Full text of Commercial and Financial Chronicle : July 16, 1959, Vol. 190, No. 5864

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u

°F

He

ESTABLISHED 1839

M 1 ?
1gsg

INAN CI AL
R«f. U. 8. Pat. Office

Volume

Number

190

5864

New York

7, N. Y., Thursday, July 16, 1959

Price 50

Cents

Copy

a

EDITORIAL

As

Implications for the U.S.
Resulting from Gold Outflow

We See It

Apparently

the

President

has

succeeded

x

in

placing the fear of the voter in the hearts of at
of

certain

leaders

the

of

the

party about the inflation issue. Some of the
astute

politicians in that party

believe it wise, at the very

now

In analyzing our gold

to

least, to give the

need to:

ap¬

of being as eager as the President, pos¬
to keep Federal spending to lower
levels than the opposition originally advocated,
not to say demanded. Soothing syrup
for the
spenders in the Democratic party in the form of

go

more so,

claims that it is essential

make

as

a

practical matter

economize
would

the President

seem

to

and his

to

aid burden

eign

I wish

to comment at

and

continue

more

let

But

President

to

their

most

nor

in

this

or

more

desire to do

we

DEALERS

\

page

Charles

of the Council of Economic Advisers to be

that time.

Last year was a very ex¬

the

in

payments

conclusion

1958

inflation

that

the

world

with

the

we

:

Continued

on

page

going. This is all
popular views about
and

of

mittee,

NOW IN

afforded

a

sometimes

expert

Dr.

R.

J.

Saulnier

I

"Securities in Registration"

STATE and MUNICIPAL

and

BROKERS

DEALERS

HAnover 2-3700

Continued
i

PUBLIC

State, Municipal

Lester, Ryons & Co.
628

So. Hope

\

new

york

and

15 BROAD STREET, NEW

american stock

YORK 5, N. Y.

•

Dl 4-1400

Bond Dept.

"'

{

"*

•

•

the

on

Southern

Chase Manhattan

Securities

New York

BANK

Correspondent—Pershing & Co.

New York Stock Exchange

Maintained
and"' Brokers

Markets

Active

Banks

canadian

CANADIAN

securities

1832

Members

BONDS & STOCKS

Block

Commission

Inquiries

Stock Exchange

STREET

NEW YORK 4, N. Y.

^OtUhu>Cdt COMPANY

DIRECT

WIRES TO

MONTREAL AND TORONTO

•

PERTH AMBOY

PotMEooTf Securities

115 BROADWAY
NEW

YORK

1

NORTH

LA SALLE ST.

CHICAGO

MUNICIPAL BOND
DEPARTMENT

6rporatiok

Goodbody & Co.
MEMBERS NEW YORK STOCK EXCHANGE

BRIDGEPORT

Municipals

DEPARTMENT

CANADIAN

6

On All

Exchanges

Teletype NY 1-2270

BROAD

,For California

Invited

Orders Executed

Canadian




Inquiries Invited

Teletype: NY 1-708

Dealers,

T. L.Watson & Co.

25

San Diego, Santa Ana, Santa Monica
California

To

American

■

DEPARTMENT

TELETYPE NY I-Z262

ESTABLISHED

Securities

BOND

Pasadena, Pomona, Redlands, Riverside,

OF NEW YORK

Net

Investment

•

del Mar,

exchanoes

Vis tributor

Dealer

Exchange

Encino, Glendale, Hollywood. Long Beach,

Burnham and Company
members

Members Pacific Coast

o

THE FIRST NATIONAL CITY BANK

y

Bonds and Notes

Offices in Claremont, Corona

SECURITIES

CABLE: COBURNHAM

DALLAS

Public Housing Agency

Street, Los Angeles 17,

UTILITY

BANK

FIRST

30

page

of remarks

Associate Member American Stock Exchange

FOREIGN

&

CORN EXCHANGE

♦

on

made by Dr. Saulnier before Annual Convention
of the N. Y. State Bankers Assn., Spring Lake, N. J., June 27, 1959.
♦Text

Members New York Stock Exchange

BONDS

RAILROAD

CHEMICAL

Underwriter

consensus

not

pretend to be an authority on others, let alone our own
a
tendency to let their views about the econ-

California

INDUSTRIAL

30 BROAD ST.,

the

are

the

—have

Section, starting on page 34.

UNDERWRITERS

Municipal

NT
bond department

economy,

REGISTRATION—Underwriters, dealers and investors in corporate
complete picture of issues now registered with the SEC and poten¬

Securities
telephone:

well, but

the

and

Housing,

State and

very

even

opinion,

have

IJ. S. Government,
Public

times.

at

too re¬
feeling that our
people—and maybe this is true of
other people, too, though I cannot

liable.

30

by Dr. Kindleberger before the Joint Economic ComCongress of the United States, Washington, D. C.

rather

rather satisfied with the way things

absolute rise in money wages in this coun-

,

were

nowadays things have changed.
get the impression that people are

are

It is

smaller percentage here than there.

blue

I

markets."

true that the

difficult

a

of the Council.

But

re¬

were

world

of

ways

Things

in

country had outstripped that in
of

many

time to be chairman

1959, and jumped

rest

even

citing but in

and

"pricing ourselves
Today, hap¬
pily, there is a much better under¬
standing of the real position.
It is
recognized that overall prices have
risen in the United States just about
as
much as in Europeanxcountries,
and that wage rates have risen, on

Kindleberger

tial undertakings in our

in

economic growth.

good time for the Chairman

very

beginning

the whole, a

24

are

course, a

assure

year,

out

or

SECURITIES
securities

is, of

and overall foreign^ policy.
months
ago
the
American
woke up with a start to the
of gold through the balance of

♦Statement

on

Federal finances in order,

our

talking about
It is a much
May or June of last
though our economy was
definitely to recover at

sult that

may

Continued

This

the recent out¬

the

creating a really
have they shown any
in the months

bust, keeping

and avoiding inflation to

this

of

more

boom and

urges

as

without

year

a

better time than

to

in

at most than to scratch

matter

such complicated problems

sees

absorption of about 1.5 million workers

the American economy.

loss

the

of the influential leaders

ahead, Dr. Saulnier

us

Looking further

not.

or

press

to come. The real test will come next year
so

on

budget will be balanced

for

policy

more

Neither

if the

as

will tell

Three

all hope against hope—and its
rrival and its outcome will depend not upon the
dministration, the Congress or either of the
ajor political parties so much as upon the Amer'can people themselves. Members of Congress will
r

length

the first quarter of

ourselves.

sound fiscal situation. Nor

intentions

some

international

deceive

not

us

surface

years

for

desire

and

He pleads for better public

government spending, says the next 60 days

exchange

issue

well into 1961.

understanding to forestall upward cost-pace and,

of the for¬

some

Treasury

taking place and quite encouraging the
capable of sustaining present high level

for United States domestic economic

expenditures.

Congress have done
the

shout

of activity

our

flow of gold from the Untied States and its implications

the

Democratic
ments

others;

to

of the so-called conservative wing of the
party even if the so-called liberal ele¬

part

forces at work

American business to improve productivity.

party. All this

on

increase pattern

or

far is highly satisfactory, and

so

against loss from devaluation;

guarantees

party will out-

agreement, that is,

changes affecting

He does suggest: shifting

correcting.

suggest agreement with the Presi¬

vital issue next year,

i

that much of the present weakness of the dollar is self-

dent and the Vice-President that inflation will be
a

no

overboard in deflationary policies. Instead, the author

balance of payments

by the President difficult, if not im¬
possible, has now in some instances given way to
active claims that the Democratic

sees

President's economist finds ominous the non-steel wage

world-wide

a

position in foreign aid,

our

shows that much of the short-run

veto

a

Advisers, Washington, D. C.

outflow, MIT economist

contemplate devaluation, join in

gold price increase, alter

pearance

sibly

Chairman of the President's Committee of Economic

Technology, Cambridge, Mass.

more

appear

By DR. RAYMOND J. SAULNIER*

Professor of Economics, Massachusetts Institute of

Democratic

Economy:

Now and Later

*

By CHARLES P. KINDLEBERGER*

least

The Nation's

40

Exchange Place, New York5,N. Y.

Teletype NY 1-702-3

WHitehall 4-8161

Hmtft of America
NATIONAL

300

"vVngs ASSOCIATION

r

Montgomery St.. San Francisco, Calif.

x

2

Commercial and Financial Chronicle

The

16,! 1959

Thursday, July

...

(210)
v.

For Banks,

Try "HANSEATIC"
•

35

Over

The

Brokers, Dealers only

experience

years

favoring

[participate and give their reasons for

(The articles contained in this fornm are not

<3

they to be regarded, as an offer to sell the

are

Large Trading Department

geared for service
•

New York

Nationwide Private Wire

5ystem

Re¬

factor in

tram

growth of Union Oil. Under its
program
the company has con¬
tinued
to
explore and" develop

Stock Exchange

York

New

Members

Straus,
Blosser & Mc¬
Dowell, New York City. (Page 2)

Realty

to serve you

when

you

30%

Try "HANSEATIC"

about
flow

a

indicated asset

Oil at

Associate Member

Stock Exchange

American

New York 5

120 Broadway,

BOSTON
PHILADELPHIA

SAN FRANCISCO

•

to Principal

Wires

Private

CHICAGO

•

Cities

Ohio Oil

integrated

in

DETREX

western
Gordon

States.

Y.

Billard

Last

Alaska.

Pacific
Idaho,

and

Hawaii

Nevada,

Montana,

INDUSTRIES

the

year

company

engaged in exploring for oil
states and 8 foreign
countries and produced
oil and

SOLD

—

and gas in 21

in 9 states and Canada.

gas

Proved oil and gas reserves ap¬

MORELAND & CO.

DETROIT 26,

Building

MICII.
DE 75

WOodward 2-3855
Branch

Office

—

Bay City, Mich.

LAMB0RN &
99

CO., Inc.
STREET

WALL
NEW YORK

5, N

per

than $80

more

share

per

Exchange

Stock

Detroit

1051 Penobscot

equal to

is

$1

at

after* adjustments for
long term debt -and net working
capital but without giving any
value to its large unproven acre¬

Exchange

Stock

which

barrels

million
barrel

Members
Midwest

equivalent of 670

the

proximate

holdings

age

its extensive mar¬

or

and transporta¬
It holds large
acreage
spreads
in
Argentina,
Costa
Rica, Guatemala,
Canada
keting, refining
tion
properties.

estimate
its

from

serves

addition,

In

Alaska.

and

sources

some

recoverable re¬
Colorado
shale

holdings far exceed present stated
reserves
indicated
above.
Book

Y.

end of last year was

value at the

—

Refined

—

Liquid

unstated

reserves

to

cash flow was equal
nearly $11 per share while net

Talcott

and

35%,

re¬

depressed level of
general business activity but also
not

only

the

the abnormal heavy inventory po¬

sitions

of

petroleum

products

on

the West Coast. Thus far this year

Cash

witnessed.

exceed

should

•

Inventories

•

Machinery

•

Installment Sales

•

Factoring (Notification
and

18%

spectively, from 1957. In the past
4
years
ended 1958, cash flow
amounted to about $48 per share.
Lower earnings in 1958 reflected

substantial improvement has been

Accounts Receivable

(Non-Notification)

;

year

about

should

net

flow

this

year

$12 per share

approach

$4-5

and
per

share.

During

Non-Notification)

Union

the

past

twenty

assets have

Oil's

years

increased

cash
and net) about 6 times. Decline
in 1958 earnings was not without
4

times

and

earnings

(both

precedent. During the 20-year pe¬
riod there were similar setbacks
in

221 FOURTH AVE., NEW YORK 3,

N.Y.

ORegon 7-3000

CHICAGO

•

DETROIT • BOSTON




again

these

in

1954-55.

periods

was

by vigorous recovery to

twenty
years
the
company
has
spent
nearly $1 billion on capital assets,
equal
to
approxmately
twice
present
market
value
of
the
equity. Nearly two-thirds of this
amount was spent for finding and

new

YORK

of

each

followed

NEW

and

1949-50

Yet

developing
and

In

peaks.

most

oil
of

manufacturing,

the

past

and gas reserves
the remainder for

marketing

and

of New York,

shore

coveries

in

a

cash

13

last

found

were

Straus, Blosser &

pany.
a

new

per

im¬

provement
is
indicated for
1 96

can't find

a

submit your offerings.

J

Perhaps

0

{JaIBERT

we can

help.

J. CAPtAN 1 CO.
-Botlo. Shxrfc fxch.
(Assoc.)*

ft:*''

Members;

F '
*

JSosfon $ Piiit. Stack ixcb.

LOCUST STREET, PHILA. % PENN

II

0, when

the

company

increas¬

will

have

natural

is

gas

as

last

revenues

20%

to

primarily to

a

sales.

a

ble by the early 1960s.
At this
level, cash flow could easily ap¬
proximate $15 per share.
Even

existing

the

sub

-

in¬

in

ca¬

stock

This
DtiMuiii

an

detigma.i

ap¬

now

25%

pacity over
present levels.

29% gain in Lou¬
sales

o f
approxi¬

crease

in¬

the highest level

Gas

n

mate

Natu¬

year

the

advantage

proach $12 million annually and
may
double this year.
Further¬
more,
with large indicated
re¬
serves,- this level may again dou¬

using

sub¬

stantial

history of the company due

isiana

share.

Further

year.

and East become available.

creased

1

{INACTIVE ISSUES

I estimate 1959 earnings at
all-time high of approxim a t e ly $4.50

othe-r discov¬

importance

gas

INSURANCE

If you

Large capital gains appear im¬

gathering
systems connecting long distance
pipe lines to cities in the North
ral

Bankers

home for certain of your

additional 10% in 1958.

an

Investment

STOCKS

h

SELIGMAN

dis¬

new

&

Broadway,N.Y. 6 COrtlandt 7-5680

LIFE

eries, gas reserves, which doubled
between 1952 and 1957, were in¬

in

111

price reces¬
holding by
position to accept
return augmented

the immediate off¬

Aided by these and

ing

Tokyo, Japan
Brokers

Rubber Company

Cooper Tire &

southern

is

Inc.

of

Yamaichi Securities Co., Ltd.

minent in this well managed com¬

where

region

Affiliate

McDowell, New York City

far exceed this

earnings

Louisiana and

of

during

BERTRAM

—

future

by

•

Securities Company

private investors.

Resident Manager,

significant area of opera¬
from the standpoint of near¬

in the

down

COMMERCIAL
FINANCING or
FACTORING
to

of $100 per

excess

after non-cash writeoffs was $3.18,

For

•

in

is

share.
Last

Talk

of

pany's "Appraised Net Worth" in¬
cluding the value of oil and gas
reserves

DIgby 4-2727

do not
underground

company

value

of oil and gas. The com¬

reserves

Exports—Imports—Futures

oil

an

the

in¬

by stock dividends.

Most
tions

■

longer term

small

the

of some 54
million barrels, none of which are
included in the preseht reserve
estimates. It is probable that the
figure.

for

accounts

for a potential

States

Louisiana

for

particularly
sions

United

the

in

stage

planning

write

is recommended at the market and

purchase production in excess of
the company's requirements. Sev¬
eral water floods are now in the

creased

reflect

and

or

Yamaichi

widely

estates,

trusts,

management

Astute

provides that Ar¬

This agreement

derstatement. Such accounting fig¬
ures

Raw

stitutional

gentina will buy all of the oil pro¬
duced at world prices and that
Union will have the option to re¬

around $54 but this is a gross un¬

SUGAR

by

Call

Gulf Oil
recognized such values long ago
Argentina, the company has
and at prices exceeding those now
agreed to spend $5 million over a
prevailing.
period of years for exploration
Price risks appear small in re¬
and development of two undevel¬
lation to the longer term price ap¬
oped areas totaling 4 million acres
preciation potentialities. Purchase
in the Comodoro Rivadavia Basin.

was

BOUGHT

recognized

For current information

Oil

Union

in

values

STOCKS

exceeding

will in due course be more

Under a contract with

Peru.

and

Principal mar¬
keting areas outside of the
Coast slates are Arizona,

CHEMICAL

by
Such

share¬

Union

for

prices far
prevailing.

Intrinsic

oped several projects. Exploratory
work is under way in Venezuela

the fast grow¬

at

riow

those

great potential prom¬
ise. In Costa Rica, further explo¬
ration with Gulf Oil has devel¬

"out"

an

holders

700,-

000 acres of

largest

United

vided

600,000 acres. In Gua¬

on

temala, the company controls

Union is the

ing

branch offices

JAPANESE

offer

Gulf to Union shareholders.

of
an offer, if and when made, could
being developed; In Alaska, the
hardly be successful unless it pro¬
company holds leases jointly with

stock

company

Direct wires to our

prelude to

a

was

exchange,

ultimate

an

major oil field is in the process

market.

second

dividend action

large acreage holdings in British
Columbia where it appears that a

a

inflated

Teletype NY 1-40

WOrth 4-2300

f

La. - Birmingham, Ala
Mobile, Ala.

New Orleans,

,

prevail¬

e o

In

N. Y.

NY 1-1557

during the short-lived 1958 reces¬
sion. Thus, there seems to be ba¬
add materially to existing stated
sis for the belief that the drastic
reserves.
In Canada, there are

de¬
flated
growth
equity in an
pi

Stock Exchange'

f

HAnover 2-0700

ginning of the century. Union was
the only major oil company that
slaughtered its regular dividend

during

California, discoveries in
Ventura and Kern Counties should

prime exam-

1920

Established

be

20 years and in fact
the be¬

the past

all but two years since

in

impact of many develop¬
the past year will
felt within the next year or

two.

i

York Stock Exchange

19 Rector St., New York 6,

Real

ing prices is a

Corporation

Members New

Members American

for

ments

value, Union

New York Hanseatic

Steiner, Rouse &

products, processes and tech¬

niques.
at

Resident Man¬

^Seligman,

.

discount of nearly
from its 1956-57
high and
4 times 1959 estimated cash
and for about one-half its

Selling

Rubber Co.—Ber¬

&

ager,

new

Union Oil of California

B o ught—S old—Q uoted

Cooper Tire

the

City

Louisiana Security

California—Gordon

of

Billard,
General
Partner,
Carreau & Co., New York City.
(Page 2)

equipment.

search has been a major

& Co.,

General Partner, Garreau

Alabama &

Selections

Y.

intended to be, nor
secuiities discussed.)

transportation

Y. BILLARD

GORDON

Oil

Union

particular security.

a

Participants and

Their

each week, a different group of experts
the investment and advisory field from all sections of the country

in Over-the-Counter
•

Forum

A continuous forum in which,
fai

Week's

This

Security I Like Best

normal

for
measuring
cash
a price equal to or ex¬
ceeding the peak prices (64-65)
reached in 1956 and 1957 should

yardstick
earnings,

is

outstanding
in

value

a

v

superior growth
prospects are currently being rec¬
ognized by price earnings ratios
ranging as high as 20 to 1.
whose

industry

Longer term prospects are

enhanced

ther

fur¬

the company's
position in the

by

well-entrenched

industry which
built-in cumulative
growth factor related to the steady

replacement

tire

a

possesses

vehicles

increase, in the number of

The in¬
with fluence of this growth trend on
net working capital approximat¬
Cooper's
operations
may
be
ing $167 million, as last reported, assessed from the fact that this
while long-term debt totaled about year's estimated $36 million sales
be witnessed.

the nation's highways.

on

Financial position is strong

$183 million and was followed by

million

8.2

about

com¬

and

Certain directors

stock.

mon

of

shares

represents

volume

close

to

an

850% increase over the company's

II sales average.
officers hold large blocks of com¬ The pattern of outperforming the
mon.
industry average is being main¬
Gulf Oil holds a potential 21%. tained as reflected in consecutive
pre-World

War

,

interest in Union

through

owner¬

ship of $120 million of 3%% con¬
debentures

vertible

These

1956.

vertible

$68.63

debentures

into

on

or

acquired

Union

are

Oil

1,

1961

payment of $19.61 per share
higher prices thereafter.
Subsequent to Gulf's investment
in Union, the latter's cash divi¬
at

dend

in

60c to 25c

by

a

dends

2%

1958

was

reduced

from

quarterly supplemented
stock

have

been

dividend.
paid

ments

of

the

Cooper's tire ship¬
12.9% and 32.6%

OVER-THE-COUNTER

16.9%,

INDUSTRIAL STOCK INDEX

past three years.
Rising Sales

at

upon

and

annual gains in
for

con¬

stock

before April

in

N. Q. B.

Divi¬

each year

Substantial
sales

and

this year

20-Year Performance o

improvement in

earnings

is

35 Industrial Stocks

expected

in line with the contin¬

FOLDER

ON

REQUEST

uing upswing in replacement tire
sales.
year,

Since the beginning

Cooper's sales

of the

have shown
earlier

substantial gains over year

Continued

on

page

43

National Quotation Burea
Incorporated

46 Front Street

«

New York 4, N.

Volume

19G

5864 ~

Number

The Commercial and Financial Chronicle

.

.

(211)
•

....

1 N DEX

Meeting Inflation
By CHARLES J. COLLINS

advises investors

Collins

investments in

to

meet

inflation

.Meeting
The

explains why companies
with large debts should be excluded, and names the industries
as

Today, the most important

inflation hedges.

could

There

tion.

be

to this discus'

i

of

o n

subject

than

revert to

to
•

the

Tetter

that' should

a

written

they

have

become

lobbies

land

working in its

one,

various

of

detriment

the Honorable

<

S.

Randall

of

New

by

a

t is

the

of

given

try

has

the

passed

road from

which

sion

In

tarian

ions

Charles

J.

Collins

atmos¬

phere,

of

some

may

Macaulay's
harsh.

seem

opin¬

But

his

views, expressed more than one
hundred years ago, have an ele¬
ment of truth that can be taken
to

heart

the

by

13

SAN JUAN

Heard

Banking in New York From
•

no

'

RACING ASSN.

N. Y. State Bankers Assn. Convention

at

The Nation's Economy: Now and
Later
V—Raymond J. Saulnier
a

Common & Voting Trust shares

7
WESTERN GOLD

Cover

Supervisor's Viewpoint

—G. Russell Clark-.

6

.■_

STANDARD

and,
Several Banking Bills
Congress Is
Hon. Ray M.
Gidney.
7

retrograde pace
is accelerating.
Just now, in a
period of relative prosperity, the
nation is witnessing the greatest
peacetime deficit in its history.
And
labor
leaders, despite the
year-by-year example of the in¬
flationary effect of wage hikes on
prices, are continuing to press

to¬

day's humani¬

.

12

to

be

late

a •

Telephone: WHitehall 4-6551

___

economy.

can

runs

.

12

—O. E. Boulet

in the interim, the

this

time

But

Dept.

STREET, NEW YORK

Competing and Promoting Trust Services for
Corporations

the coun¬
point in The

there

return.

article.

99 WALL

Payments

Investing for Income and Safety—Roger W. Babson...

no

amenable

entire

at the conclu¬

of

Obsolete Securities
n

,

__

This is not to say that

York,

t h

10

...

Pension Fund Investments

as

No Longer Can We
Disregard Our Balance of
—Wilson E. Schmidt

.

H.

*

a

New Look at Equities
—Paul L. Howell

.

groups,
each
interest to the

own

buy at

we

Wall!

99

dried up

more

than the stocks

right-thinking legislative class;

by Lord Macaulay of Engto

Couldn't be

$

^

tolerated

be

A RAISIN IN THE SUN

3

Cobleigh

_

mmmmmrnmmmmmmmjf

„

_

confiscatory and destructive to in¬
dividual enterprise and the crea¬
tion of wealth.
Its politicians are
supine in the face of a labor
monopoly and a labor crookdom

introduction

s

Collins-—.

'

better

no

AXD CO HP AMY

Cover

Second U. S. A. in Next Four Decades
—George Cline Smith

income, through a system of pro¬
gressive, or advancing, rates, .is
being taxed to a point that is both

eco¬

J.

mmmmm

Coming Expansion in Canadian Natural Gas

Building

A

nomic problem before the investor
and the man of property is infla¬

Inflation—Charles

—Ira U.

offers six criteria to guide selection;

particularly favored

•fm

by judicious

stocks. The Detroit investment adviser

common

Pago

Implications for the U. S. Resulting from Gold Outflow
>j>—C. P. Kindleberger

Cynical of man's capacity to understand, and to deal with, his
responsibility for currency debauchery and fiscal malpractices,

llCHTEIISTfll

B. &

Articles and News,

Chairman, Investment Letters, Inc., Detroit, Mich.

Mr.

3

i

❖

Considering <,1

URANIUM

17

*

*
.

J.

FEDERAL URANIUM

Henry Neale Is New President of New York State
Bankers

Association

;

14

REEVES
Challenge of the South—W. W. McEachern_____._.
••

•

SOUNDERAFT

15

y

people of any
country, particularly the people of

management against the wall. Un¬
til there is evidence, certainly not

Making Canada Canadian—Hon. Alvin Hamilton

20

this

yet

A Race Without Winners—Orlo M. Brees

25

country at this time; an ele¬
prophecy as to the future

ment of

of

the

States

that,

after,

years

be

the

gist of the Macaulay mes¬
is not that man is unpatriotic,

the

evil.

or

of

mass

and,

being

is

men

and

tool

the

gogue and the agitator.

under
mass,

failse

if it

our

in

the

con¬

Nation's

It is then,

slow.

that the
the power to

a

continuation of this

This is termed

permanent
welfare

harm

well-being
its country.

of

of

its

tion.

the

and

be cited

1789

and

1799;

period

a

But

psychology,

major

as

well

as

charac¬

that _a

by Andrew

D.

White,

on¬

on

financial chaos

could raise it.

potism, but civilization
In

saved.

was

the

light of developments of
the Twentieth Century, it may be
said

that

traveling

the

United

down

the

States
road

Macaulay envisaged for it
tury preceding. The mass
the ballot box.

is

that

a

cen¬

sways

Thus, the nation's

fiscal

budget, mostly for so-called
welfare
need, has been largely
unbalanced
24

over

three

Man's

decades—

Pacific Uranium

in

the

44

Investment

Dealer-Broker Investment

Ahead of the

8

9

*Offering Circular

\

•

22

on

Request

14

News About Banks and Bankers

19

Observations—A. Wilfred May

mackie,

&

14

—.—

Direct Wires to

To date, there has been no real
the dollar, but there

Our Reporter's Report

42

San Francisco

27

Philadelphia

Los

Dallas

flight from

evidences of

are

its
in

some

shrinking value.
a

alarm

This

is

Public Utility Securities.___

over

seen

the

loss

of

two

billion

—

—

Railroad Securities

or

in gold during the past year
probably due to the resurgence

Cleveland

Angeles
Chicago

16

Securities Now in Registration._—

number of ways. We will pass

over

INC.

40 Exchange Place, N. Y.

HA 2-9000

4

—

.Our Reporter on Governments._1

34

more

as

of

better

need

times

there

to

stocks

and

Europe and

supplement

But

reserves.

in

we

can't

buying of

real

estate

Continued

Prospective

Offerings

Security

Securities

Salesman's Corner...

overlook
common

Stocks for the "Surging
:

The Market

.

;

.

and You—By

Security I Like

The

Wallace Streete

Best—________

page

—

„

25

Spencer Trask &

B.

Park

U.

S.

Weekly

_______

2-9570

Reentered
ary

Office

DANA COMPANY,

GEORGE J.

Exchange

TELEPHONE HAnover 24300

.

Y.

York 7,

Publishers
N.

i

Thursday, July

16,

^

plete
state

Glens Falls

statistical

Worcester

*

Other

issue

corporation

and

city

news,

Offices:

Chicago 3,

111.

135

—

Possessions,
Dominion

quotation

bank

clearings,
Salle

St.,

(Telephone STate 2-0613).

in

Bank

$45.00

Territories

and
per

Union,

New

States,

and

$65.00

rate

foreign
be

U.

<

Members
per

layman's English
with plenty of brass tacks'
advice on investing. He gets
down to naming names of se¬

"Written

S.

.

of

in

year,

year.

.

curities he thinks will do better

Record—Monthly,
(Foreign Postage extra).

•Surging 60's\" — Donald K.
White, Financial Editor, San
Francisco-Examiner.
$2.50

account

of

the

fluctuations

than most in what he calls

exchange,
remittances
for
subscriptions
and
advertisements
in

New

York

funos.

the

in
•

of

made

.

in

'

.

Publications

Quotation

year.

Note—On

must

United

of

Other

the*

La

STOCKS

Febru¬
at

Canada,
$68.00
per
Countries, $72.00 per year.

Other

1959

etc.).

South

post

By IRA U. COBLEIGH

Pan-American

President

market

news,

office

the

Subscription Rates

Thursda-y (general news and ad¬
vertising issue) and every Monday (com¬
records,

Schenectady

SEIBERT,

matter

at

Subscriptions

MORRISSEY, Editor

DANA

BUYING

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

Y.

9576

to

second-class

as

25," jL942,

Every

TELETYPE NY 1-5
Chicago

GET RICH

44

—

Company

1868

Stock

HOW TO

Copyright 1959 by William B. Dana

CHRONICLE
Patent

Place, New

REctor

WILLIAM
York

—

28

WILLIAM

ST., NEW YORK 4, N.

2

4

__,

The State of Trade and Industry..-.

60's'

16

.i_

throughout

on

Profit-laden

8

—

bank

"Reg.

Founded

41

——

A Guide to 60

a

FINANCIAL

New

Singer, Bean

Teletype NY 1-1825 & 14844

r

have specialized in




Century Chemical Corp.*

33

i

NSTA Notes

Published Twice

Nashville

Associates

14

News—Carlisle Bargeron__

The COMMERCIAL and

Boston

Corp.

Etectronic Research

Einzig: "Furore Surrounding Take-Over Bids in Britain",.—-

For many years we

Albany

44

.___

Recommendations

Washington and You——_——

Members

First Lumber

Field

Mutual Funds

currency and
for the nation in¬

volved.

yearly deficits in 29
yea^s. Its the increased
unit, the dollar, Within

the past 20 years, has lost half of
its
purchasing
value.
Personal

BROAD

Perkin-Elmer

1 23

Indications of Current Business Activity

,

currency

25

-Cover

i___

Stocks

Bookshelf

Events

From Washington

debauchery of the

horseback, Napoleon,
As Macaulay would
put it, liberty gave way to des¬
a man

Insurance

co-

try—a prostration from which

ly

(Editorial)

and

permanent

depreciation in the cur¬
unit is under way, then a

rency

and

Coming

during an inflationary period. At
point as the public becomes i

convinced

See It

Business

flight from currency, via the rush¬
takes
founder and President of Cornell ing of money into goods,
place. At this point, the economics
University, in his "Fiat Money In¬
of the matter fall by the wayside
flation in France," as ending "in
and mass hysteria takes over. Tnis
the complete financial,
moral, and is known
as a
"galloping" infla¬
political prostration" of that coun¬
tion,' the end result of which is
terized

18

"creeping" infla¬

a

such

than France between

We

Bank

econcmics, must be reckoned with

History is replele with examples
of the Macaulay thesis, of which
no
better period, in recent
time,
can

J.F.Reilly&Co.,Inc.

18

Regular Features
As

The economics of the situa¬

tion call for

want

great

Economy

Guaranty Trust Co. Study Sees No Spurt in Equity
Financing Despite Propitious Market

slow rate, with a year or two, now
and then, when it may be arrested.

the

18

the

on

Morgan

immediately in the wake
of World War II, the pace of in¬
flation, while persistent, has been

dema¬

choose its political rulers, votes in
a manner to relieve its immediate
to

~~~~

Panel to Dissect Role of Life Insurance

Galloping Inflation?

or

%

BASIC ATOMICS

with and

guidance,

possesses

will

trend

*

ABA Convention May Be Largest Ever.

Following the inflationary price
upheaval in this country coming

uneducated

of

inflationary

Creeping

It is, rather, that

uneducated, becomes,
economic distress, the

at times of

proselyte

in

and

tinue.

The

selfish,

change

political attitude toward the'labor
monopoly, we must expect that

one

cannot

brushed aside.

sage

of

*

United

hundred

apparent,

Federal fiscal conduct

At all bookstores

David McKay

•

3rd Printing

Company, Inc., 119 W.40th

St.,N.Y.1t,

The Commercial and Financial
4

(212)

existing proxy machineryan effective anti-manage¬
extremely difficult.

with

Chrojiicle

.

.

Thursday, July

.

16^ 1959

making

vote

ment

Observations

.

.

Steel

.

; The

The Battle in Washington

a

In

Washington occupied with

a

Foreign
Ministers' and Summit Meetings,
cosmic

such

matters

as

steel strike, an intramural party

a

-

foresees

Cabinet

fashion;

re¬

industry
spokesmen,
in
opposition, deem such a rule dis¬
astrous because of loss of

statutes

can

provoke rela¬
tively little
interest.

tive

This
Wilfred

particularly

May

rettab|e
when'

highly

some

im¬

changes are being asked
of the Congress by the Securities
and Exchange Commission.
The
product of long study,*they have
to do with the statutes passed in
1940 regarding investment compa¬
nies, mutual funds and advisers.
portant

proposed amendment to the
Investment Company Act eliciting
The

in the industry
would require a clear recital of
basic
policy, and adherence to
such policy unless the change is
authorized by a majority vote of

particular alarm

the stockholders.

TEhe existing law

every

registered invest¬

company

to file a registra¬

requires

flexibil¬

ity, the impossibility of determin¬
ing policy in advance to hold up
through' unforeseeable
circum¬
stances and continuing administra¬

securities

differences

SEC

the

with

difficulties

through

unrestricted
curities

to

as

invests

it

the

type of

se¬

The

advance.
trouble

policy

tion in this

is directed at the

area

Investment

Advisory

wants

SEC

Act.

The

general" tightening

a

fund

this

of its supervisory functions,
particularly seeking an enlarge¬
of its powers of inspection.
Also some of the large statistical
services
them

the

want

Act

Investment

as

enable

them

include

to

Counsel,

thus

to

describe

to

by

as

without any conclusion emanating.
I refer to the frequent practice,

particularly in the high stages of
a bull market, of closed-end com¬
panies which are quoted at a dis¬
count,
offering additional stock
through rights, at a price below
asset value.

ing from reduced income-buying power of the strikers and those
laid off because of the strike.

Locus of
The union's last wage

Dispute

demand came to

a

little

over 15 cents an

plus continuation of the cost-of-living escalator
clause, and an offer to have Benjamin Fairless, Clarence Randall
and Clinton Golden arbitrate all local working conditions.
Man¬
hour for each year

agement offered to retreat from a one-year freeze if

any

rise in

and fringe benefits was offset by increased plant efficiency

resulting from modification of local work rules. This, apparently,
is the locus of the'dispute and, therefore, the area for settlement.
The issue is a grave one for the entire economy—i. e., should
labor

continue

to

appropriate

gains

all

from

technological im¬

provement.

production not affected by the strike is found in three
companies—Detroit Steel Coarp. of Portsmouth, Ohio, Granite
City Steel of Granite City, 111., and Jessop Steel of Washington, Pa.
and Owensboro, Ky.—who have agreed to make retroactive pay¬
ment for any settlement finally obtained; and also in firms not
Steel

small

affected

by the United Steelworkers of America, such as Weirton
Armco Steel, and the steel facilities of the Ford Motor)
Harvester Corp. The metal working in¬

Steel Co.,
Co.

and

of International

seriously involved, inasmuch as the strike will cut

dustries will be

off 85%

of the production of the

This'strike

country's basic industrial metal.

outlast the worst tie-up in any industry since
steel strike. Observers believe President Eisenhower will

the 1956

Actually, for the benefit of thei£
shareholders, the closed-end com¬
panies selling at a discount from

the above-cited

not invoke the

may

Taft-Hartley law at this time.

Fortunately, the country's auxiliary industries have accumu¬

supply reserves against
requirements.

lated

steel

three

long strike, equivalent

to

months'

a

requiring

investment for control

or

manage¬

SEC

shareholder

in

urges

as

right

to

sity of

basic the
protection
against the possibility of manage¬
stockholder's

"switched"

open-end company.
As a practical matter, the

ment.
The

trucking, railroad and other industries. Should this "no contract"
walkout last as long as it is pessimistically predicted, it may in
turn cause still greater unemployment over and above that result¬

wages

matters al¬ would seem that in such a drastic their asset value, should choose
either advance type of policy change, the stock¬ one of the following two courses
disclosure
in
the
registration holders are always entitled to such of action, to eradicate this differ¬
statement, or subsequent stock¬ vote. The stockholder's "out" via ential.
They can, as have some
holder approval by majority vote, the "if you don't like it, sell your
progressive closed-end
manage¬
stock" principle is particularly out
the
proposed
controversial
bill
ments, transform themselves into
would
add the following items: of order in this fund area, because
open-end bodies. Since the openthe types of securities in which of the "admission charge" already
ended shares would be cashable
the company intends to
invest; paid by the holder in the form of at 100% or so of their asset value,
load
investment objectives as to income the
(buying
commission). this would close up the discount
The load further aggravates the
or capital appreciation; geographi¬
and
bail
out
the
stockholders.
"mid-stream" position of the
cal areas of investment, if any; and
This way of permitting the exist¬
To

ready

talks that commenced last Monday at the behest of
collapsed the following day, could not

get around the impasse wherein labor denied it blocked efficiency,

up

forestall

can

score

the second day of

President Eisenhower, and

ment

by

a recital
of the company
regarding such matters as diver¬ tedly hazy term—without a stock¬
sification,
redeemability
of
its holder vote, provided such policy
securities, borrowing money, con¬ is reserved in advance.
When a New England bond fund
centration of investments in any
particular industry and making recently changed its portfolio to
loans—none of which policies may common stocks, several stockhold¬
ers
be changed" in the absence of a
objected to being unilaterally
majority vote of the company's switched into a more speculative
medium. A stockholders' meeting*
stockholders.
was then held with the protestants
The Controversial New Items
being decisively over-ruled.
It

tion statement including

Another recasting of the regula¬

simply
The SEC's Glaring Omission
did One William Street
Coupled with these legislative
on its original
registration state¬
suggestions in the fund area is a
ment, that it shall be completely
unrestricted.
In any
event, the glaring error of omission—on a
matter which the SEC has been
SEC despite worries to the con¬
trary, management can always buy ^investigating since July, 1956, un¬
"defensive" securities—an admit¬ der Chairman Sinclair Armstrong,

stating,

on

on

'

and management accused labor of resisting increased labor pro¬
exemption from the Invest- /
ductivity used in combination with existing capital inputs.
Companies Act companies ;
which are subject to regulation
Ironical Announcement of Employment High
by the Interstate Commerce Com- f
A paradoxical coincidence is that a record employment high
mission, which the SEC wants tp
of 67,342,000 for June was announced by the Department of Labor
amend in the case of such com¬
panies primarily engaged in in- . on the same day as the above.VThe steel strike amounts to half-amillion unemployed and affects employment in the coal, river,
vesting activities (as Alleghany .

merely themselves.
prescribing the widest latitude in
in,

Joseph F. Finnegan,

the

.

replies that
the industry misunderstands the
implication^ and is worried need¬
lessly. Tt insists there would be
no
loss of flexibility. within the
area chosen by the company, with
no
interference by the SEC with
that prescribed area of choice. The
management can be permanently

The peace

ment

definition now).

in

and interpretation.
The
Commission

by labor leaders and
equitable settlement.

are

the steel strike.
-

an

result, representatives of steel industry management and
meeting today with the FederaLMediation and Concilia¬

a

labor

legislate f proposal

efforts

of fruitless

weeks

incfustry representatives to reach

tion Service, headed by

Proposals

Other

Another

The

As

Production

Business Failures

yesterday (July 15), 500,000 steel workers began

strike after ten

the steel

$

having to do with SEC powers isembodied in a bill to eliminate

Loss of Flexibility Foreseen

on

pro¬

posal s^ for
amending the

the

obscurity

there

is

Industry

At 12:01 p.m.
a

se¬

garding the SEC's intent.

taining to the Space Age.

gressional
mere

of

curities"

in missiles, jets, elec¬

as

Con¬

hearings

ment

fund
without
a

"defensive

regarding

policy

tronics and the various items per¬

appointment
—t he

now

of

the

in

it

management, with or
dealer prodding, changing its ob¬

Presiden¬

reg

the possibility

mutually satisfactory. Only
matter of the handling of

that is

all

to

Furthermore,

stocks.

jectives to exploit a new popular

a

is

fund

balanced

a

common

the

tial

of

from

as

balling

split,
black

from
self-established investing policy,

ment's unindicated switching

Index

Price

Auto

and

^

Trade

Commodity Price Index
Food

agreement as to what is desirable
regarding the issues at stake, the
drawing up of a satisfactory bill
would seem to be chiefly a matter
of semantics—with a revised text

MUTUAL FUNDS HERE AND ABROAD

Retail

State of Trade

verbal

professed

in

management

Output

Carloadings

Witjh the Commission and fund

By A. WILFRED MAY

Production

Electric

,

The Likely Outcome

.

not

a

an

ing shareholder to cash in

worry

his

of

the

on

assets

legiti¬
mately restores his equity, with
harm to no one; albeit possible

neces¬

stockholders' vote should

overly

value

true

management,

"inconvenience"

the

managers.

alternative

An

and

to

duty

a

step, legitimate
the shareholders,

to

would be the company's
of its own stock, on the
or

otherwise,

discount.

when

to

sells

it

chase

of

issues

there

do,

the

at

a

expressly
in recent

but
have avoided. In their

years

as

its

Correspondents inprincipal cities

«

are

downward

well

as

But in the purchase
stock, an immediate
profit is assured (if the

discount is
and

cate

cities of the United States

will

clearings
last year.

be

5.2%

lor which it is possible to obtain weekly

of the corresponding week

below those

Our preliminary totals stand at $22,157,521,989 against

$23,369,179,432 for the same week in 1958.
mary

at the leading banking centers

Week

1,139,973,485
946,000,000

660,784,404

Boston

so

Edition

of the

UNDERWRITERS AND DISTRIBUTORS

20%, the profit is 25%,

on).

An

:

Assessment

"

Continued

Specialists in Canadian Securities

But

funds

this

have

is

refused

only part

to

of

steps

Dominick

&

sad

Members New York, American & Toronto Stock
14

WAIjL STREET




"Compounding the felony"
refusing to buy in their own

cheap

Dominick

than

NEW YORK

stock,

additional

Exchanges

as

the

of

some

stock

at

a

Association

Y^.

NY 1-4722

HAnover 2-0433

them

Orders Executed at regular commission rates

through and confirmed by

sell

price lower

prevailing discount. For
Members: Principal

subscribe

The

bull

Principal for

Broadway, New York 4, N.

those holders who do not want to

"

For

page

take.

the

story.
of

on

Grace Canadian Securities, Inc.
25

Shareholder

the

0.1

Brokers, 'Dealers and Financial Institutions

the

on

Both of these constructive

OF INVESTMENT SECURITIES

0.2

—

"Chronicle," issued Mondays.

/

*

Members: New York Security Dealers
_

2.2

—

detailed summary of bank clearings in U. S. A. refer to

Statistical
-

+

1,115,845,307
948,000,000

660,093,349

.

Philadelphia

the

—13.5

$10,702,910,107 $12,379,626,956

Chicago

a

%

1958

1959

Ending July 11—

New York

For

Our comparative sum¬

follows:

own

automatic

throughout the United States and Canqda

Preliminary figures compiled by the "Chronicle" based
telegraphic advices from the chief cities of the country, indi¬
that for the week ended Saturday, July 11, clearings for all

year ago.

unon

pur¬

upward).

of

a

Clearings 5.2% Below 1958 Week

clearings this week will show a decrease compared withT

run-of-the-market

is

surely some risk
(even in this New-New Era some

fluctuations

Bank

buying in
Exchange

This they are

permitted

Nationwide Bank

(at

market)

a

high point in the

or

cannot

Continued

on

afford

to

page

43

National

25

Slock Exchanges of Canada

Association

of

Security

Dealers

Broadway, New York 4, N. Y.

.

f

32

%

Volume

190

Number

5864

.

.

The Commercial and Financial Chronicle

.

(213)

A

The

Coming Expansion In
By DR. IRA U. COBLEIGH

Enterprise Economist and Author

Containing
Canada

observations

some

\

of "How to Get Rich

the natural

on

industry in

jind the outlook for certain producers, pipe-lines and
distributing utilities.

The

from

uncertainties

the

publication

resulting

Emerson,

Manitoba.

It

would

the first seem reasonable to
expect that
report, and N.E.B. would, in due course, ap¬
the unsolved problems of
gas ex¬ prove these
applications; and if

Borden

of

Commission

ports

have

that occurs, then natural gas in
Canada will really start to zoom.

restric t ed
most
d

ia

Cana-

n

quite

to

a

range

representa¬
tive
issues

highs.

and

Which

Ira

U.

Cobleigh

neglected

and

second

with a little luck, they
might swiftly switch from being
languid, to being dynamic market
performers.
the

to

picture

is

the

forthcoming and widely heralded
members

to

foreseeable

but for such

because,

appointment

all

Dominion

and

of
the

Chairman
National

earn¬

pro¬

ducers, pipelines and distributors,

because

key

—

project new magnitudes of
ings
power
not
only for

present

consideration

The

month

a

needs.
Accelerating the
flow of this "locked^-in" gas would

invites

seem

after

huge gas supply
adequate for visible

than

export

rather

first,
they

month

more

1957

year,

by continuing sizable discov¬

eries

below

their

gas

these delineate

today,

their

but¬

fields

and

of

are,
far

reserves,

by enormous ^gas
brought in within the past

number

,a

Known

port.

tressed

narrow

trading
and

Nobody questions any longer the
supply of gas available for ex¬

gas

shares

and

Energy

Lake

son

companies

Jeffer¬

as

Petrochemicals

Can¬

of

Ltd.

which
produces
and
markets the sulphur which must
ada,
be

removed

fore

it

from

"sour"

,

becomes

be¬

gas

acceptable

an

pipeline commodity.
The

opportunities for investors
participate in Canadian gas ex¬
pansion (which now seems so im¬
to

share

with

fine

is

huge
acreage
in
Export Gas and
Oil.

dedicated
creasing

to

Trans-Canada.

gas sales at

time

should

Mid-Western

Industrial

Ltd.,

formed in 1952 to acquire and de¬

velop gas

About one-half of its reserves'are

over

Buying Stocks.'

gas

price
and

Canadian

Canadian Natural Gas
*

low

reserves

to

In¬

industrial

tracts

higher prices
something

and

Biggest

users.

with

are

Fort

at

do

and to sell gas

reserves

Power

Alberta,

Ltd.

Mid-

due

(and

course,

pleased

to

note

that

hope

we

swiftly) be appointed, and

we

are

the

Energy
Bill (authorizing the
Board) pro¬
vides
that
all
tolls
charged by
pipelines shall be "just and rea¬
sonable!'; and that both the Prime
Minister and the Minister of Trade
and Commerce have stressed that

regulation
provide

pipe

be

such

reasonable

line

cient

must

to

and

capital

which

sells

at

Export

Western

in

2J/4

$1.65.

To-

One such is Great North¬

Gas

ern

Canadian

for

now

market.

re¬

rates,

Pipe
"B"

shares

Line.

Home

shares

Toronto

Trans-Canada

ob

are

and

Exchange,

Oil

listed

the

and

"A"

both

and

on

American

the

Stock

selling

currently

17.

around

Utilities

Ltd.,

large

a

Canadian

sizable
share

gas

Delhi

Oil

plus

reserves

holdings

in

has

very

as

natural

ish

distributed

is

tain sections

Ira

sells

common

Inland

Natural

around

Gas

Ltd.

Hanpt & Go. to

in

cer¬

The

of Alberta and Brit¬

Columbia

in

and

the

City

of

Pensacola,

Fla.,

has selected the firm of Ira Haupt
& Co., of New York to act as in¬

City of

The*tompany to deliver

gas

ately with final plans

in

Winnipeg, Capital of Manitoba, is fications
now

called Greater

Co.

It

nipeg

involved

got

franchise

details

Winnipeg Gas

in

razzle

a

hassle

with

as

be

po¬

overtones.

The thing has
straightened out and
Winnipeg should develop
strong property, particularly

a

is not

er

available

Winnipeg
There

there.

are

calling

pow¬

posals
Gas

of

Co.,

Alberta

Ltd.

Transmission

and

and

Westcoast

the United

further

must

States; and,

to

consider the pro¬

export

about

200

7%

at

Canadian

against

15

Delhi

two

years

Petroleum

Dome

Provo

because
Gas

field

m.c.f.

is

of

special
37%

of

which

in

owns

of the Provost gas

Alberta.

in

around

it

Producers

turn owns 78%

daily into the United States from

Trans-Canada
Ontario

Natural

Dome

sells

Arthur

10.

should

|

against

=4*

gas

Company Inc.

is

It

Consumers

Union

Gas

franchises

thriving

benefit

An

Company Limited

Halifax

Hamilton

Kingston
Kitchener

Winnipeg

Ottawa

Private wire system




Quebec

Calgary
Edmonton

eager

New York

Gas

associ¬

Sheboygan Invest¬

Co., Inc., 607 North Eighth
Goodman, who has re¬

Mr.

cently been with Wayne Hummer
&

Co., in the past conducted his
investment

business

in

She¬

boygan.

Joins S. Romanoff
(Special to The Financial Chronicle)

WORCESTER, "Mass.—Myron J.
is

now

Inc., 340

with

S.

Roma¬

Main^Street.

HENRY

MEININGER, C.P.A.

ARNOLD MALKAN & CO, INC.
^

<

Underwriting and Private Financing

Maintaining Primary Markets

of

Erie

Turning

YORK 4, N. Y.

TELEPHONE:
TELETYPE:

N.

Y.

1-3762 and

DI

and

Sarnia,

sells

at

interesting group
which
St.

should

Lawrence

best known

ESTABLISHED

19.

1694&

has

Gas

STATE AND

MUNICIPAL BONDS

CORPORATE BONDS

towns

LOCAL STOCKS

are

provide

some

for Lakeland

which

can

market

to the

natural

gas

umphreu Col

Natural
now

West there
distributors

might want to look at.

The Roomso

be
RHODES-H AVERTY "BLDG.
are
you

The first-

WALNUT

0316

ATLANTA

4-0125

N. Y. 1-3763

demand for natural gas

common

f

St.

Kenneth

Has Joined Our Underwriting Department

as

bought for $2.80 per share.

two

ment

the

—

become

Hamilton,

and

the

The

stimulation

London

an

territory

here should

Business Established 1921

with

noff Co.,

Kingston,
Cornwall, Port Hope and Trenton,

Members of Leading Canadian Stock
Exchanges

ated

has

26 BROADWAY, NEW

of

Gas

towns

from

the

Goodman

Co.

series

Lake

Natural

franchises in

in

Vancouver

16

Gas

a

cities

Union

Seaway.

Affiliate:

Montreal

of

the

London

of

E.

Goodstein

embracing most of the

shore

northern

has

Co.

Ontario.

regarding Canadian ^Securities

(Special to The Financial Chronicle)

SHEBOYGAN, Wis.

program

$6,650,000
following:

in

Sheboygan Inv. Go.

own

of

partnership

Kenneth Goodman With

sells at 44.

Windsor,

invited from Dealers and Institutions

Toronto

total

limited

to

the firm.

nn

was

Lakeland

Gairdner &

a

financing

partnership,

Beaty

Exchange, will
Beaty to gen¬
and Judith I.

• •

far better stock to¬
then.

a

common

including

Wall Street, New York 5, N. Y.
WHitehall 4-7380

are

with¬

to, the Niagara Peninsula and Ot¬

Underwriters and Distributors of Canadian Securities

Inquiries

marketed

The

imminent utility is
busy bringing natural
to its old customers in Toron¬

tawa.

Gairdner %

Marshall,

N.

a

very

whose

eral

$200,000 Central Fire Station.

and

big

now

Stock

Richard

1957 high of 29%. Tech¬

a

nically it's
day than it
A

sell at

now

York

admit

$3,500,000 Port Facilities; $1,Street & Highway
Im¬
provements; $1,300,000 Sewerage;
$150,000 Public Works Depot, and

rapidly.

grow

New

area

William.

Fort

and

Common stocks

V

serves

Co., 42 Wall Street,
City, members of the

500,000

Northern

Gas

and

consists of the

including the big paper mills of
Abitibi, Kimberly Clark, Minne¬
sota & Ontario, and St. Lawrence
Corp. The company also serves the
copper industry at Sudbury and
Coppercliff; and the cities of Port
company

60

Line.

rapidly expanding industrial

interest

posal of Trans-Canada Pipe Lines
Ltd.

sells

Montreal.

ago.

Co., Ltd. to expand

export to
it

Southern

for

for

Greater

Canada) and in Quebec Natural uting companies in Ontario eager
Energy Board will be immediate¬
Gas, distributional franchise hold¬ to expand their takings from the
ly faced with decisions on pro¬
er

validated

The complete

at IIV2.
number of distrib¬

a

Caldwell,

&

York

Legal

out undue delay. The target date
is set for about Nov. 15, 1959.

sells

common

speci¬

and

project.

Mitchell, Bond Counsel
to the City, so that the bonds can

been

now

the

Rhoades

New

to be concluded simul¬

Trimble &

dazzle

rugged

for

are

taneously by

formerly called Win¬
Central Gas Co. and

was

and

litical

(main Albertan supplier to Trans-

the National

of Mc¬

-

jgas

major since low-cost hydro-electric

Trans-Canada

The

—

Carl M. Loeb, Rhoades
Underwrite $6,650,000
To Admit R. N. Beaty
propane
well. Through PlainsWestern
^Gas & Electric Co., Ltd.,- Pensacola
On
Aug.
1,
Carl
M.
Loeb,
Financing

Greater

Pipe Line, Alberta Gas Trunkline

placement and expansion.
Apart, from

841,334

Minn.

scale distributor not only of natu¬
ral gas but of manufactured and

bought for 10% today.

Oil, Ltd. is a respected
producer and, in addition, owns

on

suffi¬

for

be

can

Home

to

as

returns

investment,
attract

but

MINNEAPOLIS,

investment securities firm

Kendrick, Haseltine and Wilson,
Inc., with offices in Minneapolis,
Alexandria, Duluth and Faribault,
rbqto.
owns
gas reserves, some distrib¬
Minn., and Rapid City, S. D., is
Pacific
Petroleum
was
domi¬ uting pipelines and
provides
joining Dempsey-Tegeler & Com¬
nant in the formation of West- natural
gas in a number of com¬
pany it was announced by Jerome
coast
Transmission
(and, is the munities in Eastern British Colum¬
F.
Tegeler,
Senior
Partner
of
largest stockholder) and identi¬ bia. Stock sells at $6.
Dempsey-Tegeler & Co., and Ed¬
fied
with
the development and
The foregoing swift outline of
ward J. McKendrick, of McKend¬
marketing of gas from the Peace natural
gas in Canada is present¬
rick, Haseltine and Wilson, Inc.
River Area. Stock sells at around
ed in the belief: (1) that this in¬
Operations of the -five offices
13% against a high in 1957 of 39.
dustry is now On the threshold as
Dempsey-Tegeler & Co., begins
There's also a convertible 5x/2%
of a dynamic expansion; (2) that
July 17, 1959. The following of
bond
now
obtainable
at
103, a number of equities here are
McKendrick, Haseltine and Wil¬
which you might want to look at.
favorably priced for current pur^- son will serve as
Managers: EdAs for pipelines there are of
chase and (3) that the National
Whrd
J.
McKendrick, Raymond.
course the two big
ones, Westcoast
Energy Board, when
appointed W. Wilson and Fred S. Goth will
delivering gas to Vancouver and and
functioning, will remove some act as co-managers of the Minne¬
the Pacific Northwest, and Transof the uncertainties,
particularly apolis office. Gerald R. Wilson
Canada, a 2,290 mile line propel¬ with
respect to regulation
and will
manage the Alexandria office;
ling gas east from Alberta to To¬
export
sales, which have been Haviland Gilbert will be in
ronto and Ottawa and into Quebec
charge
over-hanging the industry and at
Province.
Duluth; Joseph Wells and An¬
Westcoast sold at 48
(4) that here is a section of the toinette
two years ago.
Naber, will co-manage
You can buy it North
American
equity market the Rapid City office and O.
at 18 today.
Page
Trans-Canada sells
where bargains may still be found
at 28V2.
Tripp will manage the Faribault
if you get all the
facts, and exer¬ office.
All
staff
members
and
Some of the liveliest vistas for
cise sound judgment in the.right
personnel of McKendrick, Hasel¬
expanded earning power are
places.
tine and Wilson also have joined
found among those companies ded¬
icated to bringing all this gas to
Dempsey-Tegeler & Co.
marketwise

Board.
This matter
would, no minent) are broad and diverse. Brandon, Manitoba; and the com¬
vestment banker with respect to
doubt, have already been attend¬ At the producing end
you might pany holds a natural gas franchise
the proposed $6,650,000 bond fi¬
ed to, but for the
preoccupation want to look at Canadian Husky (until 1977) in Saulte Ste. Marie,
of the Prime Minister with the
Great
Northern
Gas nancing of the city's port facilities,
which, w^ith large gas reserves in Ontario.
according to Oliver J. Semmes,
Queen's visit and the ceremonies Savanna
common sells in Toronto at 57/s and
Creeks, is in a position
and
City Manager, Pensacola.
pageantry
attendant
upon to
benefit importantly from ex¬ pays a 20c dividend. (There are
the opening of the St. Lawrence
two
series
of
Preliminary engineering plans
warrants.)
port. Canadian Husky is an inte¬ also
Seaway.
However that may be,
grated company with a fine man¬ Great Northern is definitely in are now in hand and approval has
the National Energy Bqard
line far a rise in earning power. been
given to proceed immedi¬
will, agement. Stocks sold at 23 in 1957;
in

Dempsey-Tegeler
Absorbs McKendrick

Sherritt-Gordon

Saskatchewan,

Calgary

con¬

5

1, GEORGIA

LONG DISTANCE 421

and Financial Chronicle

The Commercial

6

.

.

Thursday, July 16, 1959

.

(214)

ing

Banking in New Yotk from
A Supervisor's Viewpoint
By G. RUSSELL
New York State

New York's

new

for

need

the

direction

bear

a

that
to

legislation and statutes must be exemplary to

forestall

an

opinion

major

on a

part, I should think those
in
banking problems

have

0f

wonder if I

to

cause

of

these

This is

them

can

because each

so

dependency and thus have either
a
direct or an indirect effect on
the economic climate in jyhich all
0f

The superintendent, reviews the highly
banks, such as the interest rate
for savings accounts, taxation and mergers, and suggests that
in the light of the considerably known body of knowledge less
time should be wasted on unproductive disputes so that the
areas of disagreement can be minimized.

institutions operate.

our

particu a

]bi 11

Needless to say, a new

(§

into

thrust

tendent

midst

the

these

But

through

this number,
31

were

these

vetoed

At
note

were

became

of

Each

law.

I would
comments

point
my

like

early for

general

will

me

observathe

indicate

banks

or

federal

to

branch

new

granted

can
au-

to national
savings and

ioan

associations cannot help

have

a

direct effect

but
competing

on

state-chartered institutions. In ad-

dition,

recall that the

may

we

of the Board of Governors

to pass on new branches of

s|ate

member banks—incidentally considerably buttressed'by a federal

court decision recently in the Old
case—gives the Board of

Kent

Governors significant power when
state-chartered commercial banks
seek a merger and desire to retain all existing facilities,

many
years
of familiarity with
the objectives and problems of the

to
the

on

active

the Superintendent
are simply based on the fact that
there is a great deal to the job at
any time. I must say that my pred¬
tasks

by the

Governor, and
27

this

thorizations

realistic. We

at, as I say, not as a Johnny-comelately to the work of financial institutions, but as the result of

,

that

more
cjte the fact that

to follow. These have been arrived

eye-opening experi¬
we
say—"political

an

too

some

guiding principles which I expect

in—shall

science."

legis¬
four

the
lature,
by
of

ence

passed

should

power

is' not

which

tions

complicated

and

it

make

to

specific legislative proposals
would have his hands full and go

numerous

learn-

in

provide you with
means of judging

passes,

only valid
philosophy.

my

of

ify the Bank¬
ing Law. Of

time

as

specific matters
make the general

gome

bankers^ are un-r;pr0p0Siti0n

ing the attitudes and views of a
new
Superintendent. Of course
the specific policies and decisions
of the Banking Department will,

Superin¬

the

intro¬
duced to mod¬
s

that

derstandably interested

1959

^ tQ list
which

.

realize

I

exciting

there were 203

facing

ments

leaders in
of

our

the various segr

banking and savings

business.

Yet, I feel I am on the
threshold
of a
new
experience,

Many more
decisions

by

instances in which
federal authorities

condition the effectiveness

the State
York could be mentioned,

supervisory
0f New

of our

policies. in

and I am sure there is much to
hut thpse suffice
ecessors did a good job in keeping
C».
Kussen
u.arrf
passed
learn about supervisory responsi¬
the
by the legis¬
current, work of the Banking
lature required
extremely care¬ Department up to date. That is to bilities. I certainly do not pre- Achieving Systematic, Reasonable
Development
ful scrutiny by the Banking De¬ say, they did not sweep trouble¬ sume to have "all the answers."
We are all well aware of the
To begin with, there is the ob¬
partment prior to action by the some problems under the carpet
Governor.
T^is was exacting and nor pile them In the hall closet,, so vious fact that within the State of fact, I am sure, that there are
time-consuming
work, not only to speak, and leave them for the New York ther^ are many agen¬ presently pending in Congress a
for us but for the Governor's of¬ next njan. And that is fortunate, cies which have significant powers number of major legislative pro¬

the

31

fice

as

well.

|.because if Jleft-over work were

f

■

with

omnibus, the octopus or the
ominous bill—depending
on
the
views

about

of the

later.

this

But

observer.

At

this

for some

probably will
time

more

point

us

occupy

attention

and

These

I

time and which

are

much of

in

of

worthy

our

_'An

address

Annual

State

by

N.

June

Mr.

Clark

Convention

Bankers

26,

Association,

before

the

New

Lake,




It

one.'

of

an

the

impres¬
Comp¬

posit

Federal

the

Governors,

De¬

Corporation,

Insurance

the

Federal Home Loan Bank Board—
and

of

the

Education

Health,
with

unions—all
to

posals which would grant signifi¬
cant new powers to the federal
supervisory agencies. One of these,
of course, has to do with the ap¬
proval of bank mergers on which
bankers individually and through
their associations have already ex¬

must include the Depart¬

we

some

com¬

is

list

includes

troller of the Currency, the Board

Welfare

ginning that I have been exposed
to most of the problems of bank¬

1959.

The

sive

ment

I should like to state in the be¬

York

Spring

of

stitutions.

the future.

ment.
63rd

banking and savings in¬

our

over

added to the current jobs, I don't
introduced,
know that, we would ever see day¬
and among those which fell by the
light.
wayside,
was
the widely
dis¬
There are, nevertheless, contin¬
cussed bill dealing with the bank¬
ing structure—variously known as uing problems which have been

Included in the bills

the

been

has

federal
to

spent in contacts

supervisory authori¬

clarify

the

intend

New

of

its

federal
in

addition

State

Banking

these

York

and

credit

Congress

proliferation

of

supervi-

may

or

may

not

do in

new legislation, we are
with the fact that the fed¬

passing
faced

Department.
This

pressed their views. Today, how¬
ever, I should like to emphasize
the fact that regardless of what

eral

authorities

now

have

major

not have

tentions

and

State, Municipal and Other

3,818,348.47

Unearned Income

on

584,077.43

Income.

2,351,159.39

Other Liabilities.

49,767,383.66
175,483,995.24

Accrued Income Receivable.

Banking Houses.....

.....

%

DividendT^ayable in July, 1959...

430,875.00

Reserve for

Loans and Discounts

522,956.20

1,112,505.70

5,159,261.97

Contingencies

Capital Funds:

4,

Capital Stock. V. $11,968,750.00

Surplus.

I

interest.

1,450,727.37

su¬

and enlightened and

sound

to keep it so.

pose

At

this

take

note

point

like to"

should

I

that

of the fact

exhorted in

we

are

quarters to give
careful consideration, for example,
to anti-trust concepts in merger
some

applications.
cism

York

State

deals

with

criti¬

implied

The

that

be

to

seems

New

the

Banking Department
major applications as

though they were routine matters

applications are apt
quick and superficial
study. One misguided individual
recently wrote in a bankers' mag¬
azine
that
supervisory agencies

and that such

receive

to

only what the banking "giants"
want'1 them to see. I assure you

see

policy decisions by the
Department, whether it
or any other im¬

that major

Banking
be

mergers

on

portant question, are preceded by
is

incidentally

which

continuously

research

and

study

painstaking

on some

carried on
of our prob¬

lems.
While

to be

do not presume

we

that

based

be

will

on

be

can

as

be

obtained and this
accomplished in a

the

for

administer
with full
objectives

by the state legislature.
me to
the observa¬

relative newcomer
superintend¬
ents I have been impressed by the
tremendous amount of time and
effort that must be devoted by
bankers
and
by supervisors
to
that,

a

as

to the ranks of state

planning

for-the future develop¬
financial institutions.

ment of our

involves in many cases new

This

legislation to modernize our bank¬
ing laws when conditions have
so
changed that existing laws no

$427,807,015.95

and service to

for growth

public.

32,056,089.31

$427,807,015.95

much factual

leads

tential

6,087,339.31

Capital Funds

decisions

our

as

state's Banking Law

the
Total

that

convinced

am

in New York has been
I pro¬

pervision

longer effectively permit our in¬
stitutions to realize their full po¬

14,000,000.00

Undivided Profits
Other Assets.

on

intelligent,
pervision by state

tion

$388,043,510.15

State Taxes

of

of

ance

This

Accrued Federal and

66,281,905.34

ackowledge

the continu¬
effective su¬
banking de¬
partments. State bank supervision
must be so good that weaknesses
do not provide reason for expan¬
sion of the powers of the federal
government to protect the public

pend in large part

specified

Deposits
$128,551,236.67

pres¬

to be

existence

conscientious effort to

LIABILITIES

U.S. Government

by

banking systems will de¬

state

work

30, 1959

Cash and Due from

our

are

we

must

we

consideration

June

if

'continued

the

our

RESOURCES

stand

of

system of financial in¬

Thus,

realistic,
our

not

desiring the mainte¬

extension

stitutions.

that

do

we

in

and

sound

ent

New York do

in

we

monopoly on good in¬

a

ourselves
nance

data

Securities

•

*•

infallible, it cannot be stated too

Statement of Condition

Securities

ob¬

reception
accorded
me
in
Washington on my several visits

emphatically

1

and

to

the~

will

Banks....

aims

work in New York.

our

continue this
work and I may say at this time
that I have been encouraged by
fully

Naturally
general and banking in

tutionsnn

legislative session was should like to state that the Bank¬
and interesting one ing Department's Legislative
no
matter
what
your
views on Summary for 1959 will contain de¬
the
controversial issues. Insofar tailed information on changes in
the law effected by the last legis¬
as banking
lature.
was concerned,
mm
The

a

there.

controversial issues facing the

an

reasonable,
It is for this

in

fashion.

jectives of
I

institu¬

of

kinds

that considerable time and

effort

ties

re¬

aims

operate in New York

develop

systematic

with

mutual

some common

various

to

reason

of

differences of bpinions which have

expan¬

the

are

its powers in-

exercise

with

together

tions which

varied

Only
a recluse, it seems to me, could be
unaware of the problems and the
did not have some opinions.

sion of federal powers.

if

potent

us.

authorities

supervisory

work

spect and with

supervisory agencies
has important implications for all
and

interested
would

existence

The

office,

taking

after

soon

For my

and hopes efforts in
Referring to

his state's banks can develop
reasonable and systematic fashion, Mr. Clark warns bank

a

us

express

issue

state-federal cooperation so that
in

in

that

assume

of the facts of

one

life. It is imperative that state and
federal

economic significance of such institutioris as the savings and loan
expressed at an early date associations and credit unions opI should have the temerity erating under national charter,

was

hence.

year

to

the

This is

powers.

Surprisingly enough, however, in
some critical quarters amazement

Superintendent of Banks

fruit

sory

years.

problems which
all should, be resolved,

how

on

confront

up-to-date banking law, particularly as to

will

reasonable

be

ions

CLARK*

branch and holding company structure,
this

thirty

that time I had formed some opin-

banking superintendent is firmly dedicated to

an

than

agencies, of course, has been
the result of our adherence to the
dual
banjking system, and the
growing importance of some of
the federal agencies may be attributed to the rapidly increasing

institutions for
It would

savings

and

more

Failure

Modernize

to

Banking

Law

probably is not necessary to
bankers that in the State
York we have frequently

It

Lester E. Shippee, Chairnian

Pomeroy Day,

Raymond C.

John B.

Ball, President

Executive Vice President

Byrne, Chairman of the Executive Committee

remind

of New
made

to

The Connecticut Bank
AND TRUST COM PAN V

modernize

■'

**

Offices—ready to

serve

you—in 18 Connecticut communities

•

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Law

policy

on

bank

holdin

the

years

our

*

last

few

In

ability rfo enact new holding com
pany

MEMBER FEDERAL RESERVE SYSTEM

Banking

companies.
In

26

our

prescribes the merger an1
branching powers of our institu¬
tions, and which at the momen
entirely lacks a permanent legis
which

lative
HARTFORD, CONNECTICUT

because
of
repeated efforts

headlines

the

the failure of our

been
nf

a\d branch legislation ha
caused

flcrppmpnt

primarily by a lack
amons

the

variOUc

Volume

190

Number

5864

.

The Commercial and Financial Chronicle

.

.

(215)

types of banking and savings in¬

work

stitutions in Ne\V York State, and
this in turn has made the task of

will

our

the

legislature

difficult

most

a

one.

We

bear

must

in

mind

that

reasonable revision of bank¬

ing law requires

broad knowl¬
edge of the present and foresee¬
able

needs

coupled

a

the

of

with

state

economy

appreciation

an

of

the

practical significance of sug¬
gested changes in the law, which
we must admit is highly technical.
Members

of

State

our

Legisla¬
ture must deal with a variety of
important problems, such as tax¬
ation, housing, highways, public
~iedlth, and education to name but
few. It

would

be

asking a great
eal
of
hard-pressed legislators
to demand that they concentrate
their

efforts

which

peculiar

are

be

who work

lems

those

on

his should
us

laws

and

policies which
institutions

our

a matter of'fact, between
large
banks, /small banks, independent
banks, branch bank systems and

other

they must do to serve
public properly. - Growth, I

grow

as

is essential because our
economy is going to grow, and in

problems

to

our

nancial

institutions

must

qualified experts and that

have

believe

they

special provinces to protect.

versies

is

of

cause

the

environment

develop

which

groups

The "root

and credit system, fi¬

money

of banks' and financial intermedi¬

as

to

submit,

any

a

of

enable

these

contro¬

highly competitive
in

which

insti¬

our

accordingly! In so doing, they will
provide an essential ingredient for

tutions operate, but they build up
disagreements on what seem to

the

me

success

feller's

of

Governor

Rocke¬

»to

be

lems.

to

improve and
expand the economy of New York.
program

basic

economic

Just to cite

a

few,

prob¬

we

may

mention

disputes about the effects
varying methods of taxation,

of

Outlines Current Problems

the

Growth and the problems asso¬

effects

the

on

economy

of

ciated with it, have unfortunately

shifts of deposits from savings in¬
stitutions to commercial banks, or

caused

vice versa, and the effects on sav¬

State

both

and

intense

here

in

New

jYork

ers,

throughout the nation,

controversies

commercial

banks,

borrowers and lenders which

know

a

we now

great deal about how

financial

institutions

affect

reason

to

false

or

mis¬

leading statements about the roles
of

our

I

various

could

cite,

that have been

institutions.

between

from

savings and loan institutions and,

areas

of

is

May I remind

you

that the role

not

here.

will

opinion

banking.

with

publicly by

still
as

have

the

to

our

most

time and effort

on unproduc¬
dispute about how our bank¬
ing and savings institutions affect

each

other and the economy.
if I may, I would like

Now
call

attention
and

national

to

some

developments

tant effects

on

which, at the
us

a

our

feasible

time, point out

means

Continued

on

us

reasonable,
workable
and
farsighted suggestions and the bank¬
ing industry should be prepared
'o demonstrate that it has weeded

manifestly

any

workable

posals

all

ear

The

'n

unfair,
self-seeking
unfortunately
frequently.

too

pro¬
ap-

Superintendent of Banks" is
favorable position

uniquely

a

observe the

o

un¬

and

which

eractions

nstitutions

laintain

is

It

all

of

types

of

his

are

his

re-

duty

them

condition

their

oate

varied

which

ponsibility.
inancial

operations and in-

the

of

in

and

to

sound

antici-

to

requirements

for

the

uture.

To

this means, as a practical

me

matter, that
ot

only in
the

ard

state supervisor is
position to work to-

a
a

elimination

of

of

areas

disagreement among these varieies of institutions, but he has a
ositive duty to do so.
Presses for

Branch-Holding

Company

Legislation

Translating this
hing of immediate

into
somepractical

and

ignificance I

may

ntrance into

office,

irm

conviction

needed

aw

be

my

was

with the

our

Banking

that

to

insofar

ate

that

state

brought up-to-

branching
and
are concerned.

as

olding companies
explains the

This

announcement

hat I made

jointly with Senators
Mahoney and Cooke recently. We
have

undertaken

program to

posals

discuss legislative pro¬

concerning

structure

several

invitation

banking

our

the

with

trade

leaders

to

the

of

in

associations

State of Nc-w York.
an

extensive

an

the

And I extend

everyone

who

is

interested in these matters to sub¬

mit to
have

views

us

they would like to

weighed and considered.

Our program on

has

matter

.

this legislative

been

undertaken

in

order to establish

clearly and def¬
initely the viewpoints prevailing
in our banking and savings indus¬
It has also been initiated to

tries.

eliminate, insofar

as possible, mis¬
understanding of the practical ef¬

fects

be

to

from

expected

vision

of

come

convinced

Law.

our

We

that

a

re¬

have

be¬

misunder¬

Paint

standing and lack of knowledge of
the content of bills proposed in
the past have in too many cases
caused

of

This is the basic

for

reason

having commercial bankers, sav¬
ings bankers and savings and loan
representatives
meet
around
a
table and

common

pleased

to

we

observe

a

have

been

narrowing

at this point I am

hopeful that

efforts

fruit

At

will

least

say

lack

On barn sides. On boat hulls. On

we

that
of

bear

shall

failure

not
was

next
be

our

year.

able

caused

by

effort.

institutions which

supervision

come

under our1

anjJ to build a frame¬




and

houses.

look, paint

are

needed to make

covers

Wherever

you

and protects.

this

possible.

Commercial banks

help provide both.—

companies

The Chase Manhattan Bank, a

compete to produce paint prod¬

leading lender to American indus¬

ucts. This

try, is proud of the part banks play

Scores

to

My basic objectives are to safe¬
guard the financial health of the

cial services

THE\
cars

of

disagreement.
Although I shall have more to
say on this matter in the future,
area

America from stem to stern

unjustified fears in the
many
bankers in New

minds
York.

covers

a

of

private

competition makes for

wider choice of paints at

everyone can

prices

helping business, big and small,

better

afford.

Much^jnoney and

in

serve

the nation's needs for

Manhattan
bank
Chartered in 1799
Head Office: 18 Pine Street,

N. Y. 13

/

many

finan¬

paint.

the

institutions and

same

entitled to have put before it only -

out

on

have had,
have, impor¬

legislature is

a

to

recent

which

scene

and will continue to

banking prob¬
constantly

My point is that

desirable

tive

for my purpose

My plea is for the utiliza¬

To be sure,
differences of

and

find there is something new for
to learn.

is

disagreement

apparent to all of

day-by-day

our

this

social and economic objectives but
at least we will not be
wasting

to
necessary

have to

how

When

the

others.

saving banks,

the

trends

specific statements
made

operates.

we

on

we

have

tolerate

done,

facts

the

already accumu¬
lated and which is being
expanded
almost daily, there is no longer—
if, indeed, there ever was—any
we

system

knowledge

the

should be minimized.

economy
and
each
other.
My
point here is that with the knowl¬

edge

establish

our

the proponents of one type of in¬
growth of one^
type of institution as compared-to stitution as against others but that
result

tion of the

aries in this country has received
intensive study in recent years by

7

Member Federal Deposit Insurance Corporation

of attack-

page

29

Commercial

The

8

and Financial

Chronijfae

Chicago & North Western Railway

would

Company—Analysis—Halle

Stieglitz, 52 Wall Street, New York 5, N. Y.
Coca-Cola—Bulletin—Bregman, Cummings & Co.,

and

&

Dealer-Broker Investment
mentioned will be pleased
interested parties the following literature:

send

to

Industry

Auto

Survey

—

Street, New York 5, N. Y.
— Monthly
Investment letter

Burnham View

—

Burnham and

Chi¬

Monroe & Clark Streets,

Chicago, Dearborn,

of

90, 111.

cago

How

Outlook

U. Gobleigh—David

Cement Co. and

a

Steel

Latrobe

New York...

Olin Mathieson

List—Nine

Summer

selected

issues—Searight,

Wine

45

&

convertible

Chemical Corp.—Analysis—Dean

parison between the listed industrial stocks/ised in the DowJones Averages and the 35 over-the-counter industrial stocks
used in -the National Quotation Bureau Averages, both as to

potential

4, N. Y.
Street, New-York

—

Edwards & Hanly, 100

Report

North Franklin

Street, Hempstead, N. Y.
U. S. Banks—Comparative figures on 15 largest banks in

into

*

American Can

*

*

Company—Report—Reynolds & Co., 120 Broad¬

York 5, N. Y. Also available is a report on Sperry
comparative figures on Telephone Companies.
Gas Co.
Survey — Abraham & Co., 120
Broadway, New York 5, N. Y. Also in the same circular are
brief surveys of National Gypsum and Quaker Oats.
American Viscose Corporation—Circular—Schweickart & Co.,
29

Natural

of

Stern

Regents

Brothers

tainly not analyzed the situation
in the light of current facts. They

just want to get out.
When
they do the coast is clear, and if
the tuend is upward the best prof¬
its of all can be made in such

Company,

a

Randolph

30 Broad

of
&

University

of

It
sons

122

of

Securities Salesman's Corner

Corporation

—

&

Stern,

C. Allyn

& Co.,

Analysis—Herzfeld

Street, New York 4, N. Y.

La„ Salle Street, Chicago 3, 111.
Chemical Corp.—Circular—Singer,

Milk

Co., Inc., Mercantile Dallas Building, Dallas 1, Tex.
For

financial institutions

New Issues:

Hermes Electronics Co.

Electronics Capital Corp.

securities

a

human

nature

of

and

invest¬

Clifton Precision Products Co., Iric.
Telemeter Magnetics, Inc.

profitably assist his clients in the
handling
of
their ^investments.
This requires first of all a certain
maturity of personality. No man
can learn very much if he believes
that it is some sort of an unfavor¬
able blemish on his mental ca¬

Many times mistakes are

on

Sold
request

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




are

You Must Learn
You

made
usual.

have

mistake they

a

The

Teletype NY 1-376; 377; 378

best

made

them

and

of

them have been "beauts."
Carried
met

men

to the

extreme, I have
in this business who have

attempted to brainwash
into believing that a
mistake was not made when a

even

themselves

of judgment

was

clearly

attempt to ra¬
tionalize their own fumble, never
They

certain

of

in

sold

can

never

to

securities

clients

and

I

can

own

investment

belonging to
for

a

The opening

assure
annex

that the lessons I have learned
from some of these rather trying
situations have been most illumi¬

account

anyone

or

one

else; He

may

time hit luck, or make a big

play in some promotional venture,

of its

new

offices in the

STANDARD

nating.
*

just witnessed the mar¬
ket
career
of some
convertible
debenture bonds that were sold
I have

several years ago at 100.

f INANCIAL
BUILDING

They fi¬

2 West 45th St.

nally sold in the low 60s during the
business recession of 1957-58 and

quite
a

a

short

New York 36, N.Y.

This is
during

today are selling at 113.

OXford

ride down and up
span of about two and a

of

affairs

the

subject

company

Executive Offices at

vance

he

the

/

530 Fifth Avenue
BRANCHES:
tOS ANGELES •

PITTSBURGH

JHILADELP.HI A • DALLAS •

intelligently.
When

7-6677

Adjoining the Company's

to

successfully handle his

v

sSl/nnecmce

history
that I have

half years.
The clients that have
themselves and to .owned these bonds have varied in
reaction
to
these
market
others that they did jump to con¬ their
One man sold out in
clusions, or they omitted some gyrations.
important factor in their original the sixties and became so enraged
analysis. This type of individual that he wouldn't even discuss the

admitting

/o

you

business
some

CORPORATION

I have watched the market

not un¬

are

the

in

FINANCIAL

Before

Teach

successful men
in the investment business I be¬
lieve
will
agree
that they are
constantly
learning from their
own experiences and from others.
During the past few years alone,

yet to learn that if they have

have

Can

STANDARD

Most of the very

made by

salesmen

some

to

ready to learn anything.

and

business

own

or

undertake if it is
accomplished, successfully.

there

Yet

rationalizes

failures, either to himself
others, is psychologically

his

tasks anyone can

indicated.

Members New York Security Dealers Association

HAnover 2-2400

ity to become educated in any dif¬
ficult undertaking — and that is

humility. No man who

everyone. The investment of capi¬
tal is one of the most demanding

be

term he lacks
fundamental of the abil¬

the first

pacity 6r his ability if he has to
admit that he has made a mistake.

reversal

Marshall Industries

'

nique.

but over the longer

(some partners
of investment firms as well) who

Poly Industries Inc.
The Kratter Corporation
Purepac Corporation
Plastic Materials & Polymers, Inc.
Technical Operations, Incorporated

Prospectus

the ability to

that gives him

ence

this

FXR, Inc.

Bought

instances, it is the ca¬

pacity of the salesman of securi¬
ties to learn the lessons of experi¬

to

^

this that

The Educational Process
most

In

South

Recent

as

'

ments, markets, and trading tech¬

Co., 1009 Baltimore Avenue, Kansas City
a circular on City of Watertown,

Street, Boston 9, Mass. Also^jpuJhe same circular
is an analysis of Erie Railroad.
^
Champion Spark Plug Co.—Memorandum—Rauscher, Pierce
&

such

situation.

learning simple les¬

from

Bonds—Analysis—

Bean & Mackie,
Inc., 40 Exchange Place, New York 5, N. Y.
Chadbourn Gotham—Analysis—du Pont, Homsey & Company,
31

is

By JOHN DUTTON

Texas

Central Maine Power Co.—Memorandum—A.

Century

recovery type

—

5, Mo.
Also available is
S. Dak., Bonds.
Canal

people wish to

salesman increases his knowledge

Broadway, New York 6, N. Y.

Board

these

company's earnings are up, down
or stationary, and they have
cer¬

way, New
Rand and

American

people who get hooked
a market high. On

stock at

a

out because tney are tired
emotionally. Most of them could
not tell you whether the subject

Components—Report—Barius Incorporated, 90 Broad
Y.
Wilson & Co. Inc.—Analysis—Hayden, Stone & Co.;' 25 Broad
Street, New York 4, N. Y.^Also available is a memorandum
on Coastal
States Gas Producing Co.

♦

are

get

Street, New York 4, N.

•

N. Y.

sell

plain foolishness.
usually a substantial

recovery

a

United

the

Company, 16 Wall Street, New York 15,

U. S.—Bankers Trust

»

when
this
when I get

just

number of

& Co. Incorpo¬

rated, 20 Broad Street, New York 5, N. Y.
Topp Industries Inc. — Analysis — Adams-Fastnow
215 West 7th Street, Los Angeles 14, Calif.

/

rfr. Y.

5,

Stocks Behind the Market

Wall

& Co./a14

Hammill

Industry—ReporWShearson,

Steel

"I'll

is

There

times

are,

of

cliche
—even"

Meeds, 120 Broadway, New York
Stokely-Van Camp Inc. — Analysis

Street, New York 4, N. Y.
Tilo Roofing Company, Inc.—Analysis—Blair

better than ever.

was

There

Witter & Co.,

Company—Analysis—Laird, Bissell &
5, N. Y.
— Hardy & Co., 30 Broad

Manufacturing

a

point in the stock) that the profit

Purina

Singer

and market performance over a 20-year period—
National Quotation Bureau, Inc., 46 Front Street, New York

through

got

"

Francisco 6, Calif.

yield

bonds

point (which was con¬
with a similar resistance

nected

Bridge Plaza, North, Long Island City 1, N. Y.
Company—Report—Yates, Heitner & Woods,
Paul Brown Building, St Louis 1, Mo.
Revlon, Inc.—Report—A. M. Kidder & Co., Inc., 1 Wall Street,
New York 5,°N. Y.

Over-the-Counter Index—Folder showing an up-to-date com¬

chance to get
without taking

resistance

Corporation—Analysis—Walter R. Blaha & Company,

Ralston

a

into consideration that once these

Inc., 29-09

Industry—Analysis—Doherty Roadhouse & Co.,

Bay Street, Torontb, Ont., Canada.

335

(when they had

Ginberg & Co.,
York 6, N. Y.
Analysis'— Bache & Co., 36 Wall Street,

Montgomery Street, San

Pearson

saw

their money back)

Seventh Street, Los

West

N. Y.

O'Connor, Inc., 115 Broadway, New York 6,
Ontario

Ahalt

7

5, N. Y.
Corporation—Bulletin—Robert H. Huff & Co., 210
Angeles 14, Calif.

Nationwide

1959

Inc.—Analysis—H. Hentz & Co., 72
Also available is a memo¬

York

New

Stocks—Current Information — Yamaichi Securities
Company of New Yprk, Inc., Ill Broadway, New York 7,

when

eighties

and

that the market was
turning and the affairs of the
company Were beginning to show
substantial improvement. Others
made the mistake of selling out

Company—Bulletin—Strauss,
—

they

Several others averaged in

seventies

they

Inc., 115 Broadway, New
Maytag, Company

back again, to
paid for their

and

than

more

bonds.

Street, New York 5, N. Y.
randum on Carter Products.

of the Steel Industry.

survey

of 40%,

that

through

right

on

customers

other

some

held

who

&

or

have

I

Corporation—Analysis—W. E. Hutton & Co.,
New York 4, N. Y.

Wall

it

together occasionally.

ness

Wall Street,

Laboratory for Electronics,

Expenditures in
Japan for 1959 and brief analyses of
Mitsubishi Heavy Industries, Nippon Flour Mills Co., Iwaki

Japanese

lieve

Trust

Manville

probably cause him

spleen on me and, be¬
not, we still do busi¬

to vent his

the

14

never to men¬
His hatred' for

him.

to

himself would

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

Ltd., 61 Broadway, New York 6, N. Y.
Also
review of the outlook for Plant and Equipment

it

tion

Utility Common Stocks.

Johns

and

tially above par)

dip

Irving

Securities Co.,
a

Broeck

Vanden

of

bunch

impression on this customer.
experience (now
the same bonds are substan¬

any

that

N. Y. Also in the same
circular eyre brief surveys of S. D. Warren Co., Nalco Chem¬
ical Co., Automatic Canteen Co. of America and Electric

McKay, Inc., 119 We3t 40th Street, New York, N. Y.—$2.50.
Japanese Stock Market — Study of changes in postwar years—
In current issue of "Nomura's Investors Beacon"—Nomura
available is

L.

Paper—Review—Alfred

caboodle
highbinders,
thieves, r Facts,
and

kit

whole
a

I also know from

Co., 55 Liberty Street, New York 5,

—

Get Rich Buying Stocks—Dr. Ira

to

Purcell & Co., 50 Broadway,

ard Packaging Corp., and Standard Oil of New Jersey.
Godfrey Company—Analysis—Bacon, Whipple & Co., 135 South
La Salle Street, Chicago 3, 111.
Gold Seal Products Inc. — Analysis — S. D. Fuller & Co., 26
Broadway, New York 4, N. Y.
„—.
Heyden Newport Chemical — Review—Ira Haupt & Co., Ill
Broadway, New York 6, N. Y.
Ilford Limited—Analysis—New York Hanseatic Corporation,
120 Broadway, New York 5, N. Y.
International

course,

can

one

earnings, strong financial state¬
ment,
mistakes that were cor¬
rected, none of these thipgs made

4, N. Y.
Also in the same circular are data on
Philco Corp., Atchison, Topeka & Santa Fe Railway, Stand¬

Report—Morgan, Rogers &
Roberts. Inc., 64 Wall Street, New York 5, N. Y.
Capital Goods—The Key to the Market's Future—Study—Vilas
& Hickey, 26 Broadway, New York 4, N. Y.
Hides Futures Market—Booklet—Commodity Exchange, Inc.,
81 Broad Street, New York 4, N. Y.
Market

and

Business

—-

not

of

convince
the
president of this
its board of directors,

charlatans,

Co., 30 Broad

&

York

New

Company, 15 Broad Street, New York 5, N. Y.
Also avail¬
able in current Foreign Letter.
Business & Economic Review—Discussion—The First National
Bank

Street, New York 4, N. Y.
General Motors Corp. — Data

-

Wall

Hornblower & Weeks, 40

—

Co.,

are

Street, New York 5, N. Y.
Co.—Memorandum—R. S. Dickson

15 Broad

Recommendations & Literature
It it understood that the firms

Noyes &

the

and

back,

buy
no

that

him

74 Trinity

not

today

company,

Place, New York 6, N. Y.
Craig Systems, Inc.—Memorandum—Hemphill,
Drackett

V/

Thursday, July 16, 1959

...

.

(216)

bonds started

to

again, after he had sold out,
more
indignant.- He

became

\

ELHIRA

ad¬

RESOURCES

*50,000,000

Number 5864

190

Volume

.

.

.

The Commercial and Financial Chronicle

(217)

time and
the

From

amazing.

Washington

Editors

Lyndon

has

worth
a

of

their

'Letter to the

the

of

the

House

Senate

as

it

com¬

Con¬

a

is

today.
of the Liberal
of

Wisconsin,
Humphrey'
of
Minnesota,
and
Clarke
of
Pennsylvania.
This
country would be headed even
more

is

for the welfare state.

so

Practically every observer was
saying after the Democratic vic¬

Johnson, the "field by them.
the Senate,

leader

in

needed

are

Suppose they were
stripe as Proxmire

Republicans

and

compromisers and

composed

gress

item.
of

are

of

tory last November that the coun¬
try was in for it. I think you can

With McDonald Evans
-{Special to The Financial Chronicle)

thank

Lyndon Johnson and Sam
Rayburn that it hasn't been.
|
When
gress

the

is

shown

this

record- of

finally

they

in,

have

it

Con¬

will

dope

KANSAS CITY, Mo.
A.

be

timore

thing will

of

We

members

formerly with Bonds, Inc.

told

men.

were

Interest

had

and

Exempt, in the opinion of counsel, under present laws from hU Federal Income Taxes

reason

every

expect that

the

New Issue

Con¬

new

gress

July 16, 1959

over¬

.

with

flowing

radical Demo¬

$31,000,000

crats from the

and

North
Middle

West,

were

sive
h

spenders,
they

t

a

the^

budget

vbring

inflation.

Carlisle

on

Bargeron

Major Thoroughfare Construction Bonds, Series M

They
without

reckoned
of

6%, 33/4%, 3%, 3.10%, 3.20%, 3'/4%, 3.30%, 3.40%, 3'/2%, and 3.60%

wreck

would

and

State of Ohio

exces¬

the

leadership

Dated August 15, 1959

Due March 15 and

Lyndon Johnson, and also Sam

Raybuyn,
The

Speaker

prospects

are

the House.

of

appropriate

tember ,15 and March 15, at the office of the Treasurer of State of

Ohi6, in Columbus, Ohio, at The First National
City Bank of New York, New York City, at The Northern Trust Company, Chicago, 111., at The Ohio
National Bank of Columbus, Columbus, Ohio, or
fit The Union Commerce Bank, Cleveland, Ohio.

The

principal of and interest on the bonds are payable fromjees, excises or license taxes, levied by the State
Ohio, relating to registration, operation or use of vehicles on public highways, or to fuels used for propelling
such vehicles. Provision has been made by law and
by the State Constitution for the setting aside of a
sufficient amount of said fees, excises or license taxes each
year to pay bond interest and principal becoming
due in that year, without other appropriations.

of

But because

politics is what it is,
Mr. Johnson get a pat on the

does

back
the

to

from

Administration

the

or

Republicans for this? No, they
chiding him for not being able

are

accomplish-

cratic party

the

what

Demo¬

AMOUNTS, MATURITIES, RATES, PRICES AND YIELDS

said it would accom¬

plish.

Yield

Coupon

ha^fc- coined

They
"Can't

Amount

slogan

a

do

Congress," and every
campaign literature
theme.
Well, it so
happens the Democrats with their
overwhelming majorities in both
houses can do pretty much as they
please, if they stick together. Men
like Johnson and Rayburn have

Rate

or

1960

6%

1961

6

2.60

1,190,000

1962

6

1,190,000

1963

3

1,190,000

1964

Amount

2.40%

1960

6%

2.50%

1961

6

2.70

1,190,000

1962

33/4

100

1,190,000

1963

3

1,190,000

1964

-■

3.15

1,190,000

1965

3.20

100

100

1,190,000

1966

3.30

100

1965

3.20

31/4

1,195,000

1967

3.40

3.35

1,195,000

1968

3.40

3.45

•

and' either

the

veto

threatens
bill.

be cut from

penny

to

let

But

1,195,000

1967

3.40

100

1968

3.40

3.45

1,195,000

1969

3Vz

100

1,195,000

1969

31/2

100

1970

3Vi

100

1,195,000

1970

31/*

100

1,195,000

1971

3V2

3.55

1,195,000

1971

3.60

100

1,195,000

1972

3.60

1,195,000

1972

3.60

doesn't

Eisenhower
will have

(®tyre offer these bonds when,

as

and if issued and received by

and

undersigned

as are

registered dealers and

C. J. Devine
with

their

"Can't do"
undermine John¬

campaign is to
son.

&

Co.

John Nuveen & Co.

in

last

the

Americans

which

Action,
mer

Clark, Dodge

&

in

ticularly

campaign."

a

for¬

Dealers,

Roosevelt's 'day. and:

small

in

numbers

but

.

and

Rayburn's

scalp.

They would adopt Butler as their
leader.

Co.

&

Co.

American Securities Corporation

Hayden, Stone & Co.

Weeden & Co.

Butler

has

elected by anyone

Incorporated

Stroud & Company

F. W. Craigie & Co.

Spencer Trask & Co.

Ball, Burge & Kraus

Incorporated

F>hey, Clark & Co.
Rand & Co.

Field, Richards & Co.

Fahnestock

E. F. Hutton & Company

Co.

&

Hayden, Miller

&

Co.

Wallace, Geruldsen

The Fii&t Cleveland Corporation

King, Quirk & Co.

Wm. J. Mericka

Co., Inc.

&

&

Co.

Glickenhaus & Lembo

Merrill, Turben & Co., Inc.

Incorporated

Andrews

&

Wells, Inc.

J. Barth & Co.

Blunt Ellis

i*

Freeman & Company

&

Simmons

Dempsey-Tegeler
.

Fulton Reid & Co., Inc.

Ginther

&

Company

&

Co.

&

Co.

&

Co.

.

Charles King

of their

strong in publicity, are after ijoth
Johnson's

&

par¬

represents

who find it hard to let go

glory,

L. F. Rothschild

Ladenblrg, Thalmann

Carl M. Loeb, Rhoades & Co.

Co.

Democratic

for

of New

group

Hutzler

&

Paul

Butler, of the
Democratic
National
Committee,
who has undertaken to be a policy
maker instead of a paid employe,
has launched a campaign against
Johnson
and
Hayburn
for
not
doing for the people "what they
for

Salomon Bros.

(Incorporated)

Baxter & Company

Chairman

The

offering these securities in compliance with the Securities Laws of such State.

Eastman Dillon, Union Securities & Co.

the Republicans are accom¬

voted

are

Republicans

hard time

a

it.

plishing

and subject to the approval of all legal proceedings by the Attorney General of

of Ohio and Squire, Sanders & Dempsey, Attorneys of Cleveland, Ohio. Such offering is not made hereby, but only by.means of
the offering circular, copies of which may. be obtained in any State in which this announcement is circulated, from only such of the

selling it to
the
country.
Some
Republicans
agree with this and have a hard
if not impossible time defending
All

us,

the State

sense

the

*Not reofFered

foreign aid

a

make

and

*

(Accrued interest to be added)

or

into special session.

It

*

one

bill and he threatens to call Con¬
gress

100

1,195",000

points out, and legiti¬
mately so, that every time the
Democrats vote more money in a
domestic
appropriation bill Mr.
Eisenhower screams to high heav¬
does

3.10

1,195,000

.

Johnson

ens

100

N

100

1966

<

2.90
.

3.10

1,190,000

session.

or

Price

1,190,000

1,190,000

they cut

Rate

$1,190,000

restraint.

admirable

an

when

Yet

Sept. 15

2.80

.

the foreign
aid bill, Eisenhower denounces it
as a catastrophe and threatens to
call the Congress back in special

exercised

Yield

Coupon

Price

1,190,000

this

carries

March 15

11,190,000

their

week

September 15

Coupon bonds in the denomination of $1,000 each, registrable as to principal only, and exchangeable for fully registered bonds.
Coupon bonds payable as to principal and interest (first coupon payable March 15,1960) and semi-annually thereafter Sep¬

that this Con¬

less than
the Administration asked for, cer¬
tainly not much more. They have
proven to be far from the reck¬
less spenders that they were sup¬
posed to be.
">
will

gress

never

KormenDi

&

Co., Inc.

New York Hanseatic Corporation

Cutter, Bennett & Co.

Butcher & Sherrerd

DeHaven & Townsend, Crouter & Bodine

Courts

Harkness

&

Hill

Incorporated

Joseph, Mellen &

mUler, Inc.

William R. Staats

&

Co.

Anderson & Strudwick

be^n

to public office.

Emanuel, Deetje^' & Co.

J. B. Hanauer & Co.

Janney, Dulles & Battles,

todf

Mason-Hagan, Inc.

Then there is the Committee for"
an

Efficient

liberal
issue

a

as

Congress

they

pontifical

which

is

They

can

statement

any

come.




Park, Ryan, Inc.

Stern, Lauer & Co.

>

Taylor and Company

Kenneth

Miawest Stock Exchange.

that any¬

be passed.

ever

—

joined the staff of

Avenue,

good job. Except for labor legisla¬

tion, and here I doubt

has

McDonald, Evans & Co., 1009 Bal¬

very

a

Sickle

right to wonder about the

a

manner

to

Both

promisers

helping along with the fight on
Johnson and Rayburn
they should
thank their stars that the leader¬
ship

Senator

front page play in
"Post".
It
is

The

Instead

By C. BARGERON

Democratic

a

statement is about

Aheadof the News
•

get

^Washington

9

Townsend,

DaSney

&

Tyson

of

the

He

was

The Commercial and Financial Chronicle

10

Building

Second U.S.A.

a

••

But

while

'

lose

their

.

long-term construction out¬
coming up in but a few
months, Dr. Smith previews the fantastic construction growth

numbers

analyzing the bright short

After

from

Thursday, July 16, 1959

.

Korean

the

the

war,

it

when

The

paused to re-group.

colonel

the

of

regiment

was

quite pleased
with ^the per¬
of

formance
his

when

ried

his

that pace, we

a

pointed out to him that in effect
he was
suggesting that we en¬

were

units

the

North.

on
Dr.

George C. Smith

That, after all,
where

the Chinese were

it

another

when

East.

the

unit reported

Chinese

fire

But when a

third

receiving

was

from

supposed to

wasn't much wor¬

colonel

The

ried

report told of one of his com¬
panies facing Chinese troops to
the West, he began to wonder if
hadn't pushed

he

forward

in

Just

little too far

a

salient.

as

a

he

debating

was

back, another unit
reported that it was facing Chinnese
troops to the South;
The
colonel immediately dashed to the
whether to pull

radio

nearest

and

got off

a

mes¬

to
division
headquarters.
"Send help quick," he said, "we're
hemmed in by the enemy on all

sage

sides!"
His

general

got

the

message,

for

and studied the situation maps
was

indeed true

that the regiment was

facing Chi¬

few minutes.

in "all

nese

general

the

But

need to worry. He

saw no

Chinese

a

It

directions.

radioed back:

You've got

"Relax.

completely

company

All

of
was

post and

surrounded

by

lamp¬

construction

reasoning.

many

forecasting, one

That leaves

struction has been in

a

a

small

housing

as

the prin¬

boom since

where speculation may
occur.
But
here, too, there
is
surprisingly little building out in
cipal

well aware, con¬

are

There is

tenants.

major

example keeps recurring.
As

area

example

used
en

find

in the
in the

government's work in place

they

a

Every

year

new

hav£ a buyer. Others build
perhaps a month or so ahead of
sales; if the flow of sales turns
down, they curtail their flow of

Even three recessions have

not
been able
to interrupt
steady upward movement.

prosperous
of great

source

most

condition

this

house

concerned

fact that it has lasted for

has

dampened

the

with

be

put

up

ahead
sense

the

of

is

one,

sbniM faii

of

builders

but

there

even

are

depend

but their places-have been

funds;

by others.

nanced

if

others.

on

this
Most

borrowed

new

taken

Common

out of past

New

address by
York Society

New

York

Dr. Smith before the
of Security Analysts',

City,
 June 30, 1959.


construction
is
fi¬
sales, and it is
financially impossible for them to

-

push ahead too far. And the generally conservative judgment of

for

Now that the Sixties are

almost

here, and have been so

wiJl be in

most

a

rising

spectacular

im¬

the next couple of
should
occur
in
factory
buildings. The late lamented re¬
cession was heralded by a decline
in contracts for new factory build¬

making

ment we are now

or con¬

templating will be producing far
beyond the next decade. The longrange future will be with us for
a long time, obviously; now is the
time to plan for it.
By

the year 2000 (only a 40mortgage away) the popula¬

ings that began early in 1957, and

year

only recently
begun to perk up. As business in¬
creases its
plans for spending on
new
plant
and equipment,
big

tion of the United States has been

percentage gains are to be ex¬
pected
for
industrial
building.
Outlays for this type of building
in 1960 could easily be 75%. above

2000

this

of

has

category,

year's level, and even an in¬
of 100% is not impossible.

last

crease

Commercial
of

buildings,

non-residential

the

largest
building

at

alive

today,

will have two in

we

A. D.
be

fore

explosion will

population

This
not

For every person

million.

340

conservatively)

(again

estimated

unmixed blessing.

an

Be¬
in¬

else makes the

someone

comparison for me, I will
million pop¬

vidious

observe that this 340

ulation

is

today.

But

close

pretty

while

we

to India's
will have

problems, I don't for a minute be¬
lieve that our case will parallel
that of India. It hasn't so far, and
it

the future.

won't in

big difference, unquestion¬

The

ably, lies in our economic system,
which gives us the incentive and
the means to expand, to provide

to

only for more people but

not

give those of us already here a
continually expanding standard of
and

So long as we preserve
perfect this system, popula¬

tion

growth

living.

than

can

be a boon rather

burden.

a

There's

question

no

that

ex¬

panding domestic markets will be
the dominant factor
in our fu¬
ture economy.
To take only one
example, look at the prospects for
housing.
Million

164

New

Houses

in

40 Years

To
our

living quarters for
will

provide

additional population, we

have

build

to

48

million

new

dwelling units by the year 2000.
But this is only a starting figure,
because there must also be some
for

of

replacement

for

provision
houses

reasons

ranging

from

highway building to obsolescence,
from tornados to termites.
'/■.

upward. The most recent
only last year, where

'don't

We

have

in

back

to

outlays,

go

history

struction

to

example of restrictive ac¬

an

Contracts

tougher

action

ministrative)
to

The

it

is

the

gories,
several
All

of

ocean

look

the

home

4%%
loans,

te&rs spilled

same

willing

interest rate
at

veterans

to

pay

a

time
were

double

all, the short-term out¬
for
construction
is
very

total

contracts

struction

work

and

on

when

<

The short-term

that

followed

G.I.

perfectly

rate

con¬

performed.

Soaring

over

the

for total

/

by

the

Sixties

And

Soaring

we

Sixties.

we

will

housing
have

to

that

still

exis.t,

step up replace¬

ment somehow.

In

in

prospects here. It

entirely possible that
ways and means of

find

the replacement rate
pitifully small 400,000 a
that I ha^e assumed in this
example. If we are to get rid of
the enormous quantities of sub¬

ade that it hardly seems necessary

the

is

it

will

increasing

of

re-hash

a

year

expected of the next dec¬

to

1.3

above the

So much has been written, and so
much is

about

need.-

standard

outlook will be

>

will have to be at some¬
where around 2 million a year by
the end of the period to meet the

in

bright indeed, with 1959 scheduled
to set new all time records for

ad¬

proposals to make small increases
in

running \\% ahead of
utility plans call for
years' expansion, at least.

are

and

rate

of

million

year, we

hauling.

and

light and

replacement needs to
requirement for new popula¬
tion, we find a total of 64 million
new housing starts in the next 40
years.
If we start the period at
Adding

the

of

always subject

pulling

political

and

for electric

systems, the second largest
the
heavy engineering cate¬

1958,

legislative

(both

1959, and further

power

'

.

for

expansion is slated for next year.

tight money and
credit
conditions.
The
paradoxical
decline
in
housing
activity during the prosperity of
1956 and 1957 will serve nicely to
through

illustrate.,

including some non-con¬
costs, are estimated at

billion

$7.1

a

market.

some,

*Aij

better.

years

in

Th/re are many factors which
keerf builders from getting too far

14 years

pessimism

Since

starts.

can

not

but

only
for
construction
nearly everything else.

provement in

typical
Housing a Function of Government
a
few
And,
because
housing - is
so
months,
the
builder can react
highly dependent on government
quickly to market changes.

housing

was
to

satisfaction

it,
but as always, a few expressed
unhappiness. At any given time
from
1946 on,
you could
find a
handful of people plaintively ask¬
ing. "Yes, but can it last?"
The
people

level

The

trend.

Outlook

high

very

lot

a

of construction

fabricating indus¬

further

tion,

This

strongly

market,

new

the wet blanket to damp¬

as

much

developers build from models, and
undertake construction only when

series.

impor¬

This, means

combined.

tremendous

was

booms.

front of the assured market. Many

II.

set

ah

34
million,
roughly
to the '> total present
of /Canada, Cuba and

,

since

War

has

1946

not

population will grow

our

by

thoroughly
discussed
by so many analysts,
Sees Rise in Factory Building
perhaps it's time to look even be¬
Meantime, other important types yond them. Much of the invest¬
be

could

ahead

far

course.

A modest estimate for replace¬
ing, highway construction should
provide an even bigger spur to ment is 400,000 units a year.
I
the
economy
this year than it say modest advisedly, because this
all sorts of stimulants were ap¬
did in
1958. The value of con-: is a replacement rate of only about
plied to boost home-building as' a
% of 1% a year; at this snail's
recession a n't i d o t e—stimulants tracts awarded this year mill be
ar, but
which were highly effective, too. about the same as last
pace it would take over 130 years
the
volume
of work performed
just to replace our present hous¬
In prosperous times, housing is
will rise
more
than 20%. Total
ing stock.

economy

record, both
Dodge contract figures and

World

Sixties,

he

have located at least their

owners

coqldn't get out, have to

be careful oFroside-out

In

a

1956,

in

speculative element in commercial
buildings, but even here, it is a
rare
shopping
center or office
building that is put up before the

including the drunk

us,

decline

possible

order for owners.

surrounded!"

who

and next. If favorable legis¬
lation is forthcoming, the record

rest of 1959 and for 1960, we seem
a

due

servative

prosperity. So many powerful in¬ ^gtoups, are continuing their steady
fluences are pushing upward right
post-war rise. Store buildings ac¬
now
that it would be extremely count for
most of the .increase
Look refuge in the statement that difficult for any real turnaround this
year, and prospects are that
the nation couldn't absorb half the to occur in the next* 18
months this pattern will continue in the
housing it was building anyway.
or so.
short-range future, with perhaps
This all-too-frequent idea that
In general, construction activity some improvement also in office
the construction industry is build¬ should
parallel the pattern of the buildings after a decline early in
ing way out in front of its market, economy. In normal times, new 1959.
and is likely to fall flat on
its construction put in place runs
The second largest non-residen¬
foundation, seems to me to be in a around 11 or 12% of the gross
tial category, school buildings, is
class with the colonel's inverted national
product, and there is no something
of- a
puzzle.
School
reasoning. It is exactly the wrong reason to expect a shift in the pat¬
contracts
so
far this year have
point of view, and it stems, I tern now.
been running behind last year, de¬
think, from a mistaken theory on
But construction
is many dif¬
spite forecasts of increases. The
the part
of people who should ferent things, and not all parts
reason probably lies in the finan¬
know better that the construction
of the industry behave in the same
cial difficulties of state and local
industry turns out a tremendous way as the aggregate. Housing, in
governments, and some indica¬
number of building projects and
particular, is sometimes out of tions of reluctance on the part of
then sets about finding buyers for
step with the rest of the industry. voters to go along with higher
them.
If
this
seems
paradoxical, you local
budgets, taxes and bond is¬
must remember that housing is in
Extent of Non-Speculation
sues.
Despite the decline, which
something of an artificial position, can only
be temporary, school
And, of course, that isn't the
serving in changing capacities—
way it works at all.
Many of the sometimes as a first stage rocket, building this year will still pro¬
vide an enormous market of about
major categories of construction
sometimes as a wet blanket, and
two and three quarters billion dol¬
have
no
speculative
element
always as a political football.
I lars.
whatever.
The whole field
of
won't
apologize
for using
this
heavy engineering — highways,
Hospital building this year will
mixed
metaphor,
because these
show very' sharp gains over last
dams,
public utilities — is non- terms
express
the contradictory
speculative.
So is much of the
year. Total contracts for hospitals
and unsatisfactory positon of home
non-residential building: schools,
in 1959 may come very close to *a
building in our political economy.
hospitals, factories, churches, jails,
billion dollars.
In recessions, housing is looked
public buildings, all are built on
In the field of heavy engineer¬
upon as a means of rocketing the

a

Chi¬

nese

was

too

Short Run

of

1959, this will only be

year

relating construction pros¬
to the business outlook, it
necessary
to
spend
much
on
the short-term. For the

assured

in

a

versa.

In

and larger

low

gineer an immediate housing de¬
cline in 1955 in order to prevent

reporting that
facing

should immediately

in the Sixties, with
baby crops to fol¬
A fairly con¬
estimate is that in the

riagable age
new

sec¬

Australia

what happens to business in
affects construction, and

begin restrictive measures to cut pects
down the rate of home-building isn't
in
1955.
When it was unkindly "time

levels.

the

hotising to be severe. The rate
starts might drop to a million
a quarter a year,' but
I think
that is about rock bottom for this

by general business con¬
the

Good

half of

in

people who will be reaching mar-

and

general
vice

it

in

ditions. Construction is by far

try;

somewhat

off

baby crops of the Forties: young

but

rate)

whether

current

likely, housing starts

seems

quite like that of the Fif¬
ties, only more so—booming pop¬
ulation growths. The groundwork
was
established in the bumper

about
equivalent
population

In this
is. like any

construction

nation's largest

its

Sixties

The main feature of the
will be

repetition of the pattern of past
periods of prosperity.
But I don't expect the decline

industry. The point I want
make
is
that overbuilding—

affected

high

doubt

that

fact.

in

of

of risk.-

construction is, however,

argument reached its peak at a
Washington meeting. Housing was
doing pretty well that year, and
one man stoutly argued that since
the nation simply couldn't sustain

companies

they

question

frequent

most

at

however,

this

a

construc¬
tion outlook. What lies ahead for

the chronic pessimists is:
Aren't we in great danger of over¬
building?"
In 1955, I recall, the

report came in
from one of

ond

tant consideration in the

The

he wasn't wor¬

fall

other

asked by

and

men,

as

do

autos, TV sets, or houses.

record high.
During

If,

meaning building
of the market—is

some

remain

will

ably good economic conditions. In
a
recession, it is entirely possible
to have too
much of anything—

to

really

a

is

there

the maintenance of reason¬

sense,

at

you,

What I have said, of course as¬
sumes

building has been going on
(riot, mind

While figures

come

element

ous

nearly impossible to be
accuracy of housing
In the first half of 1959,

satisfactory rate

a

by, I imagine
5% of the construc¬

to

projects' under Way at any
given time could be characterized
as
speculative; and. only a small
fraction of these contain any seri¬

a

story goes, an American regiment
was
pushing rapidly northward

are

might suspect.

function of legislative activity; and,
though housing starts may decline in next half of 1959, gains
in schools, hospitals, highways, electric-light plants, factory
and office buildings will push total 1959 construction to a
is significantly

air

tion

economist opines that most
construction is non-speculative and much of the remainder
is riskless-—assuming good economic conditions; notes hous¬
ing

to

noting,

long-awaited period is almost
here—just a few months away,

the

forecasts.

enterprisers may
this way, their
much smaller than

that not over

Moreover, the

said to be solvable.

slow

of

home

shirts

hard

A. D.—a 40-year mortgage away.

to 2000

now

and
sell.

therefore
sure

some

are

Resi¬
dential construction alone is conservatively estimated to reach
64 million new housing starts—a figure larger than today s
housing stock.
The accompanying headaches of available
premium land, strain on non-residential construction and on
the taxpayers' pocketbook, inflation and other problems are

a

.

worth

is

government actions, and it is

cast

over¬

rent,

to

are

one

look, and th?t for the Soaring Sixties
era

fail

which

houses

V

(

that

mean

which

ments

City

New York
•'

appliance instalment
financing, is just a sample.

building is impossible. We have all
seen
unoccupied • stores,
vacant
floors in office buildings, apart¬

Corporation

Economist, F. W. Dodge

Vice-President and

for auto and

It is extremely difficult to fore¬

doesn't

This

GEORGE CLINE SMITH*

DR.

By

opera¬

tions.

Decades

In the Next Foni

strongly

housing

most

in

present

is

institutions

financial

a

.

(218;

short,

we

have the prospect

building far more new houses
the next four decades than the

total

housing stock that

now

ex-

Volume

Number 5864

190

.

.The Commercial and Financial Chronicle

.

(219),
ists.

And

In

only

is

housing

category of

one

A New Look af

building.

just barely
keeping abreast of the increase in
school-age population now; pros¬
pective increases insure tremen¬
dous
future
dem.ancj
for
new
schools,

are

we

lick

to

have

only

at

(2)

Community facilities will be
strained—and so will-.taxpayers'
will

be

more

than

it

even

the

cold

will

be

war

a

of

ihflation.

And

probably

con¬

for

case

fcr

And

have

we

to

weapons

than

more

huge arsenal of
against them —

a

use

before.

ever

We have the weapons

cal

of

of physi¬
the early beginnings

science;

atomic

the

the

age,

the electronic
and most im¬

age,
age,

space

portant of all, the age of autologics—of machines thnt help man
to think.
In the social sciences,
we

know .far

his

problems.

know

about

more

and

man

particular,

In

we

about what makes our

more

sick, and how to keep it
than we have ever known

economy

well,
We

are

the

on

fantastic

most

threshold of the
of

era

growth and

change the world has ever seen.
Being constructive, the construc¬
tion industry will occupy a prime
position: as we build figuratively
for the future, we must also build
literally.
\
How

much

That's

United

States,

do

build

to

and

a

then

We will have to double all

structures,

that

build?

we

have

second

the

must

easy—we

some.

all

before

facilities,

the

And we'll have to

exist.

now

it

With

with

1

term

the

babies

born

than

4%

good

than

5%,

these

offices
York

William

at

Wall

37

Does such

relationships call for

Spiegelberg,

member

and Beulah G. Barnard. Mr.

elberg and Mr. Geisman

Spieg¬

are

part¬

Spiegelberg, Feuer & Co.,
as of July

which will be dissolved

31st.

With Penington, Colket
READING,

At these levels many

that

nounce

is

Nerny
as

a

—

Jack

now

Edward

associated

registered

Mc-

representa¬

Street.

2 With Weathers

Morgan

(Special to The Financial Chronicle)

William
J.
Frost and Beulah L. Sampson have
become affiliated

common

hold

even

^

Characteristics

basic

question

current

after

characteristics

suitability
their

with

Weathers-

with Scherck, Richter Co.

of

First, there is
of

requirements

an

the
pension
funds.
extremely long

funds.

and

(contributions

and

Miller,

of

Inc.,

has

—

been

Joseph,

Union

Richard

added

Mellen

to

future.
sion

the

Sustained growth

funds

is

to

of pen¬
expected for

be

next

generation.
Thirdly, a qualified pension pro¬
is completely

gram

exempt from

income and capital gains
a

tirement

plans

are

Re¬

not subject to

catastrophic hazards.
and

in

taxation

tax-exempt organization.

payouts

can

advance.

tually

no

Retirements

be forecast years

Fifth, there

legislative

restrictions

for

trusteed funds.

are

Stock Exchange.




possible, the
business

be

flation.

investment

private

corporate

Sixth, there is no

distinguish between prin¬

and

ceipts
ant

as

or

done

enable

or

benefits

♦An

income

in

recording

is required for life ten¬

remainderman interests.
address

the Eighth

by

Furthermore,
whole

volume

pension
do

cannot

any"

of

switching.
The
just too large. A small
amount of liquidation would soon
urns

are

defeat itself and eliminate the de¬

sirability

of further sales.
The
picking of good common stocks is
child's

is

♦

annual

guess

would

trated

return on today's price of
5.30%, which is substantially
of the temporary high

moral

to

clear.

the

1958.

the

In

finding

on

illus¬

too

thought

many

high

(and they
right) and that stocks should

sold

to

take

then

they

advantage of the

current

This

high interest rates.
did and bond prices

improved

for

six

months

while

stock

prices declined.
But then
early in 1958 the market reversed
itself
and

and

interest rates increased

bond

were

Analysts

companies where earnings

prices

fell

and

many

badly squeezed in the almost

panic

conditions

ment

bond

to

the

of

of

market

govern¬

mid-1958.

are ex¬

that

of

some

the

pected to grow—a not impossible
funded.

IV

in

Market

high

that

and

better

by

bonds

rather

buying

could

we

do

high

in

yielding

low

back

The
in

stocks

Timing-

It is urged that the "market" is

too

had

coupons

task.

They

held

concentrate

well

are

mid-1957

market

were

be

market

by the events of 1957 and

ones

stocks

early

1958

high

been

re¬

who got out of

mid-1957

into

did

not

quickly

the

and

whipsawed them.

yielding

than

already

get

enough
market

The end result

Continued

on

page

26

produc¬

as

same as any

This

regardless of in¬

earnings

to

him

which

This advertisement is not

will

an

liberalize

or a

solicitation of

offer to buy

an

any

of these securities.

Prospectus.

the

become

may

offer to sell

The offering is made only by the

employer's costs
im¬

living
1%

Not

increase.
In fact, a
earnings will en¬

costs

increase

a

New Issue

July 15, 19591

in

Importance

of

Although

it

is

3,000,000 Shares

Capital

Appreciation and

Growth

customary

First Charter Financial Corporation

to

think of yields in terms of current

prices it is

important in long
term pension investment policy to
consider

more

both "return

Common Stock

and

cost

on

(Without Par Value)

capital appreciation in achieving
the objective of accumulating a
specified sum by retirement date.
It

makes

difference

no

cumulating

this

in

ac¬

ter¬

necessary

minal fund whether it is achieved

j

An

Professor

Howell

be¬

Pension and Profit Shar¬

Officers', New York City.

:

■

Price $17.50 per Share

"■ "

■

.

outstanding example of this

growth

principle is the

somewhat

poorly regarded Consolidated Edi¬
whose

son

1949 at

stock

available

was

in
Copies of the Prospectus

an

average price of $25 to
yield approximately 6.4% on its
then $1.60 dividend.
At the 1959
dividend rate of $2.80 we now get
a

return of 11.2% on

Thus,

for

the past
non-glamour stock
profound

a

ment

over

Ed's

Con

The

our

10

has

bonds

crucial

in

preferable

in

the recpnt

5%%
must

the

Con
take

long

to

this

is

range

.

Eastman Dillon, Union Securities & Co.,

William r. Staats &

■

Dean Witter

&

Co.

Glore, Forgan &

Co.

Smith, Barney &

in
yield 4.40%

1*959)

funds

issue of

Here

we

consideration

prospects and

Stone

&

Webster Securities Corporation

<

,

White, Weld & Co.;

■

i

.

Bear, Stearns

&

Co.

DomiNick & Dominick

Reynolds & Co., Inc.
t

A. C. Allyn and Company

Bache & Co.

Bateman, Eichler & Coj
1

Incorporated

Johnston, Lemon & Co.

Mitchum, Jones & Templeton

not

1 For

see

a
detailed analysis of the
longearning record of common stocks
suitability for pension funds
the author's
article, "Common Stocks

their

and

Pension

Harvard
1958.

Fund

Business

Investing,"
Review,

Co.]
CoJ

whether

investing

bonds.
full

'<;

facing

investing

(May

Ed

into

legally offer these Securities

compliance with the securities laws of the respective States.

improve¬
1949.

question

Con Ed stock at 64 to

be obtained from such of the

provided

pension funds placed in
3%

portfolio
managers
today
(June 1959)
is

in

may

as may

1949 cost.

years

investment

undersigned and others

Piper, Jaffray & Hopwood

Schwabacher & Co.

term

ing Seminar (Kennedy-Sinclaire) for Bank
Trust

managers.
funds as a

perative's wage levels rise and

and

fore

(an
share

per

excess

should

pay

resource.

Increased

either reduce the

vir¬

and

Commerce

Building, members of the Midwest

should

earn¬

ings) will exceed outgo by a sub¬
stantial margin for the foreseeable

capital appreciation and cash re¬

staff

as

other

is

which

dividend

a

or

The

It is, therefore,
employer that
used

omniscience

present in most pension fund

dis¬

(Special to The Financial Chronicle)

Brickman

tively

be

t,o go up
degree of

In

cipal

CLEVELAND, Ohio

cents

$3.40)

by reinvestment of cash dividends
fact, al¬ received or is accomplished by
though employees come and go, market appreciation resulting from
there is no prospect that accumu¬
reinvested earnings. In both cases
lating pension funds will ever be ypu get a compounded growth
liquidated.
Next, the inflow of rate.1
of

Joseph, Mellen Adds

the

"collateral"

assets

careful

a

,

accumulation

tribution

need to

M.

these

can

the various media
unique needs.

management

period

fact

and

until

Prior

average

corporation.

business expense.
essential
to
the

policy,
Jse

of

examine the institu¬

us

final

more profitable
stay defensive
things were about
again. This assumes a

stocks

III

rather

Now let

an¬

on the bond.
On 1949 cost
this would give a dividend return
of 13.6%. It would be quite possi¬

k

assets do not belong to

in

tional framework surrounding

—

Morgan-Jones Co., 1806 West 11th
Street.
Mr.
Frost was formerly

and

of

15

70%

—

pension funds and the relative

for

At its

Ed

quarter

the

and

fall

of

-S

conditions,

only

first

knew

to

were

able benefits to be increased 25%.

Pension Funds

of

of

for

stocks

I

Investment

as

Mo.

are

pension funds and profit sharing
arrangements.

with

tive in their office at 12'North 5th

SEDALIA,

trustees

wondering about the appropriate¬
ness of
continuing to purchase or

money.

Penington,
Colket
&
Co., members of the
New York Stock Exchange and
other
leading
exchanges,
an¬
Pa.

revision of

a

pension or
profit-sharing investment policy?

Street,

Exchange, Jess L. Geisman,

in

Howell

L.

long-term

or

of

of

give
64

a particular busi¬
objective. As such, they are
an important earning asset to
help
the
corporation meet a modern

reversal of traditional

a

answered

"City. Partners will be

I.

rate

ness

Paul

Con

its

conservative

a

trust to achieve

market

short-

50%

employer

re¬

pen¬

d i t ions.

c o n

at

the

policy in
light
of

the

that

objective of the employer ble by the time a 30 year bond
setting up a funded retirement^ matured or a 30 year employment
plan is to accumulate an amount
period ended that a return in ex¬
during the working life of the
cess of 25% would be obtained on
employee which will enable the
the 1949 price of Con Ed stock.
retiree to live in human dignity

Pension

invest¬

ment

meeting

The

are

and

pause

consider

reason

increase

including social security.

to

essary

There appears
why this should

in

nec-

analysis of the problem facing the
pension investing officer, i.e., the

Spiegelberg & rQo., members of
New York
Stock Exchange,
will be formed as of August 3rd

of

Objectives of Pension Funding

set

it

no

share.

return

II

more

becomes

sell

bonds

increase,

ownership.

we

play compared with trying
outguess the market and the
timing of its
swings.
Pension
payout would easily justify an¬ funds must of
necessity be fully
other
dividend
increase
in
the
invested for the long pull.
near future.
A modest quarterly
The dangers of trying to out¬

bond

during his declining years. Such
a
standard of living is frequently

grade

bonds

under

the

them

and

corporate

on the biggest
project of all time.

Will Be Formed

ners

more

in

Spiegelberg & Co.

of the

g-

bonds

yielding

The

New

o n

to

continue in the future.

in

average

govern-'

ment

embarked

are

construction

with

Dow-Jones

soaring above 640; with the divi¬
dend yield on Moody's 200 indus¬
trial stocks yielding about 3.25%;

1959 reach middle age.
We

the

per

into

stock
if

when, it. would be
in

area,

of

that

market

re¬

earnings to.be $1.53 per common
share. Such earnings, on the basis

market

over

stock

On the

though situated
with low cus¬

even

growth

nounced

long-term policies.

sion

before.

future

be

annual

market situation should not panic people out of sound

current

But can you name any 40-year
period in the history of a nation
as
dynamic as ours which didn't
have its serious problems? As al¬

the problems are challenges.

offset

can

being

trite

such

to

independent, competent investment counseling; calls
aggressive management of pension funds and holds

more

tinue.

ways,

which

appreciation

of

long

because

lower coupon.

a

that

not

funds; (3) long-term dollar cost averaged funds, and (4)
danger of trying to outguess the market. The author states the

problem

a

will

threat

constant

of

There

now.

capital

declines and also leave higher earning differential

Mass transportation

is

up a pension fund's benefits
Prof. Howell discusses the competi¬

advantage of equities in terms of: (1) professional, syste¬
matic, diverse selections where earnings are likely to grow;

Avail¬

any

aspects

is

not

earnings

tive

pocketbooks.

possibilities

high tax

a

this

gain
It

late

bonds still

on

of

the
bonds

5%%

tomer consumption and expensive
streets
to
tear up
Con Ed has
shbwn ability to grow and trans

building

and/or lowering its cost.

premium.

a

the

other hand,

Visiting Professor of Finance, University of California,
Los. Angeles, Calif.

Galore

will be

rate

return

in

growth and technological "change.

land

term

funded at

is not match for stocks in

Headaches there will be.

us

Treasurer, Welfare, Pension & Equity Plans Services, Inc.

prob¬

is good,

purchase of its new
does not guarantee
of

Financial consultant contends today's high
yield

able

the credit of Con Ed

Partner, Paul Howell Associates, Financial Consultants to
The Twentieth Century Fund Pension Investment
Study

lems; highway construction will
be expanded far beyond the pres¬
ent
program
as
traffic
grows.
Stores, factories, utilities—almost
anything
you
can
name — will
have to keep up with population

Headaches

by temporary abera- stocks;
^But that is only part of
illusory gain. Although the picture. That omits the capital

tions epf

as

By PAUL L. HOWELL*

begun

traffic

present

our

be led astray

Equities

Pension Fund Investments

.

We

classrooms.

11

in

the

November

Shearson, Hammill & Co.

Walston & Co., Inc.

The Commercial and Financial Chronicle
12

.

.

Thursday, July 16, 1959

.

(220)

Europe
writes that "since
the
large-scale devaluation of Western
European
currencies in 1949, a

No Longer Can We Disregard
Our Balance of Payments
By WILSON E.

European export^ for those of
United States, has been going
and * there

SCHMIDT*

„

The

George

policy choices confront us in view of the elapsed
we had to consider the effect of our domestic and

Unfamiliar
time since

portend a dollar glut? And if it
does, why concern ourselves with
the

When

it?

United

s,

vests, or
abroad

i

services

and

(1)

term

long

they

assets,
either

surplus

Aubrey
and Sir Donald MacDougall, after

buy

to

gold

our

the

^ iMMI

or

them

Wilson Schmidt

in

form

of

hold

assets, creating short-term
liabilities against us.

liquid
We

since

forever

we

on

accounts

our
have

only

a

And even though
supply seems large at present,

finite
that
we

balance

to

rely

cannot

obviously

gold

students of in¬

close

Two

supply.

should remember that we have

Henry

trade,

ternational

dol¬

lars

accelerate

pull.

the

use

S. merchandise imports
over
the long

U.

could

painstaking analyses, have offered
projection
which
support this
Aubrey thinks that U. S. imports
might rise to 3.2-3.5% of the GNP
when our output is twice its 1950
Donald

Sir

level.

not

does

to be impossible.

sider 3.2%

expenditures would run
about $35 billion and that "On the
basis of current trends [this was
before the events of 1958]
it is
hard to make a case for the prop¬
osition that a world with $35 bil¬

With,

large compo¬
of the balance of payments

cause

major shifts in the balance-

liabilities, of-payments deficit, those changes
to foreigners which they can ex¬ alone would be sufficient to pro¬
change for gold.
duce a substantial increase in the
short-term

substantial

the

In

persistent def¬

of

event

rely on
foreigners to finance our deficits
by addjng continuously and rapid¬
ly to their liquid dollar holdings.
But this may be dangerous be¬
cause, at some point, the continued
icits,

perhaps

which

deterioration

imply for

could

we

our

that

would

net reserve position

(2) Investment abroad by Amer¬
business

ican

creased rates.
ket

is

and

at in¬
The Common Mar¬
grow

may

interest

intense

may

attracting

induce heavy U. S. in¬
vestment in Western Europe. Pe¬
troleum i n ves tment, which
accounts for half the rise in

U. S.

since 1950, may

under even

stronger stimu¬

tainty, well-founded or not, over
the stability of our exchange rate,

lus

their

of

dollar

and

assets

perhaps induce them to exchange
those assets for gold.
Avoiding

Dollar

a

A

persistent tendency, therefore,
the United States to supply
more
dollars, to foreigners than
they

require, with

or

flow

of

gold,

thrust policy

changes

upon

vent

a

Some

may

drift toward
the

of

could

in

policy.

domestic

And if

could

eventually

selected
of

and

we are

in the face of such

pre¬

freedom

our

a

dollar glut.

a

techniques

reduce

action

without

designed to

a

foreign
complacent

prospect, we

be. forced

into

abrupt action which would., be

un¬

necessarily costly in terms of

em¬

ployment, output, and the benefits
from

trade.

Since the end of 1949, foreigners
have accumulated an annual aver¬

of $1.5 billion of
liquid dollar assets

gold

age

it

than

has

in

the

The

past.

Chase Manhattan Bank petroleum

suggest that world-wide
expenditures for foreign
oil development may rise between
1957 and 1967 to 2Vz times their
experts

capital

during the previous decade.
Similar changes cqjnnot be ruled

rate

from

and
us.

United

to

with

The reason is that West¬

us.

Europe includes most of the
countries which appear to prefer
ern

to

hold

major portion of their
for the settlement of in¬

a

reserves

ternational payments
of

treacherous}

gold.

confidence in and
knowledge of the capacity of for¬
gain

eign countries to meet future dol¬
lar

obligations.' This is perhaps
of the explanation for the
break-through in sales of new

part

issues • in the United States in 1958.

An expansion of economic
assistance to underdeveloped

(4)

the future

the

as

cerned.

direct

The

effect
is

reason

is

con¬

One

reason

for

this

in

in

the

United

the

that

States

much smaller for

the

than

has

assets into

the

in

more

sure

than

war

period, if for

error

tude

in
can

disbursements.

A minor

forecasting either magni¬
cause an extremely large

error—in

both

the forecast of

size

the

and

sign—in

difference be¬

tween them.
♦Statement
Joint
D.

C.,

a

countries

by Dr. Schmidt before the
Committee, Washington,

30,

than

1959.




cially

gold out of fear for the
said

be
not

There is little

in

fall in

this

respect

the. class of

"hunch."'

The

1958,

of

record

industrialized

U. S. exports may
greater competitive

from

establish

lost. But that may not prove

about

the

States

runs

experienced in the post¬

the

much

United

deficit of $3 billion

other reason in 1959, our gold stock will exceed
and dynamic our short-term liabilities to for¬

of

out of world markets.

the Economic

a

the

If

no

recovery

Western Europe and
Japan. There &ere signs of this
even
before
1958
produced the
fear that we were being priced
growth

future.

The staff of

Commission for

small margin.
And the
may fall below
$20 billion. In some quarters, even
eigners

these

by only a
gold stock

levels

confidence
know

are

thought

thresholds.

whether

they

I

are

to
do
or

be
not

not.

any

is

to

money

Like

in

a

the
he

have
Roger W. Babson

Stocks

view of the continued threat

not now advis¬
to have all of
their funds in bonds—even though

of inflation, I

bonds

am

friends

yield much more than
This applies not only to

now

stocks.

long-term bonds but also to shortterm
issues. Witness
the recent
of

issuance

Treasury

one-year

bills to yield 4% %.

My father, who was a country
in Gloucester^ Massachu¬

banker

used

setts,

tell

to

ferred stocks

are

that

me

pre¬

neither "fish nor

fowl," "hay nor grass." As a rule,
such stocks are redeemed if the

is successful, .and wiped
company
fails. This,

company

the

if

out

competitive.
safety, I

when they were very

income

for

Today,

and

believe that first preferred cumu¬

lative utility stocks are

worthy of

deterioration in

substantial

net

from

the

-

and

oil

increasingly competitive

an

".

suggests
banks

.

central

European

.

free to accumulate

now

are

sterling, if they so choose, without

taking

exchange risk in the

any

of

case

devaluation of the ster¬

a

ling with respect to the dollar. A
substantial
lowering of interest
rates in New York compared to
London

might thus easily induce

considerable

shifts

is

a

each

thrust

of

this

could

we

choices

foregoing points

of

But if the main
analysis is correct,

face

some

policy

in

The-abnormal state
years
our

in

sterling

counter-argument; and
counter-argument there

rejoinder.

a

short-term

to

.

For each of the

for

of

dollar

from

balances

in which

domestic

coal

of

use

column

my

heating

change
that

to

of

believe that our
grandchildren will see electricity
take the place of oil and gas. This
I

gas.

electricity will supply heat !n the
winter and air conditioning in the
summer,

We

not

do

the

as

operate many

see

much direct ad¬

electric power; but
newspapers are full of ads for
kinds of electric appliances—
of

vertising
all

well

as

appliances not yet invented.

home

,

with

often

down

no

payment re¬

quired. This means that there are
hundreds of thousands of dealers
who

tricity.
such

electric applian¬

selling

are

will

which

ces

is

industry

favorable

a

elec¬

more

use

other

No

in
Al¬

situation.

though the rates of electric power
controlled by State Commis¬

are

which will

rates

bonds

cn

Commissions

these

sions,

pay

the

and

allow

the interest

dividends

on

preferred stocks. Electric power
companies are safest from labor
troubles, which are destined to
become
more
serious
with
all

going

When

industries.

other

about "electronics" stocks,
remember that electronics always
crazy

and uses electricity.

upon

Stocks With Long Dividend

our

ing doubts about the stability of
the dollar, especially in periods of
difficulty such as 1958.
And we
should note that sterling may be¬
come

of

house

seen

Records

position without creat¬

reserve

demand

expect to undergo

cannot

we

the

to

generating

that

fact

readers

depends
But

of

constantly increasing.

Most

fall.

my

both

due

cost

the

to

homes is

a

'
gets, the'more dangerous is his

ing

also

and

higher up

In

is

by municipalities, industries, and

artist
circus,

trapeze

will
the

that

during the
the output of
continue to in¬

electricity is gradually decreasing

common

stocks.

espe¬

happens
years,

This

crease.

fact

offi¬
invest
today

kerage

few

electricity

or

bro¬

or

in

next

trusted

a

it

of Electric Power

Future

d

e

service,
from

bank

there is

come

by

attractive.

Whatever

long-

a

assets."

pres¬

If

find such a local

non-callable

or

ommendations

foreigners added over one
billion to their liquid dollar assets,
not

can

rec¬

grow

when

.

Economic

June

(5)
under

tible

indicates that confidence was

underdeveloped

and total

the\ net

also

may

value of the dollar.

programs

areas.

that

does
con¬

currency for reserve. This is'par¬
at a ticularly the case, as Professor
Triffen reminds us, because, under
slower pace.
This makes it less
the
European Monetary
Agree¬
likely that foreigners will finance
ment, sterling held by members
any given U. S. deficit by accept¬
enjoys a firm exchange guarantee
ing dollar balances and more likely
in terms
of the dollar, but the
that gold will flow.
dollar enjoys no such guarantee
Confidence in the Dollar
in terms of sterling.
As Triffen

transactions

(8) If is hard to see how con¬
countries, as is strongly urged in fidence in the dollar could become
certain quarters, may put heavier
any stronger than it was for most
pressure on the balance of pay¬
of the postwar period, and it could
ments per dollar of aid than the
become
weaker, causing for¬
postwar aid programs, at least so eigners
to convert their doliar
far

all-out

stock which is also either conver¬

•

who

one

a

(7) World trade may grow more

other minerals.

balance-of-payments position is the outcome of
two large numbers—total receipts

is

in the form

than it has
(3) The purchase of foreign se¬ in the
postwar period, as sug¬
curities, which has been in the
gested by the staff of the Inter¬
'doldrums for much of the postwar
national Monetary Fund.
If this
period,
may
accelerate, barring is the
case, the need
for dollar
high interest rates here, as U. S. balances to
carry on international
investors

for

dangerous

bill.

monthly

a

not have

however,
was
before President
dollar, it is Western Europe that
Franklin
D.
Roosevelt squeezed
is most likely to draw on our gold
the water out of the utilities and
reserves when it enjoys a surplus,

been

especially

cor¬

it
is
perhaps
especially
significant because, barring a gen¬
eral
loss
of
confidence
in
the

difficult

are

If

icit for the United States.

rect,

does

area

1970's have

goods and services
capital." If military
expenditures
continue
at
their
recent average of $1.8 billion, this
would suggest a large direct def¬

that

this

Western

private

can

in

rea¬

seems

that

account of

that

casts

it

.

its
direct
with North America

transactions

taken

because fore¬

.

suppose

the

by

Europe

Europe could by the
achieved
balance
in

percentage of procurement under¬

predict

that,

expendi¬

military

States, ".

sonable

concludes,

u rope

Western

in

tures

Therefore, it is

Bonds Versus

projections,

aside

leaving

Whether this deficit will grow or
shrink in the future is exceedingly
to

E

for

careful

after

chance you

Economic Com¬

The staff of the

mission

pay

170 ten years ago.

and services."

U. S. goods

slowly in

for

us

come

out for certain

Glut

spend in 1966 will rush
and automatically spend it on
to

and

direct investment

value

out

on

deficit.

(gold less short-term liabilities to
foreigners) might occasion uncer¬

particularly in times of difficulty
such
as
1958; this might cause
foreigners to question the future

that U. S.

lion

pared with 350 five years ago and

concluded cial,

payments in 1966. They

con¬

nents

made an
of what

especially able people,
item-by-item
analysis

in

changes

Magazine, with the aid of

might be expected for the compo¬
nents
of
the
U. S.
balance of

slightly
below 3% and remembering that

minor

as

servative

The overall trends point to

Fortune

running

ratio

recent

the

Common
taken an

spell trouble.

(6)

short-term
liabilities to
foreigners, and
the balance-ofpayments deficit.

goods,

our

have

deficits according to some experts.

stock,

re-

to buy

r e

still

public

minimum, to scan some unfamiliar
numbers in future years—the gold

t h*a n

q u

gontirftued

changing

the

Since

countries

eighth or more of our merchandise
exports since 1953, anything even
far
short
of these shifts could

points

to

serve

not to go

reason

taking advantage of bonds' superior yield to stocks and,
for the latter, he judges thejprice of equities to be so high
to warrant the most conservative investment advice.
Mr.

as

30%.

Market

be dif¬

If convincing, they should
cause policy makers, at

policy.

dollars

foreigners

avoid

to

us

without

deficits

i ngives

more

for

in

to

about

let me offer some
which suggest that it could

considers the inflation threat sufficient

export woes. The wellanalysis by Howard Piquet

_

predic¬

a

tion,

ficult

States

d

sp e n

attempt

than

Rather

:

the members could be
Babson provides the income-seeking reader with names of
adversely affected. And Mc-GrawHill
International
reports
that
some companies
picked at random possessing a long history
small U. S. exporters expect to
of continuous dividend payments.
lose 80% of their present business,
medium-sized exporters 60%, and
The Dow-Jones Industrial purchase, especially if issued by
the large corporate exporters
Average is today about 660, com¬ the local company to which you
ports

Evaluates Changes

in

payments

of

balance

S.

in

much investment merit

sees

first preferred cumulative utility stocks issued locally—
possessing convertible or non-callable features. The columnist

add

may

writers

for income and safety, suggests looking

up

suggests that a third of U. S. ex¬

upon

recent hemorrhage

the

U.

close."

S.

known

principal components of our balance of
payments—if we are to avoid continued deficits. In pointing
this out, economist Schmidt outlines the imponderables affect¬
ing our balance of payments which may.restrict our freedom
of action if we are to avoid abrupt action costly in terms of
employment, output and benefits from trade.

foreign policy

Market

Common

U.

to

utilities\and,

electric

Cites Piquet's Findings
The

Does

Dean of the financial

on

definite

yet no

as

ROGER W. BABSON

By

the

Associate Professor of

.

the

are

signs that it is coming to a

Economics
Washington University

Investing for Income and Safety

of substitution of Western

process

we

and

unfamiliar

the

When
for

reader

a

wants

a

stock

income, he is interested in the

number of years
has

tric

that the company
dividends. As the elec¬
utilities are young, they have
paid

generally had a long record.
insurance companies, gas
companies, and the like have been

not

Many

New

dividends
for
about
a
years. For instance, the
Haven
Gas
Company has

been

paying

paying

hundred

the

dividends

Travelers

for

paying
Haven
and

Insurance

for

110;

has been

96 years; the New
Company 82 years;
Insurance Com¬

Water

the

Home

in which I am a great be¬
liever, for 86 years.
pany,

a few other
coming to my
stocks
are
all
common
shares as preferreds did
not exist so long ago. The Aetna
(Fire)
Insurance
Company has
paid dividends for 87 consecutive
years; the
Hartford Fire Insur¬
ance,
87
years;
National Fire
Insurance, 88 years; Phoenix In¬
surance, 86 years; Southern New
England Telephone, 69 years; and
the
Security
Insurance
for
66

The

following

are

such

companies
memory.
Their

years.

future.

of the last 25

Frederick Lewisohn

could fashion

foreign

policy

complete disregard of our bal¬
of
payments
will
have

Frederick

ance

the

passed.

passed

New

Lewisohn, member of

York

away

on

Stock

Exchange,

July 4thv

Volume

5864

Number

190

The Commercial and Financial Chronicle

.

.

.

13

(221)

folio"'" management)

Competing and Promoting Trust
Services for Corporations
By O. E.
Vice-President

-T":

(12) Bookkeeping and adminis¬
trative service to labor union wel¬
"

how non-New York banks

compete

can

and paying, agents.

trustees

be

can

performed by

ment

The banker

for such such business

upon

and

reading

presented
the

last

of

some

at

trust

several

noticed

the

over

the

I

years,

of

have

business, but Federal Reserve

that

except for the
Mid - Winter

denture

Trust

ern

York,

New

it

been

t

trust

ment

perform

ures

ity in

Boulet

corporate
customers
of
banks.

has

been

In recent years, there
tremendous growth in

a

sharing plans all

claim

that

the

trust

have

attention

begun

of

stock

there

issues, and
were

to

co

transfer

-

been in Dallas and Hous-

to have

program

corporate

ton, where in each

have

activities

132 of

on

larger southern cities, and the
greatest development of it seems

other

but

fig¬

agents in other cities. This busi¬
ness is largely concentrated in the

over

field

committees,

corporate
some

our

these

the country,
opportunities and prob¬

in

of

the amount of such activ-

on

of 375

the number of pension and profitthe

transfer

southern banks. In the
transfer
agent directory in
the
"CCH
Stock
Transfer Guide," I
found listings of 46 southern banks
acting as transfer agent on a total

for

the

our

bank, the largest

our

the

is

de¬

should

and

in

Corporate Stock

stock, I tried to develop

can

partments

remained

ness

be

to

seems

case

the busi-

fairly well dis¬
several
of the

neglected.

tributed

In recent years, the Federal Re¬
serve Banks have begun to make

of the

from

penses

national

earnings

banks

their

in

and

among

which

ton

by

districts.

Such

on

an

corporate

had

officer

an

whose

responsibility was those
performed for cor¬
porations.
Now, every trust de¬
primary

The survey of the Atlanta Federal
Reserve District for 1956 covering

trust

24

nience

transfer

'agencies

reasons

indicates

trust

that

department

6.8%

fees

trust

derived from corporate trusts, and

fr^om corporate agencies.

1957

the

from
from

ate

5.4%

and

7.7%

trusts

corporate

In

were

percentages

of

Corpor¬
activity produced 13.1%

of

total

that

amount

trusts,
fourths
In

the

from

corporate

the
other
threecorporate agencies.

from

nience
We

of

the corporation
itself,
recently seen the ap-

have

pointment
agent

of

by

stock

is

a

Houston

changes, and which is

its personal
of

cause

porate

bank

and

trust department be¬

contacts

trust

with

the

cor¬

able

AThnv

than

since

the

other
of

cost

hunt

tvi rr«r

trust

business,
servicing it was

only 65.9% of the income received.
In

the

35

departments included

in the Dallas District survey,
596 bond trusteeships

were

there

(coy-

enng issues totaling $867 million),
and
a
total
of
3,835
corporate
agencies.

By

total

The largest volume of corporate
in
this
country is, of

business

that

Course,

pertaining to

corpo¬

rate securities, which has been for

and perhaps always
centered in New York,
because of its being the financial
capital of the country, and because
of the location of the major securities*
exchanges
there.
Those
trust departments which conduct
many

will

years,

be,

•

number

of

corporate

a

total

counts

in

national
were

ever,
♦An

45,699

corporate

kinds

being admin¬

the

United

banks,
this

in

States

13,372

13-state

ac¬

major New York banks, with cer¬
tain factors obviously working to
the disadvantage of the bank out¬
side New York.

pete

In order to

successfully

York

banks, it

with

com¬

the

United

which

States

tive offices
announced
ment

one

is

in

of

our

holders

general

address
Trust

Trust

Bankers

area.

are

the

of

oiir

there

area,

We

In

there be

that the
tained

that

a

no

IUTs

be

the

j-

^

*u

*

4.

j

main¬

we

more

are

than to make

own
state,
others, in recent

our

well,

as

as

there

years

l138 J?een 3 tendency for the state
jtself and certain state agencies
invlte competitive s€^led kids

{?ru£ayi:^he^tTemTn

stlte

our

fo? ^

ueen

has been for the larger
banks and the New York

banks

to be invited to bid for the agency,

naming

its

New

own

York

co-

paying agent, and each New York

hank bidding naming a Texas co-

proper

•

that

money

with each Texas bank which bids

position

our

bank is

local

trans-

requirement

hooks

transfer

there.

the

New York

is

fee

handled

so

some

several

are

in

left with

are

local

small

the

likely to lose
it on them.

hope that other corporations will
follow this example.
In

the

dominance

we

issues, on
comparatively
small, to handle alone, and that
the more profitable larger issues

for the appoint¬
of the largest

reason

concentrations
stock

only

execu-

in New York. The

that

was

whose

and

are

*

The prices bid on

paying agent.
these

issues

have

become

ridicu¬

lously low—less than our cost of
handling—so that the only saving

On widely distributed issues of
feature5t0 us has been the use of
bonds, even though they are those
the money for the 10 or 15 days
of our own state, county, city, or
which are usually required for it
school district, much of the dis¬

tribution

is

in

great

majority

bonds

and

to

the

East,

of

for

and

a

the
are

coupons

maturing
presented

be

deposited before each

ma¬

turity date.
On

one

such

issue

recently

,

payment there.

of

the

is

seen

one

'
This advertisement is neither

an offer to sell nor a solicitation of offers to
buy any of these
The offering is made only by the Prospectus.

NEW

ISSUE

whose

securities.

July 16. 1959

$50,000,000

after another

corporations

stock

transfer reach the stage in its
development W'here they listed its

the New York Stock Ex¬

on

nA

,

be

we

stock

*

New

necessary that
comparable
to
theirs, and that our fees be com¬
petitive.

service

our

Quebec Hydro-Electric

change. While this has resulted in

Commission

one

more

or

trust

depart¬

(1)
under

are

Trustee

and

indentures

paying
securing

agent
bond

^) Trustee
savings plans

plans or
while con,
sidered by the Internal Revenue
Service to be profit-sharing plans,
are
really quite different from
anything else in the trust departA

"

of

thrift

which

'

•

ment

(3) Trans£er agent for corporate
(including
stock
ledgers,
mailingSi proxy jobSj etc.);

its

and

company

Debentures, Series X

in

management

Dated

July 15, 1959

'

,

Due July 15,1984

city, available by local tele¬

our

phone

frequent personal
the logical arrangement is

visits,
for

the

(and

for

and

New

York transfer agent
other transfer agents in
cities) merely to transfer

certificate's

as

may

be

as to

principal and interest by

PROVINCE OF

QUEBEC

(Canada)

pre¬

them, and forward their
transfer reports to us by air mail.
Consolidated
stock
ledgers
are
maintained1*by us; and we are in
position
ment

handle

to

of

reports,
a

the

disburse¬

to

stockholders,

prompt

telephone

the

to

by

answer

and
local

questions

many

be asked by corporations

can

Price 100% and accrued interest

dividends, mailings of
proxies, and other com¬

munications

give

unconditionally

to

sented

that

Guaranteed

any

whose stock

transfer.

we

enabled to know

plans

s£oc£-

5%

the location of the secretary of the

such

for

assist

in

sooner

We

are

Copies of the Prospectus may be obtained from any of the several under*
writers only in Stales in which such underwriters are qualified-to act as
dealers in securities and in which the Prospectus may legally be distributed I

about any

future

financing which
the corporation may have, and to'
the

planning

where

we

The First Boston Corporation

A. E. Ames & Co.

affected.

are

(4) Registrar for corporate stock
and

of

them

area;

how-

by Mr. Boulet
Conference

Division

of

at

the 2nd

sponsored
the

by

American

Association, Birmingham, Ala.




bonds.

Incorporated

(6)

Subscription

agent

for

fer

of

proxies for
acting

stockholders' meetings and
as

judges of election.

A complete service

(with

the exception of selling and port-

hand, the registrar

issue is in

no

such

H&rriman

Smith, Barney & Co.

It, like the trans¬
on a piecework
only the small per¬

Ripley & Co*

Incorporated

en¬

The Dominion Securities

Corporation

Wood,Gundy & Co.,Inc. McLeod,Young,Weir,Incorporated

agent, is paid
sees

Blyth & Co., Inc.

Salomon Bros. & Hutzler

Lehman Brothers

White, Weld & Co.

centage of the total transfer made

locally;
dividend

unless
or

there is a stock
subscription offer

a

to

existing stockholders, its fee is
likely to remain rather nominal

in

(9) paying ag6nt for municipal
corporations.

(10)

an

basis, and

(7) Exchange agent for security
offerings.
Tabulation

such

viable position.

se¬

curity offerings.

(8)

On the other
on

(5) Dividend disbursing agent.

by

the average size of accounts

Southern
the

of

all

of

istered

performed

performing each of the
following services:

kinds, the territory

favorably with the rest
country. At Dec. 31, 1957,

the

York

_

ton,

ments

the Southern Trust Conference

of

New

of

The result is where we were the low bidder
that on almost any large issue, and both a New York and a Chi¬
there is a New York paying agent
cago
co-paying agent were inas well
as a local one, with the
vojve(j we were able to work out
a stock transfer business
are
in New York agent paying most of
'
effect
Continued on page 24
in
competition
with
the the maturities. In too many cases,

other

compares

of

suit

ex-

one

v

accounts of all

of

services

of

etc.

by total fees collected), corwas more profitTnnn

list

issues, debentures, mortgage notes,

(meas-

the fee,
and the local
while having to rehandle
items paid in New York, re¬
ceiving only a pittance.
The re¬

place for the transfer books, divi¬
dend disbursing, and other mail¬
ings ^stockholders.

department.

of

bank,

department

the

pre-

are

payment, it is also reby the obligor to account

this field is that

fer agent, there is

of

coupons

for

of the
most widely held securities in the

corporate trust customer often becustomers

or

business

the

whose

several

on

most

transfer

corporation

a

listed

that

corporations by trust depart¬
ments is almost endless. In Hous-

11th District

the

porate business
nnl/X

pro¬

activities.

largest trust depart-

seven

ments in
ured

was

with

ap¬

for

trust

earnings
Were: from corporate
business, and
that approximately one-fourth of

or even

begun to
surpass those

Numerous Services Performed
The

The 1957 survey of the Federal
Reserve Bank of Dallas indicated
18%

have

duced by personal trust

of total trust department earnings
in each of those years.

that

business

proach

corporate agencies.

trust

quired

the

the

gets

deoosit

officers

were

6.3%

before bonds
sented

in

bank

the

the
convenience
of
the for all maturities paid both localstockholders, differences in state ly and in New York or Chicago,
transfer-taxes, and r the conve--with the New York bank getting

ual officers and employees of the
come

local

of

stock,

a
much larger proportion of the
there has one or more stock
being transferred by the
specializing in, one
or. New
York transfer agent and a
more
phases of that broad field. smaller proportion by us, it has
In some of the departments, the
not meant that we lost the busi¬
gross fees produced from this type
ness.
In such cases,
because of

of

exist

conve-

active

partment

banks

total

services

the

—

of' dealers

the

benefit

«

We.have

Not many years ago, there was
not one trust department in Hous¬

ex¬

activities

trust

up

—

larger trust departments.

surveys

event

$2,493,-

single activity in the trust depart¬

many

other

some

the

or

Competing With N. Y. Banks

Since

o

services which

lems

national average of

a

Bank Transfer of

given to

and

south¬

a

bank is $1,153,600 as compared

while

corporations whose executive ofalmost
oduces
inevitably produces col- fices are in Houston, whose stocks
lateral business for the bank itself. are listed on the New York Exj
A satisfied corporate customer is
change, and whose only transfer
agents-are in New York. While it
likely to be a better deposit and a^nt.s-arp in t\w Vnrir
whii^ it
is a requirement of the Exchange
borrowing customer, and individ¬

900.

con¬

sideration

our

administered by

in¬

rarity

a

the

sur¬

bond issue secured by an

a

with

has

for much

6b

of

Confer¬
in

ence

na¬

indicate that the average size

veys

set

the

the

under

of

death

business, also,
acceptable fee
basis, a n d efficiently adminis¬
tered, while producing a profit for
if

tional average. I do not have fig¬
ures
on
all
types
of corporate

papers

conferences

much

new

a

business

trust

subsequent

a

~

be

to

will is that

a

in the future.

indentures.

seems

programs

executor and

as

an
active account, pro¬
fee, immediately, and not

a

occurrence

ne|t monopoly, banks can compete for appointments as
looking

trust depart¬

a

corporate

becomes

specifically discusses competing
transfer, profit and pension

trustees under

of

ducing

sharing plans and mutual funds. He points out transfer books
need not be kept in New York and that,
despite New York's

In

advantage of this

acting

over

piece

stock

as:

obvious

trustee under

He enumerates 14 services that

good corporate trust department; warns
by promoters; recommends services be
and good relations be maintained with

properly promoted
securities dealers.

One

type of business is

a

against being used

(13)
Bookkeeping service to
family corporations.
(14) Bid depository for contrac¬
tors' associations.

successfully with New York banks for corporate trust business
arising from growing sale of new securities to the public and
tjie expanding need for transfer agents, registrars, corporate

multiple

for several

fare plans.

Officer"'

ticulaf ly where they are listed on
than one exchange.
These

more

(11) A complete fiscal service to

The National Bank of Commerce, Houston, Texas

Mr. Boulet explains

mutual

country clubs and other clubs.

BOULET*
and Trust

to

funds.

proportion

transfer

to

that

which

the

agent is able

to

earn.

by

held stock issues
transferable interchangeably

several

transfer

agents,

par-

Nesbitt, Thomson and Company, InC*

Mills, Spence & Co. Inc.

Incorporated

Burns Bros. & Denton, Inc.

Greenshields & Co (N.Y.) Inc

Harris & Partners,

InO

f

W. C. Pitfield & Co., Inc.

Dawson, Hannaford Inc.
\

Many widely
are

Bell, Gouinlock & Company

Midland Canadian

■

Corporation

Equisec Canada Inc.

'•

The Commercial and Financial Chronicle
14

.

.

Take-Over Bids in Britain
By PAUL EINZIG

England's principal topic of domestic interest is reported to
in the progress of competitive bidding for the control
of some well-knov/n business firms. Dr. Einzig calls attention
center

objections to take-over bids except when done by

to Socialist

publisher of the Socialist party's newspaper, "Daily
Herald," to other types of better-grounded objections, and to
the advantages in still other cases.

the

LONDON, Eng."— During this
in Britain, take-over bids
have become the favorite topics of
conversation..
This subject has

bids, not only by those who
bids but also by inves¬

over

make the

summer

and

tors

who

speculators

were

the impending

clever enough to acquire
the
right equities at the right
moment.
And the public at large

crisis

takes

lucky

overshadowed

over

Berlin,
the

or

contests

At

the

the

Contrasts

beginning

Bomb, the approaching
general elect i

position delivered al major attack
on
the practice and on the Gov¬
ernment
for
failing
to
devise

o

t h

of

the

n,

reatening

revival

of

to

means

infla¬
tion, and even
wage

some

Commons.

length in the House
The Socialist Op¬

stop it.

..

New Yoi k State Bankers Ass'n

Methods

Two

formi¬
dable case against take-over Bids
on the basis of recent experience.
It is easy to marshall an impres¬
sive array of arguments against
them. It is considerably more difficult to suggest measures that the
.undoubtedly

is

There

a

Scarsdale commercial
dall Melvin

j.

Neale,

Henry

' National

Scarsdale

is

effect

the

Of course in the

is

doubtful

to

it

Moreover,
would

prevent

wise

be

whichever

same,

take-

possible. -Some of the recent
changes in control resulting from
take-over bids were on the whole

were

.

any

take-over

bids

the

the

or

constitute

small minority of the public.

and

game,

financial

changes resulting from successful

a

bids

But

people who have

many

terest

no,

often not to the best in¬

are

the

of

firms

taken

over.

not Although the shareholders benefit:

have

Socialist

opposition to take-over
most illogical in at least

is

bids

To some degree So¬

one^respect.
cialist

sufficiently

regret it

their

trol of

successful

some

They

well-known

of the
trol

about

business

the

the

Our

Reporter

transactions.
envy

Or

and

For the

bidder may exploit the

to

the detriment

of
for fear of attacks
politicians and
of
demands by trade

profits,

Socialist

by

steeper

wage

the

unions.

The

of

dividends

responsible

they turn green

of

quality,
employees,

generous

etc.

He

be out for quick profit and to

that end he

the

instead

back

the

into

low

valuation of their equities on
And it is the
level of Stock Exchange prices

that

opportunities

provides

take-over

for

bids.

nyiy pay out too high

dividends

ing made in connection with take¬

for

the Stock Exchange.

may

yellow with spite

their

of

level

low

is

low

high

treatment

the

a

proportion

large

own

good

^at the evidence of big profits be¬

firm

of

ploughing

a

reasonable

Not New

proportion of the profits.

He

may

There

is

the

in

new

months

recent

has

their

number

in

consider¬

increased

This has introduced an at¬
mosphere of restlessness on the
Stock
Exchange.
Investment in
any group of equities which
are
ably.

NSTA

Notes

liable

be

to

to

subject

bids has become

Since

1934,

from

a

the

traders

National

small

number

association

concerned is likely to be
subject to take-over bids. If lipbody bids for the other firms their

Security

of

traders

4,700 members in

Celebrating
versary

in

at

its

its

as

Association

membership of

has

shares

anni-

this

will

they had risen in
anticipation of the bid. So the in¬

t

vestment

as

tee

..

F.

Tisch

_

^

&

Co., Inc:,

the

SHREVEPORT,
formed
dler

developments of

Lone

this
Star

week

P. Fred Fox

Pany of Texas, and P. F. Fox

of New

York City,

who

have

F.

only from corporations,

attracted funds not

issues

offices
to

at

engage

business.

contracted

for

a

half

W^ith

TISCH, Chairman

National Advertising Committee
c/o Fitzgerald &
Company
40 Wall
Street, New York 5, N. Y.

time, it does, nonetheless give those with near-term funds to invest
a very satisfactory return during a period of growing" uncertainty.
*
The lull in the offering of corporate bonds, and a somewhat

offering' schedule/may give

less bulky tax-exempt

to the market for these issues.

is

ury

Nevertheless,

as

Oleksak

is

Essex

Street.

the Treas¬

going to run away.

Huge Treasury Refunding Looms
paying the highest rate for its new money

The Treasury, after

1921, will be faced soon with the

borrowings since

refunding of

nearly $14 billion of securities which come due next month. The
terms of the offer that will be made to the owners of the maturing
issues will be made known shortly. One thing appears to be pretty
granted as far as the impending refunding operanamely, that the obligations which will be
in exchange for-those issues which are maturing in August
shore-term securities.
It is obvious that the controversy

much taken for
tion

is

offered

will

be

future

the

over

legal interest rate

will not be settled one way or the

limit for Government bonds

other in time to be of any use to

in this impending financing.
Secondly, the Treasury cannot go into the long-term market,#
the capital market and sell a bond without meeting the existing

the

Treasury

competition and to do that would
of Government bonds of

mean a

nearly, if not

a

long-term interest rate limit of 4^4%.
be

rate for a distant maturity
full, 1% above the existing

This would seem to rule

immediate long-term operations by the Treasury whether
refunding or new money purposes unless there is a

out any

it

in

for

change

monetary policy or the Congress consents to a new
interest rate level, whether it be temporary or per¬

in

long-term
manent.

-

,

Note

Issue Too

Costly?

could, however, use securities with a maturity

The Treasury

longer than one year by going into the note
without interfering with the legal interest rate on
of

classification

Government
limits on the rates of interest
which the Treasury may put pn the issues which are being floated.
Howevr, when consideration is given to the cost which the Treas- '•
ury had to pay for the
betterment which took place in these
obligations marketwise, the rate which would have to be put on a
refunding note would most likely not be taken to very kindly by
bonds.

Up to five years, there are no

the Treasury.
In

addition, it
maturities

August

other

issues

as though the present owners of the
not going to be very much attracted to
those with a near-term maturity and this

appears
are

than

it

appears

as

to

though

the

the

Federal

Reserve

short-term

sector

market will have more securities to choose

Banks, the* largest
month.

Accordingly,

of the Government

from when the August

This means that the pressure
higher short-term rates is continuing.

Can¬

Government

The

are

Mass.
now

Government Bond Market Lackadaisical

se¬

a

<$l

bond

market—that

is

the

long-term sector

showing signs of wanting to do better price-wise,
but up to now this improvement has been very much of a profes¬
sional nature via some trading and the taking in of short positions
in certain issues.
The, amount of investment buying that is going
on in the more distant maturities is still very small and shows no
it—has been

signs yet of being other than what it has been in the past, com¬
which have to be made in Government bonds in order

mitments
—

con¬

Co.,

,

concerned,

for

936

nected with Robert C. Kerr &
103

as

refunding has been consummated.

Officers

ORCHARD,

S.

minor fillip

a

long

potential seller of bonds the non-Federal issues are not

a

Williams

Robt. C. Kerr Co.

INDIAN
Matthew

but also from

pension funds and individuals. Even though these favorable yields
on the two new Treasury bills is for only a very limited period of

has been

—

(Special to Th# Financial Chronicle)

ALFRED




La.

Williams, Jr., president;
Clavis W. Williams, vice president,
and secretary-treasurer.

page each.

.

losses

Clavis W.

salutes

Brewing Com-

by the underwriters, mainly the commercial banks. It is evident
that the high return which was available in the new money raising

particularly^ applies

Corporation

with

Avenue

curities

Convention

NSTA

substantial

after helping the Treasury take care of its

their digestion at

in

aided

a

profits.

as

Investment

proceedings.
The Advertising Committee

of
Alfred

in

not

Form Williams Inv. Corp.

reports, social events and
news

resulted

well

is

issue

comprehensively cover
Convention, the commit¬

related

the

one

lot

Governments

holders of the securities which come due next

supple men t to the
CHRONICLE. This edition
the

these days. The practice

has

publish

a

will

advisor's

happy

year,

Convention

to

the level whence

Anniversary Year-

and

likely to drop back

are

over

Raton, Fla.,

of

Association

Silver

Book

a

affiliates.

25th

Boca

November

the

32

Traders
to

on

from the standpoint of yieids and, as' a result,
better prices than they were taken at

unfavorable light

gamble. Antici¬

a

groups

grown

-

•

needs, decided that these issues were not in an

new money

take-over

pation of such bids has raided the
prices
of
many
equities,
even
though only one or two of the
security

current

or

the Pace Is

But

nothing

practice of take-over bids, but in
Britain

national

sociation.

By JOHN T. CHIPPENDALE, JR.
The money market,

keep

distributing

from

service,

con¬

they receive.
be interested in the
of

later.

abstain

firms

firm he acquired. He is not bound
in any way by traditions for

possible effect

aspects

or

of the firm for his

purposes

service

Or they may
broader economic

sooner

resources

customers

as

impending change of

on

with

tem¬

be interested in

may

the fate of the firm
worried

tor

three yea^r terms:

down the level of dividends. Many

by the high prices paid for their
holdings, if they remain-- share¬
holders they are apt to come to

the

or

a

to

tends

pressure

hand, also take
an interest in fhe progress of some
competitive bidding for the con¬

means

perament to take

firm.

eign-banks with agencies in New
York hold membership in the As¬

for

Administration

Com**Lof Administration,

of true Socialists it is one of
the mortal sins to make a profit

.

in

Jersey, New Hampshire, Canada
and South Africa.
Some 13 for¬

governing body, the

to its

Barge

Members-at-

three

elected

also

altogether even if this

bids

over

it

if
_

—

great

Bank

The

shares.

of

parcels

justified by leading to increased
efficiency and the elimination of
less productive units. Replacement
British
through any Stock Exchange trans¬
topic
of inefficient or inactive manage¬
Paul Einzig
action. On that ground alone they
of conversaments by more dynamic manage¬
condemn
take-over bids
out
of
t i o n
t h e
ments is to the lasting benefit of
weather.
When those interested hand—except of course the suc¬
shareholders, employees, consum¬
take-over
bid
made re¬
in the Stock Exchange as investors cessful
ers
and the country in general.
or speculators open their morning
cently
by
Odhams Press,
pub¬
Even though in a great many in¬
of
the
Socialist
Party's
papers
they look for the latest lishers
stances traditional methods are a*h
news about take-over bids. Wher¬
newspaper,
''Daily Herald," for
advantage, in a great many other
ever
people meet in London they two important groups of publica¬
instances
they
are
a
millstone
comment,or gossip about the latest tions.
around
its
firm's
neck. British
Unfortunately c l a s s-hatred is
developments in the struggle for
business is often gravely handi¬
the control of Harrods stores or not the only basis on which take¬
bids
can
be
criticized.
In capped by its management being
some
other firm which has "been, over
too tradition-ridden, and the in¬
instances at
or
is assumed to have been, the some
any
rate the
troduction
of
new
blood is in
hostile criticism, whichds not con¬
subject of take-over bids.
cases
useful and advan¬
It is true, those directly con¬ fined to Socialists or trade union¬ many
tageous to all concerned.
cerned as shareholders in
ists, fs only too well founded. The

stake

its

eyes

that eternal

all

banker, J. Henry Neale, succeeds Cran-

President of New York bankers gro^p at
June 26-27 Sixty-third Convention.

as

President,
J. M.1 Hodges, President, Exand change
National
Bank,
Olean,
Government could usefully take-Trust Company, Scarsdale, N. Y., N. Y.; Joseph P. Finnegan, Presiagainst the use of the device. was elected President of the New dent, First National Bank, YonAfter all, it always remains pos- York State Bankers Association at kers, N. Y.; Earle W. Allen, Vicesible to buy up gradually a con- its recent 63rd Annual Conven- President, The Chase Manhattan
trolling interest in firms whose tion. He succeeds Crandall Mel- Bank, New York City,
shares
are
held widely by the vin?
President,
The
Merchants
The New York State Bankers
public. The difference between^National Bank & Trust Company, Association represents '528 finanthis method and take-over bids is Syracuse, N. Y.
cial institutions including practimainly the dramatic character of
Albert G. Simmonds, Jr., Chair- cally all of the commercial banks
the latter method in securing con- man, Bank
of New York, New of New York State, a number of
trol with a single bold stroke in- YorkXlif^. was elected _Vi££.-Rres- savings banks, savings and loan
stead'of acquiring
it in small ident; and Robert H. Fearon, Sr., associations, and investment

subject of take-over bids was de¬
bated at

.

ultimate President, Oneida Valley National banking houses. In addition it has
Bank, Oneida, N. Y., was elected associate
members
located
in
method is employed for securing as Treasurer.
Alabama, Connecticut, Pennsylof July the
the control.
The New York State Bankers vania, Illinois, Massachusetts, New
rival

between

bidders.

H-

in

interest

sporting

a

freouent

the

controversy
over

cash.

in order to raise

Thursday, July 16, 1959

Neale Elected President of

firms with many

Furore

'

properties in which
branches operate,

real

the

sell

a

.

(222)

to

legal requirements.

meet

than

a

technical

market
between

until

rally here

more

is

known

Also, there is not likely to be more
and

there in

about

the Government bond
of the struggle

the outcome

the monetary authorities and

Congress.,

Volume

Number

190

5864

.

.

The Commercial and Financial Chronicle

.

(223)

fact "that

Challenge of the South
By W. W. McEACHERN*
'

Banker

contender to economic
in the

the

South

the

construes

'possess

leadership having outpaced the

a

industrial revolution.

new

banks

for

assets

on

However,

to

only pointed

economy

forward

advanc

ground.

The

moving

toward

will

we

ural

rapidly
position of

output is expected to top 30% by 1965; insurance companies
there now hold 26% of the nation's insurance policies; cotton

ship.

displaced by tremendous rise in such products as:
foods, chemicals, textiles, oil and coal, and forestry; and the
South in time~should become the chief supplier of foods to the
nation. Gaps still to be filled in the South, he says, are
greater
research

modern

To us,

effid

efforts, improved food processing industries,
marketing methods. All this, he adds, is the big
and not the rash of bad publicity.
the interests

resent, it is not
of

what

counts

the

the

South

it is

as

South

going to

much

so

has

we

a

as

and
news

than

and mis¬
of a more

those

to

cheerful

nature.

trol

mfedia outside the

or

in¬

news

the

even

with

South

troduction to

nor

the future and

cannot

We

media

which,

con¬

South,

within

ables

derstand

all

is

W.

imagination,

W.

exert.

the

The

its rash

of

is

South

publicity
ultimately the nation and the
will

conscious

be

of

the

ourselves

where have little respect for editors

advances

Thinking

making.
we

other

or

are

we

people

every-

who

newsmen

chandise sensationalism
f° se^ their product.

Ever since the War between the

South

has

received

f^Ch»UJ^lL^bJiCity- Tbese.bad
and
exaggerated
reports
have
been

increased

and

mer-

.

for

things which are
those things that

let

go

Perhaps it is only
people to speak of

cases.

natural

those
to

unnoticed.

..

bad
are

Certainly

true

matters

Based

a

Myrtle

these

reports,

talk

Beach,

the

by
South

to

discuss

the

good

flde the South are awake to the
*ac* that we are taking tremen-

has

0£

South.

is

readers,

Mr. McEachern
Carolina.

strides

cous

,

events and

many

concerning

on

past

learned something

which

determination
South

the

■

growth

our

big

news,

We

forward.

are

as

at

and

The

story

development

it should be.

the

beginning

n<^ industrial revolution. I

at

"at the

many

nationally,

is not accounted for by

«

As

ride

you

and

and

more

America.

of

it

the

with

products. There are almost 12,000
food 'processing plants operating

the

pine trees
cotton once was

where

in the

South, employing nearly a
people, but we need
more.
Food
production
in this
section has multiplied five times
in 50 years, with the same farm,
labor force. This is a prime illus¬

half

velopment

of
If

resources.

years

or

the de¬

additional

more

and

back

visualize

million

tration

natural

think

you

Needed

principal factors must be
improved if we are to continue to
advance agriculturally. We must
improve processing industries for
foods and we must employ mod¬
ern marketing methods to sell our

find

nessed in industry* and in

cal

25

increased

what

of

techni¬

enable us to
in spite of this

will

knowledge

accomplish. Yet,

the

tremendous increase

lack of diversified farming in the
South at that time, you will rec¬

V

in food pro¬

still do not produce
enough food for our own use.
duction,

ognize the major
strides
made
through the application of scien¬

we

,

Not Just

State

a

of Mind

tific
You have heard it said that the
South

exits

only

as

business

of

state

a

methods

and

We have only

the many

efficient

more

procedure. These factors

in

reshaping and will continue
mind, instead of as a place at all.. to .reshape entirely the agricul¬
Perhaps this is true. In fact, I am tural situation in the South.
inclined

to

does exist
not

just

that

agree

the

a

state of

one

state of

as

as

a"s many. I

predominating

state
in

South

South

The

mind, but
mind, but

and

of

the

the

South

is

Southern

fastest

States

rainfall

poultry

4%

comprise

We have

inches

with

a

national average

rainfalL-of 30 inches per year

Continued

increased

has

40

available .water. This

the

of

to

and we are using only

compares

growing cattle-raising

industry

amounting

per, year

section in the entire country. The

of

mind

found

resources

States.

are

convinced that the

am

Southern

the

begun to develop

natural

on

of

a

represented
land

the

lives
a

in

the

South.

geographic

climate

of

The

the

entire

Georgia and South Carolina Municipal Bonds

the

Corporate Bonds & Stocks & Local Securities

as

best

nation.

JOHNSON, LANE, SPACE AND GO.

Living is comfortable and operat¬
ing a business pleasant and re¬
warding.

Following

the

Reconstruction

CORPORATION

States.

South,

has

area,

Dealers

Distributors

THE JOHNSON, LANE, SPACE

the

of

United

Also, approximately one-fourth of
the
population
of this country

Say

beginning" in spite Of the

one-fourth
of

area

Underwriters

debacle

Incorporated
Members

the

after

Period

of

the

New York Stock

the
States,
the
manufacturing
facilities
droped in 1900 to a point where
they made up only 9% of the na¬

American Stock Exchange (Assoc.)

Exchange

between

Atlanta

Jacksonville

Augusta

Wire

Private

turing

facilities
the

of

22%

amount

now

national

total

is

1st

predicted they will
than 30% by 1965.

Exchange

Floor, Kentucky Home Life Bldg.
LOUISVILLE

Bell

2,

KENTUCKY

Teletype LS ,186

<-

'

.

\

*

•.

c;

It

'

•

Citizens

to
it

Southern

&

ATLANTA

'

is

estimated

This

that

Direct Private

during the

Wire

to

W. E* Hutton

the

means

South

it's efforts

to

must

fill

the

'

in¬

the

meet

demands

of

an

Southern Textile Securities

—

DEALERS

YEAR

exceed

Telephone:
Teletype:

2-4628

TP

National

Telephones:

Wire
Dominiek

ELgin 3-8621

Teletype:

JK

Wire

&

L. D. 47

181

Between

C., Legg

Dominick

<fc

Company




eager

they

homes with

and

decades

true.

Then

cause

PIERCE, CAKKISOINI.

of

IMP.

the

cial

are now

of

a

lack

nation.

South

of

capital funds,

No

section
more

of

1

GREENVILLE,
member

CEdar

midwest

stock

S.

Bldg.

C.

Teletype GV 6040
branch

security

federal

west

whitner

offices

bldg.,

st.,

columbia.

anderson,

s.
s.

c.

c.

the

in finan¬

than the South dur¬

ing these past 20 years. Southern

Co.

8.8

exchange

2-5661

116

8

Bank

National

Carolina

not
be¬

from other sections

has-grown

resources

this was
forced,

were

Furman
A

able and

Southern capital.

ago

we

to seek money

nation

Wlil BERN.

DISTRIBUTORS

established

.

to finance business, industry

Two
Offices

Systems
&

Municipals

DEALERS

G.

Alester

my

extent that
Building

8040
Private

John

Bank

UNDERWRITERS

expected of them.

business lifetime, I
have seen Southern banks, insurance
companies and other finan¬
cial institutions grow in capital,
deposits and total resources to the

JACKSONVILLE
Barnett

what is

During

Corporate Securities
TAMPA

...

South Carolina

population which must
be fed, clothed, and provided with
employment. On the other hand,
it means new opportunities for the
merchants, the manufacturers, and
the farmers of the South to prove
their ability to measure up to and

Southern Municipal &

G17 Madison Street

■

ex¬

panding

OUR*TWENTY-NINTH

& Co., New York City

needs
r

and

Local Securities

DISTRIBUTORS

Bldg.

crease

crease

—

Bank

Nat'l

GEORGIA

Telephone—JAckson 4-8091

Teletyp^e—AT 182

population of the South will in¬
by 16,000,000 people, or an
average of one million additional
people to each .of the 16 states.

'

Pres.

Kentucky Municipal Bonds

UNDERWRITERS

3,

more

period between 1950/)and 1975, the

JUniper 4-0226

Thomas Graham,

and

be

South's Population Grows

ipwv

.

Savannah

La Grange
All Offices

Connects

tion's facilities for industrial pro¬
duction. However, our manufac¬

THE

Stock

27

a

one.
However,
the
South also definitely exists as a
large geographic area, in spite of
what our critics say. Before we
gave Alaska statehood, the South

War

Midwest

and

page

South's

Member

the
the

Two

Agriculture
is
now
going
through the revolutionary change

during these
dark days of
Reconstruction, the
full development of the South is

tables

of
our

water

abundant

our

Processing, Marketing

in the South which has been wit¬

the

«.

other foodstuffs. With

climate

through the South

compare

you

growing
planted.

demonstrated

assured.

vegetables,

much

and

dinner

twenties,

our

of

more

meat

still

today

about the

people

fruits,

more

more

and

insure

can

duce

1939.

average

progressive

a

is

many sections of the country out-

.

with

purpose

and

this

...

been

the

since
the

supply, we should
become
chief
supplier of foods to

gress

something of

of

the

feal South, its opportunities and
potential. When I speak of
these opportunities and potential,
* aTn talking about great opportunity and potential. Already

Supreme Cc/urt in the seg-

regation

in order

Opportunity and Potential
My

intensified

during the last few years, especially since the 1954 decision
of the

learned

problems

250%
above

fact that we were so far behind
the rest of the nation economically.

progress. If we exhibit a
small fraction of the courage and

bad

of

tremendous

v

the

in

over¬

"

States,

also

tragedy

McEachern

the energy and

which

land

a

conflict.

world

the

effort

over

beginning to know and

simply

coming
and

pends entire¬

the

are

not

and

de¬

upon

and
in

recognize the fact that the South

ar¬

rived, but the

ly

the nation and all

over

world

the

future

wish to control any

we

have

I

these

64%

250%

to go 25 years ago0, and that
have a long way to go,
critics must recognize that we
have come a long
way,during this
period, and that all of our pro¬

future

en¬

have

Georgia,

is

Up

experiment stations, not only
produce food and clothing for

to

the people of the South, but also
for the people of the nation as a
whole. We can and should pro¬

our

problems which the people

things

un¬

point at which
we

would

that

the

media, because the story of
the
South now is beginning
to
break through the barriers. People

ex¬

to

us

in

reared

increased

we

Florida, Virginia and South Caro¬
lina. Throughout these years dur¬
ing my business career, I have
tried to develop an understanding

disagree,

we

news

helps to
plain and

and

have spent the past 30 years
executive
positions in banks

Income

well-kept

encourage

and

way

was

I

Capita

to

While we, as,southerners, have
to recognize that We had a
long

some

I

now

rate of income increase

of the South have faced. I believe

fortune

be.

an

born

because

tinue

farms, supply capital for research
through our agricultural colleges

tre¬

grown

capita income in the South

has

South,

qualified to

am

degree

of the

is

Thepastserves
us

limited

the

of tragedy, race conflict

that

question of what

a

I feel that I

*

about

listeners and viewers are inclined
to pay more attention to stories

rep-

matter

been

talk

I

have

of the insurance

This

.

When

years. However, diver¬
sified farming is still in its in¬
fancy in the South. We must con¬

largest banks
Southern insurance

also

Per

itf The
leadership de¬
pends upon the way We grasp the
opportunity before us for leader¬

has been

800% in 15

the

in

Per

this

of

banks

accotftrt^ for
policies out¬
standing in the United States.

26 %

entitle

resoimg^s

attainment

20% of the total

the

mendously and

lose

leadership to which its
climate, its geography and its^nat-

Mr. Eachern points out that the present 22% share of national

1

companies

economic

For ^example,

all

of the nation.

is

the

of

listed in the 100

are

we

that, fail¬

or

e,

South

hold

now

country. Eighteen Southern banks

great potential and that

a-

must go

ing

the leading

as

revolu¬

going

decade.

a

the way. We have realized that

past decade and possessing opportunities placing it at

beginning of

industrial
been

new

than

more

we

South" Carolina

this

has

this first decade has

.

President, The South Carolina National Bank,.
Greenville, South Carolina

'

„

tion

15

direct
eastman

wire

dillon,

to

new

union

york

city

securities & co.

The Commercial and Financial Chronicle

10

.

Thursday,'July

.

the

for

THE MARKET

makes

$3 a share
with the profit

year

dividend

1

mostly

guessing
place.

STREETE

By WALLACE

old $2

return to the

a

This

accelerating.

growth

AND YOU

...

when

matter of

a

it will

take
New York Central

5jC

*

❖

of the where it is a leading figure.
The
low-priced chemical
steel strike
how big inven¬ The company apparently has
item that has its fanciers is
done a remarkable job of in¬
tories are and how long it will
Newport
Chemical
take to use them up—weighed creasing efficiency to where Heyden
available
lately in the $20
its motors have shown con¬
on the stock market this week
The

and

pros

cons

—

and

kept

*

tags de¬

restrained stantly lower price

action

that

terials

able to stage

were

and

labor.

Some

pro¬

of

11-times

sizable

the

■

few trades.
In the chemical section the

Some

of

the

able

were

demand

at

drug items
pinpoint

show

to

times

metals

and

item that

was

discussion
son

subject of much

which

Mathie-

Olin

was

has

been

in

taking

Woolworth's

still

is

return

well into the 4% bracket.
The

chain,

largest variety

has been striving aggres¬

one,

general fared well, al¬
something of a respite after sively for efficiency and in¬
creased sales and, apparently,
though coppers had to weath¬
good action earlier this
er some new cuts in the
price month. Olin, when it was succeeding in both. It has im¬
of
the
metal
that
brought formed in 1954
through merg¬ portant and profitable foreign
momentary selling. They re¬ er of Olin Industries and interests including the Ger¬
bounded
showed
and

well.

Aluminums

persistent demand
in

were

the forefront

in

the metal group.
Steels' Uncertain Action

Steels

both

were

sold

and

bought prior to the strike
deadline, the evidence a bit
cloudy whether the followers
of

the

steel

couraged

issues

en¬

chagrined by the

or

of

prospect

were

strike.

a

This

group was prominent

heaviness

on

one

on

deadlock in

the

negotiations and, in fact,
paced the list to its hardest

one-day

setback

in

over

tions

lied

when

some

a

writeoffs

the

strike

picture

again turned black. It

was

a

and

be

underway last week
a bit
abruptly,

had died down

for American Motors

except
which

was

able to

keep

appearances on the

lists.

The

other

alone shaved

sizable

done

with

Big Three

its
highs

up

new

had

a

mundane time of it after Ford

ventures.

$1.82

per

This

share

earnings.
*

The big play in the autos
was

various

from

confusing showing.
that

take

to

they showed little
demand when negotia¬ them, including the aluminum
losses and start-up costs of
were resumed
and ral¬

new

*

*

eventual

liberalization

as

issue

sometimes

foreign and dohiestic results
continue to grow.

autos

Airlines generally are fa¬
vored in many quarters after
their long spell in the dol¬

drums of profit-less prosper¬
plus side of Olin is that ity. The laggard in this sec¬
it is still a very diverse opera¬ tion in
competitive enterprise
tion,
ranking ' fifth in the is United Air Lines which
chemical field, owns Squibb chose to
wait on Douglas Air¬
which

in

is

drugs,

ducer

of

a

well-known

is

a

arms

leading
and

name

pro¬

ammuni¬

craft's
both

jet

planes,'

American

enabling

and

Trans

World to jump

fuels

developments. More¬

not

profits, and still faces the

benefits of the traffic

for

various

bly

power

is not identified

to show good
progress. Pror
engines
jections give the company a
machinery, nota¬
lawn mowers good chance of showing be¬

but

with




by

of eight in¬

group

a

companies.
ICC

show

by

good

a

before the

recovery

end of the year.

New York Central, like other
carriers^ is faced with high unem¬

ployment and pension fund taxes
and also is faced with impending
negotiations this fall which

wage

could

authorized

was

It is

further

increase

estimated

expenses.

that the

new

pay¬

roll taxes will cost the road about

last year to guarantee
private loans that railroads obtain

$7 million this year and some $11

for

million

Congress

capital improvements

plication
times

the

main¬

or

New York Central's

tenance.

is for
large

as

ap¬

loan some ten
the total of loans

a

as

Commission

already has

ap¬

The

eight insurance companies
which would participate include:
Equitable Life Assurance Society
of the U. S., Aetna Life Insurance

John

Co.,

Mutual

Hancock

Life

Insurance Co., Mutual Benefit Life
Insurance
Life

Mutual

Co., Travelers In¬

Mutual Life Insur¬
Co. of New York, and Con¬
Co.,

surance
ance

Phoenix

Co.,

Insurance

General

necticut

when

the

high
consequently is

and

ratio

wage

than

sensitive

more

roads to any

its

takes

levy

full^effect. The Central has

a

many

other

changes in wage rates

and taxes.

proved for guarantee.

Life

Insurance

However, if gross revenues ex¬
pand, it is believed that many of
the

three

use

the

fund

ern

of

in

absorbed

be

can

operating ef¬
There also is the possi¬

improved

ficiency.
bility of changes in working rules
which would be

agreed to discuss
these

offset to wage

an

In fact, the unions

increases.

,rules

One

large

have

changes in
been in

some

which

have

force for many years.
-

The railroad stated it would

costs

new

view

Co.

factor

•

Central's

in

operations has been the reduction
in

its

passenger

to construct

mod¬

the

with

losses,

classification yards for freight

possibility that further cuts in this
"respect can be made.
The pas¬
trains and nine centralized traffic
senger deficit in 1958, under the
control units at an estimated cost
ICC accounting formula, amounted
of $70 million. The insurance com¬
to $32 million as compared with
panies are to be repaid within 15
$52 million in 1957 and it is hoped
years at an annual interest rate of
that the deficit might be reduced
5%. Repayments would be through
to $16 million this year and next.
equal installments, the first to be¬ The elimination of the West Shore
gin in 1963. The carrier said it
service and ferry would cut these
would draw $19,500,000 of the loan
expenses
by
$1,700,000 and,
in
this year, $17 million in 1960 and
addition, further savings could be
$3,500,000 in 1961.
made through new arrangements
The Central will pledge as se¬ with Railway Express. Also, there
curity for the„loan $57,819,000 of is a possibility of some property
its
refunding and improvement tax reductions in the New York
5% mortgage bonds due 2013, and ^and New Jersey service areas.
-

freight cars roll down the incline,

operators

retard

can

them

$113 million. Net working
capital was $34 million against $15

were

million

Central's

traffic

between

main

and

line

between

Ind.,

Haute,

Ohio.

of $29 million
practically absorb ordi¬

maturities

above

and should
nary

ppital expenditures.

Four With Keller Bros.
(Special to The Financial Chronicle)

B O S T O

d.ella
Court

and

BRAINTREE, Mass.

Corporation

Johnson

formed with

ington

Thomas

T.

with consequent

maintenance

re¬

expenses

—

Sorrels-

has

been

offices at 659 Wash¬

Street to engage in a
business.
Officers
O.

CTC

,

FinancialChronicle)

(Special to The

Charles

in

Keller
Inc., Zero

Street.

curities

duction

John F.

with

now

are

generally

nate trackage

—

Brothers Securities Co.,

has enabled the railroads to elimi¬

Cleveland,

N, M a s s.

Flanagan, Arthur L. Goldstein, E.
Albert Levine and Louis R. Sar-

control

Toledo, Ohio, and

Terre

De¬

the like 1958 date.

on

preciation charges this year should
total around $45 million or well

tracks

(CTC) projects are to be built on
the

and

cash

1959,

Form Sorrels-Johnson

centralized

New York

31,

equivalents amounted to $71
million
and
current
liabilities

and

them

the proper

to

March

On
cash

makeup trains.
The

ones

company

made

The

to

upsurge
broadly with auto¬ over, with its house cleaning
that should come when jet
is Briggs & Stratalready over, there is little
ton which has been
making doubt that the earnings re¬ equipment goes into operation
later this year.
the new highs lists
^quietly.
ports this year will continue
This

with

$40

This loan, if so guaranteed, would

switch

Airlines Favored

The

grouped

motive

of

improvements.

its

into the lead
and General Motors had tion, will share, in one of the with coast-to-coast jet service
nation's lowest-cost .alumi¬
posted historic peaks, with
using Boeing planes. Never¬
num
producing organizations theless, United has been able
Chrysler well below anything
and
participates
in exotic to increase revenues although
approaching a record.
An

guaranteed loan

a

Mathieson Chemical, was im- man operation
which fared $28,704,000 of 4% consolidated
well enough last year to near¬ mortgage bonds due 1998. Pres¬
mediately grouped with
ently, these
bonds are in the
promising growth companies. ly quadruple its dividend paid road's
treasury.
the
American operation.
But it lost some of the luster to
It was officially stated that In¬
The British subsidiary, which
in last year's recession.
dianapolis has been selected for
paid $ll1/£ million in divi¬ the construction of one of the new
Some ambitious expansion
dends to Woolworth, has au¬ freight
classification yards
and
plans bumped into^ poor-tim¬
thorized an increase that will work^on this project is slated to
ing, such as its joint alumi¬
begin^sfrortlv. Another yard will
num
venture
with
Revere produce an additional $2 mil¬ be built in New York State and
lion. The chain is rounding
a third in the Midwest.
The exact
Copper which was drawing on
out a dozen years with an un¬ location of the latter two will be
the company's cash last year
dividend of $2.50 decided after completion of an
when the recession caught up changed'
operating study. The new facili¬
which
not
only
is
well ties will be similar to the
with Olin's general business.
large
covered by the $3.75-$4 earn¬
installation at Elkhart, Ind., and
The company had to halve its
ings estimates for the com¬ the Frontier Yard at Buffalo, N. Y.
dividend
and, while
about
pany
but leaves room for In such yards, freight cars are
this disagreeable
chore, de¬
classified
by
gravity.
As "the

cided

month. But

re¬

Interstate

the

to

million for capital

surance

a

modest

a

federally

destined for

ture turns out as expected.
figure com¬
tions some of the issues have
pared with some of the fabu¬
Lagging Retail Issue
gone through recently. Litton
lous ratios of the premiere
Industries was an exception
The
group
that has had
and made its high in convinc¬ growth companies. More im¬ little sustained following for
portantly, it would probably
ing style.
long is the retailing one, nota¬
make the management scruti¬
bly such an old and known
A Sensational Performer
nize the adequacy of the cur¬
name as Woolworth.
This is¬
rent $2 dividend which has
Tije newcomer to sensa¬ been in effect since the stock sue, despite occasional de¬
tional action at times was
mand, has yet to stretch its
was split last in 1956. So the
Motor
Products
with- only
shares are usually included in year's range to as much as 10
merger
rumors
to help it
points. And, where yields
the lists of higher dividend
carve out fat
elsewhere are down- to levels
gains, one daily
possibilities.
where they obviously are not
improvement running well
An Expanding Chemical
past a dozen points on only a
being considered important,

This is

applied

cently

Commerce Commission to obtain

improvement

earnings.

correc¬

New York Central Railroad

be

,

cause

,

bracket. This company seems

good earnings
this year over
wide
last year and some estimates
gains not necessarily contin¬ jections indicate t hat tl\e
are that the final figure could
company has an earnings po¬
gent on any specific news.
tential in the nature of $6 a double the 62-cent profit of
Electronics were able to do
iast year. Here, again,
the
share
this
y e a r
and if
some wild soaring on occasion
achieved would leave the current dividend of 40 cents
but without threatening too
would be subject to manage¬
present
market price at
many of the year's highs be¬
ment review if the profit pic¬
around
except for a handful of items spite the higher costs of ma¬

16, 1959

$2;50 and

tween

#

.

(224)

se¬
are

Dam, Preside mt;
Sorrels
and
A.

Secretary.

Campbell,

and

property taxes. The Central
it has* spent $120 million
since Jan.
1, 1957, for additions

stated

ana

improvements to

its proper¬

ties.

RAIIWAY,- N.
has

Mann

Earnings of the New York Cen¬
tral

Forms Morton Mann Co.

so

this

far

year

have

been

635

business.

formerly

the

& Co.

high rate of operations in the

curities

a

months

that
of

Mr.

Mann

was

partner ih Mannfield
_

1

1

•

f

-

will

hamper earnings
the time being, but it is be¬

lieved

N.

'

steel and automotive industries. A

for

N.

Morton

& Company

helped by the upswing in general
business activity and particularly

steel strike

J.—Morton

formed

with offices at
Cora Place to engage in a se¬

Mann

traffic

in

the

final

Four With Nelson Burbank
(Special to The Financial

Chronicle)

the year will rebound.

BOSTON, Mass.—Paul R; Bergthat third quarter
carloadings generally show a drop holtz, Searle F. Holmes, Robert M.
[The views expressed in this from preceding months because of Tyndall and Paul A. Weber are
article do not necessarily at any vacations in many industries and
now
connected
with
Nelson S.
time coincide with those of the also because
of change-over in
Company,
SO"1 Federal
"Chronicle." They are presented automobile models. However, it is Burbank

as

those

of the author only.]

It is pointed out

anticipated

that the Central will

Street.

.

'

Volume

Number 5864

190

.

The Commercial and Financial Chronicle

.

.

(225)"

National. Bank

Several

Act
designed to
clarify the statute and to repeal
obsolete parts.

Banking Bills
Congress Is Considering

certain

rency
Committee.
Congressman
Paul Brown of Georgia is Chair-

By RAY M. GIDNEY*

considered

banking bills

by Congress ranging from bank

ing credit expansibleness.
of House

this

Subcommittee

and

Congressmarr'Abraham J. Multer

being

to increas¬

mergers

of

man

now

both

of New

York,

^*n0'

members.

are

He also relates that Chairman Mills

Ways and Means Committee will start

study

a

of

note

commercial

ending Dec

that

banks

all

in

insured .recent years in
building bank capyear ital. At Dec. 31, 1958, the amount

the

31, 1958, paid Federal

These bills are
receiving con- taxes on net income in the amount
sideration by Subcommittee No. p* of $1,199 million.
of the House Banking and CurQur banking system today is in

Comptroller of the Currency, Washington, D. C.

National banking supervisor reviews

worthy

Bank Mergers

on

S. 1062—Bank

taxation

beginning this'Fall. *Ratio of capital funds to total
be 7.7% and to deposits to be 8.4% as of
the end of last year, and FDIC fund to have passed $2 billion.

Mergers—a-

very

and

examin-

our

good condition, and our examin
report

ers

serious

ress

very

few

banks

with

{he

in

of caoital

sured"

1Q33

banking

addition

to

the

holiday)

generally

shown by

all FDIC in-

Commercial banks

was

funds to total assets was 7.7%.
The ratio to deposit liabilities was
g 4%>

Jn

commercial

billion

additiorl)
banks

valuation

the

had

insured

almost

reserves

$2
against

loans, of which it is estimated that

about $18 billion was in
,°r.
f,Se. U^,°^a

reserves

sound condition of the individual

banks, it is good to note the steady
nrn2rps_

fhaf

tal*pn

w

nlare

by the United States Internal Rev-

Continued

in

Pr°S^ess tnat has taken place in

on

page

—

A bank

supervisor's primary in¬

terest must be to maintain

sound

a

To
this end good banking legislation
is highly im¬
portant

and

should

there

to

Indiana.

bank

officer

certifies

writing that the bank has in¬
about

the

credit

status

is

and

relying primarily upon
the individual makers, the limita¬
tion would not apply. Unc^er pres¬

them

a,breast

paper,

of

banking laws
keep

instalment

formation

revise

and' improve
to

kansas

whether nego¬
tiable or nonnegotiable, acquired
from a single dealer, but if a duly

ent

of

there is

law

limitation

no

on

r

by Senator Robertson of Vir¬

proposed lending limit of 25% of
capital and surplus on consumer

in

be constant ef¬

fort

a

sored

accredited

healthy banking system.

and

strictive change would result from

ginia,

Senator

Fulbright of Ar¬
Capehart of
introduced, the bill
was identical with
proposed leg¬
islation which was favorably re¬
ported by the Senate Banking and
Currency Committee and passed
and

Senator

As

by

the Senate as S. 3911 of the
84th Congress and as part of The
Financial Institutions Act,

S7T451,

of

the

85th

Congress.

Like

the
predecessor bills, it would amend

the amount of negotiable consumer
instalment paper which may be

section 18 (c) df the Federal De¬
posit Insurance Act to require the

York State has

acquired from

approval of the appropriate Fed¬

always been

tiable

banking progNew

res s,

leader

ject

this

in

field,

a

and

Ray

been

M.

both

Gidney

Federal banking legislation is very
important to all banks and I am
that

sure

you

takes

eral

interested

are

place

Congress is

now

in

in

Washington.

considering

sev¬

banking bills which I would

like to describe briefly.
S.

1120

eral

bill

a

Reserve

count

vault

regular
be

to

is

to

permit Fed¬

member

cash

reserves

banks

to

part of their

as

under regulations

prescribed by the Board of

Governors of the Federal Reserve

System.

It also provides that ef¬

fective three years after the date
of enactment, New York and Chi¬
cago

to be reclassified

are

cities,

serve

The

bill

as

re¬

has

passed
the Senate, has been reported fa¬
vorably by the House Banking and
Currency Committee and should
come

before

very soon.

cash is of

Nonnego¬
now sub¬
of 10%
of

is

limitation

a

a

tightening and

liberaliza¬

a

tion.

much admired.

what

to

dealer.
paper

capital and surplus. Thus, in the
proposed change, there is proposed

its

banking laws
have

a

consumer

the House for action

The change as to vault
great importance to our

banks.

eral bank

bank

sured

banks.

bill

includes

number

a

of

between in¬
implies recogni¬
strong banking system

tion that

a

is

merger

It

to

vital

nation

The

supervisory agency for

every

the

and

pervised

and

H.

R.

6092

borrowing

would

increase

authority

the

National
banks from
100%
of capital to
100% of capital and surplus.
It
would

liberalize

of

lendhjg

limita¬

tions of National banks under Sec¬
tion 5200 U.S.R.S.
secured

readily

those which

the

63rd

York

Lake,

arise

obligations

Annual

by

out

and

of the

Mr.

Gidney

Convention

Bankers

J.,

frozen

or

staples

sale

A moderately re¬

talk

a

State

N.

to

marketable

of dairy cattle.
*From

as

by refrigerated

June

of

the

Association,
27,

before
New

industry.
supervisory

the standards which the amended

cured

statute

by leaseholds, which run
or may be extended at the option
of the lessee to run for a period of
ten years beyond the maturity of
the loan.
The permissible ratio
of loans to appraised value of the
mortgaged real estate would be-

75% for 20-year fully amor¬
tized loans. Real estate loans fully

cpme

guaranteed

insured by

or

a

State

a State
authority would be ex¬
empted from the real estate loan

or

limitations.
be

National banks would

authorized

construction
and

to

make

loans

on

18-month

industrial

commercial

buildings where
a valid and binding take¬
agreement without regard to

there is
out

the

real

estate

The

total

amount

loan
of

limitations.
construction

The

three

Federal

agencies would have to confer and
out' desirable application of

work

would

make

sideration

tors

the

such

usual

as

the

soundness of

the

the

effect

upon

and

needs

of

100%

capital

effect

banking system,
the convenience

community, the
the particular banks
whether the resulting
institution will be capably man¬
aged, soundly capitalized, and in
effect

upon

involved,

sound

a

asset

condition

and

whether the plan is fair and equi¬
table to the stockholders of each
bank.

They

sider also
of

would

have

to

con¬

the

competitive aspects
merger.
This means that

the

full consideration would be
to all the factors which

given

should be

and

Underwriters,
Distributors

and

considered and in the light of the

Under the amend¬

included

in

the

bill

as

A

passed by the Sbnate, the Federal
supervisory agencies would be re¬

important change would per¬
made to manufacturing

tive factors

Dealers

in

quired to request a report from the
Attorney General on the competi¬

of

and^surplus.

loans

mit

^

the

upon

industrial

very

the

con-

banking fac¬

the

ments

from

applicable.

They would have to take into

public interest.

agricultural, would be
50% of capital to

or

increased

bank

businesses

where

relies

involved in

a

merger

primarily on the
borrower's general credit standing
and
prospects to be considered
ordinary
commercial
loans
not
subject to the real estate loan lim¬
itations even though a mortgage
on the plant were to be taken for

Attorney General would
be required to furnish a
report
to the appropriate agency within
30 calendar days of the request.
Exceptions are provided for emer¬
gency cases. The supervisory agen-'

protective

make

H.

R.

purposes.

6093

is

bill

a

Spring

about 25

1959.

su¬

a

changes in the law governing real
estate
loans
by National banks
which we thifck would be practical
and helpful. Loans could be se¬

dential,

Borrowing Proposal

the

of

banking is

regulated

loans, industrial, commercial, resi¬
Increase

welfare

that

containing

proposed changes in the

STATE

•

MUNICIPAL

the

and

cies

would

also

be

semi-annual

required

reports

to

HOUSING

AUTHORITY

REVENUE

PUBLIC

BONDS

the

to

Congress of

mergers consummated
and if action taken should be con¬

trary to the views of the Attorney
as to competitive factors
they would be required to give

☆ ☆ ☆

General

thei'r

CORPORATE

SECURITIES

reasons.

For Banks—Br6kers—Dealers
'

v

'

'

Cites High

•

S.

1062

Treasury

Specialists in

is

BANK and INSURANCE

Support

Department,

^Governors
^

Level

supported
ok the

Federal

United""

Association.

Bar

1957,

'Chamber

States

At the

I

Company

BROADWAY, NEW YORK 4, N. Y.

BOSTON*

Teletype: NY 1-3430




Telephone

—

HARTFORD:

of

meeting of the

a

Association

7846

the Ameri¬

Feb.

on

19,

.

R. W.

Pressprich 8C Co.

Members New York Stock

Street, New«York 5

75 State

Study in the Fall

Street, Albany 7

75 Federal

tion.

135 South LaSalle

Chaiiman

Wilbur

the House Committee
Means

Mills

be

Fall,

and

study
made
we

interested

on

of

Ways and

?has announced that

extensive

be

on

this

beginning

a very
subject

in

the

shall all, of course,
in

the

result.

Exchange "7"""'"

48 Wall

not including any extended
comment on the matter' of taxa¬
am

will
Enterprise

.

resolution was adopted
the method of this bill.

Tax

—

☆ ☆ ☆

ican Bankers Association, The As¬

favoring

BALTIMORE

'

sociation of Reserve City Bankers,
The
Federal
Advisory
Council,

can

Direct

'

Federal Deposit
Insurance^Corporation, The Amer¬

House of Delegates of

Telephone: DIgby 4-2420

Re-

INVESTMENT STOCKS

Commerce and the American Bar

STOCKS

50

by the
Board

serv^^stem, the

the

Edwin L. Tatro

the

It

is

over

$18 billion and the ratio of capital

problems. Wonderful prog-

has been made in, the period

gince
and

important legislative proposal, was
passed by the Senate on May 14.
This bill [Text of bill reproduced
herein
Ed.] was jointly spon¬

assets is shown to

condition

17

Street, Boston 10

123 South Broad

605 Market

Street, Chicago 3

Street, Philadelphia

Street, San Francisco'5

M

29

The Commercial and Financial Chronicle

18

(226)

-

.

.

Thursday, July 16, 1959

.

*

.

f

Morgan Guaranty Trust Study Sees No Spurt
In Equity Financing Despite Propitious Market
financing, New
building
up for a flood of equity financing. The study presents an impressive array of factors offsetting the need for new owner¬
ship funds for all except those firms requiring a better bal¬
anced financial structure and
with

*

generalized

sale of

To Dissect Bole of

favorable to the

so

Life Insurance

shares, this reliance is

new

<.

of

The Nation's Economy

course,

subject

are

broad

to

tions

be

should

tion

Avenue

jn

even

there

area

den

prices, with the result that debtto-equity
ratios are
overstated.

Survey,

publication i.bility of bond interest as an exTrust pense, corporations in most in-

a

Company of New York.
The publication points out that:

market

under

recent innova¬
tions in financial practice — such

Conversely,
as

some

widespread use of the sale-anddevice—give a stronger

leaseback

Guaranty

Morgan

well

shown

are

to

decades,
corporate assets
recent

stances obviously find bond financing
relatively
advantageous

balance sheets than
conservatively minded ac-

July 28.

on

The five are Dr. John SutherBonnell, minister of the Fifth
Presbyterian Church; Dr/

Detlev W.

many

are

both of which have changed radselecting the vehicle for new cor- ically in the past three decades,
porate funds,
according to the"
"Given today's corporate inJuly issue of the monthly Morgan come tax of 52% and the deduct-

of

trend

tionary

for instance, some

'

the

Square""tfar-

land

tractive prospect.'

balance-sheet data cover only
manufacturing corporations, "and

companies that do not yet

new

deficiencies. Because of the infla¬

of

life

of

effect on the naundertaken by five

meeting at Madison

enjoy q receptive market for debt
issues, it offers an especially at-

ite

~

in-

its*

For

and generous dis¬
The most reliable compos-

favorable late 1920s. The two basic inhibittrend for corporate equity financ- ing
factors are the tax strucing.
ture and the degree of corporate
The attractiveness of equities is reliance
on
internal financing,

Guaranty

appraisal

and
will be

rationally-prominent figures at a

indeed,

welcome

candid

A

surance

qualification

stock during the present

still not enough when it comes

on

in total,

count.

.

ed to take a back seat to common

money.

.

pressure

ltitely, the popularity as a financing method that it enjoyed in the

not expect-

equity

of their new
Despite present

corporate en¬ not likely to be seriously dimin¬
terprise appears to have main¬ ished so far as the over-all corpo¬
tained generally good balance in4 rate
pattern is concerned.
For
companies intent on
its financial structure in spite of individual
its
relatively lessened emphasis balancing debt-heavy c a p i t a 1
on
stock sales.
Inferences arawn structure, however, the opportuafforded by current condifrom composite data in.this field, nity
"Viewed

receptive market for their debt issues.

a

Bond flotations are

1

the principal source
circumstances

Structure

Financial

in

Balance

companies not yet blessed

new

dividend

higher

payments to -the government."

Despite the current propitiousness of equity

York bank's analysis discerns no

of

<>hare

erable

Bronk, president of the

National

ABA Convention
Be

of Sciences;
Hon.'Ivy ^Baker Priest, Treasurer
of the Unitea States; Dr. Neil *H.
Jacoby, • dean
of
the
Graduate

May

Largest Ever
President

ABA

take

will

tion

appearance to

are

some

bank

and
President
of the American Telephone and
Telegraph Company.
Holgar J. Johnson, President of

University

place Oct. 25-28

Beach, Fla. Over 10,000

^the

expected and doubtlessly the
tax
legislative proposals
enliven
the
usual
lively

R.

Kappel,

Institute of Life

^Will

-

California;

of

Frederick

85th Annual Conven¬

announces

in Miami

School of Business Administration,

Miller

P.

Lee

Academy

preside

the

at

Insurance,

meeting

and

then summarize the statements of

from the standpoint of dire'ct cost, countants would affirm,
will
the
speakers at the conclusion.
common
stocks
during the past The net cost per year to a com"If no'account is takep of qualibankers' sessions.
Sponsors are the Life Insurance
year, together with the coincident Pany of a bond issue is only about
^a^ve factors, the evidence indi1
Association of America, the Amerrise in long-term interest rates, half
the before-tax cost, which ca^es that the ratio of debt to
f in! 'nCe that ■Jnay ex- jcan
Convention and the Inhas
created
a
more
favorable means that bond yields can be eqUjty for manufacturing corponffu 1 '
expec^ed,
The
climate for equity financing by roughly twice as high as dividend
ratj0ns has risen during the post- 85th Annual Convention of Jhe stitute of Life Insurance.
the
meeting is being held in conjuncbusiness*- than
has
existed
for yields before there is any net cost war perjoci ancj a]s0 that it is
American Bankers Association in
sharp advance in prices of

"The

,

stocks

for

advantage in a • Stock ottering.
Only the so-called glamor combeen, and divi- panies, whose s,tocks are selling

Price-earnings ratios

years.

many

about

are

high

as

ja^e

most analysts incline to the belief
that corporations in general are in
a reiatiVely comfortable position

have
yields have slipped below at extremely
price-dividena
bond yields, reversing the pattern ratios, enjoy such a net
aavanthat has prevailed for more than.JaS® a^ present
When companies
two
decades, except for a brief that do not fall into the glamor
they

ever

dend

period in the spring and summer
of 1957.

suggest

circumstances

"These

considerations—sucht as acnieving

corporations are likely to a desired debt ratio — outweign
place relatively greater emphasis the immediate cost advantage of
-on
stock
offerings, find, indeed, bond
borrowing,
lne cost of
evidence of such a healthy ten- equity financing is, of course, To
dency has already appeared.
I,

t

«■

.

,,

j*

according0"?) The

year

and'Exchange
stock

common

States totaled

ke understood in a different sense

sold

more

This

this

absolute

1957

"The

terms

they did in
ye*hr —
be expected' because

but this is to
over-all
ternal

as

tor

+r>

kI06

1

'sativoiif TL
nt
ly
favorable

.

r

along

major fac-

offerings.

by

the

In

the

1929,
dividend
all
corporations
of profits after

70%

only about 52% in the prosperous
years 1955-57.
Had the 70% rate
been effective in 1955-57, an ad-

T raise Tity fUudS

wnTlT
Hint
J seem to be the right time
c™slderatl™ t0

a

taxe?' as aSainst aa average of

J£L flTf.

ih*

year

t

amounted To

then.

was

which

conditioning

of stock

prosperous

corporate demand for exnow
is substantially

"For those comnanies that fore0

certainly

is

presently

volurrfe

funds

less than it

change

important

nolic^e^dTring the^pasl; Several

year,

the record postwar

—

s

Retained Profits Play Larger Part

decades
in

corporation

a

particular instances.

occurred,

the face of a sub¬
year-to-year decline in

offerings

of

value

future

billion in dividends

-<jitional $12

°ccasi01?s
on rel-

terms

would have been paid out in

those

were

rather

retained
an
excellent opportunity for cor¬
profits
of
corporations
totaled
porations that have relied heav¬
$118.5 billion, whereas net new
ily on debt financing in recent
money
obtained
by
companies
in

their

quent
m

achieve

to

years

capital

recourse

better

balance

structures. Fredebt financing

to

jeopardize

the

of a
company s bonds and thus run the
risk of making future bond offer¬
ings more costly. For firms that
y

have

rating

been

heavy bond issuers in
equity financing for
the purpose of providing a finan¬

recent years,

cial

cushion may now be

larly

appropriate,

instances,

where

particu¬

eveq in those
the
immediate

cost"of"equity financingTs
u

j

greater

financing is greaiei

than for bond financing. The ideal-

timing of

equity offering by.^
particular company depends, of
course, on prospects for the price
trend
of
the
specific stock
in
question."
a

Deterrent

this_background of

pres¬

ently

from

the

the

1958,

sale

of

common

stock,

preferred stock and bonds was
only ?79 b|llion
And of the s79
bj]ijon
oniy about a third came
eLoL. :„lloc
from stock issues.
"Thus

corporations were effect¬
ively
securing
huge
totals
of
equity money in this period, de¬
spite the fact that public offerings
of equity issues were not large.
This trend toward internal financ-

ing,

favorable conditions points
financing, there
are some offsetting considerations
which suggest that the equity in¬
is

not

destined

achieve, either relatively




to

or

re-

abso-

The

it

may

be

noted parentheti-

.

miitp

.

HiffprV

swings that may be quite anterA
porations, were forced to bid for
the same, funds in the open mar¬
ket.
at

Criticisms sometimes leveled

the

however, are in
the final analysis rather hollow,
because heavy reliance on retained
J
profits

practice,

seems an

sive response to
cy

the

inevitable defen¬
(1) the inadequa¬

of depreciation
face

steeply

of

allowances in

inflation

progressive

rates that would

and

(2)

the

personal

tax

funnel

a

coq^id-

It

corporations.

trustor all

.

however,

does,

Assurance

&

reg¬

in

an

at¬

tendance

as

large

or

to relate
the dollar commitments of corpofor

rations

interest

that

income

the
such

to

payments
available

is

for

The debt burden
corporations and the threat of

of

payments.

default

far less

are

now

than they

as

record

287

of

ABA

in

Lee

Conven¬

tion

last

P.

Miller

Form Interior Securities

he said. Mr. Miller

year,

Bank

Louisville

and

Trust

Company,

Ky.

porations
earned
their
interest
obligations 10 times over, whereas
in
1929
they did so only three
times
over.
Interest
payments
ately

risen

have

proportion¬
income
since

than

more

1955> but*certainly .the general

picture

of

been

not

has

strength

financial

essentially altered."

FAIRBANKS. Alaska
G.

Parsons is

Sullivan

convention

hotels,

50
the

on

Miami

Paine,

Hall,

grand ballroom

will

of

the meetings of the
Division

Division.

Bank

The

State

and

Savings

and Trust Di¬
will be in the
Meetings
of the several commissions, com¬
meetings

Fontainebleau

Towers.

mittees, and councils will be held
Deauville

the

in

OP

CONDITION

CORPORATION

Americana

and

of

120

the

Broadway,

Hotels.

by

the

the

other convention
will be announced later,

Speakers and
features

of

State

New

addition

the

to

cost

net

advantage of selling bonds and the
that

fact

retained

earnings

are

effectively buttressing corporate
positions, thqre are other impor¬
deter-rentS

tant

of

stock

new

of these
of

tion

of their

stockholders

reason

panies

to

any

is the desire of

10 acaieye

the

dilu¬
com¬

earnings

xne earnings

And

leverage that debt provides.

^

most

imDortant of

changJ7rf^buTn^as

all

is

psychology
reflecting the mildness of cyclical
adjustments in recent years. The

modeiate character has business
of
fluctuations, which
produced

in

stable ®arningsquelled
record

the postwar period, has

the fear of debt and

Many
have

companies

receivership.
that would

considered issuing

ligations

in

untroubled

the

on

debt/ ob¬
are

now

borrowers.

'Corporations,

relying

1920s

it

retained

is

tion

Cash,

York.

balances

banks

and

with

trust

other

clear,

earnings

are

as

will

convention

get

and

ances,

process

United

cash

place

on

of

Council
•

Monday,

on

will

Wednesday.

of collection.

States

$3,150,262.52

Government

and
600,097.31

i_

60,000.00

improvements

Furniture

and

Other

248,043.37

fixtures

406,178.78

assets

921,449.25
/•

,

ASSETS—

deposits

general

sessions

.Tuesday

on

meeting
Executive

will .conclude; the;

and

of

the

Council

convention

and
$1,684,585.16

corporations.
Other liabilities

2.261,368.83

>5
LIABILITIES—_

TCTAL

CAPITAL

Capital C
Undivided

$3,945,953.99

ACCOUNTS

1

—

$500,000.00
3.25.COO.00

,

profits—

615,077.24^

CAPITAL

TOTAL

AC¬

COUNTS

$1,440,077.24

AND

TOTAL LIABILITIES
CAPITAL

tThis
stock

bank's

capital

total

with

■

ACCpUNTS—,

on-

Wednesday afternoon.

ino'i-

of

partnerships,

yiduals,

divisions
meet

$5,386,0,31.23

LIABILITIES
Demand

Surplus fund

A

elected

newly

.

will

>

and

held

be

The

Sunday.

Executive

in

items

obligations, direct
i
guaranteed
Corporate stocks-—

under

the
commissions,*
committees,
councils, and other
official working groups will take
and

•'

compa-

nies, including reserve bal¬

TOTAL

with the opening of registra¬
on
Saturdayr^October
24.^,

Meetings

opposi¬

equity interests. An¬

achieve

to

sale

cash

the

is the traditional

tion

other

to

gby corporations. One

way

1959,

made-

n,_

Equities
The

"In

at

30.

call

ASSETS

■

Miller said.

a

Superintendent of Banks pursuant
provisions cf the Banking Law of

the

to

York,

New

June

cn

accordance with

in

Leasehold

Mr.

Arguments Against New

OF

TRUST,

York,

New

business

of

close

published

and

Mortgage Division
vision

&

COMPANY'

in the

as

Jackson

rim

on

General convention sessions will
held

Com¬

formerly

was

Webber,

REPORT

Beach

Harbour

Bal

to

Securities

Curtis and Bache & Co.

north.

the

be

with

secu¬

offices in the

Parsons

will occupy near¬

from

south

Mr.

pany.

a

Building under the firm

of Interior

1959 convention will be

Robert

—

engaging'in

rities business from

name

ly

with

Chi¬

is President of the Citizens Fidel¬

this

associated

been

Walston & Co., Inc.

10,-

National Bank

cor¬

Partners

the

t

a

recently

cent year

available, all nonbanking

business.

limited partner. Mr. Dempsey has

greater than
the
postwar

the Fontainebleau Convention

are

with

formed

Street to engage

1024 J

at

securities

a

Dempsey

—

been

Terrence M.
Dempsey, genral partner, and F. D. Jungerman,

have been at any time in the

past
generation. In 1955, the most re¬
for which complete data

Calif.

has

are

The

satisfactory one—is

Co.,

offices

in¬

istrations

dicates

MODESTO,

of

rate

the.
that there is no general¬
ized pressure building up for a first that the nationwide bankers
organization has had in Florida.
flood of equity offerings.
Because of the size of attendance,
"Another way of looking at fi¬
few
cities
in
the
country offer
nancial strength—and probably a
adequate facilities. Delegates to

more

Society.

Dempsey & Co. Formed

an¬

advance

suggest

call>r> results in an allocation of Panies

to increased stock

strument

through

an

Tax Factor

"While

1946

hj

h

Instead, these funds
retained by corporations, probably

three years.

come,"thus substantially buttressing the
infrequently.
The
equity base.
In the years from

present situation certainly affords

.

Q

anniversary

nounced.

ity

considerations affectmg the

100th

P.

e e

Miller

cago

Stock that may be highly relevant

in

Stock

dent L

other

in the United

corporate security offerings of all
types.

Aggre-

a

than $725 mil¬

increase

sets and current liabilities.

the

withL

celebration of the Equitable Life

,

ABA Presi¬

TavTTeciT^
gate'S have to b° USed with
nTaT
simnle comparison of im- caut.ion- of c.ourse> and the fact
^Itemaftv/costs ignores
sltaated do™
in

stantial

bond financing,

of

period. This view takes on
crecjibility in the light of other
favorable financial ratios for manufacfurj.ng corporations, such as
the present satisfactory relation¬
ship between so-called quick as¬
war

to

?ii95Lrhr
moreover,

cost

in the post-

0f retained earnings

inasmuch as equity financing in-

Securities

lion, compared with $380 million

vorable.

the

from

Commission, the
of new issues

proceeds

gross

,

...

c

jn terms of equity, with positions
least as favorable, as in the
1920s
and
probably
more
so,
mafniy because of the huge total

{jon

„eayh'

^iaia11

October 25-28,

^

category undertake equity financiri&> it is usually ^because other

that

higher now than in
1920s. Actually, however,

m0(ferately

as

.

.

par

$5,386,031.23

consists of

vdlue

of

common,

$500,000.00.

MEMORANDA
Assets

Joins

McCarley & Co.

RALEIGH, N. C.—John E. Sin¬

other

of

ment

joined the Sales Depart¬
McCarley

members

New

Exchange, in their
Carolina
He

ritt

was

&

&

Company,

York

Raleigh/

Stock

North

liabilities
purposes

Securities
ax-e

clair has

pledged or assigned to

secure,

after

serves

I," G.
named

above

as

and

for

$109,526.45

__

shown

deduction

above
o;

re-

,

of—

F.

institution,
statement

knowledge

v

1,183.94

LE PAGE. President of the above-

and

is

hereby
true

to

certify
the

that

best

of

the
my

belief.

Correct—Attest:

Office,

Bryan

Building.

formerly with King Mer-

Company.

RALPH

WM.

R.

JAMES

CREWS

WATSON
T.

ASPBURY

{-Directors

Volume

Number 5864

190

.

.

.

The Commercial and Financial Chronicle

(227)

Lewis
of

A.

Lapham,"

Bankers

Trust

member

a

Company, New

dent

Bankers

and

ETC.

REVISED

Treasurer.

THE

*

Frank

*

FIFTH-THIRD

W.

Beasman

UNION

TRUST

National City Trust Com¬

First

New

Yprkv,announces, the

appointment

Mitchell formerly

Mr.

trust officer and Mr. Rob¬

was,,a
ertson

Assistant

an

Vice-Presi¬

The

trust
company
also pro¬
Ogden K. Myers from As¬

moted

sistant

Trust

Officer

Trust

to

Officer.
#

change Bank,
New

New

York

York,

Trust

and

of

Company,

New York, have

unanimously ap¬
proved plans for the merger of the
two

institutions

Chemical

Trust

Company,

Adrian

M.

the

under

Bank

name

New

Harold

York

Helm

H.

Massie, respective
on June 2.

Chairmen, announced
Holders

New ""York

of

stock would receive

the

Officer of

of

their

Chemical

stock

for

each
held.

now

shares

Bank

Trust

1% shares of

institution

merged

share

out¬

now

standing would remain outstand-

OF

CONDITION

Broadway,

close

the

to

the

the

York,

New

business

of

published

by

in

OHIO

Dec. 31,'58

bined

of

of

at

30,

made

Banks

pursuant

Banking

Law

of

ASSETS

and

with

Lewis

Vice-Chairman of

a

trust

and

compa¬

cash

items

ligations, direct and

$8,450,483.21

20,801,967.00

political

and

subdivisions

bonds,

1,929,557.58

and

notes,

de¬

bentures

482,098.62

Loans and discounts (includ¬

ing $3,594.09 overdrafts)—

Banking

premises

furniture

tures

18,699,886.96

owned,

and

it

Grainger, President, and
Perkins, Vice-Chair¬
of Chemical Bank, would

'

fix-

».

~ 263,294.85

,

President

as

Executive

A. L.

As

institution.

enlarged

Other

176,466.89

elected

July

assets

215,505.41

TOTAL ASSETS———

$51,019,260.52

LIABILITIES

Demand deposits of individu¬

als,

partnerships, and
porations
;

Trustees

to

1_

$22,193,378.11

tions

.

Deposits

United

Government

v

-

4,231,828.10

._.

of

States

361,023.39

——

Deposits of States and politi¬
subdivisions

cal

17,420,745.20

Deposits of banks and
companies

trust

675,297.47

—

Other deposits

(certified and
checks, etc.)

officers'

TOTAL

Other

DEPOSITS

2,267,461.14
$47,149,733.41

„

liabilities

TOTAL

216,956.09

Willis McDon¬

was

Senior

Vice-President

the

of

N

merged bank.
the

excess

third

d

o

the

Federal

y

at

the

time

of

in

largest

New

meetings

The

New

York

CAPITAL

also

is

director of the J.

a

M.

Thomas

BANK

Capital t

NEW

Undivided

1,000,000.00

__

profits

AND

1,652,571.02

New

York

U.

184,995,489

174,538,208

Loans

Trust

Kruse

*

:h

appointment

of

Mar. 12,'59

$77,891,048

70,158,232

69,282,752

Cash

due from

and

16,702,351

16,430,272

13,448,881

13,458,272

39,938,508

39,383,704

586,869

1,196,745

banks
U.

Govt, security

S.

holdings
Loans

—V

discounts

&

profits—

Undivided

*

*

*

'

I., N.

L.

June 30,'59

Y.

<£

Dec. 31,'58
$

189,092,870

183,475,051

"
•

7-r—7'

resources-,

•

172,269,186 167,498,468

Cash and

due from

23,502,024

rity. holdings-—

Company,

51,485,703

48.883.757

discounts

60,380,223

58,094,748

U.

Govt,

S'.

Loans

&

Undivided

Flanigan, Chairman of the

-

——

secu-

'

618,010

profits—

R®ard.
TOTAL

CAPITAL

tThis

stock

bank's

with

capital

total

par

$51,019,260.52
of

Assets pledged or assigned to
—.secure- liabilities
and
lor
Loans

purposes
as'

after deduction
of

common

above

of

,

as

$11,271,764.20

are

reserves

—.

of reserves

158,763.25

—

W.

LANDFARE

any

Y.

N.

of

and

CHRISTIAN

W.

JOHN

JOSEPH

B.

V.

KORELLl

E.

BOOTH!.Directors

TAMNEYj




raised

Division

to

Neff-

of

and

Trust

named

were

New

York,

have

an¬

following promotion
at a recent
meeting of the board of directors:

X

■

Edward

C.

..V-

~

V

Jit

.

..

i.

Manufacturers and Traders Trust

Weist, has been ap¬
pointed Assistant Secretary in the

of

of

Per¬

sonal Trust Division.
*

*

Company, Buffalo, N. Y. and Bank

Ellicottville, Ellieottville, N. Y.,

Manufacturers

and

The

in

the

same

First

National

of

Bank

Chicago, 111., held July 10, Homer

Livingston,

nounced

President,

two

promotions

staff

and

A.

■

*

Crum

were

Mr.

of

Elmer

and

A.

promoted from Assist¬
to Vice-Presi¬

Crum is the European

representative of the bank in its
new London office, and Mr. Tittle
is
in Division
"G", one of the
commercial loan

divisions.

Assistant

New

C.

were

Cashiers

elected

Hugh Albers, Stanley C.

Willis

Lovitt

J.

partment
Secretary.

in

Trust De¬

the

*

Company, Jeannette, Pa. and Peo¬
ples First National

Bank

&

Trust

President

of

*

Promoted to Assistant Vice-Presi¬

Company.

&

Peoples
Trust

Vice-President

Savings

Jr.,

was

Officer.

Robert

Loans

discounts

&

12,051,717;

XUndivided profits—

Milo
S.

A,

12,047,593

448,336

Hefferlin

Merrill

486,045

the

of

Thomas

and

elected

were

Bank

Vice-

of

Amer¬

ica, Los Angeles, Calif.
*

E.

*

*

J.

Kolar, a veteran of 35
in banking and a Senior

years

Vice-President

at

the

United

Ore., has been elected to the

new

position of Executive Vice-Presi¬

dent, according.to E. C. Sammons,

that

Sammons

also

indicated

proposal to make the

a

Executive Vice-President
the

of

ber

Board

new

mem¬

a

Directors

of

of

the bank will be presented at the

board meeting on July 31.
Mr.

Kolar, who has been

President

at

U.

a

Vice-

National

S.

since

1944, has been with the
His first job in

bank 29

banking

years.

with the old West Coast Na¬

was

tional

in

Bank

1924.

He

joined

U. S. National in 1930 when West
Coast merged with U. S. National.
Mr. Kolar served

of

tive

as

the

bank's

for

branches

representa¬
upstate

several

Assistant

President since

in

Senior Vice-

a

January, 1958.

*

*

Arnold

1936

Vice-President

He has been

1940.

be¬

years,

coming Assistant Cashier in
and

Mozart

Lovelace, V. Scott
Rice, and Melvin C. Yocum.
Four npw Harris officers named
were
William
R.
Hodgson and
and

John

and

v

Assistant

Roberts,

*

Hart,

Assistant

Winter,

in

the

trust

Bank

W.

named President.

Senior

Thon,
Leon-

depart¬

in

Bank

1944.

He

Harris

the

joined

was

made

clude

these
shares

Lovelace ^camq
to
1929.
He
became
Cashier

in

an

ILLINOIS

TRUST

resources-

an

underwriting group headed by

A.

E.

&

Ames

CO.,

CHICAGO,

■:

ILL.

Dec. 31,'58

McLeod,

Ltd.,

Co.

and

Greenshields & Co., Inc., Mr. Hart
added.
The
add

issue

new.

$6,750,000

to

of

will

shares

the

paid

up

capital of the bank, bringing it to

for

highest

Canadian bank.

The rest account

will
to

a

be
new

increased

by

any

$14,850,000

high of $137,850,000.

.

2,648,332:415 2.857,982,123

655,236,328

795,138:882

holdgs.

592,946,953

816.518,524

discts.

1,179,574,573

1,066,113.632

profits—

38,952,349

36,277,613

&

Co. Ltd.,

&

$60,750,000—the
NATIONAL

due

banks—

Govt,

curity
Undiv.

Assistant

2,555,170,750

and

from

Loans

in

2,349,177,291

Deposits

S.

bank

%

%

&

the

1953.

CONTINENTAL

U.

plus the smaM number of
representing rights which

not exercised will be sold to

were

sistant Vice-President in 1952. Mr.

Casli

the

Act,

an

Assistant Cashier in 1949 and As¬

Total

provisions <of the
offer did" not in¬
fractions
of
shares,
and

Bank

Young, 'Weir
Bliss

July 10.

on

with

line

In

Thomas C. Octigah

R.

Secretaries

expired

17,

the banking department

in

dents

$

Chief

Bank

9,225,966

and Savings Bank, additional shares of capital stock
Heading the list was at a price of $32 per share was
a new Vice-President, Charles M.
99% subscribed. The offer, made
Bliss, in the banking department. to stockholders of record April

*

under charter and title of

National

7,747,189

9,642,133

Govt, security

S.

Trust

Harris

Juris 30,'59

Baltimore, Md., S. Page Nelson,
was'elected Chairman as well as

First

7,132,841

President of
the
Bank
of
Montreal, Canada,
Kenneth V. Zwiener, President, announced July 14 that the bank's
announced
eight promotions at offer to stockholders of §75,000

Traders Trust

of

Executive

29,148,477

from

due

holdings

G.

*

the

29,172,221

and

banks

Assistant

elected

was

Company.
and Trust

Cash

the

election

the

ant Vice-Presidents
dents.

in

an¬

officers.

new

BANK
.

First Jeannette Bank

Dec. 31/58
$32,023,706 $32,150,919

resources

Deposits

Mr.

merged under charter and title of

Department

BANK,

*

*

Following the regular 'monthly
meeting of the Board of Directors

Mr.

National Bank

Security Trust
Company of Rochester.

the

NATIONAL

President.
*

charter and title of

was' approved

*

States National Bank of Portland,

Vice-President

President of The New York Trust

nounced

600,345,865

June 30,'59

Vice-Presi¬

ment.

First

*

SECOND

Presidents

Division.

cott, Wolcott, N. Y., merged under

of

Company, Pittsburgh, Pa., merged

Correct—Attest:

of Cleveland,

Homas, with National City
since 1945, previously was Assist¬

The

hereby cer-.

best of my knowledge and belief.

Bank

Mr.

Wol-

T, KENNETH W. LANDFARE, Treasurer

of thd above-named institution,

tify that the above statement is true to the
KENNETH

Comp

Investment

199,655.88

shown above are

after deduction

Trust

Rochester,

Rochester,

19,869,684.

*

Department, Alan Ho-

was

M, Massie, Chairman of
the Board and Hulbert S. Aldrich,

which

—

Securities
of

.

shown

Security

%

Adrian

662,487,850

21,447,744

THE

U.

Investment

Trust

Company,

consists

value of $1,000,000.00.

MEMORANDA

other

i>.

AND

ACCOUNTS—

the

Cashiers,
#

LIABILITIES

$

Beam, President, The

638,83p~^vpheodore\ H.

sH

*

*

discts.

profits—

&

Undiv.

July

were

22,322,952

banks

373,202,610

571,061,114
695,330,989

se¬

holdgs.

Chicago, 111.

NATIONAL BANK,

SECURITY

439,320,990

curity

1,479,300

Golder, Elbridge Keith, Charles L.
Monroe, and Marshall Q. Rowley.

$79,451,404

resources

Deposits

York, is announced by Hor¬

C.

*

June 10,'59

Total

J.

of Manufacturers Trust

an

1,362,961

sis

$

due

b,ankd__i

Govt,

Total

B.

86,487,889

1,503,806

profits—

COLONIAL TRUST CO., NEW YORK

Treasurer

as

27,279,120

93,828,924

discpunts

&

❖

Total

John

26,207,420

22,798,136

„—

Undivided

-.

Assistant

ace

$3,652,571.02

—

32,102,264

;

respectively.

❖

170,381,726 159,909,118

—

Govt, security

S.

78,293,723

Tittle
$

due from

and

holdings

The merged
bahk will have total capital funds
in excess of $388,000,000, on the
basis of June 30 figures.

CAPITAL

'

ACCOUNTS

Bank

—

banks

90,999,721
1,845,737

security

profits

Guy

Mar. 31,'5$

and

S.

»

Investment Officers.

TRUST CO.

YORK

resources-

Cash

38,138,296

official

June 30, '59

Deposits

Company. Shareholders of Chemi¬
cal authorized 2,100,000 additional
shares fld capital stock, making a
total oir8,476,590 shares, and in¬
creased the par value to $12 from
$10
per
share.
The
additional
2,100,000 shares are to be ex¬
changed for present stock of New
York Trust in the. ratio of 1%-

New
TOTAL

Total

York

Trust, with assets of over $850,000,000,
will
be
merged
into
Chemical, with assets of $3,400,000,000,
under
the
name
of

The

$1,000,000.00

Surplus fund

New

39,593,862

six

s

that

;

&' discounts

Dec. 31/53

ASHLAND, KY.

John

J.

DETROIT,

1,798,761.472 1,681,978,201

from

and Arthur. T. Boanas

of

OF

$

14,746,963

Govt,

ant

Cash

136,336,550

13,774,708

trustee.

au¬
v

proposed

144,800,126
due

and

•■if

a

❖

FEDERATION

has

Goodfellow,

elected

Deposits

ACCOUNTS

a

Di¬

board's
Commit¬

Finance

and

also been

thorities.
is

He is

Henry Schroder Banking Corpo¬
ration, New York, the Schroder
Trust Company, New York.

plan. Before
becoming effective, however, the
merger requires approval of the
Superintendent of Banks of the
York and other

Vice-

and

tee.

voted .in favor of the

State of New

Treasurer,

BANK

1,976,030,086 1,859,538,145

Deposits

$

mans

held

he

resources-

Loans

Mar. 31,'59

dent,
1954,

.

148,762,416

In

and Treasurer.

Executive

CONN.

$

the'

$

•

Total

CO.,

at the Main Office.

in

NATIONAL

from

TRUST

8, announced several
new
officer appointments in the
Trust and Banking Departments

A.L.Williams

5,240,685

*

June 30,'59

*

161,103,426

Ohio,

and serves on the

rectors

more
than
the
two-thirds of the out¬
standing stock of^each bank was

5,547,175

$

as

THE

U.

resources

Francis Jf.

member of the IBM Board of

necessary

6,087,339

COUNTY

,

his

Controller,

He

161,515,531

STAMFORD,

Undivided

successively the corporate posts of

Com¬

Trust

175,483,995

June 30,'59

S.

108,027,688

6,267,300

Undivided profits—

»

profits__

holdings

Vice-President

approved the proposed
merger of those institutions.

77,015,026

—

FAIRFIELD

Loans

Executive

con¬

66,281,905

security

*

U.

56,675,050
151,312,851

121,341,661

discounts

&

DETROIT, MICH.

&. discounts

THE

1936.

to

55,968,717
156,284,806

security

73,532,017

banks

has

since

Mar. 12,'59

"

———

holdings
Loans

128,551,237

National City

President

held

CO.

388,043,510 338,425,160

Govt,

Cash

associ¬

Prior

it

U: S.

of

election

and

Y.ork
the fourth largest nationally.

TRUST

&

359,317,289 339,333,200

from

due

Govt,

S.

$

329,903,835 312,403,420

and

banks

H*.

BANK

resources

Cash

and due from

banks

Deposits

ated with IBM

the

of $4,300,000,000, making

special

e

n

liams
been

have

Cash

Total

Wil¬

Mr.

Reserve

Deposits

of

the bank.

the basis of total resources the

for-1,

e

Dec. 31,'58

427,897,016 379,806,689

resources

was

Board

by
O.

President

plan is subject to approval
State
Superintendent of
and

Deposits

sH

an¬

and Director nounced
Trust, would be' George

York

$47,366,6&9.50

LIABILITIES-

the

York,

Vice-President
New

The

*

Total

5,444,917

^

June 30,'59
Total

-

7of

it

Chemical

deposits of individuals,
partnerships, and corpora-

Busi¬

Savings Bank,
New

cor¬

Time

5,994,799

Undivided

Corporation,'

9

tions and salaries.

It

COMMONWEALTH,

$

114,014,220

163,240,938

profits—

CONNECTICUT

Loans

*

International

of

Machines

ness

is

It

*

the East River

on

THE

Hi

June 30,'59

154,279,376

83,855,071

—

disccunts

&

holdings
,

planned that all other officers and
employees of both banks would
be" retained in their present posi¬

of

OF

*

-

Williams, Executive Vice-

President

of

Officers

Moore, Chairman of the
*

Vice-

and

IJ.

Real estate owned other than

banking premises

THE

Committee,
July 8 by -Wil¬

bank's board.

H.

Senior

of

10,096,214.

BANK

U.

Lapham

announced

was

liam

B.

Substantially

guar¬

States

A.

of the Executive

man

bank.

merged

pany

anteed
of

the

such, these five would constitute

and

in

process of collection
United States Government ob¬

Obligations

of

Chairman of the merged ba.nk.

ald,

195,799,885

11,814,964

profits—

85,446,002

HARTFORD, CONN.

currently in July, shareholders of
Chemical
Corn
Exchange Bank

other

nies, including reserve bal¬

none;

of

continue

1959,

call

a

York.

New

balances

Other

have

and

Executive Committee for the past
nine years, has been named Chair¬

Gilbert

the

339,951,702

discounts

*

security

York, Board of Directors and its

Board

the

156,777,023

320.003,766 346,225.378

&

DETROIT, MICH.

83,958,206

Govjt.

Loans

Hulbert S. Aldrich,
New
York
Trust,

would become

would

York,

New

S.

Undivided

supervision of the com¬
trust
departments of the

President

At

ances,

Committee

merged bank.

man,

175,338,852

holdings'—.—

Undivided

373,373,181

*

Isaac

rity

secu¬

from

due

$

from

Govt,

Loans

317,286,320 337,825,580

and

'-•-holdings

Mr.

capital funds in excess of
$385,000,000 and total resources in

with

of the

provisions

State

banks

Executive

merged bank.

merger

June

on

accordance

Superintendent

Cash,

U.

Oq the basis of figures at March
31, 1959, the merged institution

Company
50

as

Board.

OF

Underwriters Trust

the

continue

Chief

the

Trust

Banks
REPORT

of

would

Massie would become Chairman of

the

*v

#

Directors of Chemical Corn Ex¬

and

Helm

Chairman- and

the

S.

$

banks

,

$

—

The

Deposits
Cash

and due

Dec. 31,'58

953,882,211 954,939,603
8o7,440,9i3 868,916,313

,

general

dent.

of

shares of the merged insti¬

as

Mr.

Vice-Presidents of

as

Edward F. Mitchell and James E.

Robertson.

ing

tution.

resources——

Deposits

CO.,

353,070,981

_

CO.,

$
Total

Cash

$
resources

TRUST

&

June 30,'59

U.

June 30,'59

pany,

BANK

DETROIT, MICH.

—

•

CINCINNATI,

Total

DETROIT

banks

;

CAPITALIZATIONS

.THE

J.

elected Vice-Presi¬

was

and

Senior

Carroll

and

were* named Vice-Presidents.

BRANCHES

OFFICERS,

elected

was

Carman and William A.

CONSOLIDATIONS
NEW

Eagan

Brodferick

News About Banks
NEW

ard

Vice-President

19

se¬

.

*

*

*

Juan Labadie Eurite was

Executive

Vice-President

Government

Development

for Puerto Rico.

elected
of

the

Bank

20

The Commercial and Financial Chronicle

(228)

and

Making Canada Canadian

of

By HON. ALVIN HAMILTON*
.

.

.

v„i-

-

..

XT

Minister of Northern

least

at

Quebec,

in

billion

a

tons

of

p«c„,,»*oo0

ore.

1,

iron

Canada

in

ore

self-

Canada

.

'

.

.

.

1959

Thursday, July 16,

.

invariably carried put at the
of the integrated operation,
In the case of foreign companies

is

site

■

Possibility of Western Canada

The growth of Western Canada

sufficient

of iroyie in^nada, sufficient

AHair^iuid National Resources

make

to

undertake

sufficient in iron and steel.

There is an absolute abundance

'

.

Schefferville

at

contain

.

engaged in the production of iron
ore

Canada, all processing is

in

^ ^ region to the being done outside Canada except
demand and
large export mar- point where it is about to provide for such concentration of ore as
ket for generationsrPi?ionfll ^hort— ic* small but promising industry, from txie necjwag fo^shipment
to come The a
opening may be mine site* axigfgioi"
on]v
Gxpcinciin§ our sIggI
^

a

A top

Canadian official calls for

J

.

a

cost
*

i*i

*

•

break-through in order

1

ci

national program

to create an integrated steel industry, and a

m

make

to

Canada out of two. Asserting

one

crpc

i"

l*

that the next 40

what he terms

the

are

no

Canadian

operating in Canada,
industry and his Government.

for:

firms

American
*

f

i

+

hSn 7re1mU°ted
million

/

To

intents

all

and

purposes,

therefore, the Canadian iron ore
that if ever a country has needed
industry began in 1939. Since that
a
program
of national developdate shipments have increased
ment, that need h^s existed in pervade every segment of our nar dramatically. 100,000 tons were
Canada. Here we arte, a nation of tional economy.
They touch the'mined in 1939. .This has grown;
only 17.5 million inhabitants, oc- roots of our social and political in 20 years to neahly 20 million
cupying a land area which else- existence. They affect our produc- tons per year and the industry 'is
where
might hold several hun- tion and trade, and they shape our now
a
major
contributor to
believe

I

million.

dred

land
us

that

is

it

Yet

to

most

is empty;

space

fair

of

our

90%

ocer

of

huddled within 200 miles of

are

southernmost boundary.

our

say

immense, despite the. many
evidences of prosperity which we
see all around us. These problems*
are

stature

Here

of

neVjhbor,

great

our

the

Twenty

*

*

*

the producminor, the

ago

years

tion 0f 0n and gas was

United States, lie all of our governmental centres; virtually all of

production of iron negligible, and
uranium possessed no commercial

manufacturing industries; most
lumbering and agricultural

significance. Today, Canada's ex-

activities and many of our mines,

tjo coast. Not a

of
energy seem unlimited. We have
n0 peer in the attractions we offer
for industrial investment; we rank

large
as
distinguishes

trading nations. Only one country

our

of

our

As

yet

not

in its entirety,

paved

country from coast

community

single

Woodstock

our

crosses

as

Sorel

or

highway,

single

a

tensive

one

as

^^vinc^eo tskie ^he" JVIa rid
province
outside tne
Mariumeo, rivals
m esc

u

and

the

combined

the Yukon

population

Northwest

and

of

Tern-

assembled in one place
scarcely
suffice
to
fill

tones,
would

Lfolson Stadium here
Canada

Duncrone

Montreal,

in

our

in

gieat and

6

tbrnLbnm
historical

our

Dast

in

to

ronsolidnto and
consolidate and

oxnand
thp mnro
expand the more
sett ed parts of the country. As a

result

face

today

perplexity
of problems attributable in large
measure to the emptiness and unproductivity of the vast stretches
we

a

of land which remain undeveloped.
TwoCanadas
In

real

a.very

,

sense,

we

are

actually

dealing with two quite
Canadas. The first,
stretching
across
our1 southern
separate

boundary from

ocean to ocean, is
highly urbanized, industrialized
region that provides the backa

bone
uone

for
ipr

omy.

It

the entire national ppnn
ine enine nntinnnl econ-

of

the

world's

nere

is

this part of Canada

in

our

are

located,

the

bulk

of

here, originates
external

our

The other Canada is

veloped

land

million of

half

a

land

large

tinental

trade,

vast unde-

a

embracing

three

country's three and

our

million

as

markets

aomesilC

and

miles

square

—

the whole of

as

United

States.

a

con-

It

is

empty area,
the habitat of nature, rather than
an

of human beings.
p

ed

c

While it is Pini

here

and

communities^

it

■

■

*1

.

there

is

by

'still

tiny

j,nade-

and

almost

v

y;
Ihat

is

nf

not

merely

of

we

niiff

Y.

a

Cla2>

as

are

.

a

single uni-

•

_

transcending
piirpose.

sense

of

national

The problems

we

face
>

e

address

Canadian
a

'

Challenge

a

Phallenae

thit,

nnt

T

to

vou.

If

Churchill,

ternal markets on any significant

Manitoba, and also, of course, to
the facilities now being planned
for
Moosenee
by the Ontario

scale. This will command all the
ingenuity that our engineers and

possibilities

power

at

Government.
present Jtime

^

Canada's"steel
^be

-n

majn

Western

industry is limited
three

f0

small

companies
respectively in Manitoba
Columbia.

British

ancj

A

fourth

building

a

small

js

company

non-

located
Alberta

integrated

metallurgists have. It will call
for the development of newer
and cheaper processing techniques
including a far more effective application of our various forms of
energy. We have the iron in
-various forms. We have a variety
°f energy sources; coal, natural
'gas,. propane, butane, methone,
our

electricity (hydro and thermal),
Surely Canadian scientists can
reasonably
protected
from meet the
challenge to provide
competiti0n because of the high cheaP energy forms, to transport
cost of imp0rting similar goods
energy cheaply, and eventually
particularly rolling-mill products' Process cheaper. If that challenge
from eastern Canada or from the
can be rnet> we wil1 find the
United
states.
Japanese
steel capital for development.
p}ard aj- Regina to be completed
ja^er ^bjs year ' These industries
are

preserds a challenge; but in spite
Qf itg inroads
there is an en_
COuraging

that

prospect

western

producers will be able to enlarge
their

capacities

provide

and

an

have the basic raw mate-

We

rials and varied forms of energy

in Canada. Give us the process
that will enable this country to
take advantage of their presence

in

in that part

new directof Canada's iron-ore production, reduction processes would seem to
however, has failed so far to bring be particularly applicable because
about equivalent growth in our they might lower the costs of
dition
of
Canadian-American primary iron and steel industry, production and thereby enhance
topic for contemporary discussion There are today in Canada four the ability of the companies to
relations has become
a
classical primary integrated producers of expand their output and diversify

of Canada

solve this problem, nearly everything else will fall into line,
strength

The

other-find

the

0n

in

of

growth

the

on

ore

primary iron and steel

hand

one

and

industries—iron

these

other

many

their

parallel
the

of

parts

Prl,m?,
I?1?, *iS l™" ^
allfof which have their products.
mineTaTs^nd mineral processing
au,dl<-;nce at Dartmouth College: •
existence for
£»•.
xhere is a very interesting and field. The importance of our other
'
e Question is being asked: Three Stclco, Dosco and Algoma signifjcant difference between the minerals and mineral products is
<Can

a country have a meaningful
independent existence in a situa-

.tion where

important

non-residents

part

0f

own

an

country's

that

—have operated continuously
since the beginning of the ceritury.

fourth

The

Dominion

company-

Canadian

iron

ore

industry

and

Foundries

and

primary iron and steel indus-

°ur Th^s^

Steel

also

^ry* lbe outstanding

com-

~

well

known

tempted

eSce

yoHfvbut

to

I

am

make^k passing
he
inpetroi^m in

here to
to

dustry

example oi austry.
theiefore
in
tfn'n to menced its manufacture of steel fanadlan ownership and control
Ten years of swift development
makp imnortant decisions affect-. over 40 years ago "All four thereaffect
Ln telms of the^ percentage of by the our and gas industries have
make important decisions
over
years;ago-Canadian ownership, it ranked raised oil national status to that
ing the operation and develop- fore were operatnig
Jong befqu-highest among all the manufac- Df a ranking producer. Given
of the country s economy ? ' r^n
The ^ocafionsS
tunrig- industries analyzed at the markets, we have the potential
An example of the type of thing .
rc nlants indeed bear a end of 1955 by the Domlnlon for rapid and considerable growth,
tbat, frustrates is the iron and "lMer r«la«orSiix> to the'oro^n- Bureau of Statistics. At that time and the prospect of becoming a
ste^ industry. We Canadians
V0a!andofmarkpt^^^^^ total capital invested in primary leading world source of both gas
asPlre ta greatness as an indusy , Lu;
'u -f
.L d iron and steel amounted to $438 and oil. This provides another
}r!al nab°n; and all great indus- D
at Svdnev
is tied to our
of which $372 million— legitimate justification for the
trial nations at the present, time M 1Sti'
Ponl
fcld Stolen and 85%^was owned in Canada.
need in Canada of firm national
ba£p

rpsnurrM

indu^trv

and

e

-i

possess one common

and

Company

—

denominator

nr-nri,,^™

^

' U I"CS

Dofasco

~c+P

Hamilton,

in

.

af.r.Pcqibin

Mario

tho

tn

a

q

States coal area

on

g

Lake Michigan,

maustry
Luctictiw
ndiiu xmLinsctu.
Canada bas vast iron ore re- Qn^anada \s now exporting some
There are extremely 90% of its iron ore production. Its
large quantities of direct-shipping primary iron and steel industry
u'on- and seemingly unlimited on, the other hand, is oriented

s°urces.

If lonc^Z^^tam to
eTsteiSref
no^snapx^mte

ol concentrating grade

.

th!

mausiry

,

izauoii

i

and marketing is the desire oi
the consuming iron and steel com- t

receive their ore shipments. Con-

Now and then it does indeed in

iron

ore;

it

is

nearly

all

Sbt?»» aorne important export "captive.".iron ore about 90%. of
Since output is conCanada's

revealed

billions

of

tons

of

specular hematite and^magnetite,

large

deposits

of

iron-bearing

is

highly

competitive.

Our

most

important trade associate — the
United States — is not a steel
market at all, because its own
productive capacity exceeds its
requirements; and keen competition

from

other

sources,

notably

to

enerev

our

ana

uisiriuuuun.

AU in all,

have just reason

we

d o£ the contribution

be

'Togres^d

Keed areas in Quebec, exploration business, but the foreign market
has

resnect

pames to ensure for themselves .
minoral indusfrips havo made
a long-term supply of ore; and toward our total nati0nal achievethey accomplish this by particint
T
rriost
rasps
we
have
pating in the financing of the
ToUiy and magina!
properties from which they tively ta the development use

its expansions are tailored to the sequently, with very minor exceptions, there is no "free" market

Pro™ the Wabash Lake area in growth of that market.

Labrador, southwestward through

.

in

nolicv

^
' m /eisGu LU UUI ^
y
and our minerai resources, to en-

Bewails "Captive" Industry

conPonn-

wator-baul

short

a

*

m

Steel Industry

L

are

vpnjpntiv

steel '"dustnes.

T

oulslanaing

no

7~a11 ar? signnicant producers of

iron Ore But No

(Dofasco)

sumed

abroad,

non-Canadian

haye secured a very
heavy share of the financing and
control. Canadians, of course, do
control some important iron ore
companies

operations; Dominion Wabana in
Newfoundland, for example, is a

and

Conservation whole
of oui
As

resources

ti

altbougb
nnr

a

g,:owth

l

regionally

naHnnai

raiP

,

natural
our

be'en
has

it

na-

rapid
been

'^s^ar perfod"
nf pmnnmic px-

pxrppdpd

nan<?;nri

fTnjtPri

has

that

th^

of

QfnfPc
.

"

,

.

'

We have indeed, at times, built
^p impressive

historical evidence

*° dlsPel the impression that we
are a People °1 caV !°n' yes' ?ven

urgy,

important mining op- As a result, Canada's iron and a large degree, externally con- Macintosh, most aptly said:
erations.
steel
companies
are
relatively trolled. Canada would be happier
"The extension of boundaries.,
Newfoundland's deposits of iron small compared with the giants with this capital gain if the con- the building of railways, the setat Wabana have been mined for of ,h.e.
'located .In other .trol were equally divided among ting up Of the machinery of govcountries.^

supporting

to build

our national
territory we must
y> we musi
gird ourselves for the task with a

the

th

nf

and

fied nation within the framework

*An

mal]n

ranging ,from 25-40% Britain,
Western
Europe
and whollvrowned subsidiary of over-caution,
which sometimes
o0n' -c??,able jof .concentration. Japan, make it extremely difficult Dosco.
prevails about us beyond oyr
' ^ome of these deposits have been for our industry to enter global
Nevertheless, the central fact hqrders.
As the Principal of
some
Explored.
They are capable
of markets on any considerable scale, remains that this industry, is, to
Queens University, Dr. W. A.

of permafrost

of
.

■

of* mountain and ma'rsh-

people suggest.
If

.*

f

yet, curiously enough, an intangible
sense
of
disquiet
has
crept over our country. The con-

ac-

oasis

Offers
f.

increasingly greater share of the to build a great iron Ifand steel
steel needed
their local areas, industry
in
Canada.
we
can

development

remarkable

This

nmrinr.

an

the

Canada's Four Producers

Disquiet Attitude

b

snow;

muskeg;

without

.

aB

.

it

ice and

unrl

,

greatest

ranging fi'om 30-40%o iron, that
c?n be recovered rby relatively
~ simple methods of concentration,
lls here know
Ontario contains a number of

quately explored, difficult of
cess

a

its

Yet

population is hardly greater than
Bermuda's.

industry
market for
many manufacturing, transportabon and service industries. It has
already opened up sevefal virgin
areas to exploration and to permanent settlement and there is
still very much growth ahead for
our. vigorous nation. The ironmining industry contributes over
10% °f lbe total value of our exPorts of minerals and primary
jmneral pioducts, and has become
a strong and stable factor in our
balance ot trade.

us .in prosperity.

cic*nifir.a«t

is

become

have

resources

byword. Her potential sources

Besides

prosperity.

Canadian

They even attack our direct employment,
pocket-books!!!
*
furnishes a home
of nations.

in the south, literally on the door-

step

community

world

the

in

difficulties

West, iron and steel manu- problem is clear, the
facturing has developed slowly, tremendous.

fhTn^^^uTt b^onl

antipathy towards the USA and welcoming us as
investors, buyers and sellers, the Minister presents brief policy.
guide

,

tons. No iron at all was produced mar£.et for fts product, and sec- we are to achieve major imporSppf,
in
hnth
ond' by a relative deficiency of tance in this* highly integrated
Ca,La and the United States ~ ^L^tha't f7o\o\
could, more readily meet their al]QW mygelf to'forget the prox_ is to bring about lower costs of
requirements from the famous imRy
Belcher Island iron ore production. Only in this way can
Mesabi deposits in Minnesota.
to the available port facilities and we ever hope to break into ex-

Declaring

American business and the American market.

there is

,

n

to something less than six

which, for the most part, deal with his country's dependence
upon

r

prMn^f

situations facing Canada

serious

more

■

'

will determine Canada's future, Mr. Hamilton outlines

years

arp

ages

by

Mr/Hamilton

institute

Montreal,

of

before

Mining

Canada.




&

.

y ars- Ao current rates

supply,

They
indeed,

are

all

not

the

able to say, 10 different countries.
But
require- „it. is not. It is concentrated in one

production they \^[11 last for ments of their domestic market,
a* ^east a 1,000 more.
but only about 70%. This is beEven
the
deposits of direct- cause *be smallness of our Canashinning iron
+i
k
•
diau market does not jostify the
j
'
enily oeing degree of product diversification
mined at
nrP

nnrro

r

•

±.

c,

Steep Rock

in Ontario

our

companies

would

have

to

country—the

United

States.

ernment, the machinery for the
administration of justice, have

always tended in Canada's history

to outrun the limits of settlement.
throughout the world, the primary In the course of United States
iron and steel industry is highly history there were periods when
integrated. Processing of ores into it. was difficult for the apparatus
In the United States, as indeed

pig iron and then into crude steel

of transportation and

government

Volume

Number

190

5864

.

.

.

The Commercial and Financial Chronicle

(229)
to

catch

with

the rapidity of
contrast, Canada
through
long
periods
of
waiting for the possibilities of

mand,

settlement

Industry, in. general, must
imagination and drive in the

de¬

we

velopment and production of

21

our

up

settlement.

In

went

lars per annum above' its exports,
It is thus imperative that we manufacture in excess of domestic de-

specifically for export, if
to enjoy continuing prosprojects which had been set out perity.
Without an export busifor government and for economic *ness,
even
the domestic market
expansion
Plans and organi-" for Canadian products will erode
zations have frequently been far away.
If this happens, all semahead of opportunity."
blance of economic freedom will
catch

to

.

.

with

up

the

are

.

Yes, I could continue almost
indefinitely, with expressions of

b? I,ost> a"d our national soverelSnty- WU1 retain little of its

pride in
prefer a

meaning or purpose.

achievements;

our

sobering

more

but I

note.

In

segments of the mining industry—indeed throughout most

many

of

national

our

have

economy

become

we

—

excessively

de-

pendent

upon Amercian business
thV American market. Let u^

and

face
'

this

No

other.. nation

the

in

exposed

as

all-pervasive

another

nation;

consolation
tension
life

is

the

of

free

influence

and

that

the

Canada to

as

it

is

becoming

of

slight
an

American

ex¬

way

preferable to certain

Outlines
I

think

I

of

some

Serious

tions-which

facing.

Not

cifically

Canadians

we

These,

general.

of

are

course, will be
will apply spe¬

all

to

situa¬

any

mineral

one

industry, although all will relate
to

some

of it.

segment

CD With its vast

and rela-

area

tively small population, Canada is
able, at the present time, to provide
out

capital
of

to

her borders.
and utilize

growth

If

extent

we

of

is

to

are

$58

inside

.develop

material resources

our

this

—and

the

$100 invested

every

the

to

key

Canada

further

must

rely for
some
time
yet
upon,
foreign
sources
of capital.
This capital,
however, is most readily attracted
by the extractive phase of Ca—

nadian

industry,

materials
tion

for

(2)

quently

not

are

in

non-Ca-

are

of

Canada's

these

further

goods

there

owners

fre¬

owners,

much

interested

processing

Canada.

raw

For

their

of
such

com¬

panies, Canada digs the great big
holes; but has little—and some¬
times

ing.

share in the manufactur-

no

The impact is apparent, when
stop to consider that 62% of

we

our

mining and 60% of

leum

industry

the

be

met

of

(3)

the

owned

are

country.

also

help

our

This

petro-

outside

situation

can

Too

frequently the
Ca¬
operation, in the eyes of

United

States

s

m

one

rely

firms

particularly,

branch operation—
These firms are not

a

of many.

plotting against Canada—in one
sense they are merely unaware of
us.
They are not mindful enough
to our national
aspirations. As a
result, we fail to obtain many sec¬
ondary benefits which we might
properly expect from activities iri

Canada of large American
parent
companies. Cases in point are the
use

by their Canadian subsidiaries

of

non-Canadian

signs

and

industrial

specifications

importation, for

de-

the

and

in Canada, of
products readily obtainable in this
country
use

■

,a\

on,

;

cnhcVuTr^L

-

x,-

-

_

/\/\A

p

ada.

We

\vould

welcome

be

less

did not admit
me

list

some

than
some

of

them

but

candid

if

we

senior

them:

managerial

_

failure

are

in

investments

positions;

failure to make basic
and sales policies in

Canada.

(5)

ex¬

that

is

a

freedom

large should
to its

concern

ally.
antipathy

no

two

con¬

near¬

We certainly
toward
our

nations, in some ways,
nearly indistinguishable

very

culture

joined

and

in

all

ways

like

the

United

States

to

continue

to help us develop our
industries, and to buy our mate-

f!als whenever these

are competi¬
*-lv€r We will always welcome inyestors, buyers, and sellers. Yet
us. A10* f°r§et that we are a

Canada's

imports
a

are

run-

billion dol-




1500

Series

Switch/Transducer.

Pressure

This

unit, an
addition to the company's line of
precision rpi'niature switches,
is,

must

They are designed for
in lubricating, pneu¬

national terri¬

our

for

government,

of

nation's

Canada.

human
It

sources.

It

name

poration

of

of Aero-Sonics Cor¬

Plymouth,

will

company

The 'new——

specialize

ultra7sonic and electr
treatment

of

guided

*

in

'
*

.

ths

onic

o-s

missile

strument parts.

•

*

in¬

,s

/

With the completion of

success¬

ful first flight of the
Navy HU2K,
Kaman
Aircraft
Corporation
of

must

use

vestment.

ports

It

and

must

nadian
and

to

and

expand

we

must

its

at

recent

that we will need far
capital than we can provide
sume,

the

as-

more

Canada

which

veloped.

Ca¬

surveys

stimulate

still

remain

the

nication
the

unde¬

It must tackle energeti¬

cally and systematically
problems created by long
lines.

It

must

all

the

commu¬

encourage

development of its

sources

our-

to

manipulate and transmit large
blocks
of
inexpensive
power
learn

of

some

ef¬
ex¬

our
supplies of propane,
butane, and methane. We have all
recently heard of the successful
transport to the United Kingdom

of

full cargo of gas fuel in

a

liquid
experiment in gas ex¬
which could unlock a new

the

port

invest

in

the

to

special

interest

world market for

products
in

that

give

encourage,

it

it
a

while

Yet

industrial

we

development,

recreational

present problems may tend to be¬

which

come

self-perpetuating until

new

"crevices are found which -will
accelerate and

m-

safeguard

Canadian investment [n the equity

ownerhip of its
'
~

resource

develop¬

ment.

40 Years

Ahead

jstence.

They will still be form-

a^ve years

neglect
needs, the

zens

require,

the

will

set

the

are

capable of managing
their na¬
tional, industrial and economic
affairs; and they will decide the

strength of our economic imporar?f^ aP(? define the level of our
Political influence among nations,
°ur governments, our industries,
°UF P«vate citizens, all must participate to the utmost^ because
these next 40
of

years wpj be the
social develop-

our

and our industrial potential
for
succeeding century.
We
dare ,not squander our
birthright
or
mortgage our future.

'

the

benefits

and

are

of

the

to

accrue

the

entire country
distributed
into
every

home in the land.
Our

ada's

future

future

.is

stake.

at

is also

Can¬

at stake.

The

country
century will find its
profile in this one.
in

the

In

order

it

years

not

that

our

public relations, Amer-

iFan firms operating in Canada,
!hrouSh subsidiaries, must strive
to
make
their

during

the
that

we

must

It

distinguish the dif¬

between

preservation

the

of

which is not

also,

means

our

passive
resources

sible.
from

in

as

Canadian

opera¬

truly

Canadian

as

constructive

a

policy,

tion and development of our
paralleled wealth in natural
So

sources.

failed

nations

many

to understand

Resources

Canada

that

for

tragedy

Let
move

that

not

us

nadians'

more

allow

Canadian

for

and

have
time

a

too

as

purchases

of

The

program.
made

the

aircraft

historic

actually the second

tion

HU2K.

HU2K is in

The

flight

produc¬

number

one

continuing tie-down

a

test program.

items.

Helicopters,
has

ganization

of

Doman

wholly-towned

a

develop

Neldner Director

of

the

or¬

Electronics,

subsidiary.

The

will manufacture
further the Dalto

company

and

Inc.,

announced

Curtis

E.

White,

Neldner, a partner in
banking firm of
Weld
&
Co., has been

elected

a

the

investment

director

of

approach, landing and
take-off) flight simulator and will
also

produce

tor.

The company

a

of

Naples,

projec¬
also entered an

oldest

largest

independent
c o

Italy's largest
industrial combines, for the pro¬
duction
in .Italy
of the Doman
eight-passenger commercial heli¬

factoring or¬
ganization,?.
Mr. Neldner is
also

copter.

of
*

*

mmercial

financing and

of

:<5

director

a

East

Hartford

Associates

of

Natural

Gas Co., Caro¬

is

a
newly
organized
plans to provide engi¬
and economic consulting

lina

firm which

neering
services

in

the

fields

of

manu¬

facturing. Clients which the com¬
pany is prepared to serve include
companies not now in the nuclear
manufacturing business but which
are considering entering the field
for
product
diversification
and
equipment manufacturers inter¬
in

ested

selling their products for

in nuclear power stations.

use

A

Pipeline

Co., and BeauCurtis

Neldner

nit Mills, Inc.

nuclear

nuclear reactors

power and

Tei>-

—

nessee

Reactor

one

coun¬

and

television

one

Tal-

Inc.,

the

try's

agreement recently with the Aerfer Division of Finne Mechanica
of

James

cott,

(Doman

Talcott,
founded in 1854, is engaged in all

phases

of

counts

receivable

financing,

industrial

finance—ac¬

and

mortgage,

inventory
equipment

and

special loans, factoring, in¬
time sales financing and
rediscounting. In the first half of
1959, the volume of receivables ac¬
quired by the company amounted
dustrial

to

more

than $495,000,000.

Now Mutual Funds

vinyl plastic material
that can easily be moulded into
phonograph records has been de¬
veloped by the Naugatuck Chemi¬

PITTSBURGH, Pa; — The firm
name of
Investors Planning Cor¬

cal Division of United States Rub¬

poration

new

ber Co.

Phonograph records made
from
this
resin
will
give high
fidelity reproduction with unusu¬
ally low background noise level,
according to the company.
The
new material, called M
VR-60, is described by

i n o 1
research¬
as "soft. .This softness permits
record makers to produce exacting
reproductions of the metal master
a r v

ers

The material is

record.

tested

by

several

now

record

being

compa¬

nies.
*

Plans for
ment

on

a

a

34

*

1

*

$10,000,000 develop¬
acre

tract

in

first stage of this

project would be
the construction
of a
$2,200,000
research facility.
Company offi¬
cials said \that plans also call for
construction

headquarters

and

j^f
'a

of
Pennsylvania
has
changed to Mutual Funds
Corporation of America. The firm
been

is

located

at

209

North

Craig

Street.

Lawrence Sees. Opens
Lawrence
been

Securities

formed

with

executive

has

Inc.,

offices

at

forward toward the century
Canada with pros¬

brighter ^han anything the

world has

seen.
i

Officers are Robert B. Drattell,
president; Lawrence Shapse, vice
president;
Terence
Kolpackoff,
Jr., secretary.
\

■

Kaufmann, Alsberg Admits
On

berg
New

New

August

1st Kaufmann, Als¬

&

Company, 61 Broadway,
City, members of the
York Stock Exchange, will

York

admit Florence Guttag to limited
partnership.

laboratory

Irving A. Sartorius
A
of

new

Egan

corporation,
Machine

a

division

Company

Terryville; has been formed

of
un-

Irving
partner
York

A.
in

Sartorius,

Sartorius

City, passed

&

away

limited
Co., New
July 6th.

•

I

~LT

.

Primory Markets in

CHAS. W. SCRANTON &,CO.
Members New York Stock

Exchange

CONNECTICUT
New Haven

M. T. Sullivan

Opens

SECURITIES

(Special to The Financial Chronicle)

BOSTON,
Sullivan

is

Mass.

—

M.

conducting

business

from

Timothy
a

offices

securi¬
at

145

Pickney Street, He

equity

with

stocks; and altogether, grant their

tion.

32

Broadway, New York City to en¬
gage
in
a
securities
business.

Stam¬

ford have been announced by the
St. Regis
Paper
Company.
The

the

Corp.

we

beckons

pects

ties
encourage

Poman
Danbury

re¬

in

forget .this

pos¬

export; carry
Canada; offer Ca¬
managerial posi¬

was

un¬

the problem.

flared

oft-repeated
countries.

an

tfetore
in

the

utensils

GE T-58 gas tur-,

and then faded forever have been

They must promote exports
Canada; do more processing

out research

of" kitchen

other household

and

in

engaged

are

new

dynamic

a

'

tions

firms

manufacture

sep¬

is essential

reckless.

ference

and

out

carry

sober, not solemn; deter¬
not fanatic; enterprising,

mined,
but

to

responsibilities
40

be

we

our

next

many

Program for USA and Canada
For good

encourages

possible

development
of Canada's natural
resources, but
it must guide that development so

next

Canadians

is

progress

In

short, the nation
only provide the kind of

fullest

arate

whether

and

without

economic climate that

termine

v

cultural

industrial

must not

pattern
and determine our capacity to de¬
velop and process the resources of
our
country; these years will de¬

prototype

the

facilities

economic character of

they

resource

country's social
hospitals and schools that its citi¬

advantage

conviction that the next
40 years will be the most \^ital
single period in our national ex-

and

the

that

Vital
It is my

competitors.
press forward in

we must not

meaningless.

our

our

research

country.
Thus Canada's imports of capital
for
some
time
will
be
mainly
American, and so some of our

But

use

ample,

of course, is
exporter of capital.

crease,

to

form—an

wishes

Both

this land.
must

the

Its

tion of the

bine-powered helicopter continues
concurrent with the flight devel¬
which

Nuclear

existing resources more
fectively. I have in mind, for

proximity, security, and freedom
to

of

and the nation must learn

energy

time

present

Household

Union, N. J.,
recently by the

opment

new

development of the nine-tenths of

We

likewise

of
of

ing Company oL Torrington. The
purchase price wos not disclosed.

ex¬

and

for

With

must

a

in¬

stimulate

markets

it

of

expanded

products.

maps

re¬

toward

pattern

find

strengthened

physical

strive

our

continue

Co.

Turner and Seymour Manufactur¬

jgf the

and

must

diversified

more

wltJl 0lir friends.
What then of the future?

rate,

purchase

announced

was

positive means to encour¬
the most effective use

age

across

We should start with the premise that our economy will at least

The

Specialities

bairgcnmpg nation, and we should
n?t,be afral(? °* bargaining firmly

tions;

rung more than half

the

cler the

every

are

partners in survival. We

as

would

of

of
major research
activities in the United States—
which
incidentally
draws
off
many of our brightest young men;
a

opment within

we

concentration

finally

democratic

and closest

Our

problems. Let

subsidiaries
to
provide
equity ownership opportunities in
Canada: neglect to use Canadians

and

States

great neighbor, the United States.

some

m

United

Canadian

are more than 5,000 m^nt

? ? United States _corations doing business in Can-

It

a minimum
and
that the prices of its
prod¬

As

It is indeed paradoxical that the

champion of

particularly with the
people here present.

nadian

of

and rockets.

imports.

States,

Where

nadian

ment

ensure

products for its markets.

whole

United
largest

it.

Kaydon Switch, Inc., of Waterbury has announced the develop¬

designed tb meet the exacting re¬
quirements of aircraft, missiles,

tory.

Canada.

of

At

overcome

pos¬

sible, and engage to the utmost in
technological research and market
development.
It. must find new
markets Dr its products and new

source

minimum

a

selves.

can

This

as

absolutely necessary must be re¬
garded as injurious to the inter¬

beyond

situa-

we

materials,
in

export.

raw

It

resources.

efficient

as

ests

ports

disquiet, but it is not

raises

new—and

principally

de-

so

Canadian

our

Consequently, any
restriction against

feel

of

Canadian

become

its
role
must be
dynamic, not passive. It
must
exercise
strong leadership
in our national and
provincial af¬
fairs
and
energetically catalyze
the economic development of the

est

you.

serious

more

of

stitute such

should remind

the

72%

for the world at

Situations

thus

^he United states is the

of

Canadian identity.

must

keep its costs at

Canada

£FacHTmast ^a two-way traffic,

other

alternatives. We want to maintain
our

With

available

Connecticut Brevities

use

pendent on its export business, its ucts are competitive. In short, it application
industry is particularly vulnerable must share with government the matic, hydraulic, fuel, chemical Bloomfield, has started full scale
flight program of the new high¬
to tariffs and other restrictive responsibility of promoting the and gas pressure systems.
fullest measure of national devel¬
speed, utility helicopter. Produc¬
barriers
against
its
products,
of

fact.

world is

(6)

Canadian subsidiaries greater
op¬
erational autonomy.

was formerly
Clayton Securities Corpora¬
.

New

York—REctor 2-9377

Hartford—JAckson

7-2669

Teletype NH 194

'

The Commercial and Financial Chronicle

22

.

Thursday, July 16, 1959

.

.

(230)

The Mutual Funds Report

Fund Personalities
Lichtfeldt, who re¬

At

comptroller and
vice-president of the First Wis¬

fund

has been
elected a director and member of
the investment, committee of Wis¬

Association

Clarence H.

Mutual Funds

cently retired as

=

By ROBERT R. RICH

no one

thought possible.

ever

than

fold.

Was it the result of the bull market? Was it the result of
Was,it, as many analysts would like to believe,

pass.

trollers.

fears of inflation?

portfolio management? Or was it the work of
talking himself hoarse and wearing down shoe

a

caused by the resignation
Loewi, who gave up

Victor

J.

the

fill

will

Lichtfeldt

vacancy

of

post

devote

to

time to the affairs

of his

more

of his company,

Inc. Mr. Loewi has
been affiliated with the furjy and

Loewi

mid-year point, mutual
sales »et a new highwater

mark.

According- to
of

the

advanced

to

& Co.,

to

Oil, $3,905,000; Bestwall Gypsum,
$3,788,125,
and
Deere
&
Co.,
$3,585,000.

86% to $68,431,000; Wellington
a
gain of $18,370„599 over
the 1958 first half to $71,903,903;
Chemical Fund, up from $7,900,000
Growth

to

Fund,

Stock

$18,700,000

Wisconsin Fund board of directors

000;

Eastern and Midwestern States.

Mr. Porteous, "can be justifiably proud of
their role in the postwar growth of investment companies. But too
people,"

"Fund

says

of them are taking a 'fat cat' attitude toward their success:
are far too many who assume that investment performance
alone has been the key cause of growth.

many

There

tend to discount the salesman's role, tend to grab
full credit when only partial credit is due. The fact is that millions
"Too many

people would not now be sharing in the ownership of American
business through mutual funds—would hardly be aware that funds
exist—without the affirmative, yet responsible, efforts of creatively
of

trained salesmen out holding

face-to-face interviews with potential

Since

sales force.
tered

is

Porteous

Mr.

For

thing, he feels that there are too few regis¬

one

assets

within

billion

S50

But it is estimated that assets will expand

the

Porteous is that the fund

another

Currently,

pushing. $15 billion, there are some 20,000 men

handling selling chores.

train

selling business himself, he is
with the industry's

the

representatives being brought to the front-line.

with fund

to

in

of the fact that all is not entirely well

aware

decade.

next

What this

spells to Mr.

retailing industry will have to find and

50,000 salesmen over this period.

Otherwise, says

by the growing tendency of fund retailers to attempt recruitment
of

registered representatives from rival

experienced

This is

cf Mr. Porteous' prime peeves.

one

"As

a

companies.

matter of prin¬

ciple," he points out, "our firm never contacts a salesman of another
firm and
a

never

accepts

matter of protection,

otar own'sales
fair

we

manpower

competition.

extent of

salesman from another organization.

a

cannot look upon raiding assaults on
part of the normal give-and-take of

as

Raiding is ultimately self-defeating to the

...

bringing less people into

flow of additional manpower to
Mr. Porteous has in mind

retailing business
future.

tract

This

new

As

a

program

he hopes

can

put the fund

firmer ground, enhance its prospects for the

on

program

involves

a

nationwide campaign to (1) at¬

sales talent to the mutual fund business and

(2) defend

established fund salesmen from attacks "within and without"

the

It is not too soon to talk

such
of

a

program.

It is

the

salesman

in

people had
man

Florida

Securities of Amer¬

increased

First Mutual

ica, Inc. has been elected a direc¬

of

Leaders

Corporate

of

tor

a

industry.

promoting the

Obviously,

hand in the funds' rapid growth, but it

was

a

lot of

the sales¬

who finally made the sale.

its

net

six

the

ing

Growth
its

December

Fund,

which

52%

assets

dur¬

months ended last
has
boosted its
58% over the past

31,

another

America, Inc., American Trusteed

Funds, Inc., and Lexington Funds,

months. At June 30, 1959, the
fund's assets amounted to $2,558,-

Inc.

two

elected

of

They

directors.

new

has

Fund

Securities

Venture

Godfrey, President
Arrowhead
Petroleum
Corp.
Fletcher

and Robert E. Worden, partner
Worden

&

in
management
Philadelphia and

Risberg,
of

consultants

San Francisco.

directors

The

of

Massachusetts

Hospital Life Insurance Co., trus¬
tee
for
the
Massachusetts
Life

Paul
as

the

For

director.

a

Litchfield,

T.

who
and

Vice-Presidept

a

three

past

Claybourne has been
an
audit manager with Arthur
Young & Co., independent public
Mr.

years,

Prior to that he was

accountants.

associated

&

Bollong

bourne is

ican

19

for

predecessor

its

with

years

firm Stewart, Watts
of Boston. Mr. Clay-

a

member of the Amer¬

Institute

of

Public

Certified

Custodian Funds, Inc. in

report for June 30. Combined

six

net

of

assets

Accountants.

a

58% increase

Aronson Heads IMFDA
Murray Aronson, Vice-President
of

been

named

of

tor

the

has

Corp.,

Investors

Triangle

President and Direc¬

Independent ^Mutual

Fund Dealers

Association,

newly

a

Joins du Pont* Homsey

or

$5.96

grew

assets

from 386,049 to 504,629. Net
per
share
showed these

per

net asset value from
share on March 31,
1959, to $17.05 per share on June
gain

a

$16.35

Co.

The

Field

for

a

number

of

years

Hemphill, Noyes fr Co.

;

Now With Estabrook

over

the

M.

BOSTON,

affiliated
as

Mass.

same

period. There were
as of

underscored

Vice President and Director

15

State

with

for

writers

changes.

He

Keller & Co.

Management

Corporation,

With

portfolio apprecia¬
tion, announced Chairman Albert
J.
Hettinger Jr., and President
Richard H. Mansfield, amounted
to $23,140,950 compared
to $19,060,745 at the beginning of the
latest quarter. Net realized gain
the

on

sale

$3,532,033

of

investments ' was

compared to $1,804,807
the time of report,
was
90%
invested
in

Stock

*

1

fund

equities,
cash

or

the remainder in
liquid short-term obliga¬

with

tions.

retired

15 years ago

anteed

annual

•




*

WOrth 4-2042

with

income

iri

living

since

costs

lOils

1944.

was

formerly

—

Eaton

at

of

its

had the heaviest

these
oils

two

and

of
seven
the
European Common Market during
the
first
quarter, the fund has
purchased—shares of
the
Steel
Company
of
Wales
(British),
acquiring
equities
foreign companies in

After

Miniere

du

Haut-Katanga

and

Sidelor

(French

steel

com¬

representation in

industries

—

11.2%

companies.
*

*

Stein

Fund,

Roe

is

Inc.

shareholders

a

*

Farnham

&

Stock

offering its
periodic purchase
now

plan which allows the accumula¬
tion

shares

of

ment of both

gain

capital

through

reinvest¬

ordinary income and

dividends.

In

addi¬

tion, the fund is offering a s'epa-

the
with

Fund
A Common Stock Investment

Prospectus

of

Stock

Ex¬

upon

request

Lord, Abbett & Co.
New York

—

Chicago

-—

Fund

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

possible

income

Robert L.

in

in power and light

8.3%

Ex¬

^cust Street, members of the New
changes.

Ifow-

As of June 30, Eaton &
Howard's
Balanced
Fund,
with

Dempsey-Tegeler & Co., 1000 Lo~

Midwest

remain
&

ard, Inc.

'

LOUIS, Mo.

utilities

and
issues

favored

65.5%

during

Dempsey-Tegeler

and

guar¬

$3,000.
Today, notes the publication, this
unhappy pensioner needs* an in-^r
come of $4,920 each year simply
to make up for the 64% increase

were

are

York

a

of

Co.,

of

Chenoweth has joined the staff

115 BROADWAY, NEW YORK 6, N. Y.

individual who

an

portfolio in common
the
June
10,000
shares
of stocks, had 15.2% of its holdings
in the
oils, 13% in power and
Aluminum Company of America.
Proceeds from
the reduction of light companies. These were the
two largest industry groups in the
some holdings ana elimination
of
common
stock segment. At the
others were invested primarily in
same
time, the Eaton & Howard
shares already held in the port¬
Stock Fund, 84% in common, also
folio to increase the concentration.
Purchased

quarter

(Special to The Financial Chronicle)

ST.

•

of

case

bulletin

The

Inc.

Fund,

cites the

Investment

.

Inves¬

Investment

Fund, Inc. and Diversified Growth

30.

Unrealized

Mr. Banks is President of

underwriter and distributor of the Fund.

Fundamental

Diversified

Inc.,

now

&

Stock

Boston

E.

are

Estabrook

Street, members

New York and

Mercer

are

again

once

June

(Belgian Congo copper producer),

Donald

—

Lowe and Barbara Milton

Banks

i

inflation

tors,

Union

(Special to The Financial Chronicle)

pleasure the election of

Morton

*

of

ravages

8,588,192 shares outstanding

It is Lazard Fund's stated policy
BOSTON, Mass. — William L. to favor "substantial rather than
Field has joined the staff of du scattered individual commit¬
Pont,
Homsey
&
Company,
31 ments."

has been with the Boston office of

with

*

*

in

per

(Special to The Financial Chronicle)

Mr.

announces

of

series

$4,344,406,

the $2,750,002

figure of a year ago. Total shares

,

Company, inc.

five

over

gains: Common Series, up from
share, compared $9.29 to $12.30; Bond Series, up
to $1,614,174 or $5.48 per share on from
$5.17 to
$5.61; Preferred
December
31
and
$1,060,220 or Series, up from $5.31 to $6.06;
Utility Series, up from $9.51 to
$4.59 per share on June 30, 1958.
During the past year, shares have $10.73, and Income Series, up from
increased from 231,203 to 427,540. $5.08 to $5.92. These figures are
*
*
%
not
adjusted for last October's
| The Lazard Fund, Inc. reports capital gains distribution.
205

the

Street, members of the New
York and Boston Stock Exchanges.

Investing

the

Franklin Funds totaled

at March 31. At

Milk

Fiduciary Mutual

*

in "The
Long View," a bulletin published
Fund, have named Richard Clay- 30, 1959. Net assets were boosted
from $138,973,667 to $146,430,041
by Hugh W. Long and Co., under¬
bourne, treasurer of the fund. He

seriously about planning to implement

certainly^ not too soon to recognize the role

*

*

highs in net assets and in
shares outstanding were posted by
New

Franklin
ft

#

assets

organized group.

industry.

367,690 during the year.

1959 first half.
sjt

Fund

from

grown

and

William G. Damroth, President
of Templeton, Damroth Corp. and

field which needs a constant

a

sustain its growth."

Television-Electronics Fund,

have

*

Rittenhouse

of

$4,554,345 or
$12.94 per share on June 30, 1958,
to $5,438,720 or $14.79 per share
on June
30, 1959. The number of
shares
gained
from
352,175
to

from $21,200,000 to $42,700,000,
Delaware Fund, an increase

up

*

*

Net assets

e

remains

increasing scarcity of effective fund salesmen is indicated

The

made

president of the fund.

succeeds

he, such forecasts will prove merely "wishful thinking."

half;
Keystone
Funds, a 71% increase

Dutch

The
announcements from $4,244,539 in last year's first
by Harold W. Story,- six months to $8,928,544 in the

committee.
were

elect¬

was

investment

the

of

member

a

are

shareholders."

counsel,

the fund's

and

Group,

Pacific

up

$32,100,000;
$28,596,000
in the 1958
Custodian
to $47,000,-

first

Street

Broad

In¬

Massachusetts

$23,400,000;

vestors

from

compared to $9,850,000

ed

there was $104,-

Fund,

up

personnel shift, Irv¬
ing A. Puchner, a member of the
another

In

30),

the industrial group,
$10,35.1^500 in the finance and in¬
surance group, $9,082,500 in rails,
and $6,317,938 in public utilities.
The largest holdings in terms of
market
value
were:
Georgiain

Corp., $5,921,875; Royal
Petroleum, $5,525,000; B. F.
Goodrich,
$4,862,500;
Jones
&
Laughlin
Steel, $4,006,250; Gulf

35 years.

President Douglas K. Porteous of Pennsyl¬
vania Funds Corp., the mufual fund salesman has never been given
his just due in this regard. Mr. Porteou§, a man of 36 years' ex¬
perience in the investment business, heads up an independent
retailing organization that sells most of the leading funds. He has
a 440-man sales outfit which reaches into 234 communities in eight
the opinion of

organizations1 for

predecessor

of

(market value

stocks

June

$132,160,094

Fund's

Lazard

common

319,406

June 30.

on

assets.

as

Among the first-half sales totals
of
individual
funds:
Investors

10%

approximately

to

in

$6*97,400,000 sales of the first half
of last year. Total assets of the
155 member companies hit $14,-

its

In

Of

by

1959, scoring a 58% gain over the

800,000,000

end

of total net

record

a

the fruit of astute

leather?

Com¬

the
industry
$1,100,000,000 during the first six months of

sales

panies,

the

salesman,

the

amounted

National

Investment

Total foreign' holdings at
of the second
quarter

pany).

Planning Corporation of America,

Mr.

has come a long way. The
Since 1946, the number of funds has m«re
doubled and net assets of these funds have increased eleven¬
What is a matter of some debate is just how it all Came to
too obvious.

are

president of the National Associa¬
tion of Bank Auditors and Comp¬

„

Nobody doubts that the mutual fund

figures

of 29

banking

the

in

Inc.

Fund,

veteran

a

with endurance like the man who sells insur¬
ance," runs the slightly ungrammatical old saw. Well, for the past
decade or so, there certainly has been.
He is the mutual fund
salesman, the man who gets the qame on the dotted, line at the
point of sale. And more often than not, in a toe-to-toe battle v/ith
the insurance agent for surplus individual savings, the fund sales¬
man
has shown more endurance than the insurance people have
"There's

Mr. Lichtfeldt,
years experience
field, has served
in the Internal Revenue Bureau
and was head of the Wisconsin
Income
Tax
Division.
He
was

consin

Selling the Salesman

)

Bank,

National

consin

the

Atlanta

Los Angeles

Number 5864

190

Volume

.

.

The Commercial and Financial Chronicle

.

(231)
dividend

reinvestment

plan
shareholders owning 100 shares

rate
to

Welch Named President of
Wellington Go.

more.

or

Z

nr.

*

Herbert R.

President
of

an¬

of

the

that

nounced

Bank and Insurance Stocks

Anderson

Securities, Inc. has

Group

23

total

assets

=S= By ARTHUR B. WALLACE

old
mutual fund rose
$19,000,000 in the first six months
of 1959 to a value of $171,057,279
25-year

This

30.

June

on

This Week—Insurance Stocks
There

with

compares

cations that insurance stock prices

$116,901,603
one
year
ago
and
$152,021,034 last December 30.
Purchases of Group funds dur¬
ing the first half
record

a

of

include

to

another

Group

figure

conversion
of

funds

from

the

than

Largest
Grouped

May 30

single

Motor

Co.

with

market

a

Total

of

net

shares

Canada
value

assets

$8,506,903.

The

underwriting

better

lists.

the

second

amounted

period

of

during

this

year

to

$3,054,501.
Sales
were $1,513,706. Among
the new
issues added during the quarter
were
8,000
shares of
Northern
Indiana

.Public

Service,

8,300

Northern Natural

Instrument
house

and

Elec,tric.

additions to
securities.

Gas, l,000oTexas
2,000
WestingThere were also
eliminated

wealth Edison

and

7,500 Montana

Power.
As of June

common

42%

of

stocks

total

net

The

breakdown of other groups: natu¬
ral gas,

10%; oils, 8%; industrials,
28%, and U. S. Treasury Bills and
Cash, 11%.

$113,500,000 Bebs.

public

collateral

to

issue

trust

of

PHILADELPHIA, Pa.—Joseph E. Welch has been named Pres¬
of Wellington Company, Inc., 1630 Locust
Street, national
distributor of Wellington Fund and Wellington
Equity Fund, it has
been announced by Walter L.
Morgan, President of the manage¬
ment companies for both funds.
.•v.-

the

Mr. Welch has been associated with the
tion since 1937.

He continues

as

headed

by

debentures

will

will

be

mature

The

on

the

be

millSam

KfSilBlOsB

be used

the

sale

to

of

redeem

the

$78 million of 3.55% deben¬
tures maturing August 3, and for
lending operations. These deben¬
tures

are

the

joint and several
obligations of the 13 Banks.
This

new

issue

of

debentures

will be offered with the assistance
of a nationwide
group of

security

dealers.

mI

OtJIl&d

Of

(Special to The Financial Chronicle)

CLEVELAND, Ohio—Ralph
Canfield

and

Kenneth

M.

D

Koike

mar-

frequently

not

to

easy

life

uncover

over

life

a

brand-new

a

while fire
feYs

life

unit

has

company,

life

and

technique difthere is not too
fire agent to learn in

somewhat,

much for

a

write coverage.

to

We

consolidations

expect more
this nature.

the subject of life in-

the

of

aware

Few

size

persons

which

to

business has grown.

Institute

,

...

.

increased

The

by

same

ince

Commission

.

of

is

an

agency

the Prov-

Quebec. It generates,

quires,

,

pe-

$329,700,000.

of the Crown in right of

An undeiwriting syndicate
managed jointly by The First Bos-

sells,

transmits

ac-

and

dis-

tributes electricity throughout the
province. The Commission owns

ton

Corporation and A. E. Ames and
operates four electric sys& Co., Incorporated, on July 16.
tems with a total installed hydrooffered publicy $50,000,000 Quebec
electric
generating
capacity
of
Hydro-Electric
Commission
5%
2,215,500 kws, which served 510,debentures, series X, due July 15, 275 customers at the end of 1958
with

obligations,
which
are
guaranteed unconditionally as to
principal
and
interest
by
the
Province
at 100%

of

Quebec,

are

annual

an

consumption

of

12 4 billion kwh

over

co^r„ratg

priced

or«n,e fii

1959 amounted in
to

months of

$30,nnn anH
ript inr>nme
365,000 and net income tn fi7 7R7
to $7,767,
000. In 1958, total operating revenues
were
$83,290,000 and net

and accrued interest.

The debentures
able

for

10

are

years.

not

redeem¬

Thereafter, re¬

demption prices range downward
and

104%
for

July 14,
the

July

1981.

As

a

its

of

an

called

income
income

to

brings

out 'that

The

in-

has rrnwrl

Wnprshin

life

the

LOS

on

F.

July 15 in those years; in 1965-83,
inclusive, the amount will be in¬
creased

to

of

used

tures

to

in

meet

with

its

1959.

The

Pacific
in

Los

Com¬

uary

the

30, 1959, $212,000,000

re-

mained to be spent. Between Jan-

1,

1954

and April 30, 1959,
Commission made capital ex-

penditures for

electric properties

lives, but

our

that

far*

pypppHc

anybody that the industry of life

insurance offers plenty of

assur-

ance .on growth. Carrying the big

"figures further, about $32,000,000,000
new life coverage went on
the books in the first half, ordinary life accounting for probably
about $24,000,000,000 of the total.

three

times

_hnwPfl

tpn

what
vpart!

s

the

industry
T,

apn

snowed ten years ago.

UJ_

T

ine insti
tute also points out that part of
the total growth was due to the
;

fs

„

-

u

policies

^

purchased

large

as

years

in

by

as

it

was

a

,u

186%. In the next decade the 1948

total was

more than doubled. As
to underwriting profit margins, in

the earlier decade it stood at

an
average of 5.49%; in the later pe-

ri°d 4.39%. These, of course, are
underwriting data, and investment,
results

(before taxes,

of

course)

in addition. There has been,

are

much pessimism of late because
oi the poor showings by most firecasualty companies. But let it be

remembered
rate

that

rate

increases

are

normally

reductions

™ade on the basis.of about four

w°0fdvse yteha,T comranieT are"
quired to take
(underwriting)

re-

the

unprofitable
along
with
the

profitable.

They are now begin¬
ning to derive some benefit from

recent substantial rate increases,
in

bodily

auto

injury

Z

(half

and a"to, Property damage>

sf

.

.
painiUl

statistics

are

that the latter adds to income and

the

fleet

Coast,

•

has

out

of

the

ASE

Nominating Com.
Appoints Officers
The

the

with

headquarters

Angeles, since April

1958.

Exchange,
has elected Robert J). Thorson,
paine, Webber, Jackson & Curtis,
chairman, and Robert F. McAteer,
Richard J. Buck & Co., vice chairman for the coming year.

With L. A. Gaunter Co.
(Special to The Financial Chronicle)

CLEVELAND, Ohio
Brennan

is with

John V.
Caunter &

—

L. A.

Co., Park Building.

Moore & Schley to Admit
Schley, 100 Broadway,
City, members of the
Stock
Exchange on
juiy 27th will admit John W. Ritchie to partnership.
New

York

York

NATIONAL

AND

GRIND LAYS

LIMITED

)

Head Office:

26 BISHOPSGATE, LONDON, E.CJ

Company

London Branches

54

of New York

13

:

JPARLIAMENT STREET, S.W.I
ST. JAMES'S SQUARE, S.W.I

Trustee Depts.:13

'

.

of

_

Stock

Almalgamating^National Bank of India LtS,
and Grindlays Bank Ltd.

the

on

Committee

_

BANK

Irving Trust

Manager

Nominating

American

red.

Broad

been

foV S6V6r81 y6cuS.
IOT several6years

Moore &

ago.)

causing
more and more
fire-casualty stock
companies to get into the life field.
One
very
good reason for fire
units to acquire life businesses is
helps

results
rCSUllS

mere

Milton

president.

Sales'

<

a

charge

life

St.

'

James's Sq.; Govf,

Rd., Nairobi; Ins. Dept.: 54 Parliament
St.; Travel Dept.: 13 St. James's Sq.; In¬

Bulletin Available

current

expansion pro¬
covering
September
30,
1955
through 1961, provides for
expenditures of $648,000,000. As

City East Sixth. Bpilding, members

announced

con¬

Joins H. L« Robbins

gram,

of April

efntiQlin

Operations of
Sales Corporation, it

Lynam

Street

program, and debenture
maturities
of
$28,800,000 during
of

been

Mr.

struction

balance

growth here,

too. In
decade, the volume
premium writings among stock
companies
increased
by
about

Coast

Fox-Martin,

capital expendi¬

connection

mission's

President

Vice

Pacific

has

Calif.—Joseph

has been designated

Broad Street

sale will

funds of
the Commission and may, in part,
be

ANGELES,

Lynam

District

2%.

Net proceeds from the
be added to the general

huge item in
ic

These

Broad St. Sales

the

outstanding

hprp

here is a statistic that far exceeds
'even that vastd'igure; and it is expected to go to $515 billion for
the June 30, 1959 date. It would
he some $21 billion above December 31, 1958, a figure of six
months' growth that should assure

again

Lynam V. P. for

amount equal to

debentures

good

1939-1948

of

New

aside

in

funds

a

larger

S22 620 000
$22,b^o,ouu.

to

after

set

as

three

sinking fund,

will

general

1960-64

1972,

14,

debentures

Commission

from

1%

for those redeemed

including

not

the

or

it might be interesting to

life

o,]ranrP

in

markets

irAr Insurance.
Life

M approximately $585,000,000. Net

Commission Marketed

have joined the staff of the First
Cleveland
Corporation, National
of the Midwest
 Stock Exchange.


over

is that the fire writer already has
a well set-up agency plant; and,

especially

phnded debt during the

Quebec Hydro-Elec.

the

iTwo With First Cleveland

taking

pany

.

riod

years

offering date.

proceeds from

this issue will

six

will

months. The interest rate
announced

sold

in

is

tomed to talk of the Federal debt

100%

They

adverse

it

of

are

industry

Chairman in 1953 and 1954.

_

Knox, Fiscal Agent of the Banks,
par.

Under

in'bull

on

surance

the

the

or

get markets for the
unknown issue; and con-

While

during 1957 and 1958. He was also a member of the investment
Companies Committee of the National Association of Securities

from

These

attention

this

stocks, it is
offerings

Welch, a leader in the Mutual Fund Industry for many
years, is currently a member of the Board of Governors of the
National Association of Investment Companies, and was President

as

one's

to

trariwise

Mr.

Dealers, serving

in

conditions

small,

Wellington organiza¬
are

confine

high grades. There are said
about '1200
life' insurance

difficult

Executive Vice-President of Well¬

ington Fund and Wellington Equity Fund, which
Mr. Morgan.

Cooperatives is being
arranged for sale today, Thursday,
July 16, according to John T.

at

industry, it would

buy in any quantity. And
this department's ad¬

to

whole.

a

ket

ident

$113,500,000

debentures of

still

too,
is

be

as

The

13 Banks for

the

conserv-

clouds

some

either the leaders

-

A

appeal to be
that the top

country, many of
themjquite small and not too important when they are related to

Joseph E. Welch (left) congratulated by Walter L. Morgan,
on being named President of
Wellington Co., Inc.

1984.

Of Cooperative Banks
Placed on Market

course,

combfna-

is

carriers

.

accounted

assets.

Of

as

Returning to the fire-casualty
field, let nobody say that there

to

.

utility
for

30, 1959, holdings of

Life.

of

to the

hold¬

ings of 2,550 shares of Common¬

life.

Travelers and Aetna
American
Surety,
Glena

order

here,

niimber of portfolio

a

Sales

As

over

hard

stock outstand¬

securities

we

a sinking spell, but are
beginning to show signs of a
recovery. Here, too, the stocks are

ing. The asset value on December
31, 1958, was $6.03 per share. As
of July 9, 1959, its net asset value
was $6.32 per share.
of

write

much, older

are

tions such

now

30, 1959,
$45,901,036, equivalent to
per share on the
7,434,792

Purchases

there

They had

June

common

started, to

Much the same reasoning ap¬
plies to the life insurance shares.

to

break¬

has reported that its net assets at

$6.17

organiza-

tion; and Home and Hartford have

to be judicious to do only
partial investing at this juncture.

General Public Service Corp., a
closed-end investment company,

shares of

that

have

purpose,

speculative

appear

Closed-End News

were

feel

of the secondaries may

vice

on

will

life de¬

up a

own

have decided to get their feet wet.
One advantage that a fire com-

this

hang

"A"

metal and mining, 8.57%;
petroleum,
8.04%;
electronics,
7.66%; pulp and paper, 7.40%;
construction
and
allied,
6.77%;
chemical and
drug, 6.56%, and
pipelines, 6.22%.

value

to

of North America set
partment within its

Falls, Springfield Fire, and others

ative

down:

market

results

1958

acquired now; but
grades should be used in

on

amounted

in

largest fire-casualty

our

justify

For

$401,925.

portfolio

than

Three of

writers have recently acted to go
into the life field. Insurance Co.

beginning of some careful buying into the fire-casualty group.

of

Ltd.

to

the

of Ford

of

more

appears

little sentiment about that

enough

Ltd.

size. There

any

a

be

of those

one

becomes

difficult to line up offer-

more

some

holding

it

1959

individual

Shares,

2300

was

when

be not

one

%

Income

going into

are

ings of

$60,000,000.
*

lows,

we

and

of

nr.

most

but

$2,260,346. Ap¬
proximately 50% of sales were in
the Common Stock Fund, largest
of the Group funds with assets of
more

are

periods

Mr.
does

1958,

over

This

improving. Not only

of them well off their recent

$17,250,971,
period and an

15%

said.

not

are

were

the

for

increase
Anderson

definite market indi-

are

come

Tax

Dcpts.:

54

Parliament

St.

*

13 St. James's Sq.

(Special to The Financial Chronicle)

WORCESTER, Mass. —Ilona M.

Lajbd, Bissell S Meeds
Members New
Members

^violl and Murrav B. Howard have
■

,

...

„

T

&

Street.

Co.,

Inc.,

37

Stock Exchange
Stock

Exchange
5, N Y.

t^u

become corrected with H..L. Robbins

York

American

120 BROADWAY, NEW YORK

Mechanic

Telephone:
Bell

BArclay 7-3500

Teletype NY 1-1248-49

Specialists in

Bank Stocks

Bankers to the Government in: ADEN,
UGANDA, ZANZIBAR * SOM ALII-AND

HNT^

PROTECTOR**

Branches In:

BURMA, KENT<
UGANDA,
protectorate.
southern rhodesia,

INDIA, PAKISTAN, CEYLON,

TANGANYIKA, ZANZIBAR,

aden, somaliland.
northern and

I.

Chronicle

The Commercial and Financial

24

Thursday, July 16, 1959

.

.

throughout the nation. The
included in the Federal budget
for this purpose are staggering, but enormous contingent
liabilities, particularly in the guarantee of mortgages, are
also being assumed daily. To be sure, the American people
should bevable to summon the good sense and the courage
at least to demand that a beginning be made next year in
correcting this most regrettable and dangerous situation.
These are but two of many instances where tax¬

Usually,

amounts that each year are

See It
We

As

presently leave Washington for their homes. As always,
their major occupation between the day of adjournment
and the reconvening of Congress early next year,will be
to learn at first hand the general drift of sentiment among
the voters of their districts. The President, of course, will
not be directly involved in the voting next year, but he
is the titular leader of his party and doubtless will do
what he can to bring victory to that party. He, too, and
his representatives will have an ear to the ground through¬
out the remainder of this year for the purpose of planning
next year's policies and programs.
A

Lest
add that
it
in

a

.

done about any

Continued

way or

If, therefore, really effective steps are to be taken
next year—an election year, let it
all members of the House, one-third

Vice-President

are

be remembered when
of the Senate, a Presi¬

to be chosen—toward major

in the general financial position of this
the driving force will have to come in rather

improvement

unmistakable

from

terms

the

voters

themselves.

will

It

have to come, moreover,

without very much leadership on
the part of the political clan. Among the politicians there
doubtless will be a few voices crying in the wilderness,

but

they will be in a sad minority at least until it begins
appear that the rank and file of the voters are being

converted. If and when that time arrives there will be

no

want of'followers

seeking re-election or election on plat¬
they now scorn or neglect. Some indications of
this sort of thing appears to have developed out of the
inflation warnings of the President whose personal popu¬
larity is, of course, still very great, but it is to be regarded
at most as a sign of what must be done if real financial
forms that

reform

rather

than

dangerous programs

certain

nibbling at
is to be achieved..
a

It Would Be

and

obvious

in

the

funds:

course

there in the cost of the farm programs, but a
beginning in the entire elimination of all subsidies
to the farmers of the country. Most
politicians, unfortu¬
nately, remember what President Truman did, or is sup¬
posed to have done, in 1948 with his pitchfork-in-theback-of-the-farmers speeches, and they simply are not in¬
terested in antagonizing the agriculturists of the land—
at least unless and until it is
crystal clear that offsetting
votes from other quarters will be
forthcoming. It is ap¬
parently becoming clear to some of the farm organizations
that present programs are
really getting the farmer nowhere. It would be a wonderful thing if the farmers them¬
selves wisely decided that they would in the end be better
off if they stood on their own feet.
•
,

There are, of course, many other favored
groups who
have been for a good many years
getting largesse from
the remainder of us. One of these is, of course, that

large

body of veterans of two world

wars

flict. In decades

by,

long

gone

and the Korean

used to hear

con¬

good
deal about "pension scandals" but
by comparison with
what now takes place they were
hardly a drop in a bucket.Proper care to cover service connected disability is one
thing, wholesale subsidization of veterans is quite another

general

we




the

treatment in turn is different de¬

pendent on whether such securi¬
ties were purchased with the par¬

ticipant's

through state

or

rather

analysis of the individual account

deposited

in

they

as

our

celled

ly

bonds and coupons

The Chicago and
ship their cancoupons month-

.pay.

Houston

agents

bonds-and

New

the

to

York

certificates

cremation

entire

by

it.

for

do

we

the

this

not

handling

our

to

fee

Under

while

derive

costs

until

bonds

and

paid

much

fee,
reduced

are

bank does

our

benefit for the

some

funds

items

arrangement,

earn

minimum, and

a

required

as

Each agent retains

by the obligor.
the

who

agent,

of them and prepares

cremates all

such

coupons

the

as

actually

are

such

each time

of years

is

distribution

a

We have

made.

of account to be our best

for Mutual

Performed

Services

^

applica¬

punched card accounting.

of

tion

to be

found^this type

derwriters of a new issue of stock,
Like most of the trust activities
the payment of a stock dividend,
or a subscription offer to existing for
corporations,
services
per¬
for
mutual
funds
are
stockholders
can
cause
serious formed
operating
problems. Instead of largely concentrated in New York
the usual small volume of stock and a few other eastern cities.
coming in for transfer, the mail There are signs, however, that a
may come by the bushel basket; little of this business is beginning^
and each broker or individual who to trickle into the South., Based
sent that mail expects, and is en- on the latest information I have
titled to, prompt service. We have been able to obtain,, there are now
often been faced with such prob- 8 (out of more than 140) such 1
lems. In trying to solve them, we funds based in the South; and of
have mechanized our stock trans- course each of them engages a
fer operations to the maximum bank to act as custodian of its se¬
extent which we consider prac- curities, transfer its stock, dis¬
ticable, particularly on the un- burse its dividends, and perform

of

use

time

period

a

that

Funds

the

and

them for such

presented for payment.
Trustees Under Indentures

usual

jobs,'

maintain

and

have

tried

other functions.

to
of

maximum mobility

a

1 is in Palm

8 funds,

Of these

operating personnel.
We try
to keep in touch with former em¬
ployees who occasionally like to
have temporary employment, have
our

Beach, 1 in Birmingham, 1 in Sa¬

vannah, 1 in Charlotte, 2 in Dallas,
and 2 in Houston.
One

the funds in Houston is

of

taught our staff to expect to do perhaps the largest of them, being
overtime work occasionally, and marketed on a national basis
have long had a near monopoly have called for outside help from
through several thousand securi¬
on
the appointments as trustees time
to time from employment ties dealers. It has some $27 mil¬
under indentures securing market agencies which furnish temporary
lion
in assets, and requires the
issues of bonds and debentures, help.
full-time services of 6 employees
even
though the borrower might
Profit-Sharing Plans
of
the
trust
department which
As

other

in

types

of

corporate

trust activitv, the New York banks

be

customer of

a

Even

though

a.Southern bank.

the

trust

corporate

department of the Southern bank
may

feel that it has

and

is

well

has been

thrift plans

handle

to

the bank,
custody of
the securities and maintaining the
In this case,

handles it.

spectacular growth in

a

of age,

come

equipped

In^the last 10 years, particularly
in the oil and gas industry, there

in

to

addition

having

employees.

savings

or

plans

for •stockholder

accounts,

prepares

While* most of them confirmations on purchases and
qualified under the Internal sales by brokers, calculates and
Revenue Code as profit-sharing pays directly to brokers the com¬

such-business, it is very difficult
to move it, since many borrowings

are

under

plans,

mortgage

secured

by

bond

the Southern bank

pointment under

a

an

difficult,

the

stock

are

There

is

the

de-

type of corporate
however,
which
is
to the southern #&ra

trusteeship,
wide

which

into

convertible.

are

open

trust department.-

As the
industry has grown in
the private placement of bonds, particularly of the
smaller and essentially local enterprises, has become far more
prevalent.
The financing of an
office building, the expansion of a
local
telephone
company,
or
a
small private utility company in
the fringe areas outside the cor-

porate

insurance
recent

years,

porate limits of growing cities, instead of
to

taking the form of

insurance

an

the

insurance

and

service

note

a

c&mpany, which
would

company

police

often is in the form of

itself,
one

very

or more

fully registered bonds, secured by
indenture

an

the

in

this

for

area

ance

trustee.

of business

type
the

appointing

as

bank

that

ment

a

bank

Much

of

is available

lets

insur-

the

the

and

companies

invest-

bankers

originating
such
placements know that it is capable
and
willing to act under such

appointments^
In

a

an

can

constitute

percentage
operations

are

considered

to

they

unusual

such

as

of

total

such

geared
be

a

large

volume.
to

normal

what

If

is

volume,

necessarily must be, an
on that one account,
the offering through unjob

Some
are

they

are

not

true

missions

em-

titled,

of

them,

even

ones

that

handled by Texas banks, have

thousands

of

participants.
There
variations, but the most
popular pattern is that an empl'oyee meeting certain entrance

are

many

requirements is permitted to have
percentage of his pay deducted
to go into the plan, matched usually on a 50% basis by the employer.
Within specified limits,
he is permitted to designate what
securities are to be bought with
the funds in his account, and such
purchases are made on a continuing basis until he changes his allocation under conditions permitted
by the plan. The result, in effect,
is a separate trust for each participant.
>

af>

to

they

which

are

en¬

receives directly from the
investor payments on "accumula¬
tion plans," and confirms the in¬
vestment to the investor.
In ad¬
dition, it handles the
additional shares

reinvestment

of the divi¬
who elect
automatically
reinvested; pays cash dividends to
those who "elect that option; and,

of

dends of those investors

to have the dividend

of

all

on

Internal

information

prepares

course,

returns

for the
Service.
It is

dividends

Revenue

preparing to set up the; record¬
keeping for this fund on punched
card equipment.
The one such fund which our
is

handling

is

bank

still

fairly

is beginning to show
growth.
It is marketed

but

new,

of
entirely

signs

its

through

own

sales

force, and is not available through
usual investment channels. For it,

our bank is custodian of the askets,
maintains the individual investor
committee appointed
and the fund
general
by the employer has general su- -amounts
pervision of the plan, is author- ledger, confirms all investments
ized to direct the trustee's actions, directly to the investor, makes a
calculation of
the
asset
and has the contact with the indi- daily
value
per
share,
transfers the
vidual
participants.
In
some
stock,
disburses
the
dividend,
caseS; the trustee delegates to the
committee the authority and re¬ handles automatic reinvestment of
sponsibiiify for"K^ping the rec- dividends in additional shares,
ords of the individual participants' mails reminders of monthly pay¬

Usually,

accounts,

a

so

that the trustee

sim-

ments

due,

mails_ periodic reports

material to stockhold¬
functions of the
fund
not performed
under this
chases, sells, and distributes securjties as instructed by the commit- arrangement, except for the ac¬
tual selling, management
of the

piy holds title Ito and possession
Gf the assets, receive funds, pur-

tee.

operation the size of ours,
is that one ac-

serious problem

count

usually

profit-sharing plans since the

par-

debentures

the

if

are

to

The chance-of ployer's contribution is based not
getting the ap- upon the employer's profit but on
new debenture the employee's base pay.

issue is not quite so

ticularly

issues

supplement

a

existing indenture.

a

which incidentally is not confined

contributions

own

those of the employer, some

13

page

each of the co-paying
agents .charges our account with

as

program

to the Federal Government but runs'down

all

are

bank,

bentures

serious

—a

from

•

for

Heartening

here and

now

of

complicated accounting problems
presented if the trustee is to
avoid making a time-consuming

convertible,
and
the
Southern
bank is already a transfer agent

heartening, for example, if it be¬
of the remaining months of
this year that an overwhelming majority of the voters of
this country have had their fill of putting up the money
for the politicians to buy the farm vote; if it became clear
that what is widely demanded is not
merely reductions
evident

are

of them in the foreseeable future depends

arrangement under which

an

It would be most

came

affected by
securities of
employer corporation, and this
and
distribution

terminated,

huge

in

of withdrawals from

plari are different, dependent
whether or not employment is

the

Competing and Promoting Trust
Services for Corporations

be

the

country,

on

for

parties.

a

the

Lonely Few

another—usually by gaining a reputa¬
tion of being frank and outspoken and of knowing of what
they speak—have acquired a status which enables them
to advocate and plead for causes which appear to be un¬
popular, but in the American scene, these are exceptions
rather than the rule. The political activities of most mem¬
bers of Congress and other elected officials are strictly
ad hominem and are designed primarily to determine
what seems to be the popular side of current issues and to
espouse these prejudices or beliefs. We may be perfectly
sure that there will be much probing of public sentiment
during the second half of this year, and the results of these
soundings will be actively and plainly evident in the
policies of Congress next year and of the two political

dent and

ill-spent

or

consequences

are

practice to do what they can to lead public opinion
they think it should go. Some of them
one

wasted

participants without his termina¬
tion of employmerit. Since the tax

the voters themselves.

upon

regarded as unduly cynical, we hasten to
there are, of course, a few politicians who make
we

being

is

money

drawal

amounts, whether anything of great consequence will be

the directions

have in

to

payers'

to him of the withdrawal.
there- are certain with¬
rights
available to the

quences

communities

local

to

even

Continued from first page.

.

.

(232)

In other

maintains

all

and
ers.

proxy

There are few

cases, the trustee
individual records, portfolio, and calculation of com¬
missions
due
to
the individual

determines what securities are to

be purchased or sold based on the
authorizations of the
individual

participants

as

approved

by

...

the
„

committee.

dete mi es

\v at

a

severing participant is entitled to
receive

as

well

as

the tax conse¬

/

salesmen.

Requires Proper

Promotion

securing corporate appoint¬
ments as transfer, agent, registrar,
In

trusteee

under

is natural

that

a

indenture, etc., it
bank with a good

Volume

Number

190

5864

„

The Commercial and Financial Chronicle

.

.

(233)
trust

corporate
have
the

department

inside

track

with

Foreign Bankers Visit Cleveland

the

bank's ow*i commercial

A Race Without Winners

customers,
if the trust depart¬
has kept the commercial of¬

particularly
ment

ficers

and

officers

business

informed

to

types

capable

of

it

performing

is actively

and

is

Not all banks in

however, have
and

all

not

irust
that

the

We

have

fices

securities

of

a

considers

good of¬
dealer who
because

us

to be

us

If there

have,

active

contest.

fraternity, and giv-^

ing good service

A

accounts

draw

in

have added another

we

score

in

the

on

is

anything Americans

cannot tolerate it

By maintaining good rela¬

tions with his

account.

dead

a

is

no-decision

a

heat in

a

race,

boxing match,

a.

tied

a

ball

a

than

more

one

occasion,

a

we

-

i

with

ity of obtaining a desirable ap¬
pointment as transfer agent from

taste

in

mouth

a n

friends

among the

salesmen.

We

have

of them that

some

the service

we

convinced

better and

to the customer
form it for

at

than

can

per¬

himself, and the sales¬

.is willing to forego
ment sale to a prospect

man

equip¬

an

erale's American

if he can
get the account, knowing

help

us

that

the

business

more

more equipment he
tually sell to us.

we

recent

even¬

has

While

bank

as

der to lend

there
who

would

transfer

an

air of

to

the

promotion.

it

has

been

decline

have

our

stock

Several

issue

opr

name

in

onv

feeling
easier

were

most

volume

of

formed

leading experts at the Paris

it

it,

Public

cases

that

sold

might

if

with

better

shares

growth

in

the

offering

of

First

Corporation
out

growth

services

in

the

per¬

number

of

publicly owned corporations, and
the spread of that
ownership
among an ever growing portion of
the population, has enhanced the
in

need

of

corporations

services.

The

existing
which

for

has

trust

rapid expansion of

corporations

need

a

for

much

been

has

new

raised

created

capital,

to

of

3,000,000

Co.

Dillon,
and

The

be

One

(with¬

stock

Staats

made

&

This marks the first public

was

March

California

shares

are

of

count

in

none

volume

of

such

business

is

avail¬

sale

will

the

1955.

trustees

under

The offering was made by

the

1959

Federal

and

due
are

Home

Feb.

15,

priced

at

Loan

Board

through
Everett
Smith,
Fiscal
Agent of the Federal Home Loan

dis¬
cor¬

The

the

of

company.

licensed

as

The

large

tained

issue reflects

a

sus¬

throughout

demand

the

country for funds to finance home
construction

ceeds
vide

and

purchases.

Pro¬

from the offering will pro¬
additional funds to member

institutions
Bank

of

the

Home

mortgage

and how

provides

estate

broker.

First

subsidiaries.

and

loan- associations

The

operate

of

CLAYTON, Mo.—G. H.
&

Co.,

8224

Lear

Forsyth

the

announces

Black

Boulevard,

association

III

with

Walker

of

them

Van
as

a

registered representative,
r—Mr.
more,

St.

Black

is,

a

Maryland,

Louis

most

and

remained

with

that

firm

until he became connected
G. H. Walker & Co.

with

Tex.

—

Audrey Steel,
& Co., is en¬

formerly with Wiles
gaging

in

a

securities

business

from offices at 3224 West
Edmond
Avenue.

shares

money.

outstanding "6,000,000
stock

common

been

A.
Mumford, partner
Andrews, Posner &
Rothschild,

City, passed

away

July 8th.




on

MILWAUKEE, Wis,—The board

of

pany

and

operations

of

owned

its

of

the

subsidiaries

has

of

the

of

Wisconsin

elected

Lichtfeldt

a

director and

investment

by

Mr.

Loewi

ecessors)
nation

had

been

for 35

caused

was

own

&

company,

Mr.-lichtfeldt,
of

recently retired

the

First

Wisconsin

he

has

national

standing ; in the
auditing and "accounting.

of

ings before appropriations to gen¬

Department

eral

enue

come

come

four

was

the

128,091.

1958

were

in¬

earn¬

appropriations

reserves

to

$2,346,698.

1958 calendar year in¬
$26,341,774 and net in¬

was

come

months of

$7,968,690 and net

before

before

general,

$2,781,765. For

appropriations

reserves

"

to

amounted to $8,-

National

Bank, has had 29 years experience
in the banking field. In. addition,

He served with the U. S.

first

the finish

line

to

fail

at

the

realize

time!

same

that

such

Wisconsin
He

in

the

Bureau and

was

Internal

was

Income

Treasury

reduces

the

human

to

race

Tax

Division.

President/of the National

Association

of Bank Auditors and

Comptrollers.Also

the

at

Puchner,

a

meeting Irving A.

member of the

Board

a

member, of

committee.

the

investment

characterization,

there

a

been the provision of incentive in
a
competitive system that
has
given us an economy in which the

American wage earner can secure
for himself an amount of the or¬

dinary commodities in the market
by one and three-quarter hours

effort, which the Russian worker
can secure
only by more than 14
hours of work or the Frenchman
by nine and one-half hours labor.
They

do

not

understand

American

system

of

that

in

private,

competitive individualism, the end
result is still the greatest good for
the

greatest
number
over
the
longest period of time; since no
legitimate aim of the individual

am

lieve
to

the

not

each

good,

common

a

cabbage, but

individual

get ahead!

Had

should

try

there been

no

through individual hope
of personal gain, I would not be
able to drive a car, fly in a
plane,
talk over a telephone, watch T-V,
have

ones.

a

The

electric

photograph of
man

my

loved

who perfected the

automatic

washing

ma¬

chine didn't do it, however, out of

sympathy for the American house¬
wife—he did it

so

his

.

1959.

right to choose
right recognized by pro¬
the widest possible range

of choice,

^nd

a range

of choice

is unthinkable in any field of pro¬
duction unless there are competing

producers

of similar goods. And
progressive development of tech¬
niques by which costs are lowered
better

or

wise

goods produced is like¬

unthinkable without

a

com¬

petitive system.
Two Motives Discussed
The

advocates

would have

is but

of

Socialism

believe

us

that there

major motive for indi¬

one

vidual

action

that

may

result

harm to others: the motive of
terial

that

in

ma¬

gain.

a

I beg to remind them
motive at least as powerful
more

I

power.

human

am

so) is the desire
quite sure that
produces

race

many

who would sacrifice all

thought of
personal gain in material things
if they might have the authority
to direct their fellow
cans

believe that

Ameri¬

men.

greater degree
of human happiness and freedom
(and

a

can't

have

happiness
is secured by a
system that produces a fairly sta¬
ble equilibrium between the) forces
you

without freedom)

of

those

who

government)

exercise

power

(in

and those who seek

personal wealth in private enter¬
prise.
One
thing is certain: neither
hope nor freedom can exist in a
society in which those clothed with
political authority and those en¬
gaged in the production of goods
for gain, are the same people!

Joins Richard E. Kohn

York,

is

associated

with

Richard

Kohn & Co., Newark securities

E.

firm,

it

has

been

announced

by

Richard Kohn, senior partner. Mr.
Aibel will make his office at Rich¬
E.' Kohn

ard

&

Correspondent,
120

Co.'s

L.

New

York

F.

Rothschild,
Broadway, New York.

Mr. Aibel

Congress
New

was'formerly with the
Corporation in
City in their Credit

Factors'

York

Department.

,

Homer L.
Homer
ner

fFrom a talk by Dr. Brees before the
Washington
Bankers
Association,
June
13,

the

family could

afford to send their clothes to the

laundry!

f

freedom unless

---Benjamin Aibel—of- Scarsdale
I be¬ Mrfnor
North,
Scarsdale,
New

incentive

or

no

and that

the

Result

Our would-be do-gooders seem
unable to grasp the fact it has

the

exists

viding

for

The End

be

can

(and I think

and the Fund's counsel, was elect¬

ed

said

between

shortage of both!

a

one

without winners!

Rev¬

head of the

T-V

a

system does not make all winners
—instead it makes all losers.
It

Loewi -uting to

comptroller and vice-president

difference

actor, asked why he had

There

the

They

I

$2,175,463

the

greater ability is mere¬
to
make
willingness
a
greater effort!) until all can cross

Co., Incorporated.

areas

were

duce

by heavy, ever- for self-advancement can
possibly
upon
his .be realized without his contrib-

time bv his

Winston

when he

returned to London said: "I wanted

demands

cover¬

earn¬

affiliated

(or its pred¬
His resig¬

396,842f the principal items'..being
$7,536,780 interest on loans and

reserves

to

years.

increasing

as

the four months ended April

Net

H.

member

committee

with Wisconsin Fund

com¬

19^9 showed income of $10,-

fees.

a

the vacancy
caused by the
resignation of J. Victor-Loewi, it
announced
by
Harold
W.
Story, President.

the

ing

of loan

Fund,

Clarence

fill

A pro forma consolidated state¬
ment

directors

Inc.,

"the

a

famous

seemingly

ly

Loan

Lichtfeldt Named Director
of

of the most in¬

competent, handicapping the more
able
(and a large percentage of

was

S. Mark Taper, founder and presi¬
dent of the corporation, and the

For

Frederick

York

of

general

Frederick A. Mumford

New

of the

corporation have

ings

in

I

California.
All

State

30.,

Opens Investment Office
WACO.

the

nati.ve .-of. Baltb-.. estate of his deceased wife. Each
but has lived in contributed 1,500,000 shares to this
of
his
life.
He offering.

joined the Fidelity & Deposit Co.
of Maryland after his
army serv¬
ice

licensed

are

39 offices in

to

savings

i

to

as a

Charter

six

•

With G. H. Walker

five

management services

the

business.

deeds,

they
society to the abili¬

attune

ties and weakness

System to meet the demand

for home

corporations which are
insurance agencies and

other corporation licensed

one

real

new

trust

head; who advocate

elimination
of
competition
because it produces losers as well
as
winners!

100%.

23,

connection

California

of people who have al¬
softness of heart to spread

a

would

incorporated

proceeds

to the

go

offering

people
a
large

the

made

was

public

other than

that' any
Yet we have

The. notes

Operations of the company are

well it services, the business it has

aggressively it seeks

ones

1.960.

being sold for the ac¬
selling stockholders

of

the

what

pro¬

for pursuits

July

two

and

record

on

with

Banks.

tribution of the shares of the
in

14

is

indicated

of

&

years.

poration^ which

Banks

July

transfer

able, and the extent to which each
trust
department participates in
its growth depends largely on how

amount

of leisure

Home

of

incentive

no

produce what he can!

result

1949:

what he

man

another look at a country com¬
pletely underlaid with coal and
goods
and" entirely surrounded by fish, cir¬
services
to
satisfy their wants cumstances under which
only a
and needs and the
greatest amount Socialist government could

greatest

They would have us believe that
it is very cruel, ruthless and
self¬
ish
to
have losers.
Hence

is

in recent

Loan

Federal

Brees

that spirit has succeeded in
giving
the
American people both
the

largest offerings of
the

of

M.

Co.

Securities

R.

Orlo

$310,000,000
of
4%%
noncallable, consolidated notes dated

jointly by East¬

Union

William

the

of

securities

the

In
Dr.

And

has known.

the

for

compete.

Federal Loan Bank

value) Wcis made July 15
nationwide group of 113 un¬

a

in

by the sale of

to

need

given
the
freedom to

economic

Financial

stock

common

any

if

Exchange.

with its ownership
new securi¬
Upon issuance of the notes, out¬
of stocks of operating
subsidiaries, standing indebtedness of the Home
public, expanding the
including six California savings Loan Banks will total
agents, regis¬
$1,301,750,—
trars, corporate trustees, and pay¬ and loan associations, two Cali¬ 000.
ing agents.
An ever increasing fornia corporations which act as
extent

ties

as

a

Capitalism and Socialism is that
Capitalism is the unequal dis¬
tribution of blessings, and Social¬
ism is the equal distribution of
misery!"

com¬

p e o-

to include the

Charter

derwriters headed

great

a

1 e,

p

lowed

priced at $17.50 per
corporations
in
our." share, and the total of $52,500,000
section of the
represents one of the larger SEC
country has been
during the last several years. The registered secondary offerings to
trust

a

to

Churchill
in

give

you

there remains

him

And

the

people will be

mar¬

$310 Million Notes of

par

by

man

rapid

Offering of

for

great

Stock

are

petitive

Financial Corp.

to

us

not be sold.

The

the

needs
for

been

number

times

for

willing to
printed on the

certificate,

the

Seaway and the revival of European
European Common Market Program.

Shares of Is! Charter

respectability

necessary

name

Iniiial

or¬

were-'not

we

of

one

engage

agent in

appointments

where

sidered

too.
appointments
is no dearth

good

slowly,

promters

the

opening of the

Quotes Winston Churchill

sense

until

has

we

New

work!

When

a

resolved. For

disadvantages,

the

come

of

its

in

tie

kets through the new
The
purpose of their trip was to stimulate interest of American
capital
in French industrial
investment, stocks and other securities. This
visit to the United States was the first for Mr.
Estebe, who is con¬

Having established a reputation
being a leader in stock transfer

work

branch

to his pteed and take
according fb'his ability:

won't

the
d

dissatisfac¬

tion

York, to ttfe port of Cleveland.
trip to Cleveland by these two bankers was
prompted by the

The

have,

can

the

as

(right), Cashier-Manager of Society National
Foreign Department welcomed the first French
Bankers,
Raymond Estebe (center), Manager of the Investment
Department
of Societe Generale, one of
Paris, France's largest international
banks; and Henri E. Blanchenay (left), Manager of Societe GenBank's

less cost

he

of

Richard J. Wade

perform

can

it

bad

a

^gnawing

equipment

according

American

n

have first learned of the possibil¬

our

There is only one thing wrong
with the proposal of our Socialist
friends that we give to every man
from him

game, all leave

.

On

;

words

brings out what he
advantages of the "American system of pri¬

the

are

few

fairly stable equilibrium allowing freedom and
hope^Ox exist.

he

good transfer

a

fluently and with

there is not only the motive
for material gain but also that
there is the power-motive which
competition keeps apart in a

the

recommended

Association of

vate, competitive individualism" in
comparison to prevailing
Socialist proposals.
Dr. Brees reminds Socialist-advocates

found

will get an occasional ap¬

we

through

we

believes

depart¬
corporate

promoted

activities.

agent.

Publicist

trust

pointment
has

seek¬

given area,

a

Representative, National

Manufacturers' Western
Division, Portland, Oregon

trust department,

a

of

have

ments

Public Relations

of

services^ which
ing.

By DR. ORLO M. BREES*

development

as

25

will

in

mond,

L.

Ferguson, Jr.

Ferguson,

Jr.,

part¬

Davenport & Co., Rich¬
Virginia, passed away on

26

The Commercial and, Financial Chronicle

(234)

Continued from page

.

.

Thursday, July 16, 1959

nejw Not all acquisitions, even by the

present the full picture of the in- panies spending money on
vestment accomplishment during products
development
and

11

.

re- best of analysts, are going to be
Unrealized market search.
But one should-not buy world beaters. There is need for
"pie in the sky." At some .price diversification and - a systematic
the stock of even the best com- accumulation of a reserve for the
of
depreciating bonds was $1.9
:
becomes
nvprnrir-ed
amortization of inevitable losses,
billion, or almost a 10% increase pamea
becomes overpriced and In the case o£ pension funds unlor the year,
yhus it is easily speculative.
Equity investment realized appreciation can be utiseen that capital gains can become
must always be a group operation, lized to provide such a cushion.

the past year.

A New took at

Equities

appreciation for the total portfolio despite the depressing effect

as

Pension Fund Investments
lagged

they

that

was

it

hardly

Averaging

-

,

stock

.

,.

all

an

mgn

now,

„

.

at

prices

with
,
.
,

time

that

contend

Many

yields at

and'dividend

S'may weir bl%oUyforqUsoS
of

types

fund management,
Table V shows assets of all

insured

grouping, outstrip-

largest

$3,000
8,123
prices— 12,298
23,421
Average dividend yield on cumulative investment---—_
6.0%
Compound annual increase in market value
8.4%

appreciation at average (491) 1958
Market value at 1958 (491) average prices-

°£ ^dministratiun_ and
and to
tax advant¬

investment
age.

now

passed by Congress.

of

rate

17%

current

of

for

(CREF)
and market, the investment disFrequently it is claimed that jpibution
of
corporate
pension
studies of performance of common funds. As of the end of last year,
stocks are biased by hindsight. We common stock constituted 27% of
have, in the College Retirement
(cost) and 39% of market
-

,

record of actual
stock retirement
administered by very able

Equities 1 und,
performance of
fund

a

^ata

men

analysts

late

start,
have

in

1952

invested

been

as

the

of

March

market value,
of the fiscal year,

have

now

end

31,

a

^26,200,000.
The investment performance
the

of

is

fund

to measure.

comparatively easy
Monthly joint teacher-

university contributions buy "accumulation

units,"

much

as

pe-

riodic

purchases might buy shares

in

open-end

investment

in

has

interest

hook

over

creases

in

as

a

with

accumulation
of

value

units.

com-

the

Thus,

each

even

of

In May of 1959 New

flood gate.

T

organization

merchandising

action by other states.

per-

junit is an exact
price changes in the

corporate

fund's stocks and is directly com-

decreased

parable with

from

measure

of

stock

Dow-Jones and
in

1 able

like

averages

others., As shown

accumulation unit

1, the

securities

purchases ofside of their life
by class of much as trustees,

fornomfp Pension

investor

their

bond

billion

g

purchases

1957

in

fnnHs

to

$1.3

billion in 1958. At the same time
they increased their net purchases

0.4

3.36

3.73

1959—

24.55

33.1

2.52

3.95

.*

Accumulation

(1)

Yield

(2)

earlv'

has

worth

trinled

than

more

sTx

latef

years

in 1953

in

total

ove?all

An

compound annual rate of increase
exceeds 20%., far in excess of the
customarv actuarial assnmntinn nf

3%

assumption of

o™less.

Although
.minougn
a

six
six

vear^
years

is
is

ton
too

short
shoit

period to make sweeping, long-

m
in
run

investment
investment

gpnpraliVationc
generalizations,
between CREF and

the

contrast

any

fixed income fund

including

—""d

disc^certinglyesharp°m Whatever
the

future

already, been
tial
tion

ket

amount

there

created

a

has

substan-

of

capital ap'precia16- cushion:any future mar-

declines

substantial
over

bring,

may

bond

still

and

maintain

earnings
fund

This spring the New York State
Bankers Association trust com-

mittee urged, amendment of the

a

differential

performance. The.

advantage

Is most

evident.

of

common

For

a

stock

discussion

the

Cash and

mately
age

authors

article

■Management
The

of

on

"Investment

Union

Commercial

the

and

Chronicle, Aug. 1, 1957.




Pension,"
Financial

that

these

purchases

important

an

in

IV

shows

^,>^1
i

r^nuiring

if)h

m i

Other

companies

a

assets

the

—

—

—

—7.5

53.1

10,855

3-9

NA
NA

.

—

—

—

factor

27.4

9,543

53.0

646

2.9

1,293

100.1
53.0

5,396

24.4

8^255

405

1.8

405

Other assets

892

4.0

892

Other companies

Total

assets

100.0%

$22,094

11.3%

$24,582
v

available.

NA—Not

SOURCE:

SEC

Statistical Release No.

S-1605

TABLE
Net Purchases

(May 26,

III

Corporate

of

1959).

Securities1

(By Class of Investor)
(S Billion)
Part I—BONDS

1957

J 958

$3.1

AND NOTES

Total net additions to debt issues outstanding

$7.0
1.3

Net purchases by:

Corporate pension funds—.

1.6

Life insurance companies

2.4

Other institutions and foreigners

1.9

Individuals 2

2.2

1.5

3.7

4.0

1.0

1.2

Part II—COMMON

AND

PREFERRED

Net

2.6
1.5

.

STOCKS

Total net additions to stocks outstanding

purchases by:
Corporate pension funds..
Investment companies
Other institutions and foreigners

—

0.3

0.3

1.1

0.5

0.2

1.3

Individuals 2
1

1.4

3

government and foreign corporate issues.
Including personal trust funds and non-profit organizations.

Includes foreign

SOCRCE:

SEC

Statistical

Release No. S-1605

(May 26, 1959).

TABLE IV

Receipts and Expenditures of

Corporate Pension Funds

'

($ Million)
1957

1958

2(3-03

2,275

318

331

Investment income

677

800

11

67

15

33

3,322

3,506

623

706

12

31

Net

—

profit on sale of assets——

Other income

Total receipts
Benefits

—

paid out.

Expenses

—x

___

TABLE

640

738

*2,682
"-2,682

Total disbursements
Net receipts

2,769

V

Assets of A11

3.79%
as

—Book Value, End

imperative need for

investment

market

return

nomena

should

panic

on

aver-

compared with 3.84%
in 1956.

When

5.6

14.0

15.5

34.8.

39.3

pension reserves.—
Total private funds 1———

Railroad

not

Analytical

emphasis

Old Age

be

000

with demonstrated capacity to in-

Total—

This,

however,

does

not

crease net

income.

Looks for

com-

7.8

8.7

13.5

15.2

-

22.4

21.9

25.7

and Survivors Insurance

Total Government funds

47.3

49.5

37.4

82.1

88.8

13.7

:

funds the total
includes
reserves
of nonprofit
organizations, multi-employer plans and
union-administered plans, as estimated by the Social Security Administra¬
tion for the years 1950-1957. The 1958 figure is an extrapolation of the
1 In* addition

Securities

added, the return becomes

3.7

3'7

4.1

5.3

—

State and local

people

should

,
■

■

placed in searching for companies

2.6

retirement—

Civil Service

phe-

out of sound long-term policies,

11.7

Government:

"

temporary

22.1

19.3

**

the management of pension funds.

Current

1958

5.5

Insured

gressive and enterprising spirit in

dividends)

1957

Non-insured corporate funds

a more ag-

an

of Year—

(Billions of Dollars)
1950

private:

in

an

—-

—7.2

608

3.0 *

655

Mortgages

cost*

This is approxi-

1957 and 3.79%

are

M

—4.9%

6,042

company

highest

realized capital gains of $67,000,-

4.04%.

$333

1,883

50.2

-

11,094

Common stock.
Own

Over Book

1.7%
9.0 it

•

633

Preferred stock.

J? requiring tne fugnest

and

(interest

$800 million.

sionpl investment counsel,

% of
Market

Value

Percent

new

an(J dividend yields.
income

/
Market

Employee contribution.

EveiT effort should be made to
iho
rw nf -fnpl_ nripinvest pension funds so that they
G rise-of-stock prices and the wm earn the greatest return posreduction of earnings/price ratios sible over the long run. There is

of

are for

months.

II

11,731

company-

that'wlen
pension
concentratedttnrfM. Sment counsel;

constitute

Table

deposits

Own

are

vault

of the need for competent professee

quan-

nurchasps

three

Employer contribution—

relatively few issues of leading without conflicts of interest. Good
c°mPanies and then put away in advice is worth many times its

investment lesson of the competitive

seen

period.

Value

Type of Asset

^dUVt;i-y» "jen the total purcnages skill and adherence to fiduciary
equity net new
nearly equals
resoonsibilities
Cornoratp
manissues in 1958
Thus it ran pasilv
resP°nsJDJmes. emiporate man
MV1UW

of

usu|d life insurance formula, and

(£000,000 omitted)

bllll0n net increase in out- way to achieve the lowest cost or
stan(jing common stocks. Although the greatest retirement benefits.
pension funds we see
customarily buy
Investment is a complex, techseasoned issues

be

the

i.e., should be set back

Book

a

that,

at end

on

market price.

(as of December 31, 1958)

IX

eauitv

computed

years,

at

TABLE

pany issues (which essentially, reConclusions
Place their underlying portfolio)
It is submitted that a systematic
employee stock purchase pro- program of periodic purchases of
®lmlInated we. w°u|d diversified professionally selected
?^,®ere wa? approximately common stoeks-is the soundest-

their

market value

are

stated

are

Distribution by Types of Assets of Corporate Pension Funds

w

titativelv

on

Yields

unit values

demand for equities,

reported by the SEC to

was

—

.NOTE:

insurance funds,
will increase the

be $4-0 billion. If investment com-

°cfi vJS-J
ticipation purchased

1958

3.70

18.45

property law by the adoption of
nas grown from $10 Jo $24.55, an
Gf common stocks from $1.0 billion the
"prudent man" rule which
mciease
of
14o/0
in
six
fiscal
to ^ 2 billion in 1958.
The net would permit more than the curPs',°n a c°mP°un(l interest |ncrease in common stocks out- rent 35% investment in equities
°c ^r°i
e?C^GuS standing in- the United States in for legal trust funds.
Supplemented by

3.53

1958—

Variable

analysis
author's

an

—

al¬

Popular when the SimpsonKeogh4 individual retirement bill
Sues through as ultimately it will,

the

between

Table III shows net

3.23

18.34

3.51
\

v

1933 has opened

of

prices

stock

(For

7.4

1957

annuities will become, particular-

in

greater.

2.84

The

status

Jersey linally adopted legislation
permitting the sale of variab^ annuities in that state. AlthougiHhe
investment companies opposed the
Prudential sponsorshop of this enahling legislation it is predicted
that they will soon become the
laigest sellers of variable an—
riuities. They are in the stock mat —
ket and have the investing and

formance of the two media would

be

30.3

SEC under the

the

Securities Act
a

legal

The recent liberalization of the
pany. Dividends received on the of earlier years see the
Connecticut law to permit insurfund's holdings are credited to par- Harvard business Review article ance companies to handle pension
ticipants in the .form of additional previously referred to).
funds in segregated accounts outan

19.34

Corporate bonds.

the

settled

rate

rediscount

disparity

1956

variable annuities in favor of reg¬

prime money rate, the

increase

the

3.43

3.34 '

conserv-

Reserve

Federal

and
the

the

4.04

32.4

been

stocks

common

ready set up. Very little change
111 their operations will be reat|Ve portion of the'fund
govern- Quired to promote this attractive^
menf anc| corporate bonds
show supplement to conventional retirea substantial market loss.
If com- ment programs.'
Now that New
parisons were made as of now Jersey bus broken the log jam
(June, 1959) with the recent in- competitive pressures will force
hand

other

the

Qn

of
$96,500,000
appreciation
of

1959,

includes

jwhich

fund has increased 58%

3.33%

14~.0%

15.17

$383

diversi-

a

lied list of quality common
which

presented

despite the fact that the equity
funds component is of relatively recent
growth.
In 1951 common stocks
stocks amoUnted to only 11% of funds,

OREf
in

analysis of the

shows that the
"non—conservative" portion of the

but not super—
\vith second sight, f rofn its

security

careful

A

value.

a

4.43%

11:46

$10.00

1,935

.

Yield 3

Developments

Equity

istration

Rate 2

1954..

—

data on aggregates of
trusteed pension funds
1958. Table II shows, at book

TIAA

CREF Dividend

1955

U. S. Governments..

which

corporate

Retirement Fund

Stock

1953

May ,19^Supreme Court deeision

published

All

an

Appreciation

calendar

equities in the-near future.

the SEC (Statistical
Release No. S-1605, May 26, 1959)

Record

Percent

Unit Value 1

hedge against inflation. There are*
several
developments
which
should accentuate this interest in

Recently,

VI

Common

14.4%

Performance

Current

per annum.

Performance

shown

Pension Investment Trends and

approach

would

growth

New

Increasing

VII

Dow-Jones
prices (640) the overall compound
today's

Accumulation

VIII

-v-.

of growth for 30 years

Overall annual compound rate

Fiscal Year
End. Mar. 31

(3)

Market value

At

TABLE I

Analysis of Earnings and Capital Gains of CREF and TIAA

a

This tax advantage is mini¬
with the revised insurance

bill

tax

received and reinvested

dividends

Total

since- 1950.
Noncorporate funds are the

growth

single

mized

(30 years).

Total investment 1929-1958

their

pub-

pension funds and

jic and private

ning with 1929, the results at the
end of 1958 would be as follows:

long

But for

accounts.

dollar

pension

a

a very important aspect of aggressive investment policy in dynamic

For example, if $100 had been ping OASI and insured ^plans.
|nvestecj |n the Dow-Jones indus- Their more rapid growth over the
trial securities each year, begin- latter is due primarily to greater

historic

a

One

so.

a

averaged for the past 30 years the
results would have proved to be
most rewarding.

Long-Term

of

if

Yet

1929.

Dollar Cost

be

not

imagine

poorer
time to enter the market than in

V

Importance

should

funds
could

~

The

pension

term dollar cost averaged

behind

'

•

-■

they would have been if
they had stayed unchanged
in
stocks.
1
where

and

SOURCES:
ance,

to noninsured

Exchange

Commission.

Securities and

Treasury

corporate funds' and insured

Department

Exchange Commission; Institute of
and

Life Insur¬

Social Security Administration.

Volume

Number

190

5864

.

.

The Commercial and Financial Chronicle

.

27

(235J
Continued from page 15

Public

Utility Securities

Challenge of the South Announces Program

By OWEN ELY

Marie B.

national average usage
water available of 18%
a

Mississippi River Fuel Corp.
Mississippi River Fupl is

From her vast

Laclede Gas,

to

1957; product sales

over

The

revenues

were

$1,638,000,

month

This

includes

48%

of

the

of the coal, 65%- of the

retail

23

tural
in

occurring sulphur. We have

the

the

Southern

nation's

As the

nation

States

forest

33%

1958 product sales

research

di¬

included anhydrous ammonia and fer¬
subsidiary, Mississippi River ChemicaKCo.
However, this company was recently sold to Armour &
Co.jfor

cals, they looked to the South as
a
place
to
manufacture
these

Co.'s earnings had proven somewhat disappointing because of
gen¬

call
them.
At the
present time,
70% of rayon production is in the

tilizers produced
about

$15

by

a

million.

Since

its

construction

in

the

1955

synthetics,

Chemical

eral

price weakness in chemical products, together with
competition. Mississippi River Fuel will continue to sell
the plant.

heavy
gas

South

to

souri

and Illinois. Firm industrial sales account for roughly 13%
interruptible sales to industrial customers 28%. About 90%
the population served by utility customers is in the
greater

St. Louis

area.

Current

but

the

at

figures

recoverable

are

of

proven

not yet available for production properties,
these comprised 178,000 acres with net
estimated

reserves

natural

hydrocarbons 11,000,000

follows:

as

410,000,000

gas,

crude

oil,

condensate

Met;

and

barrels.

in

Mississippi River Fuel has had a good growth record, with
postwar earnings increasing from less than $9 million in 1946 to
$77 million in 1958 (which however would fye reduced by the sale
of the fertilizer plant). Share earnings followed a somewhat
irreg¬

1959

of

non-recurring
year's results.

this

sale

stock.

of

shares

57,969

The stock

of

Missouri

purchased at

was

sold for about $5 million,
income taxes, or about 45c

yielding

Portland

a

profit from

Cement

cost of $2.9 million

a

South

it

and

a share.
First quarter revenues showed
gain of 15% and share earnings were 52c compared with 40c in
1958, bringing the 12 months ended March up to $2.08. Chairman
Marbury reported in the quarterly report that all divisions were

is

80%

industry. Included in
of all cotton spindles

national

of

(5) Forestry products—2 billion
dollars—which

exceed

operating profitably and that the business continued to show im¬

value of Southern

provement.

ton

after

but

are

being collected subject to refund

final

decision by the FPC.
Thus 1958
representing increased rates subject
adjustment).

tax

There

included

revenues

$890,000

refund

to

(before

to

in 1958)

for higiier rates charged by them, on which
might obtain a refund after final determination of
by the Commission. On balance therefore the company's

company

these rates

position with respect to rate litigation seems favorable, although
it is difficult to guess how tne various proceedings will work out.
The company's cash position is very strong and refunds would not
present

The exploration and production division (Natural Gas & Oil
Co.) spent $7.2 million for exploration and development of oil and
gas properties last year, drilling 35 wells of which 19 were pro¬

The division sold

about

billion

19

volumpl since operations began in 1950,
oil

distillate

and

more

per

qil than the

day..

The

cl

of

well

as

properties

gas,

as

could

the largest

4200 barrels of
easily

1958 output, the latter being affected

produce
by the

substantial decline in the domestic oil business. The company is
continuing art, aggressive policy of exploration and development.
T.e

subsidiary Milwhite Mud Sales Co. acquired substantial
sales outlets in the G'ulf Coast area last year, and integration of
operations continued. While
-tnoro

some progress was

made in developing

satisfactory profit margins, non-recurring charges and
price

petitive

substantial
revenues

reductions

reduction

were

indications
The

of

only

nominal but
and others

in

affected
the

off

3%.

some

The

However, despite a
drilling for oil and gas,

of

current

system's

outlook

shows

some

discussions

are

budget this

be

constructed

in

year

will

be

being held with utility customers
It is possible that

new

1960.

the nation,

The

cluding
shares).
now

the
how

be

bank

at

loans)

the

end

and

of

49%

1953

was

common

about

stock

51%

equity

Net working capital exceeded $20 million
added

fertilizer
these

The

Exchange

the

proceeds of the sale

plant.

amounts

stock

is

around

There has
will

be

and 25%

of

(range

$^.60 to yield 4J/2%.



no

(3,572,000

to which

the cement

indication

(in¬

as

may

stock

yet

and

as

states

also

pro¬

of the tobacco,

the

ammQnium used
other products.

of
of

in fertilizer

this

on

year

the

about

New

York

42-35)

and

pays

Commerce

gram

chairman

income
and

increase

1957,

the

statistics

1957,

also

of

Florida,

Georgia,

Carolina

all

a

there

in

Production
All

of

about

know

us

the

tre¬

mendously important develop¬
ments
taking
place
in
power

production, particularly through
the development of atomic energy
in the South. In addition to this,
the field

of. electronics is

panding

at

rapid

a

states

our

panies
duction

•

rate

of

one

in

ex¬

some

several

and

engaged

are

by

survey

the

are

now

more

shopping centers lo¬
strategic locations

be

held at

these

of

pected to reach

centers

is

ex¬

total of 8,500

a

1975.

About

70%

riety

chain

by

stores

of

all

new

have

downtown
United

been

areas

remodeled

were
were

in

anywhere in the

States, not counting

which
which

constructed

many

and

some

almost completely re¬

It

be

Charlotte

president

of

the

trust

to

easy

ings and

are

Trust

James

that from
an

1950

increase

to

we

how

1955

up

realize

there

vast pro¬
and
guided

Company, Wash¬

Bank,

Patrick,
executive
president, Valley National
Phoenix,
Arizona
will

address

the

officers

the topic, "THE
OF
EXECUTIVE

on

TAG

PRICE

bank

women

and executives

LEADERSHIP."

S.

A."

AHEAD

will

be

FOR

when

consider

we

by
Rukeyser, journalist,
lecturer, economic consultant and
broadcaster, and aaithor of "Finan¬
S.

Security

in

Changing

a

World."
Robert

J.

Samp,

M.

D.,

medi¬

cal educator and clinical research
worker
at
University Hospitals,
Madison, Wisconsin, will speak on
"PILLS, PINKHAM AND POI¬

SON".

Ralph H. Mittendorf, president
of

the

American

Bartking

and

Institute

vice

search
vital
we

of

to

the

must

nation.
future

our

American

Security
and
Trust
Company, Washington, D. C. will

speak

"THE

on

FUTURE

L.

Rhinehart,

of

NABW

incoming

secure

great

deal
more
search facilities 'if
tain

the

heights

Companies,
Des Moines, Iowa, will address the
convention on the topic, "LOOK¬
ING

was

AHEAD

Thirty-two

NABW."

IN

women

bank

we, are

to at=

in

the

cities

themselves.

—

Salesmanship

Personnel

portation in the postwar

in

also

era

helps to explain the growth of the
shopping centers, along with

new

various

other factors

in

different

sections.
The

South

is

a

fast-growing,

potential

is

unlimited.

progresses dependent

Our

us

upon us and

alone.

—

Mortgage
Credit

—

—

Bank

Commercial

—

Branches

Trusts
—

Loans

—

—

Opera¬

Loans

Advertising
and

will

—

and

agriculture
in the South,
so
will the population, as I have
already
pointed
out. Merchants
must prepare now to build larger
industry

continue

to

expand

better 'stores

cessible
areas

to

in

locations

national convention of the Nation¬
Association

of Bank

Women.

EXTRAORDINARY
OFFER
2 Sets of

Commercial and Financial Chronicle's
FOR SALE

which

poplation in the
they
service.
The

merchants who

serve

will also

be

the merchants who survive in this
tremendous

era

statement

Approximately 130 Volumes in All

Another Set
WHICH

SET

1908-1928

Inclusive

INTERESTS YOU?

of development.
Sales

issued

Rise

by the De¬
partment of Commerce on April
•14 of this year should make clear
what we should expect of the fu¬
A

From 1895 to 1939 Inclusive

ac¬

the'

Write

or

Phone

Sav¬

Programs for Wo¬

Customers.

done.

be

—

Consumer

With over 10,500 women serv¬
ing in officer positions in Ameri¬
can
banks today a record atten¬
dance is anticipated at this 1959
al

anticipate in

—

Problems

Country Banks

ings Banks
men

fast-mo\j|hg section of 'the- nation.
Our

tions

the next few years, i am confident
this

offi-

of

in

progress

we

vice

and

Brenton

14,400,000 popula¬
jcgrs and executives who are mem¬
metropolitan areas, but bers of the National Association
that 12,000,000 of this total growth
of Bank Women will present or
took place in the suburbs rather
discuss topics on: Effective Letters
tion

is

and
and
develop, a
industrial
re¬

OF

BANKING EDUCATION."

the

Research

of

president,

amount of research

being done in
the South, need we be ashamed
of the efforts noW being exerted.
At
the
present/lime, the South
has only 5% bf the industrial re¬

THE

discussed

missiles.

Only

and
Sav¬

E.

president

growing

Engel,

Association

ington, D. C.

president,

understand

shopping centers

conven¬

A.

officer at the National

Helen

is

the

Schroeder, Mil¬

will

built.

Population Spreading

of

Presiding officer at the
tion

cial

va¬

going into shopping centers. Since
1948, only four new department
stores

Hotel

"WHAT'S

phenomenal

conven¬

^ co-chairman

Merryle

The

the

waukee, September 23-25.

since

1948.

for

According to Miss Loeber, cash-'
ier, Wisconsin State Bank, Mil¬
waukee, convention sessions will

U.

growth

B.

Program committee.

throughout the country. Practi¬
cally all of them have been built

com¬

in

aircraft

pointed

vice

to

University
of
South
Carolina's
Bureau of Business and Economic
2,500

announced

Laedtke,
assistant
cashier, First National Bank, Oshkoshr Wisconsin, has
been
ap^1

between

years

South

and

in

disclose

exceeded the national
average in¬
crease
in
personal income from

than

Association

Catherine

Arline

that during the 10

cated

of

Cleary, vice president, First Wis¬
consin
Trust Company,
as
Pro¬
tion.

capita

Research,

appointment

dollars

1929

and

the

National

Women,''has

milliqn

nation, with a 309% increase
the same period. Department

1947

Bank

totaled

goods.

Alabama

the

Overcrowding in the cities and
the greater* availability of trans¬

to

Stock

States

of

January

and Alabama tied for third in

than
Southern Atomic Power

Retail

selling

Southern

for

of

Loeber, general chair¬

of the 1959 National Conven¬

for

outside the cities when

70%
the synthetic rubber, and 50%

used.

currently
36

been

of

debt

just

South
Carolina ledp the entire nation by
scoring a 337% advance. Georgia

in-

industry.

paper

Southern

duce 88%

and

Capitalization

is

same

cot¬

lumber

and

pulp

As

construction

regarding future requirements.

will

com*-

earnings.

amount

improvement.

pipeline

facilities

the

of

dustry of

of

problem.

any

ductive.

32%

cotton and

a

expenses

of
per

forestry products

the

.

and

other complications. In January this year the FPC
proposed refund to customers of $300,000 under earlier
litigation should be, increased to $2,200,000, but an application for
rehearing was filed. On the other hand the company has paid to
suppliers about $10 million (of which $4.5 million was charged

These

total

the

are

ruled that

the

seed.

include

1958

1

production.

(4) Oil and coal—T billion dol¬
lars—35% of national production.

a

became effective Nov.

estimated

(3) Textiles—7.3 billion dollars
—52% of national production.

was

operations included record sales to utility customers, but
revenues were considered
unsatisfactory and the company applied
for increased rates in April, approximating $4 million per annum.
After suspension by the Federal Power Commission these rates

is

1967 this will rise to 65%

—39%

net profit of $1,600,000 after

and

(

textile

common

a

for Janu¬

more

That

ran

being opened
in operation.
are in shopping centers
along with
The South's five most important
85% of the shoe stores, 50%
of
products today are:
the grocery stores, 60% of the
ap¬
(1) Foods—11 billion dollars— parel shops and 77% of the new
24% of national production.
drug stores. Nearly all of the new
store
branches
are
(2) Chemicals—8 billion dollars department

earnings at $2.10-$2.15, but probable
items makes it hard to analyze this

The report for the first half of 1859 will include

the

the

that by

pattern, increasing from 95c in 1946 to $2.33 in 1956, then
dropping back to $2 in 1957 and $1.96 in 1958. Sometime ago the
inclusion

Southern

of the entire

ular

management estimated

Souh

409

According

industry
is comprised of 2,400 mills em¬
ploying directly more than 600,000
persons who produce goods valued
at 7.3 billion dollars. In 1957, 56%
of the textile industry was located

1957

18,3C0,00t) barrels;

chemical

Industries
The

•

end

the

of

In

Huge Chemical and Textile

and
of

39%

to

come

the

within 10 years 50% of the chemi¬ industrial
salaries while Tennes¬
cal
industry will be located in, see "and
North
Carolina
each
the South.
equaled the national average.

sells about 59% of its gas to 14 utility companies
1,700,000 population in 73 cities of Arkansas, Mis¬

some

and

have

we

industry. It is also estimated that

The company

serving

as

sales

between

large corporations of the

established

1958.

billion,

worth

of,

areas.

visions and brought out new pro¬
ducts through the use of chemi¬

substantially.

in

month/The

one

gas

of the bauxite and

in

of this^ear than for the

na¬

100%

sales

150 milliqndollars

and

$26,171,000, off about 4%, and
up

man

tion

retail

petroleum, 76% of the natural

13 other

Mud Sales Co., it produces barite and other materials for
drilling
oil and gas wells.
Gas sales last year were $49,451,000, a gain of

6%

stores, the South

ture. That statement cited the fact
that

ary

clay, 53%

utility companies and a number of industrial customers. In addition
lb this pipeline business it has oil and
gas productibn through its
division, Natural Gas & Oil Co. Through a subsidiary, Milwhite

miscellaneous

the

-erals,

a

around St. Louis where it is sold

of

produces 56% of the nation's min-

medium-sized natural gas system
whic.i takes gas from United Gas Corp. and other
suppliers in
easiern Texas and northern Louisiana and
transports it to the area
in and

Bank Women's Ass'n.

—

REctor 2-9570

Edwin L. Beck, c/o Chronicle, 25 Park PL, N. Y. 7

4"

'

•

•

Financial Chronicle

The Commercial and

.

.

ft

Thursday, July 16, 1959

.

(236)

28

qualifications.

■y One of the" above

-1A

Meeting Inflation

viewpoint. The general belief has

policy recommendation. Therein
the various media open to invesagainst inflation.
Neither can we tors were examined as to their
overlook the wide publicity being attractiveness under an inflation.
%iven the sweep of inflation by The objective laid down was the
the press of the country;
Lastly maintenance and enhancement or
is
the weakness in the govern- principal in terms of purchasing
ment bond-market and the shying
power of the dollar
From, time
away
by investors from longer- to time since 1940, these inflation
term
government securities out studies have been repeated,
of fears as to the dollar's future.
Nearly two decades of inflation
The Treasury's task in trying to-have
elapsed since that initial
finance this year's $12-$13 billionYl940 discussion, the principles ol
deficit
and
several
times
that which discussion have been re-,
amount of debt refunding is be- peated in the subsequent annual
coming increasingly difficult.
In inflation memoranda.
Since the
a
recent
$15
billion refunding type of inflation—a creeping price
operation by the Treasury, hold- advance — that wa§ envisaged in
ers
of
$2.1
billion of maturing 1940 is still under way, it should
desire by
to
hedge

of a
generally
out

nation

the

Americans

obligations preferred cash to new
Treasury
issues offered in
exchange.

Inflation
What

the

investor and

the

can

among

adequate

not

were

There follow excerpts'

Macaulay
New York.

letter written by

a

of

Randall

S.

H.

obtain

to

an

1908 edition.

wages

inventory
and hence
operations. To the degree that a
corporation had to redeem securi¬
ties, its working capital position
was further jeopardized.
On the basis of these qualifica¬
tions,
three
tries

was

tractive inflation hedges; in Group

I

to

next

century, if not of this.

surprised to learn that
not a high opinion of Mr.
are

through them?
heartily wish you a good de¬
liverance But my reason and my
wishes are at war, and I cannot
"1

a

parliament, irv conversa¬

in

never

will

even

or

populace

the

court

on

uttered

—

a

the

is

able

he

never

distressed

the hustings—a
jority.
place where it is the fashion to

tion,

pass

am surprised at
help foreboding the worst. It is
I am certain that
line, and that 1 quite plain that your government

and I

wrote

never

in the course of the
How

have

surprise.

your

pass

will you pass

Jefferson,

divided into
groups,
classifying indus¬
in Group T as the most at¬
indilstry

have

I

seen"

thrde or four times
through such critical seasons as
I have described.
Through such
seasons
the
United
States
will

England

Sir:

"You

H have

cheerfulness.

and

"London, May 23rd, 1857
"Dear

The springs of na¬
prosperity soon begin to
again,
work ^
plentiful,
rise, and all is tranquility

indigent.

tional,
flow

"Macaulay's

in

found

robbing the wealthy to relieve-

the

quote the last two paragraphs
missive, but have "broken
them into several paragraphs
to
facilitate the reading,
The italics
are
ours.
The-full text will be
the

timejs got over with¬

"The bad
out

We

of

shrinking

honor.
Necker
was Minister of Finance of France,
later Director General of Finance,
during the early half of the French
inflation
mentioned in an early
of personal

sense

to

His

one

was

in its field.

from

equal inventory for the next turn¬
over.
The result was gradually

deep debt, the purchasing value of
high which would recede as the dollar
lost value. Gold was eliminated
because of various complexities
that argued against its holding,

well as a man of
of patriotism and a

as

rope,

feeling

class, numerous indeed, but se¬
lect, of an educated class, of a
class which
and knows itself

a

Life and
Letters" by G. O. Trevelyan, pages
up so much faster that
receipts
451 to 454 of the appendices of the
from turnover of one inventory

to the
If the

of

is in the hands

"History to be, deen^interested in the se¬
of the most curity of property and the main¬
books at his time, tenance of order. Accordingly, the
both
in
Great Britain
and the malcontents are firmly yet gently
United States. It remains a classic restrained.

England"
widely-read

of

acquiring inventory and disposing
Even though the inventory
was marked up sufficiently to in¬
sure
a ^profit
on the investment,
the price level sometimes moved

against the attritions of a depredating dollar were good in 1940,
they should be good now.
Bonds, notes, land contracts,
real estate mortgages, and life
was
acknowledged
as insurance annuities were ruled out
the great bankers of Eu- as they were evidences of fixed

Necker

Secretary
of Lord

Cabinet

tne

historian.

and

man

of it.

Here

tion?

a

in

the suf¬
rulers. The

the

not

are

supreme power

Melbourne, was an English states¬

quate to operations. This was be¬
cause
of the time* lag
between

property do about inflais what one of the
shrewdest men in France did.
I
refer
to
Necker,
financier and
statesman.
In financial ability,
of

man

War

British

Macaulay,

for

corporations, indicated that the
greatest
burden falling ; on the
average corporation during an in¬
flationary period was endeavor
to maintain working capital ade¬

property

principles of protecting

ton

ferers

Thomas Babing-

Author's Note:

cannot

a

it matters little, for here

NEW YORK

OF

World War 1, undertaken
number of large American

RANDALL

S.

HON. II.

TO

lowing
for

LORD MACAULAY

OF

LETTER

dis¬

Wright's studies of inflations in
various "European
countries fol¬

1940 study to see

well each conformed
rating initially given it.

how

easily

be

can

one man

while' another

full meal. In bad years
there is plenty of grumbling herd,
and sometimes a liUle rioting. But
get

.

charged with the cheapened cur¬
rency, thus leaving the property
free
for
shareholders. Dr. Ivan

interesting to check, at this
time, the price action from 1940
to date of the investment media

discussed in the

debt

that "the

is a monstrous
-should., have '

him. that it

million

a

an

inflation, of companies with large
debt is desirable' on the grounds

prove

Investors Can Do About

What

during

that ownership,

been

tell,

variety.

ing

to agitators, who

with* eagerness

the dollar, into gallop-' 'iniquity that

flight from

popular

with'the

is*0at "variance

listen

tented; and inclines bim to

overnight,, the creeping inflation
could, turn, via frightened public,

Debts

Large

possibility that,

above, against the

Firms With

Exclude

Would

3

Continued jrom page

restrain

to

discontented

and

a

ma¬

For with you the majority
government and has the

an
opinion that rich, who are always a minority,
absolutely at its mercy. The day
authority irTa state
will come when, in the State of
Heal estate, except for the owning tween position. Placed in Group I ought to be Intrusted to the ma¬ New York, a multitude of people,
jority of citizens told by the head;
of a home, which is geneially werfe beverages, casualty and fire
none of whom had more than half
paragraph.
He steadily endeav- advisable, and commodities were insurance companies, coal, cos¬ in other words, to the poorest and a
breakfast, or expects to have
njcst ignorant part of society. 1
ored, Mr. Andrew D. White tells deleted because of numerous
metics, chemicals, iron ore, motion
more
than
half a
dinner, will
have long been convinced that in¬
us
"to
keep France faithful to tors. There is, for one thing, the
pictures, nonferrous metals, nonchoose the legislature.
Is it pos¬
those principles in monetary af- immobility
of real estate and pulp rayons, pulp, petroleum pro¬ stitutions. purely democratic must, sible to doubt what sort of legis¬
sooner or later, destroy liberty or
fairs which the general experience hence the ease of its location and
ducers, sugar producers. In Group
lature will be chosen?
of
modern times
had found the taxation
by local governments III was placed agricultural equip¬ civilization, or both.
"On
one
side is
a
statesman
"In Europe, where the popula-:
only
path
to
national safety." necessarily
sorely _
ment, aircraft mfg., banks, build¬
patience,
respect for
tion is dense, the effect of such preaching
N e c k e r's
remonstrations
and higher revenue during periods of ing
materials
(nonintegrated),
vested rights, strict observance of
institutions would be almost in¬
warnings were given about the inflation. Carrying of
cigarettes, containers, life insur¬
On the other is a i
stantaneous. What happened late¬ public faith.
same
attention by the politicians involve storage charges and there ance
companies,
leather
proc¬
and masses as are the remonstra- is the lack of cuirent income on
ly in France is an example.
In demagogue ranting about the tyr¬
essors, machinery, machine tools,
of capitalists and usurers,
1848 a pure democracy was estab¬ anny
tions and warnings today of Sen-—them.
merchandising, package foods,
ator Byrd, Chairman of the SenFinal choice was
common public utilities, railroads, shoes. lished there. During a short time and asking why anybody should
ate
Finance Committee.
Seeing stock.
The common stock pos- Group II, the in-between list, there was reason to expect a be permitted to drink champagne,
and to ride in a carriage while
the futility of his efforts, his dis- 3essc:f a ready market. It is
was
given
as
advertising,
air general spoliation, a 'national
esteem
with the
popiilace, and handled and stored. It affords ir - transport, automobiles, automobile bankruptcy, a new partition of the thousands of honest folk are in
want of necessaries? Which of the
the
inevitable sequence, Necker con16 to those in need for cuirent
accessories,
integrated
building soil, a maximum of prices, a ruin¬
two candidates is likely to be pre¬
sent in
his resignation and left return. It is mobile.
materials, glass, household fur¬ ous load of taxation laid on the
ferred
by a working man who
France forever. At least, he could wlth_ respect to its financial
nishings, investment trusts, tex¬ rich for the purpose of supporting
hears his children cry for more
save
his fortune if he could not earnings progress is leadily
the poor in idleness. Such a system
tiles.

III,

the

as

in

attractive;

least

Group II, as occupying an in-be¬

word
the

indicating

supreme

fac-

pressed- for

commodities

the

his state.

save

win in

,

that

knew

Necker

no

can

one

inflation any more than

an

wins a world war or an
earthquake.
The Necker course
of protection against inflation is
not recommended to Americans.
But those Americans with capital
can take action which will afford
anyone

protection

some

to

dollar's

the

sinking value. First and foremost,

they can make it clear
national and state legis-

of

course,

to

their

lators by word and vote that
cit

by

financing

of

government is an anathema. Government should not spend beyond
its reasonable revenues except in
time

Hire emergencv and

of

then, in following years, it

begin

cancel

to

Second,

of

degree
able

it

to

such

even

should
deficit

capital can seek such
protection as is availduring

an

inflationary

by way of committing itthat type of security or

period
self

out

to

+

+

Ejects.

.

study on investment
me<*ia to combat an inflation, i
w?3 P^iuted out, however, that,
while the common stock in gen?Ia sh°uld outpeifoim the othei
instruments available to the in¬
vef°+r.> there was alsd a dlffei;
?

j-

defi-

degree

any

Information
and
availab.le- " 13 su,?Je^
Senera! a?al"
yflsV as+v,a+^ains
L
study that must be devoted to
each particular real estate plot, to
vafic>us commodities, and to

were

sha^' J

a

COmnanv

the

having

one

snaies 01 a ^?mP,ai?7 n.avi ^ °re
?.r ™ore °

that- arajreciates

inflatioif proceeds

the

the

shares

common

One of these

tions.

nriee

^0°"preferablv^f \
01 a

ci^cer, pieieiSDiy

inaieiiai

^' haVe

{j

d

^

£5(3)where there
d d ^
}
small fixe^
d (4) .
th
£aterfals * d
™

With

the

Federal

ary

1940

we

d

e

stated, avoid companies

we

operate

Investments

for"

the

under

source

fixed or

not control

of their supply of ma-

terials, (3) where labor costs are

unbalancing

of-the

the

cutting

,and

regarded

inflation

imminent

t a i 1 e d

to

.

product or service, (4) where
material costs are large in relation
to

product

the

where

a

or

service,

(5)

large structure of debt

justify exists, (6) that sell early and buy

memorandum




as

relation to the price of

]arge

gold

sufficiently
a

would,

inflexible rates, (2) do

budget

from

"ot
the
(5)
and

investor hedging against inflation

in the early '30s,
firm warned of the inflationpotential being created.
By

loose

are

sells late. By the same token, the

Protection Against Inflation

my

or produced by

corpora-

concenrae.

and

dollar instruments, such as bonds,

contracts, real estate
and
annuities
have
shrunk
in
purchasing value by
51.6%. Gold has shrunk in value

land

notes,

/mortgages,

by

the
have

equal amount because

an

$35

might

that

ounce

an

been put in it abroad

in 1940 will
command but $35 today. Shares of
our leading gold mines have fallen
in.value. Commodities have risen
to about the extent the, dollar has
lost value, leaving the commodity
Common

stocks

whole

a

(Standard & Poor's index of 500)
medium- preferred
in our
in mar¬
ket value, thus not only keeping
—the

1940 study—rose by 385%

late.

inflation, but giving him an addi¬
tional
in

increment

principal.

broken

If

or

into

down

enhancement

stocks be
d n s t r i a 1

common

i

n

(S & P averages), how¬
the preferred Group I regis¬

groups
ever,

tered

an
average 618% advance;
Group,III, the tabooed group, a
306%
advance;
Group
II,
the
group classified as an in-between
list, a 375% advance.
So long as the inflation con¬
tinues of ^he creeping variety,' it
is my belie^~tnat the average in¬

vestor's
to

of

best

course

would,

is

to

adhere

20

in

France

as

tribune,

is

Liberty

an

gone,

would

the

be

same.

civilization would perish, or

a

prosperity would be saved by

strong military government, and

perish.

You may
enjoys an
exemption from these evils. I will
frankly Own to you that I am of a
very different opinion. Your fate
I believe to be certain, though it
is deferred by a physical cause.
As long as you have a boundless
would

think that your country

extent

land,

fertile

of

your

and

be far more at ease than-the labor¬

basis

their

of

Included
ever,

should be

centage

hedges,

growth

in such

of
as

a

the

potential.

selections, how¬

substantial

primary

per¬

inflation

mentioned in Group I

There will be,

The spoliation

spoliation.

fear,

The distress

d u c e fresh spoliation.
There
is
nothing to stop you.
Your Constitution is all sail and
p r o

no

anchor. As I

a

society

|&id before, when
entered
on
this
progress, either civili¬
liberty
must
perish.
has

downward
zation

or

Napoleon
government
with a strong hand, or your Re¬
public will be as fearfully plun¬

Either

Caesar

some

or

will seize the reins of

as

laid

and

dered

barians

the

in

waste

bar¬

by

twentieth

century

th©TRoma n Empire was. in

the

fifth; with this difference, that the
Huns and Vandals who ravaged
the
Roman
Empire
came
from
ferson
politics may continue to
exist
without causing any fatal without, and that your Huns and
ing population of the Old World;
and while that is the case the Jef¬

But the time will come

calamity.
when

New

thickly peopled
Wages will be
fluctuate
with

us.

will be as
Old England.
low, and will

England
as
as

as
much with you
as
Yrou will have your Man¬

chester and

Birminghams, and in

hundreds

on

unoccupied

laboring population will

hams

selected

I

would plunder the rich, and
will
order

poor

and

of absolute famine.

will increase distress.

Individual

be

the effect
Either the

cratic government here

Manchester

should

,

enslaved press. perity from returning; that you
will act like people who should
but civilization
in a year of scarcity devour all
has been saved.
the seedcorn, and thus make the
"I have not the smallest doubt
next a year, not of scarcity, but
that if we had a purely demo¬
lent

tnose

stocks

bread?

poor

stocks, with occasional building
cash reserves against cyclical

market considerations.

made

have

years,,

"I seriously apprehend that you
and as barbarous
will, in some such season of ad¬
as the France of the Carlovingians.
versity as I have described, do
Happily the danger was averted;
and now there is despotism, a si¬ things which will prevent pros¬

liberty

as

the investor abreast of the 1940-58

ln

in

Specific

a

where labQr

RatiQnal market;

Amon«
nrecious

has superior advantage and
it that funds may best be

ever,

it is

The dollar and

ment media cited?

material

media, how-

of

1940

between

happened

investor "even Steven."

the gompany
in abundant TO1)' and d°
sucheauihesareiewels'
constitute a large element in
metels
art obiects
commodities cost o£ the £inished Product;
H common use rekl eSUe and 11131 «""°rmly buys early
in

goods

Is

What

and the close of 1958 to the invest¬

Vandals

artisans

will

stitutions
to

the

be

of

be

reckon

not

fairly

brought
"">■

test.

mutinous

Jefferson

among

benefactors of mankind.

his

thas

the

I readily

good,

and

and
...

his

intentions

abilities

were

I have

consider¬

doubt that I

no

some¬

Then your in¬

"Distress everywhere makes the
laborer

en¬

"Thinking thus, of course l ean

able.

will

been

Birming¬

thousands

assuredly

times out of Work.

have

institutions.

your own

admit

and

and

will

gendered within your country by

discon¬

shall

derive

both

pleasure

information from your

and

account of

him.
'Yours

very

truly,

"Thomas Babington

Macaulay"

Volume 190 dumber 5864

.

The Commercial and Financial Chronicle

.

.

(237)

Continued from page 7

ment

the

of

banking structure of

New York which makes it

ative

In

face.

we

order

limit

my

National Trends and Developments
recent

of

conspicuous activities of
gressional committees have

to

seem

this time.

con¬

recurring inquiries into the
functioning of our monetary and
banking system and our financial

terest which

institutions

to

in

general.

manifestation

The

of

One of

most

this

pre¬

with
money,
fiscal
debt,
interest
rate,
and
price
problems is the broad study un¬
dertaken by the Joint Economic
under

the

need

this

is

not

New

symptomatic
have

we

nancial
lated

of

the

developed

institutions

and

fact

effect

with

the

is

generally

conceded

is

it

time

deliberate effort

a

precisely what we have
created and what the implications
are for the future.
This, inciden¬

tally, is also the prime
of the

Commission

Credit

created

by the Committee

Economic

on

objective
Money and

on

Development

the financial
support

with

of the Ford

Foundation.
Bear

in

much

also

Patman

interested

searching

the

that

is
in

inquiry

Repre¬

still

into

debt

a

and

monetary

aware

several
in

shares

on

3%%, You
of

the

increase

in

their

sympathetic With

place,
have

re¬

be earned in

now

have

we

caution

We

reap

higher rates of

can

some

should

has

noted

felt
in

been

that

with

the rise in interest rates there has

naturally been

decline in

a

mar¬

ket values of debt securities, in-,
eluding those of the United States

direct effect.on the liquidity po¬
of
financial
institutions
has

also

had

important

an

effect

on

when

measured,
not
but by market

value,

surplus

securities

This

and

reserves

by

book

values

held.

does

not

imply that only
our savings institutions have been
contending with this problem. It

eral.

is

gen¬

Here
also

in

been

inquiry

New

into

sorted
other

their

of

aware

the

financial

our

York,
the

for

need

effectiveness

institutions

of

groups

have

we

and

scholars

experts have
home work.

of
as¬

and

doing

eral

Reserve System and its
op¬
erations. Somewhat later this As¬
sociation played a substantial role
in

modernizing the New
Banking Lav/ insofar

York

State
has

to

counts

do

with

loans

and

as

it

invest¬

in

maximum

savings ac¬
deposits—
like to pay

on

time

other

cases

many

our

limited

and, in fact have sought

mission
of

that

3%

a

payment
and

would

fact

banks—now

know to

you

interest

do

to

from

so

the

per¬

Board

Governors.
Further to

House

Association 'de¬
voted considerable time and effort
to a "re-examination" of the Fed¬

known

commercial
as

more

been

Several years ago the New York

Clearing

well

a

eral situation

uing

^

complicate this

problem

which has

of

bank

taxation

its direct effect

only

for

prepare

tions

which

margin

adverse

their

sur¬

future

not

condi¬

but

come,

may

the

on

ability of banks to build up
plus and reserves and thus

also

growth.

institutions.
associations of com¬

Against these considerations we
must
weigh the
fiscal require¬

banks, savings banks, and
savings and loan associations have

ments of the national government.
We acknowledge there are com¬

ments

of

banking

Meanwhile,
mercial

completed

their

own

studies

of

banking facilities and operations
in New York. The most recent of
these
Association-sponsored stud¬
ies
dealt with
the
situation ? in
Nassau

County
and
promptly
might be called an

elicited
answer

what
or

a

rebuttal from

members of the

University.
special

certain

have

also

the

on

had

adequacy

what

this

future is that

inquiries

as

means

for

the result

launched

and

the

of the

carried

through by congressional com¬
mittees, and the extensive studies
completed

by

expert

in

groups

state,

we have been building
formidable body of knowl¬
edge which, if properly used, can

up

a

give

us

considerable

guidance

in

dealing with the problems which
I

am

sure we

will face in the next

few years.

any

or

all

of

the

highly contro¬
versial issues facing the financial
community of New York State
and arrive at solutions which will

acceptable

to

those

who




ap¬

tions

are

now

then

sions

as

want

we

this

is

the

to

the

for

ceived

please

how

on

I

should

state

too

to

emphasize that ideas will not
only be welcome at the Banking
Department, but urge all bankers
to

discuss their problems with
and to consult with us
prior

us

to

committing yourselves to impor¬
changes. While we find the

tant

entertaining

in¬
structive, it would be distressing
indeed to learn of major banking
developments from that source.
I

think

off if
and

shall

we

all

and

be

better

communicate frequently

we

freely with each other and I

trust

this

that
as

all

an

with

bankers

will

invitation

open

take

to

do

me.

government's

requirements

revenue

to remain

are

high and it follows that
is going to get the

it

needs.

foregoing adds up to
observation that the present

my

the

"and

resultant

values,

in

trend

the

interest

effect

mutual

funds.

has

become

fully

registered
Exchange,

the

of

associated

with

firm in the Mutual Funds

the

Depart¬

ment.

I

outline

which

we

these

as

as

a

in

William

William

the

sales

New

whole.

problems

on

soundly based

as

ap¬

repre¬

York

area

Street

Street,

Sales, Inc., 1
New York City,

national underwriters for The One

of

equal responsibility.
to me that one other
area

careful

must

receive

attention.

I

section

William

that Mr.

nounced

with

and
Ltd.

Richardson, President of
Street
Sales, Inc., an¬

Dorsey

share

Inc.,

Canada

dealer

Swensen

sales

Vincent

would

representation
in

Dunn

the

New

That
of

18

subsection

the

Federal

Metropolitan

with- the

tivities

New

United

York

States

Rubber

Mr.

Swensen

was

with

Lehman

Company,
most recently

Brothers.

our

Mutual Investors Open

refer to

LOCUST

a

merger policy for New
York.
May I ask that you do not attempt

tual

here

formed

with

nor

Avenue

to

VALLEY, N. J.—Mu¬

Investors

business.

Company has been
offices

engage

Partners

at

in

are

Fernando and John M.
Mr.

H.

Henriques
T.

Rockwell

was

Co.

60

a

Cedar

securities
Louis

formerly with

and

if

ha»

approval

been given, a summary of the sub¬
stance of the report made by the

Attorney General, and

a

statement

be, in justification of its findings."

thereof

and

substituting

in

lieu

1

thereof the following: "No insured

shall

bank

with

merge

consolidate

or

other insured bank, or
directly or indirectly, acquire the
assets of, or assume liability to
pay
any
deposits made in, any

M. M. Banks Elected

any

other

insured

bank

without

the

prior written consent (i) of the
Comptroller of the Currency if
the
acquiring, assuming, or re¬
sulting bank is to be a national

bank
the

or a

Board

Federal

district bank, or (ii) of
of Governors of the

Reserve

acquiring,
is

bank

System

assuming,

to

be

the

resulting

or

State

a

if

member

(except a district bank), or
(iii) of the Corporation if the
acquiring,' assuming, or resulting
is

be

to

bank

a

nonmember

(except

in¬

district

a

In

whether

the

lessen

effect

compe¬

tend unduly to
create
a
monopoly, and, in the
interests of uniform standards, it
shall

not

take

action

to

as

any

seeking the views of each of the
two

agencies re¬
ferred to herein with respect to
such question.
In the case of a

elected

M.

Banks

director

a

has

and

been,
vice

a

Fiduciary
Mutual
Investing
Company,
Inc.,, 115
Broadway, New York City, openend investment company,
it has
president

been

of

announced.

President
ment

of

Mercer

Corporation,
distributor

and

Banks

has

ground

in

of

extensive

an

mutual

distribution.

sale

Vice-President

and

of

back¬

fund

He

whole¬
been

has

consolidation, acquisition
of assets, or assumption of liabili¬
ties, the appropriate agency shall
report from

Ameri¬

distrib-

of

several

mutual

formerly headed his

funds,,
firm

own

which operated in the same busi¬
ness.

From
was

1927

to

partner

a

1948

in

Stock

&

War

II

of

Weeks.

he

During

served

with

Production * Board,
head of

of

and

York

Luke,
World

the

War

initially

as

section of its bureau of

a

finance and from 1944-45
tor

Banks

New

firm

Exchange

Banks

Mr.

the

the

division

as

direc¬

of^stockpiling

shipping.

NEVER
FELT

BETTER!

the Attor¬

ney General on
the competitive
factors involved in the merger.

Attorney

shall

General

furnish such report to such agency
within thirty calendar days of the

request: Provided, however, That
in case the agency finds an emer¬

exists the agency may ad¬
vise the Attorney General thereof

gency

and

thereupon shorten the
for the Attorney General
to
report to ten calendar days:
Provided, further, That where t^e
agency finds that an emergency
may

period

makes necessary immediate action
in order to prevent the probable

failure

of

Congress

one,

a.

report

semi-annual

with respect |o each merger, con¬

solidation, acquisition of assets, or
assumption offeb^ities approved
by the Comptroller, the Board, o
the Corporation, as the case may
be, which shall include the follow¬

ing information: the name of the
receiving bank; the name of the

7/
Health checkup? Not foil
him

fine

.

.

he knows he's

.

know is that

cancer

"silent" stage
reveals any
tors say

curing

...

better when

of

resources

whether
mitted

a

by

the

report

the

absorbed

has

been

Attorney

much'

they h^ve art

opportunity to detect it "bej
fore it talks."

That's why
for you to

it's important
have

an an¬

how well you may

total

checkup,

no

matter*

feel.'

bank;

sub¬

General

it)

their chances ot

cancer are so

of

the

has a

before

symptoms. Doc

nual

receiving- bank;

in,

shape! What he doesn't

absorbed bank; the total resources
the

a.

North

Company,

Securities

can

utors

Manage¬

underwriter
the fund, Mr.,

banking

merger,

a

By Fiduciary Mutual
Morton

first

without

transaction

such

C.

Henriques.

hereunder;

i

n

by striking out the third sentence

of the merging
Westchester
County and Long banks, the appropriate agency may
Island areas.
act without obtaining such report
from the Attorney General:
And
Mr. Swensen was a special agent
of the Federal Bureau of Investi¬ •provided further, That the Comp¬
troller, the Board, and the Cor¬
gations from 1951 through 1954.
Formerly associated in sal£s ac¬ poration shall each submit to the
Jersey,

Act to pro¬

by the Comptroller, the Board, or
the Corporation, as the case may*

"The

been

occurs

important
mest

regional

a

sentative

Fund

possible. Those of you who are
responsible for bank management
an

pointed

has

Swensen

Scudder

working and which
we will continue to
study in order
that the policy decisions we must

It

L.

Fund,

ment are now

as

Paul

Street

in the Banking Depart¬

make will be

of

request

William

savers,

must be dealt with

(c)

other

a

Insurance

Deposit Insurance Act is amended

thereof may be to
tition unduly or to

Merle-Smith, 48 Wall
Street, New York City, members
of the New York Stock Exchange,
announced the opening of a new

rates,

to
the liquidity
position of our institutions, their
surplus and reserve positions and
their tax obligations are all part
and parcel' of- a problem
which
pressure

to

assembled,

gress

granting or withhold¬
ing consent under this subsection,

&

security
increase

on

United States of America in Con¬

sured

Opens New Dept.

of

All of the

level

"Be it enacted by the Senate* and
of Representatives of the

House

Dick & Merle-Smith

Paul Pettit,
representative

«

Federal Deposit

Arnold Malkan, & Co., Inc., 26
the Comptroller, the Board, or the
Broadway, New York City, has
Henry Meinninger Corporation, as the case may be,
has joined the firm's underwriting shall consider the factors,enumer¬
department. Mr. Meinninger is a ated in section 6 of this Act. In
the case of a merger, consolida¬
Certified Public Accountant.
tion, acquisition of assets or as¬
sumption of liabilities, the appro¬
priate agency shall also take into

going

the government
revenue

amend the

announced that

to

Senate, May 14, 1959

ACT

safeguards against mergers and consolidations of
hanks which might lessen competition unduly or tend
unduly to create a monopoly in the field of hanking.

bank).

devoted

-r.-

vide

Arnold Malkan & Go.

Sales Representative

the

To

bank

department

ing system.

passed by the

as

bank

Appoint Paul L. Swensen

that

to be proud of, and thankful for,,
in the present status of our bank¬

Text of S. 1062

Henry Meinninger With

Dick

Taken all in all, we have much

re¬

Because of its mobility it is even

as¬

strongly that any ideas, proposals,
and thinking in
general, will find
a
receptive ear. We should like

newspapers

effectively

AN

be

we

cannot

most

our

I
approach all these
without fixed precon¬

notions

and

would indicate.

protection for depositors.

as

accordingly, and

part

my

them/

solve

billion

important than its size alone

more

When

make

can

that

problems

$2

supplements capital funds and
serves

Banking Department
to grips with
this

are
coming
problem.

sured

we

Insurance

conclu¬

some

created.

we

decisions

in

As

to

Service. The Federal Deposit
fund
has now passed

enue

banking situation

see

done

policy
we

functioning, and

come

to

efforts

to read between
the
lines,
attempt to apply my remarks
proach these problems with a rea¬ to any
application now pending
sonable attitude and a sense of fair
before the Banking Department.
play. I believe this is so, and I I am simply stating that we have
should like to see it come about." reached a
stage in the develop¬

be

our

must

recognize

and
take

concerted

We

budget for the
national government, but we must

have

Through proper research
study, we should be able to

and

balanced

a

payments

banking.

this

toward

faculty of Hofstra

We

studies

of bank earnings and the
efficacy
of the holding
company device in

Now

mendable

difficult.

more

which

makes

consideration
gen¬

have the contin¬

we

This

of

management
policies,
the level of interest
rates, and the
Federal Reserve System in

Banking Bills
Congress Is Considering

do not

we

measures

a
complete, thorough knowl¬
edge of how our banking institur-

so

Seveial

inter¬

have

Government. This in turn has had
a

sition

Obviously,

objective
applied.

be

task

announced

aware

savers

of

market

that

order.

very

launching

that

which

and

mind

sentative

that

have

also

are

benefit

the

to make

we

idea

turn

us

as

associations

per, year to

the

the federal

to find out

State

similar

a

While

problems of financing the deficits

for

in¬

dividend rate.

of

government that it

of

and increasing pressure
savings bank system to

the

inter-re¬

so

involved

so

that'

system of fi¬

a

York

fact

loan

probably

in

inquiry here. However, it

probably

the

and

present

scope

rate

increase in their rate

an

are

the

of

am

the

can

.are

from 31/4%

chairman¬

outline

I

as

ship of Senator Douglas.
We

York.

can

'

Problem

properly be paid
under
present condi¬

savers

savings

Rate

these is

tions. You

occupation

Committee

to, and in the best

must

Interest

Continued from page 17

future

of, the people of the State of

New

have

at
.

Savings

their

of

ests

to be

me

worthy of special consideration

imper¬

the

the best arrangement for

us

service

re¬

been

some

most

recent

give

generalities, let me illus¬
by indicating some specific

problems which

the

years,

to

a
view ' of
deciding what
types and numbers of banks will

marks to
trate

In

to

not

look

we

with

Banking in New York bom
A Supervisor's Viewpoint
ing the economic problems which

that

29

v

AMERICAN

CANCER SOCtETl

\

t

The Commercial and Financial Chronicle
30

swing

omy

in the

the

credit

We were engaged
When
things are going down, then in a very vigorous compe¬
tition in the sale of automobiles.
they tend to get awfully Ijlue.
"I
believe
we
were
se 11 i n g
They get just as blue as can be,
instalment credit terms more than
and the fellow whose responsibil¬
automobiles, if I may be so crude
ity it is to pretend that he knowsas
to- raise
that pcfint before a
everything about
the economy,
which is my present line of work, group of bankers.
Fortunately,
we
haven't had
has to keep his chin up and, even
that in this recovery. If that is
though people won't believe him,
sometimes has to say, "Now, look, coming, it is ahead. We have not,
as

And the fact of the matter

not

bad

as

mobile

probably isn't as bad as people

to

What

Still,

would say,

few

a

not

are

tions

are

large

complex

and

like

economy

But, in general, it is fair and
say that we have fully

ours.

correct to

recovered.

into

broken

have

than

Mops-

that,

high

new

economic

growth

Thursday, July 16, 1959

.

that, I don't think
one can say that we have experi¬
enced very much more than the
normal
recovery
from recession
of

vigorous

a

such

kind

of

economy

ours.

as

If you look closely at the num¬

bers,

as

I like to put it,

find

that

forward
'54-'55

this

at

the

going

is

recovery

about

will

you

rate

the

of

appreciably
faster. And certainly it is not, as
it was very fashionable to say only
a couple of months ago, going ap¬
preciably slower.
not

recovery,

than

the

Let

add

me

weeks ago,
and

not

half

a

mood

that
more

people

ago,

believe

to

in

were

that

I recall that

resolution

a

the

In

other

hand,

was

pre¬

sented to the

that

years,

We

will

will,
it

over

for

in these

serious

so

circumstances

that

at

the

were

time,

as

country. Let

things. Failure is not

don't Know what happened to

suggestion.
It
hasn't
been
heard of for quite a few weeks.
And soopinion shifts in our coun¬
try!
But

there

are

some

genuinely

interesting things about the
present

interesting

one

it

compare
me

this

movement

compared
will

just

with
is

at

with

at

least

If

you

'54-'55—and

the

only

which

let

that

I

recovery
it can be

all

usefully—you
measured by
production, em¬

that,
things as

ployment,
retail

feature.

find

such

has

parenthetically

say

think

It

recovery.

while,

personal

lagged
but

that

our

in

income

and

a

little
as

bit

for

measured

a

by

the economic signs,

creating

these

the

There

we

per¬

what

call

I

formula.

that.

the

We

"boom

must

second

thing

and

not

ourselves in that.
The

This

we

is

bust"

Indulge
;

are

ourselves
world that
to

keep

and
we

our

the

to
not

own

rest

of

only know how

order, but that we have the
courage and the good sense to do it.

or indicators,
Nothing could be more impor¬
something of what tant. Not so long ago our friends
lies ahead, it is significantly bet¬
from around the world were com-,
ter and more promising.
ing here to tell us that we were
I would add, also, that we are
the world's banker, and that we
having
a
very
good
recovery fhad to learn to be a good banker.

that'

suggest

without the benefit of forces such

those

which, in 1955, were so
strong as to be genuinely trouble¬
some.
Many recall our problems
as




In

those

days,
being
a
good
was mainly a
question of
promoting investment abroad.
banker

This continues to be

an

impor¬

have

only

I

because

far

somebody is trying to
path between right and
This, I think, is very ill-

a

wrong.

What

advised.
dom

aging

is

free¬

right in

man¬

need

we

what

do

to

is

Federal

our

privilege to follow
is

somewhere

debt,

not

a

the

those

only

granted in

industry,
and,
ulti¬
the creation of jobs.
I
believe
that - ultimately
the
solution to this problem must be
found in a better public under¬

profits
mately,

policy that
right and

a

1959—are

in

lower than

issue

find

is

that

prices

slightly
1956
and 1957, and I would remind you
that in
those years prices were
rising at the rate of about 3% a
year.
In other words, costs are
now rising
at a rate not unlike
that which, in earlier periods, re¬
sulted either in price increases, or
in
a
substantial squeeze on the

I

member of the clan
capable. I get the feel¬

between

wrong.

Finally, there are some other
things, apart from
Federal fi¬
nances,
that have an important
bearing on inflation. In the last
year
the
American public has

of

on

standing. And this is where peo¬
ple like members of the bank
fraternity come into the picture.
all

You

work

must

hard

im¬

to

increases

tween

in

costs

and

prices, and particularly
in understanding the relationship
between labor
costs and prices.
Perhaps we nWe achieved a bet¬
ter

Nwish

But

connection

this

in

that

the

the

on

Continued

a

in¬

stable

the prospects for
im¬
very
bright, in¬

economic growth and

further

provement

are

deed.

hand, and the

from first

had

of keeping prices?
increase, but if we
avoiding inflationary

in

price increases,

Steelworkers

the
one

have

We

will

succeed

currently, of course,
all of us, watching very closely
what is going on in the negotia¬
between

solu-

difficulty

stable

are

Union,

a

problem

price level for about a year now.We are entering a period in which

Steel Wage Dispute

tions

find

inflation

the framework of free

stitutions.

vorable.

We

will

we

the

to

within

fa¬

more

believe

tion

the trends

were

which is, of course,;
want to solve it.
j
"

institutions,

.

of

are

you

the way we
I

inflation

for

make

and

costs

understanding of these rela¬

tionships.

that

forces

in

creases

public understanding of the

prove

-

page

Implications for the U. S.
{Resulting from Gold Outflow

days.
the

We will know
budget is

1960

balanced

out, and I
effort that

put into it we are putting

because

as

this

balanc^

a

the

is

only

is
in
wages,
when the 1953
rates
were
$2
an
hour in this
country
and
50c
in
Germany.
Moreover, though there is diffi¬
culty in getting exactly compa¬
rable series, there are indications
that steel prices in this county
German

risen

have

than

more

particularly
Japanese,
probably

abroad,
British

those

than
than

more
more

possibly more than
and
Belgium.
On the

and

widely

is

flation

recognized

as

sur¬

happened to our balance of pay¬

case

ments,

putting dollars ahead of people.

causes

period of economic
pansion. This is the best and
est way to make progress in

icy for

a

This is not

nomic welfare.
of

a

ex¬

list

of

some

lesser

the

abroad

vestment

of

excess

our

net

export surplus

and services.
For the
nine years from 1950 to 1958, in¬
clusive, and excluding military
supplies and services transferred
abroad under grants, the annual
of

goods

average

export

surplus

of

and services has amounted

goods
to $2.7

billion, against which there have
been "unilateral transfers, largely

governmental grants other than
military, of $2.7 billion, a private
capital outflow of $1.8 billion and
a governmental capital outfknv of
$0.4 billion.
The result has»been,
ignoring errors in estimating, that
foreigners have added to thei-r
gold at the rate of $400 million
and to their balances at $1.3 bil¬
lion

to

Which have contributed

grants and private insubstantially in

ernmental
•

annually.
have

Changes

occurred

in the

only constructive way
to help people. By keeping our finaneial house-in- order, we build
confidence.
And
confidence,
in

this result, and

finally, before go¬
ing on to discuss their implica¬
tions for policy,
underlying changes in the posi¬

proportions In which foreigners
have acquired dollar balances and

the

tion.

gold, which amounted to $2.3 bil¬
lion for the year. But this did not
reflect any loss of confidence in
the dollar by foreigners, whether

This is the

•

German

to

billion has been the result of gov—:

earnings
since
1953
than a 40%
increase

hourly
larger

present short-term
foreigners to $16.6

our

liabilities

rope—a

eco¬

and constructive fiscal pol¬

brought

has been higher than in Eu¬
20% rise in United States

try

largely wrong and entir.ely over¬
simplified.
Let me first review what has

proper

end,

is

progress

in

the key to economic
a free society.

Gold Outflow Goes Way Back

Discusses Inflation
As

let

to

me

the
say

problem ofv<inflation,
a word or two about

feel

I

sure

that

a

substantial

part of the problem of holding our

price level reasonably stable is to
be found
we

in the

handle

our

is

gold outflows of 1958 and
of 1959 come on top of
acquisition by for¬

spring

substantial

States

which

manner

in which

inaccurate "to

finances.

one

partly a matter of spending.
And it is partly a matter of the
way we manage our national debt.
We have made some proposals re¬
cently for changes in the laws af¬
fecting the way we manage our
public debt,
I gather that on

goes

back, with in¬

terruptions on such occasions as
Suez, all the way to 1950. It is

Federal

This is partly a matter of taxation.
It

The
the
%a

eigners of balances in the United

that.

Federal finances

in

would

Irish—and

has turned adverse because of in¬

to

the

I

the

ing that in seeking to compromise
this

affecting
rather

our economy

distinct impression that the wage
increases being given nowadays—
in the second half of 1958 and so

a

—would be

in

and

ominous.

whole, however, the view that the
United States balance of payments

going

to have to do is to demonstrate

which

freely

myself

.of what is hap¬

."As I read the numbers, I get

balance—handsome

certain

afford

In¬

the

is—but

are

cannot

and

accomplishment of that
goal.
And let me take this oc¬
casion to say that this is not be¬
cause of any simple devotion to a

these

We

be

to

can

into

addi¬

things — we are going to
have to avoid indulging ourselves
in
great, surges of exuheranee

60

whether

tell you that every

can

goal.

are

we

reduction.

about

going

things I feel
going to have to do
if
we
are
going to succeed in
meeting
this
really very great
challenge. In the first place—and
I
am
just
going
to
mention
sure

speak ^so
am

wagfes

is the kind of colossal

only

thought

right

lose sight

going on

and nar¬

•

of

nonsense

deal,
anything

of

sure it can be done,
have made a good deal of

we

then

traditional free institutions.

is

That

as

sales, it is going ahead at
about the same rate, after

having

of

can't think

progress in that direction.The issue will be decided with¬

missible. Our job is to see that we
in

\

Now this

good

a

deed, I feel
and

me

succeed

'between

path

row

wrong."

Budget

Balanced

z

And I think it can be done.

tional jobs within the framework

I

of

saddens~me

form and

figure and what

one

our

seek the straignt

long

within the not too dis¬
future, -nf- significant tax re¬

tant

you

posal.
this

be

can

than
a
reliably
balanced
that would hold out the

try

to

viewed by the author of the pro¬
'

books.

our

budget

that

if

old Irish saying that "one

an

should

that would be better for our coun¬

say

ployment,

on

of

get the right laws on

reduction

and

because I

that
we
hgve
long since
passed the point wherd we can fail

Congress for a rather
fancy commission to study unem¬

question

a

have

we

do not

That

jobs a year,
over
the next

moment,

a

that
for

means

primarily

Issues

1,500,000

average,

from

to

pening elsewhere in the economy.
The fact is that there is a lot else

postponed.

the

need

Narrow

and

on

books, the point at which we
enjoy the benefits of tax re¬

can

decade.

Reflect

is

laws

we

form

It

on

estimated

is

it

rate.

about
the

on

observation

more

prospect,
ten

next

not

very

She called her b,ook "The

a

matters. Don't forget
ability to control expend¬

our

our

labor force will grow at about

add

recovery

lagging rather badly. Indeed,

was

the

to the

year

one

itures

num¬

jobs.

for

one

expenditures, it is, go¬

long while be¬
get to that point.

we

that

recently that has been

but

twice

only a few
than a month

bit from

Federal

increase

the

over

budgetary

average.

our

Recalls Alarmists

looking

or
a

have

we

Just

force.

the

in

incentive-increas¬

enjoy

can

fore

people who are either em¬

varies

next,

labor

our

steps before

necessary

get, which is to the point where

If

is the increase

ployed

the

to

year

every

are

ing to be quite

My reason for believing this is
simple one. At the present
time, we add about 800,000 people

ber of

a

careful, in focusing
attention on a specific ls^ue,
be

must

we

by-an Irish girl.
smart girl.
Straight
Path," a title taken

be

must

but

well,

very

our

I

read last summer,

She

other

the

on

all

is

the framework of democratic free

of

very

That

novel

a

This

in¬

than

Complicated Problems Ahead

a

of

get

we

ing tax reform and reduction. If
we do not exercise greater control

ten years.

last

but there
that have

steps

get to where we all want,

can

we

in

been

have

they

greater

But for all of

tax

the .title

of

little

companies,

hand.

prices.
To the extent
successful in doing
that, you will help solve the in¬
flation problem without imparing

to

I

ahead

see

can

two

before

taken

be

These

next ten years

resumed.

a

.

there: achieved a much better unders¬
we have to bring the
budget into -tanding, I think, of the relation¬
some
kind
of
balance, and, in ship between Federal finances and
times of prosperity, we have to inflation, but I am not sure that
equal progress has been made in
reach a position of reliable sur¬
understanding the relationship be¬
plus.

of our economy in the
will be very much

problems

been

has

we

reduction,

least

at

are

to

enough to know that the

clearly

ground, and we can- rightfully say
that

believe

I

but

we

and

reform

having to do
with the longer-term outlook. It
is never easy to see far ahead in
our
kind of an economy, anpl I
don't want to pretend that l ean do
so' with any feeling of confidence,

peaks, but such excep¬
characteristic of a very

previous

observation

another

is

incentive-increasing

call

to

would like to make,

the

yet quite back to

as

I

we

There

Fed¬

about

I share with every¬

body the wish to reach the point
at which we can have what I like

than

outlook

this subject just

observation

eral finances.

powerful
sustain
the

and

1
on

am

more

one

1955.

figures, I guess, to
show that in certain respects we
cite

*

While I

substantially dif¬

a

situation

pier

recovered. I could

have fully

We

is

more

deed.

and, we will all agree; hap¬

ferent

essentially truthful statement.

good

a

things, when it -would be a
popular to say "yes." But
penalties for not running our
affairs well are very serious, in¬

present high level of activity well
into
the
future, easily
through
I960 and
well into 1.961. This, I

modest, but I think

a

in

the

are

could

that

restraint

require

many

lot

significance of

there

that

is

bank right—it

things. It will require dis¬
cipline in a good many things. It
will require saying "No" to a good

year

such

you

to run the

means

will

the bank
people krfow what

going to run

are

many

very

a

mean?

things

these

do

forces

is doing very

our economy

well. That is

it

Economic Outlook

would say that the
them

Doipg Very Well

an

as

Happy About

slow people's thinking
up
just a bit. In an expansion
period, the chances are that things
are not going quite as swimmingly
as people think they are.
think,

is

was

we have
had no
occurred in 1955.

but

surge

things

it

than

better

ago,

times, like the present,
seem
to be going
swimmingly, it is a good thing, I
At other

when

which

business,

much

think it is.

we

to

right—and

it yet. There has been a sig¬
nificant improvement in the auto¬

is that

is

really

if

had

that!"

it

do that, the going
wiil be very rough, indeed.
It doesn't need to be rough, but
ability

our

left.

right and

warrant.

going to be
bankers for the world, we must
demonstrate that we know how to
run
the bank in every respect.
And if we ever get to the point
where, there is any question about
that if we are

clearer

being extended

was

being sought.

function of our
but nowadays — and I
think it is worthwhile to reflect
over
this
fact—it is
becoming

of 1955 when con¬

summer

sumer

bit more than bare
economy
will

a

about

facts

these

economy,

The Nations Economy:
Now and Later

steel

proposals a compromise is
This reminds me a

tant and. necessary

Continued, from first page

it

.

(238)

in

item

ments

has

say

the

th^t change in
balance

brought

of pay¬

about

the

change in another: all the items
are
interdependent and mutually
determine

one

another.

But

tial

foreign
or

governmental

low

balances

in

money

these

has

billion
shorttightened in

eigners in fact rose by $1
during the year.
And as
term

up

which

1958,

high.

1959,

billion

authorities

and working
In consequence,
new
claims on the dollar were
converted into gold.
But foreign
balances were not drawn down:
United
States liabilities to for¬
were

build

$12

of

speculators in foreign banking
Short-term interest rates

foreign acquisition of approx¬

imately

outflow

the

centers.

loosely speaking, one can say that
the

in

increase

While

rates

deposits

continue

to

at-a faster rate.
the

United

States

has

1
'

Volume

Number

190

5864

.

.

.

The*Commercial and Financial Chronicle
(239)

been losing gold and dollars then
for 9V2 years, it is important to
observe
that
between
1957
and
there

1958

has

been

of any amount of long-term
lending or investment which the
German economy has been will¬

chandise. This

ing to undertake) with the result

from

excess

sharp
change. Foreigners lost net gold
and dollars by $200 million in 1957
and
gained $3.4 billion in 1958.
The heavy losses by the United

dollars.

States in 1958 have continued into

and

1959,

a

exports declined during
quarter from the 1958
level, and imports rose even more.
the

as

first

Underlying
these
short-run
changes, and hidden by the aver¬
age
figures cited, have been a
steady rise in United States mili¬
tary expenditure -abroad, a sharp
upward
States

private

19o5, and

c

capital.

fu.
the

p

of

since

increased outflow of

an

Exaggerating
Some

United

investment

governmental

■

of

movement

Short-run
u

Changes

a

the

inordinately large
the

of

export

as

result

a

substantial

of

quanti¬

ties of oil to Europe at high prices
because of Suez.
Another
the

last

which

important influence of
few

months,

cannot

be

but

measured

one
accu¬

rately, is the accumulation of steel
inventories against the possibility
of

steel

a

strike

beginning Tues.,

July 14. European producers state
that orders from the United States
have tripled currently over nor¬
mal

levels.

Some

chases

intended

have

fact

of

in

these

for

been

pur¬

inventory
with

consumed

the upturn of business this
spring,
but some of the imports of the last

few

months

the

future.

ventory

from

borrowed

are

In

1936

and

accumulation

1949

in¬

raised

the

levels of imports above those that
could

be

sustained, and narrowed
the current-account
surplus below
its long-term level.
That uncer¬
tain proportion of present
imports

which represents accretions to in¬
ventories may

Germany piles

gold

up

and

Ad hoc measures of lend¬

ing to the International
Reconstruction

and

Bank

for

Development,

governmental
financing of
long-term exports have been used,

,

,

hpfnrp

A
before 1 Qhfl noreicfo
1950, persists. A nlrmrfn i
change in
the German international
position

is

Y-i

expected

the

as

country

takes

larger share in European de¬
fense, but up to now, taxation for

a

defense
tures

has

outstripped expenditreasury

and

accumulated

surpluses have been the domestic
counterpart of the gain of foreign-

exchange reservesA final small contributing force
has

been

interest

the

recent

the

on

part

increase

in

of American

investors in

foreign securities.
movement, which is one as¬
pect of the greater awareness of
foreign opportunities of which I
.

.

.

This

The

of

reversal

exports,

of

the

the

burst

Suez

accumulation

that

mies

foreign-exchange

re¬

fluctuate inversely with in¬

ventories of

internationally traded
That steel has become an

goods.

internationally traded commodity
between

Europe and the United
States is ascribable to the fact that

commodity prices have risen much
more
than
ocean
freight
rates
since 1939.

This has expanded the
markets
for
many

international

ance

of payments surplus and the
interest in Royal Dutch, Le¬

new

Brothers,

ver
on

KLM

and* Phillips
part of American investors
of small moment compared to

the

are

two basic

position
the

are

changes in the American
since

about

1953.

These

widening of the horizon of

bulky products

—

oil, coal and

the

to

sumers

world

con-

and

scene;

?

narrowing of the technological gap between the United States
and the rest of the world.
These
factors

related.

are

creased

portunities

has

But

the

in¬

foreign

of

awareness

op-

lar,

have

tion

exposed

United States
international competi-

to

prices
ti An

An

txtiHay*

r\

on

tvinnt

wider front.

a

Lag in European
'

expanded

United

abroad, and im¬
ports, while the technological gain
in European and Japanese
capac¬
ity has worked in this same direc¬
tion

further

cutting down United
exports in these and third

States

markets,

further

A

small

transitory

in¬

fluence has been the slight lag

of

recovery in Europe behind that
in the United States.
The Euro¬

recession did not go so deep
ours, but the low in Octo-

pean

did

as

ber,

1958

after

came

that

in

this

country, which was in April, 1958.
By the first quarter of 1959, the
momentum
in

of

upturn

the United

this,

and

rope,
~4

1

States

was

than

even

in

A

"L1

Eu-

from

apart

4

steel

higher

J

inventories, meant that

our

imports expanded faster than

Eu-

As recoyery levels off in
United States and continues

upward in Europe, this effect will
itself.
The" European re-

reverse

cession
for

particularly

was

serious
coal exports,
though these may

not

to previous levels be-

recover

of the

cause

continued

Europe of oil and

inroads

in

natural gas. This

°

of

1959

level

of

$125

million

1958

three-eighths

and

T

1

a. t

-

below

A

small

States

"

accounted

for

and

more

manufacturing
companies
previously thought of

which

had

themselves

limited to this

as

coun-

try, except perhaps for sales, have
begun to scan a wider area. A
typical example would be the mo

tion-picture industry which got
into foreign production largely in
an

effort

change.

to

It

use

up

found

blocked

that

for

ex-

Business

-

machine

tariff

j

States
f*

and
i

foreign

supplied
i

.

market from abroad.

national

a

foreign plants
those
in
the

outproduce

United
l

escape

that

found

manufacturer

companies

m

this

•

-»

.

,

taken, by an

Truly interdomiciled

in

the

United

gold

and

dollars

component could be most cheaply

the

United

regulating

est

States

made.

ments,

its
balance
of
paydifficulties of an opposite

sort

those

now

The German export

surplus has continuously been

have

made

for

the

their

implications for United
!•
£>
domestic Snd for¬
"i

•

•

ji

_

States policies,

ji

_

v

eign.
In the first

to

place, it is important

emphasize

has

taken

that 'much

place

of

far

what

is

highly
superficial re¬

so

satisfactory.

the

national financial and
sition in much better

_

European

Common

Market,
now under way, but partly simply
as a reaction to profitable business
opportunities wherever they take

place.

Manufacturing
increasingly substitute
and
may
give rise,
foreign mining and

abroad will
for exports^
along with

The

distribution

world

reserves

dollar

of

places

gold

the

and

inter¬

trading po¬
balance; and
the
underlying changes in world
reconstruction, United States interest in foreign production, and
sharing of technological leadership in Europe make it less likely
that serious imbalances will occur
vis-a-vis Europe and Japan. (The
position is not so satisfactory with

increased

imports.
investment

effects

earnings

its

on

international

nomic position.
More

Imports Expected

Economists have long been pre¬
dicting an increase in the percent¬

of

age

national

income

spent

imports from the 3 xk %
which

it

had

1950's from
last

fallen

7%

on

figure to
early

in

the

at the end of

The expected force
increased
need
to
go

the

abroad for

the

raw

American

materials.

consumer

But

if

becomes

re¬

United

in

In

the

United

particular,

neg¬

There

is

need

no

to

contem¬

plate devaluation of the dollar,
or, along with other countries,
an increase in the
price of gold;
The position is not so serious
me
tharthTunUed
united

States
btates

,

aid,

Japan;

rope and

While

it

is

important

to

re¬

closing of the technological

strain inflation for its

own

between the rest of the world
and
the United States also pro¬

and for the balance of

fundamental

a

80

change. For
of

much

years,

the

buoyancy

in American exports
technological innova¬
machinery
electrical equipment in
the

due

first

to

decade
and

of

the

century, auto¬

radio

in

the

1920's,

high speed printing and construction machinery in the 1930's and

1940's,

chemical

or

specialties,

.

problem
funds

wish
to
withdraw
them.
These have $8 billion, and even if
the present rate of loss were to
continue for three

or

more

years,

I do not think it

as

could

be

will, this drain
Foreign central

met.

banks which

balances in this

own

country are presumably immune
from panic. They have a
respon¬
sibility to world financial stabil¬

ity as well as to their national in¬
terest, and they can hardly fail to
bear in mind the action taken
by
the

United

ures

States

ends

of

tion

and

in

such

meas¬

Marshall

the

as

Plan

to the

international

stability.

reconstruc¬

Nevertheless,
heavily
sterling in

the Netherlands Bank lost
in the devaluation of

1931; and there were other central
banks
which speculated
against
gold in the "gold scare" of April,
1937.

Suggests Informal Treasury
Guarantee
No

public
discussions
should
place on these issues, but I

take

that

assume

the

Federal

Reserve

System has reassured itself of the

icies

which

inhibit

would

expansion
employment.

eco-

create

or

un¬

Much

present weakness
self-correcting. In¬
imports represent inventory accumulations, they are boras

from

the

future

of reserves

woiild

into

gold, but it

undesirable for them

seem

to go

far suddenly to convert

isting

bailees. To limit their risk,

would

I

the

think

it

ex¬

appropriate for

Treasury to issue them infor-

guarantees against

any loss from devaluation. These
would ultimately have to be made

good

by

Congressional

action,

which could not be guaranteed in
advance and should not be the

subject of

long debate

a

European

now.

Assumption

of

Foreign Aid
Over the longer run, the distri-

bution of the burdens of the lead-

ership between the United States
the

have to shift. European coun¬
are
beginning to talk about

tries

of the dollar is

rowed

de-

may

the

of

central-bank

and

,

Self-Correcting Factors

sofar

its

for them to convert further addi¬

position, there is no need to
adopt strongly deflationary polnomic

of

sake

whether in^arm

mobiles

no

rather than gross,
any bank.
There is no
if
private
owners
of

does

nor

payments

last

,

Thtuld ™lly exchange
snoulci

beyond attempting to redistrib¬
ute a part of the burden to Eu¬

duces

makes

liabilities,

tions

atively:

alter its position on foreign

the

It

Positors. It is entirely appropriate

policies

terested in

gap

States.

to net the $16 billion of for-

mental

States interest.

cheaper

The

the

eign funds in this country against
the $20 billion gold stock. No other
country calculates its reserves net

steadiness

more

cosmopolitan, and more in¬
foreign goods, whether
or different, this increase
in the propensity to import
may
work out in considerable degree
through manufactures,

a

sense

adjustment needed is in process,
it is important not to
push the
panic button, or to alter funda-

the

century.

was

little danger from
withdrawal of foreign funds in

eco¬

But while the

attractive.

more

is/very

There

of

increasing number of
companies, partly as a* response to
narticular devel'onmpnt<?
surh
a<?

try.
Foreign consumers bought
them eagerly, and were prepared
to spend in excess of their income.
A considerable part of the
called
dollar shortage seems

will

and

rest

of

the

Free

World

embarking on programs of aid to
underdeveloped countries. So long
United

as

ment

States

aid

substantially

current-account

and

invest¬

the'

exceed

The increase in

consumer

inter¬

in

foreign goods is a familiar
story, best illustrated by the success

of

the

automobile.

sports
It

is

car

and

sometimes

small
sug-

in, gested that foreign goods have

a

Balance

-

o

buoyancy in Europe

f

-

payments

surplus

this

of

is leading to

continued relaxation of import re¬
strictions
against
United
States
manufactures. Continued recovery

in Europe will lift
available

Moreover,
the

on

a

United

for

sale

States

here.

longer-run basis,

"natural"

country, and the current-account
surplus of European countries is
larger than their investment and
aid, there is a case for shifting the
present distribution of aid before

undertaking

enlargement

any

of

holds true in the mil¬

same

non-European parts of the world,
where this country has been bear¬

have been due to continuous inno-

remedy of higher
wages and costs in Europe can be
relied upon to work in the right

vation

direction.

be

time

tempting to construct facilities in

of

piling

Europe

for the

so-

the

on

part

of

to

American

industry.
As
foreign
countries
learned to imitate one product, a
new technological gap was opened
up in another,

obtain

American

are

investors

at¬

finding it difficult to

labor

in

the

best

locations
1nnr,+in"°

in the Low

Countries, France and
Employment is full, and
expansion can only come about
with
higher wages designed to
Britain.

some

specialties
mentioned,
certain
of

favored

locations

sels and

Antwerp!

fields—chemical

just

as

move workers from, say, Southern
France to Paris (where housing is
lacking), or from the textile re¬
gions of western Belgium to the

branches

electronic

putation machinery.
fields '

it

has

been

and

com¬

But in other

closed

or

even

_

of




i

„

part

^his country is

•

foreign locations were Closing of the Technological Gap
cheaper than Hollywood, and that
This
technological gap is
no
United
States and foreign audilonger so one-sidedly in favor of
ences
liked
fdreign locales.
A the United States. It continues in
purposes

since 1950 is ascribable to the dif¬
ficulties
faced
by Germany
in

to

<•••._

maqy

began to contemplate where, in the whole
world, this? or that transportable

experiencing.

a world view is expanding direct
.9
foreign investment on the one
hand, and changing the relation¬
ship between national income and
imports on the other. Direct for¬
eign investment is being underr

dividends

as

ments

recent loss of gold and dollars to
foreigners. Let me now consider

the

availability of funds for foreign
investment, and make the
remission of foreign earnings home
direct

itary field, Ipoth in NATO and in

more

But

loss

of

a fundamental change in
long-term p balance of pay¬
position of
the
United
States, on top of the short-run

the

Tight

down

cut

it. The

companies.

total

loss

portend

factors which

widening of the-American

producers—

balances.

also

goods

steel

the

of

foreign

York

may

exports and limit the supplies of

of

exports.

and

money

number, and in particular oil and

_

the

States

est''in "New

decline.

could

ill!

producer horizon to the world

level, and the closing of the tech¬
nological gap between the United

phamaceuticals, and air condition¬
ing equipment, currently. Inven¬
abroad or to acquire production
tions
occurred
everywhere, but
there.
Depletion of minerals and many of them, like radio and autimber turned consumers of raw
uomobiles^. were brought to quanmaterials
abroad
in
increasing tity production first in this coun-

of
cotton
by the United States,
These fell in the first thlree months
^

va¬

consumer and business horizon to

and

Since

going abroad to

(f»1 OC

commoner

and

tr-

The

tions

COuntry has always had an
selling in foreign marthe' war,
however,
more
and
more
companies and
consumers have become
aware, in
many cases for the first time, of
the opportunities that exist to buy

interest in

recession may also be
part of the
explanation of the decline in sales

1 n 7Z f\

sturdy

*

ropean.

the

or

riety.

was

U. S. Industry Discovers Europe

kets.

Recovery

tocratic

States investment

steel.

This trend, and the reduc¬
tion in tariffs to which it is simi-

between particular products and
particular images, whether of aris¬

inventories, the German bal-

United States producers and

serves

with ill grace

comes

industry geared through ad¬
vertising to cultivate associations

of

steel

the

econo-

mer¬

—

phenomenon

European

worthy than American

drilling, to
Earnings on
shall speak presently, has
been foreign
will partly
partly offset by the decline in the displace lost-exports and offset regard to the producers of
priUnited States bond market in re- increased
imports.
Since
trade mary
products.)
The initial
cent months, cutting off what
apfigures are published monthly on gloomy forebodings about the dolpeared in 1958 to be a revival of a fairly up-to-date
basis, while lar and the speculative attacks on
interest in p—~ for
foreign sale of dollar figures
earnings on £—it from Zurich, Frankfurt and
foreign
bonds in this market.
Compared investments are estimated only Hamburg, have given way to a
to foreign transactions in United
quarterly and with a long delay, realistic appraisal of the position
States securities, which have been
there is the possibility that the in most quarters.
A mild readsubstantial since the 1920's, United
public will pay undue attention justment is required .in the posiStates investor interest in
foreign to the changes in merchandise tion of the dollar, and the United
securities is limited.
But it has trade to the neglect of the par- States can no longer order its
polbeen growing,—
tially -offsetting gains in foreign icies in complete disregard of their

be regarded as ex¬
changed for gold. It is a common
in

less

•

Problem snmlar to that
™ cour?tfy experienced

*

u

■

.

vT-

u

short-run

changes
position.
In the
first place, the 1957 exports were
exaggerate

that

snob appeal, as if this made them

31

opened

in reverse. In heavy
electrical equipment, airplane en¬
gines, automobile design, Euro¬
pean
innovation proceeds faster
up

than

American, and United States
producers seem ponderous—slow
to make decisions, and far from
daring—in their attempts at imi¬
tation. Japanese imitation of the
transistor radio, on the other hand,

was

of

These

lightning speed.
two

factors—the

ing of the United States

widen¬

consumer

between

Brus¬

In the last sev-

eral years, much of the increase in
income from increased
cal

has

t^hnologi-

efficiency, on the Contine
,
gone into further investment.

But

tight employment conditions,
except
perhaps
in
Italy, s,eem
likely to correct this in favor of
consumption.
Another change

ing

a
disproportionate
defense costs.
It is
to

of

the movement

reverse

financial

responsibility
foreign policies of the free

11
1
world largely on the United States.

The United States must continue

to

exercise

leadership in foreign
not urging a with¬
isolationism,-nor an at¬
tack
on
foreign aid._ Moreover,
we can adopt any level of foreign
affairs.

I

am

drawal to

aid

need

we

for

the

sake

of

for¬

eign policy, so long as we recog¬
nize the implications
of such a
level

for

ture.-

It

taxes
is

or

not

other

true

expendi¬
foreign

that

01. any other policy, will make
this pnnntrv bankrupt. A narrower
country hnnkrunt A narrower
international margin means only
that

we

ends and
reserves.

can

no

longer

will

the

pay for them out of our
If we will the ends, we

must likewise will the

which will

share

beginning_ to

means.

au¬

tomatically redress the position
is the higher interest rates. These
have already cut down the float¬
ing of new bonds for foreign ac¬
count, and renewed foreign inter-

Wage Implications
There
tion

of

is

our

an

important implica¬

new

international po-

Continued

on

page

32

Financial Chronicle

The Commercial and

3r:

.

.

.

Thursday, July 16, 1959

(240)

Continued

31

Continued from page

from

11 totaled 25,450 units, 7%

week ended July

4

page

greater than earlier

After reaching the highest first-half truck

week's 23,789.

volume

eight years (656,934), truck making will taper slightly during
July because of model changeovers and vacations. Three manu¬
facturers currently are affected by vacations—International Har¬
in

Implications for U. S«
Resulting from the

The Stale of Trade and
week's

this

issue.

Gold Outflow

Steel

sition for wages and

price policy.

Competition iri transport and a
low tariff policy imply that there
are
limits to which a particular
industry can raise wages and
prices.
In steel-, this limit has
pretty well been reached under
conditions where Europe has ex¬
cess

to

does not

But this

capacity..

lead

has a responsibility for
maintaining investment in costreducing equipment, and innova-^
tion in new products.
I hesitate
to speak to the complex steel situ¬
ation because of lack of informa¬
generally speaking, it
inappropriate for manage¬
blame imports on wages,
labor to ascribe them to admin¬
But

seems

istered pricing or a loss of inno-

both

be true, but to focus attention
"blame" for
imports is

the

on

if

likely to lead quickly to the rem¬
edy of higher tariffs or quotas.
The appropriate answer is rather
more productivity, including new
cost reductions
and new useful

inventories

first

want all

policy, and there are a few steps
which we ought to take in the
more

of

sharing with Eu¬

equitable

rope

burdens

the

defense

military

of

aid for economic de¬

and

hurry to

velopment.

There is

take

along these lines, but

action

no

prudent administration would
not put them off.
At the same
time, the international position of
,

the United States is

no

take1 any action which
is important in its own right—ac¬
tion to correct internal inequities,
to ensure growth or limit unem¬
ployment.
It means rather that
in taking such action we must now

failing to

for the first time bear in mind the

abroad,

position

With

vacation

plant
shutdowns hitting tubular products and specialties, a drop

and 1'lat-rolled • will not come before September or
The feeling is customers will take steel now

heavy steel
the fourth

quarter.

extension to take

complementary
balance

steps to protect
payments at the

of

time that

things

needed

country

as a

A
of

to

nation.

The

made

were

for

Company of Chi¬
Incorporated,
231
South
La Salle Street, Chicago, has be¬
come
the Chicago correspondent
of Estabrook & Co., 40 Wall
Street,

not have

do

York

City.

Steel
are

stocks

Avenue, New York City. Emanuel
Sella is proprietor.

steel strike,

Elliot Evans Co. Formed
BEVERLY
Evans

ties

■South
-

HILLS, Cal.—Elliot
engaging in a securi¬

is

business

firm

from

Beverly
of

name

offices

at

400

under

Drive
Elliot

the

Evans

'

pany.

Com¬
•

'

Upham
New

BEACH, Fla.

&

York

announced

at

Co.,

1081

Stock
the

Kane

Bay Harbor
which

will

Harris,
of

the

Exchange,

has

opening in August
Concourse

area

be

—

members

in

the

of Miami Beach,
the

firm's

branch office operation.




have

than

nmore

required

for

estimated

today,

at

than

more

21

million

tons,

the start of the 1956

"Steel's"

price composite last week

scrap

rose

$1.17

to

$38

ton, highest since March, despite the continued threat of
strike.

Heavy

exports

contributing

are

to

the

market

buoyancy.

37th

total of 13,124,-

Lumber

Shipments Were 5.1"% Above
July 4 Week

Production for

Lumber shipments of 471 mills

Barometer were 5.1%

ber Trade

reporting to the National Lum¬
above production for the week

In the same week new orders of these mills were

reporting mills amounted
mills, unfilled orders
were
equivalent to 18 days' production at the current rate, and
gross stocks were equivalent to 40 days' production.
For the year-to-date, shipments of reporting identical mills
were 3.7%
above production; new orders were 4.0% above pro¬

4.0% below production. Unfilled orders of
to

For reporting

of stocks.

41%

softwood

duction.

27,' production"

reporting mills was 14.4% below; shipments were 10.6% below;
new orders were 11.8%
below. Compared with the corresponding
of

production of reporting mills was 43.9% above; ship¬

week in 1958,

35.6% above; and new orders were 5.4% above.

were

Loadings 24.5% Above Corresponding 1958 Week
totaled
573,325 cars, the Association of American Railroads announced.
Loading of revenue freight for the week ended July 4
was

increase

an

of

112,980

cars

or

24.5%

above the corre¬

sponding week in 1958 or an increase of 37,991 cars or 7.1% above
the corresponding week in 1957.
Loadings in the week of July 4 were 124,308 cars, or 17.8%
below

the

preceding week.
Business Failures Dip in

Holiday Week

Commercial and industrial failures dipped to 237 in

The

Output Based

American

Iron

and

on

week, casualties- were below the 275 a year ago and the 256 in
1957.
Compared with the prewar level, business mortality was
off 13% from the 272 in the similar week of that year.

Wholesale Food Price Index Down to New Low for Year
The Wholesale Food Price Index, compiled by Dun & Bradstreet, Inc., declined fractionally this week to $6.06 on July 7, the
1956, when it stood at $6.01. The

lowest since the week of Nov. 13,

of

index

current

8.9%

earlier and

$6.06

was

down

0.3%

below last year's $6.65.

from the $6.08 a week
The previous 1959 low

$6.07 set on June 2.
Higher in wholesale price this week were wheat, barley,
coffee, and cotton seed oil. Commodities quoted lower were flour,
corn, oats, hams, bellies, lard, cocoa, eggs, steers, and hogs.
The Index represents the sum total of the price per pound of
31 raw foodstuffs and meats in general use.
It is not a cost-of-

was

.

Steel

food

82.8% of Capacity

Institute

announced

that

Its chief function is to show the general
prices at the wholesale level.

the

operating rate of the steel companies will average *145.9% of steel
capacity for the week beginning July 13, equivalent to 2,344,000
tons of ingot and steel castings- (based on average weekly pro¬
compared

as

with

an

actual rate

of

*140.2%

capacity and 2,252,000 tons

the

a week ago. | Ed. Note: A strike in
industry began Wednesday, July 15.]

steel

Actual
to

1947-49)

140.2%

147,633,670

output for the week beginning July 6, 1959 was equal
of the utilisation of the Jan. 1, 1959 annual capacity of
tons.

net

cast is 82.8%.

Estimated .percentage

•

month

for this week's fore¬

: *

p

ago

the

operating rate

;

.

Wholesale
Down

on

average

weekly production

for 1947-1949.

Auto

Model

ended

July

Commodity Price Index

11

car

production

was

restored

in

the

week

following

previous week's holiday-abbreviated
activity, "Ward's Automotive Reports" reported. In another week,

however, model changeover shutdowns will again send schedules
I
Auto output increased 15% in the latest week to an estimated

tumbling.

Wholesale Commodity Price Index, compiled
by Dun & Bradstreet, Inc., stood at 277.33 (1930-1932=100) on
July 13, compared with 278.37 a week earlier and 278.54 on the
corresponding date a year ago.
Daily

The

Saturday Holiday Curtails Retailing
of most stores on Saturday, July 4, for Inde¬
pendence Day held retail trade below the prior week, but^ it
remained moderately over the similar 1958 week. Consumers were
most interested in furniture, air conditioners, and some lines of
The

closing

were

Five-day as¬
carried out, expect at the following loca¬

Del., Studebaker in South Bend, Ind., and Cadillac in Detroit, all
to four days; and Chevrolet in Oakland, Calif., idle the
The closedowns resulted from schedule adjustments,

limited

entire week.

"Ward's"

said.

.

_

(.

^

Imperial division of Chrysler Corp. was the first producer in
the industry to conclude 1959 model assembly when its run ended

July I. According to "Ward's," more Chrysler closeouts will follow.
industry's 1959 models will be built late in August.
By mid-September every car maker will be started on 1960
model production. The 1959 run did not
get into full swing until
The last of the

Oct.

15

last year.

"Ward's

year prevailed, according to
The total dollar volume

Reports"

said

truck

programming

for

scattered reports.

of retail trade in the week ended
higher than a year ago, according to spot
estimates- collected by Dun & Bradstreet, Inc. Regional estimates
varied from the comparable 1958 levels by the following per¬
centages: East North Central +6 to +10; West North Central
+ 4 to +8; Pacific Coast +3 to +7; East South Central +2 to
+ 6;'Middle Atlantic and Mountain +1 to +5; South Atlantic and
West South Central 0 to +4; New England —3 to +1.

2 to 6%

was

.Nationwide Department Store

Sales Up

.

7% for July 4 Week
Department stores sales on a country-wide basis as taken from
the Federal Reserve Board's Index for the week ended July A,
increased 7% above the like period last year.
In the preceding
weeki for June 27, an increase of 7% was reported. Fqr the four
weeks ended July 4, a gain of 9% was registered and for Jan. 1
to June 27

a

9%

increase was noted.

to the Federal Reserve System department store
sales in New York City for the week ended July 4 showed a de¬

According

crease

week,

of 1% from that of the like period last year.

change.
cbnwprl

a
u

In the preceding

27, a 1% gain was reported. June 13 showed no
June 20 showed a 14% increase.
Four weeks ended
3% gain over 1958 Was recorded and Jan. 1 to July 4

June

July 4

„

Automoth»e

Purchases of new passenger cars were
and considerable gains over last

close to those of a week earlier,

124,806^ units from 108,397 in week ended July 4.
sembly programs

hogs, steers and
level slid somewhat in the latest

Reflecting lower prices on flour, coffee, sugar,
tin, the general commodity price
week.

July 8

Changeover Shutdowns Accelerating

passenger

trend of

Slightly From Prior Week

women's Summer apparel.

*Jndex of production is based

the holi-

"day week ended July 9 from 244 in the preceding week, reported
Dun & Bradstreet, Inc. Continuing down for the fifth consecutive

living index.
Steel

tions: Rambler in Kenosha, Wis., which worked six
days; Chevrolet
in Kansas City, Mo., %u.ick-01dsmobile-Pontiac in
Wilmington,

To Open New Fla. Branch
MIAMI

they

but inventories are in better balance than they were

Normal

S.

say

strike.

three years ago.

92.2%.

Fifth

507

no

(based on 1947-49 weekly
production) was *163.1% and production 2,620,000 tons. A year
ago the actual weekly production was placed at 1,481,000 tons, or

American Israel Co.

at

even

inventories will not
Thirty-three per cent say they
say

million under what they were at

4

some

A

offices

in perfect shape

still
though

users

their immediate needs.

American-Israel Basic Economy
Co.
is
engaging in a securities
business from

is

11%

overstocked;

many

to weather fairly severe storms.

cent of the respondents

be excessive if there
are

so

This indicates that

strike.

a

measure

their inventory affairs

per

Originally, the orders
they'd be first in line

July and August tonnage.

precautionary

a

prepared

are

Fifty-six

cago,

New

as

shipment after

they

of

Illinois

38%

that

companies took advantage of the steel contract
extension to remedy inventory shortages. Spot shortages remain,
but they're most common in specialty products..
If there is a settlement, 78% of the respondents would not
cancel orders for

12, output increased by 378 million

of the previous week's (July 4)

000,000 kwh. and showed a gain of 1,651,000,000 kwh. or 13.9% above
that of the comparable 1958 week.

metalworking

duction/of

Chicago Correspondent

revealed

weekly

metalworking

the

by

survey

13.9% Above 1958 Week„_
distributed by the electriq light

the week ended July

For

This

15. J

houses.

carry

vigorous and growing

the steel industry began Wednesday, July

last year,

than

Car

majority of metalworking companies have adequate inven¬
tories, or are confident they can get what they need from ware¬

out those
preserve
this

we

Ample and Adequate

ready for anything—a contract extension,

users are

above corresponding

better

Institute.

ments

work.

necessary paper

A

steel

the

ahead of the

strike, "Steel" magazine reported July 13. | Ed. Note:

or

strike in

a

take

In most areas, shipments

of their customers.

ran

Steel Inventories

one-sided

must

care

heavy they

so

is 49%

Compared with the previous week ended June

Age" said that reports from steel producing centers in¬
dicate the mills made good use of the two-week steel labor contract
"Iron

were

domestic car production

industry for the week ended Saturday, July 12, was
according to the Edison Electric

power

will hold back on new orders..

ordered but

gross

we

due to metalworking

letdown

operations in considered inevitable, even if plates, sheets, and
as strong as they now seem.
Some steel men now believe the "adjustment" in orders for

in

a

action,

summer

structurals remain

where this sets limits to unilateral,

same

usual

the

Bridgeport, Conn., and the
Motor Co. in Cleveland,

estimated at 13,502,000,000 kwh.,

ended July 4.

September.

possibly,

and

already 50% filled for

(4) Plate and structural schedules are

for

excuse

indicate most

customers

turnout

Electric Output

last week

with

Talks

at

3,469,534 units, 48%

Truck

(2,341,777).

the steel

A

impossible then to ignore
the international implications of
United States domestic economic

significant cancellations or deferments

they have ordered.
(3) The rate of incoming orders at one large mill
was about in line with its operating rate.

(2)

Co.,

The amount of electric energy

they in

the mills suspect, are

since the start of July.

settlement,
is

1958

estimated

an

kwh. above that

(1) There have been no

Body

divisions-of? White

Autocar

will reach

and

Most steel

Assuring Internal Growth

a

heavy, as

are

steel products are
They know there was a massive inventory buildup
half.
But, says "Iron Age," they are encouraged by

optimistic.
the

Metropolitan

and

Ohio, and Exner, Pa., respectively.
As of the week ended July 11, 1959 the

695,617 units to 466,849.

producing the large-tonnage carbon

Mills

products.

It

Note:

balance9

to

vational leadership. Either or
may

are still
uncertain how' strong their
operations are, back to normal, accord¬

these facts:

agement

or

well

And

White

Age" said the answer to the question depends on just
steel users have been able to build their inventories.

"Iron

how

The implication
wages must be geared to

productivity, and to wages and
production in other countries. In
the matter of productivity, man¬

ment

week

vester's

•

ing to "The Iron Age," national metalworkingiweekly. |Ed.
A strike in the steel industry began Wednesday, July 15. |

in

that

tion.

this

mills

market will1 be when their

the conclusion that wages,,

cannot go higher.
is

.

Industry

of the Monday, July i3,

refer., to page 45
' <r ""'

summary,

4-°/,,

inrrpaso

"

Volume 190

Number 5864

The Commercial and Financial Chronicle
"

S

(241)

*
■

•

.

,

-

'

!

•

I

tr
,

The

Indications of Current
Business

latest week

Activity

week
Latest

AMERICAN

IRON

AND

STEEL

Indicated Steel operations

INSTITUTE:

ingots

(per cent capacity)

AMERICAN

42

PETROLEUM

oil

Crude

and castings

and

gallons

Month

Week

on

output—daily average

(bbls.

Ago

in

or,

*79.5

92.5

54.9

§2,344,000

*2,252,000

2,620,000

1,481,000

6,913,775

7,025,075

3

117,936,000

(BUREAU OF MINES):
Production of primary aluminum in the
U. S.
(in short tons)—Month of March-!

27,402,000

28,682,000

1,788,000

AMERICAN IRON AND

7,032,325

7,836,000

3
3

1,761,000

6,423,685

8,204,000

Steel

7.461,000'

29,152,000
V

12,768,000

3

6,682,000

6,786,000

7,141,000

6,723,000

July

3

194,989,000

198,271,000

203,605,000

July
fuel

3

27,529,000

27,213,000

25,063,000

3

24,454,000

121,179,000

115,991,000

102,496,000

July

3

106,571,000

54,405,000

53,840,000

55,615,000

steel

for

(bbls.) at
Residual fuel oil (bbls.) at
ASSOCIATION

OF

AMERICAN

•July
CIVIL

ENGINEERING

CONSTRUCTION

2,000

573,325

4

697,633

460,345

588,643

533,797

682,624

569,430

Private

construction

Public

construction

State and

;

municipal-

Federal
COAL

OUTPUT

(U.

S. BUREAU

456,872

STORE SALES

SYSTEM—1947-49
EDISON

ELECTRIC

Electric

output

FAILURES

AVERAGE

Lead

(E.

INDUSTRIAL)

(East

St.

Aluminum

1,331,000
64,000

150

102

CIVIL

Louis)

(New

Aaa

at

York)

99.5% )

at

.

at

PRICES

*13,124,000

237

244

13,503,000

A

N

295

Group

:

6.196c

6.196c

6.196c

7

$66.41

$66.41

$66.41

Group—

Group

—

—.

—

MOODY'S BOND YIELD DAILY AVERAGES:
U. S. Government Bonds..

Average corporate

.__

Aaa

$39.17

$38.50

$2,7.50

$36.50

31.050c

31.150c

25.425c

26.700c

29.175c

23.775c

12.000c

12.000c

12.000c

11.000c

11.800c

11.800c

11.800c

11.500c

11.500c

Public

11.000c

11.000c

11.000c

24.700c

24.700c

102.875c

24.700c

104.750c

103.125c

MOODY'S

COMMODITY

INDEX

—

NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons)—

Production

(tons)

Percentage of
Unfilled

end

at

of

1949

AVERAGE

=

ACCOUNT

OF

Total

purchases

Short
Total

Other

Repairs

84.94

84.94

85.07

85.33

87.59

87.99

88.67

85.33

84.68

91.77
'

Personal loans

87.99

99.36

4.21

4.13

3.13

4.71

4.69

4.48

4.47

4.59

3.64

4.56

3.81

4.76

4.73

5.10

5.05

4.79

4.79

4.76

4.78

4.76

3.91

4.59

4.56

4.56

3.79

383.2

388.0

387.4

396.8

348.856

229,248

4.01

5.03

4

82

98

88

478,629

548,933

Without

110.63

110.58

110.34

Other

Total
Other

the

CAN

2,332,450

1,698,500

437,780

348.200

375,540

1,996,090

294,550

—.—

initiated

the

on

—

29,100

285,500

393,500

477,600

METAL

443,800

506,700

374,750

653,150

731,272

689,630

86.480

118,160

——June 19

.—

transactions for

Total

purchases..
Short sales

account

of

—-—

Gold

670,660

984,781

724.959

764,730

1,071,261

843,119

797,036

members—
June 19

sales

_.

.

3,136,410

-548,180

2,367,096

3,948,931

3,772,449

Odd-lot

—

sales

Number

Dollar

SECURITIES
dealers

by

EXCHANGE

(customers'

value

Dollar

Round-lot sales
Number
Short

sales

7 r

ROUND-LOT

SALES

EXCHANGE AND ROUND-LOT
FOR

Total

ACCOUNT

round-lot

Short
Other

$77,846,094

$85,210,523

OF

ON

378,240

448,820

396,590

6,566

N.

Y.

AVERAGE

373,480

378,240

448.820

3~9~6~590

635,080

793,420

599;580

U.

S.

DEPT.

of

of

—

BY

U.

—

S.

1910-19H

2.99

3.25

4.15

OF

100—As

—

406,857

547,326

337,564

120,482

112,660

69,183

285

—

660,361

558,337

!

FARMERS

375

110

INDEX

AGRICUL¬

Of

Mgy

15:
245

_l_————

vegetables,

2.67

679,104

DEPT.
=

4.53

June:

—

products,.

3.73

MANU-

coaches.

motor

5.91
4.33

FROM

S.—AUTOMOBILE

of vehicles

244

223

232

254

*261

*251

269
163

161

—-—■

205

205

223

-■

-

3

crops

"

210

hay_—____.—

and

253

230

fresh—
—

grains

Oil-bearing

—

230

—

.

264

<

246

\
^

1G1
222
264

225

233

217

.

200

508

*474

258

—

products
animals

335

508

—

261

*276

S.

GOVT.

Total
at

of

face

*352

126

135

*173

220

*201

$288,000,000

$288,000,000

$280,000.00C

'286,302,940

276,343,217

111,019

107,500

101,220

$'284,816,926

$286,410,441

$276,44^,438

418,452

418,814

430,998
4^0,

$284,398,474

$285,991,626

$276,013,439

4,601,535

2,008,373

3,986,560

$284,816,926
5,350,391

$286,410,441

$276,444,438

5,888,203

9,749,102

$279,466,535

$280,522,238

$266,695,336

—

l

STATUTORY DEBT
30

(000's

amount

that

LIMITATION

omitted):

may

be

outstanding

time

any

231

336

284,705,907

1—

eggs—

June

*240

338

240

Poultry and

232

—

Meat

Total

552,850

714,200

567.330

744.580

13.144,030

15,565.060

16.290,710

June 19

U.

3.98

4.39

3.92

—

Outstanding—

——June 19

—

SALES

Potatoes

389,510

—June 19

Total sales

3.08

4.05

(214)

Tobacco

(SHARES):

WHOLESALE PRICES, NEW SERIES
LABOR—(1947-49 = 100):

Teh)

'4.29

3.28

&

—

IN

public debt

gross

Guaranteed

.——

39,677

June:

2.71

Tel.

FACTORY

obligations

Treasury

sales

of

—.

—As

.June 19

25,598

36,424

OF

:

Commercial

1,167,154

STOCK

—

YIELD

Crops

Dairy

84,121

21,015

3.09

(10)

farm

128.150

2,951,774

91,499

37,519

!———_—

RECEIVED

TURE

All

135,192

2,965,289

21,262
—_

Amer.

(200)

Number

sales—

sales

328,180

91,443

STOCKS—Month

VEHICLE

PRICES

STOCK TRANSACTIONS

MEMBERS

224,308

290,623

passenger cars———,—!
Number of motor trucks
!

10.510

1,621,495

June 19'

THE

294,806

294,127

133,937

MACTURERS* ASSN.—Month

$51,551,872

373,480

dealers— Number of shares

STOCK

241,612

„

3.77

Total number

'

—June 19

—

55,345,655

2,847,718 !*i

tons)

incl.

Livestock

1,177,664

$70,834,338

—._—

Round-lot purchases by
TOTAL

1,628,061

13,985

1.477,403

.—June 19

.—

56,425,214

(125)-

(not

PLANTS

"

1,491,388

9,352

1,368,698

sales

———

short

Insurance

1,203.989

1,378,050

56,508,384

(AMERI¬

(15)

MOTOR

$55,272,322

dealers—

by

sales

Other

1,786,479

$95,625,800

—-June 19

—

;——__—

shares—Total

of

1,912,313

$103,970,503

—June 19

-

value

1,616,002

$90,392,330

-—June 19

—

Customers' other sales

45,188,167
$776,473,000

CONSTRUC¬

ounces).

COMMON

Feed,

-June 19

—

Custpmers' short sales—

fine

Foods grains

-June 19

.

51,373,943
$859,070,000

(BUREAU OF MINES)—

WEIGHTED

Fruit

—

STEEL

STEEL

Cotton

-June 19

—

—

(in

E-anks

COMMISSION

Odd-lot purchases by dealers (customers'
sales)—
Number of orders—Customers' total sales

OF

Railroads (25)

purchases)—t

shares.

of

(in

Utilities

2,915,276

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT
DEALERS AND SPECIALISTS ON N. Y. STOCK

EXCHANGE

Zinc

2,681,240

495,460

3,276,989

3,181,210

June 19

—

3,488,100

-574,560

3,374,371

456,450'

June 19

.—

3,483,922

2,724,760

June 10

.—.—

50,434,196
$842,723,000

(in line ounces)

NUMBER

—————————

126

of

Copper (in short tons)-Lead (in short tons)
!

129.990
667,046

——

.

sales

STRUCTURAL

OUTPUT

Silver

573,030

94,070

—June 19

sales

(000's omitted)

ultimate customerss—month

Number of

June 19

—

133

Month of April:
Mine production of recoverable metals in the
United States:

332,100

314,100

>144
*141

TION)—Month of May:

42.650

50.300

——June 19

.

sales

Total

409,710

28,600

floor—■
——

——

round-lot

Other

1,743,490

466,020

June 19

—

sales

Other
Total

2,422,630

394,570

June 19

purchases————

Short

2,433,870

June 19

sales

sales

1,367,950

2,589

customers-

Contracts closed (tonnage)—estimated
Shipments .(tonnage (—estimated-

Average

——June 19

_

—:—

2.074,430

April

INSTITUTE

Industrials

2,358,080

333,780

floor—

___i.

transactions

Total

Total

off

sales

of

FABRICATED

100

1,768,600
2,102,380

4,010

2,792

138

._

Number of ultimate customers
at April 30:—..

110.07

—June 19

3,476

3.997

145

adjustment—.

January

MOODY'S

July 19

initiated

purchases

Short

seasonal

Revenue from

193.815

MEM¬

3,674

2,762

;

ELECTRIC INSTITUTE—
Kilowatt-hour sales to ultimate

391,454

295,007

3,779

;

Adjusted for seasonal variation

61

493,664

2,038

EDISON

4.51

4

10,075

Month of June:

4.29

4.81

4.70
.

8,101

10,463

8,158
'

STORE SALES—FEDERAL RE¬
SYSTEM'—1947-49 Average=100—•

SERVE

3.99

4.47—

8,841

DEPARTMENT

Month

4.08

2,149

4,220

—

■

——

14,613

8,777

10,761

™

32,910

14,686

8,929

—

$42,985

34,453

2,198

loans.

$44,916

14,991

Noninstalment credit

97.47

4.73

2,148,710

modernization

95.92

14

June 19

and

$45,790
35,029

goods-

99.04

June 19

transactions

Total

consumer

87.99

14

T

3

;

81.90

July
July

sales

441,705

—

86.11

323,657

—.

300.500

RE¬

8,911

—

85.72

81.05

306.242

:

sales

and

87.59

85.33

14

275,478

sales

Other

short

81.66

87.59

14

4.59

FEDERAL

SERIES—Esti¬
intermediate term credit

Service credit

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which
registered—
'

THE

96.23

14

July 10
FOR

OF

101.80

89.09

289,984

100

TRANSACTIONS

824,402

OUTSTANDING—BOARD

89.23

89.23

83.42

4

period

1,266,107

658,200

SYSTEM—REVISED

Other

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
ROUND-LOT

CREDIT

GOVERNORS

86.24

85.98

14

82.77

4

—

(tons)

633,782

958.700

_______

92.81

83.96
85.72

July

activity

orders

$1,899,889

1,008,100

I_I—

municipal

Single payment loans.
Charge accounts

...—July

—

1

—;
:

credit
Automobile

94.125c

July 14

Group
Group

$1,966,800

967,400
702,500

of

omitted):

construction
and

118,626,434

528,381,490

264,900

Month

—

111,475,157

597,022,023

909,100

RECORD

140,453,093
$647,007,924

EN¬

—

construction

Instalment

24.000c

July 14

Group

-

140,873,106

$708,497,180

in millions as of
May 31:
Total consumer credit

10.000c

July 14
July 14
July 14

Utilities

Industrials

29,867,313

$1,876,500

CONSTRUCTION

construction

CONSUMER

10.500c

July 14

Baa

40,965,889

36,749,757

51,711,539

579,632 031

City

NEWS

Federal

10.800c

11.500c

July 14

A

Railroad

S.

mated

30.975c

July 14

Aa

York

(OCO's

U.

Public

5.967c

July 14
July 14

—

—

97,284,565

52,480,793

$66.49

7

July 14

—

Utilities

109,864,261

$660,634,096
31,002,065

City

New

State

26.275c

v-July
July
July
July
.July
July

:

.

95,084,064

96,459,843
77 qqq 070

United States—

Private

275

7

July 14

—

$36,226,131
155,415,330

57,678,039
121,730,252

124,775,904
54,062,196

;

ENGINEERING

Total

July 14

;

$35,205,599
153,915,373

'

32;553!e02
156:918,524

York

June

11,851,000

AVERAGES:

Aa

Industrials

13,502,000

9

—.—July

DAILY

54,658

252,979

—

.

GINEERING

—.—

-

Public

118

July

—.—

.

corporate-

Railroad

109

&

U. S. Government Bonds

Baa

Total

Outside

4

July

.

66,967

196,004

(I22',32l',213

VALUATION
DUN
&
INC.—215 CITIES—Month

——

New

July
—July
;July
July
July

——

77,489
85,348

169,386

Central

OF

at_

at-—_—

75,544

102,162

Mountain

380,000

July
—hJuly
—July

;—

-

of

•Pacific

QUOTATIONS):

at.

BOND

Average

197,227,000

8.500,000

—July

at—,

(primary pig.

tin

MOODY'S

58,500,000

>

Louis)1, at——

(St.

Straits

J.

4,649,499

of

(tons

Central

SERVE

refinery
York)

(delivered)

Zinc

57,400,000

PRICES:

M.

6,301,159

8,117,688

$35,552,642

PERMIT

Atlantic

West

470,000

DUN

—

grades

Central

South

458,151,000
260,924,000

116,400,000

July 11

AND

—

&

refinery

(New

tZinc

270,300,000
211,800.000

copper—

Domestic

Export

234,600,000
177,200,000

*8,740,000

July

——————

Lead

260,000,000
143,600,000

East

58,000

100

=

(per lb.)
Pig iron (per gross ton)-!
Scrap steel (per gross ton)————
PRICES

South

$558,996,000
100,845,000

1,680,000

(in 000 kwh.)

COMPOSITE

Electrolytic

252,500,000

-July

Finished steel

METAL

$522,800,000

239,500,000

INSTITUTE:

(COMMERCIAL

AGE

$474,100,000

318,400,000

INDEX—FEDERAL RESERVE

BRADSTREET, INC
IRON

$578,400,000

—July

—:

*11,281,920

8,754,11.9

tops)—

pounds)

of May:
England
Middle Atlantic

OF MINES):

Bituminous coal and lignite (tons)
Pennsylvania anthracite (tons)
DEPARTMENT

189,999

New

-July
tJuly
.July
July
July

«_

output all

BRADSTREET,

NEWS-RECORD:

.Total U. S. construction

134,019

183,827

produced

INSTITUTE, INC.—Month

smelter

BUILDING

4

ENGINEERING

—

zinc

142,116

Shipments (tons of 2,000 pounds)
Stocks at end of
period (tons)
.'

64,772,000'

RAILROADS:
July

157,189

,,

Slab

Ago

159,177

-

AMERICAN ZINC

Year

Month

11,600,000

castings

Month

183,280,000

July

oil

of that dates]

Previous

Mar.

June:

Distillate

are as

INSTITUTE:

tons)—Month of May—
of
steel
products
(net
of April
.•_.

11,128,000

3

and

end\f

tons)

STEEL

Shipmentss

1,831,000

12,683.000

ingots

(net

27,282.000

1,956,000

July

12,487,000

either for thej

are

Month

ALUMINUM

Stocks^of aluminum (short
3

of quotations,

cases

Ago

§82.8

July
July
July
July
July

output

Dates shown in first column

that date,

Latest

of

i

production and other figures for thti

cover

Year

July 18

output

Kerosene

month ended

INSTITUTE:

condensate

each)

Gasoline

month available.

or

July 18

tons)—!—

(net

or

Previous

Week

Equivalent to—
Steel

following statistical tabulations

13.516,790

13,696,880

16,279,260

16,858,040

14,261,370

OF

not-owned

by

the

;

'

Total gross public debt and
guaranteed

obligations

——

—

Deduct—other

outstanding public debt obli¬
gations not subject to debt limitation——

7

Commodity Group—■
All

Meats

.July
—July

foods—_——.—.

———

commodities

than farm and foods

119.4

119.3

Balance

89.4

90.6

95.7

under

107.3

107.1

—July

—

other

119.3

88.8
107.0

113.0

100.1

101.0

101.2

115.9

—July

:—

119.2

July

products——

Processed
All

Grand

commodities

Farm

127.9

127.9

127.9

125.5

UNITED

figure.

^Includes

of Jan.

1,140,000

barrels

of

foreign crude

runs

tBased

on

new

1, 1959, as against Jan. 1, 1958 basis of 140,742,570 tons.
tNumber of orders
Monthly Investment Plan. iPrime Western Zinc sold on delivered basis at centers where

one-half' cent

a

pound.




annual
not

capacity

reported

outstanding—

amount

above

STATES

of

obligations,

_■

issuable

authority
GROSS

—

DEBT

DIRECT

AND

GUARANTEED—(000's omitted):
As

of

June

General

♦Revised
as

total

face

30-

funds

balance

of

147,633,670 tons
since introduction of

freight from East

St.

Louis

exceeds

Net

debt

Computed

annual

♦Estimated.

rate.

—

2.867%

2.853%

2.638%

3?

The Commercial and Financial Chronicle

.

.

.

Thursday, July 16, 1959

(242)

34

^INDICATES

Registration

Securities Now in
Research Associates, Inc.'
1 filed 400,000 shares of common stock

Advanced
Dec.

(par five
research and
and working
— 4130 Howard Ave.,
Kensington!, Md.
Wesley Zaugg & Co., Kensington, Md.,
Widmayer Inc., Washington, DyC. Stop

cents). Price—$6 per share. Proceeds—For
development program; and for equipment

Office

capital.

Underwriters

Williams,

and

proceedings instituted by the

order

Miliville,

Corp.,

Airwork

•

—

SEC.

N. J. (7/17)
of common stock (par

New York.

(8/5)

Corp.

Gas

Alabama

•

July 8 filed $4,000,000 of series E fir/t mortgage bonds,
due Aug. 1, 1984.
Proceeds—To pay construction costs.
Underwriter—To be determined bwcompetitive bidding.
Probable bidders: HaJsey,

Co. Inc.; White, Weld

Stuart

and Kidder,
Hutzler and
Securities Corp. (joihtly). Bids—Expected to

Stone & WeBster Securities Corp.
Peabody & Co. (jointly); Salomon Bros. &
&

Co.,

Equitable

July 8 filed 30,843 series A/cumulative
par $100 (with attached warrants) to be

preferred stock,

offered to stock¬
aBout Aug. 5, 1959, on the basis
each 30 shares of
common stock then held.- Rights expire Aug. 25,
1959.
Warrant, not exercisable before Jan. 20, 1960, will en¬
title
holder to
purchase 3 shares of common stock.
Price—To be supplied by amendment.
Proceeds—To
pay construction costs.
Underwriters—White, Weld &
Co., New York; an/ Sterne, Agee & Leach, Birmingham,

holders of record on or
of

share of preferred stock for

one new

Alabama.

Mines^

Alaska

& Metals Inc.

1,431,200 shares of common stock

Feb. 25 filed

(par $1),

1,000J)00 shares are to be offered publicly and
431,200 shares';are to be reserved for sale to the holders

of which

debentures

DeCoursey-Brewis
(payment for the
shares by/such debenture holders may be made by
delivery of debentures at par plus interest with premium

of 6%

Minerals Ltd.,

due 1962 issued by
the company's parent

Purchasers will receive

Canadian exchange rate).

for

commoi/stock purchase warrants
for cash or for the

rate oi

one

on all

shares purchased

the
Price—$1.25

6% debentures of the parent at

for each five shares purchased.

share. Proceeds—For general corporate purposes and
working capital. Office—423 Fourth Ave., Anchorage,
Alaska. Underwriter—To be named by amendment

per

Afden Electronic & Impulse

Recording Equipment

Co.,
me

Inc.
(letter of notification) 650 shares of

12

stock

referred

and

convertible

225,000 shares of class A

common

preferred, at par ($10 per
Proceeds*—For the
manufacture and purchase of electronic recording equip¬
ment. Office—Washington St., Westboro, Mass. Under¬
stock

(par

Price—Of

$1).

share); of common, $1.30 per share.

writer—None.
All-State

Properties, Inc.
,
June 26 filed 38,697 outstanding shares of capital stock
(par $1). Proceeds—To selling stockholders.
Price—To
be

offered

market
Stock

or

time

from

to

time

in

the

over-the-counter

the American
market price.

(if the shares are listed) on
at the then prevailing

Exchange

Office—30 Verbena

Ave., Floral Park, N. Y. Underwriter

—None.

^ Allied Colorado Enterprises Co.
July 13 filed 5,899,618 shares of class A common stock
and 551,140 shares of class A-l common stock for issu¬
ance
under outstanding subscription agreements at 75
cents per share and 6,576,200 shares of class A common
stock for issuance under outstanding option agreements
at 25 cents per share.
These securities will not be is¬
sued if the options and subscription agreements are not
exercised.
Proceeds—For working capital and surplus
of subsidiaries and for general corporate purposes.
Un¬
derwriters—Allen Investment Co., Boulder, Colo., and
Mountain States Securities Corp., Denver, Colo.
Allied Colorado Enterprises Co.
July 13 filed 3,000,000 class A common stock (par 25
cents). Price—90 cents per share.
Proceeds—For gen¬
eral corporate purposes.
Office—Boulder, Colo. Under¬
writer—Allen Investment

Office

—

Overbrook

Hills,

Pa.

Underwriter—

Philadelphia Securities Co., Inc., Philadelphia, Pa.

Alscope Explorations Ltd.
March 26 filed 1,000,000 shares
of capital stock, of
which 700,000 shares are to be offered publicly in the
United States, and 300,000 shares in Canada. Price—Re¬
lated to the then current market price on the Canadian
Stock Exchange (31 cents per share on March 16). Pro¬
ceeds—For properties, drilling costs, working capital and
general corporate purposes.
Office — 303 Alexandra

Bldg., Edmonton, Canada. Underwriter—None in United
States;

Forget

&

Forget

in

Montreal,

Canada.

State¬

ment effective June 1.

America
June

$5

29

Mines,

filed

share.

Inc.

150,000 shares
Proceeds—To

of

common




assume

and

stock.
pay

an

Price—

effec¬

Statement

31.

Mobile Homes, Inc.
(letter of notification) 300,000 shares of class A
stock

common

of the

(par 10 cents). Price—$1 per share. Pro¬
opening one additional trailer sales lot and

ceeds—For
'

for*construction cost of mobile home park.

Address—3455

which

Highway, Norfolk, Va. Underwriter—Palombi Securities
Co., Inc., 37 Wall St., New York, N. Y.

4,545,455 shares of this stock are to be offered for public
jale at $1.75 per share.
[Shares have been issued or are
issuable under agreements with various policy holders
In American Buyers Life Insurance Co. and American
Life Assurance Co. (both of Phoenix) permitting them

^April 17 filed 300,000 shares of common stock (par $1).
Price
$3.25 per share.
Proceeds — To develop and
manufacture aircraft embodying the body lift principle,
etc.
Underwriter—Firm originally mentioned has with¬

5,000,000 shares of common stock, of

Mov. 13 filed

purchase

to

been

have

,

stock at $1.25 per share. Sales personnel
given the right to purchase stock at $1.25

Ballard Aircraft Corp.

—

Office—1 Kennedy St. N. W., Washington, D. C.
held hearing June 18 regarding statements

drawn.

Note*-SEC

share up to the amount of commission they receive
m stock sales made by them.]
Proceeds—For the opera¬
tion of other branch offices, both in Arizona and in other
'tates.
Office—2001 East Roosevelt, Phoenix, Ariz. Un¬

Jan. 30 (letter of

derwriter—None.

stock

per

Power Co.,

Foreign

&

Inc.

$22,500,000 of convertible junior deben¬
tures, due 1982. Price—To be supplied by amendment.
Proceeds—To be applied in part to the repayment of
outstanding bank loans, and the balance will be used
for
general corporate purposes, including investments
in subsidiary companies, to aid in their construction pro¬
30

June

filed

Underwriter—The First Boston Corp. and Lazard
Co., New York. Offering—Late this summer.

grams.

Freres &

Investors

American

•

June

25

Syndicate,

Inc.

600,000 shares of common stock

filed

in

notiifcation) 100,000 shares of common
$1.60). Price—$3 per share. Proceeds—For
incidental to operation of an insurance com¬
pany.
Office—Suite 619, E. & C. Bldg., Denver, Ccl?.
Underwriter—Ringsby Underwriters, Inc., Denver <Z,

Barton

cured

1, 1959. Price—To be supplied by amendment. Proceeds
finance whiskey during its aging period. Under¬
writer—Fulton Reid & Co., Inc., Cleveland, Ohio.

filed

Gobain

$11,221,500

(letter of notification) 1,200,000 shares of com¬
mon
stock
(par 10 cents). Price—25 cents per share.
Proceeds—For mining expenses. Office—c/o Harold A.
Roberts, President, Arroyo Hondo, Santa Fe, N. Mex.
Underwriter — Hyder, Rosenthal & Co., Albuquerque,

Corp.

of

N.

&

American

St.

Lawrence

Seaway Land«Co.,

York.
•

Gabriel

&

of

in units of one
class A common stock.
Price—$600 per unit. Proceeds—To pay obligations and
for working capital.
Office — 1205 Oil Centre Station,
Lafayette, La. Underwriter—Syle & Co., New York, N. Y.

Inc.

^ Branson Instruments, Inc.
(8/5)
10 filed 40,000 shares of common stock (par $1),
which 10,000 shares will be sold for the company's
account and 30,000 shares for selling stockholders. Pro¬
ceeds—Additional inventory, working capital, and gen¬
eral
funds.
Office—Stamford,
Conn.
Underwriter—
July
of

McDonnell &
®

share per right of the company's $1.25
par value common stock. Warrants evidencing the rights
will be nontransferable prior to Aug. 16, 1960, and will
expire at 2:00 p.m., (CST) on Jan. 31, 1962.
Unless
Apache Oil Program 1960 commences operations on or

Appalachian National Life Insurance Co.
filed 966,667 shares of common stock, including
160,000 shares reserved for option to employees and di¬
rectors.
Price—$3 per share.
Proceeds—To be used for
the conduct of the company's insurance business. Office
—1401 Bank of Knoxville Bldg., Knoxville, Tenn. Under¬
writers—Abbott, Proctor & Paine, New York; Cumber¬

July 1

land Securities

Corp., Nashville, Tenn.; Davidson & Co.,
Inc. and Investment Corp. of Fidelity, both of Knoxville,
Tenn. Offering—Expected sometime during August.

(7/20-24)

May 28 (letter of notification)

150,000 shares of common
stock (par five cents). Price—$2 per share. Proceeds—
For working capital. Office—500 W. 18th St., Hialeah,
Fla.
Underwriter
Charles Plohn & Co., New York,
N. Y.

Automatic Canteen Co. of America

shares of

the company proposes to

common

stock, of which,

issue 126,072 shares to A.M.I.

D.)

Co.,

&

Inc.,

Concord, N. H.

(7/27-31)
of

filed

110,000 shares of common stock

(par $1),

40,000 shares will be sold for account of two

which

selling stockholders and the
the

30, 1960, all unexercised rights will be void
as of 2:00 p.m.
(CST) on that date, and their purchase
price will be refunded. Price—$12',000 per unit. Pro¬
general corporate purposes.
Office — 523
Avenue, Minneapolis, Minn. Underwriter—
APA, Inc., the corporation's subsidiary.

Co., Inc., New York.

(Richard

Brew

June 23

before June

Marquette

and

par)

(no

None.

one

March 2 filed 292,426

be offered

to

Marina, Inc.
notification) 756 shares of common
1,512 shares of preferred stock (no
par) to be offered fqr subscription by stockholders of
record July 6, 1959 in units of one share of common and
two shares of preferred.
Price—To stockholders, $100
per unit; to the public, $125 per unit.
Proceeds — For
expenses for operating a boat marina.
Office—542 E.
Squanturn Street, North Quincy, Mass. Underwriter—

Natdral Gas Corp.

Engineering Corp.

$1)

* Boston Harbor
29 (letter of

stock

745,000 shares of capital stock

Astronautics

(par

dune

Apache Oil Corp.
May 25 filed 350 units of participation in the Apache
Oil Program 1960 and 70,000 rights for the purchase of
common stock
(par $1.25). The offering is being made
only to the stockholders of the company. Each subscrip¬
tion to a unit in Apache Oil Program 1960, will entitle
the subscriber to subscribe also to 200 rights for the

•

stock

common

which

purchase of

(7/22)

$500 debenture and 20 shares of

Co., Inc., New York.

Petroleum &

Inc.

(letter of notification) $250,000 of 8% convertible
debentures due July 1, 1969 and 10,000 shares of class A

Ltd.
(no par),
500,000 shares are to be sold for the account
of the company, and 245,000 shares by the holders there¬
of.
Price—30 cents per share.
Proceeds—For explora¬
tion and development program.
Office — 2100 Scarth
Street, Regina, Saskatchewan, Canada.
Underwriter—
Cumberland Securities, Ltd., Regina, Canada.
Amican

March 23 filed

Bostic Concrete Co.,

June 19

500,000 shares of common stock to be of¬
fered publicly* Price—$3 per share. Proceeds—To pay
off mortgages and for general corporate purposes.
Of¬
fice—60 East 42nd Street, New York.
Underwriter—
J.

(par 10

Price—$2 per share.
Proceeds—Expansion and
working capital.
Underwriter—Simmons & Co., New

cents).

July 8 filed

A.

Mex.

Big Apple Supermarkets, Inc. (8/10)
June 24 filed 425,000 shares of common stock

Underwriter—F. Eberstadt & Co., New York.
•

Materials, Inc.

Basic

April 9

(7/28)
subordinated convertible
debentures, due 1983, and 544,314 shares of common
stock.
The debentures are to be offered to common
stockholders on the basis of $100 principal amount of
debentures for each eight shares of common stock held
on July 28,
1959; rights to expire on Aug. 11, 1959. The
common shares are to be offered to present stockholders
on
the basis of one new share for each 3% shares held
on July 28, 1959; rights to expire on Aug.: 11, 1959, Price
—To be supplied by amendment. Proceeds—For payment
of long-term debt and, in part, for plant construction.
26

whiskey warehouse receipts for not less than

by

—To

and

American-Saint

(7/29).

2,500,000 original proof gallons of Kentucky bourbon
whiskey produced by the company not earlier than Jan.

Price—$12 per unit.
Proceeds—For con¬
related expenditures.
Office—513 Inter¬
national Trade Mart, New Orleans, La.
UnderwriterLindsay Securities Corp., New Orleans, La.
June

Distilling Co.

July 6 filed $2,000,000 of 6% secured notes due July 1,
1965.
These cfre direct obligations of the company se¬

($9).

struction

(par

Colo.

(par 10

cents), and 200,000 shares of 6% preferred stock (no par
value, $9 stated value), to be offered in units consisting
of 3 shares of common ($1 each) and 1 share of pre¬
ferred

prospectus.
Bankers Preferred Life Insurance Co.

expenses

—

option
held by its Mexican subsidiary to purchase certain min¬
ing claims in the State of Durango, Mexico, owned by
per

ISSUI

Azalea

May 21

both in

Underwriter—None.

REVISED

Underwriter—None.

options.

tive March

remaining 70.000 shares for

company's account. Price—To be supplied by amend¬
Proceeds

ment.

—

To

repay

outstanding indebtedness.
York.

Underwriter—Lee Higginson Corp., New

ceeds—For

Co., Boulder, Colo.

it Allied Petro-Chemicals, Inc.
July 14 filed 100,000 shares of class A common stock.
Price—$4 per share. Proceeds—To be added to company
funds.

Houston, Tex.

Buyers Credit Co.

American

American

(8/<

Alabama Gas Corp.

•

(JiDT) on Aug. 5.

until 11:30 a.m.

be received

for additional gold and mineral properties
Mexico and the United States. Office — Bank

stock

of

payment of about $15,000 of other obligations; to carry
on with the balance of the proceeds an exploration pro¬
gram

ITEMS

for the latter's property and assets, and the re¬
maining 166,354 shares are to be issued upon the exercise

day estimated to cost $350,000;

tons of gold ore per

PREVIOUS

Inc.

Compania Minera La Bufa, S. A., by paying to such
$50,000; to construct and place in working oper¬
ation a mine, mill and accessories capable of processing

Southwest Building,

$1).
Price—To be supplied by
amendment. /Proceeds—To
pay demand bank loans of $300,000 and for working
capital. Underwriter—Auchincloss, Parker & Redpath,
18 filed 175,000 shares

June

•

company

100

ADDITIONS

SINCE

British
—

Industries Corp.

shares of common stock (par 50
which 37,500 shar'es will be offered for the
account of the company and 37,500 shares will be offered
for the account of certain selling stockholders. Price—To
June

24

cents),

be

filed ""7.5,000

of

supplied by amendment. Proceeds—For

ital.

working cap¬

Underwriter—Emanuel, Deetjen & Co., New York.

Brockton Taunton Gas Co.
June

29

fered for

(7/29)

of common stock, to be of¬
subscription by common stockholders of record

filed 37,268 shares

1959, on the basis of**one new share for each
then held; rights to expire on or about.
Aug. 13, 1959.
Price—To be supplied by amendment.
Proceeds—For repayment of short-term bank loans in¬
curred under the company's 1956-1958 construction pro¬

July 29,

eight

gram.

shares

Office—178 Atlantic Ave., Boston, Mass.
First Boston Corp., New York.

writer—The

Under¬
P

ic Capital Reserve Corp., Wash., D. C.
July 9 filed an amendment to its registration statement
covering an additional $1,000,000 Potomac Plans for the
Systematic
Accumulation of Common Stock of
the
Potomac

Electric

Power

Co.

Volume

190

Number

5864

.

The Commercial

.

.

and Financial Chronicle

(243)

^ Catalina Investment Co.

,

June 26

(letter of notification) Pre-organization partner¬
ship interests in an aggregate amount of $149,150 to be
offered in units of $17,457.50.
Proceeds—To purchase
properties.
Office—1802 N. Central Avenue, Phoenix,
Ariz.

Underwriter

O'Malley Securities Co., Phoenix,

—

Ariz,
Central American Mineral

Resources, S. A.

May 27 filed 620,000 shares of
500,000 shares

to

are

common

stock, of which

offered for the

be

account

of

the

company and 120,000 shares for the account of certain
selling stockholders. Price—$1 per share. Proceeds—To

finance

acquisitions

and

to

increase working capital.
Office—161 East 42nd St., New
York, N. Y. Underwriter

—None.

•

(letter of notification) $50,000 of 4%, six-year
promissory notes and $200,000 of 5%, nine-year promis¬
sory notes to be offered in denominations of
$100 or
multiples thereof to cooperatives, their directors, managers and patrons.
Price—At face amount.
Proceeds—

(Bear,

Stearns

of

Common

Co.)

Reading Tube

invited)

Window

Debentures

Standard Aircraft Equipment Co., Inc
Peck)

Tang

(Kidder, Peabody & Co., Inc.)

90,000 shares

July 17

(Netherlands Securities Co., Inc.

and J. A.

Winston

&

Co.,

Inc.)

$300,000

Chemicals, Inc

(Doininick

&

Dominick

i

...Common

20,000

shares

U. S. Polymeric
Chemicals, Inc
(Offering to stockholders—underwritten
Dominick)

(3.

Common
by

(Charles

Plohn

(J. A.

Dominick

(Charles

&

(Charles

Hofman

&

A.

$300,000

_

Micronaire

Lomasney

Electro

&

Co.)

Investing

Neiman-Marcus Co.
(Lehman

Reheis

Common

Corp.)

$5,500,000

Common

—u

Brothers)

133,800

shares

Co., Inc
Securities

Corp.)

Darlington

Co.)

$1,000,000

Electronics,
(Charles

&

&

July 21
(Laird,

Bissell

&

Meeds)

Industries,

$299,000

&

Co.

and

Blyth

&

Co.,

I.

du

Corp.

&

Co.)

165,000

shares

$5,135,000

Weld

Webster

Securities

Corp.;

Halsey, Stuart & Co.)

Varian

Associates
(Dean

Wilcox

Weld

&

&

Co.)

Co.

$50,000,000

Electric

(Eastman

United

&

20,000

Co.)

Co.)

(Syle

'

&

Co.)

units

and Stern

be

to

invited)

952,033

share?

Common

$300,000

Class A
&

Co.,

Hayden,

Paine,

Stone

&

Webber,
Co.)

Jackson

40,000

&

Curtis

and

Co.,

Dexter Horton
(Lifton

shares

Hayden,

Stone

Transcontinental Gas
&

Co.

and

&

Co. >

(F.

Walston

Bros.

Stone

&

Webster

Bonds

Securities

Co.

and

Stone

&

Webster

Corp.)

&

(A.

F.

Products,

M.

Law

Juiy 23
Air

(Newhard,

&

Co.

and

.Common
Yates,

Public Service Co. of New
(Kidder,

Peabody

Co.)

Controls

Common
200,000 shares

Co.

&

Co.

ana

Heitner

&

Inc.)

Raytherm Corp.
(Blyth & Co., Inc.

Woods)

Hampshire.:

Blyth & Co.,

$631,484

Common
396,090

shares

Common
and




Schwaoacher &

of

(Merrill

Co.)

150,000 shares

Podesta

&

Co.,

&

&

Co.)

$850,000

to

be

to

(Bt'il

&

Common

(Gates.

Lease

Plan

$30,000,000

(Wednesday)

be

—Equip. Trust Ctfs.

invited)

$2,500,000

86,000

Carter

Common

&

Co.)

$175,000

International Corp

American

World

...Common

140,000

and

Drop Forge
(Fulton

(Lee

'

■

Co.

.(Bids

to

and

Inc.)

43,500

&

Co.)

368,571

S.

D.

Inc

&

McDowell)

300.000

Davenport

&

Co.).

30

&

Co.)

August 3
Edwards

Steel

Sea

View

C

Great

Common

Interstate

Southern

Greenwald

&

Loeb,

Rhoades

Life

&

Accident

Securities

Nitrogen
&

Co.,

Riplew
1

$65,000,000

(Wednesday)

/
Brothers)

Common

$750,000

be

Equip. Tr. Ctfs.

invited)

G.

Kletz

$3,200,000

___I)ebs.

&

Co.

Western

Co.,

Inc.)

(Friday)
Common

_

and

Amos

Life

Common

&

$714,000

C.

Sudler

Insurance

&

Co.)

$1,500,000

Co.

Common

Purvis

&

Co.)

(Wednesday)

Community Public Service Co
(Bids

to

be

Jr. Co.

500.000 shares

invited)

Preferred

$3,000,000

Common

M.

(Harriman

136,000 shares

Bonds

invited)

September 9
Common

$700,000

Corp.

(Equitable

Co.)

(Offering to stockholders—underwritten by G. J. Mitchell

Co.)

&

&

Common

Co.)

200.000

Insur.

Corp.)

(Beil

&

(Tuesday)

Gas Co

Hough

Inc.)

Notes &

Common

$1,750,000

Common

September 17

shares

Common

;
Inc.)

West Florida Natural

shares

Co

350,000

Inc
Co.,

September 15

$525,000

Crowell-Collier Publishing Co
(Carl

to

Inc..—1—...
(Purvis &

$285,000

Co.)

be

August 28

$5,094,200

(Monday)
&

(Monday)

&

Industries, Inc
(Michael

shares

Corp...
Plohn

Bonds
$35,000,000

Pittsburgh & Lake Erie RR

Co.

(Thursday)

(Birkenmayer

to

'Bids

Hickerson Bros. Truck Co., Inc.——

$100,000

Common

(Vermilye

I

July

$3,000,000

^..Common

(Tuesday)

Matronics, Inc.

..Common

&

Inc.)

Inc.)

Co

August 26

Lunt

Co.,

Inc.

(Bids

Common

—^—

(E.. R.

Power

shares

——_—

Blosser

&

(August 25 Tuesday)

...Common
by

Brothers

Pacific Gas & Electric Co

'

-

,J

Co.,

(Shearson, Hammill

—_.Bonds

$8,000,000

Corp

&

&

Corp.—

August 24
Executone

shares

Hampshire

EDT)

Lehman

Debentures
Brooks

Petroleum

(Bids to be received)

$300,000

°

Keys,

Consumers

shares

Co.,

by

$46,962,100

(Thursday)

W.

P.

August 18

Common

a.m.

Weeks)

.Debentures

Inc..
and

(Barnett

Common

^

of New

11

Allen

Supercrete Ltd.
Ten

Central

50,000 shores

stockholders—underwritten

(Straus.

Higginson Corp.

Trans

shares

Co

Strategic Materials
(Offering

Chemicals,

Common

&

&

August 13
Cary

Clark, Landstreet & Kirkpatrick, Inc.)

Reid

shares

Airways, Inc

Horffblower

$2,000,000

Inc.)

shares

1

500,000 shares

Co.,

Common

.....

Inc.)

Corp..

(Hayden, Stone & Co.)

Pan

$15,000,000

and

;__Debentures

invited)

Hough,

International Tuna

$3,000,000

Co.)

(Tuesday)

Pierce, Fenner & Smith
Higginson Corp.) 191,703 shares

Florida Water & Utilities Co

Common

Inc.)

shares

America

(Bids

Common

Co.,

250,000

Common

Co.)

Chesapeake & Ohio Ry.

Co.)

—Debentures

Co.)

Co.,

Common

(Monday)

&

August 12

Co.)

&

Inc.)

37,268

&

$3,084,300

Michigan Bell Telephone Co

318,736 shares

(Wednesday)
&

Preferred

._

& Leach)

Lynch,

Lee

Common

Corp

Campeau

(Maltz,

Lines, Inc

Cook

(Thursday)

Agee

(Simmons

Debentures

Securities

200,000

Extrudo-Film

(Thursday)

invited) $10,996,000

August 11

Inc

& Co.

*

;

—Debentures

Big Apple Supermarkets, Inc

Inc.)

shares

Inc

(Charles

Ozark

&

Securities

Smithers &

(Blair

Preferred

Securities

Common
$300,000

Common

Properties, Inc
.

Corp.)

$15,000,000

be

Sterne,

and

Transcontinental Gas Pipe Line Corp
"
(White, Weld &

Co.,

shares

$20,000,000
-

&

Realty Co.____Partnership Interests

S.

$750,000

Pipe Line Corp

Preferred

August 10

Securities, Inc. and Hechler-Weingrow
Securities, Inc.) $977,500

Products,

Debentures
Wepber, Jackson & Curtis and

Paine,

to

(Cruttenden,

Notes

Reid

shares

$300,000

shares

206,500

—-

&

40,000

Buckingham Transportation Inc.—

Debentures

Union

Inc.)

Corp

and

$300,000

Corp

Plywood

Public Service

Common

Minerals, Inc

Corp.

Weld

Gas

(Tuesday)

Corp.)

Park

(Minn.)_

Co.,

Co

(Offering to stockholders—underwritten by White, Weld

Common

Distilling Co

-

Co.

(Caldwell Co.)

(White,

Co.)

Gobain

(Fulton

j._Class A

.

Rothschild

Alabama

Brockton Taunton Gas Co
Common
(Offering to stockholders—underwritten by The First Boston

Paco

Business, Inc..

Northwest Defense

F.

Common

Common

Union

&

August 6

shares

National Citrus Corp.—

Com. and Debs.
$250,000

"(Offering to stockholders—bids

(L.

&

EDT)

Common

(Simmons & Co.)

Common

and

a.m.

Inc.

(Offering to stockholders—underwritten

Magnuson

shares

(Joseph Mandell & Co.. Incj anUSevmour Blauner &
Co:')
$756,000

Pall

Inc.)

300,000

Inc.

shares

Pacific Power & Light Co.—

Inc.)

shares

.1.

July 29

Hexcel

,

.

(Wednesday)

Northern States Power

«'

Ltd

1,000,000

Co__

Dillon,

and '

$4,000,000

Bostic Concrete Co., Inc.

Rothschild

Co.)

Co.,

Co.)

Co.,

Dillon,

States

(Eastman

*

Witter

July 22

F„

&

229,585

(Wachob-Bender Corp.)

Inc.)

shares

Seiberling Rubber Co.—

'R.

(L.

50,000

...

544.314

'

Corp.

Inc.)

American-Saint Gobain Corp.____

Debentures

(Dean

Pall

(McDonnell

(Bids

Common

Varian Associates

Funds for

&

(Lee Higginson Corp.

Bonds

White,

——

Witter

&

.

Tennessee Gas Transmission Co.___
&

&

Co.)

(Wednesday)

Instruments,

(Bids

Co..

1,550,000 shares)

Common

&

sll:30

Community Credit

...

Debentures

<.

(Offering to stockholders—underwritten by White,

(Stone

Branson

Inc.)

Common

(Glore, Forgan & Co. and Rowles Winston &
Co.)

Common

Pont

Common

Douglas Microwave, Inc.

Tuboscope Co.

Barton

$10,000,000
(Francis

$15,000,000

Bonds

(Bids

Common

Co

&

Walker

Common

&

30,000

Inc.)

Rowe Furniture Corp

Seeburg

Corp...

Television Shares Management
Corp

Debentures

Staats

Bonds

Invited)

Alabama Gas Corp

Corp

Bernheimer

Nicolaus

$450,000

'

Corp.
R.

Common

Co

be

August 5

Com.

$11,221,500

Inc

(L. D. Sherman & Co.)

(William

&

Netherlands Securities Co.,

Rhoades

(Shields

H.

Common

(Offering to stockholders—underwritten by F/ Eberstadt &
Co.)

(Tuesday)
Common

Electronic

Northrop

F.

American-Saint

$1,440,000

to

Precision Corp

(G.

$4,505,600

Corp

.Common

Co.)

Dover Hotel Corp
Fanon

Co.)

Common

shares

(Offering to stockholders—underwritten by. F. Eberstadt

Inc

Plohn

Co

Corp. and Robinson-Humphrey
Inc.) $8,325,000

Electric

Creek

Common

110,000

Netherlands Securities Co.,

Cable

Loeb,

$435,000

Common

(Hill,

,

and

Blauner

page

(Tuesday)

Insurance

Zapata Off-Shore Co..

Debens.
&

July 28

Voss Oil Co
.

Corp.)

and

on

Space

(Bids

Silver

Common

(Aetna

Wellington

Inc.

(White, Weld

Com. and War.
(General

Pennsylvania

Specialty Manufacturing Co., Inc. Common

Medical Products

Corp.

$500,000

Netherlands Securities Co.,
$1,320,000

Co.

&

M.

<D.

(Stifel,

$690,000

Lane,

Co.,

$330,000

and

Hills Electric

St. Clair

$300,000

Int. Life

(Johnson,

(Monday)

Owens Yacht Co., Inc

Debentures &
A.

Co.)

Inc.)

Capital Fund of Canada

(Carl

Hunter Mountain Development Corp.
(Myron

27

Co.

&

D.

Common

Lomasney & Co.)

Co.,

Fuller

Microwave

North

$300,000

Laboratories, Inc
(Myron

&

Plohn

Common

Co.)

D.

Wire

New York

Instruments, Inc.___
(Harrison

$500,000

$375,000

..Common

Co.)

&

&

(Monday)

Plohn

Georgia

$1 000.000

Narda

Astronautics Engineering Corp

$25,000,000 of first mortgage bonds due

Continued

Common

Winston & Co.,

(Milton

Elion

&

Hudson Radio & Television

Jefferson

55,930 shares

July 20

Dec. 16,1957 filed

Class A Common

Podesta

Higginson

stock, which may
Employees' Stock

company's

August 4

Faradyne Electronics Corp....__

Common

-—

U. S. Polymeric
1

Co.)

Properties, Inc

Common

Lieco, Inc.

&

(Richard D.) & Co., Inc

Dilbert's

(Friday)

Corp.

(Auchincloss, Parker & Redpath) 175,000 shares

of common

the

Commerce Oil Refining
Corp.

Fi¬

Preferred

Barnes

under

(Friday)

Co

July
Brew

(Lee

Airwork

purchased

(Maltz, Greenwald & Co.)

$300,000

—Common

Broadcasting System, Inc.

Option Plan.

Common

Trans-Sonics, Inc.

—

CALENDAR

Industries
(David

of

Falls, Iowa.

be

Superior Window Co.x

$5,000,000

share

one

* Columbia

1, 1959. Office
Milwaukee, Wis. Underwriter—None.

(Cruttenden,

Corp

&c

Superior

and

July 9 filed 261,797 shares

ISSUE

Under¬

and Dean Witter

stock.
Price
$205 per unit.
Proceeds—For working
capital. Office—Suite 421, 901
Sherman Street,
Denver, Colo. Underwriter—Associated
Securities 412 Main
Street, Cedar

Offer expires on'or before
Aug.
St™

Water

$3,600,000

(Emanuel, Deetjen & Co. and Bache & Co.)

(Adams

tures

Office—Georgetown,

&

Co.

N.

(par $1).

investment.

,

(letter of notification) 11,116 snares of common
stock (par $2)
being offered on a share-for-share ex¬
change basis to stockholders of Milwaukee Loan
nance

Proceeds—For

Colorado Water & Power Co.
(letter of notification) $220,000 of 6% unsecured
iebentures due April 1, 1964 and
1,100 shares of common
jtock (par $1) to be offered
in units of $200 of deben¬

May 21

633

stock

common

Feb. 25

short-term notes due within one
year.
Part of the pro¬
ceeds may also be used to retire
outstanding subordi¬
nated debentures not

..exchanged.
Underwriter—None.

market.

Boston, Mass.
/,;■

/.■

.

writers—White, Weld & Co., New York,
& Co., Los
Angeles, Calif.
1

offering. No bonds will be reserved for this
exchange
offering. Price—100% of prineipal amount. Proceeds—
To increase or maintain the
working capital of the com¬
pany but will be initially applied to the
reduction of

(Cruttenden, Podesta

Ctfs.

(7/28.)

Price—At

company's subordinated debentures in
exchange,
at face value, on the
maturity dates of those securities
so
long as there are bonds remaining unsold in this

$17,150,000

.Equip. Tr.
be

to

Colonial Energy
Shares, Inc.,

May 5 filed 1,200,000 shares of

the

July 24

Corp

&

Missouri Pacific Ry
(Bids

•

.

(Thursday)

International Recreation

Su¬

Acceptance Corp.
June 29 filed $600,000 of series F
6% five-year subor¬
dinated debentures, to be offered to the
present *holders

NEW
16

Street,

Civic Finance Corp.

29

July

Winter

Citizens'

Del.

it Central Cooperatives, Inc.
June

For working capital.
Office—1901
perior, Wis. Underwriter—None.

136,400

shares

35

»

(Thursday)

Georgia Power Co
(Bids to
f

Bonds
be

Invited)

$18,000,000

36

Financial Chronicle

The Commercial and

.

.

Thursday, July 16, 1959

.

(244)

-36

'l

Oct

Price—$150

writer—None.

follows: $l,00u of bondsjind 48 share,
of stock and $100 of debentures
nine shares of stock
l»rice—To be supplied by amendment. Proceeds —- Ti

Underwriter—Lehman Brothers. Ne*

writer

mon

stock.

DeKalb-Ogle Telephone Co.
May 27

City, Utah.

stock

(8/5)

Community Credit Co.

•

pire

notification) 80,000 shares of 6% con-

consummated

Price—$3.75 per unit. Proceed,
properties. Office—908 Alamo
National Bank Building, San Antonio, Texas.
Underwriter—Frank Lerner Co., New York, N. Y. Offering—
Temporarily suspended by the SEC and a hearing had
been scheduled for July 14 whether to make this order

Development Corp. of America
29 Registered issue.
(See Equity

June

interests.
Proceeds—For purchase of the
Dexter Horton Building in
Seattle, Wash.
Office—19
West 44th St., New York
Underwriters—Lifton Securi¬
ties, Inc. and Hechler-Weingrow Securities, Inc., both

shares of common stock (par $5).
made after a 50% common stock
distribution to be-considered by stockholders at a meet¬
ing on July 21. Of the total, '50,000 shares will be sold
for the account of the company and 141,703 shares for
the account of a group of selling stockholdefs. Price—To
be supplied by amendment.
Proceeds—To be added to

8 filed 191,703
The offering will be

R. Williston

(7/21)
June 26 (letter of notification) 149,500 shares of common
stock (no par). Price—$2 per share. Proceeds—For work¬
ing capital and to retire loans. Underwriter — Laird,
Bissell & Meeds, Dover, Del. and New York.
_

Phoenix,

be

8

cents).
to

($1

300,000 shares of

Corp., Miami, Fla.

property

and

Investment Corp., of

Alabama
notification) $250,000 of 15-year 5%
general obligation debentures to be offered in multiples
of $50.
Proceeds—To make loans for automobile pur¬
chases to people engaged in the field of education and
for expansion of the company's capital structure. Office
—1704 11th Ave., South, Birmingham, Ala. Underwriter
—None.
• -/

common

per

8

(letter

of

,

Crescent

Petroleum Corp., Tulsa,

($25 par) and 12,559 shares of common ($1 par), 34,460
shares of the preferred and 9,059 shares of common are

.if Ekco Products Co., Chicago, III.
July 9 filed 45,000 shares of common stock, to be offered
to employees under its Restricted Stock Option Incen¬
tive Plans.

issuable upon the

exercise of stock options granted when
the assets of Norbute Corp. were acquired on Aug. 6,

Publishing Co.

Crowley's Milk Co., Inc.
26 filed 60,000 outstanding

March
stock

shares of common
Price— To be supplied by amendment.

(par $20).
Proceeds—To selling stockholders.

Ave., Binghamton, N. Y.
Crusader Life
3

Office—145

Conklin

Underwriter—None.

Insurance

Co., Inc.
1,000 shares of

(letter of notification)

common

stock (par $50 )to be offered for subscription by stock¬
holders of record April 30, 1959, ont£ie basis of one new
share for
each two shares


held.

300,000 shares of class A
common stock (par 25 cents).
Price—$1 per share. Pro¬
ceeds—For inventory, equipment, working capital, etc.
Office—901 S. Lake Street, Farmington, N. Mex. Under¬
writer—Investment Service Co., Denver, Colo.

(8/3-7)

July 2 filed 200,000 outstanding shares of common stock
(par $1). Price—To be supplied by amendment. Proceeds
—To selling stockholders. Underwriter—Carl M. Loeb,
Rhoades.& Co., New York.

June

Electric City Supply Co.
April 6 (letter of notification)

Underwriter—None.

Crowell-Collier

—None.

„

Industries, Inc.
filed $6,103,700 of 4%%

Emery

21

nated debentures due

subordi¬

convertible

July 1, 1979, being offered for sub¬

by common stockholders of record June 5.
the rate of $100 of debentures for each eight
shares of common stock then held; rights to expire on
scription
1959, at

Proceeds—To repay outstanding
Office—

Price—At par.

July 31.

bank loans and for general corporate purposes.
Carew

Tower,

Cincinnati, Ohio. Underwriter—None.

if Entron, Inc.
'
13 filed 200,000 shares of common stock. Price—
$5 per share. Proceeds—For purchase of machinery and
equipment and for interim financing of coaxial cable
television transmission systems.
Office—4902 Lawrence

July

Underwriter—Alkow & Co., Inc.,

St., Bladensburg, Md.
New

York.

Equity Annuity Life Insurance Co.
April 21 filed $1,000,000 of Variable Annuity Policies.,
Price—No less than $120 a year for annual premium
no
less than $1,500 for single premium
Proceeds—For investment, etc. Office—2480

and

contracts.

16th

Street,

W.,

N.

Rights expire Aug. 25,

Underwriter—

Washington, D. C.

v

if Electronic Data Processing Center, Inc.,
Portland, Ore.
June 29 (letter of notification) 17,000 shares of common
stock. Price—At par ($10 per share). Proceeds—To pay
an
eight-year lease of electronic machines, installation
charges
and
working capital!
Underwriters — Zilka,
Smifhef & Co., Inc. and Camp & Co., both of Portland,
Oregon.
•

Elion

June 26

stock

:

4

- Development
Corp. of
registration statements seeking registration
follows: Equity General, 500,000 shares
of common stock and 149,478 shares of preferred stock;
and Development Corp., 500,000 shares of common stock.
The Equity Corp. is the owner of 5,343,220 shares of
Equity General common stock and proposes to offer
500,000 of such shares to the holders of Equity common
in exchange therefor, on a one-for-one basis.
Equity
General is the owner of 2,399,504 shares of Development

of securities, as

Corp.

and

common

shares

the

to

proposes

holders

of

to

offer

Equity

such

500,000" of

General

common

in

exchange therefor, on a one-for-one basis. The Board
of Directors of Equity General has authorized the issu¬
ance of a maximum of 149,478 shares of Equity General

preferred stock in exchange for shares of preferred stock
of Development Corp.,
on the basis
of one share of
Equity General preferred for two shares of Development
Corp. preferred.
•

Office—103 Park Ave., New York City.

Mutual

ESA

Fund, lnc.v
June 29 filed 2,000,000 shares of capital stock. Price—To
be supplied by amendment. Proceeds—For investment.
Investment Adviser—Yates, Heitner & Woods, St. Louis,
Underwriter—ESA

Mo.

C.

Office—1028

ton, D.

C.

Distributors,

Inc.,

Connecticut Ave., N.

Washington,
W., Washing¬

No public offering contemplated.

if Executone, Inc. (8/24-28)
July 15 filed 136,000 shares of common stock. Price—To
be supplied by amendment.
Proceeds — For general
icorporate purposes, including additional working capital
and the reduction of outstanding indebtedness.
Office—■
Lexington Avenue, New York.
Shearson, Hammill & Co., New York.
•

Extrudo-Film

Corp.

Underwriter

—

(8/3-4)
of common stock (par 10
Proceeds—For purchase of

filed 175,000 shares
cents). Price—$3 per share.

July

2

machinery and equipment for the Pottsville plant, to
pay the principal on a 5% note due Sept. 1, 1960, and
the balance will be added to the company's general funds
and will be available for general corporate purposes.
Office—36-35 36th Street, Long Jsland City, N. Y.
Un¬
derwriter—Maltz, Greenward & Co., ^New York.
•

Fanon Electronic

Industries, Inc.

(7/21)

.

Okla.

May 26 filed 48,460 shares of 5% convertible pfd. stock

1958.

three shares of

stock held;

415

(8/3-7)

equipment, and for working
Underwriter—Charles Plohn & Co., New York.

acquire

Educators

share). Proceeds —For
*ease, labor, equipment, etc. Office—^309Vz S. Third St.,
Las Vegas, Nev. Underwriter—None.
par

Steel

filed 140,000 shares of common stock (par 10
Price—$5 per share. Proceeds—To repay loans,

capital.

of

Co., Inc.

Price —At

stock.

Edwards

June

(letter of notification)

Inc.

July 13 filed 3,000,000 shares of additional capital stock.

Regina.
Crescendo Oil

Streets, Philadelphia, Pa. Underwriter—None.

if Dreyfus Fund,

April 17 filed 260,000 shares of common stock. Price—
share. Proceeds—For exploration program.
Office—2100 Scarth St., Regina, Saskatchewan, Canada.

also

in units.

Chestnut

80 cents per

Ltd.,

series 1 and/or series 2
unsubscribed shares to other stock¬
holders.
Rights expire 30 days from offering date.
Price—$1 per share.
Proceeds—For working capital.
Office—333 S. Farish Street, Jackson, Miss. Underwriter
for each

:ommon

D.

22

offered

Mining Corp. Ltd.

Securities

Dover, Del.

filed $2,000,000 of partnership interests, to be
Price—$10,000 per unit. Proceeds—To
used
for various
acquisitions.
Office — Broad &

May

Phoenix,

Corp.,

Drexelbrook Associates

•

June 1

300,000

Hotel

Dover

July

Cumberland

filed

6

Douglas Microwave, Inc.
(8/5)
filed 100,000 shares of common stock (par 10
Price—$3 per share. Proceeds—To retire loans,

•

& Beane, New York.

—

Underwriter—S. D. Fuller & Co.,

purchase equipment, and to add to working capital.
Office—252 East Third Street, Mt. Vernon, N. Y. Under¬
writer—Simmons & Co., New Y"ork.

Ariz.

Underwriter

basis of one share of series 3

the

stockholders on

jtock

America,

to

The

properties.
Office—1802 N. Central Avenue,
Ariz.
Underwriter—O'Malley Securities Co.,

Corp.

(letter of notification) 250,000 shares of series 3
common
stock (no par) to be offered for subscription
19

Equity General Corp.—
June
29
filed
together with

•

if Coronado Investment Co.
June 26 (letter of notification) Pre-organization partner¬
ship interests in an aggregate amount of $149,150 to be
offered in units of $17,457.50.
Proceeds—To purchase

Cree

Properties, Inc. (7/27-31)
of 20-year 5 V2% convertible de¬

filed $4,400,000

July 2
cents).

preferred stock
will be convertible into class A common in the ratio of
two common shares for one preferred.
Price — To be
supplied by amendment. Proceeds—To repay a mort¬
gage and for general corporate purposes.
Office—716
North Federal Highway, Fort Lauderdale, Fla.
Under¬
writers—Cruttenden, Podesta & Co., Chicago, III., and
J.

York.

Texas
shares of common stock (par 50
:ents). Price—$3 per share.
Proceeds—For acquisition
if undeveloped real estate, for organization or acquisi¬
tion of consumer finance business, and balance to be'
used for working capital.
Underwriter — Investment
Service Co., Denver, Colo., on a best efforts basis.

cumulative convert¬
and 450,000 shares of

stock (no par)
stock (no par).

unit.

Diversified Inc., AmariUo,

^

common

Emerite
Jan.

None.

Jan.

if Coral Ridge Properties, Inc.
July 8 filed 450,000 shares of $.60
A

per

New York.

employees and officers
of the company or its subsidiaries under its 1959 Em¬
ployees Stock Plan. Office—9555 West Soreng Avenue,

preferred

of limited partnership

$977,500

Street, Jamaica, N. Y.

options granted or to be granted

class

share. Price—

Proceeds—For working capital.
Office—8 First
Bank Bldg., Butte, Mont. Underwriter—None.

repayment of notes; to develop and construct shopping
centers
and a super-market
under existing purchase
contracts and for working capital.
Office—93-02 151st

if Controls Co. of America
13 filed 160,000 shares of common stock.
These
shares have been or will be issued upon the exercise of

ible

of

Debentures are convertible

ing of $50 principal amount of debentures and 12 shares
of common stock. Price—$51.20 per unit. Proceeds—For

or

111.

6%

5-year

of

stock at any time at $5 per

bentures, due July 15, 1979 and 1,056,000 shares of com¬
mon stock
(par one cent) to be offered in units consist¬

July

Schiller Park,

At par.
National

contracts
June 11

advanced to a Swiss subsidiary.
Underwriters—Merrill Lynch, Pierce, Fenner & Smith,
Inc. and Lee Higginson Corp., both of New York.
invested in

filed

Dilbert's

•

with approximately
$750,000 earmarked for acquisition of a Canadian plant
for the production of motors and solenoids, construction
of an addition to a plant at Folcroft, Pa., and acquisition
of property and equipment in Arizona for production of
rectifiers and other semi-conductor products. Approxi¬
mately $170,000 will be used to retire notes and $'250,000
be

New

of

general funds of the company,

will

15

Price—$5,000

July

the

(7/29)

Realty Co.

Dexter Norton

•

(8/11)

America

Corp.

General

below.)

June

Controls Co. of

$195,000

None.

permanent.
•

common

May

Equities, Inc., into DCA and the plan of reorganization
in connection therewith.
Underwriter—

converted into two shares of com¬

into

•

company's $1.25 cumulative convertible preferred stock
received
by DCA common stockholders in connection
with the recently consummated merger of Real Estate

development of gas

—For

W.

Development Corp. of America

stock at any time.)

mon

Office—112

April 30 filed 1,376,716 shares of common stock (par $1)
reserved for issuance upon conversion of shares of the

preferred stock (par $3.50) and 80,000 shares Oi
common stock
(par 10 cents) to be offered in units °f
one share of preferred and one share of common.
(Pre¬
be

program.

Underwriter—None.

St., Sycamore, 111.

Elm

At par ($10 per share).

—

construction

a

share for eac(i 10 shares

one new

oversubscription privilege. Rights ex¬

July 17, 1959. Price

on

Proceeds—For

vertible

ferred stock may

of

notification)

of

(letter

$100, $500 and $1,000 each.

by

(letter of notification) 19,822 shares of common
be offered to stockholders of record June 10,

then held with an

senior cumulative

April 30 (letter of

to

1959, on the basis

of notification) 12,000 shares of 6.12^
sinking fupd preferred stock, series A.
Price—At .par ($25 per share). Proceeds—To retire the
presently outstanding preferred stock. Office—3023 Farnam
St., Omaha, Neb. Underwriter — Wachob-Bender
Corp., Omaha, Neb.
• Consolidated Petroleum Industries, Inc.
(letter

22

June

a

on

amendment.

Office—4oO.So. Main St., Salt
Underwriter—Earl J. Knudson & Co.,
Offering—Expected m August.

City, Utah.
Lake

Salt

for

investment.

ceeds—For
Lake

The remaining

will be offered publicly by the under¬
"best efforts" basis. Price—To be supplied

amendment. Proceeds—For repayment of notes and
working capital. Underwriter — To be supplied by

oy

8

convertible debentures to be offered in denominations

shares

158,387

notification) 900,000 shares of comPrice-At par (10 cents per share)
Pro¬

June

Laboratories, Inc.

Research

Ellis

Christian, Miss.

641,613 shares will be offered on a
stockholders of record May 15, 1959.

(letter of

28

Gas Corp., Pass

stock, of which
one-for-one basis to

Investors Corp.

Commercial

•

Nov

Pa.

May 26 filed 1,500,000 shares of common

Offering—Indefinite.

York

equipment and for working capital. OfficeBristol, Pa. Underwriter—Harrison & Co., Philadelphia,
purchase

,

Crusader Oil &

offered in units as

construct refinery.

share.

per

Office—640

1968, $20,000,00 of subordinated debentures du«
1968 and 3,000,000 shares ot common stock to b«

1

Bept

shared will be offered to the public.
Proceeds—For working capital.
Minnesota Ave., Kansas City, Kan. Under¬

Unsubscribed

1959.

'Continued from page 35

shares of common stock (par 20
share. Proceeds—To retire airpilt*
standing bank loan; and the balance will provide work¬

May

29

cents).

filed

150,000

P^ice—$3

per

ing capital to finance increased inventories and accounts
receivable.
Office—98 Berriman St., Brooklyn,. N. Y.
Underwriter—L.
•

D.

Sherman

& Co., New York.

Faradyne Electronics Corp.,
(7/27)

June

Newark, N. J.
•

.

<

\

'

■

'

220,000 shares of common stock (par five
Price—$6 per share. Proceeds—To be used for

23 filed

cents).

purchase and construction of machinery and equipment.
Underwriters—Charles Plohn & Co. and Netherlands Se¬
curities

Co., Inc., both of New York.

Farmers Mutual

Telephone Co. of Clarinda

May 19 (letter of notification) 1,531 shares of common
stock (par $100) to be offered to stockholders for a pe¬
riod of 60 days at book value as reflected by the com¬
pany's books at the end of each 30-day period on a pro
one-half share for each share now held. Un¬

rata basis of

Instruments, Inc.

(7/20)

(letter of notification) 100,000 shares of common

(par 50 cents). Price—$3 per share. Proceeds—To

subscribed shares will be offered to the public. Price—
Estimated at $140 per share.

Proceeds—Working capital,

etc. Office—106-108 W. Chestnut

St., Clarinda, Iowa.

Volume

190

Number 5864

.

.

The Commercial and Financial
Chronicle

.

(245)

Fidelity Investment Corp., Phoenix, Ariz.

General Stores Corp.
May 21 filed 1,884,278 shares of

June 29 filed

1,799,186 shares of class A common Stock,
1,700,000 shares are to be offered publicly, and
remaining 99,186 shares have been subscribed for

of which

the

in consideration for

services rendered in organizing the
incentive to management. The company
has agreed to issue to the organizers 200,000 shares of
class B common stock; and 100,000 class B shares have
company

as

an

been set aside for issuance to

the organizers. Price—To

keep personnel other than

public, $3

per

—To be applied to pay interest due

pruchase

share. Proceeds

properties and to

on

properties and for working capital. Under¬

new

writer—None.
First National Credit

June
stock

Bureau, Inc.
V
(letter of notification) 8,000 shares

1

common

.

change.
the

Bldg., Detroit, Mich. Underwriter—

v

y

stock, of which
173,286 shares are to be offered to certain officers and
key .employees of Flintkote and its subsidiaries under
the "Flintkote Stock
Option Plan";- 16,771 shares are
subject to options granted by Flintkote in substitution
for options granted
by Orangeburg Manufacturing Co.,
Inc.,. to certain of its officers and key employees; and

37,311 shares are subject to options granted in substitu¬
tion of options granted
by Blue Diamond Corp. to certain
of its officer i and
the assets of

key employees. Flintkote acquired all
Orangeburg in December, 1958, in exchange
for 132,416 shares of
preferred stock; and on May 14,
1959, it issued 615,617 common shares upon the
merger

of Blue Diamond into Flintkote.

(of New York)

in
The 143,789

exchange for 369,858 shares of Flintkote Co.
shares

of

stock

are

Exchange.

to

or

be received by certain share¬
Price—To be related to the then

current

price on the New York Stock
selling stockholders. Under¬

Proceeds—To

writer—None.
o

•

•

:

Florida

Water & Utilities
Co., Miami, Fla. (8/12)
July 8 filed 86,000 shares of common
stock, of which
65,000 shares are to be offered for public sale for the
account

of

the

company and 21,000 shares for the ac¬
count of two
selling stockholders. Price—To be supplied
by amendment. Proceeds—To be used to reduce indebt¬
edness and

&

increase working capital.

Underwriter—Beil

Hough, Inc., St. Petersburg, Fla.

Fluorspar Corp. of America
Feb. 5 (letter of notification—as
amended)
of common stock.
Price—At

($1

par

300,000 shares
per share). Pro¬

ceeds—For mining expenses.
Office—4334 S. E. 74th
Ave., Portland 6, Ore. Underwriter—Evergreen Securi¬
ties, Inc., 4314 N. E. 96th Ave., Portland. Ore.
Foundation
June 18 filed

Price—At
418

Balanced

Fund,

100,000 shares of

market.

Inc.

common

Proceeds—For

stock

(par $1).

investment.

Office—

Union

St., Nashville, Tenn. Investment Adviser—J.
Nashville, Tenn. Distributor—Capital
Planning Services, Inc.
C. Bradford & Co.,

Foundation Stock Fund, Inc.
June 18 filed 100,000 shares of common
stock (par $1).
Price—At market. Proceeds—For
investment. Office—
418 Union St.,
Nashville, Tenn. Investment Adviser— J.

Co., Nashville, Tenn. Distributor—Capital
Planning Services, Inc.
*

Funds For

Business, Inc.

working capital.

Office—120 East 41st Street, New York.
Underwriters—
Joseph Mandell & Co., Inc. and Seymour Blauner &
Co.,
both of New York.
Co.

May 22 filed $1,706,900 of Limited
Partnership Interests,

to be offered in units.
Price—$25,000 per unit. Proceeds
—To repay monies borrowed for
the purpose of
closing
title and paying incidental
expenses in acquiring the
Dumont Plaza Hotel in
Washington, D. C. Office—580
Fifth Avenue, New

York, N. Y.

Underwriter—None.

ic Gabriel Co.
July 8 filed $2,500,000 of subordinated
sinking fund
debentures, due June 30, 1974, with warrants for the
purchase of 20
tures.

x^tures.

common

Price—100%

of

shares for each $1,000 of deben¬

principal

Interest Rate—To

Proceeds—For capital

amount

of

the

deben-

be

determined byl amendment.
investment.
Office—1148 Euclid

April 6
mon

(letter

General Aniline & Film
Corp., New York
Jan. 14, 1957 filed
426,988 shares of common^stock (no
par) and 1,537,500 shares of common B stock
(par $1).
Proceeds—To the Attorney General of the
United States.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Blyth &
Co., Inc., and The First Bos¬

Kuhn,

Loeb

&

Co.;

Lehman

& Co. (jointly). Bids—Had
been scheduled to be received
up to 3:45 p.m. (EDT) on
May 13 at Room 654, 101 Indiana
ton 25, D.

General
Feb.

Ave., N. W., Washing¬
C., but bidding has been postooned.

Merchandising Corp., Memphis, Tenn.

18 filed

250,000 shares of class "A" common stock
cent).
Price—$10 per share. Proceeds—For
working capital and general corporate
purposes. Under¬
writer— Union
Securities
Investment
Co... Memphis,
Tenn. Statement effective
April 24.

(par

one




Hathaway St., Syracuse, N. Y.

a

selling

share.

porate purposes.

•

•

30

filed

1,665,000
per

shares

share.

of

common

Co.,

Inc., Atlanta, Ga.,
Corp., Atlanta, Ga.

and

The

(par

Lane,

(par $1).

Price—$5

per

28,800
share.

shares

of

Proceeds—

1

Hemisphere Gas & Oil Corp.
April 27 (letter of notification) 300,000 shares of

Robinson-Humphrey

Johnson

stock

common

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., 11 Broad¬
way, New York 4, N. Y. Offering—Expected in
Septem¬

Proceeds—To increase capi¬

tal and surplus. Underwriters—The

Heliogen Products, Inc.
22, 1958 (letter of notification)

ber.

stock

Street, Albany, N. Y.

Oct.

Georgia International Life Insurance Co.,
Atlanta, Ga. (8/4)

$2.50). Price—$5

Office— 40 Beaver

Underwriter—None.

per

Proceeds—For furniture inventory and
improved
merchandising methods, to finance the real estate depart¬
ment and insurance
policy loans. Office—211-215 Pine
St., Pine Bluff, Ark. Underwriter—Lovan Securities
Co.,
Inc., Pine Bluff, Ark.

June

stock..

Heartland Development
Corp.
June 24 filed
22,820 shares of 5% convertible preference
stock (par $12). Price—Par.
Proceeds—For general cor¬

company

stockholder. Price—$1

Underwriter—None.

• Haydock Fund, Inc.
July 13 filed 40,000 shares <kf additional
capital

notification) 225,000 shares of com¬
(par 25 cents).
Of the total, 195,000

30,000 shares for

stock.

mon

Space

For

Price—At par

($1

development oi oil and

com¬

share).

Proceeds—

properties.

Office—702:

per

gas

American Bank

Packing Corp.
572,500 shares of common stock (par one
cent), and 50,000 common stock purchase warrants. Of
the shares 400,000 will be sold for
the account of the
company; 110,000 by certain stockholders; 12,500 for the
underwriter; and the remaining 50,000 shares are pur¬
18

—D.

filed

Bros. Truck Co., Inc.
(7/30)
(letter of ratification) 285,000 shares of com¬
Price—At par ($1 per share). Proceeds—Te>
pay existing liabilities; for additional equipment; audit
for working capital.
Office—East Tenth Street, P. O.
Box 68, Great
Bend, Kan. Underwriter—Birkenmayer
& Co., Denver, Colo.
1

2,500,000 shares of common stock (par $1)
by company viz: (1) to holders of common
(par $4) of Government Employees Insurance Co.,

•

rate of

the

to

•

the

rate

of

in

unit

Proceeds—For

Insurance

Co.

units,

and

for

each

15

shares

held

on

25 filed

loan

to

Connecticut

W.)

—

Avenue,

Investment

Inc.

200,000 shares of 6% cumulative convert¬

(par $2) and 100,000 shares of com¬
mon stock (par 10 cents). The
company proposes to offer
200,000 preferred shares and 50,000 shares of the common
in units consisting of 4 shares of preferred and one share
common.

The

remaining 50,000 shares of

common

stock are to be offered to holders of outstanding 4%
subordinated debentures at the rate of one share for each

$.50

face

amount

cancellation.
and

of

such

Proceeds—To

debentures
be

used

general corporate purposes.

surrendered

for

for

working capital
Underwriters—Kenneth

Kass, Nassau Securities Service and David Barnes & Co.,
Inc., all of New York; and Palin Securities, West Orange,
N. J.

for gen¬

(E>.

H.)

Co. Ltd.

Orleans, La.

Underwriter—Arnold & Cfane, New

Honolulu
June
fered

16

Construction

filed

for

subscription by
1959, on the basis of

30,

&

Draying Co., Ltd.

25,000 shares of

common stock, to be of¬
stockholders of record April
one new share for each five

shares then held. Rights to

expire on or about July 30.
Price—$40 per share. Proceeds—To be applied to repay¬
ment of bank loans and for company's capital expendi¬
ture program and investment.. Office—Honolulu, Hawaii.

Underwriter—None.

^ Hotel Corp. of Israel
13 filed 39,000 shares of common stock (par $5)
$1,560,000 of 6% subordinated debentures, due Aug.
1, 1974. Price—$1,500 per unit, consisting of 30 common
...

.

July
and

shares at $10 per share and $1,200 of debentures at par.
Proceeds—To purchase, complete, and furnish various,
purposes.
Office—
Underwriter—None.

properties and for general corporate

ible preferred stock

of

and

14,780 shares of capital stock to be offered
present stockholders on the basis of cne new sharei

New

the

America, Inc.

Advisor

(J.

Bank

Orleans.

or

250,000 shares of common stock (par 10
Price—At market.
Proceeds—For investment.

Hancock

loan from Hillside National

25, 1959. Price—
per share. Proceeds—For expansion program, for
working capital and other corporate purposes. Office—

each

Washington, D. C.
Advisory
Service,
Washington, D. C. Underwriter—Investment Manage¬
ment Associates, Inc.,
Washington, D. C.
June

a

/^for each 14 shares held of record June

an

filed

Investment

Laboratories, Inc. (7/20)
(letter of notification) 50,000 shares of common
(par 25 cents). Price—$6 per share. Proceeds—To

Holmes

to

(8/28)

subsidiary
(Great
Building & Loan Corp.); and the balance will
be used to increase capital and
surplus. Office—101111 N. W.
Second St., Oklahoma
City, Okla. Under¬
writers—G. J. Mitchell, Jr.
Co., Washington, D. C.; and
Purvis & Co., Denver, Colo.
4

an

new

June 5 filed

Western

Feb.

(with

be

corporate purposes.
Office — 5 Evans Terminal,
Hillside, N. J. Underwriter—Myron A. Lomasney & Co.„
New York, N. Y.

Aug. 28, 1959; rights to expire on or about Sept.
28, 1959. The options evidence the right to purchase the
200,000 outstanding shares owned by Great Western
Building & Loan Corp. Price—To be supplied by amend¬

Growth Fund of

for

eral

hbout

ment.

used

$37.50
Life

stock

one

be

Alstyne, Noel & Co., of New York.

retire

consisting of five
option to purchase two
additional shares, the units to be offered for subscription
by holders of the 1,500,000 outstanding common shares
at

Proceeds—To

June 12

Co.

offered

be

Price—To

be-

the

at

Hofman

stock

& Co.

common

privilege).

to

stockholders

production of the Edgerton, Wis., plant;
discharge of bank loan and other corporate pur¬
Office—250 Park Ave., New York, N. Y.
Agents

—Van

June 29 filed 500,000 shares of common stock and
op¬
tions to purchase 200,000 additional shares of
outstanding

shares of

stock

common

increased

poses.

stock

June 16 filed 126,000 shares of common stock to be issued
in connection with the
acquisition by the company of

stock,

of

present

and for

Washington, D. C.; Eastman Dillon, Union Securities &
Co., New York; and Abacus Fund, Boston, Mass. Offer¬
ing—Indefinitely postponed.

Great Western

shares

share for each two shares held

supplied by
equipment
and plant
improvement; to be used for inventory and
production requirements of the Hazleton, Pa., plant and

prior to the record date,
a total of
164,733 common shares would be outstanding.
Price—$3 per share. Proceeds—For capital and surplus.
Office—Government Employees Insurance Bldg., Wash¬
ington, D. C. Underwriters — Johnston, Lemon & Co.,

Chemical

new

amendment.

on the basis of V2 warrant per share of
(as of Dec. 31, 1958 there were 143,703 shares
of stock outstanding and
$589,640 of 5% convertible cap¬
ital debentures due 1967, convertible into shares of com¬
mon at $28.0374
per share. If all these debentures were

(W. R.)

1,105.294

subscription by

one

oversubscription

Employees Corp.,

Grace

filed

9

offered for

stock held

common

11

Highway Trailer Industries, Inc.

June

warrant per

share of stock held (1,334,570 shares are now outstanding); (2) to holders of
common
stock
(par $1.50) of Government Employees
Life Insurance Co., on the basis of 1 Vz-warrants
per share
of stock held (216,429 shares are now
outstanding); and
(3) to holders of common stock (par $5) of Government

into

Office—Berkeley,.
Co., San Francisco'

stock.

mon

to be offered

converted

Price—TO'

Proceeds—For working cap¬

Hickerson

March

Employees Variable Annuity Life

one

(7/29)
50,000 shares of capital stock.

corporate purposes.
Calif. Underwriter—F. S. Smilhers &

Insurance Co.

the basis of

Products, Inc.

filed

and New York.

Nov. 13 filed

on

26

be supplied by amendment.
ital and general

purposes. Office—614
Broad St., Utica, N. Y. Under¬
writer—Mortimer B. Burnside & Co., New York. Name
Change—Formerly Eastern Packing Corp.

stock

Hexcel
June

chasable upon exercise of the warrants.
Price—$1.25 per
Proceeds—For repayment of
debt; purchase of
equipment and facilities and other general corporate

Government

Building, Portland 5, Ore. Underwriter
Hensley Co., Inc., 4444 California Avenuer

Earle

Seattle, Wash.
.

share.

Office —1825

Co., Inc., Cleveland, and Carl M.
Loeb, Rhoades
Co., New York.

(jointly);

and

to be offered for the account of the

are

&

Corp.

of

capital stock

cents).

ton

Milling Corp. Seaboard plans
100,000 shares for sale to the business associates
employees of Hathaway Industries at $6
per share*
In
addition, Seaboard may wish to sell publicly the re¬
maining 200,000 shares, or a portion
thereof, on the
American Stock
Exchange, or otherwise, at prices cur¬
rent at the time
of such sales.
Proceeds—To selling
stockholder, Seaboard Allied Milling Corp. Office—
to offer

General Underwriters Inc.

Avenue, Cleveland, Ohio. Underwriters—Prescott, Shepard &

Brothers, and Glore. Forgan

on

selling

by its Stromberg divi¬
Underwriter—Kidder, Peabody & Co., New York.

Hatco

(7/22)

May 8 filed 500,000 shares of class A stock (par 50
cents).
Price—$1.50 per share. Proceeds—For

Futterman-Dupont Hotel

To

tric transactor system
developed
sion.

C. Bradford &

•

—

tures due 1979 to

June

shares of common stock (par $5).
This company on June 17 will
acquire all the assets of
The Glen Falls Portland Cement Co.

current market

current market

Stock Exchange.
Proceeds
Underwriter—None.

Inc.

June 9 filed 300,000
outstanding shares of common stocks
These shares are part of the
672,990 shares (53.43%)
held by Seaboard Allied

Gold Medal

Flintkote Co.
June 4 filed 143,789

holders of Glen Falls.

Hathaway Industries,

(par $1)

be offered for subscription
by common
stockholders at the rate of $100 of debentures for each
eight shares of stock held. Price—To be supplied
by
amendment. Proceeds—To be added to the
general funds
of the company and be used
primarily to finance elec¬

and
common

stock

•

shares

Flintkote Co., New York
May 20 filed 227,368 shares of

common

the American Stock Ex¬

General Time Corp. '
July 8 filed $6,260,700 of convertible subordinated deben¬

to be offered for subscription by stock¬
employees. Price—At the market. Office—

American Title

None.

on

Price—Relating to the then

American

stockholders.

(par $1)

holders and
804

of

to be sold from time to time

37

11

South La
Hudson

Salle

Radio

St., Chicago, 111.
&

Television

Corp. (7/27-31)
capital stock, of which
125,000 shares are to be offered for the account of the
company and 75,000 shares for the account of a selling
stockholder. Price—$5 per share. Proceeds—To be util¬
ized in reduction of obligations, the acquisition and/or
development of additional inventory lines, warehousing
facilities and sales outlets; the adoption of various sales
promotional programs, and as additional working capi¬
tal. Office—37 West 65th St., New York, N. Y. Under¬
writer—J. A. Winston & Co., Inc. and Netherlands Se¬
June

8

filed

200,000

curities Co., Inc.
•

Hunter Mountain

shares

of

f
Development Corp.,

Hunter, N. Y. (7/20)
5 filed $690,000 of 6% subordinated debenture*
July 1, 1969, and 69,000 shares of common stock (par
10 cents) to be offered in units, each unit consisting of a

June
due

$50 debenture and 5 shares of common stock.

Continued

Price—$50

on

page

38

The Commercial and Financial Chronicle

38

.

.

Thursday, July 16, 1959

.

(246)

Continued from page
unit. Proceeds

per

building of lodge,

—

indebtedness, for purchase of

37

.

filed 600,000 shares

—

Proceeds—To further the corporate parposes and
in the preparation of the concentrate and
enfranchising of bottlers, the local and national pro¬
motion and advertising of its beverages, and where
necessary to make loans to such bottlers, etc. Office—
$2.50 per share.

704

vis

May 11 filed 64,028 shares
51

for the outstanding stock of Mexico Refrac¬
tories Co. through merger.
Proceeds—To selling stock¬
holders. Underwriter—None. Statement effective June 5.
exchange

preferred stock, series A ($10 par), and 806,793 shares
of common stock, together with warrants for the pur¬

the

Interests under

^Agreements in the company's 1960 Oil and

Exploration Program, to be offered in amounts of

Gas

convertible

properties. Office—2306 Bank\>f the South¬
Bldg., Houston Texas. Underwriter—None.

west

such

Underwriter—None.

prospectus, 80,000 common shares are to be
nine payees of non-assignable convertible

to

offered to

notes out¬

the amount of $500,000 for conversion of
not&> into common shares at a conversion price
of $6.25 per share.
The 13,080 preferred shares and
8,175 common shares are to be offered in exchange for
the outstanding 327 shares of common stock of Farmers
Union Telephone Co., a New Jersey corporation, on the
basis of 40 shares of preferred and 25 shares of common
for each share of common capital stock of Farmers
Union. The issuing company further proposes to offer
96,604 common shares to holders of its outstanding stock
of record June 30, 1959, for subscription at $6.25 per
share on the basis of one new share for each two shares
South

capital.

working

Proceeds—For

held.

then
25

Office—

Underwriter—None.

St., Dryden, N. Y.

Plywood Co., Inc., Jamaica, N. Y.
filed 60,000 shares of 6% cumulative preferred

Industrial
June 25

par—convertible until Aug. 31, 1969), with
purchase warrants. Each share of pre¬
one "A" and one "B" warrant attached,
entitling the holder to purchase one share of common
(for each two "A" warrants) at $12 per share, expiring
June 30, 1961; and for each two "B" warrants held at
$14 per share, expiring June 30, 1961. Price — $10 per
stock

($10

common

stock

ferred will have

Proceeds—Toward reduction of

share.

bank

short-term

loans; to liquidate long-term debt; and the balance for
additional working capital.
Underwriters — Standard
Corp., Irving Weis & Co., and J. A. Winston

Securities
&

Co., Inc., all of New York; Bruno-Lenchner Inc., Pitts¬
burgh, Pa.; Netherlands Securities Co., Inc., New York;
and Plymouth Bond & Share Corp., Miami, Fla.
International

Bank, Washington, D. C.
of notes (series B, $500,000, two-

Exploration Co.,

Lauire

3% per unit; series C, $1,000,000, four-year 4% pel
unit; and series D, $3,500,000, 6-year, 5%per unit), Prk#
—100%

of

principal amount.

Proceeds — For workinj

capital. Underwriter—Johnston, Lemon & Co.,
ington, D. C. Offering—Indefinitely postponed.
International

April 16
mon

common

Railroads

Weighing Corp.
82,626 shares of com¬
to be'offered for subscription bj

(letter of notification)

stock

(par $1)

stockholders at rate of

one

new

held. Price—$3 per share.

four shares

research

Wash¬

and

Office—415

development

costs

and

share for each

Proceeds —- For
working capital

Spruce St., Hammond, Ind.

Underwriter—

None.
•

International

Recreation Corp.

(7/16-17)
May 14 filed 2,750,000 shares of common stock (par 50
cents). The issue was later reduced by amendment to
980,Q00 shares. Price—$17.50 per share. Proceeds—For
construction and acquisition. Office—60 State St., Boston,
Mass. Underwriter—Bear, Stearns & Co., New York.
•

International Tuna

April 3
A

Corp. (8/12)
(letter of notification) 175,000

shares of

clasi

stock

(par 50 cents).
Price — $1 per share
equipment and working capital. Offie*
—Pascagoula, Miss. Underwriter—Gates, Carter & Co.
Gulfport, Miss.
common

Proceeds—For

•

Voz

La

stock.

common

for

Co.

Publishing

(letter of notification) 2,000 shares of class A
Price—At par.
Proceeds—For expenses

16

June

newspaper "La
Office—1831 Wallace St., Philadelphia, Pa. Under¬

and

promotion

Voz."

publication

the

of

26

filed

outstanding shares of common
stock (par $1).
Price—To be supplied by amendment.
Proceeds—To selling stockholders. Office—540 McCallie
Ave., Chattanooga, Tenn. Underwriter—Equtable Secu¬
rities Corp., Nashville and New York.
•

350,000

Investors Funding Corp. of New York
17 filed $500,000 of 10% subordinated

Feb.
due

July 31, 1964, to be offered in units of $1,000. PrH*
of principal amount. Proceeds—For invest¬

—At 100%

Office—511 Fifth Ave., New York, N. Y.
writer—None.
ment.

Under¬

it Investors Planning Corp. of America
July 13 filed $29,000,000 of Systematic Investment Plans
and $1,000,000 of Single Payment Investment Plans.
Irando

Oil &

Exploration, Ltd.
April 24 filed 225,000 shares of common stock; Price—90
cents per

share. Proceeds—To defray the costs of explo¬
ration and development of properties and for the ac¬
quisition of other properties; also for other corporate
purposes.

Office—1950

Underwriter

—

Laird

Broad
&

St., Regina, Sask., Can.
Rumball, Regina, Sask., Can.

Jamaica

Development Co., Inc.
June 15 filed 105,000 shares of common stock. Price—$10
per share. Proceeds—To be used for the purchase of land,
cattle, machinery and equipment, fishing lodge, and
development expense. Office—1841 North Meridian St.,
Indianapolis, Ind. Underwriter—None.
•

Jefferson Wire & Cable Corp.

(7/27)
May 27 filed 100,000 shares of common stock (no par).
Price—$3.75 per share. Proceeds — To pay off various




Maturizer

Co.

(letter of notification) $250,000 of 6% convertible
subordinated debentures due July 1, 1964, and converti¬
ble into units of common stock which consist of one
June 1

of

class

A, voting,

and three shares of class B,
Proceeds—To purchase

non-voting stock at $40 per unit.

machinery and equipment and for working capital.
O.

dress—P.

Box

755,

Norman,

Ad¬
Underwriter—

Okla.

'j

None.
Medearis Industries, Inc.

May

14

cents).

filed 200,000 shares of common stock (par 20
Price—$3.75 per share.
Proceeds—For general

corporate purposes. Office — 42 Broadway, New York,
N. Y. Underwriter—Amos Treat & Co., Inc., New York.

Meg Products Co., Inc.
24 (letter of notification) 120,000 shares of com¬
stock (par $1). Price—$2.50 per share. Proceeds—

For

inventories, machinery and equipment, retire exist¬

ing

loan and

promissory notes and additional working
Office— 3340 W. El Segundo Blvd., Hawthorne,
Underwriter—First Angeles Corp., Beverly Hills,

capital.
Calif.

California.

Mercantile

ic Lease Plan International Corp.
(8/12)
July 10 filed 140,000 shares of common stock, of which
70,000 shares will be sold fpr the company's account

and

70,000 shares for selling stockholders. Price—To be sup¬
plied by amendment. Proceeds—The company will use
its share- of the proceeds to increase working capital.
Office—7 Central Park West, New York. Underwriter—
Hayden, Stone & Co., New York-.
it Leone 48th Street, Associates
July 10 filed $1,680,000 of Participations in Partnerships
to be offered in units of $10,000.
Proceeds—To reduce
and

indebtedness

general

for

Office—60

expenses.

Lieco, Inc. (7/17-20)
June 12 (letter of notification) 100,000 shares of common
(par 10 cents). Price—$3 per share. Proceeds—
machinery and laboratory equipment; for consolida¬

stock
For

operations in one plant; for retirement of cor¬
porate debts and for working capital. Office—47 Bergen
St., Brooklyn, N. Y. Underwriter—Netherlands Securi¬
ties Co., Inc., and J. A. Winston & Co., Inc., New York,
tion

N.

it Merritt-Chapman & Scott Corp.
July 10 filed 50,000 shares of common stock, to be of¬
fered to key employees of the company and its sub¬

of

Pools Equipment Corp., Renovo,

Lifetime

•

(paT 10 cents). Price—$2 per share/ Proceeds—
For purchase of machinery and equipment; advertising
and
working capital.
Underwriter—First Washington
stock

Corp., Pittsburgh, Pa.

'

it Lifter Properties, Inc.
June 29 (letter of notification)
100,000 shares of com¬
mon
stock (par five cents).
Price—$3 per share. Pro¬
ceeds—For expenses for acquisition and
operation of
Motels and Motel properties. Office—One Lincoln Road,

Underwriter—None.

Building 9, Miami Beach, Fla.

Office—Elizabeth, N. J.
Underwriter—Clark, Dodge & Co., New York.

ceeds—To selling stockholders.

Loomis-Sayles Fund of Canada Ltd.
July 6 filed 800,000 shares of common stock, to be of¬
fered initially at $25 per share through Loomis, Sayles &

Co., Inc., to clients, officers, directors and employees of
the latter. The shares also are to be offered to share¬
holders of Loomis-Sayles Mutual Fund, Inc., of record

After July 31, 1959, the offering price will
asset value. After Sept. 15, 1959, shares will be
only to shareholders of Loomis, Sayles & Co.,

July 15, 1959.

(7/20-24)

200,000 common shares (par 10 cents) and
warrants for the purchase of common
stock, to be offered for public sale in units of 100 shares
of common stock and 25 warrants. The registration also

Proceeds—For invest¬

includes

various geological

and for

Offices—Wilmington,

poses,

expenses,

test

Del.,

and

Emporium,

Pa.

Statement effective.

Underwriter—None.

Properties, slnc. (7/29)
shares of class A common stock.
Price—To be supplied by amendment. Proceeds—$443,071 is to be expended during the period ending Aug. 31,
1960, for mortgage payments and releases; $465,000 will
be paid on notes acquired by members of the Magnuson
family in the transfers of subsidiaries and properties to
the company; $350,000 will be used to pay off an exist¬
ing loan secured by a mortgage on the Florida Shores
properties in Edgewater, Fla., and an assignment of a lot
contract receivable; about $150,000 for the construction
of the first four stories of the company's proposed office
Magnuson

June

26

building
will

be

filed

in

500,000

Miami

secured

by

(the
a

balance

mortgage

estimated at $150,000
the building), and

on

$93,200 to close, certain options and purchase contracts
covering lands in the Melbourne-Cape Canaveral area.
^The balance will be added\to the company's general
funds

and

will

be

availably together with funds

re¬

from payments on lot sales, principally for the
development of the Palm Shores properties (at Eau
Gallie) and for further acquisitions, and for use as
working capital. Office—20 S; E. 3rd Ave., Miami, Fla.
Underwriter—Blair & Co., Inc., New York.
ceived

an

additional 200,000 three-year warrants, exer¬
of which 150,000 have been issued to cer¬
Price—$275 per unit.

cisable at $3,

stockholders and employees.

tain

Proceeds—To

discharge

indebtedness; for expansion of

and for working capital.

sales efforts;

Underwriter

Ave., New York.

—

Office—79 Madi¬
General Investing

Microwave

Electronics

Corp.,

July 2 filed $500,000 of 10-year 5% subordinated deben¬
tures

July

due

common

stock

1,

1969 together with 250,000 shares of
10 cents) to be offered in units of

(par

$10,000 principal amount of debentures and 5,000 com¬
mon shares.
An additional 138,000 shares may be issued
in connection with the

company's restricted stock option

Price—$10,500 per unit. * Proceeds—To purchase
machinery, equipment and other fixed assets, for operat¬
ing expenses, and the remainder for working capital.
Office—4061 Transport St., Palo Alto, Calif. Underwriter

plan.

Mid-America Minerals, Inc.
June 22

$921,852 of Working Interests and

filed

Over¬

riding Royalty Interests in 26 oil and gas leases covering
lands in Green and Taylor Counties, Kentucky, some
of the interest being producing interests Shd some non-

-producing. The offering is to be made initially to par¬
ticipants in the Mid-America Minerals, Inc., 1959 Fund.
Price—$2,221.33 per smallest unit. Proceeds—For invest¬
ment in oil and gas lands.
Office—Mid-America Bank

Underwriter—None.

Bldg., Oklahoma City, Okla.

Millsap Oil & Gas Co.
Dec. 23 filed 602.786 shares of

common

stock.

Price—$1

Proceeds — For additional working capital.
Office—Siloam Springs, Ark. Underwriter—None.

per

share.

M.

&

cents

Price—$1
Proceeds—For the acquisition of properties

Sept. 29 filed 350,000 shares of common stock.

share.
option

one-year

S.

Oils Ltd.

390,000 shares of capital stock. Price—60
share.
Proceeds —• For exploration, develop¬
acquisitions. Office—5 Cobbold Block, Saska¬

May 11 filed

LuHoc Mining Corp.

under

1 filed

50,000

ment.

per

Electro Medical Products Corp.

Micronaire

—None.

it Hugh W. Long & Co., Inc.
July 15 filed 280,000 shares of outstanding class B com¬
mon stock. Price—To be supplied by amendment.
Pro¬

be net

Madison

Corp., New York.

Pa.

(letter of notification) 150,000 shares of common

June 1

Office—360

Plan.

son

Y.

its.dCey Employees Stock Purchase
Ave., New York.

sidiaries pursuant to

June

•

of California

Corp.

Corp., San Francisco, Calif.

E.

St., New York.

42nd

Acceptance

May 15 (letter of notification) $80,000 of 12-year 5%%
capital debentures. Price—At face amount. Proceeds—
For working capital.
Office — 333 Montgomery Street,
San Francisco, Calif. Underwriter—Guardian Securities

per

ment and

Saskatchewan,

toon,
land

drilling, purchase of equipment, and other similar pur¬
debenture!

for

writer—None.

Inc., and its affiliated companies.

(8/3-17)
June

test

mon

offered

Interstate Life & Accident Insurance Co.

equipment, research and development,
special systems, receivables, inven¬
tories, prepayment of notes and other purposes. Office
—558 Main St., Westbury, L. I., N. Y.
Underwriter—
Vermilye Brothers, New York.
production

June

Dec. 29 filed $5,000,000

year,

Price—$3.75 per share.

oil and gas

standing^ in

According

shares.

common

of capital stock (par 100).
Proceeds-r-For sales promotion,

shares

200,000

Proceeds—Acquisition of undeveloped

$25,000 or more.

Inc., Arnett, Okla.
April 30 filed (by amendment) 2,000,000 shares of com¬
mon stock
(par $1). Price—$2 per share. Proceeds—For
machinery and equipment and exploration purposes.

50,000

of

chase

29 filed

share

Kilroy (W. S.) 1960 Co.
8 filed $3,500,000 of Participating

June

(8/26)

Inc.

Matronics,

of common stock

shares

Participant

Colo.

Independent Telephone Corp.
13,080 shares of 5% cumulative

of 4%% cumulative convert-—

(par. (par $100) issued in
t|}le (1959 series) preference Stock 33% cents) and 128,-

Equitable Bldg., Denver, Colo. Underwriters— Pur¬
& Co. and Amos C. Sudler & Co., both of Denver.

June 29 filed

,

Chemical Corp.

Kaiser Aluminum &

—v

of common stock. Price—

•

June

demonstrators

Inc., both of New York.

ties Co.,

& Co., New York.

(8/28)

I C Inc.

29

equipment, for
Un¬

For purchase of

and for other corporate purposes.

derwriter—Myron A. Lomasney

June

machinery, equipment and

materials, for plant facilities, for sales promotion,
and for working capital. Office—Sutton, Mass. Under¬
writers—Charles Plohn & Co. and Netherlands Securi¬
raw

Securities Ltd.,

Canada.
Underwriter — Cumber¬
Regina, Saskatchewan, Canada.

Microwave

Narda

Corp.

(7/27-31)

shares of common stock (par 10
cents) and 50,000 warrants to be offered in units, con¬
sisting of one share of common stock with attached
warrant entitling the holder to purchase one additional
share.
The statement also includes an additional 10,000
shares of common stock reserved for issuance to key
16

June

filed

50,000

pursuant to options. Price—To be supplied
amendment. Proceeds — To be used to retire bank
Underwriter—Milton D. Blauner & Co., Inc., New
York.
'
•;

employees
by

loans.

.

,.

National

Citrus Corp.

(7/29)

r-."

150,000 snares of com¬
Proceeds—
"For new equipment, inventory and working capital. Ad¬
dress^—P. O. Box 1658, Lakeland, Fla.
Underwriter—
R. F. Campeau Co., Inc., Detroit, Mich.
April 20
mon

(letter of notification)

stock.

National

Price—At

par

($2 per share).

Lead Co.

-June 29 filed 28,863

shares of common stock. On June 23,
exchange agreement

1959 National Lead entered into an

providing for the acquisition Of the assets of Goldsmith
Smelting & Refining Co., of Chicago, subject to the
requisite approval of the stockholders of Goldsmith, and
^the dissolution and liquidation of Goldsmith. Under the
Bros.

agreement, National Lead will acquire

the assets, prop-

Volume

190

Number

5864

.

.

The Commercial and Financial Chronicle

.

erty and business of Goldsmith in exchange for 30,000
of National Lead common stock (or such lesser
number as provided for in the agreement) and the sfesumption by National Lead of certain liabilities of Gold¬
smith. The prospectus lists a number of persons who
shares

will

receive

and

sell

may

the

National

Lead

stock

re¬

ceived by them under the agreement.

National

Sports Centers, Inc.
July 2 filed $1,000,000 of 6% convertible income deben¬
tures cumulative due 1969, series C, and 100,000 common
stock purchase warrants. Price — 100%
of principal
amount. Proceeds—To be

for completion of and/or

used

payment of certain bowling alley and other properties,
to the company's general
funds available for development of properties and the
acquisition and development of additional bowling prop¬
and the balance will be added

Office—55 Broadway, New York.

erties.

General Investing

Underwriter—

^National Truckers Service, Inc.
July 2 (letter of notification) 10,755 shares of common
stock and 10,000 shares of preferred stock.
Price—Of
stock, at

common

($5 per share); gf preferred stock,
($10 per share). Proceeds—For work¬

par

to members at par

ing capital. Office — 103—29th St., Suite No, 7, New¬
port News, Va. Underwriter—None.
Nationwide

Small Business Capital Investing
Corp.
April 24 filed 500,000 shares of capital stock (par 50
cents). Price — $1 per share. Proceeds
For working
capital and investments.
Office—Hartsdale, N. Y.
Un¬
—

derwriter—None.

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

ceived up to 10 a.m. (CDT)
St., Chicago 4, 111.

share).

(7/21)
$10,000,000 of" convertible subordinated de¬
bentures due July 1, 1979.
Price — To be supplied by
amendment.
Proceeds—For working capital and other
corporate purposes.
Office — 9744 Wilshire Boulevard,
Beverly Hills, Calif; Underwriters—William R. Staats
&

.

S. Dak

.■

(7/22)

York, N. Y.

Office Buildings of America, Inc.
April 6 filed 91,809 shares of class A stock (par $1) and
10,201 shares of class B common stock (par $1) to be
offered in units of nine class A

share.

Price—$100

per

unit.

shares and

one

class B

Proceeds—To be available

May 5 (letter of notification) 150,000 shares of common
stock (par 50 cents). Price—$2 per share. Proceeds—To
acquire fishing tools for leasing; and for working capital.
Address—P.

O.

Box

672, Odessa, Texas. Underwriters—

To be designated.
•

Neiman-Marcus

June

29

filed

of which

of

the

31,200 shares

are

to

filed
par

874,422 shares of common capital stock
value). The company has agreed with the

holders of the outstanding shares of Aurora Gasoline Co.
to exchange 25 shares of Ohio Oil common for each
share of preferred stock of
Aurora; 5.78438 shares of
Ohio

Oil

common

for

each

share

of

Aurora; and 5.78438 shares of Ohio Oil
share

of class A

common

stock

stock

common

of

for each

common

of Aurora.

Proceeds—For

shares

New

&

the

account

account

Oils

Assets Investment

jr Olson Construction Co.
July 29 (letter of notification) $300,000 of 6% subordi¬
nated coupon debentures due July 1, 1964 to be offered
in denominations of
$1,000 each. Price—At face amount.
Proceeds
For
working capital.
Office — 410 S. 7th
Street, Lincoln, Neb.
Underwriter — Ellis, Holyoke &
Co., Lincoln, Neb.

of

be

supplied by
working capital. Office —

Ervay Sts., Dallas,
Brothers, New York.

Pacific Coal

(par $2),

for the

for

Price—To

and

Lehman

stock

common

Texas.

Underwriter

—

Oreclone Concentrating

account

be

offered for

the

of

Owens

the

company;

July 2

of

Price

100,000 shares will be offered for the account
selling stockholder (Albert Mining Corp. Ltd.);

a

and

the remaining 165,000 will be paid as additional
compensation to brokers and dealers. Price—Related to

the

then

current

Exchange.

market

Proceeds—To

price

on

the

American

Stock

bank loans, for develop¬
ment of properties, and for general
corporate purposes.
Office—145

repay

Yonge Street, Toronto, Canada. Underwriter

—None.
•

New York

Capital Fund of Canada, Ltd.,
Toronto, (7/27-31)
June 30 filed 1,000,000 shares of common stock.
At

net

asset

commissions.
—Carl M.
•

value,

plus

underwriting

Proceeds—For

_

Price—

discounts

investment.

and

Underwriter

Loeb, Rhoades & Co., New York.

Newport Electric Co.

June 22
stock

the

(letter of notification) 13,101 shares of common
(par $10) being offered first to stockholders on

basis

July

of

one

new

share

for

each

10

shares

held

7; rights to expire July 23.

Price—$20 per share.
Proceeds—For construction program. Office—159 Thames
St., Newport, R. I. Underwriter—Stone & Webster Se¬
curities

Corp., New York.

Acceptance Corp.
April 29 (letter of notification) $300,000 of 6% 10-year
subordinated debentures to be offered for
subscription
by stockholders in denominations .of $100, $500 and
$1,000 each. Rights will expire July 31, 1959. Price—At
par.
Proceeds—For working capital. Office—Suite 487,
795 Peachtree Street, N.
E., Atlanta, Ga. Underwriter—
None.
*

ic North American Planning Corp.
July 13 filed $15,000,000 of three types of plans for the
accumulation of shares of Fidelity
Fund, Inc. Office—200
E. 42nd Street, New York.
North Hills Electric Co., Inc.
(7/27-31)
July 1 (letter of notification) 150,000 shares of
stock

(par
Price—$2
deem

one

per

preferred

stock, purchase additional
equipmbnt^build inventories and add to working capital.
Underwriter—D. F. Bernheimer & Co., Inc., New York.
Northern
June

9 filed

States

Power Co.

952,033 shares of

(7/22)

common

stock

to

be

of¬

fered for subscription by common stockholders of record
about July 23 on the basis of one new share for each
15 shares held; rights to expire on Aug.
—For

11, 1959. Proceeds
expenditures, including the
then existing bank loans (estimated at

construction

payment of any

program

$14,000,000). Underwriter—To be determined by com¬
petitive bidding. Probable bidders: 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. Bids—Expected to be re¬




Office—Stansbury Road, Dundalk,

Baltimore, Md. Underwriter—Shields & Co., New York.
• Ozark Air
Lines, Inc. (7/23)
May 20 filed 132,944 shares of general common stock
(par $1) being offered to holders of class A and class B
common stock
(not including class B common held by
voting trustees) and holders of voting trust certificates
for class B common stock, on the basis of one new share
of general common stock for each nine shares of class A

common, class B common (not including
held by voting trustees), or voting trust

class B shares
certificates for
class B common.
Record date is July 6; rights expire
on
July 20. Unsubscribed shares may be offered July
23-24.
Price—$4.75 per share.
Proceeds—For purchase
of
additional
flight equipment.
Address—P. O. Box
6007, Lambert Field, St. Louis, Mo.
Underwriters —
Newhard, Cook & Co. and Yates, Heitner & Woods, both
of St. Louis, Mo.

7

filed

offered

$10,996,000

on

the

basis

of
of

(8/5)
covertible debentures,
$100 principal amount

debentures for each 40 shares
record

writer

of

common

Aug. 5, 1959; rights to expire

25, 1959.
Probable

on

held

stock
or

To

be

determined

by

to
of
of

about Aug.

Proceeds—For construction program.

—■

competitive

Under¬
bidding.

bidders:

Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc., White, Weld & Co. and Smith, Barney & Co.
(jointly); Ladenburg, Thalmann & Co.; Lehman Brothers,
Bear Stearns & Co., Eastman Dillon, Union Securities
& Co., Kidder, Peabody & Co. and Salomon Bros. &
Hutzler
(jointly).
Bids—Expected to be received on
Aug. 5.
Paco

Participating Annuity Life Insurance Co.
variable annuity policies. Pro¬
Office
Hathcock Building,
Fayetteville, Ark. Underwriter—None.
June 4 filed $2,000,000 of
—
For investment.

Products, Inc., Pacolet, A. C.
of

common

Price—To be supplied by amendment.
bank loans and for general corporate

Pall

stock

(par $1).

Proceeds—To pay
purposes.
Under¬

Clark,

Kirkpatrick, Inc., Nashville, Tenn.

(7/22)
June 25 filed $750,000 of 5Vz% subordinated convertible
debentures, due July 1, 1974, and 40,000 outstanding
shares of class A stock. The 40,000 shares of class A stock
will be sold for the account of certain selling stockhold¬
ers.
Price—To be supplied by amendment.
Proceeds—
To liquidate short-term bank loans; to retire $115,000
of 7V2% debenture bonds and $15,000 of 8% debenture
bonds; to be applied to repayment of loans owing to
principal stockholders on open account; chattel mort¬
gages on machinery will be retired; and for working
capital. Office—30 Sea Cliff Ave., Glen Cove, L.'I., N. Y.
Underwriters
L. F. Rothschild & Co., Paine, Webber,
Jackson & Curtis, and Hayden, Stone & Co., all Of New
Corp.

—

York.

Pasadena, Calif.
shares of common stock (par $1).,

19 filed 20,000

Proceeds—For

market.

investment.

Unddr^

Pennsylvania Electric Co. (8/4)
15 filed $15,000,000 of first mortgage bonds due
Aug. 1, 1989. Proceeds — Will be applied to repayment
June

of short-term bank loans

incurred for construction pur¬

poses, and for 1959 construction expenditures. Under¬
writer—To be determined by competitive bidding. Prob¬

able bidders: Halsey, Stuart & Co. Inc.;

Equitable Secu¬
Kidder, Peabody & Co.; Eastman Dillon/
Co., Merrill Lynch, Pierce, Fenner &
Smith, Inc. and White, Weld & Co. (jointly); The First
Boston Corp.; Harriman Ripley & Co. Inc. and Blyth &
Co., Inc. (jointly). Bids—Expected to be received up to
11 a.m. (EDT) on Aug. 4 at the offices of General Public
Utilities Corp., 67 Broad St., New York 4, N. Y.
Corp.;

Union Securities &

Philippine Oil Development Co., Inc.
April 10 filed 221,883,614 shares of capital stock, being
offered for subscription by holders of outstanding stock
at

the rate

Record

of

one

new

June

date

2,

share

for each

two shares held.

1959; right expire July

31, 1959.
Proceeds—For working cap¬
Building, Plaza Cervantes, Manila

Price—1% cents per share.
ital.

Office—Soriano

(P.

Underwriter—None.

I.).

Corp., College Point, L. I., N. Y.
*
(letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
Purchase and installation of machinery; electronic and
optical test equipment; purchase and installation of fix¬
ture^ and for working capital. Office — c/o McNabb,
Sommerfield & James, 40 Exchange Place, New York,

June 9

N.

Y.

N.

Y.

Underwriter—M.

H.

Woodhill,

Inc., New

York,

Piedmont Aviation, Inc.
May 6 (letter of notification) 81,714 shares of common
stock (par $1) being offered to stockholders at the rate
of 1/14 of

a

share for each share held

Rights to expire
share.

on

June 30,

as of May 22, 1959.
Price — $3.50 per
capital. Address—Smith

1959.

Proceeds—For working

Reynolds Airport, Winston-Salem, N. C.

Underwriter—

None. ■>

it Pioneer Finance Co.
July 13 filed $1,000,000 of subordinated capital deben¬
tures due Aug. 1, 1971 (with warrants).
The securities
are to be offered for public sale in units, each consisting
of

$1,000 principal amount of debentures and

a

warrant

entitling the holder to buy 75 shares of common stock.
Price—To

be

Proceeds—For
Office—1400 National Bank
Bldg., Detroit, Mich. Underwriters—White, Weld & Co.,
New York, and Watling, Lerchen & Co., Detroit.
supplied

amendment.

by

general corporate purposes.

Plastic Wire & Cable

June 5 filed 40,000

ing

Corp.

shares of common stock (par $5) be¬

offered for subscription by holders

stock at the rate of
held

one

new

of outstanding

share for each five shares

rights to expire on July 27.
Price—
To
be supplied by
amendment.
Proceeds—To repay
outstanding bank loans, for construction expenditures
and for other corporate purposes.Underwriter—Putnam
& Co., Hartford, Conn.
on

July 7;

Pressed

Metals of America,

Inc.

April 17 filed 90,000 outstanding shares of common stock.
Proceeds—To selling stockholders. Office—Port Huron,
Mich.

Underwriter—None.

Statement effective June 10.

Co., Mesa, Ariz.
400,000 shares of common stock to be
subscription by holders of stock purchase
rights acquired in connection with life insurance policies
issued by Dependable Life Insurance Co. and to certain
agents and brokers of Producers Fire & Casualty Co.
Price—$5 per share.
Proceeds—For working capital.
March

(7/29)

writers—A. M. Law & Co., Spartanburg, S. C., and
&

—

Packman Plan Fund, Inc.,

Producers

Landstreet

of

(7/29)

ceeds

•

Pacific Power & Light Co.

June 30 filed 200,000 shares
common

cent) to be offered on an all or none basis.
share. Proceeds—To pay bank loans, re¬

outstanding

selling stockholders.

be

North American

Yacht Co., Inc.
(7/27-31)
filed 300,000 shares of common stock, (par $1).
To be supplied by. amendment. Proceeds — To

—

July

both

Phototronics

May 20 filed 200,000 shares of common stock (par 10
cents). Price—$3 per share. Proceeds — For repayment
of outstanding obligations and for working capital. Un¬

stock, of which

1,000.000 shares

will

Corp., New York, N. Y.

derwriter—Investment Bankers of America, Inc., Wash¬
ington, D. C. Offering—Expected in July.

Ltd,

June 11 filed 1,265,000 shares of common

Weeks,

Cleveland, Ohio. Underwriter—Fulton, Reid & Co., Inc.,
Cleveland, Ohio.

rities

Office—513 Interna¬
Mart, New Orleans, La.
Underwriter —
Co., Inc.-, New Orleans, La.

Trade

&

*•

writer—Investors Investments Corp., Pasadena, Calif.

Ohio Oil Co.
22

<

43,500 outstanding shares of common stock
(no par). Price—To be supplied by amendment. Proceeds
—To selling stockholders. Office — 777 East 79th St.,

—

be offered

and

102,600
stockholders.

selling

amendment.

Main

(7/20-24)

133,800 shares of

company

certain

Co.

■

Price—At

(without

Hornblower

and

Park Drop Forge Co.

May

June

the

June 25 filed

investment in real estate syndicates and other real
estate. Office—9 Clinton St., Newark, N. J. Underwriter

tional

Co.

Brothers

—None.

loans and for investment purposes.

Tool

Lehman

for

withdrawn

proposed underwriter.

r

•

May 4 (letter of notification) 300,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—
For exploring and recovering
strategic metals and pro¬
ducing same. Underwriter—Caldwell Co., 26 Broadway,
stock

portion of the funds

as a

acquisition of jetpowered aircraft, including all cargo aircraft and related
flight and ground equipment, or both. UnderwritersNew York.

Minerals, Inc., Keystone,

Oil, Gas & Minerals, Inc.
April 2 filed 260,000 shares of common stock (par 35
cents.
Price—$2 per share. Proceeds—To retire bank

as

addition to working capital, or
required -in ^connection with

Co., Lbs Angeles, Calif.; and Blyth & Co., Inc., New

Northwest Defense

Airways, Inc. (8/12)
$46,962,100 of convertible subordinated

filed

July 29, 1959; rights to expire on Aug. 12. Price—To be
supplied by amendment. Proceeds — To be used as an

York.
•

29

debentures due 1979, to be offered on a basis of $100 of
debentures for each 14 shares of capital stock held on

Northrop Corp.

_

39

Pan American World

June

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., has
Nedow Oil

•

July 22 at 231 So. LaSalle

on

June 15 filed

New

Corp., New York.

(247)

offered

31

Fire

& Casualty

filed

for

Underwriter—None.
•

Public

Service

June 24 filed

Co.

of New

Hampshire

(7/23)

(par $5).
Proceeds—To be

396,000 shares of common stock

Price—To be supplied by

amendment.

applied to reduction of short-term bank loans.
Under¬
writer—Kidder, Peabody & Co., and Blyth'& Co., Inc.,
both of New York, N. Y.
Public

Service

Co. of New

Hampshire

(7/29)

June 24 filed $8,000,000 of first mortgage bonds,
due 1989. Proceeds—To be applied to reduction
term

bank

loans.

Underwriter

—

series K,
of short-

Tck^be determined by

competitive bidding. Probable biddeJs: Halsey, Stuart &
Co. Inc.; Blyth & Co., Inc. and Kidder, Peabody & Co.

(jointly); The First Boston

Corp. and White, Weld &
Continued on page 40

The Commercial and Financial Chronicle

Continued from page 39
Glore, Forgan & Co.; "Salomon Bros. &
hfe received until 11 a.m. (EOT; on

(jointly);

Co.

Hutzler. Bids—To

(

July 29.

Syracuse, N. Y.
120,000 shares of common stock ($1 par).
Price—$3 per share. Proceeds — To liquidate notes and
mortgages, and for new equipment and working capital.
Underwriter—Charles Plohn & Co., New York. State¬
Design Corp.,

Radar

•

26 filed

Mav

withdrawn.

ment

Investment Co.

Radinsky
June 1 filed

(par $1).

100,000 shares of common stock

purchaser of stock is entitled to receive one stock
purchase warrant for each five shares of stock acquired.
The warrants will entitle the holder to acquire one Share
of common for each five shares of stock acquired. Price
Each

Proceeds—For working capital. Office—

—$2 per share.

Colo. Underwriters —
Amos C. Sudler & Co., and Purvis & Co., both of Denver,
Colo. Offering—Expected in August.
Denver,

Ave.,

Colfax

W.

2000

+ Rad-Q-Lite, Inc.
,
July 8 filed 300,000 shares of common stofck (par 250).
price
$1.50 pet share. Proceeds — For general corpo¬
—

rate purposes. Office—1202 Myrtle St., Erie,
writer—John G. Cravin & Co., New York.

Pal Under¬
Offering—

V <

September.

in

Expected

Raytherm Corp. (7/23)
150,000 shares of common stock, of which

118,000 shares are to be offered for the

company's ac¬

be offered
for the account of certain selling stockholders.
Price—
count and the remaining 32,000 shares are to

supplied by amendment, proceeds — To retire
bank loans, to expand plant capacity and research facili.ties through purchase of machinery and equipment and
through leasehold improvements; and the balance for
working capital. Office—Oakside at Northside, Redwood
City, Calif. Underwriters—Blyth & Co., Inc., San Fran¬
cisco and New York; and Schwabacher & Co., San Fran¬
be

To

.

(7

erties

additions and improvements to prop¬

for

facilities.

and

•

Deetjen

Underwriters—Emanuel,
Co., both of New York.

& Co. and Bache &
Reheis

Co., Inc. (7/20-21)
June 5 filed 87,000 outstanding shares of class A stock

(par $1). Price
in

per

Business

stockholders.
chemicals

$5

—

bulk

share. Proceeds

—

Manufactures

and

—

To selling
sells

fine

pharmaceutical
manufacturers, and cosmetic manufacturers. Underwrit¬
primarily

to

ethical

er—Aetna Securities Corp., New York.
•

Republic Resources & Development Corp.

June 29 filed

1,250,000 unit shares of capital sto^k. Price
—$2 per share. Proceeds—To be used in the'company's
oil exploration program for the purchase of oil explora¬
tion and drilling equipment, supplies and materials; to
contract with U. S.

Petroleum Ltd., Alberta, Canada
26, 1958 filed 1,998,716 shares of common stock
(par $1). Of this stock, 1,174,716 shares are to be sold
on
behalf of the company and 824,000- shares for the
account of certain selling stockholders.
The company
proposes to offer the 1,174,716 shares for subscription
by its shareholders at the rate of one new share for
each three shares held (with an oversubscription privi¬
lege). The subscription period will be for 30 days fol¬
lowing issuance of subscription rights.
Price—To be
supplied by amendment. Proceeds—To pay off demand
note, to pay other indebtedness, and the balance if any
will be added to working capital. Underwriter—Pacific
Securities Ltd., Vancouver, Canada.
Richwell

June

Rittesr (P. J.) Co., Bridgeton, N. J.
June 18 filed 4,827 shares of preferred stock, non-cumu¬
lative, voting, (par $100) and 60,018 shares of common
stock (no par) to be offered to the holders of preferred
and common stock of Brooks Foods, Inc., at the rate

of one share of Ritter preferred stock for each share
stock

of

Brooks.

stock
Ritter

of Brooks and
for

each

two

share

of

its

of

shares

of

common

common

stock

of

The

stockholders
of

its

who

outstanding

own

an

common

aggregate

stock,

or

of

18,805

approxi¬

mately 62.5%

of such stock, and who have agreed to
accept the exchange offer upon effectiveness of the reg¬
istration statement.
•

Rowe

Furniture

•/

Corp., Salem, Va. (7/21-22)
June 9 filed 165,000 outstanding shares of common stock.
Price—To be supplied by amendment. Proceeds—To sell¬
ing stockholders. Underwriter—Francis I. duPont & Co,,
Lynchburg, Va., and New York.
Royal Dutch Petroleum Co./Shell Transport &
Trading Co.
May 27 Royal Dutch filed 794,203 shares (nominal par
value of 20 Netherlands Guilders each), and Shell Trans¬
port filed 1,191,304 ordinary shares (£ nominal value).
According to the prospectus, an offer has been made




of

common

(par one

(7/16-17)

Standard Aircraft Equipment Co., Inc.

(letter of notification) 75,000 shares of common

(par 50 cents). Price—$4 per share. Proceeds—For
general corporate purposes; working capital and for
specialized equipment. Office—241 Old Country" Road,
Mineola, New York. Underwriter—Adams & Peck, New
stock

Price—

stock.

be supplied by amendment.
Proceeds — To be ap¬
plied in partial payment of 5% note due April 1, 1961.
Office
120 Twenty-fifth Ave., Bellwood, 111.
Under¬
writers—Stifel, Nicolaus & Co. Inc., St. Louis, Mo.; and

York, N. Y.

—

St.

Bagging Co.
common

For

shares of

to offer

standing shares of

will

(par one cent). Price—$1 per share. Proceeds—
mortgages, land, paving roads, loans payable, adver¬
tising, etc. Office—305 Morgan St., Tampa 2, Fla. Under¬
writer—Stanford Corp., Washington, D. C.
stock

Regis Paper Co.
proposes

pany

Stelling Development Corp.
(letter of notification) 300,000 shares of common

June 8

Co., Inc., New York.

June 26 filed 30,000

common

this stock

the basis of 0.6782 of

on

for each share

declare the

The com¬
for out¬

stock.

exchange

in

stock of Lone Star Bag and

common

•

share of St. Regis

a

of Lone Star common.

enable it to

control the

about

stock

of

of

shares of
42nd

stock

of Chemical.

Office

—

150 East

Underwriter—None.

it Sea View Industries, Inc. (8/26)
July 14 filed $420,000 of convertible subordinated

de¬
Price—$340
unit of two debentures at $100 par and 40 shares Of
common
stock at $3.50 per share.
Proceeds—To retire
loans; for machinery and equipment; and to add to
working capital.
Office—3975 N. W. 25th Street, Miami,
Underwriter—Michael

York

G.

Kletz

&

stock

Proceeds—For

(7/28)

Fdr

_

and

equipment. Underwriter—Eastman Dillon, Union Se¬
curities & Co., New York.

Skaggs Leasing Corp.
June 4 (letter of notification) 240,000 shares of common
stock (par $1).
Price—$1.25 per share. Proceeds—For

that

may

July 2 filed

new

common

(par $4)

stock

share for each three shares held.

curred

and

to

troduction of

Proceeds—To be applied for costs in¬

be

incurred

line

of

in

connection

with

the

new

None.
•

July 8 filed 1363400 shares of outstanding common stock
(par 10 cents).' Price—To be supplied by amendment.
Proceeds—To selling stockholders.
Business—The com¬
pany

Ga.

York.

be

owns

and operates a nitrogen plant at

Underwriter—Harriman

Ripley

&

Co.

Savannah,

Inc.,

New

stock, of which

sold

for

certain

the

Manitoba, Canada. Un¬
McDowell, Chicago and

Super-Sol Ltd.
'

shares of common stock. Price—
pounds—equivalent to $11 per
funds), payable up 4o 90% in State of
Independence Issue and Development Issue Bonds,

March 25 filed 250,000
At par (19,800 Israeli
share
Israel

gram.

Nitrogen Co., Inc. (8/3-7)

(7/29)

300,000 shares of common

in U.

S.

and the balance

Southern

least 90% of the outstanding
extended for additional

New York.

in¬

office

dictating equipment;
payment of installment notes with interest; payment of a
bank indebtedness; payment and interest on notes pay¬
able; and for general corporate purposes. Office—8 Middletown Avenue, North Haven, Conn.
Underwriter—
a

at

capital.
Office—St. Boniface,
derwriter—Straus, Blosser &

Record date July 2,1959; Rights expire July 29, 1959. Price

—$14 per share.

own

the remaining 200,000 shares
company's account (par 25 cents
Canadian).
Price — To be supplied by amendment.
Proceeds—For reduction of bank loans and for working
will

being offered for subscription by common stockholders
one

was

stockholders, and

selling

13 filed 126,254 shares of

will

100,000 shares will be offered for the account of

Soundscriber Corp.

at the rate of

Sunray

Supercrete Ltd.

Employees

commoia^stock which
be purchased under the Plan. Office—Tulsa, Okla.

May

filing

Suntide shares. Offering may be
30 days. Underwriter—None.

shares of

in

The

posit by Aug. 7, 1959 of sufficient shares of Suntide so

general corporate purposes. Office—307Vz W. 19th Street,
Cheyenne, Wyo. Underwriter—Harrison S. Brothers &
Co., Salt Lake City, Utah.
Participations

America.

Sunray Mid-Continent Oil Co.
May 19 filed 525,000 shares of common stock to be of¬
fered in exchange for common stock of Suntide Refining
Co. in the ratio of one share of Sunray for each three
shares of Suntide.
The offer is conditional upon the de¬

Creek, N. Y. Un¬
derwriter—Maltz, Greenwald & Co., New York.

of

of

Option Plans. Office—Tulsa, Okla.

Central Ave. and Mechanic St., Silver

16,129

Co.

to

it Sunray Mid-Continent Oil Co.
July 14 filed 521,132 shares of common stock reserved
for issuance upon the exercise of options granted or
authorized under the company's 1952 and 1959 Stock

30 filed 1,550,000 shares of common stock (par
cents), of which 200,000 shares are to be offered for
the account of the company, and 1,350,000 shares for
account of selling stockholders.
Price—To be supplied
by amendment. Proceeds—For working capital. Office—
10

and

Insurance

order

ment.

(8/4)

March

Plan

the preferred stock on and after
conversion price of $3 per share,

provide a prospectus for use by the
preferred shareholders who may wish to offer or sell
shares of the preferred and/or common stock.
Bear,
Stearns & Co., one of the preferred stockholders, will
initially offer for public sale 550 shares of preferred
stock owned by it, at a price to be supplied by amend¬
in

made

years.

Thrift

1,

Prudential

$3,000,000 of 20-year subordinated deben¬
tures, convertible into cgmmon stock during the first 10

• Skelly Oil Co.
July 8 filed $1,000,000

Corp.

filed

(taking the preferred at $100 per share). The preferred
was originally issued by the company in October
1958, to 20 banks and three insurance companies pur¬
suant to a corporate reorganization. The largest blocks
of preferred stock are now held by two insurance com¬
panies—the Metropolitan Life Insurance Co. and the

June 29 filed

Corp.

Underwriter

stock

including additional working capital. Underwriter
—White, Weld & Co., New York.

Precision

general corporate purposes.

Co., St. Louis, Mo.

conversion of
1961, at the

upon

Jan.

outstanding notes and for general corporate pur¬

Silver Creek

&

stock

poses,

•

or

165,000 shares of $5 convertible preferred
(par $100) and 5,500,000 shares of common stock
(par $1). The 5,500,000 shares are reserved for issuance

July 1

Proceeds—To

Price—To be supplied by amendment. Proceeds—
general corporate purposes
including additional
working capital and "further modernization" of plant

on

Kansas City, Mo.

Studebaker-Packard

City.

Seiberling Rubber Co.

the

at

(letter of notification) 23,169 shares of common
(par $1). Price—To be supplied by amendment.

—White

Seeburg Corp. (7/21)
June 19 filed $5,135,000 of 20-year convertible subordi¬
nated debentures, due Aug. 1, 197.9, to be offered for
subscription by common stockholders at the rate of
$100 principal amount of debentures for each 23 shares.
Record date July 21, 1959; rights expire on or about Aug.
retire

shares held

payment of bank loans; for payment of

Stuart Hall Co.,

Co., Inc., New

Price—To be supplied by amendment.

stockholders

five

each

June 8

•

10.

common

for

New York.

bentures and 84,000 shares of common stock.
per

Fla.

by

share

a note; for
capital; for expenditures
by Strategic-Udy
Metallurgical & Chemical Processes Ltd., which owns
and operates a pilot plant at Niagara Falls, Ontario, and
is a subsidiary of Stratmat Ltd., Strategic's
principal
subsidiary, and by its other direct subsidiary, StrategicUdy Processes, Inc., which owns and operates a labora¬
tory at Niagara Falls, >N. Y.; as working capital for a
mining subsidiary; for payment of a mortgage; and as
working capital for another subsidiary. Underwriters—
S.
D. Lunt
& Co., Buffalo, N. Y.;
and Allen & Co.,

Chemical Packaging Corp. on the basis of one
St. Regis common for each five and one-half
common

new

working

20,000 shares of common stock (par $5) to
by the company to the holders of the common

St., New York.

subscription

one

July 20, 1959; rights to expire on or about Aug. 12,
Price—To be supplied by amendment. Proceeds—

1959.

For

business operations and policies

Regis Paper Co.

share

of

rate

are

of Lone Star.

be offered

for

fered

deposited
for exchange, and may elect to do so if a lesser percent,
but not less than 80%, of all the Lone Star common will
common

Strategic Materials Corp. (7/29)
filed 368,571 shares of common stock, to be of¬

June 29

St. Regis

exchange offer effective if 95% of the

outstanding shares of Lone Star

of

exchange offer is being made by Ritter in
accordance with its agreement with Brooks and certain
shares

•

Manufacturing Co., Inc.

shares

Inc.

461,950 shares of common stock

None.

To

geophysical contractors for technical

services; and to pay its pro rata shares of the dollar
exploration expenses under its agreement with three
other companies for joint exploration of concessions held
In the Philippines. Office — 410 Rosario St., Binondo,
Manila, Philippines. Underwriter—John G. Cravin & Co.,
Inc., New York.
Offering—Expected in September.

preferred

30,000

(Delaware)

Arenas

Sports

Nov. 18 filed

cent). Price—At the market (but in no event less than
$6 per share). Proceeds—To selling stockholders. Office
—33 Great Neck Rd., Great Neck, N. Y. Underwriter—

June 24 filed

sinking fund de¬
bentures, due July 15, 1974, with attached warrants to
purchase additional shares of common stock, to be of¬
fered in units consisting of a $1,000 temporary debenture
with attached warrants in an amount to be determined
at the time of offering. Price—To. be supplied by amend¬
ment. Proceeds—To repay in full long-term bank loans,
and the balance will be added to the general funds of the
company and will be available to meet increased cash
requirements resulting from increased investment in in¬
ventories and

filed

present

two

None.

27-31)

29

St.

Reading Tube Corp. (7/16)
15 filed $5,000,000 of 15-year

June

expand

che number of alley beds by

June 12

June

Inc.^

(Delaware)

filed

18

establishments by increasing
eight at Yorktown Heights
and 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—

(o

ment effective June 17.

Clair Specialty

Thursday, July 16, 1959

mpplied by amendment. Proceeds—$750,000 to pay AMF
Pinspotters, Inc. for bowling alley beds; $350,000 to pay
(or other installations, fixtures and equipment; $85,000

Dutch/Shell group of companies, wjhich owns
about 21% of the issued share capital of Canadian Eagle,
will waive its right to participate in such distribution.
Canadian Eagle shareholders owning the remaining 23,826,072 ordinary shares of Canadian Eagle will there¬
fore receive two Royal Dutch shares and three Shell
Transport ordinary shares in respect of every 12 shares
of Canadian Eagle held. The offer is to be voted upon
by Canadian Eagle shareholders at a meeting to be held
July 21, 1959. After the shares of Royal Dutch and Shell
Transport have been
distributed to Canadian Eagle
shareholders, Canadian Eagle is to be dissolved. State¬

cisco, Calif.

.•

.

$2,000,000 of 6% 10-year convertible deoentures (subordinated), due Jan. 1, 1969.
Price—To be
Nov.

the Royal

St.

Arenas

Sports

by Royal Dutch and Shell Transport to Canadian Eagle
Oil Company Limited, for the whole of its assets and
business. Pursuant to the offer, there would be allotted
to Canadian Eagle, for distribution in kind to its share¬
holders, 3,971,012 fully paid shares of Royal Dutch and
5,956,518 fully paid ordinary shares of Shell Transport.
Bataafse Petroleum Maatschappij, N.V., a company of

Walston &

June 29 filed

•

.

(248)

40

Office

—

in cash.

79

Ben

Proceeds—For expansion pro¬

Yehuda St., Tel Aviv, Israel.

Underwriter—American Israel Basic Economy Co., New

York, N. Y.

Statement effective June 24.

•
Superior Window Co. (7/24)
May 15 filed 50,000 shares of 70-cent cumulative con¬
vertible preferred stock (par $8) and 125,000 shares of
class A common stock (par 10 cents). Price—For pre-

Volume

Number

190

5864

.

.

.

The Commercial and Financial Chronicle

(249)
ferred

stock, $10,per share; and for

common

Fla.

ment.

150,000 shares of class B
(par $1). Price—$2 per share. Proceeds—

company against property additions and
additional notes.

high-yield mortgages and investment certificates,
industrial building leases and other investments.
Office
•—Harvey Bldg., Suite 907, West Palm Beach, Fla.
Un¬

•

derwriter—None.

Road, Waltham, Mass.
Co., Inc., New "York.

Underwriter

—

construction r of

N. Y.

Underwriters—Charles Plohn

&

Co.

and

•

Tuboscope Co.

Tungsten Mountain Mining Co.
May 21 (letter of notification) $100,000 principal amount
of 7% first
mortgage convertible bonds, to be offered
in denominations of $500 and
$1,000 each. Price—100%
of principal amount. Proceeds—For
construction, instal¬
lation of machinery and equipment and
working capital.

Nether¬

Office—511 Securities Building, Seattle
1, Wash.
writer—H. P. Pratt & Co., Seattle
United States

upon the plant leased to Microwave,
and
working capital.
Office—1500 Massachusetts Ave¬
nue, N. W., Washington, D. C.
Underwriter — E. L.
Wolf Associates,
Inc., Washington, District of Columbia.

selling

•

Ten

Keys,

Lumber Co.

and the redemption of 38,084 shares of the
company's series A 3%% cumulative preferred stock
(par $100), and a maximum of 9,551 shares of its series
B, 3%% convertible cumulative preferred stock, $100
par.
Underwriter—Eastman Dillon, Union Securities &

To be supplied by amendment.

stockholders.

Chicago, 111. Underwriter
Co., Chicago and New York.

Office—135
—

South

White, Weld &

Co., New York.

Inc.,

Providence, R. I. (7/29)
April 28 filed 973,000 shares of capital stock (par $1).
Price—$5.40 per share. Proceeds—For investment. Office
—512 Hospital Trust
Bldg., Providence, R. I. Distributor
—E.

R. Davenport &

•

short-term notes issued in

connec¬

a

Terminal Tower Co., Cleveland, Ohio
May 29 filed $3,300,000 of 6% sinking fund debentures
due July 1, 1969, with common stock purchase warrants
for the purchase of the company's common stock at the
price of $30 per share and at the rate of 10 shares for
each $1,000 of debentures. Price — 100% of
principal
amount.
Proceeds
For acquisition of the Terminal
Tower Building, Cleveland, Ohio. Underwriter—Fulton
Reid & Co., Cleveland, Ohio. Offering—Expected latter
part of August.

&

24

than
no

$120

less

a

than

Associates

Ave., New York 16, N. Y. Un¬
Co., Inc., New York, N. Y.

Transcon

Petroleum & Development
Corp.,
Mangum, Okla.
(letter of notification) 300,000 shares of com¬
mon
stock.
Price—At par ($1 per snare).
Proceeds—
For development of oil properties.
Underwriter—First

March 20

Washington, D. C.

Transcontinental

Gas Pipe Line Corp.
(7/22)
150,000 shares of cumulative preferred
stock (without par value—stated value $100 per share).
Price—To be supplied by amendment.
Proceeds—For
prepayment of notes outstanding under revolving credit

filed

balance to be, deposited with the trustee
company's mortgage as the basis for issuance
of a portion of new bonds. The amount so deposited is to
be withdrawn by the company against property addi¬
tions and used to prepay additional notes. Office—3100

agreement,
under the

St., Houston, Tex. Underwriters—White, Weld &
Co., and Stone & Webster Securities Corp., both of New

in¬

year

$1,500

for
for

annual premium

(7/21)

Associates

(7/21)
$4,000,000 of convertible subordinated de¬

24 filed

bentures, due July 15, 1974. Price
amendment.
and

to

— To
be supplied by
general corporate purposes
working capital. Office — 611 Hansey

Proceeds—For

increase

Way, Palo Alto, Calif. Underwriter—Dean Witter & Co.,
San

Francisco

and

Voss Oil Co.

New York.

100,000

shares

share.

per

of

Proceeds

class
—

A

For

common

working

Street, N. W. Washington, D. C.

stock.

capital.
Under¬

writer—None.

•

•
Wellington Electronics, Inc. (7/20-24)
May 6 filed 240,000 shares of common stock (par 75
cents.
Price—$6 per share. Proceeds—For repayment
of a bank note; to complete the automation of
the etched
foil production plant at
Englewood, N. J.; for manu¬

facture of machines to

be leased to capacitor manufac¬

turers; and for working capital. Office -— Englewood,
Underwriter—Charles Plohn & Co., New York.
Western

California

Telephone Co.

June

1 filed 44,729 shares of common
stock, being of¬
fered for subscription by stockholders of
record June

17,

1959, at the rate of
and

one new share for each three
common,
share for each five shares of preferred stock
that date. Rights expire on
July 15.

one new

held

on

Price—$17.50
share. Proceeds—Together with other
funds, will be
applied to the repayment of borrowings for construction

per

and/or for additional construction in 1959.
Office—15900
San Jose-Los Gatos
Road, Los Gatos, Calif. Underwriter
—None.

Western Empire Life Insurance Co.
29 filed 212,000 shares of common

June

stock

and

op¬

tions to purchase
172,701 shares (plus the underlying
shares). The company proposes to make a public offer¬
ing of three blocks of stock in amounts of
40,430, 38,570
and 36,935 shares, at
prices of $1, $2 and $3, respectively. *
The remaining
96,065 common shares and options for the
172,701 shares (together with shares
underlying such
options) are to be offered by the present holders thereof.
The

options permit purchase of the
underlying shares
$1 per share.
Proceeds—For general corporate
pur¬
poses. Office—2801 East Colfax
Ave., Denver, Colo. Un¬
derwriter—None.
at

• Wilcox
Electric Co.
(7/27-31)
June 24 filed 318,736 shares of common

stock (par $3),
175,000 shares are. to be offered for the account
Jay V. Wilcox, President, and 143,736 shares are to

of

be offered for the account of the
company. Price—To be

jsupplied by amendment. Proceeds—To

outstand¬

repay

ing short-term bank loans

and for working capital. Office
Avenue, Kansas City, Mo. Underwriters
—Lee Higginson Corp., New
York, and Stern Bros. &
Co., Kansas City, Mo.

—1400 Chestnut

Wyoming Corp.
Nov. 17 filed 1,449,307 shares of common
stock. Of these
shares 1,199,307 are subject to
partially completed sub¬
scriptions at $2, $3.33 and $4 per share; and -the addi¬
tional 250,000 shares are to be offered
initially to share¬
holders of record Nov. 1,
1958, in the ratio of one new
share for each 2.33 shares held on that date.

Prioe—$4

share.

per
on

Proceeds—$300,000 will be

contract to purchase

used for payments
shares of International Fidelity

Insurance Co.; $325,000 for capitalization of
ance

company;

ance

company; $500,000 for additional
to Great Plains Development

tion

$500,000 for capitalization of

fire insur¬

a
a

title insur¬

capital contribu¬

Co.; and $300,000 a®
additional capital contribution to Great Plains
Mort¬
gage Co. Office—319 E. "A" St.,
Casper, Wyo. Under¬
writer—None.

an

G.

and for working capital and other corporate
Office—211 South Seneca St., Newcastle, Wyo.
Underwriter—Hill, Darlington & Co., New York.

program,

Vulcan Materials

Co., Mountain Brook, Ala.
7 filed 252,526 shares of common stock, of which
142,526 shares represent the balance of 250,000 shares

May

issuable upon

the/exercise of options granted key

em-

ployees under the company's Employees Stock Option
Plan.
The remaining 11G,000 shares are to be issued to
stockholders of Greystone Granite Quarries, Inc., and
Pioneer Quarries Co., both North Carolina corporations,
and to certain other parties in exchange for all the out¬
standing capital stock of Greystone and Pioneer and
certain real and personal properties operated under lease
by Pioneer.
,

•

^Zapata Off-Shore Co. (8/4)
July 13 filed 229,585 of common stock. Price —To be
supplied by amendment. Proceeds—To Zapata Petroleum
Corp., the selling stockholder. Office—2218 First City
H.

Bank' Bldg.,

Walker

Houston, Texas.
Co., New Y6rk.

&

Underwriter—

common

purposes.

'

if Xttrium Laboratories, Inc.
July 6 (letter of notification) 30,000 shares of class A
common
stock
(par $7.50). Price—$10 per share. Pro¬
ceeds—For research, to purchase
equipment, advertis¬
ing and working capital. Office—415 W. Pershing
Rd.,
Chicago, 111. Underwriter—None.

National

(7/20-24)

stock,
of which 231,779 shares will be issued to creditors. Price
—$l.per share. Proceeds—To be used for a waterflood

A

Park

and

consisting

filed

Varian

June

Co.,

if Trans Central Petroleum Corp. (8/13)
July 6 (letter of notification) 1,000,000 shares of common
stock (par one cent). Price—10 cents per share. Proceeds
—For expenses to explore for gas and oil and
develop¬

'

purchase

equipment,

includ¬

and New York.

>

.

general funds of
purposes,

May 27 filed 1,231,779 shares of class A

Underwriter—Shields

....

less
and

$5

Office—1507 M

—

250,000 shares of common stock. Price—
supplied by amendment. Proceeds—For working
capital; to repay loans; and for additional equipment.

York.

the

for

processing

new

the

20,000 shares of capital stock (par $1).
Price
To be supplied by amendment. Proceeds — To
selling stockholders. Office—611 Hansen Way, Palo Alto,
Calif. Underwriter—Dean Witter &
Co., San Francisco

filed




to

corporate

York.

Varian

June

be

Travis

for

single premium
conL cts.
Proceeds—For investment, etc.
Office—1832
M Street, N. W., Washington, D. C. Underwriter—None.

if Tool Research & Engineering Corp.

24

added

be

used

expenditure

of

contracts

—

June

and

$250,000

Price—No

Tip Top Products Co.
May 29 filed $850,000 of 6% first mortgage sinking fund
bonds, series A (with warrants for 17,000 shares of class
A common stock), and 100,000 shares of class A common
stock. Price
For stock, $10 per share; for
bonds, at
100% of principal amount. Proceeds—To retire the pres¬
ent mortgage debt of the company, to pay off shortterm bank borrowings, and for working capital. Office—
1515 Cuming St., Omaha, Neb. Underwriters — J. Cliff
Rahel & Co., Omaha, Neb.; and The First Trust Co. of
Lincoln, Neb.

Investment Planning Co.,

June

Annuity Life Insurance Co. of America
April 21 filed $4,000,000 of Variable Annuity Policies.

•

derwriter—Barnett &

record

Variable

—

Office—Two

of

principally of two additional treaters for its Santa Ana
(Calil.) plant.
Underwriter — Dominick &: Dominick,

New

•

ment.

held

Proceeds—To

stallation

New York.

New York.

shares

company

ing

pur¬

Office—Compton, Calif.

six

the

Underwriters—Stone & Webster Securities Corp.,
White, Weld & Co. and Halsey, Stuart & Co. Inc., all of

14

each

stock,

poses.

July

S.

30, 1959, at a
price of $19.50 per share. Rights expire July 31, 1959.
The remaining 15,000 shares are to be sold
by certain
selling stockholders. Price — $21.50 on publicly "Offered

tion with the company's construction
program; to finance
additional capital outlays, and for general corporate

To

U.

for

(7/21)

July 2 filed $50,000,000 of first mortgage pipe line bonds,
due Nov. 1, 1979. Price—To be
supplied by amendment.
Proceeds—To rep^y

filed

—

of which

Polymeric Chemicals, Inc. (7/17)
June 11 filed 71,080 shares of common stock
(par 50
cents), of which 56,080 shares are to be offered for sub¬
scription by stockholders at the rate of one new share

Co., Providence, R. I.

Tennessee Gas Transmission Co.

(7/28)

1, 1969.
Price—To be supplied by amendment.
Pro¬
ceeds—Together with other funds, for purchase of all of
the assets (subject to the liabilities), of the
Booth-Kelly

Management Corp. (7/27-31)
July 1 filed 206,500 outstanding shares of common stock
Proceeds—To

Plywood Corp.

June 10 filed $15,000,000 of 20-year subordinated deben¬
tures due July 1, 1979 (convertible into common to
July

Shares

LaSalle St.,

Under¬

4, Wash.

provements

—

3

Price

—

and

for

cent). Price

June

N. J.

inspection of drill pipe and other oil field tubular prod¬
ucts. Underwriters
Glore, Forgan & Co., New York;
and Rowles Winston &
Co., Houston, Tex.

Technology,

one

(7/27)

Road,**
Houston, Tex. Business—The non-destructive testing and

May

(par

Underwriter—Kidder, Peabody &

—

Securities Co., Inc., both of New York.

Television

To

June 26 filed 200,000
outstanding shares of common stock
(par $2). Price—To be supplied by amendment. Proceeds
—To selling stockholder. Office
2919 Holmes

Inc.
15 filed 325,000 shares of common stock (par 10
cents).
Price—$4 per share.
Proceeds—To pay off in
full
the
subscription of Microwave Electronic Tube
Co., Inc. stock, represented by notes, to pay for im¬
,

—

Co., Inc., Ne^ York.

equipment, the promotion and sale of Tape Cable, and
for working capital. Office—790 Linden Ave.,
Rochester,
lands

Proceeds

Business—Manufacture and sale of

precision transducers.

David

machinery

necessary

—

-

Washington Land Developers, Inc.

used to prepay

(7/16-17)
stock (par $1).

filed 90,000 shares of common
To be supplied by amendment.

selling stockholders.

Tape Cable Electronics Co., Inc.
June 8 filed 110,000 shares of common stock
(par one
cent). Price—$3.75 per share. Proceeds—For the pur¬
and

12

Price

•

chase

panies. Underwriter—None.

Trans-Sonics, Inc., Lexington, Mass.

June

• Tang;
Industries, Inc. (7/24-27)
May 25 filed 110,000 shares of common stock (par 10
cents. Price—$3 per share. Proceeds—To
purchase ma¬
chinery and equipment; for research and development;
for certain expenses and for working capital.
Office—

Jones

for

Underwriters—White, Weld & Co. and
Stone & Webster Securities
Corp., both of New York,

For

Barnes &

—

a commission of
$1.50 per share. Price
share. Proceeds—To purchase additional ma¬

per

chinery and-equipment; research and experimentation;
initial contracts; and purchase of additional com¬

For

prepayment of notes outstanding
revolving credit agreement, balance to be de¬
posited wjith the trustee under the company's
mortgage
as the basis for issuance of a
portion of the new bonds.
The amount so deposited is to be
withdrawn by the

if Talmage Wilcher, Inc.
July 6 (letter of notification)

49

—$10

under

end New York.

stock

Proceeds

m

who will receive

June

Underwriter—Cruttenden, Podesta & Co., Chicago

common

i

Transcontinental Gas Pipe Line Corp
(7/22)
25 filed $20,000,000 of first
mortgage pipe line
bonds due Feb.
1, 1980. Price—To be supplied by amend¬

stock, $4

share. Proceeds—To purchase the assets of Superior
Trucking Co.; for repayment of notes; and for general
corporate purposes. Office—625 E. 10th Ave., Hialeah,
per

41

,

Vulcan Materials

Co., Inc.
June 29 filed 10,000 shares of 6J/4% cumulative preferred
stock and 560,000 shares of common stock, to be offered
to the stockholders of Ralph E. Mills Co., Talbott Con¬
struction Corp. and Talco Constructors, Inc., in exchange
for all the outstanding capital stock of these three cor¬

porations, and to the owner of Sherman Concrete Pipe
Co., Chattanooga, Tenn., for the business and assets of
that company.
Office—Mountain Brook, Ala. Statement
to become effective on or about July 20.
Wade Drug Corp., Shreveport, La.
April 28 filed 157,250 shares of class B common stock
to be sold privately to retail druggists through James D

Wade, Jr., company's principal officer and stockholder,

Prospective Offerings
Albertson's Inc.
June 23 it

was

additional

some
mon

stock.

reported that the company contemplates
financing, probably in the form of com¬

Business—Food stores

concern.

Underwriter

—J.

A. Hogle & Co., Salt Lake
City, Utah.
Expected sometime this fall.

Offering—

>

if American Gypsum Co.
July 15 it was reported that the company will register
debt and equity securities later this
year. Proceeds—For
construction

of

a

gypsum

products plant

in

Albuquer¬

New Mexico, and for working capital. Office—Al¬
buquerque, N. M.
Underwriters—Jack M. Bass & Co.,
Nashville, Tenn., and Quinn & Co., Albuquerque, N. M.
'Ar Barton's Bonbonniere
July 15 it was reported that the company is contemplat¬
ing an issue of common stock.
Business—The company
que,

operates about 27 retail confectionery outlets in the New
City area. Underwriter—D. H. Blair & Co., Inc.,

York

New York City.
Benson

June

plates

10

it

|!

Manufacturing Co.,
was

announced

that

Kansas City,
the

company

Mo.
contem¬

offering of $4,500,000 of common stock.
Pro¬
ceeds— For expansion program and additional
working
capital. Business—The company is engaged in the manu¬
facture of aircraft and missile parts, aluminum containers
an

Continued

on

page

42

The Commercial and Financial Chronicle
42

41
for the
products. Un¬

.

Thursday, July 16, 1959

.

•

Federated Investors, Inc.

Bank, Los Angeles, Calif.

•

Dec. 29 it

1959, on the basis of one new share for five shares
than held (after a 50% stock dividend); rights to expire
on Aug. 3. Price—$37.50 per share. Proceeds—To increase
capital and surplus. Underwriter—Blyth & Co., Inc., Los
Angeles, Calif.
30,

Co.,

James Comerford, President, announced that
plans "later in year to issue and sell $20,000,000
bonds, if market conditions are favorable.
Proceeds—For investments, improvements, etc.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley
& Co. and The First Boston Corp. (jointly); White, Weld
& Co. and Paine, Webber, Jackson & Curtis (jointly).
19,

to

of

York.

if So. Carolina Electric & Gas Co.
22, S. C. McMeekin, President, announced plans
sell approximately $8,000,000 of bonds in December,
1959.
Proceeds—To repay bank loans incurred for cur¬
rent construction program.
Previous issues have been

June
to

Washington, D. C. and New

placed privately.

announced that the company has
stock

common

and

general corporate purposes. Office—330 5th Avenue,
Underwriter—Kidder, Peabody & Co., New

New York.

Telegraph &

was

a

issue

ferred

stockholders.

common

both

expected

is

It

•

pre¬

that

to

offered

be

to

Inc.

Products Co.

Chemical

Speedry

15 it was announced that the company plans an
offering of 208,666 shares of common stock. Underwriter
—S. D. Fuller & Co., New York.
Registration—Some¬

May

rights to purchase these share will be available during
of August. Proceeds—For capital expendi¬

the latter part

time

in

Offering—Expected in September.

August.

tures.
•

Merchants

each

614

shares held

the July

on

15

23, J. W. McAfee, President, stated that the com¬
pany plans to sell about $30,000,000 of additional com*
mon
stock later this year through rights to common
stockholders. Proceeds—For expansion program. Under¬
Feb.

The

record date.

subscription price is $43 per share and rights expire on
Aug. 4, 1959.
Proceeds—To increase capital and surplus.
Underwriter—First Boston Corp., New York City.

Public

(Mo.)

Union Electric Co.

National

Bank, Boston, Mass.
July 6 directors of the bank asked stockholders to ap¬
prove plans to offer an additional 72,500 shares of capital
stock to stockholders on the basis of one new share for

(8/18)

Michigan

it

raise

an

Corp., Miami, Fla.
June 26 it was reported that this company plans an
offering of about 250,000 shares of class A common stock,
of which 200,000 shares will be sold for the account of
certain selling stockholders, and 50,000 shares will be
sold for the company's account.
Proceeds — Working
capital. Underwriter — Clayton Securities Corp., Boston,
Mass.
Offering—Expected in the middle part of Sept.

the

which has never before done any public
financing, manufactures shirts in Tennessee. Proceeds—

company,

For

Telephone Co., Ltd.
decided
substantial portion of the capital required by

Maritime
June 4

Inc.

—

,

closs, Parker & Redpath,

Construction Products

asked

White,

Corp.;

Salant

^Saiant &

July 15 it was reported that this company plans to reg¬
ister 100,000 shares of common stock in August.
The

York.

of debenture

has

(jointly).

Corp.
May 19 it was announced that company plans some ad¬
ditional common stock financing. Underwriter—Auchin-

Natural Gas Co.

company

Corp.; The First Boston Corp. and Smith, Barney & Co.

Travelwear

Leeds

company

the

1

year.

White, Weld & Co. (jointly); Eastman Dillon, Union
Securities & Co. Bids—Expected to be received on Sept. 9.

and

the

in

Co., Salomon Bros. & Hutzler and Eastman, Dillon, Union
Securities & Co. (jointly); Lehman Brothers and Bear.
Stearns & Co. (jointly).
Bids—Expected later in the

(par $100). Underwriter—To be determined by^compeitive bidding. Probable bidders: Kidder, Peabody & Co.

plans to issue and sell first mortgage bonds later
year. Underwriter—To be determined by com¬

pany

(jointly); Kuhn, Loeb &

Co.

Light Co.

&

Pierce, Fenner & Smith, Inc.; Stone & Webster Securities

Securities

Equitable

(jointly);

Power

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.
and Lehman
Brothers
(jointly); Merrill Lynch,

competitive bidding. Probable bidders: Halsey,
Corp. and Blyth &

Co. and Shields &

$3,200,000 of equipment trust certificates;
Halsey, Stuart & Co. Inc.; Salomon

Puget Sound

Co. Inc.; The First Boston

Inc.,

Weld &

was

on

bidders:

May 15, Frank McLaughlin, President, announced com¬

Light Co.

Power &

(8/26)

reported that the company plans to re¬
Aug. 26 for the purchase from it of ap¬

Hutzler.

&

Bros.

reported that the company plans to issue

was

mined by
Stuart &

Public Service Co. (9/9)
reported that the company contemplates
the issuance and sale of 30,000 shares of preferred stock

7

Probable

Sept. 17.

City

was

proximately

and sell $20,000,000 of fifst mortgage bonds. Proceeds—
For construction program.
Underwriter—To be deter¬

Community

July

on

Kansas

Bids expected to be received on Aug. 25.

bids

ceive

construction program.

received

be

July 8 the bank offered 210,000 additional shares of com¬
mon stock
(par $10) to its stockholders of record June

dera¬

company

it

July 7

Underwriter—To be
determined by competitive bidding.
Probable bidders
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Kidder, Peaoody & Co. and Shields & Co. (jointly); Lehman Broth¬
ers;
The First Boston Corp.; Morgan Stanley & Co.;
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly); Harriman Ripley & Co. Inc.
Registration—Planned for Aug. 21.
Bids—Expected to

if Chesapeake & Ohio Railway (8/12)
July 15 it was reported that the road plans the sale of
about $2,500,000 of equipment trust certificates on either
Aug. 12 or Aug. 19. Probable bidders: Halsey, Stuart &
Co., Inc., and Salomon Bros. & Hutzler.

(8/25)

announced that the only financing

Pittsburgh & Lake Erie RR.

$18,000,000 of 30-year first mortgage bonds. Pro¬

and sell

Associates, Cincinnati, Ohio.

Electric Co.

of

Co., Inc.

Georgia Power Co. (9/17)
Dec. 10 it was announced that the company plans to issue
ceeds—For

M. Tait &
&

will conduct this year will take the
$65,000,000 of first and refunding mortgage
bonds. Proceeds—To be applied in part, to retire tem¬
porary bank loans, and the balance to finance the com¬
pany's continuing program of expansion for the re¬
mainder of the .year. Underwriter—To be determined by
competitive bidding. Probable bidders: The First Boston
Corp. and Halsey, Stuart & Co. Inc. (jointly); Blyth &

July 1 it was reported that the company is contemplating
the issuance of 65,000 shares of common stock. Under¬
writer—Hecker & Co., Philadelphia, Pa.

—

Gas

was

the

form

—None.

Offering—Expected sometime this Fall. Under¬
writers
To be determined by competitive bidding.
Probable bidders: Blyth & Co., Inc. and Harriman Rip¬
ley & Co., Inc. (jointly); Lehman Brothers and Lazard
Freres
& Co.
(jointly); The First Boston Corp. and
Merrill Lynch, Pierce, Fenner & Smith Inc. jointly.

Power Co.

tion

the stockholders

and

approved

rights to expire on Aug. 28, 1959. Price—$30 per share.
Proceeds—To increase capital and surplus. Underwriter

stock.

Consumers

July 1 it

approved on July 14, the offering of 108,904 shares of
new capital stock to stockholders of record Aug. 7, 1959;

Central & Southwest Corp.

May

derwriter—John

Bank & Trust Co.

Directors

the

30

June

including working capital. Underwriters—

Consolidated

the company in the next
and sale of about $2,-

Pacific

Federation

September.

Underwriter—D. H. Blair & Co.,

of debentures.

000,000

May 19 it was announced that the company in view of
generally favorable market conditions, is now consider¬
ing the sale of 350,000 or 400,000 shares of common

fy 7 it

Corp.

reported that

was

or

American

Equitable Life Assurance Co.
Dec. 1 it 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¬

New York.

Higginson Corp., and P. W. Brooks & Co., Inc.

Citizens National

it

North

months expects the issuance

few

1979, to be offered in units with common stock, during
the week of Aug. 13-17.
Proceeds—For general corpo¬
rate purposes,

15

June

if Cary Chemicals, Inc. (8 13)
July 15 it was reported that the company plans to regis¬
ter
about $3,000,000 of subordinated
debentures, due

Lee

Expected in August

—

Essex Universal

it was reported that the company is seeking
early ICC approval for the issuance of 250,000 shares of
class A common stock. Underwriter—Crut/fenden, Podesta & Co., Chicago, 111.
4

of Chicago

reported that company plans some financ¬

was

ing. Business—Distributor of electronic parts. Offering—.

For major expansion program.
Underwriter—White, Weld & Co., New York.
Proceeds

shafes.

000

y

(8/6)

Buckingham Transportation, Inc.

May

June 2 it

authorized
preferred stock to 1,000,000 shares from 472,229 shares,
and the common stock to 25,300,000 shares from 20,300,-

barrels, aluminum curtain wall sections

and beer

4

Stockholders voted April 28 to increase the

building industry and other proprietary
derwriter—S. D. Fuller & Co., New York.

Electric Co.

Newark

*

Co.

Paso Natural Gas

El

Continued from page

•

.

(250)

determined

be

writer—May

Weld & Co.,

(jointly); Merrill Lynch, Pierce, Fen¬

and Shields & Co.

(8/11)

Offering—Expected toward the end

Service Commission for permission to sell approximately

if Michigan

$35,000,000 of

was announced that the company plans to sell
$30,000,000 of debentures due Aug. 1, 1994. The com¬
pany's last previous financing took place in November,

of

1957, and consisted of the sale of $40,000,000 of 35-year
4%% debentures. Proceeds—For construction. Probable

May 26 it was reported that this company plans a sec¬
ondary offering of about 90,000 shares of common stock.
Proceeds—To
selling stockholders. Underwriters—Mit-

Proceeds—For

first mortgage bonds due Aug. 1, 1989.
expansion and improvement program.

& Co. and Shields & Co. (jointly); Morgan Stanley &
Co.; Harriman Ripley & Co. Inc. and The First Boston
Corp. (jointly). Bids—Expected to be received on or
atfout Aug. 18.

shares of

a

istered in the

Fenner

&

approximately

common

be

Fall. Underwriter—Merrill Lynch,

Smith

&

Co.

Pierce,

Inc., New York.

Some

people

the

regard

smat¬

appearing

ing

in

as an

parts

may

of

be able to float

the

orthodox

lines

rescind

level

the

on

interest

rates which the Treasury may pay

long-term

Whether

right

corporate bond market ap¬
to have developed a dis¬

pears

tinctly firmer tone recently, prob¬
ably due more to the seasonal
dearth

of

new

offerings than to
any
substantial
change
in
the
thinking of institutional inves¬

Congress

be

would

if that

its
final say in the matter is not the
question. Those who are doing a
or

bit of

wrong

quiet buying

view the situation
dollars

and

proves

the theory

on

hard, cold

a

on

cents basis.

Their theory is that if Congress
holds
would

back

the

on

request

current

remove

is

It

latter

true, of
they

feel

course,
are

that

the

obligated to
it accumu¬

put money to work

as

lates.

as

But they

individual,

are

anxious

perhaps

more

as

so,

to
avoid
possible
capital
loss
through being premature in their
purchases.




ket shortly

with

a

$10

fears

this
that

or

$12 bil¬

rities
and

to

in

"roll-over" its matu¬

the

use

the

financing its
ments

short-term
latter

market

market

for

require¬
until the day when it again
new money

the

current

high
and

market

stock

ripe for raising
of

sale

a

substantial part

capital needs through the

new

of

equities.

able

now

it looks

volume

13

it

as

it appears on

sale.-

150,000

shares of common,
the market including 32,-

is

question but that summer is upon
us.
Monday again is a day of po¬
tential for any number of smaller
issues.

brings
up
Northrup
million of new de¬
bentures for marketing while on
$10

the

Wednesday,- Northern
States
Power Co. of Minn., is slated to

indicates

the

open

behavior

market

bids for ' the privilege of
"standing-by" on its "rights" of¬

of buyers in droves. And
such a procedure would strength¬
en the overall position of most cor¬

fering

porations.

each 15 held.

presence

there

is

a

tax

factor

considered. Dividends
lowed

as

a

not al¬

charge against income.

And at current
as

are

to be

corporate tax rates,

pointed out time and again, the

increased

cost

borrower

of

to

debt

the

corporate

capital

is

not

on

500

week

next

on

of 952,033

common

shares

the basis of one new share

The
Co.

same

New

of

for

shares

rounds

Public

Hampshire

Service
will

be

396,000 shares of addi¬
stock. And Trans¬
continental Gas Pipe Line Co. has
offering

tional

selling

a

holder,

week.

Looking; Ahead

By

of indicating that cor¬

way

porations are going forward with

for expansion and, conse¬
quently, with plans for financing

plans
such

several

undertakings,

projects have

such

made plans known

recently.
Michigan Bell Telephone, affil¬
iate

sale

of $30

And

contemplates

Co.,

August 11

will

set for

bids.

Tennessee

Co.

&

the

million of 35-year de¬

with

the opening of

sion

Telephone

American

of

Telegraph

Gas

raise

Transmis¬

$50

million

common

$20 million of bonds and $15
linn

for

out the

bentures,
day

Corp.,

Raytheon

Thursday

with

great

pretty much a replica of what we
have seen recently, and leaves no

Corp.'s

(9/15)

was

of

securities.

such

of

the

seasoned

as

and

reported that the company/plans to
register $1,750,000 of notes and common stock., Under¬
writer—Beil & Hough Inc., St. Petersburg, Fla.

July

calendar

The

Calif.;

Calif.

i^West Florida Natural Gas Co.

Tuesday

though the
market could absorb an appreci¬
Right

But

Instead, the Government would

along

picture

seemingly insatiable demand con¬
vince observers that the time is

lion offering of 40-year bonds.

be forced to

of

the

at

Certainly

the Treasury might be in the mar¬

tors.

the

borrowings.

Looking

Angeles, Calif.

Angeles,

Los

due

Congress may not yield to
President Eisenhower's request to
ceiling

as

Templeton,

&

Next Week's Prospects

Time for Equities

marketplace

that

on

nearly

1959.

Schwabacher & Co., San Francisco,

the surface.

long bonds.

indication of feel¬

of

the

4% % issue

a

Inc.

Jones

chum,

Pacific Ry.

Bros. & Hutzler.

tering of demand which has been

The

}

(7/16)
Bids will be received by the company on July 16 for
the purchase from it of $3,600,000 equipment trust cer¬
tificates maturing annually from Aug. 1, 1960 to 1974.
Probable bidders: Halsey, Stuart & Co. Inc.; Salomon

reg¬

Smith,

third quarter of

the

Wayne Manufacturing Co., Los

Halsey, Stuart & Co., Inc., and Morgan Stanley
Bids—Expected to be received Aug. 11.

Missouri

1,000,000

stock will

ner

bidders:

,

that

secondary issue

Co.

July 9 it

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld

★ Cyprus Mines Corp.
July 15 it was reported

Bell Telephone

&

bidding

competitive

by

Probable bidders: Lehman Brothers; White,

nf

rtpw

nrpferred

slated

milfor

through the sale of 20-year, first
mortgage

bonds

to

fund

term debt and finance

short-

expansion.

Volume

Number

190

5864

,

.

.

The Commercial and Financial Chronicle

(251)
"*f Continued from, page 4

Losing popularity

the fixed

are

wholesale

trusts

; which,
as in England and
the U. S. in the 1920s, are sold via

units
•

put
to

the substantial ante needed
their rights, thereby

up

exercise

suffer

immediate dilution. The

an

dilution amounts to the difference

just before World War II, Aus¬
tralia's investment companies now
number

15

with

assets

£100 million.

over

'

the stock's market

between
its

and

asset value—often

price represent

totaling

These figures

doubling

a

since

1955,

a

sub¬

with another doubling in
prospect

the

sub¬

during

scription price of the rights

con¬

American

stantial

Hence

amount.

stitutes

assessment

an

the

on

shareholder to avoid dilution.
Two

practice

principal defenses of this
are
usually made:
(1)

company

entities).

(our
And

occurs

companies, and
needs

more

ment

the

per

for

the

up

dividends paid

The

of

to

course

manage¬

share, and to
capital gains

out.
to

answer

trusts,

money

ratio

charges

make

that the

(2)

(1) is that when

industrial company sells stock,
it needs the money for additional

an

earning

possibly for de¬

power, or

fensive purposes

auto¬

being

are

No

sold

of

the

investment

closed-end
while

listed

the

unit

in this country, are of
quoted at their fluctuating
as

the

The

ated

research, etc. So some sacri¬
fice in getting such funds in the
case

un-managed
trust
here?
trusts carry a 15-year

unit

ing
assets.
And
as
vigorously promoted
unit

trusts

are

here,
the
8% -loaded

far

outselling the
investing companies' shares avail¬
able at heavy discounts.

Emphasis
In

on

The remainder of Cooper's com¬

Investment Income

mercial output is manufactured to

contrast

tq the American
order
for
trusts' strongly growing
emphasis
tomers for
on
capital gains, in Australia, in
the face of

brand

their freedom of such

made

profits.

chiefly

Investment

dilution

the

case

pany,

is

of

clear.

investment

an

the

on

arithmetic

all

not

com¬

with

contrary,

In

its

allocation of realizable

liquid assets

share, the dilu¬
is clear and completely un¬

tion

The

necessary.

renders

per

tax

present

law

the

payment of capital
dividends unnecessary, the

gains

window-dressing motive being in¬
valid. In answer to contention (2),
namely, that an increased "pool"
to play with is needed to catch
up with management expense and
remuneration,

respectfully
suggest some investigation con¬
cerning which is the horse and
we

which the cart.

That is, shall the
pool be enlarged to fit the re¬
muneration, or should the man-

y1

agement

take

the

cut

to

fit

tion

and

there

that

this

ducing haven for savings
a

and

as

as

savings

bank

every

trend

apply

mutual fund movement, once con¬

centrated in the United

Kingdom,
throughout
the

all-time peak
million. A fur¬

new

pated

this year

tively

estimated

$4.50

per

pare

with

to a level tenta¬
in the area of

share which would

earnings

share for 1958. On the

com¬

$3.01

of

same

per

basis,

1959 cash flow is estimated in the
of

area

$6.50 per share giving al¬

lowance

for somewhat

preciation

and

higher de¬

amortization

charges than those of 1958 which
equivalent to $1.94 per share.

were

Expansion and Cost Reduction

Cooper _Js

offer

A

tube"
cost of

the

capacity over the ef¬
fective capacity in early 1957. The
extent

which

to

capacity

is

being

this

or¬

the

mission

Laender

(the

approved

there, they

central

Switzerland

execution.

Now

or

the

German nationals

instance given to
cial

bank

tomer's

which

Bache and
who

bank).

were

utilized

can

Holland
orders

in

are

fall

of

increasing both
product quality,
is

a

local

may

commer¬

on

the

cus¬

a

specified broker.

issue.

in

substantial reduction

The

be

estimated
per

about
work

annual

is

two

out

saving

meet

Cost

5V4%

debenture

warrants, which are
August 1, 1959,

after

expiration

date

of

July

and

tubes

trucks

and

for

year's

worked
cash
test

dividend

to

out

plus

account

stock.

The

of

under

and

sales

was

in

the

current

be

favorable

in

view

of

the

requirements

B.

substantial

household

geared

quality
turing

to

program

H. C.

that
ican

substantial orders

for Amer-

investment

companies
are
being thus routed through them.
I

The

Boom

Likewise

and

tube

through

the
a

output

company's tire
is
distributed

Cooper
dealer

brand

"Down

Under"

world-¬
wide interest in the investors' co¬

operative

is

"down




with

Wainwright Adds

of

H.

State

com¬

C. Wainwright & Co.,
60
Street, members of the New

York and Boston Stock

has

CLEVELAND, Ohio
M.

Stuart

Bache

is

rayon cord

BOSTON, Mass.—Frank L.
has
joined
the
staff
of
Blair & Co., Incorporated, 10 Post
Office Square. He was formerly
with Eee Higginson Corporation.
Soule

Common Stock

Dividend

The Board of Directors of Central
and South West

meeting

held

declared

a

dend of forty-five cents
share

ers

on

mill

provides

accurate

control

8,

1959,

the

(45c)

per

Corporation's Com¬

Stock. This dividend is
pay-»

August 31,1959, to stockhold¬
July 31, 1959.

of record

LEROY J. SCHEUERMAN

Secretary

Central and South West
Corporation
Wilmington, Delaware

II. J.

Reynolds

Tobacco

Company

Camel, Winston, Salem t Cavalier

Washington

QUARTERLY DIVIDEND

121st CONSECUTIVE QUARTERLY CASH DIVIDEND
The

Board

of

Directors has

A

declared

a

cash dividend of

quarterly

per
on

$.25

mill

This

July

smoking tobacco

record

industry.

Corporation at its

on

regular quarterly divi¬

cigarettes

payable

the

with

Joins Blair & Co.

Carter Hall

advanced

,

Franklin

(Special to The Financial Chronicle)

Priace Albert, Geerge

which is Considered to be the most
in

—

affiliated

Co., National City East
Sixth Building.

Makers of

control

nylon and

now

&

been

and
material
handling
systems. A typical example is the
ccmuany's automatically con¬

Staff

to

Exchanges.

DIVIDEND NOTICE

been

at

per

share

September
close

of

30,

on

Common Stock

1959

business

to

quarterly dividend of 55c
share has been

declared

the Common Stock of the

Company, payable September

stockholders

September

11,

of

1959.

of

its rapidly growing such
precision operations as the
under," mainly via tension setting and temperature
through bank windows stabilizing operations required in
arid
rlife. insurance, companies. the
processing of nylon cord and
Started in Sydney and Melbourne utilizes
atomic beta-ray gauging
use

sales made

Bache Adds

Louis

BOSTON, Mass.—Philip J. Donoghue has been added to the staff

name

network

or

pay

(Special to Thk Financial Chronicle)

achieved by utilizing the most ad¬

trolled

reflecting the

to

(Special to The Financial Chronicle)

improving production
reducing
manufac¬
This

to

and

in¬

and

costs.

excises

year

principal bocoming due in that year, without
other appropriations.

Clayton Flas & Co. Mr. Thayer
was
with
du
Pont, Homsey &
Company.

Strong Dealer Network
Some 61% of the

on

sufficient

a

fees,

each

dustries.

prising approximately 8,000
have

of

said

interest

J.

branch office in

,

bond

of

taxes

Both the present and the 1957-58

expansion

vehicles

Thayer,

associated

Company of New York, vanced
and
highly
mechanized
recently opened a production
equipment
available
Frankfort, report in
conjunction
with
automatic

have

aside

license

Meadows & Co., 1490 Main Street.
Mr. Meadows formerly was with

rubber

appliance

—

Meadows and Allen R.

Jr., have become

principally for the automo¬

and

setting
amount

secure

related

SPRINGFIELD, Mass.

including rubber-to-metal
components which are manufac¬

tive

registration,

of

use

by the State Constitution for the

(Special to The Financial Chronicle)

8%

repairing of tires. The re¬
maining 10% consists of moulded,

tured

or

vision has been made by law and

able

recapping

fabricated

levied by the State

Ohio, relating to

earnings

Meadows & Co. Adds

82%

and

and

of

250

cars,

tubes

additional

an

used

license taxes,

mon

consists of tread rubber and other
materials

are
dated Aug. 15,
principal and interest
payable from fees, excises or

levels. Any liberalization is likely
to be in the form of stock divi¬

50c

about

bonds

and

la¬

declaration

dividend

in

centers

for

The
1959

payment

the company's! new expansion pro¬

buses. Tires and

normally

bonds

total of 52V20 in

a

10%

and this rate appears to

dends

passenger

3.60%

31,

pri¬ gram. Cooper Tire & Rubber Com¬
marily around the production of a pany common stock is traded in
complete line of replacement tires the Over-the-Counter market.
business

and

DIVIDEND NOTICES

capital

under

Control and
Reduction

6%

share

next

Quality

These

Last

Product Mix

Cooper's

3.40%

1969, 1970 and 1971.
$1,195,000 bonds, matur¬
1972, were not re-offered.

1969.

to

share after taxes.

extruded

to

a

the

the

is

be¬

of

to

bonds due in
dollar price of par

last

ing in

in

at a price of $25
through July 31, 1964;
thereafter at $30 per share through

years,
be an

to

to

per

of operating

period

payout

to

would

1960

maturing in
The

the

exercisable

are

further

a

by

million

$3.5

and

detachable

production and
this equipment

expected to result

preceded

now

1967

tached

the

addition

in

and a
3%%

total of
87,500 common stock
purchase warrants which were at¬

parts,

for
from

In

year.

by

due

$1,195,000

the

a

total

line

operating

to

mortgage
note of a subsidiary in the amount
of $179,943. Also outstanding were

related pro¬

production

be

this

fourth quarter of this year and the

If

the first

tube

to

be

assessed from the fact that

routed

instructions, transmit them

for execution to

—

"dual

are

uary,

"dual-

a

used

were

debentures; $634,020 in 6%
sinking fund debentures due Jan¬

approximately $600,000 for

expected

ders for American securities from

German

at

financing

5V4%

additional

year's seasonal up¬
swing in tire demand. Thus, 1960
nationals required
sub¬ earnings could advance to around
to
the
Bank
Deutsche $6.00 per share.

purchasing

mon

duction machinery. Equipment or¬
ders have already been placed and

which

production

line

"dual-tuber" and

lieved

to be installed in early 1960. The
benefits
of
this
additional
companies is increas¬ full
ing remarkably.
Before Jan.
1, production capacity will thus be
available to the company in time
1959, and the establishment of full

via

production

this

afore-mentioned

similarly integrated approach
manufacturing operations
a

1968;
for

Giving effect to this financing, the
332,920 shares of outstanding com¬

the

to tread

costs.

which

Germany, interest in the U. S.

all

of

company's dealers to

will involve installation of

pro¬

program

60%

a

investment

convertibility,

control

exceptionally liberal ad¬
justment policy to buyers of the
company's premium nylon tires.

increase in daily tire

vided

the

in

retire $2.15 million in bank loans.

excep¬

an

remaining equipment is expected

not yet include U. S. securi¬

ties.

an

coating operation.
improvement in end product
quality achieved by this unit has

provement

use

Japan, the fund form of in¬ mated 25% increase in output of
vesting is rapidly gaining popu¬ automobile and truck tires and
larity. But the portfolios, because tubes. The first production units
of foreign exchange restrictions, are expected to be delivered in the

In

accurate

enabled

a

of $36

area

ther rise in earnings is also antici¬

In

may

from

achieve

will establish

the

of

The balance of the funds obtained

The

which will make possible an esti¬

,

to

bonds
the

operation

5V4%
senior sinking
fund debentures due April 1, 1975.

rubber tire-cord

Cooper
has been running its plants on a
In Hong Kong, representatives
three-shift, 6-day basis since the
of several New
York
brokerage beginning of the year. As a result,
firms are doing a large proportion orders have
been placed for addi¬
of
their
business
in
the
larger tional
manufacturing equipment
world.

U. S. funds.

tionally

making
of the expanded capacity
provided by the 1957-58 plant im¬

nique, and to American stocks, the

proliferating

equipment

the full year. On this basis,
barring unforeseen
contin¬
gencies, I believe that 1959 sales

full

ON ABROAD

assets

6%
for

$11.4 million as
against $6.5 million in current lia¬ public highways, or to fuels used
for propelling such vehicles. Pro¬
bilities—giving a current ratio of

deposits.

over

in

Dillon, Union Securities & Co.,
New York City, made public of¬

cur¬

working capital by the sale of $3.5

indica¬

will

31, 1959 showed

1.75-to-l. An additional $1.16 mil¬
was added
to the company's

*

Because of increasing attraction
to the investment company tech¬

of March

rent

remunerative switch from

more

and

Currently,

is

is

Group

A syndicate headed by Eastman

are

lion

Program
*

cus¬

The last available balance sheet

The Security I Like Best
levels

fund?
*

established

private
The purchasers in¬

names.

million

the

THE FUNDS CATCH

well

sale under their

Finances—Capitalization

income-pro¬

an

as

is

Continued from page 2

companies is not
Besides, with
an

by

Eastman Dillon

holder

capital

discounts from their underly¬

Ohio Offered

fering on July 16 of $31,000,000
date, at which time
ing warehouse stocks of Cooper State of Ohio Major Thorough¬
wishing to continue tires and tubes with dealers in
fare Construction bonds, Series
an
M,
must
again pay
the
admission additional
13
important metro¬ at prices providing yields rang¬
charge ("load").
politan centers.
ing from 2.40% for the $1,190,000
termination

the

tial

company's book value
made up of fixed assets,

the

13

cover

clude leading oil companies, au¬
profits from income taxation, nei¬
supply
and
hardware
ther the fund managers nor their' tomotive
chain stores and jobbers.
shareholders are concerned with

industrial

partly

wholesale branches

asset

values, the investment com¬
panies persistently sell at substan¬

$31 Million Bonds of

is further facilitated by maintain¬

of industrial

objectionable.

Depending
these ac¬

are

leading metropolitan centers plus
the company's home town of Findlay, Ohio. Promptness of service

ery,

:

involved,

serviced either by com¬
pany-operated wholesale branches

machin-

new

as

counts

vance.
Will the good
comparative
performance by the
Dow-Jones
Average possibly lead to revival

fund)

in the

trial

down

funds

year.

there yet.
,
As in the United States the unit
trust (corresponding to our

offerings of indus¬

of rights

keep

current

with

case

fund

the

co-exists

That similar dilution

invested

are

customers.

area

matically—without management— or by distributors with exclusive
in issues entirely
specified in ad¬ franchises.
The
company-oper¬

•

>

which

the

on

43

Wm. E.

Thompson

5, 1959 to stockholders of
ord

at

the

close

rec¬

of business

August 14, 1959.
W. J.

Secretary

CONRAD,
Secretary

July 14,1959
Winston-Salem, N. C.
July 9, 1959

The Commercial and Financial Chronicle

44

.

Thursday, July 16, 1959

.

.

/

(252)

BUSINESS BUZZ

Washington
Behind-the-Scene Interpretation*

Investment

In

/■ f|/i

9-21,

Aug.

JL

JljL f I/%A/

Capital

from the Nation's

EVENTS

•

•

•

COMING
Field

(Charlottesville,

1959

Va.)
School

Banking,

Consumer

of

University of Virginia.

of

amount

It

There

Hale

rate

interest

of

the

would

ceiling
bonds is 4V4%, and

present statutory

The
on

Treasury

on

Series E and H bonds

voted

Committee

3 V\ %

•

same

lic

law

pass

and

on

of

the Presidential veto
eral

in

one

Committee

which
A

ago

doubt

extreme

that

line tax

ment
cent

materials, with unhappy

be

will

be determined.

gallon. President Eisen-

a

hower in January

raised

be

it

that

is 3

Federal tax

current

The

cents
.

recommended
an

additional

have
opposed raising the Federal tax
on
the
ground that the tax
source was needed more by the
IVz

Various states

cents.

Federal

the

than

states

Gov-

—

Legislatures

year

of

bonds

to

either

highways, farm-to-market

roads,

weeks

ago

the

a

Congress
a
few
declaring that the

Road

Interstate

the

verge

of

Program
a

was

stalemate in

orderly development of the

41,000-mile

None

system.

of

the other Federal aid road pro¬

affected.
These are
the programs where the states
put up 50% of the cost and the
grams

are

Federal

50%.

:

Measures
~~

As

the

Government

other

\

.

Doubt

in

amend

Congress

moved

sals

in

doubt.

propo¬

include

These

legislation which
the Senate passed, and on which
labor

modern

most

planes

The

amendments are ex¬
pected to be enacted this year.
The
Social
Security Adminis¬
no

tration

reported

to

Congress

Age
Survivors Insurance Trust Fund
that

month

last

the

Old

deficit of
about $87,000,000 for fiscal 1960.
Officials said the deficit, how¬
chalk

would

ever,

the

airport,

new

ternational

carved out of the

served

be

multi

cost

from
It will

by

eventually

laned

-

miles

Washington.

a

expressway

millions

many

fast

that
addi¬

appropriation for the De¬
fense
Department, which will
The

receive

than

funds

more

Federal

other

all

appropriations

combined, will total approxi¬
mately $39,000,000,000.
"Munitions Lobby" Hearings

Incidentally, the hearings into
" M,u

so-called

launched

Lobby,"

n

i t i

the

by

o n s

He-

Services

Armed

House

bert

up

Committee
the

There

and

the Air Force that are

etc., by
The Com¬

captains,

seek

determine

to

in the Defense

involved

reform

25th

meeting

annual

at

the

Sheraton Dallas.

or in a consulting
with the contractors.

capacity

dollars

apparently

Committee

the

with

been indicated

has

not

publicly.

[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.]

name

gen¬

missiles.

retired

big

invited

House

lic Policy—Gardiner
Anderson

(Special to The Financial Chronicle)

SPRINGFIELD, Mass.
Snyder

has

been

—

added

,

1722

Sidney

to

staff of Meadows & Co., 1490

to

appear

before
com¬

ton

the

Main

Street.

IIow

>

Kramer

6, D. C.
to

—Dr.

Get
Ira

McKay,

-

(paper), $1.

Rich Buying Stocks
U. Cobleigh — David

Inc.,

119

West 40th
Y.—$2.50.

Street, New York, N.

Chiles-Schutz Adds

has

been

—Thomas E. Babson and

Neb.—John T. Barry

added

Chiles-Schutz

to

Co.,

the

Farm

staff

Successful Future
David
Babson—MacMillan
Com¬

Investing for a

(Special to The Financial Chronicle)

OMAHA,

investigating

Pub¬
C. Means—■
Associates,
H Street, N. W., Washing¬

Administrative Inflation and

With Meadows & Co.

nuts

erals and admirals are expected
be

House

following the inves¬
tigations. Whether or not White
House officials are cooperating
closely

De¬

and

bolts

from

to building
Some

White

The
is

of billions

partment's spending

the

Bankers Association of America

deal¬

in

at

Investment

of

Group

Texas

"influence peddling"

how much

to

services

their

the

Hotel.

April 6-7-8, 1960 (Dallas, Tex.)

government,
and
at
the
same time receiving fat fees and
salaries from Defense contrac¬
for

Convention

Americana

the

tors

4, 1959 (Bal Harbour,

Annual

re¬

retired pay from

their

of

Convention

Fla.)

retired offi¬

and

ceiving

Annual

Nov. 29-Dec.

Navy, Marines

of the Army,

taking a
hiring

is

contractors.
will

mittee

of

ciation

the Boca Raton Club.

Investment Bankers Association

many

are

cers

wholesale

fprmer generals and colonels,

defense

a

should be the last one for
future in that

into

admirals

is

of influence

finished.

been

(Boca Raton, Fla.)

1-5, 1959

National Security Traders Asso¬

tionably will be some headlines
made before the hearings have

Subcommittee, will resume be¬
long after a recess.

of

trend

any

to

far

ing directly

tional.

the

thus

enough

Nov.

selling. However, there unques¬

in¬

being

Virginia coun¬

18

about

the

an

is

facility

jet

in

craft

other

and

world.

for

airport

far

indicate

of

L.

pany,

New York (cloth), $4.95.

Credit
Attention Brokers

Building.

and Dealers:

foreseeable

TRADING MARKETS

Congress raised the social secu¬

1958.

rity tax in

Botany Industries
Indian Head Mills

Grants

into the

legislative

several

tion with the construction of the

look

until election year. There¬

fore,

Federal Airport

final weeks of the session there
are

has already appro¬
$90,000,000 in connec¬

The

Legislation

Congress
does
the social security

Traditionally

the

(Cincinnati, Ohio)

Oct. 22, 1959

has not

Committee

The

fore

No Social Security

laws

sent

Eisenhower

to

the

lifted

514%.

now

•

President

that

The new ceiling is

housing.

an

not

etc.

message

bill

appropriation.

Congress
priated

signed

state

Federal

on

a

also

ceiling on interest rates for in¬
stitutions make loans on veter¬

high¬

finance

construction
for
aid
highways,

way

issu¬

authorized the

have

ance

this

far

so

President

law

into

Meantime, more than a dozen

becoming tight¬

money

the

er,

a

mittee.
delved

veto

to

threat

larger

will

With

ernment.

state

much

Hawaii to become the
the 50th State; continuing the
corporate excise taxes for an¬
other
year,
raising the
debt
limit,
raising
life
insurance
taxes, continuing aid for airport
construction,
and
authorizing
more
capital
for
the
World
Bank and Monetary Fund.

boost the tax is yet to

to

ment

at

meeting.
President's

tryside

for

convention

annual

Warwick Hotel.

Group of Investment
Bankers Association annual fall

downtown

ing

Bankers Association

Ohio

major measures
that
have
been
enacted
into
Jaw this session include provid¬

the

of

Some

Whether or not
sufficient senti¬

gallon.

a

there

results

side."

our

on

there appears to be senti¬
to raise the tax a half-

has
petro¬

leadrzinc, and other raw

leum,

How¬

Now,

going.

program

"So far the

aluminum,

in

felt

He

profits.

offensive

trade

Russian
been

keep

ever,

the Committee:

told

the big and expensive
super-duper Interstate HJighway

to

apparatus,"
taxes, and does

no

pays

need to think of

not

Congress

Federal gaso¬
at this session in order
the

raise

would

there was

weeks

few

Trade

"Soviet

the

Expected

Higher Gas Tax

39th

a good time—then I had
good time!"

a

pointed
and

that United
States firms must compete with

backed.

Congress

briefing on convert¬

"Well, if you consider a four hour
ible subordinated debentures

before the House Ways

Means

(Philadelphia,

1959

Pa.)
Consumers

of Commerce

States,

United

the

out

14-17,

Oct.

the

Chamber

the

for

the heels of
of the lib¬
which the liberal bloc
bill

housing

appli¬

However,
Chicago
firm of Baker, McKenzie
Hightower, as spokesman
of

Exchange

ing at the Royal York Hotel.

s."

area

Baker

Russell

moderate omnibus pub¬

more

a

those

to

(Toronto,
Stock

of

First Board of Governors meet¬

incentives only
countries with
"less

developed

Congress will

certain that

Department is
The De¬

partment would limit the

Schroeder.

Canada)

part.

in

bill

the

Bank

of

annual convention

28-29, 1959

Sept.

the

cation to the tax

it appears fairly

this time

behind

Association
37th

Hotel

the

at

Association

Treasury

The
for

growing public debt.

At

Women

has

Commerce

support

National

measure.

gested that the Federal Reserve
System step in and buy longterm Treasury bonds whenever
it is "feasible" as an aid to effi¬
cient
management, of the big
jand

of

its

thrown

terest rates to two years.

(Milwaukee,

Wis.)

States

United

The

Chamber

to

power

overseas,

growing.

raise in¬
At the
time the Committee sug¬

President's

Sept. 23-25, 1959

session.

this

has

and
Means
to limit the

Ways

House

The

Club.

privates-in¬

is in doubt
Nevertheless, it
substantial support and it is

vestment
at

day, Friday, Kenwood Country

which

measure,

encourage

field

Queen City Club;

day at

The

of Louisiana.

Boggs

fate

Treasury
bond
may be operative.

cocktail and dinner party Thurs¬

proposal by Rep.

Incentive Tax"

increased

the

Field

Country

Municipal Bond Dealers Group
of Cincinnati annual outing —

for the

Investment

"Foreign

proposed

time limit on how long

a

Waionda

the

at

Sept. 17-18,1959 (Cincinnati, Ohio)

to be a substan¬

seems

tial amount of sentiment

plus an increase in Series E and
H bonds. The law-makers might

place

Day

Bill Gains Support

Boggs'

bonds,

Treasury

States

Iowa)
Iowa Investment Bankers

signature.

Eisenhower's

(Des Moines,

19-20, 1959

Aug.

Club.

will authorize an in¬
the interest rates in

in

United

to

dent

Club, St.

Clair, Mich.

legislative line before going
the White House for Presi¬

the

fairly certain that

appears

Congress
crease

is

adjournment
'

passed
before
takes place.

Clair Inn and Country

apparently will become law
The foreign aid bill
likewise nearing the end of

very soon.

substantial
legislation will be
A

weeks.

more

and

six

will continue at least

gress

of

000

Aug. 14-15, 1959 (Detroit, Mich.)
Basis Club summer outing at St.

to issue up to $750,000,bonds, is in conference

agency

WASHINGTON, D. C. — The
session oF the 86th Con¬

first

for Federal
will continue at
the present rate of $63,000,000
until June 30, 1961, unless Con¬
The

new

airport

gress

Official Films

program

grants

should^amend the law next
In all probability Congress

the House Education and Labor

year.

Committee has completed hear¬

Southeastern Pub. Serv.

SlG*

Our New York

Carl Marks & Co. Inc.

telephone number is

CAnal 6-3810

will greatly liberalize the grants

ings; raising the minimum wage
to $1.25
an
hour and putting
many additional workers under
the provisions; further liberal¬
ization of Social Security bene¬
fits, and additional civil
The

TVA

revenue

rights.

bond issue

Digitized formeasure, allowing
FRASER


this

big

in the not too distant future be¬
cause

of the growing

use

FOREIGN SECURITIES

of jet

airplanes and faster speeds.

20 BROAD STREET

TEL: HANOVER 2-0050

The present grant rates repre¬
sent

a

big

retreat

from

cided

to

withdraw

after

the

SPECIALISTS

LERNER & GO.

NEW YORK 5, N. Y.
TELETYPE NY

1-971

Investment Securities

10 Post Office Square,

the

original bills passed by the Sen¬
ate and the House. Leaders de¬

•

I

Telephone
HUbbard 2-1990

Boston 9, Mass.
Teletype
®S 69