather phenomena. This retreat

Selective, Not Panic Judgment

analysis

did

pressured

It is my clear impression that in
both economic analysis and
policy,

change, elusive and impossible as
such immunity is in our rapidly

make

second

general comment I
would like to make is this: More

which

adjust¬

interest

servation

might be made about
persistence of farm policies

small

parts of the economy
destined to spread and cause

were

who

II
Too Much Public Interference

that

postwar recessions should give us
some gounds for faith in the basic

it.

seek

than

ob¬

leading la¬
bor spokesman recently pointed
out, is not to interfere to redress
every individual instance of eco¬
nomic disequilibrium so long as
no general pattern of unbalance
emerges.
Because of the depres¬

varied

knowledge, 1953-54 and 1957-58,
can
fairly be said that results

become

overriding.

which I have

tions.

ments

the

same

been

economic system, as a

re¬

public
policy.
Speaking of the two instances of

rationalization for these interven¬
One of the essentials oi our free

and

On each occasion

causes

response

achieved

sion-born fear

sion

the

ciples of free markets. More than
that, they provided a respectable

ubiquitous

much harder for the
fellow whose profes¬

calamitous

one

recession

initiating

life just that

half, not less than half, of the cost
of World

unmask

can

and put its pro¬

scheme

dubious

accept the advice of economists to
finance from taxation

where other
more
or
less

The Non-Economic Influences

tasks

that
to speak, makes

Those

War

World

the

compromise
after another with the basic prin¬

In some cases,

considerations

and

forces with the statistician.

lem

itself.

direction

one

led.

events

scientious policy maker can know

in accurately

all

Clearly in
the decision,
so

the

and

'forties.

the

Of Duty in Washiagton
Hies

'thirties

the

undergone

covery sequence.

programs

has

struction.

well

such

for certain

highway

going
con¬

the

opposition

President's

stopped'

veto

$5.5
billion of additional future spend¬
ing from being enacted into law
in

the

name

some

anti-recession,

policy.
Second,

motives

reduction bill

were

for
so

tax

diverse

foreshadow the gravest kind of
in Congress, as
many
of its leaders
repeatedly pointed
to

difficulties

out to the President and to the
Secretary of the Treasury. It was
painfully evident that, unlike the

situation in this field of medicine.

Volume

189

Number

5810

The Commercial and Financial Chronicle

$200 Million N. Y. Stale Power Bonds Marketed

The Commercial and Financial Chronicle

(130)

Continued

from first

stability of our dollar is not balanced as long as we are
able to enjoy a suitable standard
our budget difficulties
has accounted in part for the de¬ of living and our taxes are not
The
nation
cline in our gold stock of some increased.
faces an
$2.2 billion since February 1958. ultimate potential danger in the
Whereas formerly American dol¬ vast
power
of the
giant
labor
lars were fully as acceptable as unions. And even with the smaller
the

over

page

because

The 1959 Economic and

gold—they were usually preferred unions there is a great void in
because of convenience—our dol¬ management - labor
relationships
housing starts should lars have become less acceptable when a union of a few hundred
national
tensions, an increasing total about 1,200,000 units com¬ because of apprehension regarding rpembers has the power to ••'•close
number of strikes, a continuation pared with 1,160,00 in 1958. High¬ their
future
buying power.
A dpwn publication of nine/ news¬
of the outflow of gold and possi¬ way expenditures should approxi¬
continuation of gold exports for papers in New York City' to the
mate
$6.8 billion, an increase of this reason in 1959 seems likely. great inconvenience and "
bly a further deterioration in the
annoy¬
about $1 billion or 17% over 1958.
export-import balance.
However, with some $20.6 billion ance of many millions of readers.
There is every indication that Increased
spending for schools, gold—more than one-half the freeThe Foreign Scene
the nation's Gross National Prod¬ public and private utilities, mili¬ world's
'
;
monetary gold stock—and
uct will establish a new high by tary facilities, hospitals and public some
On the' foreign scene' we must
$8 billion in excess of statu¬
a wide margin in 1959.
As against works is to be expected. However, tory requirements, there is still continue to live under the threat
a figure of $440.3 billion for
1957 expenditures for commercial ample margin of safety in
our of a major war — probably for
and an estimated total of approxi¬ buildings are likely to be below
currency
backing.
Nevertheless, years to come. Political relations
the
1958
levels
while
industrial
mately $437 billion for 1958, the
continuation of gold
outflow at with the Soviet Union will dodbttotal for this year should amount construction, because of the na¬ the 1958 rate of close to
10% of less continue the pattern of .great
to at least $460 billion and possi¬ tion's excess productive capacity, our total
monetary stock would be tension at times, followed by pe¬
will show little improvement.
bly considerably more.
riods of relaxation.
cause for considerable concern.
It is not now
Volume output of chemicals and
Notwithstanding the business
possible to be certain how : the
Labor Demands
recession, disposable personal in¬ plastics in 1958 should be 7-8%
controversy over Berlin will' be
come amounted to roughly $311.5
greater than in 1958. Inventories
Labor demands usually vary in settled. But we do not believe that
billion in 1958 as contrasted with in chemicals-plastics are not cur¬ direct ratio with the state of the it will lead t® all-out:
war;
:
-*
$305.1 billion in
the preceding rently regarded as excessive so economy.
Such demands tend to
Developments
in
the
Middle
year. A new high of $325 billion increased demand should be re¬ increase
when
business
is
im¬
East during 1959 are unpredietor more should be reached in 1959.
flected in an immediate boost in
proving and to decline when busi¬ able. At the moment the trend in
Similarly, total consumer spend¬ production. While 1959 should be ness is receding. Since the bottom
Iraq
is
strongly
Communistic,
ing should reach at least $305 bil¬ a record year for the industry of the recession in April,
em¬ while there are some indications
lion compared
with about $291 from the standpoint of production, ployment has been increasing and that
Nasser may be interested in
billion in 1958 and $284.4 billion it is doubtful that record profits
unemployment decreasing.
This
improving his relations with, the
in 1957. One of the notable char¬ will be realized although earnings trend should continue in 1959 and
the

likelihood

inter¬

severe

these

consumer

tinued

spending which

despite

economy.

high in

con¬

the

Indeed, disposable

per¬

income

sonal

setbacks

has

reached

new

Industrial Recovery

The

Federal

Reserve

clined
to

seasonaly

from

the

145

Board

April

de¬

August,

low

has

and

adjusted,

recession

since

1957
last

126

industries.

increased

higher.

and

will

probably

;

The

major industries'are ex¬
pected to record considerable im¬
provement

with

1958.

1959

compared

believe

that

steel

output in 1959 will amount to at
least 105 million tons as
compared
with about 85 million tons a
year
earlier. Aluminum production
rise

expected

the

automobile

dustry which experienced

disappointing

year

in¬

highly

in 1958.

Ship¬

ments of passenger cars
mated at 5,500,000 units

compared
With 4,300,000 cars in 1958. With
probable
automobile
production
up

20-25%

over

1958, this industry
important contribu¬
tion to the improved
economy.

\frill make
In

the

petroleum industry do¬
mestic demand in 1959 should in¬
from

crease

1958.

4%%

This compares with

over

esti¬

mated 2% increase in 1958 which
was

more than offset
by a sharp
decline in exports. Total demand
—rdomestic plus exports — should

increase
pared
1.3%

about

with
now

rate of

decline

1959

com¬

about

expected for 1958.

The

new

duction

supply-domestic pro¬
plus imports — should

show about

1958.

Demand

excluding

increment

the

free

United

over

world

States

expected to record an
average
nual
increase
through 1965

and

consumption

tially in balance.
on

are

essen¬

now

With consumer
high and rising

months

several

period

will

inventory

witness

accumula¬

the part of manufacturers,
wholesalers and retailers. As
tion

7%,

1958,

inventory accumulation

might well
in

aggregate $2.5 billion

1959.
prices

likely

are

the

cost

living index.

442

million,

estimated

6.0%

1958

the

over

expenditures

$5,158 million but still down from
$5,797 million in 1957.
'

expected

penditures
will
of

reach

$50

for
a

billion

that

new

total

high in

ex¬

construction

year.

excess

Con¬

struction outlays in 1958
aggre¬
gated about $48.8 billion, a record

steel

higher steel

prices.
com¬

costs

would

competitive
In

settlement

con¬

event,

any

will

create

target for other unions to shoot

at.

nations

Notwithstanding
most

stock

common

at all-time

the

levels,

of the

common

York

Stock

fact

willing to
No

lenis.

stocks

The inauguration
pean

While

the

1959

are

certain

business

outlook

for

generally favorable there
factors

which

are

The

calibre

stocks

found

portant

psychology which seems to have
crept into the thinking of individ¬
uals

wonder

price

all

walks

when

spiral

and

will

life.

People

how the wage-

end.

They see
price inflation, caused by
steadily rising production costs, is
that

creating consumer reluctance to
buy various items of merchandise.
They also see a growing number
of foreign

bought

for

American

products which
less

money

counterpart.

can

than the
Price in¬

flation is resulting in lost markets
at home as well as abroad.
Our

export

markets

are

suffering

and

Then there is

concern

some

$12

though the President

about

the

cently are, with some notable ex¬
ceptions, second or third grade
stocks.

Historically,

Al¬

balanced

were

realized.

Moreover,

many

close followers of the
economy are
doubtful that a balanced Federal

budget will be realized for

many

years to come.

Concern

danger point

reached when

ages

exceeds

among

the

also

are

levels—in

that

at historically

the

yield
from

high

selection

ket

great

importance

common stocks for mar¬

appreciation.

Irrespective

market levels sound

common

stock

are
values
always available to
those able to recognize them. But
while so many stocks appear to

In conclusion,

bility

foreign nations

from

X-.

the

Prices

high level of
long-term
U.
S.

1959

regarding

lin

their

popularity.

lost

changing
front

the

left.

too

much

regain

living

are

world.

in
On

much

Japan's

the

home

continue to drift toward
We
if

don't
our

seem

national

prices for

psychology will
stocks

common

Should

cerned.

insofar

extremes

as,

are con-

ad¬

market

the

significantly from existing
possibility of a sharp •
subsequently
must
be:

vance

into

taken

consideration.

effect

verse

business

could

influenced

Should

stock

ac¬

prices continue to t
with their per-;

line

in
in

recent weeks,

investment

building

cordingly.
advance

Such

could have an ad-,
on
confidence, and •

sound
call >•
the i
.

would

procedure

buying

reserve

■

power.

and

loss
it

care

budget

■-I*

the

could

- re¬

Sakha¬
increase

the

with

speed

which

the

frontier there is being rolled back.
This

true

especially

the

greatly.
Other prospective 'Canadian section of the region.',
foreign markets for the: products Areas there which not long ago
named
above are
Australia., and. were thought of as too forbidding
countries
South

China
of

the

West

America.
as

future

large

Coast

also

consumer

tions become stabilized..:'
Businessmen
United States

ing Alaska
ket

the

for

that

the

grow¬

expanding

hundreds

into

* P

Continental

look To

can

civilized

for

View- fast

Alaska

mar¬

of 'products

installation

and

operation

settlement

localities and the spread

resource

farming

and stock raising to
help supply the local demands for
food.

Inventions

and

discoveries

of recent years permit of satisfac-

adjustments

tory

living conditions in the far north.
people there live in much
fashion

the

same

ern

tier of states. The old legend¬

ary

fast under the

added

for

north¬

our

Country is shrinking
increasing demands
by the growing
populations and
constantly
im¬
proving standards of living over
North

its

broad

resources

of the

areas

world.

Alaska

has

lagged behind its Canadian
neighbors in rate of growth. Our
portion of the North Country has

not had the push for development
back

that

the

Federal

and

ties to United States suppliers has

Provincial Governments of Canada

been

by" the 'vast
quantities of high grade materials

have

that

for

demonstrated

were

shipped

north

con¬

exerted

line.

With

toward

State

The

whole

North

Alaska

Country,

open
as

Alaska and the extreme northwest

of Canada

known

the
area

ing.

Any

Alaskans

land

ice good

belief

that

of perpetual snow and
only for Eskimos and fur

trappers is being rapidly dispelled

effort,

development. This,
by the

spearheaded

Government.

public

bring

lingering

look

can

per cent

of the

owned

now

domain.

area

the

by
of

During

it,the

last few years the government has
been doing a fair job of trying to
land

public

Government—most

the Pacific Coast, is now awaken¬

are

Ninety-nine
of

their side of the

greater

Alaska

drive will
new

Statehood

far

Federal
Can Develop With Help

•

to working and

In fact

cheap power will attract, and into

transportation facilities in¬

have

now

cities and towns, < a
constantly extending mileage of
railroads and highways into new
growing

of mining and mineral
processing plants, hydro-electric
systems and the industries that

portion

rapidly

carried

very

stability
dollar.
Sometime during
1960 long term U. S. Gov¬
should

•'.

of Manchuria and

Island

the

ernments

that this inflation

•

with
the
installation
of
Government bonds are selling at nection
substantially the lowest price for the pulp mills recently established
25
years.
The unpopularity of at Ketchikan and Sitka, Alaska, at
such securities reflects fear on the a cost of $60 million and $53 mil¬
part of institutional and private lion, respectively.

investors

broadening/of inflation : psychol-;
There is, however, a danger ]

Young Man, Go North"
due

readjustment takes

to the

prices,

recovery

boom

page

The value of such Alaska activi¬

contrast

reach

Alaska Beckons: "Go North

place.

stocks

could

1959 promises

of continued

year

the

ogy]

higher people attracted to this region by
the above enterprises.

considerably

of]

living

propor-;
Tiohs under the stimulus of further „

most European

very

prices before

which

market countries. The

high in price based on cluding railroads, highways and
ocean and river cargo carriers. We
past
measurements, public par¬
can
add to the list many of the
ticipation in the market is now so
facilities and supplies needed to
widespread and so generally en¬
thusiastic as to suggest the possi¬ shelter, clothe, and feed the new
be

standard; of

people throughout the world will

some

productive facilities

moves

Continued

vicinity of 20 to 1.

Judging by past benchmarks,
therefore, it is clear that careful

choosing

and ]

for relative value switches and

common

•

In the years to'

formance

the

got ]

we ever

reach
heights quite beyond
vjsioft of most of us today. ;

have

products, Tf arid/when
that country's political- affairs are
stocks.
Price-earnings ratios of
cleared
up and
economic •«condi¬
most popular common stock aver¬
bonds

the

come
:

Euro¬

While

have

equipment

1958.

development

will

genius

American

sources

customarily
earlier stages of a

Additionally, the new
highs that have been recorded re¬

an¬

This stems

billion.

active

most

ac¬

asking for
budget of $77 billion
for fiscal
1960, it would be sur¬
prising indeed if such an objective
a

the

outmoded

facilities of

export markets will be lost,

our

up¬

hand.

than

Government Bond

other sort of inflation.

inventive

are

bull market.

cordingly.

amount

lower

somewhat

disturbing.
Most im¬
perhaps is the inflation

American business.,

the New

that the end of the

movement

supersonic, space;
to many that the

there will be offsetting influences
created
by the expansion of

In certain respects the action of
the stock market in recent months
ward

this

along with the slow transportation

years

of the

dren will wonder how

market

common

that other.
prices they are

may seem

limits

50-50] split
some

about been reached. But the probabilities are that our granclchil-

both favorable and adverse effects

than 30%

age

reaction

presumably is doomed.

generation is ever free of
appear to
be major prob-,

levels,' the

that has prevailed for

per-

pay.

what

foreign interests.

that

averages

want,

demanding 60% or more of oil
profits involved in dealings with

The

will

moves

merchandise

produce

Middle Eastern nations may
follow Venezuela's -lead
in

recent

from

the

has been

Disturbing Outlook Factors

$5,-

ditions at the time.

suggests
Consumer

increase

rate

likelihood

well

Exchange are cur¬
against an over-all inventory liq¬
rently selling below their 1956-57
uidation
of
some
$5
billion in highs.

essentially from failure of the
approximately Federal Government to balance
U. S. Capital
the budget for the 1959 fiscal
year
expenditures of, the petroleum in¬
by the estimated staggering
dustry planned for 1959 total
about

double that

appear

But to what extent the steel

scale, the presumption is that the

is
an¬

gains

upon

esti¬

are

a
major
steel
important wage
probable with the

wage

for

not

develops,

increased

has
been
Production

moderately during the
year.
Although the Department
1,850,000 tons as of Agriculture predicts that food
contrasted 'to
1,560,000 tons in prices are expected to fall early
1958.
Roughly
comparable
in¬ in 1959, wage increases as the year
creases are
anticipated for copper, progresses will probably result in
lead and zinc..
higher prices for some commodi¬
Considerable improvement is ties and
upward readjustments in
should

Whether

strike

dependent

147

be ex¬
pected to become more aggressive.
The
steel
industry's three-year
contract expires at mid-year.
may

erally
late
in
1957
virtually completed.

ipate that for 1959 the index
least

vigorous

The

labor

panies might be obliged to absorb

spending

year

the

some

program
of inventory retrench¬
ment initiated by
industry gen¬

month. The average for the
will doubtless be 134 com¬
pared with 143 in 1957. We antic¬

every

for

outlook

outline

sketchy

foregoing

the

turing

combined index of industrial pro¬

duction,

The
of

major industries in 1959 is in gen¬
eral applicable to other manufac¬

since 1938.

every year

Inventory Accumulation

with

various

basis, much will depend upon the
ability of American industry to

•

along

The effects,

haps not be of great significance;
in
1959
and, on a longer term

better than

should]

definitely be of aid in promoting,
increased world trade.

should be considerably
in 1958.

into pounds ster¬

American dollars

ling and

acteristics of the economy in the
postwar era has been the high level

facilitate convertibility/

of their currency

to date. New

West.

Thursday, January 8, 1959

nations

Investment Outlook

into

are

opportunity
motion

of this

resources

great

However,:
eagerly awaiting the '

use.

get

into

development

that is afforded them

the

pro¬

activities

through

pro-

Volume

189

Number

5810

The Commercial and

Financial Chronicle

(131)

visions of the

Statehood

Enabling

The

authorizes

the

Act.
State

Act

select

103.400,000

free

over

attached

and

none

cover

Alaska

and

limit

Alaska's

along

acres

copper,

addition,

and

such

rrjles

gold

early

plans.

State

Minerals

nickel,

rower

The

power

large

grade limestone,

i>n+»ntiai
roiei
at

potentials

rivers

northern

far

tin
coking

mercury,

nonmetallics

coal and chemical

of pres¬
valuable

installation

aluminum

the

coast

production

freight.
freight

few

chiefly
dition.
we

high-priced

Seasonal and unbalanced

fully
homes

north

—

the

fall—are

this

for

con-

barging to

ocean

place to a large extent the
of

conventional

re-

use of

type will

improve the situation. Our Alaska
now use barge service
effectively. All ports on the

south coast of Alaska
at all seasons due

ice free

are

to the warming

from

Puget

Sound

Alaska

that

likely

development values
50 years.
Is it any
-Alaskans

have

next-

wonder

that

thrilled

are

•prospects

in. the

With

their

and

Better Job

direct

interest

not everyone is similarly im-

should

leases

far

better

the

cause

its

remote Federal

agencies.

grant the
with

State

such

im¬

sales

out of

lands

cattle

and

for

townsites, granting of

held

intact

com¬

herds

wilderness

management.of game

attractions for

big game
hunters, and the establishment of
as

'State

parks in highly scenic

stimulate the

areas

tourist trade.

is to establish

gram

broad

available

sources

•included
;It

takes

pro-

exploration,! inventory

and. evaluation of the

its

time

natural
land

land

and

re¬

grant

areas.

to do

.satisfactory job of this kind in

.^State which

bears,

the

constitute

mills,

readily accessi¬

timber

sawmills

for

the

features

Alaska

The

plans.
national Rail

ment

visitor,

possibilities for

smooth the

may

meet the economic prob-

the State is certain to

during

encounter

and

persons

support not only the two large

beneficial

whole

the

It would lessen

America.

mail

within

for high wages

our

de-

conspicuand high living

costs due in

large part to the prevailing seasonal employment. They

will

down when more yearjobs become available,

come

round

Taxes
The

iocal

Aisaka
„el.

$91P42

totaled
average

high.

als0

are

canita

tax

1957

compared

of $72 80 for the 48 states

I^efed popultLn

industry

and

exploration and production

°„

and

newsprint

mills

associated

wood
,

pulp

number of addi¬

est

sawmills and ply¬
Sustained yield for-

plants.

will

management

insure

permanency of these timber

commercial

confined

salmon,
1957

$75

using

have

The

and

supported

whose

amounted

now

halibut

long

industry

million.

fisheries,
to

output

value of

industry

over

can

greatly extended to include

varieties of fish. With the growing

attention
as

rich
come

being
of

source

given to the

seas

food

our

fishing grounds should
increasingly valuable.

be¬

protein

Gold and Alaska have
most synonymous

great

north

been

al¬

words since the

country

gold

rushes

at the turn of the century.
But
gold mining has been a depressed
industry
in
Alaska
in
recent
years

fixed
ever,

Hanns

associated

Kuehner

has

become

with

Laird, Bissell &
Meeds, 120 Broadway, New York
City, members of the New York

Thp

rtatP

new

wni

wluPrnmpnt

urged and doubtless will

pro-

vjde the necessary laws, agencies,
and
administrative personnel to
insure

planning
by experienced real-

common-sense

for growth

isiic

management'

resource

men

The nlanners must bp realistic hut

also be

men

of vision.

They must
mining operations,
industries, hydro-electric systems^

able

fields

see

grain,

mountain grazing

highways, railroads, and river

steamer routes; all of these where

country.

today

only

seem-

challenge to persons who desire to
participate
intensively
in
the
building of a community, a region
or a large new state.
In

building process we ceravoid the mistakes in
development that were

our

tainly

can

resource

made

the

western

some

formative
states

years

their

e r e

department of Gregory &
Sons and McManus & Walker and
prior
many

thereto was a partner for
years in Joyce, Keuhner &

Co.

Group Offers G. I.T.
Financial Debentures

of
de-

offering of $75,0O0,00Q
Financial Corp.
4%%

Public

missire to get ahead rapidly
takes that showed up in time and
in many instances are still

troublesome—50 to 75

nationwide

later,

years

economist and

virgin

r e

wonderful

Kuehne»

d representative. Mr.
Kuehner was formerly in the re-

expanse

It presents

stock Exchange as

Safcffuard Afiamst Boom and Bust

debentures"

due

Jan.

1979

being made today (Jan. 8) by a
underwriting group
headed bv Dillon, Read &

Co. Inc.,

We want our new state government to set up safeguards against
a Boom and Bust type of develop-

Kuhn> Loeb & Co_ and Lehman
Brothers. The debentures are
priced at 99%, to yield 4.70% to
maturity.
f
"
*

ment. The present great interest
everything Alaskan is almost

used to furnish additional work-

Proceeds from the sale will be

certaifi/ to a"™* unscrupulous ing funds for the corporation and

Promoters. These people will look its subsidiaries to be used in the
longingly at the 103,000,000 acres ordinary course of busmess to reof state grant ■ lands. They will be duce short-term borrowings inaware that the new state govern- curved for the purpose of purchas-

i-ThT^res are not subject
£bXes

= applied in the Terrify £

UiVcenturv

th^midd! »'f

geologists
100

tell

million

that

acres,

over

one-fourth of the entire land area,

geological formations favor-

have

able for oil.

Federal

that

w]jj

government

presently

states

lands

some

,•

anniien
ior
as
applied lor
as
companies aie
are
companies
are

Favorably
Scandinavia

Compares
•

Development Board to collect and

pertinent

SUpPiy

prospective

and which usually involved

Financial Corp. and its

...

information

investors;

also

there

opera-

toring.

The

company

and

its

as^ inducements for organizations in the United States
and

The North Country is no long-

insurance

Territorial laws which offer subsidiaries form one of the larga gen- special tax adjustments for speci- est installment sales financing

land for men only nor does
m
nhorLtav* litp
specialize
in characters like
^askans would not want the type "Dan McGrew
and
the
Lady
McGrew
and
the
that would be satisfied to do so.
That's Known as Lu." Family life,
A new approach to settlement homes and gardens, churches and
from that of our forefathers is schools are the order today.
The
.

tions and in textile and other fac-

are

Itf I'verir^nnot fied periods
...

With

I. T.

certain

Cihe revived to populate Alaska. In
on
,
•„
oil
lands. oiaiccu
Sixteen 4U:
f—n;;.,.
„,ui
now actively
enth's
age
families
need not and will
nuwdt
y
not
endure
such conditions and

gage^m
^rge scale oi! exploration there.

sobering problems ahead.
ine
Covered Wagon method of settle-

million

lonl
wuus.

benefits

wholly-owned subsidiaries are engaged principally in specialized
forms
of
installment
financing,

which

agency

bring lasting public

a a1^
'LUu wi °V15 + are sure to be given a welcoming
grant ol statehood but the snout- hand by Alaska officials. Already
ing is rapidly giving way to tne avaiiable is a Territorial Resource

the^ leases faToif explora" development of the western states,

grants
tion

which lit into a program that and after Jan. 1, 1974.

Development Planning

the last century.
the middle ol the

£3-

Canada,

two other whollyowned subsidiaries, C. I. T. also is
P^nncrl
in the life, accident, and
engaged in the life, accident, and
health insurance business on a
nationwide basis.
One of these
subsidiaries is Patriot Life Insurance Co., which was organized in

Through

reQuired- As most Alaskans see three - to - one ratio of men to 1953. The other, North American
the problem it calls for a well women has leveled off and bunk- Accident Insurance Co., was
elusion that Alaska in the same thought out and realistic program, houses,
saloons, poolrooms and acquired in September 1958. Its
high
latitude has equally good
resource planning both for the gaudy dance halls are no longer total assets approximate $40,000,potentials for supporting an immediate future and the long the principal features of the land- 000.
equally large
population
on
at Pul1- An interesting thought m scape.
\
In August 1958, C. I. T. Finanleast
a
comparable standard of connection
with this planning
Alaska residents largely repre- cial Corp. acquired^ownership of
living
In fact, our resources ap- project is this.
Doubtless never sen^ a cross section of the people Pjok^r X-Ray Corporation and
pear
to be more abundant than again, under the American flag, of the entire United States and affiliates
which are engaged in
those of Scandinavia. While it is
there be another opportunity we hope it will continue to have the manufacture and distribution
unlikelv that Alaska could reach
such as Alaska presents to obtain a typical American citizenry as its ol equipment and supplies for
such
a
Position lor many years an all-round and orderly regional population
grows
by migration, medical and industrial X-ray and
nro^ress might be expedited by a
development of a veritable em- Presently persons under 45 years isotonic applications. Total assets
broad opening to Alaska of Ori- P're: a"d the work can start prac- 0f age predominate which seems of this organization approximate
enta] markets with their hundreds
fl0m scratch.
fitting in a pioneer country under $22,500,000.
of
millions
of
prospective cusThe qualifying word practically process of development. .
pi«i
*
Wnmpn
A study of the economy of Nor-

The

largely

large

Laird, Bissell & Meeds

com-

susare sowars

the

industries.

California,

ern

region but

Man

Georgia to the vicinity tf South-

Inter-

and

Young

United States would extend from

endless

SfifrfEl ^r«dle

:pulp mills recently established in
tional

these

they
pin points in a virgin country that
if
superimposed on
continental

exists

Alaska has long been

formative

its

Additionally, an Alaskan oil
supply of large proportions could
years.

wood

Its estimated 100

billion board feet of virgin timber

the

seeing

unaware that
would represent only a few

ingly

develop-

Alaska

fa-

Hanns E. Kuehner With

munities, is apt to be

there

aqd Highway Commission has been established by
Congress to study these matters,
The airplane has, of course, revolutionized the transportation of

ous

others which

pulp

other

and

.using industries.
cam

casual

in-

workable

the

Greeley

North."

biles to population
is about
as
high and parking space in the
cities is just as scarce.
But the

Al-

leading to

cities of Puget Sound will be lead-

agriculture to supply

Petroleum is the resource above

Oil

source

Edmonton,

roads

areas

system

railroads are still essential to industrial development.

near

growth of the

The heavy Pacific Coast type of
lorgst along 800 miles of the south

ble

business,

local needs..

accessible

the North Country but roads and

demonstrates

way

west

Anchorage

area

far northern

all

the

which

thriving Matanuska Valley

farming

much

coast

game

moose,

The

Alaska)
Canadian road

400 miles

berta.

the

corn-

are

State.

new

have

the

following

'contributors

with

square

especially op¬
possibilities of
resources
as
early

about

the

586,000

covers

.'miles. Alaskans
timistic

money

such

mals

joins

ing

aniKodiak and grizzly

along

lems which

But, the first job facing our new
State

of the damned mountains.

Scenery

ulate Alaska's recreation

fishing permits in coastal
waters, blocking up of large areas
to

there be-

laying

ranches,

mercial

lands for the

any scenery

home¬

'and'gas lands, granting of mining
'claims,
licensing
hydro-electric
sites,

see

black topped

Texan with oil resources and additional highway
recently said he. connections through Canada to the

mountain
sheep,
goats and caribou are attractions
that
with
adequate facilities to
care for visitors will greatly stim-

portant things as the leasing of oil

steads

Alaska

couldn't

concerned

it.

pressed

job of resource development than

huge land

vol-

active

mountains,

fjords and glaciers." How-

canoes,

ever,

will1 be

on-the-ground
knowledge of conditions Alaskans
able

showplaee of the earth
abundance and magnifi-

its

cence

greater

equally

Hanns

become the

with

Should Do

connection with continental United

are

Horace

a«>

agree

changing
of

North

the

over

them?

now open to

be expected to come from any

can

and

prosperous

that

for

^dictum

"Go

such

For

can

fortable. Also the ratio of automo-

effect of the

Japan Cyrrent which
these shores. The Inside

including, especially,
schools, and the people are
as

<?nirit

Alaskans

suggestion

offerings

plaining oh for the past 40 years Some Alaska rivers, especially the Skagway offers an excellent proand said in effect, "Here is:youiv Yukon; one of the largest rivers of tected
waterway
for
coastwise
opportunity — let's.'see what^'you the Continent, have multi-million shipping to Southeastern Alaska.
can ^do to ehcdurage development; kilowatt power
potentials for the
' The Alaska Railroad and a netand get • inustep with your Cana¬ processing of local minerals or im- work of highways leading from
dian' friends across the line."
By ported aluminum ores.
.rail points and tidewater ports
careful selection the State may be
;'When scenery anywhere is men- constitute the internal land transable to acquire most of the land" tioned some unabridged boasting portation system. The only road
in

these

year-long industries
seeking and a proposed

strings! jiisUspiith °f the Alaska line, has reaches
been ^cohrw led engineers to look - northward. Passage

nioneerins

mous

extension of

very

continental

good

pay

The

vessels

services

can

responsible

are

anywhere

United States. They have all of
the
usual
public facilities
and

the

that

spring and south

apron

have

commodities

pulp mills

Columbia

British

size

the

Kitimal

Pacific Northwest ports which are
too high to stimulate general development.
They
restrict • local

are

finally being given consideration,
The huge $500 million power and
on

the

cut

Alaskans

that:

than

L.vy

Congress

for
will be

mining

outstanding promise are iron

ore,

prospectively

holdings.
..

development
most

stressed

seaward

25,000

gold
to only
v

the

The

amounted

minerals

heavily

area"

shoreline of mainland and i-lands,
This,
amounts
to
an
additional

45,000,00.0
ently and

1957

submerged lands to

three-mile

the

again become valuproducer.

promotion

other

one-fourth

the State comes into control of the
tide flats and

The

are

larger than

California.

State

than

will
the

57,000.000.

strings

these

output in

restrictive. The granted

very

will.*

able

grant

period

The grant has few

years.

future

new

of public land in

acres

sizable tracts

due

the

$35

per

ounce

price of the product. How¬
this metal is still widely dis¬

tributed

throughout Alaska
we.hope that somehow in the

and
near

wav

and Sweden leads to the con-

tomers.

inserted

understood

Transportation Is the Key

"Transportation is the key to
development" is an axiom in frontier countries everywhere. In our
case

from

we -

presently

cargo

rates

suffer
and

most
from

small

above
that

if must

Alaska's

medium

sized

four

cities

In conclusion it must be stated

emphatically

that

Alaska

not,

contrary to many newspaper and

(Ketchikan,
Juneau,
Anchorage popular magazine articles, a vast
and
Fairbanks,
ranging
from storehouse
of
readily
tapped
10,000 to 50,000 population) plus wealth. It is a land of opportua score
ern as

of small towns are as modcities and towns of similar

nity, but only for the hardy and
the persevering, for men with the

riiiia.

mv.

vv unicii

PHILADELPHIA, Pa. — The
Women s • Club
of
Philadelphia will hold its annual
"Boss Night" Dinner Jan. 19.
Guest speaker will be William JJ.
Mewhort, Executive Vice-President of Revlon, Inc.
^

Investment

(132)

The Commercial and Financial Chronicle

succeeded

Continued from page 15

Mr.

News About Banks and Bankers

Presidents

Empire Trust Com¬

New

pany,

nounced

York,
Jan.

was

Brunie, President.
Mr.

Winter, who has been

with

Empire Trust since 1923, will

Mr.

since

Total

resources

1955.

Cash

with

due

banks
U.

irojtn

The Lafayette

YORK

NEW

Govt,

30/58

Alfred

$
208.358,084

185,062,792

Olsen

64,402,331

50,769,756

secu¬

discounts

48.706,540

48,742.270

80.956,409

85.289.35)5

2.507.057

2,354.724

profits

National Bank of
announced

York,

New

u r

Olsen

h y,

Board

the

TIIE

NATIONAL

STERLING

TRUST

continue

Dock

Savings

Bank,

New

Dry
York

Has just announced the election of

Harry F. Andrews

COME ANY,

dent,
bis

capacity,

new

Mr.

BANK

bank;
Walter
Faustmann,
Shirley Skeans, Frank P. Plunkett; Richard A. Donals and Wil¬
liam
H.
Midwinter;
Assistant

floor

Cash

operations

due

and

KINGS

COUNTY

all

Vice-President

also

served

Dry Dock's
branch

its

the

THE

bank's

Delancey

Avenue

offices

77,351,067
1,700,088

resources-

Cash

8.329,981,739

7,830,598,095

due

and

banks-

Govt,

1,505.870,335 1,524.045,491
3,807,259,870 3,552,711,759

profits

June 30/58
$88,348,959

73,103,585

77,058,507

and

resources,

Dec.

Deposits

lower

and

NEW

CITY

BANK

Dec.

31, '58

Deposits
Cash

92,142,410

14,005.184

18,089,950

from

due

discounts

Gov't,

Loans

Undi.v.

1.707,001,412

1,698,059,745

se¬

profits....

Total

93,179,286

BANK

FARMERS
NEW

Cash

Deposits

TRUST

CO.

101.601,402
118,117,780

100,843,335

45,098,850,

38,134.078

113,4.07,720

76,101,396

83,320,473

Imans <fe discounts..

2.772,043
14,595,373

14,065,995

Surplus
vided

THE

Dec.

2,993,278

31, '58

and

from

banks

Govt,

Undiv,

3,174.581,1735 3,013,934,008
2,038,018,353 2,453,287,043

due

701,681,840

641,400,139

508,778,718
1.004.878,218

538,450,188
1,544,274,041

98,870,623

101,358,057

se¬

curity lioldgs.
Loans &: discts.
profits

IIANOVEU

BANK.

NEW

Dec. 31, '58
resources-.

Deposits
Cash

and

from

curity

1.797,993.393

1.713.003, 349

1,575,338,408

493.034,368

500.104,802

se¬

433.806 691

262.538,450

discts.

898,459 705

Undiv. profits..-

914,895,406

32.014 .721

27,507,257

Vic

//•O

■/

•

Dec. 31,'58

Sept. 30, '58

S
resources„

Cash

and

from

852,075,854

891 732,353

740,844,511

354,909,179

205,510,893

due

banks—

Govt,

se¬

curity holdgs.
Loans A? discts,

Undiv.

1,001 086,409

Deposits

193 .850,744

183,907,922

375 045,181

382,020,610

14 ,849,211

14,212.464

profits

holdings
Loans

MARINE

MIDLAND

NEW

resources.;—

Deposits
Cash

and

TRUST

47.082,178

43.083,694

20,725,378

20,434,527

2.900,775

2,800,000

TRUST

COMPANY,

Dec. 31,'5H

Sept. 30 ,'58

843,014.130

40,310,874

842,040. 032
39.391, 798

8,249,000

8,351.489

rlty

CO.

$
611,602 689

190,808,977 109,571,383
secu-

holdings--— 125,459,391

125,737,573

Loans & discounts294.911,891 208,850,210
Undivided profits™
12,722,525

12,424,080

DROWN

tJi

BROTHERS
NEW

Total

resources....

Deposits
Cash

and

due from

banks

jity

Govt,

10,828,907

17,359 980

15,251,410

13,527, 903

New

together with
compliance of the
respective corporations providing
Merger

for

the

merger

Bank

and

The

weekly added it is doubtful there will
operations.
The

Industry
overnight spurt in

buildup of steel production will be gradual, "The Iron

Age" declared.

The

reason

for

this

that the mills

hesitate

start up

additional furnaces until they have orders in hand. They
going to be sure they need the added output before committing

are

themselves tc it.

Despite the gathering strength of the steel market, quite a few
users are holding back in the
placing of orders above their
requirements. One steel sales Vice-President commented;
"They've been in the driver's seat so long they find it difficult to

Com¬

of Rome, N. Y. and The First

pany

First

Bank

Herkimer

Trust

adjust," this trade authority stated.
'

Part of the strength

of the plate market is due to a buildup
Some of this large-diameter pipe is fabricated
plate. In the Midwest, linepipe bookings are still gaining.
fabricators also are revising their
plate orders upward, this

linepipe orders.

from

trade

Reports" announced

last

Friday.
It

industry operations the past week reflected the higher
level of operations, with domestic plants
assembling 97,819 cars
compared with 76,653 in the same week a year ago. Two weeks
ago, 104,907 were built.
Truck completions, with International Harvester on strike
since Nov. 13, totaled 13,480 last week as against 12,817 a year
ago.
Two weeks ago the total was 15,212.
in

Scheduled to work last Saturday, Jan. 3, was Cadillac, Lincoln
Detroit, plus four of 13 Ford Division factories and Rambler

Studebaker.

and

The

Mo¬

Valley, has been filed with
York

State

makers

auto

December,
would

the

in
in

1958.

The

car

plans are to build 595,000 passenger cars
plants during January compared with 439,357

Thus, the need for extra-hour daily operations and Saturday
overtime, noted heavily during December, should persist,
it
pointed out.

land

Company

that

States

the same month in

Utica, under the title Marine Mid¬
Trust

stated

United

into

Company

concluded.

paper

The auto industry is scheduling its
January production 22%
above the year-ago level, "Ward's Automotive

Farmers

Trust

new

year

car

1959

require

in the market

definitely

buying,

encouraged

by the tenor

"Ward's" added

somewhat

appears

the

are

but

optimistic

that

and

6,000,000

undoubtedly
Three

full

participation of each of the Big
place in intensive drives for business.

Banking De¬
Steel

Output Set at Highest Level Since First Week of
October 1957

First Bank & Trust Company of

Utica,

Utica, N. Y., was granted
approval to increase the capital
stock from $2,150,000 consisting of
2,150,000 shares of the par value
of $1 each, to $3,100,000 consist¬
ing of 620,000 shares of the par
value of $5 each.

Steelmakers got oft to

a good start last week on a predicted
production year, up 30% from 1958's 85,000,000
ton output, "Steel" magazine reported on Monday of this week.
Although New Year's Day operations were somewhat cur¬
tailed, the ingot rate climbed 6 points to 75% of the 1958 capacity.
Production during the last three days of December and the first
lour days of January was about 1,943,000 net tons.
Steelworks operations in ten out of 12 districts were
up.

110,000,000

ton

YORK

Sept. 24/58

259.432,408 231,205,631
220,590,870 185,447,525
32,990,570

56.388.999

l oans <fc discounts-

37.423,395

67.348.464

59.045.912

Capital and surplus

14,725.264

16.542.458

WESTCHESTER

Dec.

1,308,242

Totnl

31/58

-..w— —

Dec. 31/57
'
$

106,119,188

resources.—

Savings

Bank

sav¬

the

bunks

147,541,693

152,776,880 136,027,299

.'.Li.--U. S. Govt, security
holdings

15.073,733

19,363,542

56,125,798

43,220,330

Loans

74,030.025

58.854.418

1,301.572

1,414,280

discounts

Undivided

observance

Newark,

To
of

its

100th

anniver¬

year.

formally mark the opening

the

bank's

centennial

President

snipped

stretched

across

entrance

year,

John

Cash-

symbolic

ribbon

the

bank's

DeKalb

Street.

main

Avenue

then

and

officially

designated the area, site of "The
Dime's"
main
office, as "Dime
that

and

street

designation

The

signs bearing
put up.

were

bank

was
incorporated
special act of the State
Legislature on April 12, 1859. It
opened for business the following

under

June

small

room

post office building then
tague Street.
the

end

business,

the

Mon¬

first

day's

positors with

than

496,000

de¬

$974,000,000 on
deposit, among its four offices. On
Jan. 2, "The Dime" paid these
depositors $7,687,250 as its 247th
consecutive

quarterly
rate

paid

over

dividend.

payment

3Y4%,

since

the
the

and
total
bank

The

National

was

annual

brought to
dividends
opened

the Greater Newark

office will be known

port

Office."

lease

has

the southwest

and

Terminal

been
York

square

feet

of Marsh

corner

Streets

Newark.
The

bank

has

applied

the

Oct.

under

direction

Johnson,
President,
25, 1946, to June 23,

1958, when he became Chairman
the

Board

Trustees

and

Chief Executive
Officer, and was

There

been

completed.

granted, work

the

new

will be undertaken at

facility

once.

The

National

State

Bank

office in the Airport

Adminsitration Building.

This of¬

fice,

which

specializes

opened

was

whereas, the

serving
new

1953,

air traffic,

facility is

ex¬

pected to service seaborne traffic.
❖

❖

George E. Vincent,

Assistant

Vice-President
of
the
National
Newark and Essex Banking Com¬
N. J., died Dec. 30.

pany,

FIRST

NATIONAL BANK AND TRUST CO.

Total

resources—

Deposits
Cash

___

and

due

rity
Loans

236,834,230

225,966,923 216,803,402
35,380,655

Govt,

discounts.

Undivided

34,749,323

secu¬

holdings
&

June 30/58

246.737.931

from

banks
U.

Dec. 31,'58

profits

3,899.308

3.601,149

explosive

contract talks between

Steelworkers.

pact will not be reached before the old

But it does not

mean

Chances

there will be

strike

the

industry

that

are

one

agreement on a
expires on June 30.

immediately. An exten¬

two will probably be agreed upon.
No steel shortages are looked for, unless consumers panic, and
stable prices are expected through the first half.
If the USW
wins a costly package, base prices may go up sharply in late
sion

"Steel" declared.

summer,
Also

in store is greater consumption

struction,
petroleum,
machinery,
appliance and container industries.

by the automotive, con¬
implement,
railroad,

farm

With better business ahead, all major steel consuming indus¬
use more steel this
year, the magazine continued. Some

prospects

are

that

construction

expects

billion year as agaipst 1953's $49.5 billion.
Automakers will build between 5.5 million
cars

ancl

million

trucks

trucks'

1958).

(compared

Machine

tool

with
sales

record

and

5.8

4,250,000
should

$53

million

cars

reach

and

about

$455,000,000 this year, compared with $360,000,000 in 1958. Elec¬
trical machinery people expeet a 7% gain over 1953. Farm
equip¬
ment sales will equal or surpass 1953's estimated $2.2 billion. Oil
and gas equipment sales will be up. About 3,400,000 tons of
pipe
are expected to te laid in 1959
(as against 2,600,000 in 1958).
Nonferrous metalmen foresee

a good year.
They have just come
of their best fourth quarters in history and see little
reason to expect a slowup in 1959.
Over-all sales could equal those
of 1957. Demand will go up and prices will be more stable than
in prior years. Supplies will be adequate, although it may take

through

one

longer to get orders filled.
"Steel's" price composite on steelmaking scrap held at $39.66
a gross ton.
Scrapmen hope that rising steel operations will put
new strength into the market.
In the current week sleel output is expected
highest level since the first week of October 1957.
The

American

Iron

and

Steel

Institute

reach

the

that

the

announced

operating rate of steel companies will average *131.3% of steel
capacity for the week beginning Jan. 5, 1959, equivalent to 2,109,000 tons of ingot and steel castings (based on
average weekly pro¬
duction for 1947-49) as compared with an actual rate of
*128.1%
of

62,875,414
57.044.989
114,182,254 107,997,023

will

United

new

870,000
also

will be eventful for steel, the metalworking weekly
for a widespread reversal of inventory policy.
before July.

looks

the

industry

has

and

examination

The bank's greatest
growth has

place

tries will

Assuming that permission is

96,

Consumers will add 4,000,000 tons to their stockpiles
Current inventories are pegged at 14,000,000 tons.

Comptroller of the Currency for
required permission and the

the

This year

added.

Port

PATERSON, N. J.

taken

the "Sea¬

signed with the Port of New

Authority lor 25,000

The

area.

Detroit at 101% of capacity, up 12 points;
23 points; Chicago at 87, up 0.5 point; Cin¬
cinnati at 83, down 5 points; Cleveland at 80, up 11
points; Western
district at 79.5, up 0.5 point; Wheeling at 79, up 8 points; Pittsburgh
at 73, up 11 points; Birmingham at 73, up 1.5
points; Eastern dis¬
trict at 71, up 14 points; Buffalo at 66, no change, and Youngstown
at 64, up 14 points.

Louis

St.

plans
banking office

its

Bank

announced

establish

1859.

from

State

J.,

operates

had

^accounts

profits

the

been
totaling $1,892. Today, the

has

George
03,070,969

BANK

WHITE PLAINS, N. Y.

only corporation in Brooklyn or
Long Island with more than $1
billion in assets, on Jan. 6 began

$361,619,077
&

District rates follow:

NATIONAL

$
1.392.743

Brooklyn, N. Y., third largest
ings bank in the world and

secu-

holdings

the

Cash mid clue from

IIARRIMAN

Dec. 31/58

with

undi¬

Dime

bank

584,400,945 533,424,005

Govt,

Company,

Banking Department.

certificate

Deposits

The

opened

due from

banks

The
Com¬

■

profits—..:/

Dec. 31/58 Sept.
30/58

601,517.481

Trust

filed

State

13,434,461

discounts
and

YORK

Total

into

Y.,

York

been

York

16,212,401

Surplus

At
THE

New

partment.

.....

—

Square"

THE NEW YORK TRU ST CO., NEW
YORK

Total

New

ern

Govt, security

S-

Fulton

lioldgs.

Loans

Merger

under the title The North¬

pany,

hawk

profits--

Borough

1.957.711 950

due

banks.

Govt,

1,211,487

Lake,

the New

undi¬

and

banks

YORK

Dec. 31, '57

Total

1,242.000

Saranac

security

resources

sary
TIIE

profits—

Northern

81.408,408

—

The State of Trade and

Tank

together with
compliance of the
respective corporations providing
for the merger of Adirondack Na¬
tional Bank and Trust Company,

889,088,277

Deposits

Sept. 30, '58

Cash

28,260.118

88.800,909
.

CLINTON

Total

YORK

GUARANTY TRUST COMPANY OF N. Y.

resources..

Plan

897,686,043

discounts

«Hs

vided

Deposits

23.500,000

certificate

June 30/58

from

due

Govt,

holdings

rity holdings—^

Total

Undivided

Dee. 31/58

...

and

...

NEW

CO.,

secu¬

Undivided profits

discounts

security

Cash and due from

Govt,

5,700.000

0.001,021

Cash and due from

National

YORK

resources

banks

30,397,240

TRUST

banks
U.

88.837.494

Dec. 31/50 Sept. 30/53

Total

47,059.934

.....

resources.

Loans

CITY

profits.

Deposits

holclgs.

44,872.178

33,075,850

undi¬

and

SCHRODER

1,511,901,738 1,559,388,390
discts. 3,830,340,391 3,639,150.411

curity

Surplus

due

banks..._

6,782,755

21,112,300

National

Sept. 30, '58

7,009,693,334 6,013,863,431

and

from

Loans

Plan

84,090,048

...

7.936,482.441 7.08(5,322,604

resotu ees.

11.943,110
19,031.059

Govt,

holdings

June 30/58

130,795,394

Govt, security

vided

$
Total

31/58

banks

YORK

CORP.

121.200,971

holdings

and due from

has
BANKING

YORK

NEW

Loans

NATIONAL

111,408.019

07.783,405

SCHRODER

HENRY

.1.

Cash

the*

1,700,474,493

2.100,874,803

discts.

Undivid.

U. S.

FIRST

Y.¬

884,037,971

——

se¬

holclgs.

curity
Loans

Sept. 30, '58

7,380,090,807 0,874,519,190

from
U.

N. Y.

BANK,

Dec. 31, '58

op¬

East Side.

'Mil:

resources-

Dec. 31,'58

banks
U.

Second

Street
on

30,920,932
39,377,719
81.134,504
1,733,859

MANHATTAN

CHASE

Total

Avenue,

35,294.445
43,280,041

De¬

He had

now.

previously been in charge of
in

manager

opening

cember, 1957, until

erations

n c e

Seventh Avenue

new

from

Deposits

Undivided. profits

Total

Andrews, who had been

1949,

Total

139,870,040

secu¬

Deposits

Assistant

155,215,371

—

Govt,

five

branches of the bank.
Mr.

159,130.351
143,705.030

COMPANY

TRUST

BROOKLYN,

Cash

rity holdings

page

normal

from

banks
U.

from

Thursday, January 8, 1959

steel

YORK

NEW

Continued

Mr.

Cashier of

Andrews

will have responsibility for bank¬

ing

resources

Loans & discounts-

immediately.

effective

Total

Deposits

Vice-Presi¬

the

Dec. 31/58 Sept. 30/58

Frank

Vice-Presidents.

Trustees

and

Vice-Presidents;

will

The

following promotions:

198.835.939

holdings

Undivided

the

223.034.133

•_

Loans «&

bank's finance division.
£

—

and

rity

department.

has been with .the

Morgan

bank

con¬

Dec. 31/58 Sept.

Deposits

tinue in the banking

BANK

an¬

Henry

NATIONAL

Presidency

Livesey.

Brooklyn,
GRACE

the

capacity,

and

2,058,000

tons

week

ago.

Output for the week beginning Jan. 5, 1959 is equal to about
74.5% of the utilization of the Jan. 1, 1959 annual capacity of

Volume

Number

189

5810

The Commercial and Financial Chronicle

(133)

)

147,633,670
week

the

capacity

based

with

actual

utilization

production
Jan.

1958

76.2%

several

annual

week

month

the

rate

was

tion

*Index

production is based

average

weekly

Servicing Accounts

that

distributed by the electric light
and power industry for the week ended Saturday, Jan. 3, 1959
was
estimated at 12,364,000,000 kwh., according to the Edison
Electric Institute. Output the past week receded from the level
of the

preceding week.
the

For

week

Jan.

55,608

above

cars, or

the

corresponding 1957 week, but a decrease
11.4% below the corresponding week in 1956.

there

draw

such

line

Industry Scheduling January 1959 Output

between

well.

you

must

the

Unless

you can control
will not have it for
the necessary work of servicing
your most productive and deserv¬
ing customers.

time

Many

investment
I

running

man

business
when

mean

when

hours

Last week's car output totaled 97,819 units and compared with
104,907 (revised) in the previous week. The past week's produc¬
total

cars

and

trucks

decrease of 3,820 units below

amounted

111,299

units,

that of the previous week's output,

own

securities.

If your

day is going to be filled with

an¬

swering phone calls from people
constantly want information
concerning some tip on a stock
that they wish you to check for

who

them,

just want

someone

with

will
I

hours

has

know

say

out

that

bogged
is

same

small

true

spend
each

limited

servicing
You

The

salesman

and

week's

IMPORTANT.

working time to
number of accounts.

must

think it is better to

week's

car
output dropped under that of the previous
units, while truck output declined by 1,732 vehicles
during the week. In the corresponding week last year 76,653 cars
and 12,817 trucks were assembled.
^

week by 7,088

Last week the agency reported

in the United
week and

States.

12,817

Lumber

there were 13,430 trucks made
the previous
;

This compared with 15,212 in

year ago.

Shipments Fell 3.7% Below Output in the
Holiday Week Ended Dec. 27, 1958
shipments of 461 reporting mills in the week ended

Dec. 27, 1958 were 3.7% below production, according to the "Na¬
tional Lumber Trade Barometer." In the same period new orders

30.4%

above production.

Unfilled orders amounted to 37%
of stocks. Production was 39.9% below; shipments 41.7% below
and new orders were 27.6% below the previous week and 26.4%
the like week

1957.

Business Failures Continue

Holiday Decline

Commercial and industrial failures continued down

cer¬

small accounts, or potential
customers, and the chance of a
possible referral from these peo¬

these

wasters

accounts

wish

are

service

time

out

proportion to the amount of

com¬

missions their business creates.
am

not

discouraging

small

just those that waste

counts,

plan,

check-up.

study

customer's

accounts

list

holdings for a
visited my office

are expected to advance
early in January.
A higher than anticipated final crop estimate from Ghana
discouraged cocoa buying the past week and prices fell moderately.
Coffee transactions remained close to the prior week with prices
steady. Although transactions in sugar were reduced during the
week, prices were unchanged from a week earlier.
Although cattle receipts in Chicago fell from the prior week,
buying slackened and prices were down appreciably. The salable

supply of hogs expanded somewhat and turnover picked up.
Hog prices were up noticeably from a week earlier. Lamb

buying
Lamb

steady and receipts were close to the preceding week.
prices held unchanged. In contrast to the increase in hog
was

312.

preceding week.

Wholesale Food Price Index Eased Somewhat Last Week
Although the wholesale food price index, compiled by Dun
Bradstreet, Inc. slipped slightly from the prior week, it re¬
mained fractionally above a year ago. On Dec. 29 the index stood
at $6.35, down 0.5% from the $6.33 a week earlier, but up 0.5%
from the $6.32 of the comparable date last year. The 1958 high
of $6.72 occurred on April 3, while the low of $6.23 was reached
&

Oct. 14.

Higher in wholesale cost last week were cottonseed oil, eggs
and steers.
Declines included flour, wheat, corn, oats, barley,
lard, butter, sugar, cocoa, hams, bellies and milk.
The index represents the sum total of the price per pound
of 31 rawioodstuffs and meats in general use and its chief func¬
tion is to show the general trend

of food prices at the wholesale

level.

Wholesale

Commodity Price Index Edged Moderately
Lower the Past Week

The

general commodity price level declined moderately last

week, reflecting lower prices of most grains, flour, lard, steers
and butter. The daily wholesale commodity price index, compiled
by Dun & Bradstreet, Inc., fell to 274.50 on Dec. 29 from 275.25
a week earlier.
It was noticeably below the 277.62 of the corre¬
sponding date a year ago.
Expectations of expanded country marketings early in 1959
discouraged grain trading the past week and most prices declined
somewhat. Despite prospects of large export business, especially

moderate

pick-up in flour trading,

but prices

moderately lower. Although the buying of rice decreased
moderately, prices were sustained close to those of the prior week.
Wholesalers anticipate a renewed surge in rice exports, and light

were

occur

procrastinator.

charged the

though he
I

refuse

calls

occasionally,

lengthy

drawn

into

discussions

any

his

securities, the status of the bond
market

latest

flation.
to

the stock market, or the
he has read on in¬

article
He

sell

once

five

gave me an order

bonds

and

amounted

$2 million. This is
it

but

our

com¬

$12.50,

yet

extreme

factual and

case

believe

illustrates that it is wise to elimi¬
nate

well

pursue.

the

securities

accumulate

also

business

large

you

number

people who have saved a "nest
egg" and have time to talk. Some
people keep inadequate records*
and are constantly phoning you
dividend

for

information,

Others desire

if you
is a

and

it.

don't object—you

humane

your

the

etc.

personal confidant

are

worthwhile

very

and

act

to keep a door open
fellowman and to listen

trials

and

tribulations

people

interfering
production of
work, then you must elimi¬

your

Although the usual post-Christmas sales decline occurred the

Clearance
sales promotions and good weather held total retail sales noticeably
over
a
year ago.
Best-sellers were men's and women's winter

•

The

total

dollar volume of retail

trade in

the period ended

Wednesday was 5 to 9% higher than a year ago, spot estimates
collected by Dun & Bradstreet, Inc. indicate. Regional estimates
varied from the comparable 1957 levels by the following per¬
centages: Middle Atlantic and South Atlantic States +7 to +11%;
East North Central +6 to +10; West North Central +5 to +9;
on

New

England and Pacific Coast +3 to +7; East South Central,
and Mountain States +2 to +6%.
'

West South Central

Apparel stores reported favorable post-Christmas response to
sales promotions on women's winter coats, suits and dresses and
marked year-to-year gams occurred. Interest in fashion accessories
and sportswear was close to that of a year ago. The call lor lin¬
gerie and blouses was up slightly. Men shoppers were primarily
interested in topcoats, suits and hats, but purchases of most fur¬
nishings lagged. The buying of children's clothing appreciably
exceeded that of last year with principal gains in girls' skirts and
sweaters and boys' jackets and trousers.

Department store sales on a country-wide basis as taken from
the Federal Reserve Board's index for the week ended Dec. 27,*
1958 advanced 30% above the like period last year. In the pre¬

are

nate such calls.
After

while

this

business

will

acquire a pretty fair
layman's knowledge of most of the
you

ills

that

ladies.

befall

You

elderly,

will

also

retired men
gay blades in

neurotic

learn

that

quite
some
their youth
and they want someone to share
this past glory. A certain amount

many

sort

this

Every

salesman

were

thing
must

is natural.
handle it

advantageously and with courtesy,
you still have a job to do.
There are people who are serious

but

their

investments

serious

business.

about
is

this

and

Certainly
they should not be neglected be¬
cause
too much of your time is
a

wasted
aware

others

who

not

are

of this.

Without being curt or rude you
should

explain

that

you

have

other clients waiting for you

with
urgent pressing matters that must
be

resolved,.

Many of these good

people do not realize that

you

just

do not have the time fro chit-chat

and

pointless conversation. Those

who

are

reasonable will continue

clients—the others
worth keeping.
as

your

are

not

ceding week, Dec. 20, 1958 an increase of 3% was reported. For
the four weeks ended Dec. 27, 1958 a gain of 8% was registered.

Northwest Gas & Oil

period Jan. 1, 1958 to Dec. 27, 1958 an increase of 1% was
recorded above that of the 1957 period.

Common Stock Offered!

For the

trade

Retail

sales volume

here

week, according to estimates by trade
from

the

1957

level.

New York

City

observers, was unchanged

According to the Federal Reserve Board's index, department
showed
In

the

City for the week ended Dec. 27*, 1958
increase of 27% above that of the like period last year.

preceding week, Dec. 20, 1958, a decrease of 3%

was

increase

Greenfield & Co., Inc., of New

the Past

store sales in New York

period in 1957.

was

not

normal

prices and transactions lagged. Although sales of rye
moved downward during the week, prices were steady.
There

did

the

ported.

soybean

over

some

Egypt, wheat trading sagged and prices were down appreciably.
Trading in corn dipped moderately and prices were somewhat
lower than a week earlier. There was an appreciable decline in
to

that he might be a congeni¬

that

rhow.

looked

with

also

small casualties under $5,000, which fell to
24 from 32 a week ago and 30 last year. Thirteen of the failing
businesses had liabilities in excess of $100,000 as against 21 in

list

only a few changes dur¬
ing the past five years but when

supplies is expected to stimulate transactions in the coming weeks.
United States exports of cotton for the season to Dec. 20 came
to about 1,216,414 bales compared with 2,192,722 in the comparable
period last season.

apparel, television sets, linens and housewares. Although sales of
new
passengers cars moved up from the prior week, they were
down moderately from the similar 1957 period, scattered reports

among

was

showed

other human beings. But if it gets
to the point during a busy day

Failures involving liabilities of $5,000 or more dipped to 145
from 153 in the previous week and 173 a year ago. A decrease

prevailed

man

talking
do,
or

prices, lard prices fell somewhat during the week.
Trading on the New York Cotton Exchange was sustained at
the level of the prior week with prices steady.
A tightness of

past week, consumer buying was better than expected.

was

might
thought he would do, than he
tin
taking any action.
His

^supplies in the coming weeks. Rice prices

the week

when the total

interested

The Lonely Hearts Club

Dec. 26,

of prewar 1939

perceive that this

what

his investment holdings total over

ally. short on action. I once had a
very wealthy retired man present
entire

about

time. The longest talkers are usu¬

his

was

completed

was

mission

Post-Christmas Trade Volume Noticeably Over Year Ago

the

control your time and,
I
add—your
energy.
You
should have time to think calmly,
may

began

work

another conference and I

ac¬

to 169 in

ended Jan. 1 from 185 in the preceding week, Dun &
Bradstreet, Inc. reports. At the lowest level since the week ended
1957, casualties were considerably less numerous than in
the comparable week of last year when 203 occurred.
About
one-half as many businesses succumbed as in the similar week

only to the

time wasted to experience and, al¬

lose

tain

ple,

the

had

tal

Eliminate the Time Wasters
I

When
we

"Ward's."

Last

I refer

us.

job
by
research,
our
stenog¬
raphers and my own contribution.

you

Above Level of 1958
car

that

your

and those less whom they can talk and call you
only will some people about some nonessential matter,
wish help on their investments not only will you waste your time
but
they will sometimes desire but you will not be able to con¬
help on their personal problems centrate as well on that which IS

what

22%

dollars to

demands

production for the week ended Jan. 2, 1959,
according to "Ward's Automotive Reports," is scheduling its
January output 22% above the year ago level.
:

Passenger

above

extent

and

Not

so.

dovtfn.

were

point where

them

states

discover

soon

"back office" details have

Auto

tion

will

you

your

increase

your

Loadings of revenue freight in the week ended Dec. 27, 1958
138,989 cars or 24.3% below the preceding non-holiday week.
Loadings for the week ended Dec. 27, 1958, which included the
Christmas holiday, totaled 431,938 cars, an increase of 22,340 cars,
5.5%

customer list grows,
the demands upon your time will

Loadings Dropped 24.3% Under Preceding Week

were

Ipuild your investment

essential

ended

3, 1959 output decreased by
15,000,000 kwh. below that of the previous week but increased
by 672,000,000 kwh. above that of the comparable 1958 week
and by 693,000,000 kwh. above that of the week ended Jan. 5, 1957.

Car

you

clientele

me.

value of the time devoted to this

Electric Output in Post-Christmas Week Eased

Slightly Below Level of Prior Week

spent over

with

which I gave hini must have run
into a cost of several
hundred

production

The amount of electric energy

time

devoted to this study and that

was

1947-1949.

for

and

each

thought we did a most creditable
job of research on his extensive
portfolio. The office time which

*123.6% and
production 1,985,000 tons. A year ago the actual weekly produc¬
was placed at 1,515,000 tons or 94.3%.
ago

times

hour

140,742,570 net tons.

the

For

torts compared

net

before,

was re¬

For the four weeks ended Dec. 27, .1958 an increase of
noted. For the period Jan. 1, 1958 to Dec. 27, 1958 an
of 3% was registered above that of the corresponding

shown for this week reflect in part the fact
that this year Christmas was on Thursday and the week therefore
included three days of heavy pre-Chxistmas shopping; in the
corresponding week last yew Offcast*** s vr»s •* We<U*es«u*y.

York

City, are publicly offering
300,000 shares of common stock

(par 10 cents) at $1 per share.
The net proceeds will be used
for acquisition of additional gas
oil interests and
corporate
administrative expenses. The of¬
fice of the company is located at
and

150 Broadway,

New York 38, N. Y.

With Westheimer Co.

(Special to The Financial Chronicle)

*The large increases

DAYTON,
Palmer
&

Ohio

now

—

with

George

Westheimer

Co., Third National Bank Bldg.

The Commercial and Financial, Chronicle

(134)

Advanced

Research

Associates, Inc.
shares of common stock (par five
cents). Price—$6 per share. Proceeds—For research and
development program; and for equipment and working
Dec.

filed 400,000

Office

qapital.

4130 Howard

Ave., Kensington, Md.
Wesley Zaugg & Co., Kensington, Md.,
and Williams, Widmayer Inc., Washington, D. C. Offer¬
ing—Expected in January.
Underwriters

Alaska

—

Juneau

Gold

Mining Co.
outstanding shares of common
*stock, of which 300,000 shares are to be offered cur¬
rently and the remaining 340,660 shares in the future.
Price—To be supplied by amendment.
Proceeds—To
selling stockholders. Office—6327 Santa Monica Boule¬
vard, Los Angeles, Calif.
Underwriter—Lester, Ryons
& Co., Los Angeles, Calif.
Dec.

filed

Now

640,660

Allied

selling stockholders.
cago, 111. ■

Cruttenden,
■

Podesta

Associated Bowling Centers,

Co.,

Chi¬

(par one cent) and
standing shares of common stock (par one
preferred shares are to he offered for public
account of the company and the common

selling stockholder. Price
supplied by amendment. Proceeds—To acquire
new bowling centers and increase working capital
(part
to be used in defraying cost of acquisition of stock of
owner of a Brooklyn
(N. Y.) bowling center. • Office—
135 Front St., N. Y.
Underwriter — To be named by
amendment.
Offering—Expected any day.
be

IVz

new

for

each

held

(for

15-day

working capital. Office—Merchandise Mart Plaza, Chi¬
54, 111. Underwriter—None.
Autosurance Co. of America

standby. Price — $2 per share. Proceeds—For additional
working capital and new acquisitions, etc.
Office—30
Verbena
Avenue, Floral Park, N Y.
Underwriter —
None.

American Asiatic Oil Corp.

share.

ment effective Dec. 3.

it Avco Manufacturing Corp., New York
7 filed $15,000,000 of convertible subordinated de¬
bentures, due Feb. 1, 1979, to be offered for subscription
by stockholders. Price—To be supplied by amendment.

Jan.

Office—Magsaysay Building, San Luis, Ermita, Manila,
Republic of Philippines. Underwriter — Gaberman &
Hagedorn, Inc., Manila, Republic of Philippines.

both of New York.

American Buyers Credit Co.

of which
4,545,455 shares of this stock are to be offered for public
sale at $1.75 per share. [Shares have been issued or are
issuable under agreements with various policy holders
in

American

Buyers Life Insurance Co.

Co. (both of Phoenix) permitting them
stock at $1.25 per share. Sales personnel
have been given the right to purchase stock at $1.25
per share up to the amount of commission they receive
on stock sales made by them.]
Proceeds—For the opera¬

purchase

tion of other branch offices, both in Arizona and in other
states. Office—2001 East Roosevelt, Phoenix, Ariz. Un¬
derwriter—None.
American-Caribbean

Oil

Co.

(N.

Feb.

28, 1958, filed 500,000 shares of common stock (par
20c).
Price—To be supplied by amendment. Proceeds
—To

discharge current liabilities and to drill

Underwriters—To

American

named

wells.

ward A. Viner &

American

Fidelity Life Insurance Co.
28,1958, filed 258,740 shares of common stock (par
$1), of which 125,000 shares are to be offered publicly
and 133,740 shares to employees pursuant to stock
pur¬
chase options.
Price—£o public, $6 per share. Proceeds—
For expansion and other
corporate purposes. Office—Atarila. Ga

Underwriter—None

Bankers

N¥w York

Co., Inc., New York.

Fund, Inc., Denver, Colo.
Nov. 17 filed 1,000,000 shares of capital stock (par one
cent).
Price—At market.
Proceeds—For investment
Office—800
Security Building, Denver, Colo.
Under¬
writer—American Growth Fund

Management Corp.

indebtedness and for

working capital.

Office-

1404 Main

St., Houston, Texas. Underwriter—McDonald,
(formerly McDonald, Holman & Co.,
Inc.), New York.
Kaiser & Co., Inc.

Bankers Southern, Inc.
April 14, 1958, filed 8,934 shares of

($100

par

porate purposes.
ville.

share).

per

stock.

Price

geheral

cor¬

Underwriter—Bankers Bond Co., Louis¬

Sponsors, Inc., 800 Se¬

curity Bldg., Denver 2, Colo.
American Mutual Investment Co., Inc.
Dec. 17, 1957, filed 490,000 shares of capital stock. Price
—$10.20 per share. Proceeds — For investment in first

convertible

offered in

debentures

due

Jan.

sub¬

1969

and

stock (par 10 cents) to be
of debentures and 10 shares of

common

units of $100

dent.

American Telemail Service,

Inc.
common

slock

(par

Price—$4 per share. Proceeds—To purchase equip¬
ment and supplies and for working
capital and other
corporate purposes. Office—Salt Lake City, Utah. Un¬
$1).

derwriter—Amos

Treat
&
Co., Inc.,
of New
York.
Name—Formerly United States Telemail
Service, Inc. Offering—Expected early in 1959.

Change

Price—$100 per unit.
Proceeds—F'or equipping
decorating a new store and acquisition of real estate
for a
new
warehouse and working capital.
Office—
c/o Edward H. Altschull, President, 1027 Jefferson Cir¬
cle, Martinsville, W. Va. Underwriter—Securities Trad¬
ing Corp., Jersey City, N. J.
.
-vy.;/.
i.:

Arnold

Altex

Aluminum

Bargain City, U. S. A., Inc.
Dec. 29 filed 5,000,000 shares of class A common stock.
Price—$3 per share. Proceeds—For expansion ana ac¬
quisition or leasing of new sites. Office—2210 Walnut

Street, Philadelphia, Pa.

Underwriter—None.

Bellechasse Mining Corp. Ltd.
29 filed 800,000 shares of common

Oct.

stock.

Price—

Related to the market price on the Canadian Stock Ex¬
change, at the time the offering is made. Proceeds—To
be applied over the balance of 1958 and the next three

follows: for annual assessment work on the com¬
pany's properties (other than mining claims in the Mt.
Wright area in Quebec); for general prospecting costs;
and fdr general administration expenses.
Office—Mont¬
real, Canada. Underwriters—Nicholas Modinos & Co.
(Washington, D. C.) in the United States and by Forget
•*c Forget in
Canada. '

Big Bromley, Inc., Manchester, Vt.
9 filed 6,000 shares of common
stock, $300,000 of

Dec.

Co.

debentures

notes

tures
five

due
to

MARKET

FOR SECURITIES!

Chicago and Mid America there

■who

own more

are

1,400,000 investors

than $20 billion in stocks. You

can

best interest

Tribune. The Tribune is the

Mid America. It is
tives. For

most

advertising in the Chicago
widely read newspaper in

preferred by business and financial

details, talk

to your

execu¬

Tribune representative today.

offered

shares.

1979,

and

common

$100,000 of 6%
stock and deben¬

units of $250 of

Price—Of

par..

•

Blossman Hydratane Gas, Inc. (2/2-6) "
Dec. 29 filed $1,200,000 of 5% subordinated convertible
debentures due Dec. 31, 1978 and
120,000 shares of com¬
stock

(par $1)

debentures

and

be supplied
term bank

offered
of

by amendment.

common

units

stock.

$500

Price—To

Proceeds—To retire

short-

loans, .and for working capital to be used for

general corporate purposes. Business—Sale and distri¬
bution of liquified petroleum gas.
Office—Covington,
La.

(£!)kago Orttrawe
T MI

WORLDS

Mid America's

CRIME ST

Underwriters—S. D. Fuller & Co., New York and
Howard, Weil, Labouisse, Friederichs & Company, New
Orleans,- La.
*
.

NEWSPAPER

•

most

widely circulated market table pages

(letter of notification)

15.000 shares

common

(par $1) to he offered for subscription by stock¬
holders of record Nov.
1, 1958 on the basis of one new

share
will

each

for

four

offered

current

held;

unsubscribed

creditors

part of claims, at the rate of

of claims

payment of all

share for each $4

one

discharged; rights to expire about two weeks

after mailing of offer. Price—$4 per share. Proceeds—
To pay current creditors.
Address — P. O. Box-506,

Bridgehampton, L. I., N. Y.

Underwriter—None.

Brookridge Development Corp.
Dec. 19 (letter of
notification) $200,000 of' 6% 15-year
convertible debentures.
Price—At par ($500 per unit).
Proceeds—For expansion and
working capital. Office—■
901 Seneca Ave., Brooklyn
27, N. Y. Underwriter —
Sano & Co., 15 William
St., New York, N. Y.
Carraco Oil Co., Ada, Okla. (1/15)
(letter of notification) 200,000 shares of common

Nov. 10
stock.

Price—$1.50

share. Proceeds — For general
Underwriter — Berry & Co., New
■
'//

per

Cemex of Arizona,

Inc.

Nov. 17 (letter of

notification) 300,000 shares of common
(par 25 cents).
Price—$1 per share. Proceeds—

For working capital.

Address—P. O. Box 1849, 3720 E.
Underwriter—L. A. Huey Co.,

32nd Street, Yuma. Ariz.

Denver, Colo.
Jan.
be

Hudson Gas &

filed

Electric

350,000 shares of

Supplied by

(1/26-27)

stock.

Price—To

Kidder, Peabody & Co., New

—

'^v/:\;-

■

'•

Dec. 31

due

Corp.

common

amendment. Proceeds—For construction

Underwriter

program.

Illinois

filed

Jan.

Public

Service

Co.
(1 27)
$12,000,000 first mortgage bonds, series H,
1989. Proceeds—For construction program.

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.: Blyth &

Co., Inc., Kidder, Peabody & Co. and Merrill Lynch,
Pierce, ITenner & Smith
(jointly); Eastman
Dillon,
Union Securities & Co. and Equitable Securities Corp.
(jointly); Salomon Bros. & Hulzler. Bids—Expected to
be received

up to

11:30

a.m.

(EST)

Jan. 27.

Champion Paper & Fibre Co. (1/15)
19 filed $20,036,400 of convertible subordinate de¬
bentures due Jan. 15, 1984, to be offered for subscription
Dec.

by common stockholders of record Jan.

Borman

Food

Stores, Inc.
Dec. 24 filed 404,900 shares of
of which 304,900 shares would

(1/21-28)
common

sold

held;
rights to expire on or about Jan. 29, 1959. Price—To be
supplied by amendment. Proceeds—To repay outstand¬
ing bank loans and for general corporate purposes,'in¬

cluding

for

(par $1),

account

additional

working capital and future capital
Underwriter—Goldman, Sachs & Co., New

expenditures.
York.

Chemical

Fire

Nov. 24 filed

Casualty Insurance Co.

210,000 shares of class "A" voting

common

stock and 210,000 warrants to subscribe to a like number
of shares of class "B" non-voting common stock.
Pur¬

chasers

the

class

"A"

will

receive

with

each

share purchased a warrant granting the right to purchase
for $10 per share one shares of class 'kB" stock for a

period of 18 months after the
sion to write insurance.

company receives permis¬
Price—$10 per share.
Proceeds

—For working capital. Office—2807 Sterick

phis, Tenn/

Bldg,, Mem¬

Underwriter—None.

Clute Corp.

Aug. 21 (letter of notification) 300,000 shares of common
(par one cent). Price—$1 per share. Proceeds—To

stock

additional ciosts of construction; and for retirement
obligations and working capital. Office — c/o John
Harlan Lowell, 2200 Kenton, Aurora, Colo. Underwriter
—Lowell. Murphy & Co., Inc., Denver, Colo/
pay

Combustion

Engineering, Inc.
64,011 shares of capital stock to be offered
in exchange for 81,002 shares of the
outstanding common
stock and for 2,131 shares of the
outstanding $100.par

Dec. 19 filed

preferred stock
at the rate of
tion

General

seven

Nuclear

Engineering stock for each

Commerce Oil

Engineering Corp.,

shares and 3.4302 shares of Combus¬

stock and each share of preferred
General Nuclear Engineering (of

Dec.

stock

14, 1959 at the

rate of $100 of debentures for each 22 shares then

debentures and

units, $500 each, and of

Proceeds—For general corporate purposes.
Business—A ski lift and school. Underwriter—None.

mon

these investors,in your securities with

due April 1,
April 1, 1980, the

common

notes, at

OPEN

working capital.
Wayne, Ind. Underwriter—
Co., Inc., Cleveland, Ohio.

Jan. 5 filed 250,000 outstanding shares of common stock.
Price—To be supplied by amendment. Proceeds — To

purchase com¬

BridgeKamptoti Road Races Corp^/
Oct. 23

years as

•

Feb. 17, 1958, filed 375,000 shares of

Reid

Central

stock.

trust

notes, second trust notes and construction loans.
Company may develop shopping menters-and build or
purchase office buildings. Office—900 Woodward Bldg.,
Washington, D. C. Underwriter—None. Sheldon Maga¬
zine, 1201 Highland Drive, Silver Spring, Md., is Presi¬

Fulton

York.

[at¬

grants the right to

at the rate of 30 shares for
$1,000 principal amount of notes at the price of
per Share/ Price—At par.
Proceeds — To reduce

ir Central
common

Proceeds—For

Bargain Centers, Inc. (1/15)
20
(letter of notification) $300,000

30,000

warrant

current short-term indebtedness and for
Office — Bluffton Rd., Fort

■

•

stock of the
company

stock

and

Growth

tached/ The
mon

corporate purposes.
York. ' /;■://///

filed 400,000 shares of common stock (par
cents). Price—$1 per share. Proceeds—To reduce out¬

standing

;

Instrument Corp.
J ;
(letter of notification) $300,000. principal amount
5-year 6% notes with stock purchase warrants

Feb. 10,1958,

ordinated

Inc.,

Oct. 30 filed 487,897 shares of common stock. Price—At
market.
Proceeds—For
investment.
Distributor—Ed¬

Under¬

Emanuel, Deetjen & Co.,

Nov.

amendment.

Enterprise Fund,

loans.

Bankers

—At

Y.)

bank

Feb.

American

and

Life Assurance

short-term

writers—Lehman Brothers and

if Bowmar
Dec. 30

Proceeds —— To reduce

Nov. 13 filed 5,000,000 shares of common stock,

(par $2.50).

Proceeds—To increase capital and

Office—Atlanta, Ga. Underwriter—None. State¬

Nov. 24 filed 100,000,000 shares of capital stock. Price—
Two cents per share. Proceeds—To selling stockholders.

Underwriter—

stock

Oct. 16 filed 250,000 shares of common stock
per

com¬

by amendment.

—

each

Price—$5

be supplied

Office—North Station, Boston 14, Mass.
Weston W. Adams & Co.,
Boston, Mass. <

$7.50

surplus.

100,000 shares for account of the

Price—To

Boston Garden-Arena

ir Automatic Canteen Co. of America

cago

REVISED

Nov. 24

Dec. 23

Corp., Portland, Ore.

Properties Inc.
Dec. 29 filed 685,734 shares of capital stock (par $1) to
be offered/for subscription by stockholders at the rate

ITEMS

Corp.
(letter of notification) 2.150 shares of common
stock (par $1). Price—At-the-market (estimated at $23
per share).Proceeds
To go to selling stockholders.

Pe offered for the account of a

All-State

PREVIOUSMSSUi

con-

(letter of notification) an estimated 1,923 shares
of common stock (par $2.50) to be offered to eligible
employees through a payroll deduction plan. Price—At
market (approximately $26 per share).
Proceeds—For

•

ADDITIONS

SINCE

50,000 out¬
cent). The
sale for the
shares will

Publishers, Inc., Portland, Ore.
Nov. 28 (letter of notification) 22,000 shares of common
stock (par $1).
Price—$8.50 per share. Proceeds—For
general corporate purposes. Office—665 S. Ankeny St.
Portland 14, Ore. Underwriter—First Pacific Investment
>

stockholders and

Thursday, January 8, 1959

Proceeds
—For general corporate purposes. Underwriter—Shields
& Co., New York.
' /V
-y//

Inc.

/ertible preferred slock

•

pany.

Nov. 24 filed 300,000 shares of 20-cent cumulative

—To

Registration

★ INDICATES

Securities

Refining Corp.

stock,

common

respectively, of

Dunedin, Fla.).
.

16,1957 filed $25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000.00 of subordinatea debentures due
Oct. 1, 1968 and 3,000,000 shares Gf common stock to be

189

Volume

Number

5810

The Commercial and

Financial Chronicle

(135)
offered in units as follows: $l,00u of bonds and 48 sharet
of stock and $100 of debentures

Consolidated

nine shares of stock

Price—To be supplied

by amen^nentl * Proceeds
Tc
construct refinery. Underwriter—Lehman
Brothers, New *
York. Offering—Indefinite.
\ MV..
^

—

Commercial Investors Corp.

Nov.

mon

stock.

(letter of notification)
Price—At

investment.

ceeds—For
Lake

900,000

per

com¬

share).

Pro¬

Office—450. So.> Main

St.,

City^Utah. Underwriter—Earl J. Knudson

Salt Lake-

City, Utah.-

-i:

':r

Commonwealth Edison

.•

Pee. 18 filed $20,000,000 of sinking; fund

Salt

Co.,

debentures, due

Jan.

1, 2009.. Proceeds—To be added, to forking capital
ior ultimate! application toward the : cost of
property

^additions; and improvements; Uhderwriter^Td be'determined by competitive
Stuart & Co.
ton

Corp.

(CST)

bidding! Probable bidders: Halsey,

Inc.; Glore, Forgan & Co.; The First Bos¬

Bids—Expected to be received
Jan.

on.

Chicago 90, 111;

at-Boom

1820, \72

10:30

up to

West

filed

a.m.

Adams

St.,

Co.

maximum

New

York,

Inc.

$59,778,600 of convertible
debentures due Aug. .15, 1973, to be offered for sub¬
scription by common stockholders at the rate of $100
principal amount of debentures for each 25 shares of
held

of record

Jan.

26, 1959; rights to expire
on
Feb. 13.
Price—100% (flat).
Proceeds—To repay
short-term bank notes, and for additions to
utility plant.

Underwriters—Morgan Stanley & Co. and The First Bos¬
ton Corp., both of New York.
Consumers

;

(1/13)!!

Co..

Dec.

stock

(10 cents

par

Edison

(1/27)

Oct.

Cooperative Association,

Kansas City, Mo.
29 filed $6,000,000

5Vz%

25-year Subordinated

(Bids 6:30 a m. psr> $15:000;000

...

—For retirement

maturing certificates of indebted¬

ness, redemptions on request of certificates of indebted¬

prior to maturity and of 5J/2% preferred stock; the
possible improvement and expansion of present facili¬
ties; and the acquisition of manufacturing plants and
crude oil

properties if favorable opportunities therefore
Underwriter—None.

(No

underwriter)

(Offering to stockholders—underwritten by The First Boston

January 12
(J^idderi. Eeabody
-

(The First Boston Corp.

and

40.000

(Bids

$2QG,000

Borman Food

debentures
sharesrC.

common

—*.

(Equitable Securities

v.,;

Corp. )

Indiana

Vita

Products, Inc.

January 13 (Tuesday)

!"
(Bids 10:30 a.m. CST > $20,000,000
First National Batik & Trust Co., Tulsa, *-;.,
v

(Offering to

EST.)

a.m.

Bonds

$20,000,000

(Thursday)

Corp.—

Common

(Offering

Common
Hentz &

Corp.

stockholders—underwriten

Robinson,

and

Humphrey

The

Co.)

First Boston
33,000 shares

Common

(Offering to stockholders—underwritten by Clark, Dodge &c Co.)
$4,000,000

__Common

Co.)

Common

National State Bank
r

stockholders—underwritten, lay Merrill Xyncii,
Smith)-$2,?00-,000

January 26
Central

Gulf States Utilities Co..—___l-,ll*i____Preferred
(Bkts

EST)

a.m.

S10';000 .,000

i;■

Hudson

(Monday)

(Kidcfer, Peabody & Co.)

Holiday Inns of America. Inc

-ll.Common

Corp..

(Offering

Kaman Aircraft Corp...
<Pair.e,

Securities

Curtis)

Central Illinois Public

$1,250,000

(Bids

Pacific National Bank of San Francisco..Common
(Offering

stockholders—underwritten

Resistof 1 ex Corp.
1?~'

(Baehe

byBlyth 6c Co.,
74,511'shares:;", ;'

Eiworthy:Co.)

and

■

______

Co.i

January 14

•!-_•. lu j _Common

General Telephone Co. of Florida..
Stone

Webster

February 2

(Monday)

Fuller

Wood;"Gundy* &

Co.)

debentures

and

(Dean. Witter

Smith

and

Co.

(Wednesday)

February 4
Southern

Inc.)

..Common

(Bids 11

a.m.

EST) between $40,000,000 and $45,000,000

Co.)

Public Service Co. of

$2,000,000

January

Carraco Gil Co

(Bids

$300,000^
Gulf

(Offering to stockholders—underwritten by Goldman, Sachs
$20,030,400

Heliogen Products, Inc..
■

(Albion

Hilton

Credit

Co.)

$144,000

Corp..

Alabama

Common

Kansas Power &
(The

Co.

1.942.570

Boston

275,000

Lehman

; "■

Morgan &

Co.)

BlairCo.

ana

Stern,

Frank,

Gulf

Common

Meyer & Foxi

(Bias

(

noon

Fuller

Seiberling Rubber Co.
(Offering

Dillon,

invited)

$20,000,000

$803,000

].•

106,841

(Tuesday)

invited)

Bonds

Co
$25,000,000

(Thursday)

Bonds
invited)

Eastman.

September 10
to

(Thursday)

(Offering to-stockholders—underwritten by Johnston, Lemon
Co.; Eastman
Dillon, Union Securities & Co. and
$7,500,000

Price—$1
share. Proceeds—BCr new equipment, repayment of
loan, acquisition of properties under option, and other
corporate purposes. J)ffice—Toronto, Canada, and Em¬
porium, Pa. Underwriter—None.

^ Diversified Development, Inc.
(letter of notification) 75,000 shares of common
(par $1). Price—$4 per share. Proceeds—For real
estate development business.
Office
111 Linden
St.,
Reno, Nev. Underwriter—None.

Dec. 30
stock

+ Diversified Inc., Amarillo, Texas
6 filed 300,000 shares of common stock
(par 50
cents). Price—$3 per share. Proceeds—For acquisition
of undeveloped real estate, for organization or
acquisi¬
Jan.

tion

used

consumer

for

working

finance

Bell
Power

invited)

Telephone

$18,000,000

Debentures

$40,000,000

Co., Denver, Colo.,

stock.

Price—At

Underwriter
on

balance
—

($10

Investment

best efforts basis.

common

share).
Proceeds—For
drilling and development of oil properties. Office—104
City Hall, Minden, La. Underwriter—None.
par

per

Dyckman Hotel Associates
31 filed 128 participations in
partnership interests,
Price—$10,000 per unit. Proceeds

Dec.

to be offered in units.

reimburse partners for money

advanced by them,
the balance due under the purchase contract, and
to defray costs incident to the acquisition of Hotel
Dyck¬
man in Minneapolis, Minn.
Office — 60 East 42nd St.,
New York, N. Y. Underwriter—None.
to pay

Edg;comb Steel of INew England, Inc.
5 (letter of notification) 30,000 shares of class A
common stock (par $5).
Price -$10 per share. Proceeds
—To pay off current notes payable to bank and to in¬
crease
working capital. Office — 950 Bridgeport Ave.,
Milford, Conn. Underwriter—None.
;
ic E-l
Jan.

Mutual Association

(letter of notification) 5,000 shares of class B
special stock to be offered for subscription by employees
Thomas

Edison, Inc., and subsidiaries

(Bids to be Invited)

$20,000,000

Invited)

its

suc¬

Price—$10 per share. Proceeds—•
To be held in a redemption fund. Office—180 Main
St.,
West Orange, N. J. Underwriter—None.
Ethodont

Laboratories, Berkeley, Calif.

Feb. 20, 1958, filed 300,000 shares of common stock. Price
—At par ($5 per share). Proceeds—To cover operating
tion.

during the development period of the corpota-

Underwriter—None.

Federated Corp. of Delaware
29 filed $918,000 of 6% convertible

subordinated

debentures due 1968.
The company proposes to offer
$210,000 of the debentures to purchase the capital stock
of Consumers Time Credit, Inc., a New York
company;
$442,000 of the debentures in exchange for Consumers

debentures; and $226,000 of the debentures in exchange
outstanding 12% debentures of three subsidiaries
Y.

Office—1 South Main

Street, Port Chester,

Underwriter—None.

Federated
17

Finance

Co.

(letter of notification)

$300,000 of 10-year 6%
Price—At par (in de¬
nominations of $1,000 each). Proceeds — For working
capital, to make loans, etc. Office—2104 "O" St., Lin¬
coln, Neb. Underwriters — J. Cliff Rahel & Co. and
Eugene C. Dinsmore, Omaha, Neb.
Dec.

For

16 filed

debentures.

Industry, Inc.

200,000 shares of class A

common

stock.

Price—At par ($1.50 per share).

Bonds

Pennsylvania Power Co

and this issuer.

cessor

Finance

Bonds

(Bids to be

business,. and

capital.

ic Dorcheat Drilling; & Development Corp.'
Dec. 30 (letter of notification) 10,000 shares of

Bonds
be

Underwriter—None.

per

of Federated.

(Bids to be Invited)

Ave., Olympia, Wash.

for the

$5,000,000

Postponed Financing
Michigan

Government Employees Variable Annuity
Life Insurance Co.
Common

Fund)

—

Fourth

senior subordinated

Common
Common

underwritten

Co.)

i Daw Corp.
23 (letter of notification)
4,000 shares of common
stock (consisting of 1,400 shares of class B
voting stock
and 2,600 shares <3f class A
non-voting stock). 'Price—At
par ($25 per share).
Proceeds — For acquisition of a
bowling alley operation business.
Office
2519 East
Dec.

•

Georgia Power Co

..1
be

loan; purchase of plant and
raw materials and supplies; and for
working capital, etc. Office—U. W. National Bank Bldg.,
equipment;

Dec.

(Thursday)

Mississippi Power Co
(Bids

For repayment of

—

office

expense

Bonds

June 25

Montana

Abacus

(Thursday)

(Bids

ceeds

Nov.

Union Securities &

$7,000,000

$10,000,000
150,000

Co.)

stockholders—to

January 20

invited)

Bonds

EST)

(Monday)

Industro Transistor Corp
(S.

$50,000,000

$900,000 " —"

States Utilities Co

April 30
Power

(Bids

January 19

.Bonds

•

Brothers)

.........Common

Robert H. Green is President.

Cryogenic Engineering; Co.
Sept. 22 (letter of notification) 150,000 shares of clas9 A
common stock (par 10
cents). Price—$2 per share. Pro¬

(Thursday)

Southern Electric Generating

.Debenture*

United Pacific Aluminum Corp..:.
(D.

87,443,100

Surrey Oil & Gas Corp.
(Peter

shafts

. _

stockholders—underwritten

invited)

May 28
Common

Corp.)

Smith-Corona Marchant, Inc
(Offering

Light Co.

First

Proceeds—For investment.
Sales Corp., St.

Research

—

Louis.

(Wednesday)

Bonds

(Bids

(Offering to stockholders—underwritten by Carl M. Loeb,
Rhoades

Bonds

$25,000,000

Co
(Bids

....Common

Securities

Power

•

April 2

Champion Paper & Fibre Co.—_h_—-Debentures
Co.)

be invited)

Illinois Bell Telephone Co....

Common
(Berry & Co.)

Indiana, Inc.____

February 25

Common

(Securities Trading Corp.); $300,000-

(Bids

(Thursday)

Bargain Centers. Inc.—^..Debentures

(Tuesday)

February 17

/...Debentures

Polian

Fund, Inc., St. Louis, Mo*
100,000 shares of capital stock, (par ono

Dec.

$75,000,000

Southern California Water Co

Research

cent).
Price—At market.
Underwriter
Counselors

—To

Debs.

Securities

Co.,

num¬

Inc..—Debens. & Com.

$1,200,000

120,000 common

Temple ton)- $12,000,000

Co.,'.Inc.' and

—Bonds

$12,000,000

stockholders—to

Preferred

Ontario (Province of), Canada..-.'.....Debentures
(Harrimah Ripley

Blossman Hydratane Gas,
(S.

Webber, Jackson & Curtis;
Corp. and Mitchmr., Jones &c

EST)

underwritten by Morgan
Stanley & Co. and The First Boston Corp.) $59,778,000

(Offering

(Wednesday

undetermined

Office—Frick Bldg., Pittsburgh, Pa. Under¬

Counselors

(Tuesday)

Service

a.m.

Equitable

Consolidated Edison Co. of New York, Inc

Inc.

100,000 -Shares'

(Paine,

11:30

35,298

Corp.)

January 27

..........Debentures

Webber. Jackson &

,v._ *>•/..

Common

stockholders—underwritten

Cory.;, Dean Witter & Co.; and Carl 2ft.
Loeb, Rhoades & Co.) 500,000 shares

;

Common

350,000 shares^

(The First. Boston

Gas & Electric Corp

Kaiser Industries

the market.

Service

Pierce, Fenner

■

common stock (par
$5) to be offered to
employees pursuant to Employees Stock Purchase Plan*
Price—At average cost per share purchased on the
New
York Stock Exchange. Proceeds—To
purchase stock in

—

(Friday)

Owners Life Insurance Co....

(Offering to stockholders—underwritten by H.

404,900 shares

Co.)

Mobile Gas Service Corp

Commonwealth Edison Co... _^Debentures

Okla.

January 23
Home

(Granberry... Marache & Co.) 12,000 shares

(letter of notification)

June 5 filed 350,000 shades of common stock.

Common

(The First Boston Corp. and Lester, Ryens & Co.) 300,000 shares

Common

ber of shares of

Derson Mines Ltd.

(Wednesday)

January 22
Rohr Aircraft

★ Copperweld Steel Co.'
Dec.

$35,000,000

Michigan Electric Co

Food

EST)

a.m.

Bonds

—

Stores, Inc

(Bids

Common

1,000,000

Tractor Suoply Co.__—...
-.w.;.^Common
-.(Dempsey-Tegeler & Co.) 480,000 shares
...

(Shields

Rochester Telephone Corp.
"__l__„_Common
(Offering-to stocJ^blders—underwritten by The First Boston
r.Gacy ; -105,312 shares

Spur Oil Co...

Common

and Dean Witter & Co.) 500,000 shares

January 21

Debentures & Com.

Inc.)

40,000

Southern Natural Gas Co

(Monday)

Co.,

Corp.)

Southern California Edison Co

$600,000

Natural Gas Service Co,—

-r-

1740 Broadway, Denver, Colo. Underwriter—L. A.
Huey,
Denver, Colo,

Transistor

Underwriter
Morgan.
Statement has been with¬

Co., New York.

ness

Rockiand-Atlas National Bank of Boston__Common

January 9 (Friday)" " V V
:
Corp.________I^___x-./Common

Silicon

drawn.

Feb. 5, 1958, filed

;

Stanley

patronage refunds). Price—For certificates at $100 per
unit; and the preferred stock at $25 per share. Proceeds

San Diego Gas & Electric Co;-.;iLtl:!:Delwiitiirei
•

provement of service facilities.

writer—None.

arise.

.....

Consumers Power Co.

certificates of indebtedness, and 60,000 shares of 5^%
preferred stock (cumulative to extent earned before

NEW ISSUE CALENDAR
vV-V-.January 8 (Thursday)

•

Aug. 29 filed 150,000 shares of preferred stock (no par).
Price—To be supplied by amendment. Proceeds—To
rppay short-term bank loans and for expansion and im¬

$8,000,000

capital.
writer

Proceeds—For working
Office—508 Ainsley Bldg., Miami, Fla. Under¬
R. F. Campeau Co., Penobscot Bldg., Detroit,

—

Mich.
Southwestern Bell Telephone

(Bids to be invited) $110,000,000

Debentures

Continued

page

The Commercial and Financial Chronicle

(136)

Continued
:

Florida

from

For

Builders, Inc.

Great

Dec. 1 filed $4,000,000 of 6% 15-year sinking fund sub¬
ordinated debentures and 40,000 shares of common stock,

principal amount of deben¬

to be offered in units of $100
tures and
unit.

share of

one

common

Price

stock.

-r-

$110 per

Proceeds—For

purchase and development of sub¬
division land, including shopping site; for new equip¬
ment
and
project site facilities; for financing ex¬
pansion program; and for liquidation of bank loans and
other corporate purposes.
Office—700 43rd St., South,
St. Petersburg, Fla. Underwriter—None.

+ Florida Public Utilities Co.
32,500 shares of cumulative convertible
preferred stock (par $20). Price — To be supplied by
amendment.
Proceeds—To finance part of company's

Jan.

filed

Underwriters—White, Weld & Co.,
Starkweather & Co., and Clement A. Evans & Co., Inc.

construction program.

Dec.

Port

& Terminal

Co.

Nov. 25 filed 2,138,500 shares of common

stock (par $1).
Proceeds—To pay short-term
loan's and for completing company's Port Development
Plan and rest added to general funds.
Office — Fort
Price—$1.25

share.

per

will
the company's employees, and
dealers, wholesalers and dis¬
tributors and their employees at $1.65 per share: and
100.000 shares will be offered to general public at $2
per share. Proceeds—To satisfy creditors' claims and for
general corporate purposes. Office—41 E. 42nd St., New
York 17, N. Y.
Underwriter—Mortimer B. Burnside &
Co., Inc., New York 5, N. Y.

-Ar Gas Light Co. of Columbus
Dec. 30

(letter of notification) 15,000 shares of common
Price — $19 per share. Proceeds—For
working capital. Office — 107 13th St., Columbus, Ga.

stock

(par S4).

Underwriter—None.
General

Alloys Co.
(letter of notification) 45,250 shares of common
etcck (par $1) of which 16,900 shares are to be offered
to employees and the remainder to the public.
Price—
Nov. 17

To employees, $1.1805 per share.
Proceeds—To purchase
install machinery and equipment.
Office—367-405

Underwriter—William S

St., Boston, Mass.
Co., Boston, Mass,

Presc-ott &

General Aniline & Film Corp.,

and 1,537,500 shares of

common

B stock

Underwriter—To be determined by competitive biddinf
Probable bidders: B'iyth &c Co., Inc., and The First Bo»
ton

Corp.
(jointly);
Kuhn,
Loeb
& Co.;
Lehman
Brothers, and Glore, forgan & Co. (jointly). Blda-- H*c
been scheduled to be received up to 3:45 p.m. (EDT) oj
May 13 at Room 654. 101 Indiana Ave., N. W., Washing
ton 25. D.

C..

but

bidding

oostoonpd

he*

General

Telephone Co. of Florida (1 14-15 )
Dec. 23 filed 480,000 shares of $1.30 cumulative preferred
stock,, series B. Price—At par ($25 per share). Proceeds
•—To repay bank loans.
Underwriters—Paine, Webber,
Jackson & Curtis and Stone & Webster Securities
both of New York

and

Boston;

and

Templeton, Los Angeles. Calif. There is
ment

Corp.,

Mitchum, Jones &
no

firm commit¬

by the underwriters to acquire the stock.

Employees Variable Annuity Life
Co.
(1/20)
Nov. 13 filed 2,500,000 shares of common stock (par $1)
to be offered by company on or about Jan. 20, 1959 viz:
Insurance

(1) to holders of

common

Employees Insurance Co.,

stock (par

$4) of Government

the basis of one warrant per
1959 (1,334.570 shares are
outstanding); (2) to holders of common stock (par
$1.50) of Government Employees Life Insurance Co., on
the basis of IV2 warrants per share of stock held on Jan.
6, 1959 (216,429 shares are now outstanding); and (3) to
share of stock held

common

ployees Corp.,

stock

(par $5) of Government Em¬
the basis of V2 warrant per share of

ctock held on Jan. 6,1959 (as of Sept. 30, 1958 there were
143,127 shares of stock outstanding and $614,360 of 5%
Convertible capital debentures due 1967, convertible into
shares of common at $28.0374 per share.
If all these
debentures were converted into common stock prior to
the record date, a total of 164,724 common shares would
be outstanding. Warrants will
expire on Feb. 10, 1959.
Price—$3 per share. Proceeds—For capital and surplus.
Office
Government
Employees Insurance Building,
Washington, D. C. Underwriters — Johnston, Lemon &
Co., Washington. D. C.: Eastman Dillon, Union Securities
& Co., New York; and Abacus
Fund, Boston, Mass.
Grain Elevator Warehouse Co.
Nov. 3 filed 100,000 outstanding shares of common stock
<par 10 cents). National Alfalfa Dehydrating & Milling

Co., holder of the
offer

100,000 common shares, proposes to
stockholders preferential warrants to sub¬
98,750 shares of Grain Elevator stock on the

its

basis of one warrant to purchase
one-eighth share of
Grain Elevator stock for each share of National Alfalfa
held

common

Price—$2
Office

—

per

927

Nov. 17, 1958; rights to expire Dec. 31.
Proceeds—To selling stockholder.

share.

Market

Street,

Wilmington, Del.

Under¬

writer—None.
•

offering.]

convertible

common

Address—P.

stock

preference
held

stock for
about

each

Nov.

Box-348, Albany, N. Y. Under¬

Heliogen Products, Inc. (1/15)
(letter of notification) 28,800 shares of common
(par $1).
Price—$5 per share.
Proceeds—For

payment

of past due accounts and loans and general
working capital. Office — 35-10 Astoria Blvd., L. I. C.
3, N. Y. Underwriter—Albion Securities Co., Suite 1512,

Broadway, New York 4, N. Y.

Highland Telephone Co.
Dec. 29 (letter of notification)
2,250 shares of common
stock (no par) to be offered for
subscription by com¬
mon stockholders.
Price
$45 per share. Proceeds —
—

bank loans and for construction of

187,534 shares of common stock (par $5)
being offered in exchange for outstanding common stock

of Sunrise Supermarkets
Corp. at the rate of one share
stock for each 2.409 shares of Sunrise
stock.
The offer was declared effective as of Dec.
of Grand Union

31,

tele¬

Highway Trailer Industries, Inc.
24

filed 473,000 outstanding shares of common
(par 25 cents). Price—At prices generally prevail¬
ing on the American Stock Exchange.
Proceeds — To

stock

selling

stockholders.
Underwriter—None.

Office—250

Hilton Credit Corp.,

Park

Beverly Hills,

Avenue,

record

the rate of

offered

1,942,570 shares of
for

about

common

Calif.
stock

(par $1)

subscription by common stockholders
15 or 16, of Hilton Hotels
Corp.

Jan.

one

will

Proceeds

—

supplied
Together with bank loans,

comprise the operating funds of Hilton Credit and

will be used for general corporate
purposes
and to
finance the company's
purchase of charge accounts from
Hilton Hotels and other establishments who
may

honor Carte Blanche cards.

Underwriter

—

agree

Carl

Loeb, Rhoades & Co., New York.
Hinsdale
Dec.

29 filed

Raceway, Inc., Hinsdale, N. H.
capital trust certificates evidencing 1,000,-

capital stock, and 2,000 debenture notes.
stock at par ($1 per share) and the
notes in units of
$500 each. Proceeds—-For construction
of a track,
including land, grandstand, mutual plant
building, stables and paddock, dining hall, .service build¬
ing, administrative building, penthouse, tote -board and
clubhouse.

Price—To be sup¬

Production Co.,

Tulsa, Okla.

of common stock (par $5).
Proceeds—For working capital and
purposes.
Office — 2202 Philtower

share.

per

Underwriter—None.'

750,000 shares of

Price—$1

stock.

common

new

& Michigan Electric Co.
(1/21)
filed $20,000,000 of first mortgage bonds due
1988. Proceeds—To retire bank loans used for

program.
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Eastman Dillon, Union Securities & Co.; The
First Boston Corp.: Harriman Ripley & Co/ Inc. Bids—

Expected to be-received

to 11

a.m.

(EST)

Jan. 21.

Industrial Minerais

Corp., Washington, D. C.
iuly 24 filed 600,000 shares of common stock (par one
:ent). Price—$1 per share. Proceeds—To develop and
jperate graphite and mica properties in Alabama.
UnWwriters—Dearborn & Co. and Carr-Rigdom & Co.,
both of Washington, D. C., on a best efforts basis. State¬
ment effective Nov.
•

18.

Industro Transistor

Corp.

(N. Y.)

(1/19-23)

Feb. 28, 1958, filed 150,000 shares of common stock (par
10 cents): reduced to 135,000 shares by amendment subse¬

quently filed. Price—To be related to the market price.
Proceeds—For

working capital and to enlarge research
development department. Underwriter—S. D. Fuller
Co., New York. '
^

and

International

Bank, Washington, D. C.
of notes (series B, $500,000, twoyear, 3% per unit: series C, $1,COO,000, four-year 4% per
unit; and series D. $3,500,000, 6-year, 5% per unit). Price
—100% of principal amount.
Proceeds — For working
Dec. 29 filed $5,000,000

capital.

Underwriter—Johnston,
ington, D. C.
Investment Corp.

Oct. 9

Lemon

Co.,

Wash¬

of Florida

(letter of notification)

55,555 shares of

common

stock

(par two cents). Price—$4.50 per share. Proceeds
—For capital account and paid-in surplus.
Office—At¬
lantic

Federal

Building, 1750 E. Sunrise Boulevard, Ft.
Underwriter—None.

Lauderdale, Fla.
Israel

Investors Corp.

Dec. 1 filed

46,260 shares of common stock. Price—$100
Proceeds—For investment. Office—19 Rector

share.

per

Street, New York, N. Y. Underwriter—None.
Inc.

Itemco

Nov. 28 (letter of

notification) 200,000 shares of common
Price—SI per share. Proceeds—To
acquire machinery and equipment and additional space
for test laboratories; and for working capital. Office—
4 Manhasset Ave., Port Washington, L. I., N. Y. Under¬
writer
B. Fennekohl & Co., 205 East 85th St., New
York, N. Y.
stock

(par 10 cents).

—

•

Jackson's

Dec.

and

Minit

Markets,

filed 250,000 shares of

Price—$3

per

Inc.
common

stock

(par $1).

share. Proceeds—For acquisition

of land

construction of stores prior to their sales to

others
the company; for the equipping
and stocking of its stores, and for general operating pur¬
poses.
Office — 5113 Fairmont St., Jacksonville, Fla,
Underwriters—Pierce. Carrison, Wulbern, Inc., Jackson¬
ville,

Fla.; Courts & Co., Atlanta, Ga.; and The John¬
Space Corp., Savannah, Ga.
Offering—Ex¬
pected today (Jan. 8).
;

son,

Lane

share of Hilton Credit stock for each

two shares of Hilton Hotels stock. Price—To be

by amendment.

1959.

and their lease-back by

(1/15-16)

1958, and has been extended.

^ Grande Oil & Gas Co.
Dec. 22 (letter of notification)
300,000 shares of common
ctock (par 10 cents). Price—SI per share.
Proceeds—

new

phone plant. Office—145 North Main St.. Monroe. N. Y.
Underwriter—None.

18 filed

23,

116,667 shares

corporate

Nov.

stock

Dec.

of Jan.

construction

Oct. 22

•

held

filed

Sept.

1,
1958. Stockholders will have 45 days in which to exer¬
cise* the ^rights. Price —At par. Proceeds — To repay
debts, acquisition of investments, and for general pur¬

Nov.

be of¬

Indiana

Development Corp.
Oct. 23
(letter of notification) 22,820 shares of non¬
voting convertible preference stock (par $12) to be
offered for subscription by stockholders on the basis

Price-—The

filed

(1/13)

Heartland

To repay

(1/23)
stock

packing houses,
for purchase of citrus groves and for the planting of new
groves.
Office—Tel Aviv, Israel. 1 Underwriters—None.

Stone

mencement of such

Co.

common

share. Proceeds—To be used for

per

[The registration includes an ad¬
ditional 588,000 common shares issuable upon exercise
of 1,176,000 options rights previously offered (Oct. 19r
1957),
which rights
entitle
the
original
purchaser
thereof to purchase one-half share of stock at 50 cents
per share at the expiration of
13 months after com¬

poses.

Insurance

amendment.

Dec. 23 filed

Underwriter—None.

portions of construction
Securities Corp., Nash¬

I. C. P. Israel Citrus Plantations Ltd.

common stock (par 25
Price—$2 per share. Proceeds—To acquire funds
test drill, explore, and develop oil and gas properties

000

Grand Union Co.

Oct.

Utilities Co.

Corp;

their families)

stockholders (for a 14-day
the basis of one additional share for each

Bldg., Tulsa, Okla.

Hamilton Oil & Gas Corp.
filed 1,000,000 shares of

general

Oct. 22

one

Price—$6

New York 15, N. Y.

Life

153,840 shares of

Home-Stake

(jointly); Glore, Forgan & Co. and W. C. Langley & Co.
(jointly). Bids—Expected to be received up to 11 a.m.
(EST) on Jan. 13 at The Hanover Bank, 70 Broadway,

current

subscription

Nov.

& Webster Securities Corp.;
Kuhn, Loeb & Co. and Salomon Bros. & Hutzler (joint¬
ly); Lehman Brothers and Equitable Securities Corp.

—

scribe

(1/19)
first

filed

Higginson

and

Proceeds—For working capital.
Lauderdale, Fla. Underwriter—H. Hentz &
Co., New York. Offering—Expected late in January.

100,000 shares of cumulative preferred
stock (par $100).
Proceeds—To repay bank loans and
for construction program.
Underwriter—To be deter¬
mined by competitive bidding.
Probable bidders: Lee

Jan. 6,

now

holders of

$10,000,000

States

for

plied

mortgage bonds due
loans and for construc¬
tion program. Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsev, Stuart &
Co. Inc.; Lehman Brothers; Merrill Lynch, Pierce, Fenner & Smith and White Weld & Co.
(jointly): Stone &
Webster Securities Corp.; and Salomon Bros. & Hutzler
and Eastman Dillon, Union Securities & Co. (jointly).
Bids—Expected to be received up to noon (EST) 011 Jan.
19 at The Hanover Bank, 70 Broadway, New York
15,Nj.Y.
11

the

Owners

filed

two

Proceeds—To repay bank

Gulf

President

share for each four shares held.

Office—Fort

writer—None.

Government

Home

fered

effective Dec. 19.

filed

new

Underwriter—Equitable

standby)

New York

(par #1)
Proceeds—To the Attorney General of the United State*
par)

•

Washington, D. C. Underwriter—None. Statement

(1/26-30)

Inc.

ville,. Tenn.

(par $1.80). Price—$5.35 per share. Proceeds—To
capital and surplus.
Office—815 15th Street,

1989.

one

complete

costs.

cents).

Jan. 14, 1957 filed 426,988 share* of common A stock (n»

and

increase

Dec.

Office—Tucson,

Price—To be supplied by amendment. Proceeds—In ad¬
dition to other funds, to be added to working capital

stock

N. W.,

Chairman and

at the rate of

Dec.

and

West First

the Board

Guaranty Life Insurance Co. of America
Nov. 14 filed 88,740 shares of class A common capital

Dec.

•

ic Holiday Inns of America,

10 cents), of which 30,000 shares

(par

Thursday, January 8, 1959

Dec. 30 filed 35,298 shares of common stock, to be offered
for subscription by common stockholders (other than

com¬

be offered for 30 days to
to the company's news

Pierce, Fla. Underwriter—Frank B. Bateman, Ltd., Palm
Beach. Fla.

Publications, Inc.
notification) 130,000 shares of

Gulf States Utilities Co.

shares of common
share. Proceeds—
For mining expenses. Office—4334 S. E. 74th Ave., Port¬
land 6, Ore.
Underwriter — Ross Securities Inc., NewYork, N. Y.
Pierce

(letter

stock

mon

Fluorspar Corp. of America

Oct. 14 (letter of notification) 133,333
ctock (par 25 cents). Price—$2.25 per

Fort

American

nines and in payment of indebtedness.
\riz.
Underwriter—None.
v

development of oil and gas properties. Office—407
University Bldg., Denver, Colo. Underwriter—None.

page

common

Underwriter—None.

^ Jay Peak, Inc., North Troy, Vt.
(letter of notification) 25,000 shares of common
stock.
Price—At par ($10 per share).
Proceeds — For
development of a ski area. Underwriter—None.
Dec. 31

•

Kaiser

Dec.

Industries

22 filed

Corp.

(1/13)

500,000 shares of common stock

(par $4).
supplied by. amendment.. Proceeds—To
selling stockholders.
Underwriters—The First Boston
Corp., Dean Witter & Co. and Carl M. Loeb, Rhoades &
Co., all of New York.
Price—To

Kaman Aircraft Corp.,
Dec.

filed

Bloomfield, Conn. (1/13)
convertible subordinated

$1,250,000 of 6%

debentures due 1974.

Price—To be supplied by amend¬

Proceeds—For working capital.
Undenvriter—
Paine, Webber, Jackson & Curtis, Boston, Mass.
ment.

Kansas

Power &

Light Co. (1/15)
shares of common stock (par $8.75).
supplied by amendment.
Proceeds—To

Dec. 22 filed 275,000

Hoagland & Dodga Drilling Co., Inc.
fune 12 filed 27,000 shares of
capital stock.
per

share.

Proceeds—-To be used

ploration of mines

and

development

Price—To

Price—$10

part for the ex¬
and operation oi

repay $6,500,000 of bank borrowings and
tion program.
Underwriter — The First

New York.

for construc¬
Boston Corp.,

Volume

Number 5810

189

Kimberly-Clark

The Commercial and Financial Chronicle

Corp.

ical

Dec. 30 filed 225,000 shares of common

stock to

of¬

can

Envelope

change

Co.

West

contingent

Carrollton,

Ohio.

acceptance

all

The

ex¬

the

Corp.

added

fered in exchange for the common stock of the Ameri¬

•

Mobile GasrfService

be offered for

rate of

Laure Exploration

Co.* Inc., Arnett, Okla.
common stock.
Price—$2
per share. Proceeds—For machinery and equipment and
exploration purposes. Underwriter—None.

Jan.

Dec. 23 filed 400,000 shares of

Life Insurance Securities

Corp.

and

Walter

Heller &

notification§ft),000

chase

shares of common
(par S5). Price—$5.50'per* ihare. Proceeds—To be

—-Suite

204, 8907 Wilshire J&vd.,

Beverly

Hills,

Mankato Citizens

Nov. 19

(letter of

stock/(no
holders

par)

the

'None.

one

share of

common

Box

"■'•XV'X'-. ".

44,
"

Windsor,
■"

Vt.

Underwriter—

'■'/

■

V >

notification! .1^,454

shares of

ic Mutual Enterprises, Inc.
Dec. 29 (letter of notification) 66,725 shares of class B
common stock (par $1). Price—$2.87 per share. Proceeds
—To lease or own warehouse facilities to simplify the
handling of merchandise; buying of merchandise for re¬
sale, and for working capital. Office — 860 Raymond
Ave., St. Paul 14, Minn. Underwriter—None.

common

one

new

for

each

seven

per

Underwriter—None.

National

Price—At par

Theatres, Inc., Los Angeles, Calif.
subordinated
debentures due March 1, 1974 and 485,550 common stock
purchase warrants to purchase 121,387 shares of $1 par
common
stock to be offered in exchange for National

capital.

Telefilm

if Market Improvement Co,

Dec. 30 filed $20,000,000 5V2% sinking fund

Jan. 2 (letter of notification) 543 shares of class A
stock

mon

and

1,940 shares of

class

common

com¬

stock.

($100 per share). Proceeds—For working
Office—6695 N. W. 36th Ave., Miami, Fla. Un¬

derwriter—None.

Merchants

Petroleum

Associates, Inc.

Co.

Oct. 8

each NTA share.
&

(letter of notification) 159,395 shares of common
(par 25 cents) being offered for subscription by
stockholders of record Nov. 24, 1958 on the basis of one
new share for each five shares
held; rights to expire
Jan. 15, 1959 (with an oversubscription privilege). Price
—$1.40 per share. Proceeds — To reduce bank loan;
to increase working capital and for general corporate
purposes. Office—617 W. 7th Street, Los Angeles, Calif.

★ Meyer-Blanke Co.
(letter of notification) 13,500 shares of common
stock (no par). Price—At the market (Midwest Stock
Exchange). Proceeds—To selling stockholders. Office—
Mo. Underwriter—Smith Moore

Mid-Atlantic Marina, Inc., Baltimore, Md.
Oct. 28 (letter of notification) 60,000 shares of 7% pre¬
ferred stock (par $3.50). Price—$5 per share. Proceeds—
For construction of a marina. Office
Room 104, Old
Town Bank Bldg., Baltimore 2, Md. Underwriter—Mary¬
land Securities Co.. Baltimore, Md.

Dec. 29

(letter of notification) 35,000 shares of common
(par $1) to be offered to employees under the
Employees Stock Purchase Plan as follows: 2,000 shares'

stock

and

4,716

28,284 shares to salaried

shares to

salaried

and

employees. Price—To salaried and non-salaried
employees, $1 per share and to salaried and non-salaried
future employees, $2.70 per share. Proceeds—For work¬
ing capital. Office—7601 N. W., 37th Ave., Miami, Fla.
Underwriter—None.

Dealer-Managers—Cruttenden, Podesta
Cantor, Fitzgerald & Co., Inc. and Westheimer

Natural

Gas Service Co.

(1/12-16)

subordinated income deben¬
tures due Jan. 15, 1984, and 40,000 shares of common
stock to be offered in units of $20 of debentures and
four shares of common stock. Price—To be supplied by
amendment. Proceeds—For capital expenditures. Office
William St., Fredericksburg, Va.
Underwriter—
Kidder, Peabody & Co., Inc., New York.

—403

Naylor Engineering & Research Corp.
Sept. 29 (letter of notification) 300,000 shares of cumu¬
lative voting and non-assessable common stock. Price—
At par ($1 per share). Proceeds—For organizational ex¬
penses and first three months' operational expenses. Of¬
fice—1250 Wilshire Blvd., Los Angeles 17, Calif. Under¬
writer—Waldron & Co., San Francisco 4, Calif.
Nedow Oil Tool Co.

May 5 (letter of notification) 150,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—To
pay loan; to acquire fishing tools for leasing; and for
working capital. Office—931 San Jacinto Bldg., Houston,
Tex. Underwriter—T. J. Campbell Investment Co., Inc.,
Houston, Tex.
New
Dec.

Jersey Investing Fund, Inc., New York
200,000 shares of capital stock. Price—At

filed

Proceeds—For investment.

market.
and

Northern

Dec.

Investment Adviser

Distributor—Spear, Leeds & Kellogg, New York.
Insurance Co. of New York

filed

145,200 additional shares of capital stock
(par $12.50) being offered for subscription by stockhold¬
of record Dec. 23, 1958, at the rate of one new share
for each two shares then held; rights to expire on Jan.
19.
Price — $36
per
share.
Proceeds — To increase
5

ers

Military Publishing Institute, Inc.

Dec. 9 (letter of notification) 125,000 shares of common
(par 5 cents).
Price—$2 per share. Proceeds—
.For general-corporate purposes and working capital.

.stock

Office—55 West 42nd

capital and surplus. Underwriters—The First Boston
Corp. and Wood, Struthers & Co., both of New York.

Street, New York 36, N. Y. Under¬
writer—C. H. Abraham & Co., Inc., 565 Fifth Ave., New
York 17, N. Y.
Offering—Expected in latter part of

ic Northwest Natural Gas Co., Portland, Ore.
Jan. 7 filed $7,000,000 of first mortgage bonds due Feb.

January.

1, 1984.

—To be

Mfillsap Oil & Gas Co.

Dec. 23 filed 602,786 shares of
per

share.

Proceeds

K. Rubber, Inc., and O. K. Ko-op Rubber Welding
System, on an alternative basis. Proceeds—Of the public
offering, will be used for -additional working capital

and/or to
551

Rio

—

common

stock.

Price—$1

For additional working capital.
Underwriter—None.

Office—Siloam Springs, Ark.

Mississippi Chemical Corp., Yazoo City, Miss.
Dec. 24 filed 200,000 shares of common stock (par $5)
and 8,000 shares of special common stock (par $75).
Price—For common stock, $8.75 per share; for special
common
stock, $131.25 per share. Proceeds—For con¬
struction program, to purchase shares of Coastal Chem¬

service part

Grande

Price—To be supplied by amendment. Proceeds
used for partial payment of bank loans. Under¬

writer—Lehman Brothers,

New York.

Nylonet Corp.
Nov. 24 (letter of notification) 600,000 shares of common
stock (par 10 cents). Price—50 cents per share. Proceeds
—For working capital. Office—20th Ave., N. W. 75th St.,
Miami, Fla. Underwriter—Cosby & Co., Clearwater, Fla.
O. K.
Dec.
of

Rubber Welders,
filed 60,600 shares

Inc.

of common stock, $43,333.33

3*4% debentures maturing on or before May 6, 1965,

of the company's debt.

Ave.,

Littleton,

None.

Colo.

■

Office—

Underwriter—-«

,■/

Odlin

Industries, Inc.
Nov. 12 filed $250,000 of 5*/&% convertible debentures
and 250,000 shares of common stock (par 10 cents). Price
—Debentures at. 100%

ceeds—To purchase

and stock at $3 per share. Pro¬
textile mill, machinery, equipment

ahk^raw materials, and to provide working capital. Office
—375 Park Ave., New
York, N. Y. Underwriter—Harris
Securities Corp., New York, N. Y., on a best efforts basis.

Oil, Gas & Minerals, Inc.

Nov. 16 (letter of notification) 116,000 shares of common
stock (par 35 cents).
Price—$1 per share.
Proceeds—
For

development of oil and gas properties.
Office—ol3
Mart, New Orleans 12, La.
Under¬

International Trade

writer—Assets Investment Co., Inc., New Orleans, La.'
Ontario

(Province of), Canada

(1/14)
of 25 - year debentures duo
Feb. 1, 1984.
Price — To be supplied by amendment.
Proceeds
For capital expenditures. Underwriters —•

Dec.

filed

$75,000,000

—

Harriman

Ripley & Co., Inc. and Wood, Gundy & Co.,

Inc., both of New York.

Oppenheimer Fund, Inc.
5 filed 100,000 shares of capital stock.
Price—At
(about $10 per share). Proceeds—For invest¬
ment.
Office—25 Broad St., New York. Underwriter—»
Oppenheimer & Co., New York. Offering — Expected
sometime in February.
Dec.

market

if Pacific Automation Products, Inc.
Dec. 31 filed 60,000 shares of capital stock

—To

(par $1). P:1.co
Proceeds—To selling

supplied by amendment.

stockholders.

Underwriter—William R. Staats & Co., Los

Angeles, Calif.
ic Paramount Mutual Fund, Inc.
Jan. 2 filed 300,000 shares of capital stock.

Price—■Mini¬

Proceeds—For invest¬

purchase of shares is $2,500.

ment.

Office—404 North Roxbury

Calif.

Underwriter—Paramount

Drive, Beverly HUls,

Mutual

Fund

Manage¬
J.

ment. Co.

Pennsylvania Power Co.
Aug. 1 filed $8,000,000 of first mortgage bonds due 1988.
Proceeds—To redeem a like amount of 5% first mort¬
Underwriter—To be determined

bonds due 1987.

gage

by competitive bidding. Probable bidders: Halsey, Stuar*
& Co.

Inc.; Kidder, Peabody & Co.; White Weld & Co.;
Equitable Securities Corp., and Shields & Co. (jointly);
Lehman Brothers, Eastman Dillon, Union Securities &
Co., Salomon Bros. & Hutzler and Ladenburg, Thalmann
& Co. (jointly); Merrill Lynch, Pierce, Fenner & Smith
and Dean Witter & Co. (jointly).
Bids — Tentatively
had been expected to be received up to 11 a.m. (EDT)
on Aug.
27 but company on Aug. 22 decided to defer
sale pending improvement in market conditions.

Pennsylvania

Power & Light Co.
shares of common stock (no par) be¬
ing offered by the company for subscription by its com¬

Dec. 17 filed 295,841

stockholders of record Jan.

6, 1959, at the rate o£
then held; rights to
expire on Jan. 26. Employees will be given a contingent
subscription privilege. Price—$50 per share. Proceeds
—To be added to the general funds of the company arid
mon
one

new

share for each

for

used

general

•

em¬

non-salaried

future

★

on or before Dec.
31, 1974 and $123,000 of 7% debentures due on or before
May 6, 1,965. The company proposes to make a public
offering of 25,000 shares of common stock at $10 per
share.
The remaining shares and the debentures are
subject to an exchange offer between this corporation

•

—

★ Milgo Electronic Corp.

Co.,

Dec. 4 filed $200,000 of 6%

Dec. 29

to non-salaried employees;

stock at the rate of

& Co.

Underwriter—None.

310 Russell St., St. Louis,
& Co., St. Louis, Mo.

common

$11 - of debentures and one warrant to purchase onequarter of a share of National Theatres, Inc. stock for

stock

ployees

S692,00(j of 6% debentures maturing

mum

Telephone Co.

held; unsubscribed shares to employees.
Price—
share.
Proceeds—To- fcbmplete dial conversion
program.
Office—315 South Second St., Mankato, Minn.

the basis of

(par $1) for each 20 shares of class A stock pur¬
Price—At par. Proceeds—To develop ski area.

Address—P.

Calif.

$55

stock

chased.

to be offered'fdf subscription by stock¬
basis

common

stock

all-year resort hotel. Office

Underwriter—None. Letter to?*b£ amended.

Co., Inc.

if Mt. Ascutney Ski Area, Inc.
Dec. 30 (letter of notification) 30,000 shares of class A
common stock (par $5) and 3,500 shares of common stock
(par $1). Buyers of class A stock have the right to pur¬

Underwriter—Plymouth Bond

Co?|j.

Price—To be related to the current market

price on the New York Stock Exchange. Proceeds—To¬
gether with other funds, to carry on the company's con¬
struction program
through 1959.
Manager-Dealers —
Smith, Barney & Co., Kidder, Peabody & Co. and Blyth

FlaA.^

used to build and operate and

Power Co.

—

of Montana.

Price—$5

Proceeds—To reduce current indebtedness to

stock

in¬
gas

Boston

July 1 filed 100,000 shares of common stock (no par).
stock will be offered only to bona fide residents

Inc^ Miami, Fla.

per share.

Dec. 10 (letter of

The

Emporium, Pa.

Oct. 6 filed 100,000 shares of hbmmon stock.

Mammoth Mountain I tin

loans

First

The

Montana Power Co.

Co.

—

(jointly); White, Weld & Co.;
Dillon, Union Securities & Co.; Kidder Peabody & Co., Smith Barney & Co. and Blyth & Co., Inc.
(jointly). Bids—Had been expected to be received up
to noon (EDT) on Aug. 26 at Room 2033, Two Rector St.,
New York, N. Y., but company on Aug. 22 again decided
to defer sale pending improvement in market conditions.

Offices—Wilmington, Del.,

Corp., Miami,

Underwriters

Webster Securities Corp.

Sept. 29 filed 350,000 shares of common stock. Price—$1
share. Proceeds — Foi*tfi<? acquisition of properties
under option and for various geological expenses, test
drilling, purchase of equipment, and other similar pur¬

bank

improvement

Eastman

per

& Share

short-term
and

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Lehman Bros.;
Merrill Lynch, Pierce, Fenner & Smith, and Stone &

Price—$l0.5tt]5er share to stockholders;
$11.50 to public. Proceeds—$328,300 to redeem outstand¬
ing 5% sinking fund debenthf^s and $189,200 to reduce
short term bank loans. Office—Los Angeles, Calif. Un¬
derwriter—Quincy Cass Associates, Los Angeles, Calif.

M. C. A. Credit Co.,

system.

Montana

fund debentures.

Underwriter—None.

reduce

extension

luly 1 filed $20,000,000 of first mortgage bonds due 1988.
Together with other funds, to be used to
repay $15,500,000 in bank loans and to carry on the
company's construction program through 1959. Under¬

rata basis. Any shares not so sold will be offered on
exchange basis to holders of outstanding 5% sinking

poses.

the

for

10 shares held of record

oversubscription privilege); rights
Price—To be supplied by amend¬

Proceeds—To

Proceeds

Angeles Drug Co.

Corp.

share for each

21, 1959 (with

(par $5) to
stockholders at the

common

Corp., New York, and The Robinson-Humphrey Co., Inc.,
Atlanta, Ga

Oct. 3 filed 50,000 shares of capital stock, to be offered
for subscription by holders of outstanding stock, on a

LuHoc Mining

new

distribution

Price—$5 per share.
Proceeds—To acquire stock,
control of "young, aggressive and expanding life and
other insurance companies and related companies and
then to operate such companies as subsidiaries." Under¬
writer—First Maine Corp., Portland, Me.
:

pro

one

curred

$1).

(1/23)

Corp.

subscription by

expire Feb. 9, 1959.

ment.

March 28, 1958, filed 1,000,000 shares of capital stock (par

Los

will

Dec. 30 filed 33,000 shares of common stock

stockholders.

(a subsidiary), and the
balance
surplus: Underwriter—None.

(137)

The

First Boston

20 shares

corporate purposes.
Underwriters—
Corp., New York, and Drexel & Co.,

Philadelphia, Pa.

Pioneer Trading Corp., Bayonne, N. J.
Nov. 10 filed 10,000 shares of $8 cumulative

;■

■»

preferred

stock, series A (par $100) and $1,000,000 of 8% subordin¬
ated debentures, series A, due Dec. 1, 1968 to be offered
in units of a $500 debenture and five shares of pre¬
ferred stock.
Price—$1,000 per unit. Proceeds — For
general corporate purposes. Underwriter—None.
'
x

Plactir

AnnliPBtAFG

Ihp

Dec. 29 (letter

of notification) $150,000 of 6% convertiblo
sinking fund debentures due Jan. 2, 1969 and 30,000
shares of common stock (par $1). Price—Of debentures,
at par; of stock, $5 per share.
Proceeds — To purchase
new
equipment and for working capital. Office—702O
Katy Rd., Houston, Tex. Underwriter—A. G. Edwards
& Sons, St. Louis 1, Mo.
Ponce de Leon Trotting

Association, Inc.

Aug. 7 filed 650,000 shares of common stock (par one
cent). Price—$1.50 per share. Proceeds—To pay current
liabilities, for new construction and working capital.
Office—Bayard, Fla. Underwriter—Robert L. Ferman
Co., Inc., Miami, Fla.

Statement effective Dec. 17.

Prairie Fibreboard Ltd.

Aug. 18 filed 209,993 shares of common stock (par $1.50)
to be offered for sale to residents of Canada in the Prov¬

Saskatchewan and Alberta and to
the United States "only in the State of North
$3 per share.
Proceeds — For con¬
struction purpose.
Office —Saskatoon, Saskatchewan,
Canada. Underwriter—Allied Securities Ltd., and United
Securities, Ltd., both of Saskatoon, Canada.
inces

Manitoba,

residents of

Dakota."

Price

—

if Producers Finance Co. of Arizona
Dec. 22

stock to

(letter of notification) 300,000 shares of common
be offered for subscription by holders of stock

rights

acquired

insurance

in the

Producers Benefit Insurance

purchase

policies

purchase

Continued

Co. prior
page

The Commercial and Financial Chronicle

(138)

Continued
to

July

from

page

rJ"

Service

certain designated employees.
Price—At par ($1 per share). Proceeds — For working
capital. Office—765 West Main St., Mesa, Ariz. Under¬
1,

1954

and

writer—None.

Life

Insurance

Fort

Shares in

market.

—For investment.

St., N. W., Washington 7, D. C. Investment Advisor—In¬
vestment Fund Management Corp.
\

$500 and $1,000. Price—At par. Proceeds—For work¬
ing capital and general corporate purposes. Underwritei
Israel Corp., New York, on a "best efforts'

—Rassco
basis.

Remo Corp., Orlando, Fla.
Sept. 22 filed 100,000 shares of 6lass A common stock
Price—To be supplied by amendment.
Proceeds—Foi
working capital. Underwriter — Citrus Securities Co.
Orlando, Fla.

•

Proceeds—For investment.

Silicon Transistor Corp.

Resistoflex

Corp., Roseland, N. J. (113-14)
Dec. 24 filed 100,000 shares of common stock, of which
50,000 shares are to be offered for the account of the
and 50,000 shares for the account of

company

stockholder.
ceeds

selling

Price—To be supplied by amendment. Pro¬

To repay

—

bank loans and for working capital.

Underwriter—Bache & Co., New York.
Richwell

Petroleum

Ltd., Alberta, Canada

June 26 filed 1,998,716 shares of common stock (par $1)
Of this stock, 1,174,716 shares are to be sold on behalf oi
the company and 824,000 shares for the account of cer¬

tain selling stockholders.

The company proposes to offer

the 1,174,716 shares for subscription by its shareholder!
at the rate of one new share for each three shares held

(with an oversubscription privilege). The subscriptioii
period will be for 30 days following issuance of sub¬
scription rights. Price—To be supplied by amendment
Proceeds—To pay off demand note, to pay other indebt¬
edness, and the balance if any will be added to working

capital.

Underwriter

—

Pacific Securities Ltd., Van¬

Canada.

couver,

v;-.:

Underwriters—Rowles,

Marchant,

Inc.

stock

to be

Dec. 24 filed 500,000 shares of common stock (par
$25).
Pri«e—To be supplied by amendment. Proceeds—To re¬

•

Rohr Aircraft Corp. (1/22)
Dec. 29 filed 300,000 shares of additional common stock

(par $1).

Price—To be supplied by/amendment.

ceeds—To

reduce

short-term

banM loans

and

Pro¬
to

in¬

working capital. Underwriters—The First Boston
Corp., New York, and Lester, Ryons & Co., Los Angeles,
crease

Calif.

writer—None.
St.

Paul Ammonia

Products, Inc.

Dec. 29 filed 250,000 shares of

common

stock

(par IVz
cents), to be offered for subscription by common stock¬

holders at the rate of

one new

share for each four shares

Price—$2.50 per share. Proceeds—For additional
working capital. Office—South St. Paul, Minn. Under¬
writer—None.
St.

Regis Paper Co.

Dec.

11 filed 288,450 shares of common stock
(par $5),
being offered in exchange for outstanding shares of
capital stock of F. J. Kress Box Co. on the basis of V-k

Shares of St.
stock of Kress.

Regis common for each share of capital
St. Regis will declare the exchange offer

effective if 95% of the
outstanding shares of Kress stock
are deposited in
exchange and may elect to do so if a
lessen per cent, but not less than
are

deposited.

80%, of Kress shares,
Statement effective Dec. 29, 1958.

San Diego Gas & Electric Co.
(1/8)
Dec. 8 filed $15,000,000 of sinking fund debentures due
Jan. 15, 1984.- Proceeds—Toward the cost of additions
to utility property. Underwriter—To be determined
by
competitive bidding. Probable bidders:

Halsey, Stuart
Inc.; White, Weld & Co. and Shields & Co. (joint¬
ly); Salomon Bros. & Hutzler, Kuhn, Loeb & Co. and
American Securities Corp.
(jointly); Eastman Dillon,
& Co.

Union Securities & Co. and Merrill
Lynch, Pierce, Fenner & Smith
(jointly); Lehman

Brothers; Blyth & Co.,
Boston Corp. Bids—To be received up
<PST) on Jan. 8 at room 1200, 111 Sutter
St., San Francisco 4, Calif.

Inc.; The First
to

8:30

a.m.

San Diego Imperial Corp., San Diego, Calif.

Dec. 9

filed

845,000 shares of common stock, to be of¬
fered in exchange for all of the
45,000 outstanding shares
of capital stock of Silver State
Savings & Loan Associa¬
tion and 3,000 shares of
capital stock of Silver State In¬
surance
Agency, Inc., both of Denver, Colo.

Seiberling Rubber Co.
Dec.

filed

106,841 shares of common stock to be
stockholders on the basis of one new

offered to

common

each

for

(1/19)

lour

held

or
about Jan. 19,
1959; rights to expire on Feb. 4. Price—To be
supplied
by amendment. Proceeds
Together with a proposed
$3,000,000 term loan, will be used for general
corporate
purposes including working capital.
Underwriter—East¬
man Dillon, Union Securities
& Co., New York.

—

Price—$10

bank loans and

Edison Co.

for

Under¬

Witter
•

Southern

Gas Pipe Line Corp.
$35,000,000 of first mortgage pipe line bonds,
due 1979. Price — To be supplied by amendment. Pro¬
ceeds—For property additions and improvements and/or
.to reduce outstanding notes under company's revolving
credit agreement.
Underwriters — White, Weld & Co.
Jan. 7 filed

loans,

and the balance for construction program. Underwriters
—Dean Witter & Co., Chicago,
111., and Smith, Polian &

and Stone & Webster Securities

Co., Omaha, Neb.
Southern

Dec.

Price

—

California

\Vater

(1/14)

filed

43,800 shares of common stock (par $5).
To be supplied by amendment. Proceeds — To

selling stockholders. Underwriters—Dean Witter

Gulf

Utilities, Inc.

Dec. 15 (letter of notification) 127,659 shares of common
stock (par five cents). Price—$2.35
per share. Proceeds
—For payment of loan and account
payable; and for

working capital.

Office—6930 N. W. 27th

Ave., Miami,
Fla. Underwriter—Ross
Securities, Inc., New York, N. Y.
r-.'
•
Offering—Expected this week.

•

(1/20)

bidding. Probable bidders: Halsey, Stuart
Inc.; Blyth & Co., Inc., and Kidder, Peabody &
(jointly); The First Boston Corp. Bids—Expected to

be received up to 11 a.m.

Sports
Nov.

(EST)

St., New York, N. Y.
Arenas

filed

•

Sports

insurance.

Edmond M.
United

■.

•

(Delaware)
Inc.
Nov. 18 filed 461,950 shares of common stock (par one
cent). Price—At the market (but in no event less than
$6 per share). Proceeds—To selling stockholders. Office
Great Neck Rd.,
None.

Great Neck, N. Y.

„

Office—Louisville, Ky.
Smith, is President.

States

Glass

market.

UnderwTiter—None.

Chemical

Corp.

outstanding shares of

Proceeds

common stock.

Office—Tiffin, Ohio.
• Vanadium-Alloys

Steel Co.

(letter

—

notification)

1,345

employees.

capital

Price—Equiv¬

alent to the last sales price on the American Stock Ex•

Co.,

Inc.

affiliates and principal stockholders of
realty liens.
par ($10 per share).
Proceeds—To purchase

Price—At
and

change

the day. preceding the acceptance of the offer.
Proceeds—For working capital.
Underwriter—None.
'
on

„

•

Vita Food

Products, Inc. (1/12-16) • •
Dec. 16 (letter of notification) 12,000 shares of commdn
stock (par 25 cents) issued as part of the consideration
paid by the company for Mother's Food Products; Inc.

develop rental property; construction and for work¬
ing capital. Office—2175 N. W. Upshur St., Portland 10,

Stock

Ore.

Goodwin.

Underwriter—None.

Co.

stock (par $5) to be offered to

it Sprouse Realty Corp.

Spur Oil

Calif.

selling stockholders.
Underwriter—None.
'

Dec.

Underwriter—

Dec. 18 (letter of notification) 30,000 shares of 5% cumu¬
lative preferred stock to be offered for
subscription by
stockholders and employees of Sprouse-Reitz
and

Angeles,

Nov. 26 filed 708,750

Price—At

Arenas

—33

Los

22 filed 120,000 shares of class A common stock.
Price—$3 per share.. Proceeds—To provide the reserves
required to be held in life and accident insurance poli/cies, and to pay the necessary expenses in producing

by six at Wilton Manor Lanes, Fort Lauderdale;
$300,000 for deposits on leaseholds, telephones and util¬
ities; and $395,000 for working capital. Underwriter•,

Fox,

-Aug.

and

«...,

stock (par $1).Price

United Security Life & Accident Insurance Co.

installations, fixtures and equipment; $85,000
to
expand two present establishments by- increasing
the number of alley beds by eight at Yorktown
Heights

:'r'

(1/15-20)

common

,D. H. Blair & Co., New York, and Stern, Frank, Meyer

other

100,000shares of

—5311 Avalon Blvd., Los Angeles, Calif. Underwriters—

Inc.

$2,000,000 of 6%

None.

United Pacific Aluminum Corp.

/—$8 per share. Proceeds—To purchase an additional, cold
rolling mill and for general corporate purposes. Office

Jan. 20 in Room 1130,

10-year convertible de¬
bentures (subordinated), due Jan.
1, 1969. Price—To be
supplied by amendment. Proceeds—$750,000 to pay AMF
Pinspotters, Inc. for bowling alley beds; $350,000 to pay
for

Montreal;

Dec. 18 filed

•

(Delaware)

Corp. Ltd.
•
1,000,000 shares of .capital stock (par $1).
be supplied by amendment.
Proceeds—For

Office—132 St. James Street
Quebec, Canada.
Underwriter—Allen
Co., New- York. Offering—Expected today, (Jan. 8).!

/West,

Co.

90 Broad

Asbestos

filed

general corporate purposes.

competitive
Co.

Price—To

Dec. 18 filed $35,000,000 20-year first mortgage
pipe line
bonds due 1979. Proceeds—To repay bank loans and for
new
construction.
Underwriter—To be determined by
&

United

Dec.

Southern Natural Gas Co.

Corp., both of New York.

Trout

Co.,

Chicago, 111., and Smith, Polian & Co., Omaha, Neb.
Southern

•

Mining Co.
'
Dec. .2 filed 280,763 shares of common stock, of which
278,043 shares are :.being offered-for subscription, by
holders of company's common stock of record Dec. 31,
1958, on the basis of three new shares for each share to
-be held following a distribution to stockholders of rec¬
ord Dec. - 5, 1958 of American Machine & Metals, Inc.
There will
be
an
oversubscription privilege. Rights
-will expire oh Jan. 16.
The remaining 2,720 shares arc
to be offered to certain employees. Price—$1 per share.
Proceeds—For working capital.
Underwriter—None. ;
•

Co.

• Transcontinental

California

Proceeds—To retire short-term bank

Investment

$12 per share). Proceeds—To
stockholders. Office — 2700 North Halsted St,
Chicago, 111. Underwriter—Dempsey-Tegeler & Co., St.
Louis, Mo.

Water Co.
(1/14)
$2,000,000 of convertible subordinated de¬
due Jan. 1, 1979. Price—To be supplied by

bentures,

Underwriter—Allen

program.

ment (expected at around

Dec. 22 filed

amendment.

per

./selling

First Boston Corp.,'New York; and Dean
Co., San Francisco, Calif. " •

Mart, Inc., Boulder, Colo.
'
common stock (par $5).
share.; Proceeds—For working capital arid

500,000 shares of

Tractor Supply Co. (1/12-15)
Dec. 18 filed .480,000 outstanding shares of class A com¬
mon stock
(par $1). Price—To be supplied by amend¬

(1/20)

construction program.

Office—Flat St.,

■

Co., Boulder, Colo.

filed

construction

writers—The

held.

•

Southern California

•

Routh Robbins Investment Corp.
Sept. 22 filed $1,000,000 of 10-year 6% cumulative con¬
vertible debentures and 99,998 shares of common stock
Price—Of debentures, at par (in units of $100
each);
and of stock, $1 per share. Proceeds — For investment!
and working capital.
Office—Alexandria, Va. Under¬

Brothers, New York.

;

Tower Merchandise

Nov.

held

or about Jan.
15; rights to expire on or about Jan. 29.
Price—To be supplied by amendment. Proceeds—To re¬
duce bank loans and for working capital.
Underwriter

pay

payable and increase working capital.
Brattleboro, Vt. Underwriter—None.

•

stock

(par $1), to be offered in units of one
preferred stock and five shares of common
stock. Price—$20 per unit. Proceeds—To reduce accounts
share

de¬

—Lehman

(par $10)
subscription by common stockholders
of record Jan. 9, 1959 on the basis of one new share for
each six shares then held; rights to expire on Jan. 26.
Price—To be supplied by amendment.
Proceeds—To
repay bank borrowings. Underwriter—The First Boston
Corp., New York.

ic Templeton Furniture Co., Inc.
(letter.of notification) 5,000 shares of 7% cumu¬
lative preferred stock (par $15) and 25,000 .shares Of

common

(1/15)

-share., Proceeds—To retire current liabil¬

per

Dec. 30

1, 1979 to be offered for subscription
stockholders on the basis of $100 principal

debentures for each

and operate one or mor*

drilling and exploration costs and workirig
Underwriter—Peter Morgan & Co., New York.

capital.
•

Winston

24 filed $7,443,100 of convertible subordinated

common

erect

ities and for

bentures due Jan.

amount

Proceeds—To

Surrey Oil & Gas Corp., Dallas, Tex. (1/15)
12 filed 300,000 shares of common stock
^par $1).

Price—$3

amounts

Smith-Corona

share.

processing plants using the Bruce - William*
beneficiate manganese ores
Underwriter I
Southwest Shares, Inc.. Austin. Texas.

& Co., Houston, Tex., and Dewar, Robertson & Pancoast, San Antonio, Tex. Offering — Expected early in
January.
•

life

acquire other

chemical

venture program, to be
of $15,000, payable 20% down and
the balance upon demand during 1959.
Proceeds—To
assemble and acquire interests in Canada and Conti¬

Dec.

and

Nov.

corporation's joint

States.

bonds

Process to

in the
offered in

Rochester Telephone Corp.
(1/12)
Dec. 18 filed 195,312 shares of common stock
offered for

per

one

and

Strategic Minerals Corp. of America, Dallas, Tex
$2J)00,000 of first lien mortgage 6% boncL
and 975,000 shares of common stock (par 10 cents;. Prie«
—For bonds; 95% of princ;nal
amount; and for .stock

Inc., New York '
10-year debentures and 5,participating preferred stock (par $50)
$50 debenture and

stocks

t March 31 filed

Corp., Houston, Texas

United

Haven Drive, Dallas, Texas.
Underwriter
Co., New York, N. Y. Offering—Not expected
1959.
r
;■

invested

filed $1,500,000 of participating interests

nental

of com¬

share).

per

insurance companies. Address—P. O. Box 678, Gulfport,
Mis3. Underwriter—Gates, Carter & Co., Gulfport, Mis*

preferred stock. Price—$100 per unit. Proceeds—For
acquisition of motels. Underwriter—Sire Plan Portfolios,
Inc., New York.

minimum

($1

par

Life, Health & Accident Insurance Co.
(letter of notification) 50,000 shares of common
(par $1). Price—$5 per share.
Proceeds—To be

stock

•

Preston

Co.
notification) 300,000

Price—At

State

Nov. 10 filed $250,000 of 6%

Slick Oil

6130

July 9

■

Dec.

stock.

(1/9-13)

Sire Plan of Elmsford,

mon

Sign & Signal

(letter of

until after Jan. 31,

(par 20 cents).
equipment,in¬
crease present inventories, and for, working capital.
Of¬
fice—150 Glen Cove Road Carle Place, N. Y.
Under¬
writer—None. Arnold Malkan, President, located at 565
Fifth Avenue, New York 17, N. Y., will subscribe for
100,000 shares if other 100,000. shares are sold publicly.

to be offered in units of

•

—Sano &

Dec. 4 filed 200,000 shares of common stock
Price—$3 per share. Proceeds—To purchase

000 shares of 6%

Dec.

Ave.,

Proceeds—
To promote and. expand the development of the Safety
School Shelter business.
Office—c/o Brown Kendrick,

America, Inc., Washington, D. C.
stock. Price—At
Office — 1033-30th

Dec.

of beneficial interest.

Rassco Financial Corp.

Standard

12 filed 50,000 shares of common

Jan. 2 filed

June 26 filed $1,000,000 of 15-year 6% series A sinkin*
fund debentures due 1973, to be offered in denominations

Thursday, January 8, 1959

Office—Eighth Ave. South
Nashville, Tenn.
Underwriter —
Equitable Securities Corp., Nashville. Tenn
Bradford

and

Underwriter—Kay & Co., Inc., Hous¬
1
;j\

Worth, Tex.

general corporate purposes.

Sept. 26 (letter of notification; 3,567 shares of common
stock (par $1).
Priced 18.75 per share. Proceeds—To
go to a selling stockholder. Office—400 W. Vickery Blvd.,
ton, Tex.

^ Putnam Growth Fund, Inc., Boston, Mass.
(by amendment) an additional 500,000 shares
Price—$15.76 per share. Proceeds

Co.

(1/12-16)

Price—To

•

Exchange.

Office—644

New

gether with $6,500,000 of borrowings, will be used for
the acquisition of Spur Distributing Co., Inc., and for

Nov. 10

•

York, N. Y.

Vocaline

Co.

•

—

price

To Jesse

the American
ana

Bernard

Greenwich

Underwriter—Granbery,

Dec. 15 filed 1,000,000 shares of common stock
(par $1).
Price—To be supplied by amendment.
Proceeds—To¬

market

Proceeds

St., New York, N. Y.
Marache & Co., 67 Wall St.,

r«

of America,

Inc.

(letter of notification) 21,500 shares of common
stock (par $1.50). Price—To be supplied by amendment

Volume

182

Number

5810

The Commercial and Financial Chronicle

(approximately $2.25 per share). Proceeds
To repay
term .bank loan; reduce accounts payable; acquire
inventory and the balance for working eapitqh. Under¬
writer—Paine, Webber; jacfcson & Curtis,- ,NeW^ York
N. Y.; Let..er withdrawn.
:::

First National

—

short

■Wen. Wood

■;

.......

will

vote

Jan.

Co., Tulsa, Okla.
...

reported

was

that
13

the

Mississippi Power Co.

■

Dec.

stockholders

approve

plan to offer

13, 1959. Price—$27 per share. Proceeds—To increase
100,008 shares of-common
capital and surplus. Underwriter—Merrill
Lynch, Pierce,
cents). Price—$3 per share. Proceeds—
Fenner & Smith, Oklahoma
City, Okla.
..For iana development and home construction in Florida. /
vand- iOf. general corporate " purposes.- Office-M52> Third
Georgia Power Co.- (9/10)
: Dec„ 10 it was announced that the
-A\?e., Mineoia, L. 1., N. Y. and 2259 Bee Ridge Road,
company plans to issue
and sell $18,000,000 of
Sarasota, Fla.
Underwriter—Michael G.r Kletz & Co.,
30-year first mortgage bonds. Pro¬
ceeds—For construction program.
Inc.,, 30 K ockc feller Pi a za, New York,N;/Y.
Underwriter—To be
determined by competitive bidding.
Probable bidders:
West O-rtio Gas Co.
:vJ;
'v- '
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Kidder, Pea¬
Nov. 17 filed 37.615 shares of common stock (par $5) be¬
body & Co. and Shields & Co. (jointly); Lehman Broth¬
ing offered for subscription by common stockholders of
ers;
The First Boston Corp.; Morgan Stanley &
Co.;
record Dec. 6, 1958, at the rate of one new share for each ;■
Equitable Securities Corp.' and Eastman
10 shares then held; rignW *o expire on Jan, 9L Pr.cc—
Dillon, Union
;
Securities,&
Co.
.(jointly);
Harriman
Ripley
&
Co.
Inc.
$15 per share. / Proceeds — For construction progi amy
Registration—Planned for Aug. 14.'
Office—319 West Market St., Lima, O.
Bids—Expected to
Underwriter—
;;be .received on Sept. 10.
V*
None. Statement effective Dec. l£. ?
!'
(fetter of notification)

Dec.

stock v(paf

ceived

Jan. 13

Color Television

Wilier

System, Inc;'
April 2 (letter of notification/ 72,03§?;shares of commoi
'stock (par $1) of which 10,000 are beiiig offered, to .stock¬
holders at $2 per share (rights to expire oh Jan. 17),
and the remaining 62,035 snares are being publicly of¬
fered at $3 each.
Proceeds—For general corporate pur¬

Office—151 -Adell Avenue, Yonfeers, N. Y. Un¬
derwriter—Edwin Jefferson, 39 Broadway, New York 6,

poses.

about

Wilmington Country Club, Wilmington, Del.
Oct. 27 filed $500,000 of debentures due 1991 (non in¬
terest bearing) and 800 shares of common stock (pai
$25)

: be offered

Concord Ltd.

debenture.

per

members

Price—$375

Proceeds

this

common

club

and

—

share and $1,000

develop

and

property
Underwriter—None.

certain facilities.

build

per

Barney & Co.
r

Gulf Power Co.

Dec. 10 it

Dec.

Power Co.

that

the

construction

sell

tration—Planned for April

base for the

of.

system-companies.

Underwriter—To:be

by competitive bidding.
&• Co.

and. Drexel

First

The

Boston

determined

Probable bidders:'White, Weld

Co.

(jointly);-Blyth
'
i U

Corp.

Co.; Inc.;
Btyr

&
,

-Central) Bank & Trust Co., Great Neck, L. Iv N« Y.
was announced that the stockholders "will vote
Jan.

New

^ec.
sell

1 it

System, Inc.
reported that the company

was

additional

•

common

stock

may

Lehman

Brothers

Eastman

and

Union

(jointly); Merrill Lynch, Pierce, Fen¬
Smith, White, Weld & Co., Shields & Co. and R.

W. Pressprieh & Co.

Denmark

Sept. 2 it
000 to

(jointly); Morgan Stanley & Co.

(Kingdom of)
reported that

was

$30,000,000

may

market this year.
New York.

can

issue of between $20,000-

possibly be placed

the Ameri¬

Dec.

Jan. 5 the trustees approved an offering in early March
of 96,765 additional shares of common stock to common

vote Jan. 20

Underwriters—To

held.

the basis

one

new

Equitable Gas Co.
July 18 it was announced that the
in the year to issue and sell

ably preferred stock, to

Dec.

expects later

and

additional securities, prob¬

secure

Underwriter*
—May be The First Boston Corp.; Kidder, Peabody &
Co.; Merrill Lynch, Pierce, Fenner & Smith; and White
Weld & Co., all of New York.

City National Bank

Sept. 19 it was announced Bank plans to offer to its
stockholders of record Oct. 2, 1958 the right to subscribe
for 125,000 additional shares of
capital stock (par $20)
on the
basis of one new share for each 10 shares held:
Proceeds—To
Main

Street.

Jan. 10, 1959.Price—$40 per share.
increase capital and surplus. Office—931
on

Houston

Texas.

15 it

each

was

sale

the

Northern
Dec.

stock

held.

increase capital

the basis of

one

will

new

per share.
surplus. Underwrit¬
Inc. and First Southwest

Price—$26

and

plans issuance

bidders:
Co.

determined

Probable
Halsey, Stuart & Co. Inc.; Morgan Stanley &

Bids—Had

ceived

been

by competitive bidding.
tentatively

scheduled

re¬

Sept. 16, but on Aug. 26 it was voted to post¬
pone this refunding program because of present market
on

conditions.

sale

States

Co.

Power

(Minn.).

stock-issue if there is

satisfactory market.

Proceeds—

—

construction program. Un¬
competitive bidding.

To be determined by

Probable bidders

(1) For preferred stock: Blyth & Co.,
(jointly); Lehman Broth¬
Co. (jointly); Merrill Lynch, Pierce,
Fenner & Smith; Harriman Ripley & Co., Inc. and East¬
man
Dillon, Union Securities & Co. (jointly); Kuhn,
Loeb & Co. (2) For common stock: Lehman Brothers
and Riter & Co. (jointly); The First Boston Corp., Blyth
& Co., Inc. and Kuhn, Loeb & Co. (jointly); White, Weld
& Co. and Glore, Forgan & Co. (jointly); Merrill Lynch,
Pierce, Fenner & Smith.
Inc. and The First Boston Corp.

Riter

and

ers

(1/13)

directors

approved proposed offering of 74,511
shares of new capital stock to stockholders

additional

of record Jan. 13

at the rate of

one

new

share for each

three shares held; rights

will expire on Feb. 3. Under¬
writers—Blyth & Co., Inc. and Elworthy & Co., both of
San Francisco, Calif.
Public

Service

Co.

(2/17)
will issue
$25,000,000 of first mortgage bonds. Proceeds—To repay
bank loans incurred for construction program.
Under¬
writer—To
be
determined
by
competitive
bidding.
Probable bidders: Halsey Stuart & Co. Inc.; Kuhn, Loeb
& Co.; The First Boston Corp.; Blyth & Co., Inc.; Glore,
Forgan & Co.; Harriman Ripley & Co., Inc. Bids—Ex-i
pected to be received on Feb. 17.

Dec.

National

the

Inc.

company

Bank

Boston,

(1/20)

record

Indiana,

that

announced

was

announced

it will offer its stockholders

Jan.

20, 1959, an additional 40,000 shares of
capital stock (par $10) on the basis of one new share
for each 6V2 shares held.
The offering period will last
Proceeds—To increase capital and
Underwriter—May be The First Boston Corp.,

for about two weeks.

surplus.

New York.

Corp.

reported that the company

Michigan Bell Telephone Co.
Aug. 12 directors approved plans to sell $40,000,000 ol
34-year debentures. Proceeds—To redeem a like amount
*>f 4%% debentures due November, 1992.
Underwriter
—To

plans

company

Allen S.

South Coast Corp.
27 it was reported

Oct.

that the

long-term financing.

company

is planning

To replace an
interim loan obtained in connection with the purchase
of properties from Gulf States Land & Industries, and
43/4% bonds due 1960. Underwriter — May be Hornsome

blower

Proceeds

—

Weeks, New York.

Southern Co.

•

the

King, President, announced that the
company plans about the middle of 1959 to put out a
common stock issue and possibly a $15,000,000 preferred
3,

Mass.

stockholders

$2,500,000 63/2% debentures due 1974 (with
attachable warrants—each $1,000 debenture to carry a
warrant to buy 200 shares of common stock at $3 per
share). Underwriters—Cruttenden, Podesta & Co., Chi¬
cago, 111., and Clayton Securities Corp., Boston, Mass.
Registration—Expected about mid-January.

bank loans and for construction
program.

rights to expire

for

that

authorizing the issuance of 125,000 addi¬
common

that

reported

competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Equitable Securities Corp.; Lehman Brothers
and
Bear, Stearns & Co. (jointly); Eastman Dillon,
Union Securities & Co.; The First Boston Corp.; White,
Weld & Co.; Dean Witter & Co.; Blyth & Co., Inc. and
Merrill Lynch, Pierce, Fenner & Smith (jointly); Harri¬
man Ripley & Co., Inc.
Bids—Expected to be received
before April 1.

Bank, Dallas, Texas.

ers—Rauscher, Pierce & Co.,
Co., both of Dallas, Texas.

approximately $5,000,000
of additional funds.
Proceeds—Together with $7,000,000
from private sale of 43/2% bonds, to repay short-term

"First

Miami Window
company

Underwriter—To b»
bidding.
Probable bidders

announced

was

Proceeds—To

com¬

petitive bidding. Probable bidders: Kidder, Peabody
Co.; Stone & Webster Securities Corp.

tional shares of

share for' each 12

determined

Indiana Public Service Co.

was

Rockland-Atlas

ic Eastern? Utilities Associates

Pacific National Bank of San Francisco

program.

Mercantile National

Dec.

company

ton, Mass.

Underwriter—Kuhn, Loeb & Co..

stockholders

For

Light Co.

construction

Co.

To repay bank loans and for

Laboratory for Electronics, Inc.
July 3, Henry W. Harding, President, announced that
the directors are currently
considering refinancing $790,000 of putstanding notes
($6*58,750 held by a principal
stockholder and $131,250 by a bank) on a more perma¬
nent basis.
This may be done through equity or con¬
vertible debenture financing. Office—75 Pitts St., Bos¬

Securities & Co.
ner

announced

was

Gas

reported that the

about $35,000,000 of new

derwriter

by competitive
Ralsey, Stuart & Co. Inc.; The First Boston Corp.; Glore
Forgan & Co.; Harriman Ripley & Co. Inc.; White, Weld
^ Co.: Blyth & Co..
Inc.; Equitable Securities Corp

1959.

Dillon,

Power

ietermined

Proceeds—To repay outstanding bank loans. Underwriter
—To be determined by competitive bidding.
Probable

bidders:

cceds—For

issue and

first'half

the

plans to issue an*
<ell $10,000,000 of first mortgage bonds due 198S. Pro

j;"1

■

York./

Illinois

was

$25,000,000 to $30,000,000 of first mortgage
bonds dqe 1989.
Underwriter — To be determined by

be publicly offered

market.
Proceeds—For public works
Financial Adviser—The First Boston Corp.,
v ;
V ■.

from

American

Kansas

Feb.

Gas

soon

Northern

issue of between $25,000,000

may

Stone & Webster Securities Corp.
(jointly); Glore,
^an & Co., and Goldman Sachs & Co. (jointly).

Proceeds—To increase capital and sur¬

Underwriter—None, -/f //..

:Columbia

Chairman, announced that comoany plans to sell some bonds originally scheduled foi
mid-year of 1958. The proposed sale was subsequently
deferred until early 1959. Proceeds — About $8,000,000
for construction program. Underwriter—To be determined
oy
competitive
bidding.
Probable
bidders:
Halsey
Stuart & Co. Inc.; Kidder, Peabody &
Co., and MerriU
Lynch, Pierce,'Fenner & Smith
(jointly); Lehman
Brothers; Eastman Dillon, Union Securities & Co. and

approving a proposed subscription of¬
fering of 38,503 additional shares of capital stock. Price
plus.

stated that

Equitable Life Assurance Co.

North American Van

Dec.

(Empire of)
was

Kansas Gas & Electric Co.
March 31, G. W. Evans,

—$20 per share.

March

$30,000,000 of bonds
the

Dec. 31 it
on

plans to issue and
mortgage bonds dated March 1,
1, 1994. Proceeds—For improve¬
Underwriter—To be determined by competi¬

projects, etc.

(par $25) in the early
the basis

financing of substantial expansion programs

(2/25)

company

first

was

Japan

months of /959 to stockholders under rights on

of, one new share for each 10 shares held (with an overSubscription privilege). Price—To. be determined just
prior to offering. Proceeds—To be used as the equity

announced

C. Allyn & Co., Inc. and Walston &
Co., Inc. Offer¬
ing—Expected any day.

and

then held;

company will sell in
securities, including some
first mortgage bonds, in addition, there is a possibility
of a preferred stock issue and raising of some funds
through common stock financing, "perhaps in the form
af convertible debentures."
Proceeds—For capital ex¬
penditures.
Underwriter—To be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Ike First Boston Corp.; Glore, Forgan & Co.;
Blyth & Co., Inc.

re¬

record

Lines, Inc.
20, James D. Edgett, President, announced com¬
pany plans early in 1939 to make a public offering of its
stock, and has applied to the Interstate Commerce Com¬
mission for authority to do so.
-

1959

Freight System, Inc. (Mich.)
reported that the company plans to issue
125,000 shares of common stock. Underwriters—

and sell

1958,

Northern

Interstate Motor
Dec.

stock

common

Telephone Co.

was

due

six

Dec.

bidding. Probable bidders: Halsey Stuart & Co.
Inc.; Morgan Stanley & Co.; Glore, Forgan & Co. and
Eastman Dillon, Union Securities & Co.
(jointly).^ Bids
—Expected to be received on Feb. 25.

15 it was announced that the
Company has filed
application with the SEC for the issuance of 486 325

additional shares of

tive

Dec.
an

and

Aug. 20 it

American Natural Gas Co.

Underwriter—To

program.

Bell

ments, etc.

company

Bids—Expected to be

$50,000,000

1959

April 30.

on.

Nov.

Equitable Securities Corp.; Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Blyth & Co., Inc. Registra¬
tion—Planned for March 6.
Bids—Expected to be re¬
ceived on April 2.

—

ceived

(4/2)

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch,
Pierce, Fenner
& Smith, Salomon Bros. & Hutzler
and Drexel & Co.
(jointly); Eastman Dillon, Union Securities & Co.:

Dec.

plans the
issue and sale of $20,000,000 of 30-year first mortgage
bonds.
Proceeds
For construction program.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Lehman Broth¬
ers; Eastman Dillon, Union Securities & Co., Equitable
Securities Corp. and Drexel & Co. (jointly); Harriman
Ripley & Co., Inc. and Goldman, Sachs & Co. (jointly);
Morgan Stanley & Co.; Blyth & Co., Inc. and Kidder,
Peabody & Co. (jointly); The First Boston Corp. Regis¬

Smith,

determined

(4/30)

announced

was

and

23,

stockholders

was announced that the company plans an of¬
fering of 950,000 shares of capital stock. Price — $10 per
share.
Proceeds—To increase capital and surplus. Un¬
derwriter—John M. Tait & Associates, Cincinnati, Ohio.

announced that the
company plans to issue
$7,000,000 of 30-year first mortgage bonds. Pro¬

and sell

Prospective Ottering*

Alabama

Jan.

stock

common

North American

was

Illinois

•

Inc.; Lehman Brothers

/ ;

Dec. 1 it

include: Blyth & Co.,

vote

approving the proposed offering of about 80,-

the basis of one new share for
rights to expire on Feb. 16.
Price—$50 per share. Proceeds—To increase capital and
surplus. Underwriter—Clark, Dodge & Co., New York.

each

Pacific Tea Co., Inc. *
Feb. 19 it was reported a
secondary oftermg of common
voting stock is' expected this year. Underwriters — May

ceeds-*^ or

Statement effective Nov. 18.

:;N. Y,

Great Atlantic

000

June KB.

National State Bank, Newark, N. J. (1/23)
Dec. 22 it Was announced that stockholders will

(6/25)

was

issue and sell

capital stock (par $10) on
basis to stockholders of record Jan.

one-for-six

announced that this company plans to
$5,000,000 of 30-year first mortgage bonds.
Proceeds—For construction program.
Underwriter—To
be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Eastman
Dillon, Union
Securities & Co. and Equitable Securities Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Smith; Kidder,
Peabody & Co. and White, Weld & Co. (jointly). Regis¬
tration—Planned for May 29. Bids—Expected to be re¬

the

100,000 shares of additional
about

-Organizations,

Bank
-

Bank & Trust

(1/13K-

Nov.

(139)

Dec. 10 it

was

struction

program.

(2/4)

announced that the company

plans to raise
early in 1959 between $40,000,000 and $45,000,000 through
the public sale of common stock. Proceeds — For con¬
Underwriter—To be determined by

competitive bidding. Probable bidders: The First Boston

Corp.; Morgan Stanley & Co., Kidder, Peabody & Co.
Merrill Lynch, Pierce, Fenner & Smith (jointly);

and

Eastman

Dillon, Union Securities & Co. and Equitable
Continued

page

,♦

The Commercial ami Financial Chronicle

(140;

loans, and the balance will be used for capital ex¬
penditures. Underwriter—Dillon, Read & Co. Inc., New

Corp. (jointly); Lehman Brothers. Bids—Ex¬
pected up to 11 a.m. (EST) on Feb. 4 at 250 Park Ave.,
New York, N. Y. Registration—Planned for Jan. 9.
Electric

York.

Thomas & Betts Co.
Nov.

(5 28)
Dec. 10 it was announced that the company plans to issue
ond sell $25,000,000 of 30-year first mortgage bonds.
Proceeds—For construction program.
Underwriter—-To
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart &. Co. Inc.; Eastman Dillon, Union
Securities & Co. and Equitable Securities Corp. (jointly);
Generating Co.

for

May 28.

Bids—Expected to be received

May 1.

registration of about 250,000 to 300,000 shares of common
Price—To be supplied by amendment. Proceeds
—To selling stockholders.
Underwriter—Smith, Barney
& Co., New York. Offering—Planned for some time in

ferred share.

Jan.

January.

March

•

Telephone Co.
July 10 it was announced Missouri Public Service Com¬
mission authorized the company to issue $110,000,000 of
35-year debentures. Proceeds — To refund outstanding
$100,000,000 4%% debentures. Underwriter—To be de¬
termined
by competitive bidding.
Probable bidders;

Texas

with

rests

the New

Research

Petroleum

Brothers,

Society.

Smith,

Fund

Underwriters

Barney

May

—

Co.

Staie

Lehman

and9 Merrill

Pierce, Fenner & Smith, all of New York.

derwriter

—

Probable

bidders:

The

Lynch,

Offering

First

Corp.

Worcester Gas

Aug. 18 it

struction program.

June 2.

was

Light Co.

$5,000,000 first mortgage bonds. Proceeds—For con¬
Underwriter—To be determined by

Co.

Inc.;

Estabrook

Co.

rate here would also be

4.70%.

4%% and

The

20-year

First Lumber

maturity

portfolios.

But

again
buyers,
for
the
at least, appeared to be
looking, moving observers
remark that
"you just can't

moment

only

Earnings of Union Pacific Sys¬
tem

for

1958

estimated

are

from the good
from

better

traffic outlook

control

but

operating
While the roacl has had

expenses.

only slightly;from the $3.34 a share

liberal maintenance program, it
has been slow in dicselizing. It is

This excellent

reported for 1957.

showing

made despite

was

drop

in "other income," principally from
oil and gas revenues.

Higher interstate rates and
increases

in intrastate

rates

long

the

haul

600

some

carrier,

miles,

Class

averaging
about double
also

and

average

fairly heavy density. Steam

were

now

has

nated

been

and

practically
new

has

clearer

only

4.9%.

The output in the

Wilmington field
obviously is past its peak and the
increasing
expenditures for
drop of about $4 million during
the period, reducing this source drilling on other property owned.
It also has extensive mineral rights
of income by some 10.6%.
This
Oil

and

gas

reflected

revenues

road is

cut final net income for the first
10 months :to

$2.59

a common share

compared with $2.74 a share in
the like months of 1957.
Traffic of the Union Pacific

ing

the

was

business

recession.

was

This

because of the

large amount
agricultural products and other

stable commodities carried. Favor¬
able traffic conditions have held

stable, particularly since Septem¬
ber, and this condition is expected
to

continue.

Lumber

traffic

has

turned up and this traffic is one
the most important sources of

revenue. It reached a

Colorado

might also
source

peak in 1955,

but declined in the two
succeeding
years, but the trend seems to be

reversing in line with a pickup in
building activity. Higher rates on
this traffic also have added to in¬
come.

Wyoming which
to be a valuable

prove

of income

well

reve¬

addition, U. P. has

vestment

a large in¬
portfolio which has been

source

most

income.

One

stock.

Also,

Pacific
source

its

Fruit

50%

common

interest

Express

another

of income.

Despite large capital expendi¬
tures, Union Pacific's finances re¬
main strong. As of Sept.
30, 1958,
cash and equivalents stood at
$100,332,000 against $122,912,000 at
the

end

There also

the

was an

1957

month.

increase of

000

compared with $81,995,000.
Equipment debt maturities amount

the

car¬

area

in
was

industry
much

less

the
than

Duncan Miller, Manager of the
Syndicate Department of Laird &

Company, Corporation, 61 Broad¬
lor the nation as a
whole. With
population growth and continued way, New York City, members
of the New York Stock
industrial expansion
Exchange,
underway, has been elected a
revenues

expected to expand
Benefits also are
expected to be received from the
elimination of the 3% excise tax
cn

Vice-President

are

in coming years.

of the investment firm.

Act

exemption

1.958 which limited
of private truck haul¬

Woolrych, Currier

(Special to The financial Chronicle)

LOS

Union

Pacific

this

year

income

tlie

needs,

and
set

lieved

its

known
cash

new

definitely

be¬

use

long-term

least

part

such

funds.

Word

around

was

nouncement of

would

ably

today. But it

forthcoming late
recalled that on

the

last

proved to be

that

forego
the

occasion,

such

week.

Hie

avert

circles

some

probably

will
until

announcement

have

closed

aim, of

for

other in

tlie

would

course,

disturbance

any

the

guessing
bit premature.

Treasury

markets

way

such

reasoned

the

an¬

was

that

its program prob¬

Even, if, as now expected, the
Treasury discloses its hand over
the week-end, feeling is that it
will be well along into the month
before the full effect of its pro¬

have

been

market is able
its

felt

only gan

factor.

Certainly next week's calendar
prospective new offerings is
not of proportions to
give the
Treasury any competition. Larg¬
est undertaking, due on Thursday,
is Province of Ontario's $75 mil¬
lion of debentures.
On

Tuesday
Co.

opening

bids

debentures

Utilities
million

will
of

Commonwealth

Chicago

for

will

million

$20

and

course.

By waiting until late Friday or
Saturday morning, to set forth its
and

terms

the

new

issue
or
issues
involved,
the
Treasury would afford prospec¬
tive buyers the entire weekend in

States

Gulf

marketing

Finance Corp's $30
25-year, sinking fund
debentures, due 1989 were

brought out carrying
pon

and

priced

4%%

afford

cou¬

yield

around 4.70%.
Designed to provide funds for

debentures

were

said to

be slug¬

gish at least at the outset.

has

was

Co.

previously with Mor¬

Repeat

Performance

$10

1956.

Its

sales

offices

reported

was

indicated that the coupon

working

principal executive and
located

are

its

for

1510

own

account

lumber
and
products of varied types and

wood

others,

In addition the

grades.

lumber

which

Common Stock Offered

and

Pennsylvania

The

Power &
Light Co. is offering to holders of
its

for

stock

common
or

additional

295,841

(without

value)

par

nominal

at the rate of

share for

new

record

Jan.

(EST)

The

will

warrants

one

held

1959.

company

p.m.

Jan. 26.

offering
by

being

group

under¬
under¬

Corp. and Drexel & Co.

including

construction

tures and repayment of

expendi¬
the

com¬

pany's $10,000,000 temporary bank
loans

incurred

1958

burse the

reim¬

treasury for capital
penditures.

ex¬

The company derives about 99%
of
its
operating revenues from

supplying electric service, the bal¬
ance from supplying steam heat¬
ing service.
It serves a 10,000
mile territory in 29

subsidiaries

Em¬

Millwork

Corp.. certain (1)
fixed assets, (2) lumber inventory
(3)
tim ber cutting.
acquired fixed assets were

The
oper¬

ated by the company from July 1,
1958 to the date of their acquisi¬

tion, under an exclusive sales and
management agreement. This
acquisition included two saw
mills,
three planing mills
and

standing

timber,

land

mis¬

and

cellaneous

Subscription

expire at 3:30

certain

from

pire

square

slow side.

Nassau

Jericho Turnpike, Nek Hyde Park,
N. Y. The company is engaged in

mills

coun¬

Meanwhile, preliminary inquiry ties of central eastern Pennsylva¬
C.I.T.
Financial Corp.'s
$75 nia having a population of ap¬
million of new 20-year deben¬ proximately 2,220,000 which in¬
the

the

The company was incorporated
in New York State on Feb. 23,

assets, located in the
States of Oregon and California,
by virture of which purchase the

company

and its subsidiaries will

be engaged
ber

in the logging of tim¬
milling, storing and

the

and

sale of lumber. The present opera¬
tions of the company cah be di¬

vided into (1)

sales and (2) mill¬

ing and storing.
Giving effect to present financ¬
ing, the outstanding capitalization
of the company consists of
50,000
shares

(par

$2)

class

cludes
the

class

and

stock

20,000

common

stock

150,113 shares of
(par $2). This ex¬
shares of class B

stock

exercise

stock purchase
000
shares of

class

issued
B

upon

comnfon

warrants and
class

20,-

common

stock into, which the class B com¬

stock is exchangeable
mencing Jan. 2, 1961.

mon

With

for

tures was likewise

and

funds used for corporate purposes

Meadow

general
capital of the company.

Pennsylvania P. & L.

ton

Household

million

the

Bank

agents

negotiated

corporate field that is.

from

National

selling,

The net proceeds from the sale
undertakings
of the additional common stock
were reported a bit slow in mov¬
ing to investors in the early stages will be added to the utility com¬
general funds, and
of public offering this week, in pany's
such

the

loan

Brook

both

writers headed by The First Bos¬
Satisfied

The net proceeds will be used to
lepay

purchases
Wednesday, General Telephone directly from lumber producers
Co. of Florida has $12 million of located
principally in the western
preferred up for sale.
portions of the United States and
A couple of "rights" offerings
Canada. The company's sales op¬
round out, the slate with Rochester
erations
extend
throughout
the
Telephone * Corp.,
due
to
open United States with
particular em¬
books Monday on 195,312 shares
phasis on the eastern portion of
and Champion Paper & Fiber Co.
the United States.
holders, on Thursday, slated to
On Dec. 19, 1958, certain newly
begin subscribing for $20,036,400
organized wholly-owned subsidi¬
of convertible debentures.
aries cf
the
company
acquired

written

which to consider the situation.

at $6

(par $2)

share.

program

stock

common

the business of buying and

outstanding common stock the
right to subscribe at $50 per share,
the

definitely chart

per

preferred.

new

licly offered 50,000 shares of class

added

Edison

Singer, Bean & Mackie, Inc., of
New York City, on Dec. 31 pub¬

County, and tlie balance will be

one

response

its terms.

posals

of .fare

The Week Ahead

new

for

issue

now

Treasury

make

look

bill

Russell

should Russell

not

rate

any

plans for raising the

ANGELES, Calif.—Robert

become affiliated
ing of agricultural products from
With Woolrych, Currier & CavlInterstate Commerce
Commission
regulation.
sen, 210 West Seventh Street. Mr.

4jJx>w improved

Govern¬

repayment of short-term debt the

Joins

freight and from the Transpor¬

tation

expected

Never

Of Laird & Go.

impending

the

end.

Even

Duncan Miller V.-P.

by
of

should
be
considerably
by the approaching week¬

only $3 million.

rier's revenues and income. Manu¬

decline

some

$16 million in noncurrent accounts.
Net working capital was $83,973,-

facturers and miscellaneous
ship¬
ments through November
were off
only 1% from 1957, indicating that
road's

territory

served also has added to

the

its

important holdings is 733,940

shares of Illinois Central

New industries in the

and

nues.

affected less than the average dur¬

weeks
plans

financing

ment,

October,

off

in; recent

Treasury's

bit

surrounding

markets,which
considerably beclouded

been

determination

the

investment

the
has

elimi¬
turbine

gas

atmosphere

power

freight locomotives are now on the
gross revenues line, which should lead to further
3.7%.
Operating economies of operation.
At the end of 1957, the road had
expenses were down during the
period by 3.3%, and Federal in¬ 763 oil wells in the Wilmington
come taxes and equipment rental
field.
The company also shares
charges also were reduced, with production with other oil firms on
a result that net operating income
percentages basis in 153 oil wells
actually showed an increase of and 48 gas wells in other areas.
through

were

was

The

satisfy them." But doubt¬

the

over

some

factors in offsetting a drop of 6.3%
in carloadings. For the 10 months

less

around $3.25 a common share, off

seem

Corp.

Stock Offered at $6

seemingly would fit well into

Inc.

Burr,

(jointly).

the yield approximately the same,

Union Pacific

Coffin

and

(jointly); Kidder, Peabody & Co. and White, Weld &
Co.

many

until

expected

competitive bidding. Probable bidders: Halsey, Stuart &

Offering—Not

reported that the company plans the sale

$20,000,000 to $25,000,000 of additional common
stock.
Proceeds—For construction
program.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Merrill Lynch, Pierce, Fenner & SmithStone & Webster Securities Corp.
Bids—Expected to
on

plans to issua

by competitive bidding.
Stuart & Co. Inc.; Smith,

Halsey,

Boston

of from

received

Co.

be determined

^ Virginia Electric & Power Co. (6/2)
Jan. 5 it was reported that the company plans the sale

Light

early in 1.959.

—

Expected early in 1959.

dent, that the corporation plans to raise about $90,000,000 through the sale of new securities (tentative plans
call for the sale of bonds, debentures and preferred

announced that company

Securities & Co. (jointly); White, Weld & Co., Kidder,
Peabody & Co. and Salomon Bros. & Hutzler (jointly);

Americar

Power

was

Barney & Co. and Robert W. Baird & Co., Inc. (jointly);
Equiiaoie toecunues Corp. and Eastman Dillon, Union

Su¬

Proceeds—

the

17 it

and sell $10,000,000 of first mortgage bonds. Proceeds—
To retire bank loans and for construction program.
Un¬

Approval

York

Court (expected within two months).

the

Chemical

Corp.
by W. Hargrove, Vice-Presi¬

announced

was

between $60,000,000 and $80,000,000.

lorx.

Wisconsin

issue of common stock
the proceeds of which

reported that an
offered to the public,
was

transaction

the

preme

Eastern Transmission

be
run

Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
Of¬
fering—Has been postponed.
Bids had been expected
about Sept. 30, 1958.
Dec.

will
may

Bell

Thursday, January 8, 1959

Offer began on Nov. 17 and will expire on
Dealer-Manager—Harriman Ripley & Co. Inc.,

16.

i\ewj

Products Co.

Oil

Universal

Jan*

■

Southwestern

reported that the company plans early

was

stock.

Merrill Lynch, Pierce, Fenner & Smith; Kidder, Peabody
& Co. and White, Weld & Co. (jointly).
Registration—
Planned

Virginian Ry.
Aug. 26 the directors approved a proposal to exchange
2,795,500 shares of 6% cumulative preferred stock (par
$40) for $32,148,250 new 6% subordinated income sink¬
ing fund debentures to mature Aug. 1, 2008 on the basif
of $11.50 principal amount of debentures for each pre¬

bank

Securities

Southern

Proceeds—To refund $30,000,000 of outstanding

stock).

Continued from page 43

com¬

Blyth & Co.

(Special to Ihe Financial Chronicle)

cludes extensive agricultural and
industrial sections and anthracite

Gerhardt

mining districts.

Blyth

PORTLAND,
&

Ore.—Thomas

now

affiliated

Co.,. Inc., Pacific

with

Bldg,

Volume

Number 5810

189

The Commercial and Financial Chronicle

The

Indications of Current

week
Latest

Equivalent to—
,
ingots and castings (net tons)—.

to stills—daily average

runs

Gasoline
Kerosene

§74.5

■"76.2

Ago
73.5

Jan. li

§2.109,000

*2,058,000

1.985,000

(bbls.

oil output
oil output

fuel

Residual

(bbls.)
(bbls.)

56.1

Total

7,128,835

•8,165,000

7,097,335
7,822,000

6,983,385

Dec. 26

7,785,000

6,939,760
7,876,000

Dec. 26

29,105,000

28,356,000

28,141,000

27,926,000

Dec. 26

2,621,000

2,455,000

2,234# 00

—Dec. 26

14.208,000

13,872,000

13,291,000

2,509,000
13,200,000

7,987,000

7,553,000

6,536,000

8,019,000

Kerosene (bbls.) at
Distillate fuel oil (bbls.) at

fuel oil

(bbls.)

181,635,000

178,599,000

173,600,000

;

26,155,000

27,936,000

31,932,000

—Dec. 26

130,410,000

138,182,000

161,439,000

194,165,000
28,754,000
151,769,000

Dec. 26

61,629,000

60,668,000

66,199,000

58,906,000

at—

ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of cars)
Dec.
Revenue freight received from connections (no. of cars)—Dec.
ENGINEERING

CIVIL

CONSTRUCTION

431,938

570,927

488,876

546,505
;»;\-U'

ENGINEERING

—

sales

gas

(M therms)

sales

gas

Mixed

539,191

409,598

530.163

458.354

therms)--sales (M therms

gas

gas sales

Intercity

(M therms)

general freight
(in tons)

carriers

AMERICAN ZINC

Dec. 26
Dec. 26

(bbls.) at

transported

Total

construction

State and
„

municipal

Federal

$273,226,000

Jan.

—Jan.

61,992,000
211,234,000
147,107,000

—Jan.

64,127,000

Private construction

Public

Jan.

zinc smelter output all grades
2,000 pounds)
Shipments (tons of 2,000 pounds)
Stocks at end of period (tons)
BANKERS'

DOLLAR

STANDING

DEPARTMENT

STORE

SALES

160,005,000
239,127,000
208,675,000

120,818,000

Domestic

138,458,000

Domestic

21,915,000

30,452,000

123,726,000
14,732,000

Dollar exchange
Based on goods stored

Nov.

Exports

ELECTRIC INSTITUTE:

EDISON

(COMMERCIAL

FAILURES

100

BRADSTREET, INC.

371,000

Dec. 27

205

304

12.364.000

12,379.000

AND

—Jan.

INDUSTRIAL)

DUN

—

171-

Jan.

169

-Dec. 29

Pig iron (per gross ton)
—;

—...

13,017,000

'l:-;;'f'c/.

...

■/);;;185

$66.41

$39.83

6.196c
•

294

$66.41

$66.42

$40.17

$32.83

Retail

Export refinery at
York) ut—
Lead CSt. Louis) at
tZinc

(delivered)

Zinc

Aluminum

.Dec. 31

28.600c

26.575c

26.975c

27.025c

27.725c

22.100c

13.000c

Dec. 31

12.800c

12.000c

10.500c

11.500c

10.000c

Dec.
Dec.

4
—

—

Total

Dec. 31

12.000c

Dec. 31

11.500c

(New York)

-—

Dec. 31

24.700c

26.000c

Dec. 31

98.375c

99.000c

99.375c

91.750c

.Jan.

85.96

85.53

88.38

93.63

Jan.

90.20

90.48

93.97

.Jan.

94.56

95.01

101.31

—

Railroad Group
Public Utilities Group.
Industrials Group.

Jan.

93.08

93.23

97.94

Jan.

89.64

89.78

90.06

95.01

84.17

84.04

84.30

83.15

.Jan.

88.40

88.27

88.54

91.19

Jan.

90.06

90.20

90.34

94.56

Jan.

92.35

92.64

96.38

—

MOODY'S BOND YIELD

...

Jan.

Total

Jan.

Railroad Group

3.83

3.88

3.57

3.04

4.40

4.38

4.14

4.10

4.07

3.67

4.20

4.19

3.88

Orders received (tons-)
Production (tons)

;

liabilities

UNITED

;

STATES—DUN

INC.—Month

...

(NEW)

('(VAL OUTPUT

(BUREAU
of November:

100

Kilowatt-hour

sales

Month of September (000's omitted)
from ultimate customers—month

Revenue

September
Number of ultimate customers at Sept.
STRUCTURAL

FABRICATED

—

30—

550

657

176

17(5

1,121

1.271

1,173

$19,496,000

$12,141,000

$18,061,000
5,912,000

114

559
194
■

a>„>

'93

5,881,000

6,947,000
16,103,000
6,771,000
5,306,000

$56,718,000

$47,268,000

$52,899,000

12,090

13,633

9,270

16,549,000
9,483,000

12,895,000

13,420,000
2,611,000

38,508,000

39,100,000
*1,999,000

1,928,000

49,215,267

48,919,378

47,382,105

$840,854,000

$836,479,000

55,942,467

55,830,000

$793,263,000
54,948,670
;

'"-'i

107,300
31,200
19,400
186,900

195,500

256,300

230,600

234,700

4.10

.Jan.

4.25

4.23

3.98

Gas-fired boiler shipments (units)—.—,——
Domestic gas range shipments (units)—

Jan.

389.4

392.5

392.3

shipments (units)-—

(units)

water heater shipments

Gas

ERNORS

<&)

255,176

(fi)

295,919

259,412
286,263

307,873

—Dec. 27

.Dec.

fa)

Dec.

Dec. 27

217,959
334,083

82,60o

24,700
14,700

364,444

369,636

213,154
376,218

110.38

109.15

110.54

108.51

SYSTEM—1947-49—100—Month

Unadjusted
Index

November

Month

2,856,000
441,370

2,657,090

2,996,500

1,439,940

410,010

Dec. 13

2,362,540

2,037,880

1,116,820

—Dec. 13

2,803,910

616,710
2,340,070
2,956,780

Dec. 13

555,110

12,447,890
581,310
36,900
548,440

268,600

COMMERCE)

—

—_——-

Nondurables

—

Total

740,440

343,600
352,490

—

Sales

-Dec. 13

541,440

585,340

Dec. 13

883,490
200,860

1,060,270
218,860

456,097

Dec. 13

900,570
125,840

104,000

Gold On fine ounces)

Dec. 13

1,091,355

858,765

1,292,215

984,605

419,320
523,320

Silver

-Dec. 13

1,061,428
1,280,288

4,294,600

4,138,970

378,390

—

(in fine ounces)

r-;s

—

Copper (in short tons)——
(in short tons)

2,239,637

(in short tons)

Zinc

—

683,030

572,750

4,797,210
870,770

3,445,085

4,028,318

1,888,630

PLANTS

4.017,835

4,899,088

2,287,130

FACTURERS' ASSN.—Month of November:

398,500

vehicles-

Number of passenger cars

trucks
Number of motor coaches
of

Number

EXCHANGE — SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers' purchases)—t
—Dec; 13

$83,249,999

-Dec. 13

1,780,255

1,248,520

1,588,793
$73,836,477

1,884,230
$89,140,083

$48,138,353

1,884,693
10,092

1,154,535
12,082

1,874,601

purchases by- dealers (customers' sales)—

motor

Round-lot sales by dealers—
Number of shares—-Total sales.
fihort- sales
l

-Dec. 13

9,568

1,770,687

1,550,232
8,853
1,541,379

-Dec. 13

$84,157,800

$71,225,175

$90,715,850

1,142,453
$43,203,921

-Dec. 13

603,020

468,220

603,110

334,150

CAPITAL ISSUES IN GREAT BRITAIN
MIDLAND BANK LTD.—Month of Nov

Other sales.

-Dec. 13

603,020

468,220

603,110

334,150

-Dec. 13

585,930

542,120

609,380

441,510

TOTAL ROUND-LOT STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOB ACCOUNT OF MEMBERS (SHARES):

(at

end of month—barrels)

in¬

Total

Dec

.Dec

20,163,600

735,130

1,006,060

603,700

17,848,630

20,820,850

11,695,090

18,583,760

21,826,910

12,298,790

S. DEPT. OF

-Dec. 30

products.
__

(other than farm and foods.

119.2

119.3

119.0

118.4

-Dec, 30

91.1

91.3

91.1

93.1

-Dec. 30

108.6

108.7

108.5

108.0

-Dec, 30

102.7

102.4

.101.7

98.2

-Dec

127.2

127.0

125.8

146,523

2,533,256

67,039

61,222

86,876

19,414

20,983

27,718

29,387

28,769

42,370

609,570

331,817

670,367

514,480

261,950

94,915

69,737

578,921
91,701

175

130

245

£7,116,000

£24,758,000

£10,998,000

36,615,000

31,597,000
34,767,000

20,412,000

24,449,000

30,121,008
30,847,000
19,213,000

$903,031,301

$846,947,921
630,127,826
96,274,875

$928,578,034

651,224,849
108,958,035
114,687,960

93,564,724

698,435,503
106.727,719
99,735,398

97,000,000

73,000,000

81,000,000

$1,021,859
135,951
492,687
170,394

$995,170

$796,235

296,072

292,227
472,411

of October:

Total

operating revenues
operating expenses-!—

Total

railway

REAL

FINANCING

ESTATE
OF

AREAS

BOARD—Month

—

NONFARM

HOME LOAN BANK

Sept.

(000*s

loan associations
companies
Banks and trust companies

omitted):

Savings and

Mutual

savings

banks

Individuals
Miscellaneous

UNITED

♦Revised figure. (JJncludes 1,079,000 barfels of foreign crude runs.
§ Based on new annual capacity of 140,742,570 tons
as of Jan.
1, 1953, as against Jan. 1, 1957 basis of 133,459,150 tons.
tNumber of orders not reported since introduction of
Monthly Investment Plan. J Prime Western Zinc sold on delivered basis at centers where
freight from East St. Louis exceeds
one-half cent a«-pouttd.
(d) Not available.
?

164,344
3,082,433

148,402
2,417,095

EARNINGS CLASS I ROADS (AS¬
SOCIATION OF AMERICAN RRs.)—Month

Insurance

Commodity Group—
commodities

28,215

RAILROAD

operating income before charges
Net income after charges (estimated)
—

867,120
19,296,480

*26,388

32,847,000

(barrels)

Production

Shipments from mills (barrels)
Stocks

Net

Dec. 13

$54,166

MINES)—

Taxes

Total.round-lot sales—
_

*$49,425

Month of October:

capacity used (per cent)
—Dec. 13

Round-lot purchases by dealers—
Number of shares

22,346

$49,250
26,639

NEW

PORTLAND CEMENT (BUREAU OF

sales

$31,820

FACTORY SALES FROM
S.—AUTOMOBILE MANU¬

VEHICLE

MOTOR

Total number

■TOOK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND SPECIALISTS ON N. Y. STOCK

1,746,758

*21,359

production of recoverable metals in the

3,954,535
4,637,565

-Dec. 13

♦$28,066

United States:

Dec. 13
Dec. 13

$28,051
21,199

Month of August:

Dec. 13

Dollar value.

74.5

METAL OUTPUT (BUREAU OF MINES)—

Lead

Dec. 13

total sales

66.6

25,900

Other sales

Dollar value

65.9

SERIES

NEW

Short sales

of shares

142

1.385,420

Total round-lot transactions for account of members—

____

139

143

September (millions of dollars):

Durables

35,200
626,820
662,020

purchases

138

144

Inventories—

Mine

Other sales
Total sales.

141

COMMISSION—

Railway Employment at middle of
(1947-49=100)

(DEPT.

.Dec. 13

—;

Nov.:

adjusted

Seasonally

MANUFACTURERS' INVENTORIES AND SALES

.Dec. 13

Short sales.

RESERVE

FEDERAL

THE

INTERSTATE COMMERCE

Jan.

transactions initiated off the floor—
Total purchases

■.' 124

21,800
17,700
215,400

4.39

Other

All commodities

215

108

106,800

Gas conversion burner

4.40

40,800

foods

-V-233

190

259,016
307,080

4.41

500,640

Processed
Meats

63,580,000
210,791,000

242,635
271,088

.Dec. 13

Farm

8,906,000
212,766,000

(tonnage)—estimated—___
(tonnage)—estimated

Contracts closed

Shipments

Jan.

-Dec. 13

All

242,354,000

•'

GAS APPLIANCE MANUFACTURERS ASSOCIA¬
TION—Month of October:
Gas-fired furnace shipments (units)
-

4.07

„

-U.

250,882,000

TION)—Month of November:

4.33

the floor—

Other sales
sales

'ft

CONSTRUC¬

4.52

WHOLESALE PRICES, NEW SERIES
LABOR— (1947-49 = 100):

279,622,000
116-650,000

(AMERI¬

STEEL

4.54

in which registered-

sales

94,250,000

INSTITUTE

4.53

sales

Short

459,495,000

—

Customers' short

353,638,000
16,509,000

customers—•

ultimate

—Jan.

Number of orders-^-Customers'

347,699,000

EDISON ELECTRIC INSTITUTE—

4.93

Other sales

Odd-let

$2(58,094,000

83,810,000
1,585,000

lignite (net tons)
Pennsylvania anthracite (net tons)

4.84

Short sales

Number

$246,187,000

MINES)— Month

4.41

Total purchases...
Short sales

sales

$250,822,000

IN THE

4.86

TRANSACTIONS FOR ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:

Total

83,100
152,513

BRADSTREET,

November

4.43

ROUND-LOT

Total

liabilities

service

4.44

OIL, PAINT AND DRUG REPORTER PRICE INDEX—

Total

79,754

93,244

210,176

5,309,000

4.85

—

..."

—-

Percentage of, activity
UnfiHed orders (tons) at end of period

Other transactions initiated
Total purchases

65,304

83,606

191,744

INDUSTRIAL PRODUCTION—BOARD OF GOV¬

NATIONAL PAPERBOARD ASSOCIATION:

Other sales
Total sales

liabilities

Transactions of specialists in stocks

..Jan.

MOODY'S COMMODITY INDEX

—Jan.
Baa

AVERAGE

BUSINESS INCORPORATIONS

Jan.

Utilities Group
Industrials Group!

number.

liabilities

Commercial

-a

DAILY AVERAGES:

Average corporate.

1949

service

liabilities

CAN

U. S. Government Bonds.:

Public

—

...

L-Jan.

Baa

Bituminous coal and

U. S. Government Bonds

5,599,392

1,208,828,000 1,254,960,000 1,223,632,Q00

number

Wholesale

MOODY'S BOND PRICES DAM.Y AVERAGES:

Average corporate

5,295,654

between

Manufacturers'

(primary pig. 99%) at

tin

shipped

number

Retail

(East St. Louis)

Straits

number

Commercial

QUOTATIONS):

Lead (New

and

Construction

refinery

5,728,180

■

203

$39.83

127,200

15,861,000
249,314,000

credits

Manufacturing number

Electrolytic copper—
Domestic

warehouse

Total

11.692,000

5.967c

89,600

BUSINESS FAILURES—DUN & BRADSTREET,
INC.—Month of November:

158

6.196c

„

11,100

120,200

OUT¬

shipments

Wholesale

6.196c

Dec. 29

)ec.

—

Scrap steel (per gross ton)

5.278,100

7,800

29:

;

Construction

—

(E. & M. J.

5.843,000
272,000

IRON AGE COMPOSITE PRICES:,'*r
Finished steel (per lb.)

METAL PRICES

7,565,000

558,000

-f

000 kwh.)—__

Electric output (in

*9,030,000

450,000

IND$X—FEDERAL RESERVE

AVERAGE

SYSTEM—-1947-49

5.895,000

5.416,400

4.952,800

9,900

65,174

ACCEPTANCES

163,757.000

5,050,200

5,393,200

FEDERAL RESERVE BANK

YORK—As

$259,236,000

Dec.
Dec.

—

Pennsylvania anthracite (tons)—

3,523,300

NEW

$399,132,000

COAL OUTPUT

Bituminous

Ago

(tons of

foreign countries

(U. S. BUREAU OF MINES):
coal and lignite (tons)

Month

INSTITUTE, INC.—Month of

Slab

185,672,000

Year

Month

November:

$307,597,000
121,925,000

of that date:]

by 385

NEWS-RECORD:
l

are as

Latest

AMERICAN TRUCKING ASSOCIATION, INC.—
Month of September:

Finished and unfinished gasoline

of quotations,

cases

either for the

are

AMERICAN GAS ASSOCIATION—For month of
October:

1,515,000

Dec. 26

or,

Ago

Stocks at refineries, bulk terminals, in transit, in pipe lines—

Residual

that date,

Manufactured

(bbls.)

production and other figures for the

cover

Dates shown in first column

YeM

output (bbls.)—
output (bbls.)

Distillate fuel

Month

Week

month available.

month ended

Jan. II

gallons each)

Natural

AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output—daily average
Crude

Week

Steel

following statistical tabulations

latest week

Business Activity
AMERICAN IRON AND STEEL INSTITUTE:
Indicated Steel operations (per cent capacity)

(141)

STATES

BUREAU

(000's

Exports

lending

479,045

institutions

EXPORTS
CENSUS

—

AND

123,566

353,541
121,439
288,479

343,153

$2,596,008

$2,534,621

$2,026,413

$1,361,700

1,395,900
952,500

$1,540,300

IMPORTS

Month

of Sept.

omitted):
—

129,859

475,771
169,183

———

1,115,900

1,008,700

The Commercial and Financial Clironicle

(142)

New GNP Record and
•*;•'

•

EITHER PROSPECTUS

Mutual Funds

FREE ON REQUEST

J Incorporated
!

Investors

ESTABLISH CD 1925

Institutional Fund Share Buying

A mutual fund investing in

Increase

list of securities selected for

possible long-term growth of

capital and income.

(mutual fund)

of 87 open-end

companies shows that 111,394 shareholder accounts
are now held by fiduciaries and other institutional Investors,
the
National Association of Investment Companies announced, i The
total value of these holdings was estimated at $793,066,000; the

{

account was valued at $7,119.
new study indicates continuing acceptance of investment
shares by institutional investors when compared with
surveys made in 1956 and 1957, the Association noted. Reporting
companies indicated 89,559 institutional accounts as of September,
1957 and 61,494 at the same time in 1956.
The current study is based on data from companies repre¬
senting 63.4% of assets of the Association's 146 mutual fund
members on September 30, 1658. The 1957 study covered com¬
panies representing 79.7% of assets of the 136 mutual fund
members in September 1957. In 1956, the study covered companies
average

The

company

Incorpora t e d
Income Fund

A mutual fund

list

income.

investing in
for

of securities

current

200

Corporation

Berkeley Street

Boston, Mass.

organizations, etc. They hold chares valued at $127,910,000 in
11,409 accounts. The average account held by this group amounts

$11,211.
Business

organizations—corporations, pension and profit shar¬

plans and unions — hold 8,617 accounts with a value of
SI64,988,000. The average account for this group was the largest—
$19,146.
:
ing

fee
Canadian Fund Inc.

l) I F Fund

booklet-

prospectus
describes

Petroleum

Asset Value

Reports Gains in

Up 22.2%

Per Share & Assets

Diversified

Canadian

Fund,

of GROUP
SECURITIES, INC.
A mutual fund

founded in 1933,
which offers an

•

possibilities of *
selected

common

stocks of the oil

and gas

industry.

cfc

Nomo_

Address.

.Slate.

DISTRIBUTORS GROUP, INC.

fund's

the

investments;

(3) acquisition during the
the

and

year

$16.6 million of assets of Man¬

hattan Bond

Fund, Inc.

York 5, N. Y.

Total

assets

net

year

ago

were

$58,185,498, at
19,083

which time the fund listed

shareholder

accounts.

report, signed by Chairman
Wm. Gage Brady, Jr. and Presi¬

Lazaiid Fund,
inc.

dent

Hugh W. Long, makes the
point that "There is still some
concern
over
the
possibility of
further inflation arising from the
prospect

vances

additional wage

industry

and

ad¬

govern¬

mental deficits aggravated by

international

military

Restrictive Federal

cies"' and
deemed

the
situation.

Reserve

poli¬

other
restraints
desirable by government
any

authorities to influence the avail¬

Report

ability
retard

the

of December 31, 1958

and

of credit could
expansion of busi¬

cost

further

cents

source

National

Jr.,

Securities

curities

Series

mutual

1957.

Canadian

Fund,

dividends

totaling 43 • cents per
during the- year, the -same

paid in 1957.

Commenting

the Canadian
economy, Mr. Bullock noted that
it, like that of the United States,
on

recession ' during the
"However," he noted,
"according to recent estimates, the
gross national product
should
be somewhat above $32 billion as
compared
with $31.4
billion in

past

year.

1957."
record

all

the

commendable," Mr. Bullock said,
"since
Canada's
economy,
based
essentially on raw materials, was
adversely affected to a substantial
degree by the business recession
in the

United States.

"Adverse developments that, oc¬
curred in the area of raw mate¬

rials,

which

and

extensive labor unrest would also

other

largely

economic develop¬

Assets

than

300

were

offset

areas.

"The

by
r

fact

that

growth in

the

Canadian

Available upon request

"Viewing the economic scene
as
a
whole, your management
does not see any basic weaknesses
in
the
business picture
at this

economy

setbacks

could take
and

still

such

advance

serious
during

the year is an indication of

ada's

inherent

Can¬

vitality," he said.

time and believes that the under¬

lying forces responsible for the
growth of the economy will con¬
tinue to operate over the longed

Street,

New York 5, N. Y.

term."
At

(Special to The Financial Chronicle)

KANSAS CITY, Mo. — John N.
has become affiliated with

Mann

the

1958

year-end,

63.5%

of the fund's total net assets were

invested in

Christopher Adds to Staff

bonds

common

and

cash

preferred stocks."

stocks, 27.1%
and

9.4%

the

study

dealers

across

through investment
the nation.
%
i

VF*. U

lip p

Xivlp' i.

•

j t

•

U11KJU6
(

company's 1959 Forecast

was

pre-

sented.

construction

Record

securities profits individually received.by each shareholder in 1958;,1

„

outlays,
shifts in corporate inventory policy from liquidation to accumulation,
new
peacetime
in
peaks
Federal, state and local government spending and a substantial

has bee« mailed to the 43,244
shareholders of Group Securities,
}n.c » according to Walter J. Boyd,
Vice-President and Treasurer of
this leading investment company,
"Each statement," he explained,

are
"shows the exact dollars and cents
bit- amount reportable in the several
lion Gross National Product total! tax categories, thus making it unr
This would be about an 8% in- necessary for the shareholder to
crease over this year's total and bother with any detail as to the:
National considers it a sustainable number ; of
shares owned, per?
but not a boom increase for a
share dividend rates, etc. The
recovery year.
statement is in duplicate so our
The
investment
company
be- shareholders can clip one copy to;
lieves that common stock prices their tax return and keep the secwill reflect the improvement in onc* for their personal records. We
business and industrial activity by also include a general tax-inforcontinuing to move forward in a mation bulletin that explains the
general upward trend with the basis of the computation of the
usual
temporary deviations and shareholder's personalized statevariance among individual issues. ment, as well as a table of state
Wage
increases,
higher
em- ^ax laws that may affect him.
ployment and a longer average
"This unique service is only
work
week
will, National feels, possible," Mr. Boyd said, "through
result in a major increase in labor a highly mechanized IBM. system
income. This would be an imporaccounting and record-keeping.,
tant
factor
in
the
record
$310 Even where a shareholder owns

auto

sales

1958

over

contributing to the $473

seen

Consumer

Personal

Ex-

slower

rate

are

container

manu-

more than one Group f und, we are

a"le to supply

Mr. Boyd said that the Group ;
Securities tax service, now five 1
years old, produces an annual har-

ve®t of "thank you' letters. He :
£°ted that investors using Group's;'
Periodic Investment Plan are particularly appreciative of beings
spared going over many receipts
anc* reinvestment notices:

Welliiigtoii Sees A
Record
Corporate
Profits for 1959
'Profits

of
leading United
corporations in 1959 should

state
reach

new

all

time

peaks," acMorgan
Wellington
and 1 affiliates,
invest-

cording

office

ment advisors of

equipment

d^ces.

Brighter

electronic

and

the

na-

tion's railroads in the coming year
are seen with net income of Class
I

carriers

vicinity
about

expected to rise to the

$750

from

million

$600 million this year.

Forecast

states,

The
that

expect

railroads will register

eastern

greatest

improvement
gain

^ving-'

over

retail

the
h

u g

systems

strong

1958

investment

lieves

t h o

southern

and

should

The

"We

be-

company

trade

will

enjoy

record sales of about

$212.5 billion
6% over 1958.
Greater demand for various types
in

1959,

credit

about

will

reflected

higher earnings for banks and finance
companies, in the opinion
°f the
In

fmids

the field

managers.

of Federal

legisla-

tion, National believes programs
for public housing, highway construction, farm price supports and
aids to small business will be sup-

ported

both parties.

Military

spending is also expected to

rise.

Walter

President

Company

and

;

for

prospects

integrated state- v

facturers,- producers of petroleum
products,: food items, shoes and
leather, tobacco, chemicals, drugs,

Wellington Fund

Wellington

These

two

total

The

Equity

mutual

$840,000,000, owned bv
on

have

exceed

than

280,000 shareholders.
"Based

Fund. '

.funds

which

resources

research depart-

our

ment's

110

comprehensive sampling of
large corporations in 24 major

industry
groups,"
Mr.
Morgan
said} «we currency estimate that
corporate profits during the com-1
ing

will be about 6% higher**

year

than

during

reached

above
The

the previous peak"1
1957, and about 25% *

1958 levels *'

Wellington Company chief

executive

that'

stated

dividends

paid by these no corporations are
ais0 expected to rise in
1959, although by a smaller amount than
earnings. He noted that dividends
in the past year were maintained,
balance

at 1957 levels despite,,
earnings decline
1
Mr. Morgan expects the busi-*

the

ness

recovery

1959i

to continue during

although

slower

rate

than

somewhat

before.

Looking'
activity, he es-

at total

economic

strong

timated

Congressional pressure for easier
conditions, but adds, "We

product

that 1959 gross national
(total goods and services;
in the United
States)*

The

...

over

ments,

;

$400 million. IvCCClVC
metropolitan area >n
n
o
investment dealers and salesmen
X £1X Report Service
heard these views expressed at a
X
*
meeting at the Bankers Club of
A precise statement o: the Fed- :
America at which the investment era* tax status of all dividends anqv
with

western

"This

to unfavorable

detrimental to the economy.

this

from

;'r

ing that National expects to distribute more than 600.000 copies

funds

Bullock,

paid four quarterly cash

activity, particularly in the
housing field. "Any prolonged or

ness

44 Wall

Simonson,

mutual

Calvin

distributed

Inc. also

suffered

The

Tiie

Diversified

Investment Fund, Inc. on Nov. 30

Annual

Inc.,

penditures forecast by the investInc., a balanced mutual fund in¬
ment company for 1959.
group, reported a net -asset value?
vesting in bonds and preferred
Cost
controls
effected
during
per
share
of
$18.09
at
the
end
of
stocks as well as common stocks,
the recent brief recession appear
its fiscal year on Nov. 30, 1958,
to
iepoits an increase in net asset
have
lowered
break
even
which compares with $16.36 at.
value from $7.43 to $8.90 per share
points for many manufacturing
during the fiscal year ended Nov*' November's, end in 1957, Hugh enterprises.- As operating rates
Bullock,
President,
told
share¬
30.
This is a gain of 22.2%.
rise, National predicts wide gains
holders in the annual report just
in net profits in many industrial
According to the fund's annual released.
!
; corporations, primarily those in
report, year-end figures of $89,Total
net
assets
of
Canadian:
the durable' products field.
Im251,292 for total net assets and Fund, Inc. were $45,654,958 at the
proved earnings are seen for. pro¬
27,482 in number of shareholders end of the 1958 fiscal year, a record
ducers of steel, cars, trucks, tires,
are new record highs.
high which compares with total auto
accessories, building mate¬
net assets of $39,034,322 at 1957
The report makes clear that the
rials,
non-ferrous
metals,
farm
fiscal
year
end,
Mr.
Bullock equipment, industrial machinery,
substantial increase in total net
added.
assets is the result of (1) pur¬
electrical
equipment,
appliances
During the past year 57 cents and household furnishings.
chases of additional shares of the
fund by existing and new share¬ per share were distributed from
Also
seen
headed
for
better
realized capital gains as against
earnings
but
at
a
somewhat
holders; (2) higher market value
for

City.

63 Wall Stresf, Now

20%

investment in

the growth

Fund,

fund

Corporation, sponsor
manager of the National Se-

billion

Investment

20% Profits Rise Expected

Research

and

rise

investors — banks and individuals serving as
trustees, guardians or administrators—are the largest institutional
group, holding 87,832 accounts with a market value of $439,215,000.
The average size of these accounts is $5,001.
The second largest group of accounts is held by institutions
and foundations such as hospitals, schools, churches and religious

investment dealer.

The Parker

assets

member companies'

Fiduciary

fund is available from
your

125

1956.

June

cacti

the

70.3%

.representing
A prospectus on

Henry

Thursday, January 8, 1959

by Simonson-. ,v"';•

corporate profits over 1958 were
among the predictions made Dec.

investment

survey

rai«e

high in 1959 ofutilities
and
40
railroads.
Mr. Gross National Simonson announced at the meet-..

from

and

President

shareholder

recent

billion

Product

By ROBERT R. RICH

all-time

new

$473

Forecast

looks

for

credit
do

not

serve

believe
Board

the

will

Federal
abandon

Reits

Christopher & Co., Board fight against inflation in the year
of Trade Building, members of the ahead."
The 1959 Forecast contains
New York Stock Exchange.
He
was formerly with Slayton & Co.,
estimated earnings and dividends
Inc.
per share for 65
industrials, 25
B.:C.

produced

would reach

$470 billion,

crease

1958

high.

over

and

7% in-

all-time

expects a 9% increase
in the Federal Reserve Board In-

dex of Industrial Production,

Turning to specific areas, Mr.
Morgan said that such basic indus-

Number 5810

Volume

ries

The Commercial and Financial Chronicle

automobiles, steel, chemi-

:als, metals, machinery and rubber
be among the leaders in

(143)

Continued from page 2

would

he "recovery.

He also anticipates
hat- capital expenditures by busiless on new plant and equipment
will-increase in the coming year
*

"Investors
he

should
in

that

realize

stock

common

1958 has

anticipated

extent the recovery in busi-

annually.
been

Cash

seem; substantial enough
to believe that the present atmosphere of gloom surrounding the
its shares should in
six to nine months again be supercompany and

business.

lying values and earning power.

none

the

Investors who wish to

new

resources

Although resumption of

selves,

company's head office which
Americandividends is not looked for in the the
me cempany
s^eaa oiiwe wiuen
President (138,880 class A shares t01^1se€a!5le
e^mn.? P0;Yer, J® located at One Eleven Sutter
and 1,050,000 class B shares). Sig- 1S
i
higher. For the nine Street, San Francisco 4, California.
nal Oil & Gas Co. is the other mont^.en^pd Sept. 30, net income

than a-half interest in

N. Sims Organ With
L D. Sherman Go.

ness,"

this

...

•

Morgan also emphasized that
orjservative investors should con¬
investment

forgotten tnat

Chrysler

possesses the

maximum

leverage in the industry.

tinue to balance their

securities, such

attractive

investments.

stock

;

Hunt Named Trustee of

Putnam Growth Fund
BOSTON'; Mass.
Hunt

elected

was

Natomas
At

has

risk

downside.

Stock

fies

Boston
1 9 4 6

two

the

terest in
William M.Hunt

Trustees at the meeting

wqre Charles M. Werly, ; George
Putnam, Jr.* Vannevar Bush, Horace S. Ford, Louis J.
Hunter, and

Stanley F. Toele.

contributed

during

Debentures Offered
An

underwriting group headed
jointly by Lee Higginson Corp.,
Blair

Co.

William

and

Co. is offering publicly
(Jan, 8) a new issue of
$30,000,000 Household Finance

today

Corp. 4% %. sinking fund deben¬
tures due 1984.
The obligations
are
priced at 99%, to yield ap¬

proximately 4.693% to maturity.
Net proceeds from this sale will
be used to reduce short-term bank
loans

which,

inrnrred

were

the romnanv's established

credit
ins

provide

funds

customers

under

lines

for

lend-

the

usual

of fmsiness

course

Household Finance is

largest

On Sept. 30,

pany

had

the

con-

small loan, busi-

ness.

offices

of the

one

organizations in
finance

sumer

total

1958 the
of

located in

943

652

com-

branch

cities of 39

states and all Canadian provinces.
The debentures

not redeem¬

are

able for five years.

Optional

re¬

demption prices starting Jan. 15,
1964
A

scale downward from

104%.

sinking fund beginning in 1964

will

redeem

68%

the

deben¬

tures
prior to maturity at the
principal amount and accrued in¬

terest.
In

the

erating

calendar
revenues

Finance

were

mcome

came

was

the

year

1957

op¬

Household

$125,83o,000, and net
to $23,933,000. This

13th consecutive year

increase
ror
operating revenues
and the 12th such for net income.

the

company

in revenues
months ended

$885,000

the

nine

nine- months

ended

30, 1958, operating revenues
$95,182,000 and net income
$ 17,302,00Q-,f compared

Sept.
were
was

with.$95,-

037,000; and $18,520,000,

respecthe like period of 1957.

tively, in;

„

Baruch's

contain

66,000
have

from

acres

which natives

Retail Division.

been

DIVIDEND NOTICES

AMERICAN
CAN COMPANY

look"

valuable

rock

and

up+wPPn

900 ftflO

____

„

Ill the case

Say.

XV,-

Of the latter

eventuality, it would depend on
large the increase was. But

how

thing

one

Aggregates

ment

V,
gold

„

certain,

increasp

announce-

the

nrice
Tj i

would cause all gold
shares to soar including Natomas,'
since the company is still viewed
chiefly as a gold producer in the
eyes of the public.
«
The principal subsidiary APL

arid

ILn??-

^?nr?nnn

-.Substantial ..additional deposits are (and its subsidiary American Mail
has one of the best
fvai,able as demand for these ma- Line,
t:— Ltd.)
t
balanced and most modern fleets
tena*s expands.
the

end

STOCK

COMMON
On December

30, 1958 a quarterly divi¬
dend of fifty cents per share was declared on
the Common Stock of this,

Company,

pay¬

able

February 16, 1959 to. Stockholders of
record at the close of business January 28,
books

Transfer

1959.

remain

will

open.

Checks will be- mailed.

JOHN R. HENRY, Secretary

1957,

Natomas'

the

American

Merchant

GREEN BAY & WESTERN
RAILROAD CO.
.

The

BoartF of

fixed1 and

has

Directors

dividend of $5,00 to be- payable an the capital
and $16.00 to be tue amount payable on

stocK,
Class

Debenture Coupons
(Payment No.
of the earnings for the year 1958,
at Room No. 3400, No. 20 Exchange

"B"

40),

out

payable

after
stock
record at the

New York 5, New York, on and
February 9. 1959.
The dividend on the

Place.
will

paid

stockholders

close of business January .23, 1959.
There will be no further payments on

tered
New

Regls-

Debentures.
York4

Y..

January*

1959

LONG ISLAND LIGHTING COMPANY

QUARTERLY

Natomas

DIVIDEND

STOCK

COMMON

The Board of Directors has de¬
clared

quarterly dividend of
share payable on-the
Common Stock of the Company
on
February 1, 1959, to share*
30

cents per

holders of record
business

the close of

January 13,- 1959k
VINCENT T. MILES
Treasurer

December 31,1958

the

has no profitisharing, pension,
retirement or
stock option plans for the benefit
of management. In short, here is
the ideal owner-management sit¬
and

company

DIVIDEND NQTICE

WORLDWIDE

WMIIHIMmMM*

TENNESSEE
CORPORATION
November 18,1958
CASH DIVIOlND

dividend

fiftyfive
share was
December

(55^)

cents per
declared payable

18, 1958, to stockholders of
record at the close- of busi'.

BANKING

DIVIDEND

NOTICE

ness

December 4,1958.

uation in which both stockholders
"l'//

and

management can be rewarded
only if the company prospers and
the price of the stock rises. More¬
since the common stock pays
dividend, this is an ideal special situation for investors pri-

over,

Manhattan

marily

interested

long-term

has further expanded
shipping empire through the
acquisition of a 3SL% interest in
Natomas

its

Pacific
Far

Far

East
and

East

Lines.

currently

earned

1957. Natomas

around
share in
slightly more

$516

owns

Pacific

sells
a

the

dividend of 60c per

share on
13,090,000 shares of the capital
a

stock of the Bank,

v. CHARTERED
-

capital gains.

EXTRA CASH

J
1799

THE

Manhattan
BANK

payable February

13, 1959 to holders of record at the
close of business
The

Chase

The Chase Manhattan Bank has de¬
clared

transfer

January 15, 1959books

will

not

closed in connection with the pay¬
ment

cents

share was declared payable
January 9, 1959, to stock'
holders of record
of

business

the close

December

1958.
61

Vice President and Secretary

DIVIDEND

dividend

extra

twenty'five (25 f)

of this dividend,
MORTIMER J. PALMER

de¬

clared $60.00 the amount payable on Class "A"
Debenture Coupons (Payment No. 63>j and a

Ma-

stated net asset value was $9.06 a rine. The two lines operate eight
dates back to
1956 when APL share which compared, to $7.70 the new, fast mariner vessels, five
Associates was acquired through year before. Unquestionably, asset passenger ships and 23 freighters,
an
exchange of stock. APL, in value has increased further during Recently, plans were completed
turn,
was
primarily a holding 1958. For one thing, the company for construction of the largest and
company with assets concentrated has been purchasing and retiring fastest ocean liner ever built for
in the highly profitable steamship its own shares which, of course, the Trans-Pacific passenger trade,
company American President increases the asset value of the
The technical position of the
Lines. (The class "A" shares held remaining shares
outstanding, shares appears to be exceptionby APL were acquired for $35 a Thirty thousand shares were re- ally strong: For most of the past
share which compares to the cur- tired in 1957 and 32,301 were re- three years the stock has flucturent
Over-the-Counter
price of 'tired in the first nine months of ated between 5Y2
and 7%. A
70 bid.)
Top officials of Natomas 1958. Moreover, the current value. narrow range like this usually recontrolled APL Associates and re- of other assets is not fully re- fleets accumulation as the stock
ceived
about
850,000 shares of fleeted in the balance sheet and gradually passes from increasingNatomas for their APL Associates would increase the net asset value iy
impatient weak hands into
stock. Since then officers and di- by
a substantial margin if the stronger hands who are willing to
rectors
have
steadily added to actual value was shown.
patiently hold for very much
tbe*r holdings by buying Natomas
The estimated liquidating value higher prices. That is to say, there
ShBres on the open nrarket. Judg- of Natomas' mineral and farm is no stale public position. Inin2 by SEC reports the average lands has not been disclosed by stead of wanting out in the future
cost of these purchases was ap-. the company and could, at best, the public will more likely be
parently around $7 a share. All only be an educated guess. How- attracted to Natomas by the low
told, as of Sept. 30, top manage- ever, the writer estimates that the price of the shares. And, as a
ment owned 1,075,000 shares, or value of all of Natomas' undermatter of fact, in recent sessions
about one-third of the 3,183,135 lying assets before allowance for the stock has pushed to a new
outstanding. Rudolph K. Davies, retirement of funded debt ap- three-year high on rising volume
Chairman, owned 933,308 shares, proximates $14 to $16 a share or of transactions. Yet the stock can
with the remainder held by 10 $11 to $13 a share, after allowance hardly
be considered overexother directors and officers.
for deducting all future obliga- tended in view of the numerous
Total
remuneration
paid
to tions ahead of the common stock
issues that have
doubled and
these
officials amounts to only'
Prior to January, 1956, divi- tripled in the past year on the
$50,000, or thereabouts annually, dends were paid; at the rate of 6(1 strength of far less tangible under¬
"new

associated with the New

now

present, Natomas is actively
developing
gold
properties
in York office of L. Dt Sherman &
Bolivia through its two-thirds in¬
do., 39 Broadway, New York
terest in Bol-Inca Mining Corp.
City, as Sales Manager of the
Bol-Inca holds perfected claims to

Company. According to company
sources, sales of mineral rights of
sand, rock' and aggregates now
under
contract
are
expected to
nmniinf +n

firm, Baruch. Brothers,

$1.13 earned in 1957.

cific Cement and

Sept. 30.

Household Finance

Weld &

the

in¬

and espe¬
cially in
in ns
its common
Gold
uctuy
tummuii shares.
suaics. ljuiu
dredging operations are becoming
much less important although the
three dredges still in operation

The

White.

general pub¬

should stimulate wider

lic Tit

™cdS>
Sifxe
1 9 5 0.
Reas

look becomes

new

better known to the

Putnam

elected

As this

years.

man¬

For
b 1

www

which

agement Comager

retirement

land holdings in California's Sac-

several

verrera

Man¬

pany,

for

R. W. Bridwell
I- (since.' 1906)
aggregate deposits are also owned.
g gold mining
The latter deposits are being de£ company has undergone a
plete 'transformation
in
recent
Fa~

partner of The
Putnam

one', thing,* this

since
nd

Ex¬

counts.

George Put-.,
nam
Fund of

allowance

to the

Manager for the late Sailing P.

The largest
|ng promising gold placers. It
industry that has been attracted should be
emphasized that manto the; area. where Natomas owns
agement is aggressively exploring
land is Aerojet- General which is
every possible way that its idle
expanding its rocket researqh and dredging equipment and experi¬
development program at a record ence can be
profitably utilized.
rate.
From time to time small
Another string in the Natomas
parcels of land are sold and rev¬ bow is that the
marginal gold
enues from this source amounted
properties represent a hedge
to $239,960 during the first nine
against either a depression or an
Another several
months of 1958.
increase in the price of gold. How
thousand acres of mineral prop¬ much actual effect either would
erties- suitable
for
dredging or have On earning power is difficult

change, quali¬

lyst with The

*1 ok

come

fl*35 a sbare> compared

shares) and the Pacific Far East
equity 1 is figured at its current
market price, these holdings are
worth $10 per Natomas share, be¬

may

dustrial development.

New! York

ana¬

Sests full year profits

the

been

research

pin**

recovering gold for
risen to record heights it becomes ^^9 ■ Valley
surveys
(7,500 acres) many years. Preliminary
- - increasingly difficult to select w }5
1S ]fase<* *0 tenants on a indicate that dredging operations
stocks that still have a wide ap- cas
*2^: share-crop basis. More- are entirely feasible. The com¬
over,
these ' lands are becoming pany is also now
preciation polaunching an ex¬
progressively more valuable for ploratory program in Ecuador on
t e'n tia 1
yet
both residential building and ina sizable concession area containentail mimi-

Trustee of The

investment

an.

th*

Natomas also has valuable farm

;ing around
Putnam
Growth
Fund
at
the
eight and oneFund's
first annual
meeting of half on the
He

#nr

1S nP Quoten marKet for tne class

Company
time when the market has

mum

shareholders.

martpf

mintpra

funded debt of $10.9 million.

William M. Natomas, sell-

—

fore

Lake Tahoe, Nevada

be¬

of American business contin¬

ue! to be favorable."

BRIDWELL

Zephyr Cove

com¬

"We

lieve," he said, "that the long-term
outlook for. the growth and prog¬
ress

RODGER W.

income

bonds and pre¬

stocks and

ferred

fixed

between

programs

mon

N. Sims Organ, formerly Sales

„

■I

Mr.

all prospective buyers

should certainly do, can obtain the
latest annual report by writing to

major stockholder, holding 87,600 ec*u
7 cents a share, comMr. Morgan stated
"For- seded by a general atmosphere of class ' A f and 1,050,000 class B pared to 31 cents for all of 1957.
If Natomas' equity in the undis¬
reasons-successful investing in encouragement.
shares or slightly less than a 50%
tributed
earnings of steamship
1959
will require an
especially £ The'difference in market
price interest. If American President's companies is consolidated, net incareful selection of individual seif this occurs, could be substantial. 1957 earnings of $6.7 milhon are
eaualled $104 which suemrities.
It should
not
bo
forcntton
that
capitalized at eight times (there t l
equauea
wnicn sug
some

investi¬

gate the Natomas picture for them¬

are

being earmarked for reduction of
indebtedness and expansion of the

The Security I Like Best
resources

Since then

declared

management.

increase

>rices

cents

have

John G. Grienburoh
Broadway
Treasurer.

New York 6, N. Y.

The Commercial and Financial Chronicle

.(144)

Thursday, January 8, 1959

would Tike

BUSINESS BUZZ

yields

have

would

that

tax

any

from

come

foreign investment risks, but
.fcl'-V:

on..
Behind-the-Seen® Interpretation*
(rem the Nation's

Capital

One

the

tax

reasons

provisions.
is the

gov¬

legal dol¬
It is seriously in

lar it can get.

l/li

liberalize the

ernment wants every

V#1II

/■ 13/1

dfJl I I'M*

;

•

far-ine government is not ready

debt.

,..

■; '•

T'.y

&l \This column is intended to

re«

ct the "behind the scene" inter-

speeches by the Republicans be¬
the new Congress settles

WASHINGTON, D. C.— The
Congress is off and run¬
ning. What will happen during
the year is any one's gue^s, out
it appears safe to say it will be
a lively session.
The reason it
affair

Despite the fact that the 86th

There

will

there

Speaker

House

both

from

than along strictly
party lines of Democrats versus

good

middle

servatives,

parcel

there

for

Democrats

have

Howard

Smith,

reach

proposed

House for consideration.

may

some

not

may

votes

influence

and

Rule

called

United

enough

have

amend

there

However,

rule.

little

liberal

getting

bloc

its

members

own

offset

would

appropriated

sentative William M. Colmer of

that

they

Mississippi.

monkey
Conciliator

Rule 22 of
Senate, it requires a vote of
the

entire Senate

ate has
der

members.

existing

rule

Thus

22,

ture.

Advocates

the rule want
of

the entire

Senator
of

Texas,

leader, ill

for

un¬

it would

take 66 members to invoke clo-

their

the

veteran

greatly

diluted

in the 86th session.

The

non-South¬

there

are

new

Democrats

ern

reason

elected, to

and

big

additional

spending

the
non-

program

Congress in 1958 will

continue to be felt in the econ¬
omy

voting to invoke cloture.

the

Nation

the

for

the

current

statements from

fiscal

smashed

are

expected

some

fields,

and new heaks scaled in others.

There is nothing imme¬

diately urgent
agenda

this

sometime

traditional

after

the

"When
,

Lincoln .* Birthdav

000

the

people

Sought

than 12,250-,
receiving "social

now

There

7%.

battles

are

shaping

billion

legislative

many

Congress. The

The

Foundation for

—

Education,

the

—

50 cents.

86th

the $77

scrap over

Inc.*
Y.

Interstate

Commission

Commerce

annual report for fiscal

—72nd

budget of President

ended June :30,
1958 —
Superintendent of Documents,

likely to remain around $80 bil¬

lion, thus causing another def¬
icit in fiscal year 1961. So will

fice, Washington 25, D. C.
(cloth), $1.50. • •

gram.

the scrap over labor

socializers

and

Eisenhower

are

and

They will be willing to launch
it

modest

very

statehood
is

There

program.

certain

for

legislation,

Hawaii.

doubt

that

the

the chances of Hawaii. The No. 1

average

and

man

all

course,

woman.

they want

get their foot in the door.
would

widen

program

time

they

maritime

on,

tax

trolled

effect

from

this

taxes
were

checks

pay

sin¬
rising
If there
a

sum,

revolution.

provides
ices in

man

and

woman

Pacific.

The

its

government serv¬
election year, than a

This Con¬
gress is unlikelv to be different

average

would look at

year.

from those of the past.

about

Foreign Investment Impeded
The government of this coun¬

it.

try, and many members of Con¬
Taxes May Rise

gress

^Instead of the country getting
tax

the

new

eral

if
Congress raises taxes in

cut, don't
form.

Some

Democrats,

Paul

be surprised

the

lib¬

Senators

Illinois and
Hubert H. Humphrey of Minne¬
sota, \^ant to either cut or totally
Douglas

advocating

are

that

men

invest

American
more

and

business¬
and

funds in

foreign countries. Sub¬
are being
in¬
particularly in electric
transportation, agricul¬

stantial

amounts

vested
power,

ture and

industry.

allowances

However,
unless this
Con¬
gress provides for tax benefits

granted for oil, natural gas and

to the American investor to risk

other

depletion

minerals

that

cannot

his money

abroad, there will be
hesitancy. The government

restored.

Tobe Lectures in Retail Distribu¬
at

tion

the
—

Graduate

security" benefits get their next

Harvard

Harvard
School

Administration,

Business

University*
of

Business

Boston,

Mass.

(cloth) $3.
Transport Statistics in the United
States for the Year Ended Dec.

1957—Part

31,
W

port

Commerce

Bureau

of Trans¬

^Economics and Statistics,

Washington, D. C.
Trust

Carriers

r—Interstate

Commission,

his

tax statements, and
really
demand that something be done

Your Executives

School

(cloth), $4.75.

Streamlining

tice-Hall, Inc., Englewood Cliffs,
N. J. (cloth).

con¬

lovely

plain, unvarnished fact

non-election

there would be
The

Notre Dame Press, Notre D&met
Ind.

has

the

greatest appropriation bills and

around to collect

tax

—

University of

—

Workload—Ray Josephs—Pren¬

that Congress always passes

ever

country.

came

lump

the

It is

deductions and the tax

collector
in

the

that

Palyi

powerful

Communists.

in this country have had
ister

the

Experience

European

Melchior

statehood

unions have been influenced by

deducted from the paychecks.

Deductions

union

shipping

islands

being

been

has

years

insur¬

goes

Hawaii

•—The

improved

lost out during the past several

responsible

are

and

health

the

that

reason

is to
They

Managed Money at the Crossroads

Alaska

statehood has greatly

year

get

It would look quite innocent to

eliminate

Federal Health Plan

the legislative
time. Actually,

etc.

Irvington-on-Hudson, N.

U. S. Government Printing Of¬

some

Old record's

his predictions if
Ouija Board."

feverish at times; however it is

administrations

shows

his

already beating
the drums for the 86th Congress
to
provide a Federal health
plan for the social security pro¬

Washington

Capitol Hill for the next several

increase of about

The Department of Com¬
merce's
yearly survey by its
business
and defense services

1959.

much

re¬

^Jiat in¬
dustry has op timistio hopes for

lot

confidence

checks, they will get a slightly
larger check. Starting the first
week in February they will get

for

influence

The

may expect a

the

the executive

some

voted by

No "Wild" Legislation Expected

will

off

Southern House members.

two-thirds of those present

weeks.

backs

the

majority

so-called moderate

con

political

the

members of Congress will have

membership.

country

put

strict?,

just

year.

The

confident

are

bit

didn't rely so

Economic

ance

mainder

of pro and

have
he

Republicans who controlled the

modification of the rule to per¬
and

"I'd

White House and

approach to the question, favors
mit

the funds, but

Senate

Lyndon B. Johnson
the Senate majority
a

Congress

changing

simple

1959—Contain¬

articles on Khruschchev's
Bogus Challenge, Alternative to
Competition; How Green is the
Emerald Isle; Inflation Ahead;
Coercion at the Local Level; Is
Freedom
the
Liberty to Re¬
ing

of the coun¬

politicians in the Nation's Cap¬
ital are mistaken, the Southern

invoke cloture. Now with two

Senators from Alaska, the Sen-

can

oil

Unless

the

departments.

Under the present
of

been

is time that

all

Democrats

two-thirds

point

controlled

Democratic

the

(paper) $1.

New Dealers

"spendingest" Administration in

Representative Clarence Brown,

Eisenhower

has

Republican of Ohio, and Repre¬

Johnson

year

fact that the

try. Certainly it

Republicans

have

election

peacetime history

the

conservative coalition of Demo¬

crats' and

almost

will

Administration

enlarged with

Rules Committee

States

the' big

the

House

the

1960.

1960, they

appears

chance of the House

filibuster

the

Presidential

the

raised to $300 billion.
*

22,

East

New York 16, N. Y.

Freeman, January

against it.

are

certain that the debt limit of the

Republicans,

Association,

36th Street,

many

win

election

The Senate liberal bloc, which

also includes

General Motors Cor¬

Unions—Study—American

Bankers

Eisen¬

President

The odds
are

ious

—

poration, Detroit (paper).

Democrats who
are anxious to put the executive
branch as deep in the financial
hole as possible. They are anx¬

the

floor

the

Safety—Charles A*

new

There

the
letting

Contributions

Design

Highway

Chavne

House

the

is another question.

keep

hower.

Conserva¬

policemap ' for

aisles

tlie

Congress will seek
spending for the 1960
fiscal year, starting July 1, with¬
in the budget recommendations

Virginia, serves as

traffic

Automotive

the Democratic

going to be interesting to

the

House Rules Com¬
powerful commit¬
by Representative

headed

bills

Senate

the

and immediate need to curb

big

the

watch from the sidelines and see

same

power of the
mittee. This

tive

and

It is

wing in the
House feels that there is a great
The

busters.

some

Another Hike in Debt Limit

fili¬

stituents to bring an end to

tee,

side

mandate from their con¬

down

Credit

Democrats
feelsl that they

Senate

to be part and

wild legislation.
not they will seek

those sitting

The liberal wing of
the

roaders.

spending proposals by many of

hold

pretty

are

the

of any

Whether

label
be
continued... bickering
between
Democrats and Republicans as
such.
r '.V.,'"7; ; y' J";' .
under the

House

and

ate

Neither is going

There
are
too
people in both the Sen¬

Republicans.
many

Texas,

ADVISOR

Johnson
Rayburn,

Leader

Majority

both
and

tween the liberals and the con¬

FINANCIAL

best long
range guess is that it will not
run
"hog wild." The reason is
the

perhaps

years,

be¬

scraps

of the most liberal in many

one

indication

every

J.C.BOOPLEY

Congress shapes up on paper as

single word—politics.
-

load.

down to its full work

slamb-bang

described

can

and may or may not coincide with
the "Chronicle's" own views.] V '

fore

86th

is starting off asxa

pretation from the nation's Capital

(paper).

Institutions—New edition of

directory of active trust depart¬
ments in United

States, includ¬

ing volume of assets, officers in
charge of trust and investment
divisions, and names of trustee
nominees—Fiduciary Publishers
Inc., Dept. D, 50 East 42nd St.,
New York 17, N. Y.—Prepublication
price,
$10
(orders by
Dec.

22, 1958).

TRADING MARKETS
American Cement

Botany Mills
H ey wood - Wakef ield

WM V. FRANEEL
incorpor a T

Indian Head Mills

CO.

W. L. Maxson

Morgan Engineering

E 11

National Co.

Broadway, New York 6, N. Y.
.

Carl Marks

Telephone: WHitehail 3-3960

FOREIGN

Private Wire to: Philadelphia

TELETYPE

NUMBERS:

1-4040-41

N Y

1-2684

SECURITIES

20 BROAD STREET

Co. Inc

United States

TELETYPE NY 1-971

LERNER & CO.
Investment Securities

10 Post Office
X.

;

V »t

,.r

•.

Envelope

SPECIALISTS

NEW YORK 5, N. Y.

•

TEL: HANOVER 2-0050

Southeastern Pub. Serv.

Square, Boston 9, Mass.
Teletype

Telephone

'Ubbard 2-1990

BS 69