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ESTABLISHED IS39 Reg. U. S. Pat. Office New York Number 5810 189; Volume Price 50 Cents 7, N. Y., Thursday, January 8, 1959 EDITORIAL 'U See It Of Duty in Washington A group of eminent and able men functioning President's Advisory Council on; Social the as 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 or economic - and financial the In drawing on my own well make helpful independent analysis by man in the street the more difficult. comment to C, on the role and con¬ law. in the last t : 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 of on 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 of some disturbing factors in the economic picture, believes bond government sometime prices during 1959 or will regain lost popularity 1960, and foresees at least a The year life own experience One's re- course, of ward useful economists and By statisticians. process* of evaluating our expe¬ rience, the Chances of making the this future better On hanced. agreed: Dr. Gabriel v Hauge better. we the past we fire few general are a comments that I would like to r en¬ are surely must always strive to do thing Here, then, The role of professional I: 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 22 address by Dr. Hauge nomic Assn. and American W. submit. in which in 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 to of 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 21 page predicted by Mr. Fisher being pushed to extremes by inflationary The psychology. . on 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 of 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 to 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 . a a group page an are 34 of security dealers, SECURITIES NOW IN REGISTRATION DEALERS securities afforded are a State, Municipal in 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 We 1832 - THE California Securities To 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 15 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. 48 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) 2 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 to Teletype NY 1-40 PHILADELPHIA Private SAN FRANCISCO • is¬ of or near their lows this CHICAGO to Wires at Principal Cities December greatly is duced over years Specialists in corre- d ingly p o n difficult. more G. Loeb M. 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 a a good outlook. TEL. REctor 2-7815 regularly enjoys best markets on Sell¬ has not been seen since 1949, after three years of decline, and at half top, the shares certainly regarded more as mature a in even 1929. Thus, it should be evident that Chrysler is a stock to blW and sell rather than to buy cycle. It is a ^ 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 to TWX LY 77 Seu) York City C° cheaper. duty, Plus P ; V; V ';/ryv> ^reeneandComparu^ have „ rpnf j ?e. car 1S decision feels is the low point of cycle t compared as to 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 to make has but the one, Chrysler has and Teletype—NY 1-1127 owest price rp, car is real. very <u ' t „ r point out, as I invited to i la TT j)Iactt0 regularly do when write know time a of for security at a means the time of Chrysler. nntinn & Co. Denver—Lowell, Murphy & Company, Lie, a particu- obviously does not of mean calling atten- tion to the situation System: this no continuous and perpetual bullishness on that particular stock. It is simply Angeles—Marache, Doffiemvre active and very a the on New York the ancj has range between 44 been and 59. per 15 ; I WOuld think that 1959 would show excellent volume and an even wicjer range. A good market is an important asset to uation it exists at I have followed the sit- very Maxwell as writing. This is true of trci'xr nl closely Chalmers. Chrysler, other and at have been neutral. on a it 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 on I Now, the stock grounds the and introduction of 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 It second seem could r quarter • be i_ „ is 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 n wholly over. the offices JAPANESE and have fluctuated produc-' car Chrysler chances, favor ; penetration widely and the either both or STOCKS For information current Call or write Yamaichi Securities Company of New York, Inc. in¬ "V-"' fluences Affiliate of Yamaichi Securities Co„ Ltd. Tokyo, Japan v ^ Brokers & Investment Bankers 111 Broadway, N.Y. 6 COrtiandt 7-5680 return to normal volumes should a show increased greatly* margins. - r Working capital ; the seems adequate low dividend current assured be pfofit 1 Chrysler .4 has through problems. The company has solved its styl¬ ing difficulties and if imitation is in of the has company group the sincerest flattery, it certainly leader a The many considered be 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 a model Canadian and Domestic Of 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 of came Zeder, to over Selton & Chrysler IN JAPAN Breer in 1924 with Walter P. over. •' Opportunities Unlimited Write for dealer the and at work 61 Broadway, New York 6, N. Y. Telephone: BOwling Green 9-0187 is not an offer or solicitation for for any particular securitieo its on sales problems, which acknowledges management understands. and whole. Nomura Securities Co., Ltd. orders is • 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 of new, and untried its in hands'. developed in is So it has not and far, enthusiasm tail with little stress qualities RED be ultimately ex¬ Emphasis has been on de¬ to Your automotive sense, .the momentum pected. advertising an on of Chrysler such important items engine. This is the the major cars as or the only on 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 to nothing say economy offered the of 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 more strike and partly as a result a 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 of . 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 close °+Vn-rlluf tion is given to the evening selleis^ into the twilight their top price car between zone economic a a difficult abiiity at current prices. 1930 HAnover 2-4850 Jf ire the For them the problem ago. been Los m jumped on bandwagon. Current and standard 1960 body dies of the Big Jhree'were planned a long¬ one. Bell eduction the small-car a Telephone in franc m^ay make even • o Established l Studebaker time satisfactory are Statistically, it would appear that Chrysler needs an average of about $600 million in sales per great oppor- a 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> is American production costs exceed LYNCHBURG, VA. LD 39 u 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 1 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 a 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 a is made s the It 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 be re¬ previous M. 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 more Associate /.Member BOSTON short selling losses in the 1920 '■ American Stock Exchange WOrth 4-2300 in losses than of _al1 It had companies. can one an tablish the As of December, 1957, Chrysler Chrysler Corporation New York Hanseatic in 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) to Members: New York Stock and other Week's, very great deal better. Partner, E. F. Hntton & Co. New York to Thursday, January 8, 1959 . Participants and particular security, a 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 as a penetration of 1957 Incorporated Established 1912 will again be achieved. Their plans and """Continued National Quotation Bureaa when its year 46 Front Street CHICAGO on page 47 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 a Hauge ^ Ford Motor Company, Dearborn, Mich. Chairman of the Board, on development and cost advantages in foreign countries which, he finds, threaten both the overseas and domestic markets of W. Fisher They left —Cover every tiling be desired to except the cash they brought v European Recovery Strides and American Competitiveness —Ernest • R. at Breech_______ Wall! 99 3 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 ? I just have Europ b us in e a n e s again be¬ p.eduction As frc Eu¬ t steel, r i 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.- of to compared to manufacturer our of 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 in 1965. joining of new once companies into bigger and to 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. * . . "i " i / ■„ * *A talk by Mr, Breech before j the Pittsburgh Chamber of Commerce, Pitts¬ burgh, Pa, Re Hazlitt's J.F.Reilly&Co.,Inc. Keynes (Letter to Editor)-—---- »Members Salt Lake ■ Views 1 22 4. (Letter to Editor)— —_ 22 Direct wires to Denver & ex¬ Poor's Corporation Standard & ____ ___ specialized in United Artists vehicles As See We It 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 & 48 : Research Coming Events in. the Investment Field. 5 —_____ Strong, Cobb & Co., Inc. Scales woods. Dealer-Broker Investment Recommendations 8J Einzig: "Effect of Recent Changes in Monetary Units"-—. 9 From Washington Ahead of the News—Carlisle Bargeron 8 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 as and Mutual differential is Wilfred 46 ._ Teletype NY 1-1825 & 1-4844 —15 _____ Our Reporter Our Reporter's Report on Governments.— 5 turned inside it Public be of the be the rate poses of new considerable. on page —— Offerings.--.— Security Prospective Securities Registration.,.- — ______— Salesman's Corner—__ Permachem .... and You—By 38 25 BROAD ST., NEW YORK 4, N. Y. TELEPHONE HAnover 2-4300 Albany Boston Nashville Exchange TELETYPE NY 1-5 ' Chicago Schenectady i -Glens Falls Worcester Sulphur ' 5s— 1967 ; 43 Heli-Coil Corp.* 37 _______ Wallace Streete.——— 16 For Security I Like Best— The Washington 24 and Tenney Engineering* 2 —_— The State of Trade and Industry______—___ 4 You — 6s — 1968 . Commonwealth Oil 48 Refining Twice FINANCIAL Company CHRONICLE * Reentered as second-class matter Febru¬ • • Publishers 25 , 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 " * ' . v" A » 1 Rates in United States, U. S. Territories and Members of Union, $65.00 per year, in of Canada, $68.00 her - year. ' * 4 \ 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 on /♦ Subscriptions Possessions, HERBERT D. gEIBERT, Editor & Prospectus * r 25, 1942, at the post office at New York, N. Y., under the Act of March 8,1879. ary Reg. TJ. 8. Patent Office j] 6s— 1972 Copyright 1958 by William B. Dana; Weekly REctor 2-9570. to 9576 Spencer Trask & Co. Corp. A 5s —1973 The Market WILLIAM B. DANA COMPANY, Stock Chicago 44 — Pan American Securities Now in Eu¬ the cost per hour for purchasing automotive tools and dies from independent producers Continued 17 —— realistic also example, York Los Angeles 44 Utility Securities.______ Railroad Securities re¬ PREFERRED STOCKS New Dallas Cleveland 31 — .___ . 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 we admit HA 2-9000 We have lit¬ business. our mackie, & 45 ^__ sion look very - Members «■ Regular Features own The COMMERCIAL and many years we , 31 , have Lake City Salt Tightening Money Markets for 1959 Depicted by Published J^or City Stock Exch. Exchange PL, Jersey City cars, the of out rope's units. Cist Frank DIgby 4-4970 short, Western Europe seems be riding the private enterprise mergers, small, high- With Differs In erally opened do not hear of 20 Production Compares Wage . , American viable 18 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 of You our commercial passenger our 49%. really more Business Outlook____ on * 000 new Participants in Commerce and Industry Association kilowatt billion increase from more or ating pace. In the period 1950 through 1957, for example, Eu¬ rope's Gross National Product in¬ cost HYCON MFG. 20 Percy L. Greaves, Jr. Upholds Hazlitt's Critique of Keynesian production; equaling lion units this year been overtaking, us at an acceler¬ you on million to 96 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 I __ 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 1 PERMACHEM CORP. New York increase will from substantially higher "employment everywhere. Living standards are climbing is There creased 88% NORTHWEST PRODUCTIONS 14 ____ develop¬ to nearly short decades. a these Product greater national solvency than in As of $226. billion m billion; is hardly recognizable. There new strength and growth in the European economy. tremendous c o u n —Clinton manufacturing.-v and result a National Ernest R. Breech fast that More _ 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 13 ___ Upward Momentum to Carry Economy to New Levels in 1959 developments and processes ap¬ everyday in mining and steel rope is Frank Heintzleman V 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 12 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__ - 10 » of s> Telephone: -WHitehall 4-6551 —Sen. Clinton P. Anderson.— Fiscal Securities Dept. WALL STREET, NEW YORK 6 ____________ Stopping Extravagant Programs in Agriculture and Elsewhere ' • of • Never; will I scene. tour 99 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 1 Bank Other — Monthly, $45.00 per year. (Foreign Postage extra. Note—On the rate foreign account of the fluctuations in of "remittances for and advertisements exchange, subscriptions must be made in New 39 BROADWAY, NEW YORK 6 WHitehall Publications Quotation Record and ^ York funds. 3-3960 Teletype NY 1-4040 & 4041 Direct. Wire to PHILADELPHIA The Commercial and Financial Chronicle (100) 4 and German Experiences with Inflation Executive Committee Federation of of the Inflation to swell—to in¬ means German we 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, in you a which you of ence i hav- ■ ■ We case g various riods pe¬ real of solutions propose lems. wonderful and our world are attacked that eration you of in 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¬ on 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 to will or 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 of that conclusions some we had to draw from those experiences may be both interesting and useful for others. All I do can all and I 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 to 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 of visitor a 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¬ to create call inflation situation a money inflation of and which as a which, all or some of of such swelling will effects be felt by the economy of country and by the people. the In Germany had twice the we .1923. purchasing really a , | power of ern the first gigantic was a was before. expe¬ mod¬ no ex¬ Neither the the population nor knowledge the avalanche Gods once against were taking and S.WASS the have this day been admitted as value had any this phe¬ of In us. a 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 a - 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 as a 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 a straws in 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 on critical narrow products. or 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 at some are time now in talking in terms of near-capacity the first half of the year, opera¬ but this trade Continued HALLE on page & STIEGLITZ, AND HENRY are a HERRMAN pleased to announce CO. that they have this day consolidated value of with the the as U.S.-Dollar Mark shows HALLE In in World one War dollar I started worth was At the end of World War 1918 it was worth December, 1921, it 8 was Philadelphia Detroit Members Jiew in 4.16 52 WALL ST., NEW YORK 5 Tel. HAnover 2-9050 swelling of the money by the State of during the quence of war and the lost as war a conse¬ had taken The inflation actually had already started — but it was not yet unlimited, uncontrolled, and Continued on Tcr\ Stoc\ Exchange 48 COMMERCE ST., NEWARK Tel. Mitchell 2-5690 worth GENERAL PARTNERS Stanley J. Halle William M. page 28 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. '' in 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¬ a such it started. duced until it compared has this day become of 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 it of precise ARTHUR G. ALTSCHUL General Partners in There economy. ample state We take pleasure in announcing that public Current It consequence -~T In markets. Plot-rolled bar demand is picking up.. So is the market for oil tion is 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 we 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¬ as goes, by Mr. Rosenberg before Meeting of the Institute Insurance, New York City, Dec. 9, a 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 is to 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 it term who employment also the is the State which must by ulation of the volume of Defines Inflation The full of might lead to such ple why I ask you to lecture. my economists that one ferent situations. Germany, this spirit that any connected in what consequences it had on Ger¬ is in accept 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 to avoid men to 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 of and These was If, therefore I am trying to at¬ tempt to convey to you some of auto¬ no such undesirable developments.- the community—but take into consid¬ that stopped and—as I said already trol, problems solved to Ration can at¬ under similar conditions. from abroad have most things in similar and to pie is be the of one very forced there —it is in the hands of is fact matic force in them which cannot world—it different everybody can be 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 of aware these trends must not lead to real prob¬ your as most inflation. to of similar As 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¬ am Industry Food Business Failures of money might finally money stantly I purchas¬ Trade a of ume government, and on of 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, ;/ an and which also devaluation a power create control. places direct responsibility for inflation to Production Electric Output Carloading3 the of his country's two ness Steel The money So 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 2 36 Volume Number 5810 189 . .The Commercial and Financial Chronicle . (101) greener Street that Observations . . fund-promotion and of 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 of quantitative seeming to this, be' to us mo s t income look we attributes in index; a year ago market's readers, along with the pub¬ A. Wilfred will no apply their own respective of 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. of May A bonds. doubt bullish or bearish interpretations, if too often following the crowd's psychology The "expanded" common valuation stocks of 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 a 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 of 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 of in the the credo EVENTS 1920's widely via In Investment Field the Jan. 15, 1959 (Philadelphia, Pa.) Philadelphia Securities Associa¬ tion annual meeting and dinner Long-Term InvestOnly it has not been as 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 on 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 of Confidence (the popularly ascribed °f *he fantastic multipliers rnaking the prevalent unrewarding price-earnings ratios), you might Ponder over just ponderables, ov!f. ls a few of the new additionally Iv-ices^ Market the m, Investment Traders Association of are . of course factors a . , 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 on 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. ™ q onv pleased to tion. to the Trek New Wall Street announce the securities business Mecca Auxiliary to the public's ing of (and that of 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 is Common price n to The Flight From Value atmosphere the splittable a pie-in-the-sky attitude is nastily filling stationing. return. in the —now peak and some we may tion" importantly this at from manifestations characteristic of investor the with concern the of 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 to editing; and with baseball stars switch-hitting to market-advising and In this Wall exodus an of easier money from occupations ranging from the tough textile business to magazine . By A. WILFRED MAY the stock market with the of appearance field, mecca Particularly alarm¬ specifically reminiscent Twenties) is the Sail Francisco, California the Nineteen will now be conducted by 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 as 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 on including Municipal bonds. Co. The United States Government di¬ Francisco-Chicago-New York wire insures rapid ESTABLISHED 1887 25 Broad Street we provide broad and far- reaching retail distribution with 135 registered Ceneral Partners OMAHA . have extended INDIANAPOLIS ST. LOUIS to our wc activity into the vital Pacific Coast Region. Now MADISON Mr. John H. Excoffier have been admitted 5 Teletype CG-35 Co. 6 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. of with Containing notes some the magnitude of the market in on rent comment on You cur¬ All of which is the product of, is not and nurtured by, a enter¬ and construed but mere¬ ly a rather t i the hat, in munities, we have TV more - Ira Some U. addition, of course, it does a substantial volume in parts, for units and Cebleifh older cars of 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 on honeycombs our the vine, nation with 3,850 and stations. a lower level of Motorola is profitability. major a maker of 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 up a 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 to net The rale for the past six ruption. has been $1.50 which, years profit in the later months. Moto¬ duces rola of on 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 y The first three quarters of 1958 admittedly, of (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 on Priced MOT is more 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 R. 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 in 1958 mark; to above 3,000,000 this year. and other half recent mobile rola has pioneered nized of and leader, doing the business in is the its entire suggests buying the strongly a Moto¬ belief a overcome recession, and line, inven¬ product tories well below in¬ in from has company fine a that the interest stems particular own with recog¬ than half more the that Motorola which of common a year rising at and ago, sales only 19 times its current net. If it continues to sell ratio, tion the on same and does earn $4.50 this the indicated market quota¬ year, would in range be the above 85. past six Market years has been between 29 and 61. share per are All from transistors, communications a 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, at and has, quite obviously,' a very large "captive" market for tran¬ there 1958, among the feels very our tronics—to was backlog In in was a very bright spot in the re¬ lated field of entertainment elec¬ able bath side soggy sets delivered in new Ford, Chrys¬ tele¬ of 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. as argument against liter¬ an acy topic our he to 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 at 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 a Motorola work, which it now backs full year's warranty—be¬ to be the only such war¬ lieved Resurgent Electronic Equity 1 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 like 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 AS A Admits Bowser & Wade R. VICE State Street Research Torgersen PRESIDENT Street Military electronics account for AND over 20% include Mr. AS Warren SECRETARY OF J. Oltmanns THIS CORPORATION of Motorola many items sales, vital to rocket and missile aviation, pro¬ and The One e. weigold & Co. INCORPORATED 40 JANUARY 2, 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 in our partnership firm Senior Partner many years our has become Limited Partner a JOHN C. HOYT MAURICE SCHWARZ, JR. 1 " ■ ■- / ., • • has been admitted has been admitted as a General Partner with , STEIN : ' . ROE & FARNHAM headquarters in 4.1} V J ; 135 Soutli La Salle Street Chicago January i, 1959 . 6o Broadway New York .y! Resident Partner in our < our Beverly Hills Office Office FRANCISCO • LOS ANGELES i.- SAN JOSE ( 5 . • . ;/ • NEW YORK -• r 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 F. 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 T. is tending the store! cares, Research pany since .wr,n Jle Cor¬ Bowser has been with State Street 1959 i managers Investment poration and Harvard York r Management shares. ! The ilies vof the electronic | in¬ '■.■.r & investment Motorola the , of is 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 an 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 S Price ■ January 1 amount or • 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 or 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. v Adams, McEntee & Co., Inc. A. G. Becker & Co. Incorporated Eldredge & Co., Inc. A. M. Kidder & Co., ... Dick & Merle-Smith R. S. Dickson & Company 3 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 Incorporated 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. • V Spencer Trask & Co. Tucker, Anthony & R. L. Day Van Alstyne, Noel & Co. 8 (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 I It is understood that the firms mentioned send interested parties the to 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 V letter—C. M. Oliver & Co. Ltd., 821 West Hastings Street, Vancouver 1, B. C., Canada. Canada—Year end review—E. Saunders M. 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 of 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 in on r k much its on in did 1956 he was Carlisle Bargeron He of Eisenhower made a "liberal" Eisenhower. known It is true He man. that made a Dirksen has been practically man for the President. down little a in affection path of defeat he to the Hill. No one has than acted more 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 a 19-year National Quotation Bureau, Inc., 46 Front 4. N Y Public Utility period Golden to Common — A. Exempt Bonds—Bulletin—Park, Ryan, Inc., 70 Pine Street, 5, N. Y. 123 South La * * Hiekey, 26 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 25 f 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. ' ' He ' he Botany Mills—Report—Lerner & Co., Boston 9, Mass. & defeated lot. better but the next He served ambassador as said about as have to job than whom to done Chester heard we a - But I surprised that Cooper am 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. in domestic affairs planted elected though in a that But has on upon in perhaps is field. he well look oddity an that very would I 11 and "liberal" his a on., feet the ground. him he more has as been democratic state, al¬ Republican. a Cruttenden, Podesta Absorbs McAndrew Co. SAN FRANCISCO, Calif.— Cruttenden, Podesta & Co., mem¬ bers & Distribution soon around. - is state, short-term a - 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 a men Coming Democratic as came much a 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 a 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 or He is an in and outer. from a memorandum on Northern Office Square, effort no in the Senate. • Waukesha (b) -Natural Gas Companies is 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 on has The was vs. the Kentucky, is Turbo U. S. Co 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 a 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 of 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 at new to seems 72 Street, New York 4, N. Y. Also available is the monthly investment letter with data on Ford Motors, Rich¬ 10 back stage a is to now. the upon of His bound air the In "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 is 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 Wall — Tower, Cleveland 1, Ohio. Oil Industries—Review American 52 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 He scathed. Shoe Newport News Shipbuilding & ill of 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 f 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 more 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 as Diamond Alkali—Bulletin—Bache & York 5, N. Y. be it fond of of three Indianans to be returned every is held in he. the as 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 as 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. to chair¬ the even Halleck and considered him have years man not committee. gets his infiuence by virtue personal association with a on Averages, both with well as did. is a istration, spe¬ a a "liberal" is ridicu¬ a Taft a he want of s e n Illinois with lous that him part of the movement to dis¬ place him. One wonders just how # of wanting to re¬ place Senator D i to of man the no w w somebody. idea influence sup¬ of cant that Eisenhower would if| they- must The more trip to Chicago to urge Dirksen's reelection. It is signifi¬ that feel Ike apostle an 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 He Boston, Mass. used in the National Quotation Bureau done he as 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 of the New York Stock Exchange and other leading ex¬ changes, announce that the secu¬ rities Co. business of Incorporated ducted by Co. ' McAndrew will & con¬ Cruttenden, Podesta & The firm will maintain San be a direct Francisco-Chicago-New York wire. Troster, Singer & Co. Members New York 74 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 or 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 is 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 is an the there be the a exchange strengthen restrictions. In any case ensuing flight from should that Britain stands to lose rather than gain through such influx of sterling funds. Until The it in fact be the case, French holders of foreign balances are not likely convertibility to where On the other hand, government has also adopted against the middle and the wealthier classes, classes no France, United genuine have they States, the and They during the postwar period. consider it privilege their be to on a sterling is likely to be delayed by uncertainty of election pros¬ It is true, the leader of the pects. Mr. Galtskell, while the any change intention to if Labor a Government should assume office. This undertaking is, however, in it is Of A. G. Becker & Co. CHICAGO, 111. — Roger O. Robert C. Winfield Brown and of have been elected vice-presidents viewed with of A. G. Becker & Co. Incorpo¬ as are in inflow of an . RrflUflt £ Wlltlialfl if.Pc UlUlill Of TTIIIIICIU 1 TOi result a quarters rated, 120 South La Salle Street, many realized the that members of the New important the Midwest liable Now With Dempsey-Tegeler become to reversed moment and is therefore tional ness. source of at 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¬ an potential weak¬ W ';'1 •• . Stock Desbrow is now Cajif.—Paul H. with Dempsey- Tegeler & Co., 210 West Seventh He Street. Walston was & Co., Ryons & Co. formerly *" unfavorable sterling, to before long very thoughts vailed pre¬ in 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 d status. ■ . sterling This type of the affected by the decision, because proceeds of foreign not is 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 G. ALVIN Products Corporation CRANDALL R. 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 be will in the a perma¬ turnover of the London foreign exchange mar¬ ket. There that London's influence already indications are in Stock of Federal Reserve JR. rates has increased the to 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 -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 a 79,154,073 ........ Clyde Estates sterling. The return to convertibility was 865,585,430 U. S. Government FRANKLIN M. President, United States Lines JOHN $1,057,629,207 Banks Corporation Chairman, Dana JOHN RESOURCES Fuller Company Chairman, George A. . is 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 IN BLACK, JR. during the first week Di. R. CLINTON OFFICES 114 from its initial weakness York BEINECKE J. 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 to who be find able London it to banks more convenient visits to their pay without incurring undue expenses. Effects very effect There of 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 as 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 i 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 in as ;workers industrial the that repatriate their really large scale. of prospects outcry against the effect of on the cost of devaluation have franc. foreign measures so the Inflow the weaken becomes evident whether this will food subsidies. the might the on Taking the long view, it is therefore probable change of government, There living and against the removal of Expects Christmas weekend the public inflation 9 balance of payments. de monetary changes announced dur¬ ing whether of adverse effect of Although the — to seen re¬ of Britain stands to lose rather gain through influx of for¬ eign balances. pects be pressure frequently prospect is by certain how the French franc at its devalued level. produce the opposite ef¬ Taking a long view, sus¬ fect. to the to 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 a It under conflict peated declaration of Socialist in¬ tic of writing it the time At 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. a from exempted however and opinion, which is behind General fence the on the industrial situation. no sterling and franc monetary so sit abroad be 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 on PAUL EINZIG and, in to to fices most But funds of 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 By (105) The Commercial and Financial Chronicle . permitted by law. c ,(106) 10 The Commercial and Financial Chronicle Slopping Extravagant Programs In Agriculture aad Elsewhere CLINTON P. ANDERSON By HON. of Agriculture 20 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 So Here agriculpolicy but things mind because of ture program or that are in my m of mittee tural on Financ be our time the Committees,- the dollar the De- election Twice in a agriculture year have cited is over figures and can some now newsletter. On 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 so 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 of 20% of received. I the income know that that, is not really any tie between the national debt to over rate farmers would permit in that tne thorizing au 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 in annual next year made , lions on« , I quick decided would acres use if I $285 million, annual payments under contracts signed in previous It true is that years. the them, but every took dollar in a time the farmer the Department than acreage goal for states and country as cations more is thje provided nationally. a whole by in 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 We had ings that wheat lion got up high as trimmed 75 the Agri- serve of Then the farmers the soil bank, and harvested in bushels, new a national goal ;u What 1958 can wheat 1,156 million surplus to in believe < and do us harvest domestic our four .bushels world trade. were and willing? -There we yet wheat our and a keep right on evemthough we adds k * soon two We in are the fiscal will next of at least us more be and one Ttu s announcement brought . probability is that the next Con- of 1,449 we still figure. . do with ./. Congress' Will . No ■ an offer oj securities jor sale or a solicitation oj an . . . pens? • The percentage of New Mexico population living in towns and cities was less than half of the state's total * in 1950 but by 1965 it will be 74%. Does any farmer think that a New Mexico the House in can the Senate national debt authorization to $300, billion. No member of the bank- I on voting for agricultural programs which pile up wheat in warehouses way be¬ the far needs of beyond the the domestic needs requirements of 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 a We more. our not of the dollar until not are going to stop the dilution sion January 1,1979 dollar" " our or ero¬ bring we budget into balance. We are going to bring our budget into balance until we try to control spending department by depart¬ ment and impose some over-all ceilings for annual spending be¬ yond which out will we not Price 99% with¬ go raising the accompanying s plus accrued interest from January 1, 1959 revenues. I support and have sup¬ the proposal to make the ported of passage all appropriation tentative, then when total them bills all up 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 a three-fourths affirmative vote, to decide that it deficit spending. wanted Immediately that to continue would governmental programs into review. It would result, in my in $2 billion of think would could not, lopping off at least foreign aid. which I be of a good thing. It reduce course, we debt, could amount have of to pay on the na¬ not reduce the payments we make to 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 r bring some opinion, Dillon, Read & Co. Inc. A. Q. Becker & Co. Incorporated - Smith, Barney & Co. . Stone & Webster Securities Corporation . Baker, Weeks & Co. of trade, far beyond the , ing or 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, we / yond million , will be asked to increase the* gress not more, the 4 carry-over' will three billion bushel or possibly two before that budget can into balance. The. years ts reach summer.1 and more in year is 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 on that Do that hope that wheat 1.3 tried to the friends no we 1958 would have to sell three every moved representative by law to 55 mil- acreage acres. as We 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 ' ... in talks about wheat, the i5 this country put 5.3 million acres 232,000, appli- of wheat-land into the acreage re- call would more only growing record ■> Department it. trade to we out; of and profit¬ away, points out that the world is needs 12.5 up sell grows it,, faster can bushels in 1957-58...If which calcula- that it we sell that part of our payments contracts. new give or It eat can than article ,v amounted payments for rather some and of year than the $285 more available beaded: "1959 Conservation Re- 'the 1937-41 period serve Applications Exceed Goals." million bushels in be political overtones, In fiscal year 1953-54, the total U. S. Department of Agriculture expenditures were $2,950,000,000. we 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 e. would can faster The Conservation the American Farm Bureau Fed- ,another column all we much wheat?. we entire in- am that I think is most vulnerof of than 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 a mil- it would quickly bring programs under review, and one of I the on Senate in 12,5 $13,000,000,- I am not making any superior intelligence on essential government services. But member- y ship year takes of 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 at about 1959 sign-up acres. , if all the farmers who signed the were offered contracts by the County Agricultural farm year run lion million a 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 s partment of Agriculture will spend $6,900,000,000, and during farmer as ' 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. of ity 1965 by to that during1* World Warren J. 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 I fable. a 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 C. Hoyt has been admitted to general partner¬ ship with headquarters in San will be Beverly, . } MASSAPEQUA, N. Y.—William is Hills engaging in a. secu¬ •:*> graduated' rities business from offices at partner office, in 275 1906 as -the told He has also in 1958 ments the of 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 29 City, windfall the on With 540 would payment . in acres each been admitted to general partner¬ ship in the firm. - Hofstra i College the' and Grand 'Avenue. 77 tenure change. - in the Mr. history of-the Ex¬ Schwarl^ served with been Mr. Nelson-has years Roggenburg for many Cashier. as ' no Praises Bank be tried, would all admit that we scheme a the not was Cash and Due from Banks of the soil bank the by and President the States. It advocated as of Secretary certainly not would have been possible under the soil bank proposal which I attempted in substitute to Senate Committee culture offered guage of the the lan¬ Secretary practice is indefensible, and if any such contracts are in existence, this Such Agriculture. would be them to good a a time bring to 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 a billion two would notice serve That dollars. the on Sec¬ that he must have some different plans, and let him come with programs and a schedule retary departmental which 35,652,644 . . I think it is time to 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 am suggest stable dollar. a going to be that if the so bold as feel banks 19,317,535 F.II.A. Mortgages livestock and men, it might be which in the long run serious threat to agricul¬ programs pose a ture and at the same time threaten all by us inflation on as their contribution to an which long spending, national is as we certain and Real Estate . 363,521 . to raise our Banking Houses That route ment the — not more spending—seems to one we should now Digitizedlowing. for FRASER J. W. G. American MINOT Acceptances Outstanding . . . 48,736,783 . be 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 $1,774,870,208 Deposits President, New York & 15,059,912 Expenses January 2, 1959. 2,040,000 . Corporation S. PAINE Pennsylvania Co. LeROY A. PETERSEN President, Oris Elevator Company, Acceptances: Less Amount in 55,326,924 Portfolio WHITNEY PETERSON J. President, Other Liabilities . . . 6,838,807 . 1,854,135,851 Total Liabilities United States DONALD C. Tobucco.Company POWER President, General AIT'OIJ ATS CAPITAL Telephone Corporation RAYMOND Capital Stock (5,100,000 shares —$ 10 Surplus ...... ..... Undivided Profits Total 51,000,000 57,000,000 par) . . . . . Capital Accounts y . . f . 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 E. E. 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 K. DON G. . Dividend Payable < Fice President and Treasurer, Accrued Interest and V. Taxes and Other Corporation MALCOLM President, Customers' Liability for Other Assets. MacDONALD R. Chairman and President, 16,743,429 . amounted to $94, ISO,518. the dollar. LUKE L. DAVID 19,681,056 go steadily erode K1KKWOOD President, F. W. Wool worth Co. General Cable indulge in deficit continue debt to HARVEY, JR. ROBERT C. Conventional First Mortgages a well to help stop these extravagant J. Pulp and Paper Company U. S. Government Insured to 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 I. by in of Bristol-Myers Company Mortgages: on BRISTOL P, 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 or MURPHY President THOMAS C. " Cut not am "'v, ' 544,042,522 *4 of the Board 3,240,000 . Other Securities Appropriation I Chairman GEORGE A. 31,163,893 . Other Loans Would f yv v't- Underwritten U. S. Government Securities halt. a 1958 31, RICHARD II. WEST 493,207,496 Agri¬ the for by v «*«•'. • . by U. S. Government Agencies United the or . . 516,649,115 $ . r'Vi-;. U. S. Government Securities Securities Issued Agriculture of DECEMBER imtLCTOICS . . . j Securities: pur¬ , pose CONDITION, ASSISTS fable. a But if something like that was to^ such OF ^ \ be only may the STATEMENT Soil Program that Now NEW YORK ; Own His pay¬ within be $5,000 maximum.. an¬ , operation. unit, the : Broad¬ has that Norman Nelson has nounced land tax celebrated the the " the of 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 of and reserve terms and Exchange. Co. & 100th nine for creator Governor of a Stock Sutro the of 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 an a to engage and FRANCISCO, Calif. — Sutro & Co., 460 Montgomery St.; members of the New York and down. money were a tracts iii , in 1946. Hehas served in .all phases of the business and is presently engaged But along from into and $60.00 at . with Sam conservation 540 r acre. Uncle 1242 Baldwin Street re-: and SAN 11 President of the San Francisco Stock Francisco; Maurice Schwarz-, Jr. Mayer & Co. with offices has-become a general partner and at 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¬ He Communications fable told of a man in the eastern about re¬ ited . pointed Army and Sec¬ as 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 I 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 of as 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 •- I > 32 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 In 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, I years to small de¬ a like gree Lincoln . wh felt e n Mr. who asked how 'did feel to ; it be President, plied, "Y who man been Percival F. and Brundage town on rail? a A being was ridden man of out in the for us first measures consider to proposed Budget sistance coordination economy the proportion Con¬ gress in the 1959 budget of which there were The an asked which for postal would teaches the Bureau of the Budget, where it gets a thorough going net bring growing and getting complicated. Our more over. There half, and we to be away from their execu¬ tive responsibilities, and to answer questions for dollars ferent has than more doubled beginning of World War In my opinion, we must accept the fact that have large government but a solve to do all shall continue we to 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 we gave us half Higher interest rates on college housing loans were prooosed, and Congress gave us nothing. The This is vastly different from the about proposed. Budget proposed to adjust certain veterans benefits which I million, We asked in price Congress but it not was for greater flexibility support for gave some us 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. a v/ , : 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¬ an 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 in a creased last year. other 16: What Congress Did and we 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 and more o u had is 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; is 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 It $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 . of 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 of an the has * crowd asked him how he liked it. His answer ♦An the N. address 28th Jersey was by Annual Taxpayers 'if it wasn't for Mr. Brundage before Meeting of the New Association, Newark, J. Congress increased 1959 budget by a total of recommendations NEW -a $7.7 billion. ISSUE •' This is not The January 8, 1959 an offer of these Securities for sale. spending, felt offer is made only by the Prospectus. in its 1959 Against tions This is not but and these came billion. will later reduc¬ something net result be years. increases, to The year's one force over $2 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 i1 believe of ,/* fitted than C.P.A.'s to improve it. m I 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;,-* He shown was around the White m% 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 to 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 We 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 a may persons in time legally distribute the Prospectus. our fraction There and Bureau cies fiscal of system. dollars and that in only amount the results seems to be staff of of budgets our evaluating wards. to whom in millions after¬ so available little to the the Budget, the agen¬ Congress for subsequent or analysis, investigation and expla¬ nation of 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 of 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 a 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 no 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 me be American public directed. people have got to to now which to I a third attention believe and the the press change their attitudes Continued on page 26 Volume 189 Number 5810 . Financial Chronicle The Commercial and . . (109) 25,000 Alaska Beckons: "Go North or United 30,000 native Indians and Eskimos. V ' States, supply • The United States received from not of had with natural bountiful a 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" as 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 It people. for Alaska since World War II is era new Governor former in economic and natural detailing In the hands of resources. substantial pictured by its a migration "Have Not" tion and what it would in mean out decidedly rising popula¬ terms of increasing American Envisions reached New into of western Pacific the But in a its American long ond growth Since new history, World War seems and countries around have to we Alaska that of some for adding coking coal prospects iron and leum con¬ the Pacific Rim. is 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 as 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 is Alaska's sponsible in part for checking any A Alaska which resources oped substantially and much of its re¬ was Alaska's — of resources within economic range of increas- was a the of more Russia in 1867 tically 13 and ore this to possibly petro¬ list. This business Continued rapidly increas¬ on page is 34 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 be "readily tapped wealth," the Alaskan explains what accomplished, and how "boom and bust" a ; Tie FIRST:v i can MTIOML CITY BANK economy will be avoided. The of grant statehood on 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 to 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 a 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 i Statement of Condition Czar. as of December 31, 1958 Spirit that was so The effective in the "Winning West" of the in the previ¬ This can be observed in F, B. well as Heintzleman the other of use or exploration for and resources To benefit from this great interest, the state government which has come into being in January, 1959 animals. sources By 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 a other ... „ state merit such action. of its purposes of . . _ Me Men My Mountains." Due and from Banks U. S. Government.Obligations State and as a facilities that will mensely to In addition kinds result major im¬ contribute military work of currently provides economic many with us But we want to prepare now to take up the slack in the local economy that could at come of Alaska have Some help. any withdrawal time mensurate value of with a military with our of the reward Russia we for Other Securities. that it was and son William of bought * An fore the planning size of . Bank Premises, Equipment Items in . . 7,000,000 • . . . Transit . . with . -'Total .; to help al¬ gives Alaska density address his Secretary H. Seward, square popu- mile of by 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 of as 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 at 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 in 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 a a $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 ....... on 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 of . ...••••••• 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 To 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 so LIABILITIES ASSETS possession highly prized fur of the sea otter and fur seal and a few upland fur individuals. as 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¬ of the time only residents left after the departure of the Russians were We 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 14 The Commercial and (110) lion Upward Momentum to Carry SI Economy To New Levels in 1959 By IION. ^LE WIS at This in 1957 and, — of quarter at Secretary of Commerce tion rates further improve this Admiral Strauss, until recently Energy Commission, charts increasing year. Chairman of the Atomic number the Hails of 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 i Today, an economy. from Year Lewis L. Strauss of increasing strength and of grow¬ us 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 a 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. Of course, free the course recession levels. From an unemployment figure of a little five million, seasonally ad¬ over justed, in the month of April, we seen a 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 in spending* with registering a pickup. Government goods noticeable expenditures Economic Review by sustained a sion which advanced national Product) output to in and in sales declines deep variety of invest¬ a ment-type goods. These, together with the associated swing to inventory general by liquidation concerns the as 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 in the demand for business construction. In contrast, goods demand for nondurable and goods and decreased taxable with the earnings and, a 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 to provide ing highways, are moving ahead. The ing volume of curtailed as 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 B. & membership disposable personal income, wnere drop amounted to barely more the on J %. Consumer incomes were largely shielded from the drop in Exchange, effective output. Employment has shown ual general public, Prospectus, by as 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 k c 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 an the It year. re¬ in is 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¬ i Robert 1891,, and the occurred p of Good body, recession, the decline in employ¬ ment Good- body is a great - grand¬ grad¬ of Unemployment ^ PriCe 100%* (plus first a 1. 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 as Employment and Unemployment These Debentures be can economy Goodbody Partner the than consump¬ tion. admitted rate. build¬ residential of 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¬ at a the spite virtual halt. The effects of the 1957-58 taxes in cut was ' market.' the sumer were inventory liquidation, which was an important factor in the earlier decline, came to a (Gross more 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 As From the third quarter of relatively with 1959 current an consumer durable of 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 of 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 we of Recession and Recovery business workweek The barring war, our dynamic enterprise system effectively, if and in added were but, fluctuations, the Hours the In will , exhibit will work, 1958. of - firming have These base experienced. ended survey tions by businessmen above the a with number of of in change workweek expanding sales. plant and equip¬ expenditures The the market the Spring. should be in ment strikes by looks' m'ore hope¬ and weak sales, hours by ' 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 to 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 to 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 in rise simultaneous renewed a upsw ing. The same generalization applies to U. S. exports of goods and services, which were reduced The t;u,p,ii,; in7 procurement. p of 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. u 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 4% home- Expansion During the Yeah' qoming year will the threshold of the 1960-70 decade during which the bring a position 1948-49 and* This peak-to-trough movements of 2% and long range outlook also has encouraging influence on the we the New start • real in 5Vi%:. to the exceeded The n g. an billion in the contraction the amounted terms ' . from — in 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 of "measurement in 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, a 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 We 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. as put considerably and at year-end was average 3%. third mately lour million by the yearof volume in 1957 from higher with declined put end. 1% 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 as 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 In contraction. stantial volume. underwent time no 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 in 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 in substantially was services seasonally adjusted the final quarter. a 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. in employment to lag behind an increase in output during the the earlier modity stages-of cyclical busi¬ a Goodbody & Co., York New from until members Stock of 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 on each large purchase for a 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 a 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 more S. D. Lunt & Co. over the past year, but of services have advanced than other major nents of the consumer compo¬ price index. The made To Be NYSE Member DALLAS, Securities Tower, .will the an 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 of the firm are T. H. 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 by Paine, Webber, Jackson & Curtis Price Smaller Consumer and - Volume Number 5810 189 . . The Commercial and Financial Chronicle . 15 (111) ■ 1939, appointed was Treasurer in News About Banks present world¬ Chemical Corn its Broadening facilities, N. Bank, Exchange has Y., officer the of named and or¬ in company President later that year. will be known Trust H I'm e n u o a d to the Pension Trust Division and who has Interna¬ Amos nthat B. Amos B. Foy a Senior BANKERS who Foy, is direct will Division, In¬ company's operations as Exec¬ the * bank's the of 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 in in works with accounts De¬ Atlantic States and business States, the Mid¬ and Middle Western Mr. Darcy handles England in the New New- Jersey 1,841,890,351 Deposits 1,774,870,208 1,634,707,805 and due banks— from U. ______ 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, S. curity Loans & Undiv. se¬ profits ' H. Roy Winter and Arthur P. Morgan have: been elected Vice- • Ellsworth J. Michigan, New and York. S 1.991,230,223 Domestic the '1' ■*.' i' $> 903,7741811 : Burns, Richard W. Continued on 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 as THE John Co., & P. 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, E. BANK John S. Treasurers, , . . .1. ' V.:' " * MORGAN P. & * * 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 of Statement YORK NEW Doc. other Smith Alfred S. and OFFICE: 18 HEAD Assistant Trust Officer. as technical assistance, whether in the European in 1 799. ■CMARTERE O Vice-President of J. P. a 857,868,671 790,796,637 242,685,323 186,615,861 ASSETS V' from • Hauser, ^Assistant former been have Presidents, ; banks Viceelected U. Helm, Chairman. Love, joined Chemical Mr. 1951. is He & 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 in *. of J. Lenox Porter. is Hauser Mr. ' ment in at THE ; # *?• OF BANK resources. Cash ... and from U. 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 * v O'Brien, Jr., of Company's New York, Investment Research Divi¬ Bankers M. 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 to company the Dawson, Assistant Madison Avenue J. officia "taff Sani H. 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 on 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 2_ Govt.vsecu- Sf 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 in New York of II the of the State at the a Order Special Supreme York, of New the for and Deposits of Court County 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 of granted at LIABILITIES • . ..... • • ... Contingencies' • $184,014,712 14> 7 6 5, X 4 6 • • • • • 1 • • • • t • • • • 169,248,866 60,568,261 19,749,712 1 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 by Chairman Mr. Creamer executive York Horace of the C. 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 _ 1 se¬ profits.. sion, U. $ due banks. Govt, S. resources * '■' banks Sept. 30, '58 $ Deposits Cash YORK NEW Di!C. 31, '58 Total '■^ Deposits o EXCHANGE CORN •'' •_ YORK -7 Dec. 31/58 Sept. 30/58 " . Total " 'CHEMICAL ffi OF NEW BANK . Depart¬ Street. Broad 30 of the charge Loan Mortgage Obligations • 0 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, • is he where ... . the bank's International Division, 165 Broadway, . ' the of member a 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.'. S. Loans Vice-Presidents of Chemical Corn —————— in 99 OFFICES IN Sept. 30, '58 $ Total resources. Cash Both Banking Division. Mr. Cavanaugh dle COMPANY, NEW YORK announces dent to Vice-President. an . . " ;■ Jere H. year. in business sjs . Trust Company, New the promotion of Cavanaugh and David K. Darcy from Assistant Vice-Presi¬ in Trust , »'i: V 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, or ■ 629,521,625 Morgan "Specifically, Chemical Interna¬ tional Finance Ltd.* proposes to Market the & Undiv. The election of Francis K.Gib-bons States. or At of 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 by handled and Govt.-se¬ S. traditional type of foreign United Lbans Manufac¬ in 195l. He Assistant Treas¬ May, 1,057,629,207 se¬ present, Manufacturers of Govt, financing be restricted to the the trade 3,257,855,823 2,936,899,512 curity holdgs.. joined an S. pro¬ Secretary. 2,779,132,984 2,523,564,898 from U. In riot U. were Lindsay T. Andrews, Henry E. Christofferson, William H. Cowie, William H. Duker, Jr., Arthur E. Sept. 30, '58 •••'V y 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 M. from Assistant Sept. 30. '58 since 1957. a 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 At the in , dent of Chem¬ ical a resources- James moted to Assistant Vice-President CO., N. Y. $ Total Assistant an Company bined Pension and Personal Trust Presi¬ elected named . Helm, Mr. heads Sargent urer/ pany . was 2. Jan. on ne c n Rothmayer joined the com¬ in 1946 in the Personal Trust Division. Later, he was assigned H Harold / Mr. was Mr. h airman C 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 as Denious Mr. Mr. " ' 1 " Bankers in- 1934, he was ganized a wholly-owned subsidiary which >!! MANUFACTURERS . Vice-President in 1955. 1955 Vice- Assistant 'an the Mervin Mn 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 of ; : ' joined Manufac¬ turers Trust Company in 1947. He was appointed an Assistant ' Mr. O'Brien At Washington, and D. C. CAPITALIZATIONS fields. 1953. Pennsylvania, Delaware land, Bankers and OFFICERS, ETC. REVISED wide in business NEW BRANCHES Creamer Kentucky, Assist¬ an in division which handles the Bank's CONSOLIDATIONS NEW Mr. present, Assistant an 1949, and Vice-President ant GREATER NEW YORK — 20 OVERSEAS page 36 16 (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 in ap¬ this issue since 1930. In 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 a abandonment quarter century. of the classic, $9 divi¬ 32-year-maintained dend that enabled the indus¬ Selling drives made little headway even at the poorest as the year began, but they rather quickly and not trial new tired rescue several times. ❖ Rails the were laggard ❖ It also set off sec¬ ❖ a 1 stock was seized soft drink on as a merger candidate with various other \ split outfits but to 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 of profit-threats in Venezuela and ample discussion of the dire consequences by finan¬ cial services kept the oils well restrained. There K was occasional un¬ easiness in the chemicals, the drugs, some of the metals and the Warner Air Eaton and Foundries. Line in 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 to 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 a has book value in the mid a 80s and is than more a dozen points under its 1957 peak. company's capitalization The is such that there is [The views expressed in this necessarily at any time coincide with those of the "Chronicle" They are presented article as do 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 more than $3.25 mated $8 to esti¬ an last year. operations showed Then good re¬ a of one New a 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 t f the o Traders AssoAlfred ciation New and of F. Tisch York of Chairman is the National . event, the indicated turn at the 434% rate is new without a 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 L. more quality labeling it one, was times than not of even Ohio C & dividend record stretches back without mitted to from been ad¬ partnership in general partnership, limited partner in the pioneering of rail¬ Stieglitz, H. Herman Consolidate when the line facets a Halle & member new have general firm. dated many D., Waiter E. Sachs has re¬ On Jan. in James Tenenbaum and Wass S. Harold interruption some 36 years, although the payments were a bit erratic early in this decade was G. on 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 as of the New New Halle & 1 Herrman Henry & York Stock firm at Exchange 52 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, as an others annual rate. in earnings the rail were off last year but the dividend is in no estimated to be 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 a 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 & 21 is 75-cent As legally offer these - Security for all-time may n Mr. d good gains earnings recently. It only For (No Personal Liability) ad¬ Fitz- York it in lists Campbell Chibougamau Mines Ltd. in Company, 40 Street, riers able to show found * been Wall years, eastern has Tisch, who something of few Tisch F. to 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 in 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 an 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 as 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 of Chico, Hermosa Beaches, Petaluma, Redondo Stockton and Visalia. and the Bear Gulch said to is It Contra Costa Districts. and the be largest U. S. 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. by the the the already properties of 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 21 have been exempt. The using acceler¬ .which is a company has been ated depreciation pro¬ factor. - • ; .* * : /• ' Vn 7 about 88% of The has company doubled in in size more the level companies, purchases and sales of properties the rate return gradually in 1950. 4.2% A having from return sought in the rate was The from in of menting cash from operations, no financing was required in 1957, except for the sale of 12,000 shares dividend rate the earlier 1954 is and Dividends about of 6^% stock. 5.5% convertible - ^ • as follows: • , currently $2.40. partially non¬ ' bM ■ Millions f of 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¬ to poses buy portion a to yield 48, 13 the of While the 20.7 34 $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 :r 7 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 a 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, at $50 per share for each 20 shares held of record will Chairman of the -' Banking Premises and Equipment Customers' Liability on Acceptances or par ROBERT G. GOELET 1,524,399,145.44 Other Bonds and Investments Pennsylvania Power & Light (without nominal BENJAMIN F. FEW President, Liggett & Myers Tobacco Co. 585,707,522.95 Real Estate State, Municipal and Public Securities Western Electric Company, Inc. HENRY L. HILLMAN President, Pittsburgh Coke & Chemical Company January 6, 1959, Subscription Warrants expire at 3:30 P.M., Eastern Standard Time, on January 26, 1959. LIABILITIES During and after the subscription period the Underwriters may offer prices varying from the subscription price. Capital Stock ($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 G. 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 P. 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 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 in 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 of 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. be series reve¬ cooperated with others in forming may of served because of historic interest. municipal water districts. As with other water ; - has company number in 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 on 1957 earned 5.5% on invested cap¬ and 5.1% on net property— begun back in 1769 was to expected again areas. ital creased Franciscan streams some commercial and that Carlos, facilities San Mateo, South Ban Francisco, San to 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 in 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 17 (113) Abroad York Clearing House Association Member Federal Deposit Insurance Corporation la 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 a Optimistic of one in during the U. the the, strong S.5 economy* PUBLIC sion. , in 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 of expect to 14 business and industrial leaders volume than participating in the annual we will be a 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 do we 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 on INSURANCE: Clarence J. President, New York Life Insurance Com¬ and pany, President Like 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. a a exceeded construction. volume of industrial ; deed, our new ordinary business, which dicator of the expansion plans of industry. Such awards have been still years is at the backbone of States, rose to an J. Myert all-time record Of $47,500,000,000-$1,900,000,000 above 1957. Our group business, always more responsive to eco¬ nomic nary an 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 by year to the 25th consecutive year that insurance in force has risen. Last year at eral economic the cal outlook in many level but important in¬ an for with the the of 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 as solete and develops plants for new production. efficient expanded due primarily to wage increases throughout industry as well as in construction. Summary — 1959 boom be a ments a d n less was is encouraging. Very industries more cycli¬ character good year but not a year. 1 con¬ tinue the than life insur- William II. Burkliart, President, Lever Brothers Company, and Vice-President goods of will years, our ports will of more selective and require in excess Construction the overall cost will be of pro¬ required by of the industry large a to cover increased costs. John. A. Hill, President, Company, to Inc., the several Association. of . packaged consumer through grocery and drug , Hill, Jr. for medicinal preparations. return apparent halt the dicate in trend. On percentage match -industry's upward the other hand, the of that increase shown for may 1957 not and 1958. Long term outlook is also good. purchasing power high, the all we people turn more and products related to 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 a in is many high and optimistic more that metal may be levels of protecting health and preserving life. records by the middle of 1959. outlook.than of a year ago. working activity expected with improved - demand and in the automo¬ durable consumer not industry should only from the return to 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 j ear CLASS A buy advertisement these COMMON per STOCK share) research is securities. t de¬ demand. Re¬ copper k: s c o more into with consumption, domestic producers d r a s tically curtailed their output. June By some is not The a good strong an offer offering to is Robert G. Page producers operating at were In the second durable about in goods rise a with coupled 60% capacity. half of the activity year, in the industries brought in demand. strikes at This, copper properties in Rhodesia and Canada, effectively reduced world stocks. The copper prices the fourth sell or made a two-year was quarter solicitation only by the of copper decline reversed. of an Offering the - offer to Circular. ISSUE Corporation (Par ^aliie $2 applica¬ its the likelihood NEW First Lumber new of all, 1959 should be and This 50,000 Shares and out laboratories. All in :,/ reflect to consumer improvement chemical benefit 300,000 Shares Northwest Gas & Oil Exploration Company COMMON STOCK PRICE $6 per ($.10 Par Value Per Share) share PRICE $1.00 PER SHARE Ui:a\ 40 Exchange PL. Ncav & York 5 Mackii:. isc. HAnover 2-9000 Copies of the Offering Circular may be 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 37 V-. copper line sales Consumer G. : April. To bring produc¬ John A. Hill and Good ; • YY- in that produc-. titude im- reaching the highest point to in¬ new is trade, must increased/ rather industries the York New the first-half of 1958,, consumption in the United s tion Wall _ .> 1 of share importers. ^ fined see - its creased tbe- may be During market clearly With American of seem : its of Robert in durable goods go hold must Association Director. consumer no the preference a promotion Phelps Dodge spending and the expected into 1959, there are no signs which indicate a we sales Port and . govern ment ; James . reces- is 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¬ of 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 Le and up give in The Gerald the growth which in 1958 be Air Business has already moved far enough 4 growth which resulted years. ex¬ hard more tinued Association Director. ; has past during past three con¬ 1957.* A over the business industry's sales in been expenditures for Reduction the of true heating. space To - , increasingly maintained. 9 5 9 should health. CONSUMER PRODUCTS: Sales the . the of Forbes 1959, and moderate rates in¬ segment seg-} . ■ Construction costs will probably increase moderately during 1959, should con¬ re-;;in be a;: can has as C. Harland , previous ' availabilities foreign: trad^However, somewhat and ih corresponding dollar f;. ers. for increase creases in commodity year for many CHEMICALS: drug industry, more outlook 1959 viding utility service will be high¬ er - lower satisfactory \ expenditures. costs Vino, President, Company, Inc., and:; products, I;; believe; tha t . moderate a this time the gen¬ than favorable. This year most of the business indexes are rising and likely low a provement Clarence life insurance in the United is awards all trend except for 1957.In¬ tract of 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¬ on Jr., without now placed ^ f .b' y necessitate Association Director. shows books r- of use are struction Almost may show in quality. ' ^ ending v e;ever and DRUGS: due primarily to growing Highway ing convenience year ha s the favorable. in we of e and new increase volume sal - in"* 1958 exceed ■ because of further new 'William H. Burkhartl, foresee- that of duction h o-u.1 d s • V;- 1959?:^; sales 1959 in $65,500,000,000 mated Such Le Guiterman - In spite of prices with a this;. fazY~ v through is," her t r program. recession 1958, , trend • • ;1 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 u of Tesumed was latter v;' of and con- offer the Association. the . year Gerald - corresponding periods , expected■to the in preceding part totals will the of in Construction f 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. 1 the v* during slow the even The long-term trend of progres¬ and ordinary the outlook for the on 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; , of summer ' General shall we 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.: HA 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 . . of tight . future appears perhaps offset by government action; our money , estimate i faVorableV The additional produc¬ of as is now A • 1958. in -The railroad 15th that 1959 will be are consecutive the crease and record year extent ex^n; of in- year the on outlook me °ut!?ok tor ?en<*aA in construction months ,' Ij Norman Tishman Realty and v v 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 of corporations, which a by year com- niltmeilts for ' •• 1 1 -y ■*■)'*> f- 1 a 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. a office new Businessmen have for With office new real estate values going possible time are protecting them¬ selves against an inflationary trend which i more pronounced later on. from CONSTRUCTION : ' 1 » low recession. As Dodge Corporation. to seems be little doubt that 1959 is going to be a far bet¬ ter for year than 1958, business although mark of demand the 1958 increases, refining operations will This should from covery to move mean a fair Alfred P«rlman the reported pacity probably — achieved until J. will after Peter , .. 0 m y may move ahead others vb ut I feel'.th in general t a not 1959. still am n t fabricat- g industry, President If. up best ' contracts Construction 1958, in with continue itbove 1958. ulus will and The come schools principal Stim¬ buildings and is hospitals), still a com¬ (including utilities and highways. activity to 3% from commercial buildings, industrial munity aroiind total the big question im¬ public's Co. in ton & Co. in in¬ under the benefit Finch. has the direction of • ,, , v CARTER Statement of Condition December 31,1B58 immfEi ASSETS ■: Cash ott $242,685,323 hand and due front hanks President . •. t ' ; Fonhdry Company CABOT PAUL C. - Chairman • State Street Investment : BERXARD . Loans and bills % , Corporation CARTER S. 61,003,628 Spite and munieipal bonds and notes. Other bonds and securities. ; 235,000,649 United' States Government securities. RCRCESS L. 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, J. • , 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 S. CHARLES I ' '' 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. X. D. 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 C. JOSEPHS Chairman the is 770,401,501 ... $857,868,671 IOXGS TREET IIIX T OX • $ 38,036,883 ... Chairman may7 reach only the more ... ...... The Gillette Company depreciation of currencies in Latin America, livia 38%, D. 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 - R, 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 as yet unresolved. a serious blow This to the SLOAX, JR. Honorary Chairman General Motors Corporation MORGAN CIE. INCORPORATED 14, Place Vend6me, Paris, France , GEORGE 1VHITXEY economies of these countries and to American vestments in manufacturing Latin America. business in 1959. IIEXRY S. in¬ It W'TXGA TE President, The International , Nickel Company bf Canada, Limited a opened a branch Swatting Building axdjuisox m. is Hill, Darlington Branch area 1959 A J. P. He 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, is & the DAVIS OX 7». Ait rmm as J959 spending on construction materials, labor and services will be higher than ever before. One and previously eight years with for Becker G. A. since of 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 of 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 by foreign Construction. The 1959. service sDIRECTORS con¬ business e s satisfactory be - we ' However, constitute i , 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 is ments been ;firm member of ordered the has Pennsylvania, like all other railroads, has two major assign¬ a w M t- '.with* the The ,. Ne k. o r Blechschmidt can Federal bodies. ity of of Y equality of treatment is granted the various local, state and transportation La Streqt Chicago and investment unless mediate task of than re¬ look , . econ- our for out¬ on South counselor's by on the broad study, by the Senate, into the substantial rale. Some sectors a ol' economic the earned 135 with offices in return will be Policy, based in the domestic economy will continue during 1959 t reason for , national I feel confident that the present prospects n Cranwell Roe Farnham, Salle un¬ an Stein & i nvesthient . tibhak legislative steps toward modern> business recovery cerned a that Wnn:n which er than' A- admitted partnership in expected is Chairman Grace, W. R. Grace & im- t un¬ \ LATIN-AMERICAN TRADE: sist. r the to 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 of — But full recovery from de¬ pressed earnings and prices — and normal utilization of refining ca¬ lems will per¬ o last of ci ■ One t, inequities „„„ . re- depressed earnby nearly all oil companies throughout 1958. in general some prob¬ o u the "-some profitable health level. are now on George Clitie Smith, Vice-President and Economist, F. W. There approach ' a 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 a they have been suffering. It in new or additional facilities at the earliest rather ^ gradual climb. '.,,'The raiF- once facilities. organizations acquiring up, 5%, in 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 a 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 1 V ' , depressed a 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 dp forsee sudden PETROLEUM:"'' : we 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 a corporate health. Any own vania Railroad Company. ( prospects for the industry in 1959 depend to tracts. t ' •, 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 v 1$ MORGAN GRENFELL § CO. LIMITED 24, Great Winchester Street, London E. G. 2, England John H. (lltf) 20 The Commercial and Financial Chronicle had talked When Special Situations Are Better Than Blue ^ Chips Chairman II. S. and Fund I ket? will more loss. be inflation years from now elect retain Administrations Ad¬ will take inflation¬ r ary steps; and if the Adminre- fused take to 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 we inflation—and more effect that any order know have upon anti A item creased and wages then the and the been of mine Bankers clipped this sent it to the Number 2 time to labor relations. had a discussion My friend with him and in¬ com¬ olies and that in his opinion, they opposed to talk a 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 an 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. He said that officer his of . 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 he best We sell of Bank I am nor steps that the being as • 680,391.93 , $84,037,971.23 o $ 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 of 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, as perience, I be can not ex¬ as one will have consid¬ inflation and unless how the wage- tell price spiral of my certain as we more can result a am that erably me 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¬ it "Many bought price, it for a Twain woman dress a who thinks for said, she has ridiculous a when in reality she bought an absurd figure"? Favors Mazur named the of Equity-Hedging All of you, I that the usual believe, will form of 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 of merchandising, government, and on pends served as Fiscal Counsel wage-price and spiral possibly brings even more 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 at St. Regis, New York Wednesday, Jan. 14." Mr. Mazur for many years Director of and is now of Allied Stores a Corp. He is also a member of the Board, and Financial Consultant to Federated He of has also Radio Department served as a Stores. Director Corporation of America he 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 of be it in policies of govern¬ activities and deci¬ the or 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 be bonds and mortgages America's tribution." Hotel upon which rests Mazur expanding system of dis¬ the alone! Paul of 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 at "Mr. Mazur has held that it is the standard of living that sparks Retailing" every so More¬ economic position that that would enable us to be truly thrifty. to because do 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 to rate. he has stressed that ciety that Mr. continue ever-increasing over, n- was — Mark said receive the to stop which is spiral a The Award's figures. Was was Board of Trus¬ take an 1 9 5 8 ended necessary tionships to n e winner of the Government, the Con¬ are economic rela¬ ulture, be chosen , wage-price "He has worked closely with the New Jersey Agricultural Ex¬ periment Station at Rutgers Uni¬ versity in developing concepts of techniques of a radically differ¬ farming and live¬ stock feeding—based on the abil¬ ity of animals to perform their ent system of labor to feed themselves. Es¬ to this system were his own sential inventions of a 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 in portion of 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¬ on so as to maintain purchasing power his over the next ten years? Dr. David McCord Wright of McGill Univer¬ banker a The at - Filene's Department Store amount is as is Stocks or nearly decline are a good Stocks in as the become great value a as of 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 to emergence of man, the "yes" or to he has man express a of the American free held, afraid or 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¬ my books their point-of-view, spelled l five on security seeking unable in unusual widely varied a of activities. flation." Advises in record an 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¬ if great, the since, had made years of 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 a 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 a against That causing prices to reach such present Capital the disastrous .< inflation in I do not expect the same of inflation in the United so France. M. has sub¬ a • • business gress 3,655,318.89 610,629.05 Paul said, absolutely convinced that neither the cost Building Brothers* to 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 to ; I witnessed the disastrous flation in Germany and the Mazur Named Tobe Award Winner for 1958 company and up every year, which enables them to equip their plants with the on placed, nological growth and innovations of the future. you to friend to meet with him. my 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 in for secure Act, the of 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 to as laws discussed. Tobe Award it pro¬ stated am labor so 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 in 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 a will have you will can he share 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, to 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 an 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 be than that a Because of the concentrated •Can Inflation* Be * is so 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 to and that exists in both the big labor unions and in big business, lrom years now their on sufficient be amended The power ten years much greater so probably continue to be much greater than that of blue so 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 more 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 in man the farm organiza¬ printed educational material, and with the support of Mr* Davidson describes the inevitableness of and a worked of legislative problems and this the Board, of International to had available By CLINTON DAVIDSON* Townsend who ton tically all . was from creator and evange¬ a the purchases, point and of view that not purchasing power, and consumption, not pro¬ duction, ly to was affect the factor most like¬ our economy future. the Board of 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 As 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 It 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 r r Fahnesfock & Co, Paul Frederick O. 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 f. 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¬ a Sole Proprietor in the member firm of Green ner Co., ship elected to was in 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," or miles second. Yet if there is a DIRECTORS I Chairman of the ISoard The Council and its advisors estimate that committed ourselves to pay we 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 - - to 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 at 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, : ■ ' vi Liability Acceptances on 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 S 268,261,617.75 Allied Stores Corporation Dividend PHILIP O. REED Chairman of the Finance Committee, Central Electric Company Deposits J. 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 al SI 14,672,970.27 on 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, I It 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 „ 21 MEMBER OF THE (FEDERAL DEPOSIT INSURANCE COR POR AT ION and for other purpose,. y 22 (118) The Commercial and Financial Chronicle LETTER TO 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 as 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, TO . sum nomic Reader LETTER , and more Henry inflation, and how more protect himself from soft one may Hazlitt's "Myths". Keynes concepts ' with solid goods, real estate and com¬ Frank the to "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 f 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 up so also wrong and are No 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 to 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 of the capitalistic system, substituting the subterfuge and that the elixir of soft money could everything cure trme of stress, — depressions and in 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, or the government and social or in worse, one And the advo¬ proverbial to keep up dog with so — where is the when it exist in the broken even of Keynesian matter as it did other coun¬ free coordinating money, government evolutionize talism to to 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, of so 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 more inflation, inflationary spiral solve a deflationary an adjustment to, the ups economic well with and hard downs of being oft times be¬ came abuse tion of po¬ Keynes correctives -is same poison govern¬ spending and stimulus and always the mental to place a 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 at Lancaster, essence" of . of the one .^ Patton one once never said in that doubt, is 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 a , ™i/.JL'X ^ taptly^^u^prt. to wLi-A/rr onensfa^verit.*r-Ai than more medical and 1 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 v M- Say did not . assume, as 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 he lionth borrower the. was of 30-,nil-;any. good resulted in increase an 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- s learned and ,./.y(aS?e' . fices of the Beneficial Finance Co. for think be doubling of the produc¬ tion of anything will,, or should, without inflation, double its mar^ could "subjective Pa. letter carrier, , Benefical and W. 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 is Under not. products money. of the . other As . M. 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" a 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 x loans. it has ers The ..I assets now total and than more and some more . o- Since -x its neered 26,000 stockholdthan • x- several 1/20. $500 million over inception, Finance M. 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 more you you can l.Say, Jean-Baptiste A Treatise provide funds the of price, con- real a neither ^able" pin- and purchase varion upon em-^ t, 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 to 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 • A 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 1 our he 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 as 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" 4 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 a .self-discipline Jof tries, constitutional also M. 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) x- fact a of 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 01 .... 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 on Jsome congratulated?\Wfes" be upon theory? that vxx „ ian Keynesian Misnomer years the ir- is 1929 over toll and political thinking of the pop¬ ulace for letting things get out of is does not and debacle or service of the Keynes coming down discipline of capi¬ of hard The of 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 of year What?" it's faulty. the dollars each answer cates, to the trouble of the first debt In the latter case, of and penny that say it would be nearer to statement of in national ultimately amount to more than the existing national debt it¬ Richard Spitz record, perfectionism, and their the of redeemability. 8 would * Offers Congratulations repudi¬ IftheKcynesians - irresponsible planning—that ation perfection. - SSSSTPriosep, NOTE c. 2. R. 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 as the most as is fre¬ • trade efficient guides for obtaining the most de¬ sired results. This applies to 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 ' ' ■ i Volume no 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 is subjective question, as a all other valuations -of acting rhen.,../ / ; - strictions on 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" ^ N: 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 p workers. Unlike Hazlitt, Mr. Inflation-Means ■" an nf nnrm/iT a Mr «/>♦»_ 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 or is about the others. So-called reinflation in- ^ of relative creases-the demand of "nomiC demand others. of 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 by The ditions. total supply of the is then colleagues would not have dared thing to remem- Continued ber is that Keynes was providing BP one vaiue of use gold December of as fZstZ'K 1st NATIONAL — «• paper cess of money . supply of legal, substitutes in ex- additions to 24 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 mm $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, . m 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 as i.e., the official Encouragement of credit expansion beyond amounts saved. money page 1958 31, BANK AND TRUST COMPANY of PATERSON, N. . tender on ASSETS to 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, to 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 , on must t is 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. • > ». as 23 * (119) 35,498.64 1,042,295.84 . l 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!# . oi If held some up, wages are there will of be ^ "rate of for two tions of should are also be remembered a market society tees'that a 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 of different entirely contributions to consumer "in line" when mined, savers, by the the types satisfac- demands. They they are deter- in consumer British as 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 OF PATERSON - v\> 1J HlilHip ' / Handy Offices Throughout Passaic County Dnfarcrtn DlnAmlnnHila i in 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 a .. $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' t (120) 24 , Continued from wholly unnecessary burden of try¬ ing to foretell the whims of poli¬ 23 page ticians into such controversy. a 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 more wealth legal tender. more conclusion of all is to issue The ultimate such nonsense revealed in a recent book which held that all Americans are was now too affluent, our so various governments should all increase their tax take and we should pay more people' to ployed. remain unem¬ in Continued . that income they distribute can to confiscate the in 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 is area $7.90 of all of 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 in as 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 on restraints moral not need trade. a or Free limitations trade trade dictator such or "economists," We or knew what he the served to hide teachings of economics. In addition to the back to 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 of 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¬ of 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 5. Professor Mises cites the "Paper of Brit¬ Experts Author of of 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 or ★ The 1959 issue of OUTLOOK / leaders who manage the ★ Do not miss the Bank on next |pushed year's business possibilities from the country's industries. How or 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 of Others' our authorities on Comments foremost national international eco¬ nomics, Mr. John J. McCloy, cently had this to say: "We have to face the re¬ fact that It 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 we have to longer and harder to make them. a . . disconcertingly large people in this world working harder and they rapidly achieving a competi¬ number all of are aware of ... 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? It . to seems there me possible approaches. return to a tionist three are We try high tariff, protec¬ policy. We can ac¬ a trade can celerate the movement of Ameri¬ production abroad to take advantage of lower wage rates. can Or we 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 an that would shattered strengthen has it toward the war- friendly enable them to and Communist present policy the of economies countries sist subversion. re¬ At that we have succeeded, particularly in Europe. In the long range, we have worked market appears vision in areas which United of rich the new world States in industry might participate fully. A return trade to policy have more a would, restrictive of course, international severe cussions. would It 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 more efficient production, the normal are outgrowth competition from abroad, and ultimately result in lower I 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 If 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. o important issue. of 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 us is would ket. Firm, Corporation in^ this important by in 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 No 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 more 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. a 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 in 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 as of content — are increasingly sourcing and manufacturing in Europe, Latin America and Japan for sale in the American market. I 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. I 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 we are confronted in the markets Now it see to seems sell in to me that, if we expanding world we 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 I that you be frank and lot of people argue a 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 is a American the to any in 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 as market common Criticizes European fries tariff have riers and effective so or I 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 on 10% our quotas or tive devices such as currency con¬ trols. ■ no Now consider a 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. If you to 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, is car about less no $8,200. It $3,200 of than 40% premium for dol¬ equalization fee and special purchase taxes. You would a lars called also pay an annual an about $240. of tax use In Italy, it would cost $5,800, with a penalty of $1,400, plus an annual use tax as high $302.50. as would be In England, the price about $8,000, with the penalty composed of a 30% duty and 60% a 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 to 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 to protect local in¬ dustries weakened by war, to con¬ serve scarce dollars for vital purposes source I of and, tax suggest, about some time of importantly, as a revenues. these that it is examining practices closely start contrary/ capital these countries certainly altruism. engage in have we I been position of would somewhat in fellow who has a 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 we Son, the big brother say: act is over, and from here on out it's to man Let remember, however, that us if even man. were we fectly free kets, to access it would do unless achieve per¬ to world us mar¬ little good find ways to make our we costs and, consequently, prices, competitive. This we must do if we to sell in those markets are well as in competition with forgoods in our United States as eign market. How we 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 we 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 of the steel industry championed the case realistic tax allowances ably assistant Winthrop to Herbert Moeii% engage Officers business. E. Dickey, clear that if the seems Gordon G. 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 i „j> l well. as lead to course for i It must in hue and cry a protectionism that would iso¬ late from the world and great¬ us 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 of 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¬ of 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 as the who opens a new sav¬ or more—as long supply lasts. Come in, open your account now, and get one of 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 we re¬ more 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 of be a 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 1 Money deposited after January 15 will earn dividends from *'"• • DAY OF DEPOSIT The American before and untarnished a Money deposited as us as 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 is 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, in engage Jr., John are J. President; L. 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 is a good thing. City, The most insidious single factor all has been repeated annual wage gains in excess of produc- to in engage Officers business. a securities Samuel are Balinsky, President; Stanley Mindel, Vice-President; and Gloria Secretary and Treas¬ Giordana, urer. of 30 Wall Street, New York 5, N. Y. Hours, 8:30 A.M. to 3 P.M. Mondays through Fridays country's outlook. a for SAVINGS Griffin, Vice-President, and A. B. As you all well that SEAMEN'S BANK securities a , , 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; of 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, at are presictent of 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 W. Investment own. ly say Services Inc. has been formed with offices a instead of trying to upset their economies, we concentrate on cor¬ recting the deficiencies of our not But is to all their economies. our been however, to 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 so Europ^jaftjrcoun- some urill volume them—steel, rubber, glass, chemi¬ cals, coal and all the rest. pure Today, G WORTH, Tex. have been suggesting that cently final tmliimo the of union leaders our the colac sales How to Keep Costs Down effective. fully comes of crack at Europe's rapidly expand- us 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 a 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 to American growth of demand for that kind ^ boost if where, J 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 as wonderful our . comfortable and safer auto¬ more speech on a at 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 be 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 25 <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 t. . , 26 The Commercial and Financial Chronicle..., (122) Continued from would 12 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 of 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¬ to remain overnight In morning the doctor returned said he'd have to stay for a could leave the next day. more 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¬ be below the Nation helps to build and as 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 more once a recom¬ second vice presi¬ we should have two presidents, I 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 ' t? 4- Forest grams J • Service, j and other In mv 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 a 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 me men tell you that the group who are running Washington Administration capable men as and are as devoted could be a group of found in this country, and amazing been made in sented our has progress to am es At- certain that do not realize- J3S Pr.°.v£ ^h,ch had I bee® J?® aPPr0yal and forW. P dld n2,t/ sb ^ %e ^hls would restore to .the lty* bvsmn'e member of (Congress1 ConsyidTth"houSng m-og?ams' AfteT the war there was great a shortage of housing units and both: parties helped in putting through housing nas lias It is as as it and the a Federal-State - eaerai oiaie : ^ • plaC?d by the Fedfal Go,Yr15""; went on these, act income taxes. While; a cushion against» as !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': SM bill ion, or This I-is..U» ibaf ♦?*«!: than t! more 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 mH do not hopin to 1t,va on 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 - t 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 lh • 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 ' i, of the Department of Aari- culture grams sup- Reclama- Tnfprior Dpnartmpnt o Tevem enn many porters, the Bureau of President the responsibility which Our many fiscal problems have discussed pretty thoroughly we that leadership. I practical suggestion to f ;;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. We J' \vav ^ by, This low-?+-V3S legislation through ♦ to new program ot baiances. We i 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 a 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 In the stock and bond Addressing charge for the Canada $7.00 Special N. arranged $8.00 per We a can small entire United States or thousand. S. D. list (Main names. Cost only), also approxi¬ for addressing N. A. a D. thousand. also supply lists additional charge. ' on less the needed — done will be state un- about it, voted gummed roll labels at New York 7, N. Y. pear only Gbte to able once give time and more to 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 I concentration of power both fiscal and administrative in Wash- Herbert D. Seiberf & Co., Inc. REctor 2-9570 funds expect that v ington. — is °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 A. ■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. a experience in this more 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 be in advance. Thursday, January 8, 1959 The President is a in as to interest rules should, opinion, be modified my vigor-* applied leader in this effort. of to Congressmen members of the as and branch Offers Own Suggestions I eral mentioned incidentally, Another broad sev- places where I thought that Congress and its procedures" could and : Public area Relations in govern- local saies residents states caii public ' a ap^ficient neighboring shipped - of , the tax. .,, . Fur-) , - lbermo^e» ^keie should be standard exemptions and credits I have long come as we - •} to believe that so continue high tax col-, we are going to have high'. government spending. Even if set- tlement should be reached in the so of of have'purchases avoid payment ,, and area c ; direct to their homes and thereby cold the an 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 - to Improve Congress local Potion- the. receipts from well Executive and stat® and locaI> wblcb could aP war that over we the next few could years look' forward • Volume to 139 normal more a Number coexistence, of tures ; I 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 of they 'to r a from that of corporation. a ; T. name, The ; Broad¬ of the Board of and William P. Vice-Presidents. also new corpo¬ tary and Treasurer. ;,1 and Chairman Directors of the Richard . has Members rectors of T. are Charles E. been the Mr. named Board O'Con¬ Secre¬ of Murray McDonnell, McDonnell, Edward F. Pistell has been since was der Noel & Company, Inc., Wall 55 Pistell has in Elliott the general a Company & Prior war. associated & been that to with Van fye Alstyne, Company. Mr. Pistell has Street, New York City, members supported and participated in the of financing the American Stock Exchange of growth many com¬ the National Association .of panies including Standard Packag¬ Security Dealers. Organized 24 ing, American loy Corporation, years in 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¬ C. 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¬ E. 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 ;• u for worx S3 it. m lot of educational work'' &■ r business groups^ " housewives, with 120 1905. will get the kind done with be me reiterate the taxpayers out ; and go 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 d a McDonnell firm in Donnell, Edward F. Becker, Rob¬ ert ,E: Becker, Robert E. McDon¬ or equities. -the Now . individual rate present high levels, " in the top brackets, nell over at taxes founded agencies ti (123) investment McDonnell & Go. ; proved ? Financial Chronicle d 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 as that of mar- ket's Board of - his to years, • Governors, according to an announce¬ ment by Ed¬ ward T. Mc- Cormick, ASE President, fol¬ lowing receipt J of the Nominating^Com- T' rhittee's-slate. T h m h c e i t1 e d e a o m- d b y Clarence • %] e;;..\yas e jame. iv. oyer . A. Bettman, Milton E. &' 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 to three year board terms, four non- l'egular 'terms -members and gratuity filled 9, pt Mr. and member one fund. All the annual at Feb. to -three- - the of a been a >> of was first in 1946 and board in 1947, 1951, and 1954. He was vpce-chairman in 1952 and first chairman On the first business issued in : a Nominated to three year terms were member governors Charles J. Booklet; John Covven & Co.; & Gerald Smith A. Sexton, Robert and N. Suydam,'Merrill Fenner Lynch, Pierce, Smith, Inc. Messrs. Mann and Sexton have . Booklet, served board as ations up to midnight Income-wise, 1958 in 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 a a year, trends in which the regular $4 on —helps us to see and indications are what is going to happen. general trend has been upward for continuation of this trend. We a 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¬ a 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 J. Mdnn, Mann, Far cell, Jacobi & Greene;. William F.* Neubert, Sexton ; Flash Annual Report covering its years oper¬ 1956. * regular mm& - , m reelected to three year terms became ' the He elected to the was s' stock specialist member exchange since 1929. as A ■' • Dyer is be- election, on\ 1959. has year will posts tim prtifK: carloadiugs, a 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 as 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 & in nominees. A. Co., was of 1958 first are . . . Merchandise . • . Other Total Operating Revenues ' nominated to trustee a . $4.00 6.36 8.36 Net Income gra¬ $177 $233 168 • • • • • . 151 • • • « • . 28 31 . $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 Common Share . ...... , 52 68 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 J. *Jf you would like a copy of C&O's Flash Annual Report for 1 958 and 1959 Chessie calendar (shown a above) in full color, just write: Conroy, Boenning & Co.; Joseph A. McGarry^ Wm. P. Hoffman & Co.; Frederick A. Mum ford, An¬ drews, Posner Clarence V. & Rothschild Quayle. and Chesapeake and Ohio Railway 3850 TERMINAL TOWER, CLEVELAND 1, OHIO 15.6 t 28 (124) The Commercial and Financial Chronicle Continued from 4 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 of N e w York, and of J. P. Morgan & Co., inc., had approved merger a Banking Department New are York (both chartered), State and to the favorable action of the shareholders in 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 4 2/5ths shares of for each share held. company of 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 in proposed 7,540,000 would terms would result shares, $20 par. It the put new in 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 be $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, of Morgan will yield him $17.60. Shortly after the announcement of the merger that newspapers of Justice proposed „ view the the Department scrutinizing the was consolidation to in word came deciding consummation of whether the result in lessened it is decided in with a the is reach the the reached that pass in matters the Youngstown affair. the bank they Bethlehem or, den by the courts. In have Steel- that could merger long delayed, case well be 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 us protraction threat¬ a « York New ing plan. is Trust resentation on the Board There are at Manufacturers a count, Trust has an¬ transfer of funds from profits and amount from to surplus transfer a surplus to of 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- In year 1921. world 'market for the 1921 ready made goods shrinked. volume of The was the At Yeirof 1Q23 Yeai oi uz, time the June the on billion, Reparation Basis fixed were two the of hundred on and million marks and the attempt (o pay thig in goods failed 39,751) jn ^e speculation in get equal manner same the as the to exchange foreign Reichsbank fact, in 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- In 154,000 — to 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." a New ters Trust been pro¬ quar¬ has for considered candidate. merger bank's to was In many York time some that _______ Indeed, management has a the stated they had discussed mergers with other several banks. To 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 to the their consideration. have gone latter Proxy bids from both twice out contenders, and there the matter stands to 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" a real circulus viciosus: People national the automatic con¬ it must have. sequences Gold confidence lose in They currency. buy the in MnSt'dc^v^afthe H 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 rn war the German issu- JL The There j several were of some which I will reasons, try to ex- J . The inc lost iosi mnde war if neeecrcbrv war maae it necessaiy to import more than was essential in prewar days, because large ter- the at cssarv'tolmnort food^ndTm-tad" Jan. 19 annual meeting. inflation, Out Leaving during exactly of 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 a 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 more 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 more devaluates m suppliers demand payment not in , leased for necessary be more 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 a net profit of $5,- 322,702. nf With Manley, Bennett DETROIT, Mich.—Edgar L. Fink is associated with the invest¬ now 11 in ie- to hniannn a nf c'cZan "Severnmeihods bwtoereaitoettm totomn S led reparation There The strietod «ivffv materials stored because they can¬ not be replaced. is the of 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 of its Attempts the of 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- a 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 1 t. £if n^enrifv' f ing some years in the investment business, Mr. Fink, dent of many years, cently been active Detroit resi¬ a 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 F. Exchange, A. an¬ Dickinson is 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 ,. }i were of nnrtc fho Romihlio Republic i _ -x « souice from left the vlmafiiini thw-itnitoH threatened fn to and ^ ^break Pdv i 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 of April, 1923, by one-seventh; in September, 1923, by one-hundredth; and at the end of November, 1923, by approximately pnethousandth. Besides In this very unfortunate was or less forced by political influences of group interests, the more ^ Ge?many issuing bank pursued credit policy which was definitely contrary to what was ment with it another development said that it de- was cisively contributed to inflation. It was the passivity of the German Rpichsbank crease to the It rate refused of a also interest as special to the in- level might be develop¬ and prices during of 1914 until follows: 1922 . t Milk 28 Meat 30 Bread 34 Now to for- according Germany Instead of it, the Reichs¬ devaluation currency. of wages Eggs refused commercial and ejgn exchange credits to institute. it (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 a cur¬ duty. a is 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 7f revolts and revolu- unrests through ex- rec{. and indirect—decreased con- YU 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 a oi for it and ^SGw°£r i' ^otod its w mf^ion^^Tiv^V^t^r cupations (like that of Head Office: 26 oc Inflation Of associated with their firm. and . quite obvious. ^ Hilfnrhnnno! City, members of the that i ?hp\vnr°inhmftfin ° yG^rS after New York nounced ^ fhU infultton ^ ?q9q nf New York -aergni etd Ant„oii'.too.o The fact that German economy, London Branches: Laird, Bissell & Meeds of S. Dollar Stockholder and INSURANCE STOCKS State some tionary BANK the London Ultimatum 19 This devaluation. of crease calling ac¬ like 1922 Di¬ of payments. U. rep¬ present of figures, which convey more than words can do. One members Vilas undivided of began. Here, balance especially true of the end destruction encounter¬ O nounced the rency it stockholder contest for a rectors. If 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 of the two banks, subject, of course, to the approval of. the New York State The of increase an credit and self At 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 of 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 It same. dates inflation as be¬ too rapid. * It is undoubtedly true that the value of 1924 the increased it workers to of its value inflation in by 50% After 1918. in paid wages reduced was again to about two-thirds of its prewar value. For worker some France in 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, it actually industrial boom starts and one fight here the symptoms not the for reasons introducing stop a inflation of wages prices and by submitting the The reasons for this flation were, in fact, with the first one. It started mense in increase the same as by state armaments. This im¬ an expenses was not felt at the the for pro¬ tunity to of after 1945. uncontrolled prices where market black to side and high and one on in nearly the that you Official everything near to found when occupied Germany and the ture us tive friends here than their to are all they more many true pic¬ any facts—as all official statements of that time are lies. v ' :p7':V''' the period . for and I give willful after the information some will confine myself to one all effec¬ 1948 Currency Reform of the Only those who owned property, mobile who t immobile or had shares in and the of our It to 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 it Oct. ingenious which were adopted — clever, cunning, ruthless and well constructed — but nevertheless to Continued stated that on 1 1923: goldmark per The v per annum;- November inland 'S annum. market shows also of the Ger¬ Telephones Be Like? currency. The index trade shows with 1914 for wholesale the increase compared an in 1920 by 20 January 1921_ja> And in *._42 times __91 times June then it times. 21 times January 1922 July 1922 and - price structure of the Ger¬ man 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 to all to enter¬ stable basis of calculation and, of course, come a to a great extent engaged in a price raising policy which had no relation more advantage of This was to then but facts took unusual situation. an short was—as as facts of the first German inflation after World War I. I that I conscious am could not a it possible—a fair picture of the of the fact This more communication in the years service ahead. Matter of fact, the need is with us right now. give Just the great increase in popula- details in this restricted time more 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 I It said is the policy of credit policy the of state the and that we'll be the attitude of by the loss of it issuing obvious is that people is dictated confidence in the stepping right along to keep ahead of our customers' needs. The greatest progress bank. Furthermore more and what the facts prove that this in¬ flation was mainly due to the financial (there will be 40,000,000 as it 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. to effects evade somehow of inflation if 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 in new created by 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, us turn for view of the second many during had and a short to communicate New instruments will provide ever-widening choice for tomers. our an development of switching will make services faster and more 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 be over telephone lines at high speed. automatically We also have the prospect of in addition to the present networks for television How far we 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 at first was and it not so 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 To 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 no electronic be 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 be given this country the best such cessful. who that has to 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- t 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 29 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 of Only stories which will have been told them, statistics of that Hitler period do not give all will remember what soldiers your so 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 my 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 of madness and for their market—fixed prices in the state controlled economy and scarcity lated by the state, fixed for nearly to and also shortly first consequence generous by directed purpose: and more arms. war the first, because prices and wages were stopped, raw materials were controlled, production was regu¬ and it the These 1936 of in¬ second one arms During the more 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 to these even the before an fix perhaps because tries came is its effects actually dangerous to have this type of in¬ with do 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 I "i t»'!' '.'i , The Commercial and Number 5810 189 TELEPHONE SYSTEM page 30 30 The Commercial and Financial Chronicle (126) Continued from 29 page German Experiences with the volume The effect. same of 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 in those beginning of my paper said that inflationary trends are often regarded have tried I show to the reasons If I try to deal for true inflation. tendencies with inflationary now inflation. real as be permitted to survey the economic development as a whole I may so to explain more fully the and backgrounds of Ger¬ as forces man economy. 1929-33 Wage and Price Deflation inflations Both in Germany follewed by a period of de¬ were flation. War this After the First World period to 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 a more 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. to a high very •' Productivity various campaigns methods of and increasing production had been introduced. increased production could This not be sold ficient there as purchasing pieces of that the avail¬ able. various ciety and of - 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. is inflation. not Be¬ afraid of to inflation one of income of 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 of deal with a subject which is very much dis¬ cussed in Germany and I everywhere else. whether prices whether both and whether respective It World Second by wages 18% increase normal of or ques¬ wages price policy and wage policy can Increase 1950-51 of with by 7% increase wages strong in of prices. increase in real wages: 1957-58, ap¬ pre¬ vent inflation. This shows that increases the rates of closely con¬ nected with the conjunctural de¬ velopment of the national econ¬ are They are surprisingly independent of the development of prices. omy. Let us examine the facts present themselves to us they as in 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 of 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 to 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. If in¬ increase industries would be disturbed. to measures and trades normal level support which are before—wages increase more than produc¬ must All increases of the increase an of price level the volume of money. They are always con¬ nected with a swelling of the credits and of a an opening of the This, however, is ume tendency is part of our free From is remarks just it that the preconditions my obvious now under which nominal wages should conform with the increase of pro¬ ductivity do not in practice exist. Prices in 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% of income our is goods and services which on 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 to market a Not on 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 a consequence of instances necessary inter¬ in the market mecha¬ nism! How far this interference is from of and groups political influences, this is question I cannot discuss here. a , It is certain, that much of this in¬ terference is not necessary. ; , It is certain that and in to a a lot of it distortion of con¬ our and prevents structural which - are unavoidable the interest , of the community undesirable. of 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 if we this modern enjoy is to be saved allow the State in the preconditions ling fulfilled: the for wa. es would by • be create cutToreign lessons Campbell Chibougamau Offering Completed ^ - a Lid. whole in accordance and' Net with the economic everything but to interfere an¬ offering of $5,u r r e n cry) Mines Chibougamau and. the economy community is the and in man we know street u£ed The .: . bonds the company at the rale of 145 shares for each bond or if converted of 120 before Nov. shares who freedom of has than at and to guarantee each citizen the community. %' free a $1,000 rate bond before or will Nov. be into which on 1968. to the the on 1, made list ,, bonds / American Exchange. The in¬ to §1,000 prior to 1, 1963; thereafter $1,000 convertible on Application Stock State on 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 shares terfere to corporate til the cunning proceeds will including commence¬ development of one of its bond more the general who will pay most dearly for all experiments which may be made by people who, as our history has are of be 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 the applied by the repay bank loans. ment of ty the bonds will be welfare We know that all economic and from v-;Vvproceeds company to The balance of its people for some dreams of the 30 first 6% oversubscribed such power. It Pit— C. Dec. on 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 of Co., 000.000 inflation arises, know how to prevent the rea¬ of Co. i* & nounced that their rency), and accrued interest, was experience sons Alien ^ field been is bonds r'v will be redeemable optional redemption prices ranging from 103% to par, and they will also have the benefit of and annual an 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 it to see the national has " ar¬ an can inflation. It is the State it. It is the State who when and where and up to what the duty of every mill selfish see to it that interest does not over the common in¬ of all. These words — as they are—have but little as factual effect. professed to and still we Human many live in beings have great a a ideal world which only too often resembles a 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 of the government to prevent power and and responsible to the influence. misuse It can of do Mines as The silver company's main situated are gold and some in the The company operates a Merrill Island, Obalski has been operated at 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 of bonds, due Nov. 536,925 $1 par shares sinking 1,1968, of fund and 3,- common stock, value. Stanley A. Russell rep¬ people on 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 as cobalt. Canada. gerous. is 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 in Townships of Obalski. McKenzie, Lemoine and Roy, all an the Chi¬ bougamau District of Quebec ap¬ sirable of the be Chibougamau contain deposits given a alone which prevent will development of its properties which can properties It is the State or Campbell and situation. can bonds Ltd. is engaged in the exploration to currency than is desirable in more interest Principal of and inter-? the on in Canadian by his he plan ahead, to see ahead and range things so that no one devaluate plus case. rency. instruments ; a facts. we foreover have have : country. our you all methods which We see —' be saved from learning by such experiences! \ trade in our apathy will experience and the have learned from two we May only method really effective is the one the Germany as we They have all failed. These seen. is /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. ■*>'■'< to 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 A conscious of the cal and economic or 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 It 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 or And as—in -a democracy, we are the State our responsibility to see to that they get the powers and it with demanding the impossible. some ferences of to control a These trends fact in position to plan ahead. a —it is Inflation circumstances decide in are free a pldneresponsible ^orCflity Even offer and de¬ a The them: safety In on They y 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 To - of 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¬ as the sense and government a tried it appears, as not where they advisable—by ail economy. free economy which in fact is not as to whether there will be inflation methods of* our* direct^ "normal" swelling of the vol¬ of money and a certain infla¬ tionary is light hand in time trends which may become dangerous to .our as tivity. mean ^Parliament and goverhirierit ;deiermine the road economic policy a conse¬ competitive mean increase of prices—if demand is to be upheld at communityTalonO-tyj destroyed' 13^ dnt/ r C' ^ than not in Are Wages Independent of Price? wages the of mand determine the price. 1928-29, only 2%; proximately 1-2%. or a must more demand of wages by 13% in reduction of prices. some in interfering with free¬ one- rin modern economy it is in the hands market in suppose the lead to inflation can a is increase Protectionist This Increase 1949-50 world without so dom—if it plans in time and acts time. by system, sound—and productivity because otherwise the equilibrium omy of with retain only and ex¬ by offer and must be no pri¬ interference; if the on must Wages quently War: small to 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 be state or be. permitting it; manifold struction Whilst before there we -come must State demand—there spent after to 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 a distribution trary it is reduced. ex¬ was as 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. more no the save group of the be "nor can it be economic stable, influ¬ of 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 a the years. annum get more than there is in that the distribu¬ you. is 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 At I It to that just and correct also with regard to production and demand — the What does that mean? to rule and to act. men is 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. a 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 to is whether not current quotations have or 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 • on 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 7 , . 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. •; ? . " . 7 r 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 - i J : . Funds in; the, JL S. Economy / ■. Sources and Uses of / * nnually —Billions of Dollars /'-—1956 OF FUNDS SOURCES / I 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 .4 1.0 ; 1.4 0.8 0.9 1.1 9.8 USES FUNDS OF State „• ////Z^/' & - Notes r • v 2.1 /, 1.2 7 1.4 —-(L9 0.2 0.2 0.5 0.5 6.8 7.2 -7.0 28.4 19.8 31.8 ,2.i 6.5 7.3 1.0 0.2 0.2 0.5 will 2.3 2.5 2.5 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 more than occasion in the past. one a 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 . 5 - 0.4 0.3 0.4 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 0.8 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 -■ to that a 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 be an Excoffier Stock Exchanges. The Quincey organization was founded in 1887. can Mr. Mohan was formerly a Vice- President of The First Boston Cor¬ poration, having associated V been with that firm for 22 years. Excoffier's Mr. to 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. E. Hoffman, William 52 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 .! a individuals, unincorporated businesses, non-profit institu:'-/*/tions, investment companies, fraternal, benefit associations, etc. of 12 to t Residual—represents $ Excludes tl Excludes in changes and § Excludes- stats Federal Government and agency direct investments, holdings. and other state and local issues, local holdings of their own ' ; a 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 of Ethical Era." Pro¬ 15 years. the . a.m. President, poration. Sobering Cor¬ - thereafter. of to 2:00 p.m. G. 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 to "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 at manage¬ Ralph G. Dalton. v Specialists in , '■ U. S. GOVERNMENT and C. 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 is age 48 of 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. a 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- F. 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 of 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 of 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- 00 4.8 ' —, on M.o 4.8 Financial been .0.9 3.3 • 1.2 —7';7.'- 1,3 -■ ■ June ! 1 - ?/■' Multi-family & Commeri , , • a—: Farm ; / funds ' * , f 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 0.3 surrounded that It appears to /•- followers that the ,1.1 2.0 7.5 1.2 / 5.5 / •• ;Z —4.2 1 • • ./■ 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 H. Broad Street, 25 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 a —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? v half half / half. . Companies-. Insurance Life ■/>// v-llst -1959 r-19 58 Ul — .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. '-■'/'/ //;/ / '/■■ //./•" //' ' on 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 82 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. of 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 to web of economic stimulus and re¬ opportunity key and growing role. have sponse play a an Professional of be can help great first makers and men of to women policy to economic situation get" out the facts from the describing •—to world an rationalization, of 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 is It joins or Next, the economist can under¬ particular prob¬ take to relate the hand at whole the to eco¬ nomic scheme of things. This job is most essential narrow lated interests the at time when a 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 a the how fluid of situation is, how great uncertainty prevails. It must an 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 of 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 of confidence, and relevant. are of of democracy a of getting consent from of and conciliating of various groups. such for of as char¬ course, So, too, is the im¬ perative necessity in af majority thej interests It is to factors these that must we look explanation, for example, an failure the of government so are equal, economic analysis may be determinative. In still other cases analysis economic more War II. The a ponents clearly and at once on the defensive. A sound analysis makes to it can is demonstrate how he to 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 of to 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 to 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 In 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 in 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 a This proceeded to fill it able and experienced pro¬ fessional economist. an competition the economists But an ablest do 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 a is in evidence around impulse economic the of most horizon— agriculture, industry, labor, fi¬ It springs from a desire for s e c u r i t y, for immunity from nance. in more markets badly needed emphasis in ernment is 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 of 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 in 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. on For theory of perpetual a the government to go deeper and deeper into the busi¬ of building competition ness shelters basis detailed degree some by 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 share that view, though even were—and what must the private forces great in the themselves gen¬ been soundly ob¬ economy has It erate. it that served policies about be—marginal to is not government themselves a in recovery but economy that kind of our rather bring it is 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 in in came the orders. effect of 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 by the late in Administration later November. policy respect to the recession ceived and carried out of that President's analysis of of on the apt was which perhaps to be of the probable set as of World A of to be 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 a to the the 50% jump hall of 1958 compared was in marked This contrast 1953-54 fense were sched¬ was previous six months. situation to than more in the first period when de¬ expenditures declining sharply fol¬ orders both lowing the and end of the Korean Hoot is reported to have remarked War. that fense ordering did not connote Congressmen feel an 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 to say groups "No" to narrow which seek to government an engine for the attainment of their ends. In past, because of the lack of 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¬ II since the the end economy an immediate expenditure increase of corresponding amount, the sharp increase in contract letting needs of workers who had benefits under exhausted their state take to a to help programs. and feasi¬ as were necessary clear made was further such the by President in his policy statements of February 12 and March 8 and occasions. several other on Steps that offered little chance of effec¬ tive short-run to assistance the setting up a huge emergency public works program — were resisted by the such — as President. The principal lated to This an 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, in taken measures lieu in or other of addition to them, has perhaps been the aspect of the recent experience most often discussed by economists and It should others. be that recalled was of recession As tax a cut as an late anti¬ May. of fact, I received a during that period from a measure as as matter a letter distinguished and conscientious expert at one of our great universities stating that, if the fiscal Administration did not endorse thought of in hence the a a category same a failure generation temporary tax cut, such would be as President Hoover's failure to take advice the of thousand a econ¬ tariff the Smoot-Hawley legislation in 1930. History prove may my corre¬ spondent right. I rather doubt it. The incident, however, is worthy some retrospective comment. of Tax Policy in Retrospection First, it should be clear that the question never one was anti-recession eral of tax a gen¬ cut or additional expenditure to alleviate hardship to or the short in the of revised year $5.3 Some billion estimates tributed to may demand $2 billion increase of expenditures figures ary increase run. over in fiscal 1959 the Janu¬ be properly conscious at¬ anti-reces¬ sion effort. More than half of that billion §2 housing is and accounted most for the of by rest supplemental by 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 A one ground may of the fourth of factor in 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 to favor moderate a proposed temporary in 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 of 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 in dealt was three procurement contracts A of dampening became evident at the omy an a exports beginning 1957, defense tion economy of 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 a 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 It downturn Thursday, January 8, 1959 . Readiness Examines Recent Government indeed. the I 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 of . . Selective, Not Panic Judgment to of analysis did as it as pressured It is my clear impression that in both economic analysis and policy, a it 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¬ a 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 A that in 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 We 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 a initiating of 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 a The Non-Economic Influences tasks that to speak, makes Those to 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 Of Duty in Washiagton Hies 'thirties the undergone covery sequence. . as of programs has struction. well as such for certain as highway going con¬ the opposition President's stopped' veto or $5.5 billion of additional future spend¬ ing from being enacted into law in the name of some anti-recession, policy. Second, motives reduction bill were for so a tax diverse as 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 34 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 of inter¬ severe of these of consumer tinued spending which despite economy. high in con¬ in the Indeed, disposable per¬ income sonal setbacks has reached new a Industrial Recovery The Federal Reserve clined to seasonaly from the 145 Board April de¬ August, low has and adjusted, in recession of since 1957 last 126 industries. increased higher. and will probably ; The major industries'are ex¬ pected to record considerable im¬ provement in with We 1958. 1959 compared as 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¬ a 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 an the petroleum industry do¬ mestic demand in 1959 should in¬ from crease 1958. 4% to 4%% This compares with over esti¬ an 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 in decline 1959 com¬ of about expected for 1958. The new duction supply-domestic pro¬ plus imports — should show about 1958. 4% a 6% a Demand excluding increment in the the free United over world States expected to record an average nual increase through 1965 and consumption tially in balance. on a are essen¬ now With consumer high and rising next months several period of will inventory witness accumula¬ the part of manufacturers, wholesalers and retailers. As tion on 7%, a 1958, inventory accumulation might well in aggregate $2.5 billion 1959. prices likely are to the cost of living index. 442 million, estimated 6.0% 1958 the over expenditures of $5,158 million but still down from $5,797 million in 1957. ' It is expected penditures will of reach $50 for a billion that new new total high in next ex¬ construction year. excess Con¬ struction outlays in 1958 aggre¬ gated about $48.8 billion, a record a steel higher steel prices. com¬ costs would competitive In settlement be 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 is are certain business outlook for generally favorable there factors which are The calibre stocks is found in portant psychology which seems to have crept into the thinking of individ¬ uals in wonder price all walks when spiral of 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 be than the Price in¬ flation is resulting in lost markets at home as well as abroad. Our export markets are suffering of 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¬ is 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 a danger point reached when ages exceeds among the also are levels—in that at historically the yield from high selection ket of great importance in common stocks for mar¬ appreciation. Irrespective market levels sound common of stock are values always available to those able to recognize them. But while so many stocks appear to In conclusion, . be bility of a foreign nations In from X-. of the Prices high level of long-term U. S. 1959 or regarding lin their popularity. We lost changing front we the left. too much regain living are world. in On much of Japan's the home continue to drift toward We if don't our seem national to prices for to 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 be Should stock ac¬ prices continue to t with their per-; line in in recent weeks, investment building a \ cordingly. advance Such could have an ad-, on confidence, and • of up sound call >• the i . would procedure buying reserve ■ power. and loss it care budget ■-I* the of could - re¬ Sakha¬ increase the by with speed which the , frontier there is being rolled back. This is true especially of 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 on the West America. as We future a . large Coast also of consumer tions become stabilized..:' Businessmen United States ing Alaska ket the for that as go in an the a 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 Of 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 in as 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 it of 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 in 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 is land a ice good belief that it of perpetual snow and only for Eskimos and fur trappers is being rapidly dispelled effort, development. This, by the spearheaded Government. is 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 on we public Government—most the Pacific Coast, is now awaken¬ are be Ninety-nine of their side of the greater Alaska drive will new on Statehood far a 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 a carried very stability dollar. Sometime during 1960 long term U. S. Gov¬ should be •'. of Manchuria and Island the ernments that this inflation • to 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 13 page The value of such Alaska activi¬ contrast reach Alaska Beckons: "Go North place. stocks could to 1959 promises of continued year the ogy] in higher people attracted to this region by the above enterprises. considerably of] living propor-; Tiohs under the stimulus of further „ most European by very prices before a 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. at than Government Bond other sort of inflation. of close inventive are bull market. cordingly. amount is of lower somewhat disturbing. Most im¬ perhaps is the inflation American business., on the New that the end of the movement of 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 at may seem limits 50-50] split some - about been reached. But the probabilities are that our granclchil- both favorable and adverse effects than 30% on In it 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 more 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 up the has been Disturbing Outlook Factors of $5,- of ditions at the time. suggests Consumer increase rate of 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 to for not or 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 a 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 at the of some it 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 be 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/ to of their currency to date. New West. Thursday, January 8, 1959 .. nations of , Investment Outlook . into are opportunity motion of this resources of great However,: eagerly awaiting the ' to 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 to 103.400,000 free a over attached and of none cover Alaska and is In limit Alaska's along acres or copper, addition, and such rrjles gold in early plans. State of Minerals nickel, rower The power large as grade limestone, ^ i>n+»ntiai roiei at ^ , potentials _ of rivers northern far tin coking mercury, nonmetallics coal and chemical of of pres¬ valuable more installation aluminum the coast production freight. freight few chiefly dition. we high-priced Seasonal and unbalanced fully homes in north — in the 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 to , . Alaska that is likely development values 50 years. Is it any -Alaskans have next- wonder that thrilled are •prospects to in. the With their their and Better Job a direct more interest not everyone is similarly im- should leases to do far a better the more cause On its remote Federal agencies. grant the with State such im¬ sales of out of lands cattle and for townsites, granting of held be intact com¬ herds wilderness as management.of game attractions for big game hunters, and the establishment of as 'State parks in highly scenic stimulate the to areas tourist trade. is to establish of gram broad a available sources •included ;It in takes pro- exploration,! inventory and. evaluation of the its time natural land on land and re¬ to grant be areas. to do a .satisfactory job of this kind in a .^State which ' bears, to the constitute mills, readily accessi¬ a timber of sawmills for the features of Alaska The plans. national Rail ment visitor, possibilities for smooth the may meet the economic prob- to the State is certain to during encounter and persons support not only the two large beneficial whole the to It would lessen America. mail to within for high wages our of 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 in iocal Aisaka „el. $91P42 totaled average as high. als0 are canita tax in 1957 to compared an of $72 80 for the 48 states I^efed popultLn industry and exploration and production °„ and newsprint or mills associated wood , pulp number of addi¬ a est sawmills and ply¬ Sustained yield for- plants. will management insure permanency of these timber commercial confined salmon, 1957 $75 using have to The a and supported whose amounted now halibut long industry million. fisheries, to output value of industry a in over can greatly extended to include be more varieties of fish. With the growing attention as a 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 E. associated Kuehner has become with Laird, Bissell & Meeds, 120 Broadway, New York City, members of the New York Thp ye 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^ be able fields to of see grain, mountain grazing of highways, railroads, and river steamer routes; all of these where country. today only seem- search 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 in the western some formative states in years their g i s t 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 c. troublesome—50 to 75 nationwide _ . _ . . , later, years _ economist and virgin r e wonderful a Kuehne» d representative. Mr. Kuehner was formerly in the re- a of expanse It presents E. stock Exchange as _ _ . Safcffuard Afiamst Boom and Bust T. I. _ debentures" due Jan. 1979 1, is 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 as tell us million that acres, , as over one-fourth of the entire land area, geological formations favor- have able for oil. Federal on that w]jj government presently states lands 33 some ,• p , 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 to there tJ . ,. _ , opera- toring. The company and its as^ inducements for organizations in the United States and . The North Country is no long- 4 , 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 . related 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. c. 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 it £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. Go 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 of 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.. be More accessible of 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. in the corn- are State. new have as the following 'contributors as 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 A Alaska in couldn't concerned it. by pressed job of resource development than huge land vol- active mountains, fjords and glaciers." How- canoes, ever, will1 be .7 of on-the-ground knowledge of conditions Alaskans able showplaee of the earth abundance and magnifi- its cence greater be equally Hanns become the with Should Do connection with continental United are Horace a«> to 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 to 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 in services can responsible are anywhere United States. They have all of the usual public facilities and the a that spring and south apron have to commodities pulp mills Columbia British of size the Kitimal at 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 Pn L.vy Congress r for will be mining outstanding promise are iron ore, prospectively holdings. .. development most of stressed seaward 25,000 gold to only v the to 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. of State than more will the 57,000.000. strings these it to output in 25 of restrictive. The granted very will.* able grant period a The grant has few years. future new of public land in acres sizable tracts of as 35 due to 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- is 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 to most from small to above that as if must Alaska's medium sized be four cities In conclusion it must be stated emphatically that Alaska is 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 , 36 » (132) The Commercial and Financial Chronicle succeeded Continued from page 15 Mr. News About Banks and Bankers in Presidents of Empire Trust Com¬ New pany, nounced it York, Jan. on 7 was C. Brunie, President. Mr. Winter, who has been with Empire Trust since 1923, will Mr. since Total resources is He 1955. Cash with fy due banks U. S. irojtn The Lafayette YORK NEW Govt, 30/58 Alfred $ $ 208.358,084 M 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 M. h y, p of 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. In 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 S. in all Vice-President also served Dry Dock's branch i s its in the THE bank's Delancey Avenue C offices 77,351,067 1,700,088 resources- Cash S 8.329,981,739 7,830,598,095 due and banks- Govt, S. 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 V. B. 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. S. $ $ 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 V. S 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 . t . IIANOVEU BANK. NEW Dec. 31, '58 resources-. Deposits Cash and from U. S. curity 1.797,993.393 1.713.003, 349 1,575,338,408 493.034,368 500.104,802 _ se¬ j 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 U. S. 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. s 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, N. Y. Dec. 31,'5H Sept. 30 ,'58 843,014.130 40,310,874 842,040. 032 39.391, 798 8,249,000 8,351.489 U. S. 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 U. S. jity Govt, 10,828,907 17,359 980 15,251,410 13,527, 903 of New together with compliance of the respective corporations providing Merger for the of merger of Bank and The weekly added it is doubtful there will operations. The be Industry overnight spurt in an buildup of steel production will be gradual, "The Iron Age" declared. The reason for this is that the mills hesitate to 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 Bank of Herkimer Trust & adjust," this trade authority stated. ' in 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 of , 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 of 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 in year car 1959 require in the market definitely buying, encouraged by the tenor "Ward's" added somewhat appears the are but optimistic that and of 6,000,000 a 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 CO 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 OF WESTCHESTER Dec. 1,308,242 Totnl 31/58 -..w— — Dec. 31/57 ' $ ' 106,119,188 resources.— Savings of 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 of its 100th anniver¬ year. formally mark the opening the bank's centennial President snipped more stretched a across entrance year, John Cash- symbolic ribbon the bank's DeKalb at Street. He 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 a 1 in small a room post office building then tague Street. the end business, 91 of the in on Mon¬ first day's more 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 of paid over dividend. It at an payment 3Y4%, since the the and total bank The National was a annual brought to dividends opened N. the Greater Newark 22 office will be known port Office." A lease has at the southwest and Terminal been York square feet of Marsh corner Streets in Newark. The bank has applied to the in C. Oct. under direction of Johnson, President, 25, 1946, to June 23, 1958, when he became Chairman the Board of Trustees and Chief Executive Officer, and was There been completed. granted, work the on new will be undertaken at facility once. The National State Bank office in the Airport an Adminsitration Building. This of¬ fice, in which specializes opened was in whereas, the serving new 1953, air traffic, facility is ex¬ pected to service seaborne traffic. ❖ ❖ George E. Vincent, an 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 S. 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 be explosive contract talks between Steelworkers. pact will not be reached before the old But it does not mean Chances there will be a 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 or "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 1 million trucks in trucks' 1958). (compared Machine tool with sales record a 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 to 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 up and examination The bank's greatest growth has place It 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 at This year added. Port PATERSON, N. J. taken of the "Sea¬ signed with the Port of New Authority lor 25,000 The area. as 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. of plans banking office in its Bank announced establish 1859. from State J., to 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 Trust filed State 13,434,461 discounts and YORK S Total into Y., York York been York 16,212,401 / <V Surplus At THE N. New partment. ..... — Square" THE NEW YORK TRU ST CO., NEW YORK Total of 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 8 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 of 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 U. rity holdings—^ Total Undivided Dee. 31/58 ... and S. ... NEW CO., 4 . secu¬ Undivided profits discounts security Cash and due from , Govt, 5,700.000 0.001,021 * Cash and due from V. & 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, S. holdings June 30/58 130,795,394 Govt, security vided $ Total 31/58 $ banks YORK CORP. 121.200,971 holdings OF 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- N. 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 of manager opening cember, 1957, until erations an n c e Seventh Avenue new from as 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 A YORK NEW Continued Mr. Cashier of as Andrews will have responsibility for bank¬ ing resources Loans & discounts- immediately. effective Total Deposits Vice-Presi¬ as M. the Dec. 31/58 Sept. 30/58 of Frank Vice-Presidents. # Trustees and Vice-Presidents; will $ The by 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¬ OF Dec. 31/58 Sept. Deposits tinue in the banking BANK an¬ Henry by NATIONAL Presidency . Livesey. Brooklyn, GRACE the . capacity, and 2,058,000 tons a 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) 37 ) 147,633,670 week the capacity based with actual utilization on of production Jan. 1, of 1958 76.2% several annual like week a month the rate was tion *Index of production is based on 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. of there is draw a to such line Industry Scheduling January 1959 Output between well. you must the more Unless you can control will not have it for the necessary work of servicing your most productive and deserv¬ ing customers. time Many a investment I running man business when mean when a 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 of cars and trucks decrease of 3,820 units below amounted to 111,299 units, or a 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, or just want someone with a will I hours has know say to out that bogged is same small of true spend each limited servicing You The salesman and week's IMPORTANT. working time to number of accounts. a 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 Lumber a 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 in 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 if wasters or accounts wish are service time out proportion to the amount of of com¬ missions their business creates. am not discouraging small just those that waste counts, plan, check-up. study customer's accounts list He of 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 a 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. I charged the though he I refuse calls to occasionally, me be lengthy more drawn into discussions any of his securities, the status of the bond market latest flation. to the stock market, or the he has read on in¬ or article He sell once five gave me an order bonds and amounted $2 million. This is it but is to our com¬ $12.50, yet extreme an factual and I case believe it illustrates that it is wise to elimi¬ nate well as as pursue. the In securities accumulate also business large a you number of 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 It humane to your to the etc. personal confidant a are worthwhile very and act to keep a door open fellowman and to listen trials and tribulations of 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 a this in 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 of sort this Every of 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 on 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 in week, according to estimates by trade from the 1957 level. New York City observers, was unchanged f 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. an preceding week, Dec. 20, 1958, a decrease of 3% 7% 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 it 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 it that he might be a congeni¬ me that rhow. on looked I 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 in he 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 to more about my time. The longest talkers are usu¬ his was completed was mission Post-Christmas Trade Volume Noticeably Over Year Ago the I 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. to 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 an point where a 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% as customer list grows, the demands upon your time will as Loadings Dropped 24.3% Under Preceding Week were or 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 ^ I me. value of the time devoted to this As 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 he 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 an 140,742,570 net tons. the For torts compared net before, of 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 & is Ohio now — with George W. Westheimer Co., Third National Bank Bldg. 38 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 1 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 29 in Now 640,660 Allied selling stockholders. cago, 111. ■ Cruttenden, ■ Podesta Associated Bowling Centers, Co., & vy / 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 shares new for each share held (for 15-day a 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¬ to 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 be named by 10 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 25 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¬ K> 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 of debentures due of Jan. 6% sub¬ 1969 1, 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. 5% Co. debentures notes tures five due to In 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. be offered in 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 50 to be shares offered of by amendment. in common units , of stock. $500 of 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 of 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 be four offered to shares current held; unsubscribed creditors part of claims, at the rate of of claims in shares 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 2 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. 1, Public A 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. on 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 be 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 of 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 of the class "A" shares 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 of 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 of General seven Nuclear Engineering stock for each Commerce Oil Engineering Corp., shares and 3.4302 shares of Combus¬ 10 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. & . in 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. shares [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 of 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 or 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 of 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 r Registration . ★ INDICATES . Securities . Refining Corp. shares stock, of 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 39 (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. 28 mon stock. (letter of notification) Price—At investment. ceeds—For Lake 900,000 shares per of 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. 13 Chicago 90, 111; ' at-Boom 23 1820, \72 10:30 up to West filed a.m. Adams St., \ - Co. maximum a of New York, Inc. of $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. on 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% of 25-year Subordinated (Bids 6:30 a m. psr> $15:000;000 ... (. —For retirement of 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 - * ' " : 6c (The First Boston Corp. and - 40.000 (Bids $2QG,000 Borman Food of debentures sharesrC. common -. . —*. (Equitable Securities v.,; Corp. ) Indiana Vita shares Products, Inc. January 13 (Tuesday) . .. !" (Bids 10:30 a.m. CST > $20,000,000 First National Batik & Trust Co., Tulsa, *-;., v (Offering to - 11 EST.) a.m. Bonds $20,000,000 (Thursday) Corp.— Common (Offering . Common Hentz & to Corp. stockholders—underwriten Robinson, and Humphrey by 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 LI 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 to > . stockholders—underwritten Resistof 1 ex Corp. 1?~' _ (Baehe « byBlyth 6c Co., 74,511'shares:;", ;' Eiworthy:Co.) and ■ ______ Co.i A January 14 •!-_•. lu j _Common General Telephone Co. of Florida.. Stone Webster & & D. be February 2 (Monday) Fuller Wood;"Gundy* & & Co.) debentures and shares (Dean. Witter & Smith and Co. (Wednesday) February 4 Southern Inc.) ..Common Co (Bids 11 a.m. EST) between $40,000,000 and $45,000,000 6c Co.) Public Service Co. of $2,000,000 a January 15 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 J v k' Corp.. Alabama Common Kansas Power & (The * & Co. shares 1.942.570 t Boston 275,000 to . Lehman ; "■ Morgan & Co.) H. BlairCo. ana Stern, Frank, Gulf Common Meyer & Foxi (Bias ( D. noon Fuller Seiberling Rubber Co. (Offering to Dillon, to invited) be to be $20,000,000 $803,000 ].• to be 106,841 (Tuesday) invited) Bonds Co $25,000,000 (Thursday) Bonds invited) by 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 of used consumer for working finance Bell Power invited) Telephone $18,000,000 Co Debentures $40,000,000 Co., Denver, Colo., stock. Price—At Underwriter on a balance — ($10 to be 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 5 (letter of notification) 5,000 shares of class B special stock to be offered for subscription by employees Thomas A. 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 or and this issuer. cessor Finance Bonds Co (Bids to be business,. and capital. ic Dorcheat Drilling; & Development Corp.' Dec. 30 (letter of notification) 10,000 shares of N. Bonds be Underwriter—None. per of Federated. (Bids to be Invited) / Ave., Olympia, Wash. for the $5,000,000 Postponed Financing Michigan shares 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 shares ..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) Co (Bids ceeds Nov. ! _* Union Securities & $7,000,000 $10,000,000 150,000 Co.) stockholders—to January 20 invited) Bonds EST) 6c be (Monday) Industro Transistor Corp (S. $50,000,000 $900,000 " —" States Utilities Co . to 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 A .Debenture* by United Pacific Aluminum Corp..:. (D. , " 87,443,100 Surrey Oil & Gas Corp. (Peter shafts . _ stockholders—underwritten invited) be May 28 Common Corp.) Smith-Corona Marchant, Inc (Offering . Light Co. First Proceeds—For investment. Sales Corp., St. Research — Louis. of (Wednesday) Bonds (Bids (Offering to stockholders—underwritten by Carl M. Loeb, Rhoades Bonds $25,000,000 Co (Bids ....Common ^ Securities Power - • to April 2 Champion Paper & Fibre Co.—_h_—-Debentures Co.) be invited) Illinois Bell Telephone Co.... ~ Common (Berry & Co.) 6c to 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 to Blossman Hydratane Gas, (S. Webber, Jackson & Curtis; Corp. and Mitchmr., Jones &c EST) Co 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 by shares 35,298 Corp.) January 27 ..........Debentures Webber. Jackson & ,v._ *>•/.. Common stockholders—underwritten to 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 ■ an 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 v (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 19 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 ... 11 (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.) shares 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 Co (Bids to be invited) $110,000,000 Debentures Continued on page 40 40 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 7 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 7 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 on common ployees Corp., on on 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 to to basis of one warrant to purchase one-eighth share of Grain Elevator stock for each share of National Alfalfa held common Price—$2 Office — on per 927 Nov. 17, 1958; rights to expire Dec. 31. Proceeds—To selling stockholder. share. Market Street, Wilmington, Del. Under¬ writer—None. • 29 ./ offering.] of convertible common Address—P. stock preference held O. on or 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, N. Y. to be of record at 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 to honor Carte Blanche cards. Underwriter — agree Carl M. Loeb, Rhoades & Co., New York. Hinsdale Dec. 29 filed shares Raceway, Inc., Hinsdale, N. H. capital trust certificates evidencing 1,000,- of 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 1, & 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 up to 11 a.m. (EST) Jan. 21. on 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¬ 'J 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. 19 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 a phone plant. Office—145 North Main St.. Monroe. N. Y. Underwriter—None. 18 filed 23, 116,667 shares corporate 26 Nov. stock Dec. of Jan. as construction j Oct. 22 • held filed 5 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¬ to by 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 11 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. of 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; share 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 shares by general Oct. 22 one on Price—$6 New York 15, N. Y. 10 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, of current subscription shares Nov. & Webster Securities Corp.; Kuhn, Loeb & Co. and Salomon Bros. & Hutzler (joint¬ ly); Lehman Brothers and Equitable Securities Corp. — scribe (1/19) first of 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 19 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) to New York (par #1) Proceeds—To the Attorney General of the United State* par) • Washington, D. C. Underwriter—None. Statement 11 (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» to 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 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 15 . nines and in payment of indebtedness. \riz. Underwriter—None. v development of oil and gas properties. Office—407 University Bldg., Denver, Colo. Underwriter—None. 39 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 be Kaman Aircraft Corp., Dec. 15 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 fn development Price—To Price—$10 part for the ex¬ and operation oi be 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 be of¬ can Envelope change Co. West of contingent is Carrollton, Ohio. acceptance on by all The ex¬ of 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 to 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) on the (X 'None. one share of common Box "■'•XV'X'-. ". 44, " Windsor, ■" Vt. Underwriter— '■'/ ■ v. . 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 of one new share 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 B 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. 9 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 O. K. Rubber, Inc., and O. K. Ko-op Rubber Welding System, on an alternative basis. Proceeds—Of the public offering, will be used for -additional working capital and/or to 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 15 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 a 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 22 $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 be —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 on (par $1) for each 20 shares of class A stock pur¬ Price—At par. Proceeds—To develop ski area. Address—P. Calif. shares $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 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. u Offices—Wilmington, Del., Corp., Miami, Underwriters Webster Securities Corp. Sept. 29 filed 350,000 shares of common stock. Price—$1 share. Proceeds — Foi*tfi<? acquisition of properties under option and for various geological expenses, test drilling, purchase of equipment, and other similar pur¬ E. bank improvement Eastman per & Share short-term and writer—To be determined by competitive bidding. Prob¬ able bidders: Halsey, Stuart & Co. Inc.; Lehman Bros.; Merrill Lynch, Pierce, Fenner & Smith, and Stone & Price—$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¬ an 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). an be (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. to 41 (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¬ of 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 by purchase of policies purchase Continued on of Co. prior page 42 42 The Commercial and Financial Chronicle (138) Continued to July from page 41 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 to writer—None. Life Insurance Fort Shares in market. —For investment. St., N. W., Washington 7, D. C. Investment Advisor—In¬ vestment Fund Management Corp. \ of $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 a 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. by 1 shares of 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 so 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. - 1" 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. 23 filed 106,841 shares of common stock to be stockholders on the basis of one new offered to common share each for (1/19) lour shares held on 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. 22 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. i 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. 18 (EST) St., New York, N. Y. Arenas filed on • & 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. To Office—Tiffin, Ohio. • Vanadium-Alloys Steel Co. 29 (letter of — 1 notification) 1,345 shares employees. of 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 1 100,000shares 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. 12 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. ' v filed 10 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. 4 ; i 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 of payable and increase working capital. Brattleboro, Vt. Underwriter—None. on • 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) 25 -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 of 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 to 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 share 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 ;■ in invested filed $1,500,000 of participating interests nental V of com¬ shares 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 • of 8 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, a 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 • 17 —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 be • related Exchange. to 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 on To Jesse C. 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. on Co., Tulsa, Okla. ... , reported was that 13 to the Mississippi Power Co. ■ Dec. stockholders approve a 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) 18 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 to Concord Ltd. debenture. per to members Price—$375 Proceeds this of common To club and — oi share and $1,000 develop and property Underwriter—None. certain facilities. build per ^ Barney & Co. r Gulf Power Co. Dec. 10 it Dec. it 10 Power Co. that the construction sell tration—Planned for April 3. 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. 31 New ^ec. sell 1 it System, Inc. reported that the company was additional • common stock in , 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 an issue of between $20,000- possibly be placed on 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 on shares Underwriters—To held. the basis of one new be by Equitable Gas Co. July 18 it was announced that the in the year to issue and sell ably preferred stock, to shares 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 1, Texas. 15 it each was sale the Northern Dec. stock shares 10 held. increase capital the basis of on one will new per share. surplus. Underwrit¬ Inc. and First Southwest Price—$26 and plans issuance of ^ be bidders: Co. determined Probable Halsey, Stuart & Co. Inc.; Morgan Stanley & Bids—Had ceived been by competitive bidding. tentatively scheduled to be 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 a 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 & 12 (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. of (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. 8 it Dec. of National the Inc. company Bank of Boston, (1/20) it 16 record Indiana, that announced was 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 on 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. it tional shares of share for' each 12 determined Indiana Public Service Co. was Rockland-Atlas ic Eastern? Utilities Associates 15 it Pacific National Bank of San Francisco program. Mercantile National , 29 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. of Dillon, Power it ietermined Proceeds—To repay outstanding bank loans. Underwriter —To be determined by competitive bidding. Probable bidders: 14 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 ■. it from of American Kansas Feb. : Gas soon 12 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 an 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, on —$20 per share. March $30,000,000 of bonds the on 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 on 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. A. 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— it 1 and sell 1958, shares 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 be tive Dec. an and Aug. 20 it American Natural Gas Co. Underwriter—To program. Bell ments, etc. company Bids—Expected to be it $50,000,000 1959 April 30. on. 24 of 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 i (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 to 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 / ; of 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 on shares 000 . * June KB. on 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 a it 10 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 of 100,000 shares of additional about -Organizations, it 25 Bank - Bank & Trust (1/13K- Nov. 43 (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 on page 44 44 ,♦ 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 • on 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 11 with rests the New Research Petroleum Brothers, Society. Smith, Fund Underwriters & Barney of May — Co. Staie Lehman and9 Merrill Pierce, Fenner & Smith, all of New York. derwriter — Probable bidders: The Lynch, Offering To 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 at 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 a in "other income," principally from oil and gas revenues. Higher interstate rates and increases in intrastate rates long a the haul 600 some carrier, miles, Class I or averaging about double also and average fairly heavy density. Steam were now has nated been and 30 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 a cut final net income for the first 10 months :to $2.59 a common share as 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 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 as well as reve¬ addition, U. P. has vestment a large in¬ portfolio which has been of source a most income. One of stock. Also, Pacific source its Fruit 50% common interest Express is 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 of There also the like was an 1957 month. increase of 000 as compared with $81,995,000. Equipment debt maturities amount the car¬ area in was industry much in 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 of 1.958 which limited of private truck haul¬ Woolrych, Currier (Special to The financial Chronicle) LOS Union Pacific this year income M. to tlie needs, and set lieved its known cash new definitely it be¬ use long-term a least part of such funds. Word around was nouncement of would ably be today. But it forthcoming late recalled that on the last proved to be that Is forego the occasion, such week. Hie be avert to circles some probably will until announcement have closed aim, of for other in tlie would course, disturbance any the or guessing bit premature. in Treasury markets way such a reasoned the an¬ was was It that its program prob¬ to 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 to felt only gan & factor. a 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 of bids debentures Utilities million will of Commonwealth Chicago for will million $20 and be and course. By waiting until late Friday or Saturday morning, to set forth its and terms of 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 of and priced to a 4%% afford a 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 It reported as on was indicated that the coupon working principal executive and located are its for for 1510 at own account as 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 shares (without value) par of nominal at the rate of share for new record Jan. (EST) on The 6, will warrants 20 one held shares 1959. of company it p.m. Jan. 26. offering by a is being group of under¬ under¬ Corp. and Drexel & Co. including construction tures and repayment of expendi¬ the com¬ pany's $10,000,000 temporary bank loans incurred in 1958 to 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 of 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 of (par $2) class B cludes the class and stock 20,000 common A common stock 150,113 shares of (par $2). This ex¬ shares of class B stock exercise to of stock purchase 000 shares of be class issued B upon comnfon warrants and class A 20,- common stock into, which the class B com¬ stock is exchangeable mencing Jan. 2, 1961. mon With for tures was likewise to and funds used for corporate purposes of Meadow of 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 a 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. of , program stock common the business of buying and outstanding common stock the right to subscribe at $50 per share, the definitely chart A per be preferred. new licly offered 50,000 shares of class added of 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 to at for issue is now is Treasury make of look to 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 At 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 in territory served also has added to the its important holdings is 733,940 shares of Illinois Central to New industries in the and nues. In affected less than the average dur¬ of in weeks plans financing ment, October, off in; recent Treasury's bit a 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 a some factors in offsetting a drop of 6.3% in carloadings. For the 10 months less of around $3.25 a common share, off to seem Corp. Stock Offered at $6 seemingly would fit well into to 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 & % or Offering—Not reported that the company plans the sale of $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 be 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 be 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 it be run To Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Of¬ fering—Has been postponed. Bids had been expected about Sept. 30, 1958. Dec. will may of Bell it 2 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 it 24 . 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, & is Ore.—Thomas now affiliated Co.,. Inc., Pacific A. 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 on (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 (M gas gas sales V Intercity (M therms) general freight (in tons) carriers AMERICAN ZINC Dec. 26 Dec. 26 (bbls.) at " transported Total D. construction S. construction State and „ municipal Federal $273,226,000 Jan. l —Jan. 1 —Jan. l 61,992,000 211,234,000 147,107,000 —Jan. l 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. of 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 1 -Dec. 29 Pig iron (per gross ton) —; —... 13,017,000 . 'l:-;;'f'c/. ... ■/);;;185 29 $66.41 $39.83 6.196c • 294 $66.41 $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 28.600c 28.600c 26.575c 31 26.975c 27.025c 27.725c 22.100c 31 13.000c 13.000c 13.000c 13.000c Dec. 31 12.800c 12.800c 12.800c 12.800c 12.000c 12.000c 10.500c 11.500c 11.500c 10.000c Dec. Dec. 4 — — at — Total Dec. 31 12.000c Dec. 31 11.500c (New York) at ' -— Dec. 31 24.700c 24.700c 24.700c 26.000c Dec. 31 98.375c 99.000c 99.375c 91.750c .Jan. 6 85.96 85.53 88.38 93.63 Jan. 6 90.20 90.20 90.48 93.97 .Jan. 6 94.56 94.56 95.01 101.31 — Aa . Railroad Group Public Utilities Group. Industrials Group. Jan. 6 93.08 93.23 93.23 97.94 Jan. 6 89.64 89.78 90.06 95.01 6 84.17 84.04 84.30 83.15 .Jan. 6 88.40 88.27 88.54 91.19 Jan. 6 90.06 90.20 90.34 94.56 Jan. 6 92.35 92.35 92.64 96.38 — MOODY'S BOND YIELD ... Jan. Total Jan. Railroad Group . 6 3.83 3.88 3.57 3.04 6 4.40 4.40 4.38 4.14 6 4.10 4.10 4.07 3.67 6 4.20 4.19 4.19 3.88 , Orders received (tons-) Production (tons) ; liabilities liabilities UNITED . ; STATES—DUN INC.—Month I . ... (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 97 99 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. 6 4.25 4.25 4.23 3.98 Gas-fired boiler shipments (units)—.—,—— Domestic gas range shipments (units)— Jan. 6 389.4 389.4 392.5 392.3 * shipments (units)-— (units) water heater shipments Gas ERNORS <&) 255,176 (fi) 295,919 259,412 286,263 307,873 —Dec. 27 .Dec. 27 fa) 91 88 45 Dec. 27 Dec. 27 ' 217,959 334,083 82,60o 24,700 14,700 a) 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) OF — —_——- 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 U. IN vehicles- of 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¬ . I Total Dec 13 .Dec 13 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. __ l (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 127.2 127.2 127.0 125.8 30 . . . 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 38 98 98 $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 U. S. BOARD—Month — of NONFARM IN 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): of 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) of (DEPT. .Dec. 13 —; Nov.: of adjusted Seasonally MANUFACTURERS' INVENTORIES AND SALES .Dec. 13 Short sales. RESERVE FEDERAL THE OF 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 6 .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 STEEL OF 4.54 in which registered- sales 94,250,000 , INSTITUTE 4.53 sales Short 459,495,000 of 6 — Customers' short 353,638,000 16,509,000 customers—• ultimate to —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 OF 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 of 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 — on ..." —- O 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 6 . Transactions of specialists in stocks . ..Jan. MOODY'S COMMODITY INDEX = . —Jan. Baa AVERAGE y. 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. I Baa - - Bituminous coal and U. S. Government Bonds 5,599,392 1,208,828,000 1,254,960,000 1,223,632,Q00 number number Wholesale MOODY'S BOND PRICES DAM.Y AVERAGES: Average corporate 5,295,654 between : Manufacturers' t (primary pig. 99%) at tin shipped number Retail at (East St. Louis) Straits number Commercial QUOTATIONS): at Lead (New and . Construction refinery 5,728,180 ■ 203 $39.83 127,200 15,861,000 249,314,000 credits Manufacturing number Electrolytic copper— Domestic warehouse Total 11.692,000 5.967c 89,600 BUSINESS FAILURES—DUN & BRADSTREET, INC.—Month of November: 158 6.196c „ 11,100 120,200 OUT¬ shipments Wholesale 6.196c Dec. 29 )ec. — Scrap steel (per gross ton) J 5.278,100 7,800 29: ; Construction — (E. & M. J. 5.843,000 272,000 * IRON AGE COMPOSITE PRICES:,'*r Finished steel (per lb.) METAL PRICES 7,565,000 558,000 -f 000 kwh.)—__ Electric output (in *9,030,000 450,000 IND$X—FEDERAL RESERVE AVERAGE SYSTEM—-1947-49 5.895,000 5.416,400 4.952,800 9,900 65,174 J ACCEPTANCES 163,757.000 27 5,050,200 5,393,200 FEDERAL RESERVE BANK YORK—As $259,236,000 27 Dec. Dec. — Pennsylvania anthracite (tons)— 3,523,300 V 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 OF 185,672,000 Year Month November: ' $307,597,000 121,925,000 of that date:] Previous 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 Dec. 26 in 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 of output (bbls.)— output (bbls.) Distillate fuel Month Week month available. month ended Jan. II gallons each) 42 or Natural AMERICAN PETROLEUM INSTITUTE: Crude oil and condensate output—daily average Crude or Previous 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 OF 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 46 The Commercial and Financial Clironicle (142) New GNP Record and •*;•' • EITHER PROSPECTUS Mutual Funds FREE ON REQUEST A J Incorporated ! Investors j ESTABLISH CD 1925 Institutional Fund Share Buying on A mutual fund investing in Increase 30 | list of securities selected for J possible long-term growth of 1 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 1 A mutual fund I list I income. investing in for of securities a current L 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 J to $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 of $16.6 million of assets of Man¬ hattan Bond Fund, Inc. York 5, N. Y. Total assets net of a 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 in vances additional wage Qf 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 as the of December 31, 1958 and of credit could expansion of busi¬ cost further cents in source National of Jr., Securities curities Series mutual of 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 a- year. . . . 1957." record is all the more 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 related economic develop¬ Assets of More than 300 were offset areas. "The by r 5 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 in Christopher Adds to Staff bonds common and cash preferred stocks." stocks, 27.1% and 9.4% in 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 in 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 an 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. v 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 of $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 a 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 of about up will be reflected in 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 by both parties. Military spending is also expected to rise. Walter to President of Company and ; for prospects integrated state- v m facturers,- producers of petroleum products,: food items, shoes and leather, tobacco, chemicals, drugs, Wellington Fund Wellington These two total L, The Equity mutual $840,000,000, owned bv on have exceed more 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% * in 1958 levels *' r 1 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-* on the ness recovery 1959i to continue during although slower rate at than a 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 ... of 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 be 44 Wall Simonson, mutual a Calvin distributed Inc. also suffered The Tiie 52 share Diversified Investment Fund, Inc. on Nov. 30 Annual Inc., J. 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 in 20% , investment in the growth Fund, in fund Shares of 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 in assets member companies' Fiduciary fund is available from your 125 1956. June cacti the of 70.3% .representing A prospectus on Henry by Thursday, January 8, 1959 . by Simonson-. ,v"';• corporate profits over 1958 were among the predictions made Dec. investment f a survey rai«e a .. high in 1959 ofutilities and 40 railroads. Mr. Gross National Simonson announced at the meet-.. from and President shareholder recent A | | I 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 an a 7% in- all-time He 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- as :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 in anticipated to 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 by 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 j N. Sims Organ With L D. Sherman Go. ness," this ... i i j • . Morgan also emphasized that orjservative investors should con¬ investment pV forgotten tnat i 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 u 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 in to to under lines for nf lend- the usual of fmsiness course Household Finance is largest or On Sept. 30, pany had a 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% of 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 of $125,83o,000, and net to $23,933,000. This 13th consecutive year of increase ror operating revenues and the 12th such for net income. In the company in revenues months ended $885,000 the nine of 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; j „ Baruch's * contain is << 66,000 have from acres which natives Retail Division. been DIVIDEND NOTICES AMERICAN CAN COMPANY look" at valuable rock and i up+wPPn 900 ftflO t- ____ to ii „ Ill the case Say. XV,- Of the latter eventuality, it would depend on large the increase was. But how thing one Aggregates ment of V, gold „ Of an is certain, increasp announce- in the .1 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 . of 1957, Natomas' the jn 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 be paid to stockholders of close of business January .23, 1959. There will be no further payments on tered New Regls- Debentures. York4 N. Y.. January* 7; 1959 - LONG ISLAND LIGHTING COMPANY QUARTERLY Natomas DIVIDEND J 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 a cents per holders of record business on the close of at 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 A dividend of 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, ii Manhattan n0 marily interested in long-term has further expanded shipping empire through the acquisition of a 3SL% interest in Natomas its Pacific Far 12 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 An The Chase Manhattan Bank has de¬ clared transfer January 15, 1959books will not be closed in connection with the pay¬ ment of cents share was declared payable January 9, 1959, to stock' holders of record of business at the close December 4, 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. At " cific Cement and At 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 e As this years. man¬ of For b 1 j 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~ a, partner of The Putnam on one', thing,* this since nd a 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 B 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. on New! York ana¬ Sests full year profits 5 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 a mum shareholders. martpf mintpra funded debt of $10.9 million. William M. Natomas, sell- — a . 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¬ as stocks and ferred fixed between programs mon N. Sims Organ, formerly Sales „ ■I Mr. all prospective buyers as 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 47 John G. Grienburoh Broadway Treasurer. New York 6, N. Y. - 48 The Commercial and Financial Chronicle .(144) . Thursday, January 8, 1959 .. would Tike BUSINESS BUZZ * yields to have would that tax any from come foreign investment risks, but .fcl'-V: on.. Behind-the-Seen® Interpretation* (rem the Nation's Capital i; One of the tax reasons provisions. is the gov¬ legal dol¬ It is seriously in lar it can get. l/li X liberalize the ernment wants every V#1II /■ 13/1 dfJl I I'M* ; to V • so far-ine government is not ready ' T 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 in Despite the fact that the 86th There is will there a Speaker House both from than along strictly party lines of Democrats versus good middle servatives, parcel there for Democrats have Howard Smith, W. of reach proposed House for consideration. may some not may or votes influence and Rule called United enough have amend to there However, rule. little liberal getting bloc its members own offset to 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 98 members. existing rule Thus 22, ture. Advocates the rule want of a 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 is non-South¬ there are 13 new Democrats ern reason elected, to and big 48 additional spending the non- program Congress in 1958 will continue to be felt in the econ¬ omy of voting to invoke cloture. the of Nation the for the current statements from fiscal be smashed in are expected some fields, and new heaks scaled in others. There is nothing imme¬ diately urgent agenda at this it be sometime traditional after the "When , Lincoln .* Birthdav 000 the people Sought than 12,250-, receiving "social more now There 7%. battles are shaping billion legislative many Congress. The The Foundation for — Education, in up 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 in Eisenhower are and They will be willing to launch it as a modest very statehood is There program. certain is no for to 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 like time as they maritime on, tax more trolled effect from this in 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. of Some Democrats, Paul be surprised like the lib¬ Senators Illinois and Hubert H. Humphrey of Minne¬ sota, \^ant to either cut or totally Douglas of advocating are more that men invest American more more and business¬ and more 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 be 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 t a e port 5: by 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 J School more an (cloth), $4.75. Streamlining tice-Hall, Inc., Englewood Cliffs, N. J. (cloth). con¬ lovely plain, unvarnished fact non-election there would be The a Notre Dame Press, Notre D&met Ind. has the greatest appropriation bills and around to collect tax in — University of — Workload—Ray Josephs—Pren¬ that Congress always passes ever country. came lump a the It is deductions and the tax no collector in in the that Palyi powerful Communists. in this country have had ister of 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 more health the that reason is to They Managed Money at the Crossroads . Alaska statehood has greatly Of year get It would look quite innocent to eliminate Federal Health Plan the legislative time. Actually, on 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 in his on already beating the drums for the 86th Congress to provide a Federal health plan for the social security pro¬ Washington h to Capitol Hill for the next several increase of about an 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 of 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 more strict?, just year. The confident are bit a 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 a 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 membership to shut off debate ©r the departments. Under the present of been is time that all Democrats two-thirds point to controlled Democratic the the (paper) $1. New Dealers of "spendingest" Administration in Representative Clarence Brown, a be Eisenhower has Republican of Ohio, and Repre¬ Johnson to year like fact that the try. Certainly it like Republicans have election peacetime history the conservative coalition of Demo¬ crats' and almost is It will Administration enlarged with Rules Committee States the' big the to House the 1960. in 1960, they appears chance of the House no or In filibuster the Presidential the raised to $300 billion. * 22, East 12 New York 16, N. Y. Freeman, January against it. are certain that the debt limit of the Republicans, Association, 36th Street, many win to election The Senate liberal bloc, which also includes General Motors Cor¬ Unions—Study—American Bankers Eisen¬ President by 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 of floor the Safety—Charles A* new There the letting Contributions Design Highway Chavne House the in is another question. keep hower. Conserva¬ policemap ' for aisles tlie to Congress will seek spending for the 1960 fiscal year, starting July 1, with¬ in the budget recommendations Virginia, serves as traffic Automotive the Democratic on going to be interesting to the to House Rules Com¬ powerful commit¬ by Representative headed bills Senate if the and immediate need to curb big the watch from the sidelines and see same power of the mittee. This tive of and It is wing in the House feels that there is a great The busters. of some Another Hike in Debt Limit fili¬ stituents to bring an end to tee, side mandate from their con¬ a or 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 to . in hold to 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 of - 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¬ of FINANCIAL best long range guess is that it will not run "hog wild." The reason is the perhaps years, be¬ scraps more of the most liberal in many one indication every be J.C.BOOPLEY Congress shapes up on paper as single word—politics. - load. down to its full work slamb-bang described be 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. 39 . Broadway, New York 6, N. Y. . Carl Marks Telephone: WHitehail 3-3960 FOREIGN Private Wire to: Philadelphia TELETYPE V NUMBERS: NY 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. ; U \r \ 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