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2 Sections

—

JUL 6~
.

;1N£SSw&'s^np«

Reg. U. S. Pat. Office
■^T

Number 5860

190

Volume

New York 7, N. Y.,

Price

Thursday, July 2, 1959

Cents

Copy

'5S£

J$EDITORIAL

Impediments to Economic
Growth and Employment

v88Ii

re See It

.4s

r:-3'

rS£

President

the

Said

so-called

the

vetoing

bill

'^legislation.

seeks

enact

••

of the wheat farmers of America.

interest

pattern. Making

placing

ment and credit

this bill prescribes for

day the President also vetoed a
Congress had sent to
In this connection, he reminded the

rational legislators that "United

{|f

would

ployment

the

ex¬

businessmen

mortality

insufficientr ■business births,

and

genuine

desire

the

look

not

all.

the

Sharron

When

will

require

useful jobs-than

many

of responsible unionism
greatly expanded labor force

era
a

and

Newberg

what

ask
We gave up our rosy

productive
it appears can

And in

doing

better

Continued

on page

swinging it by

got our eyes wide open

was

happening we began to
some tough questions.

ourselves

Continued

page

by Mr. Newberg before the General Management
Annual Meeting of American Management Association, N. Y. City.
♦An

;

were

optimism in favor of self-criticism.
following a national trend. For

existing conditions. We are in a some¬
position today to analyze the unemploy-

They
we

we were

be created under

what

about the "rosy

future.

tail.

golden
Prof.

others, per¬
say
enough

something .happened.
We
began to find out that some other
countries were
beginning to take
hold of the 20th century. And that's

cause-and-effect relationship

where

plain words, plainly spoken. It is
difficult for us to see-how any disinterested
.observer with the good cf his country at heart

than

Then

by unions, both big and small, local
and international, could result in a

such

are

Americans—and

helped to build and

for

admit their re¬
sponsibility,-perhaps unwitting and
inadvertent, in contributing to excess
unemployment.
The realization of
labor

(come.

haps — just couldn't
'abouY'theWdftde^

-It-

much soul-searching,

involve

organized

duclion abroad have been expanding."

page

speeches being made
will remember that a
very large proportion of them ex¬
pressed a mood of almost reckless
optimism about the shape of things

seeking out the truth on the part of

time when acreage and pro-

remove

and taxes on
principle and, instead, emphasize the positive by seeking
tax reform to encourage investment; help school sys-'
terns to get most out of every tax dollar; interest itself
in conservation and development, and foreign aid.
If you think back to the kind of

power

business

both

humility,

required severe cuts in tobacco acreage in the

Continued

our economy grow¬

false image that it is against government

si n et

been-supported at these high levels, and

These

keep

Also, he asks business to

catalyst and creator.

public.

union

that

extent

would

f would continue to be under this bill, the law has

and other necessary services to

flected

States growers

tobacco sales abroad can,,- be directly at-

Ul-United States at

far from rich and that

we are

ceeded the power of business, as re¬

^ tiibuted to the high level of p^te supports that
otvhre required by existing law. And while prices
have

those who want

playing right into the
see more state planning

education, defense, public health

found to be attributable in large part to

Pointing out

finance

ironical, indeed, if today's excess unem¬

were

feupon exports. Yet we have been fast losing our
W. fffir share of foreign markets. The deterioration
rigour

says

are

ing, the industrialist asks business to maintain its role as

others; and suggests management improve its expla¬

types of tobacco are heavily dependent

many

Spartans"

at meetings a few years ago, you

same

desk.

support, unemployment; (2)

nation of economic facts to the
It

j-called tobacco bill which

the

for

must

are
largely but not solely the cause of unem¬
ployment; calls for mature restraint and consideration

fi'^osed return to the discredited high, rigid price
.rapports would hasten the complete collapse of
^
entire wheat program."

"live

and control.

increases

pro-

"Spartanism," is the key to our strength. Denying
an "affluent society" or that our production
ca-J

hands of those who would like to

Dr.

investments,

The author makes clear that administered excessive wage

sick patient

>^i$other dose of what caused his illness. The

productive

insufficient
job-creating investments; (3) squeeze on smaller com¬
panies, suppliers and consumers, and (4) amalgamations.

...

valuable distinction between labor-dis¬

job-creating

are

pacity is overbuilt, Mr. Newberg

(1) wage in¬
price increases and, in the absence of govern¬

creases,

event would not substantially

tSiCcyear.
,V.

and

any

Sharron explains how union power causes:

the bill would probably increase, and
decrease,
fjffhe cost of the present excessively expensive pro&giam now running at approximately $700,000,000
iW.

nomic

case against excessive wage increase
particularly when manifested in a uniform, industry-wide

Vice-President, Chrysler Corp., Detroit, Mich.

Automobile executive asserts economic growth, not eco¬

Economics

Economist states the

„

jodSi.':"It is not realistic. It is not constructive. It
^fi,goes backward instead of forward. It is not in the

•

Professor

Duquesne University, Pittsburgh, Pa.

wheat

temporary

By WILLIAM C. NEWBERG*
Executive

By DR. ARTHUR O. SHARRON
Associate

y^wheat bill-recently enacted by Congress:'
rsti'- ''This

Shape of Things to Come

address

I. D. A. OF CANADA

cza

DEALERS

ien.

CONVENTION ISSUE: Section Two of today's issue
the Investment Dealers Association of Canada
Hotel, Banff. Alberta, June 8-11, 1959.

43rd Annual Convention of

is devoted to the
at

Banff

Springs

State, Municipal

and

U. S. Government,

)82f

Public

Housing,

State and

STATE HUD MUNICIPAL

Municipal

Lester, Ryons & Co.
623 So. Hope Street,

£os Angeles 17,

California

Securities

telephone:

Associate Member American Stock Exchange
Members Pacific Coast Exchange

UNDERWRITERS

Offices in Claremont, Corona del Mar,

CHEMICAL

BROKERS

•

Encino, Glendale, Hollywood. Long Beach,

DEALERS

THE FIRST NATIONAL CITY BANK

BANK
30 BROAD ST.,

N. V.

15 BROAD
CABLE:

YORK AtlO AMERICAN STOCK

STREET, NEW YORK 5, N.Y.

Underwriter

•

Dealer

014-1400

Bond Dept.

Active

Members
New York Stock

Securities
'

Block
>,

STREET

NEW YORK 4; N. Y.
FIRST

goidfuveAt COMPANY

BANK

Correspondent—Pershing & Co.

•

PERTH AMBOY

Municipal Bonds

(Rights Expiring August 7, 1959)

these rights at the

offer to. buy
current

for California's

market.

Toronto, Montreal,
Winnipeg, Calgary, Vancouver,

Expanding

Direct private wires to

Invited

Executed On All

Ottawa,

Victoria

and

Halifax

Economy

Canadian Exchanges

Teletype NY .1-2270

DIRECT. WIRES TO

MONTREAL AND

Goodbody &
MEMBERS NEW YORK

BRIDGEPORT

DALLAS

Chase Manhattan

CANADIAN DEPARTMENT
•

BROAD

Inquiries

Commission Orders

Stock Exchange

■

Southern

.Imperial Bank of Canada
We

•

Exchange

Markets Maintained
Banks and Brokers

securities

American

New York

canadian

ESTABLISHED 1832

Investment

Teletype: NY 1-708

Dealers,

T. L. Watson & Co.

i -

Securities

TCLETYRC NY t-Z2*Z

COaURNMAM

Distributor

Diego, Santa Ana, Santa Monica

Inquiries Invited
California

Net

San

EXCHANGES

•

THE

Pasadena, Pomona, Redlands, Riverside,

OF NEW YORK

Burnham and Company
MCMBERS NEW

DEPARTMENT

BOND

■

CORN EXCHANGE

bond department

Bonds and Notes

Members New York Stock Exchange

BONDS

IIAnover 2-3700

Public Housing Agency

115

BROADWAY"

NEW YORK

TORONTO

Co.
ST.

MUNICIPAL BOND

DEPARTMENT.

Associate Member of American Stock

STOCK EXCHANGE

1 NORTH LA SALLE
CHICAGO

Dominion Securities
CORPORATION
Excb.

Hank of America
national

Exchange Place, New York 5, N. Y.

Tel. WHitehall 4-8161

Tele. NY 1-702-3

JJVYngs ASSOCIATION

300 Montgomery St., San

Francisco. Calif.

The Commercial and

(2)

The

Dealers only

For Banks, Brokers,

If it's Over-the-Counter.

Security 1 Like Best

§■ the investment and advisory

participate and give their

Try "HANSEATIC"
Because you can

sure

week, a different group of experts
field from all sections of the country

for favoring

reasons

are not intended to be, nor
offer to sell the secuiities discussed.)

(The articles contained in this forum

they to be regarded,

are

as an

Using

Jesup and Lamont, New York City
Members : New York Stock Exchange
and American Slock Exchange.

;

Boothe

than 400 OTC Issues

the

Leasing Corporation

and

profits. It

New York Hanseatic

PHILADELPHIA

SAN FRANCISCO

ters

tional
in

the

Kuno B. Larcn

60%

SECURITIES
FUND OF BOSTON

Prospectus on Bequest
GENERAL DISTRIBUTORS
rc>

KELLER BROTHERS

annual

cumulative. From

Telephone Richmond 2-2530

from $3.2 million in 1955 to $7.4
million in 1956, $15.7 million in
1957
of

Interest in

and $21.1 million

1958.

1959.

Richardson Co.

The

market

BLC's

price

common

Due

method

1914

estimated

times

of $6.50

1959

1529 Walnut Street

Philadelphia 2, Pa.
LO 8-0900
ATT Teletype PH 30

Development,

General

de-

results

had time to

$2.40
per

mature.

($1.25

come

has

company,

not

strengthened

first renewal terms in which most
ot BLC

capital

woulcLhave been
renewaUerms

earning

but rather its use.
instances lease rentals^
chargeable to income
whereas
depreciation
rates
on
equipment owned (e.g., in costplus government contracts) may
be subject to dispute.
In

12/31/58

stated

Boothe

eciui-tv

$1 9

^ Subordinated^

1969)

showed

million

—

Quoted

power

fully

Since its inception, BLC's gross
income-has had the following sequence;
$406,000
in
1955,
$1.5
million* in 1956, $2.9 million in
"1957 and $4.7 million in 1958. Because leases are generally written

Walter C. Gorey Co,
Ross Building, San Francisco 4

Teletyp SF 1011 &

1012

Wire System
<6

for 5-8 year terms (with a median
lease of 6 years) and because BLC
uses

installment

accounting,

Company,

method

its' reported

have been nominal.

YUkon 6-2332

Legg

world

wonderful

jYietal!

light,

profits

Consider, for

instance, a typical lease of equipment costing $95,000.. In financing
the purchase of this equipment,
BLC may borrow $85,000-$9,p,000

Writes

(due

$5 000

mally

The

prepaid

reduces

pocket outlay to

rental

BLC's

nof-

out-of-

nominal figure:

by,

loans

assignment of leases and bv

STOCKS

tomor-

wonder
" strong,

workable,

beautiful,

If you can't

eco¬

find

home for certain of your

nomical. It is

ISSUES]

{INACTIVE

d^ilygaming-t

'■

uses

submit your

the appliance,

building, auto motive,
packaging, oil

Perhaps

chemical

fields. It

offerings.

we can

help.

( AtBtRT 4. CAPtAN t CO. ,5
■

and

•'

Msmhers: rhrfa.-Btfllo. Stock txch.

seems

certain that in

the

coming
t he

ye a r s

aluminum ind

u s

will

gro,w at a
E.

Milton

Selisr

rate

considerably

LAMB0RN & CO., Inc.
WALL

i STREET

}

faster than the
,

NEW YORK

5, N. Y.

SUGAR

mort-'

Raw

can

Liquid •>'

DIgby 4-2727

;•

fully integrated fiom the

^iuing.: of bau^ite/ to the production of fabricated aluminum

-J#**

shapes. It looms largest in alumi—

n«m fdil
are more

and ..fabrication, which
Profitable than the sale
.

borrow from banks,

collateralized

notes, Boothe had about $3.8
million in subordinate funds and
could, on that basis, borrow up
to $38 million from banks. In view
of the bank notes outstanding at
12/31/58 and an expected increase
of. $10-$12 million in. equipment
leased this year, no
additional
financing would be indicated in
1959. Should certain negotiations
with two equipment manufacturers on the acquisition of their
lease contracts materialize, and at

financing
is 'indicated/ This financing may
be in the form of a combination
any

—

E x porta—Imports—Future a

There is currently the strongest
basis, up to upward trend of orders in the
$io for each $1 of its own subor- past two years and significantly in
dinate funds. Together with the non-military
products,
which

Cally BLC

Refined

—

^competitors in the future. Reyrt-

°f

Baltimore &N.Y.C.'

Troster, Singer & Co., A'. Y. C.

"truly

INSURANCE

LIFE

World Aluminum in

r0w." Aluminum is

and

of $1.5 million. The rest of

bank

many

;

residual
values
which needed to enter the field, deters
could be realized from sale/;of additional competition.
equipment represent a h i d d e 11
Reynolds Metals is the most atearnings potential which, together 0 tractive anu" reasonably priced of
with the pronounced growth; in.v.^he four major aluminum stocks
original equipment leases, pre- in earnings..and cash flow, both
sage a rapid build-up of future, past and projected. It seems capaearning power.
1
ble of outperforming its major

It is not owner—
fixed asset which creates

COrtlandt 7*5680

and/or

the debt ($13 9 million) reoresent—

are

„

"There is

current position.

John

period of highly profitable

Investment .Bankers

Philadelphia, Pa.

U. S. Foil (Holding Company for
Reynolds Metals)

given year. As the
original leases expire, BLC would
enter

Brokers

111 Broadway, N.Y. 6

Selig Foundation, Inc.;

1957,

ship of

Sold

The

share estimated for 1959) rep-

Yamaichi Securities Co., Ltd.

Chairman, Board of Trustees,

share in 1958, and $3.50 •

per

Affiliate of

SELIG

BLC's
youth
as yet

Company

NewYork, trie.

Tokyo, Japan
MILTON

Deferred-in¬

per

costs: enormous canital Investment

reduces the risks caused by
rapid obsolescence of 6quipmeiTt.
It allows fooling and production
on
special orders or for limited
time periods. Leasing "unfreezes"
working
capital
which
would
otherwise go into fixed assets and
thus

the

write

Securities

Retired^ Subsequent

leasing has several
attractions which might explain
the spectacular growth of corn-

information

Yamaichi

stock best,

common

Balke -or General Development. \
Yet the stock is selling at seven
times estimated 1959 deferred income of $3.50 per share,
There is another aspect to
business which, due to the

the

returned and all of the bank loans

Equipment

West Coast Life

—

improve

...

Call

selling

current

coun¬

per

.1958 and may rise to-$3.50

For

above

economy as a whole. Raw mateKab are plentiful;- labor represents a small proportion of total

ing

Bought

would

j ]i^e gpc

created

panies in the leasing field. Leasm mm

-STOCKS

share.,

per

installment

share in 1959.

cr mmm mmm m

substantially

quotes for BLC

resents total profits to be realized
over the original life of-the leases-

accounting, reported
profits have beoen nominal.
Deferred income, however, amounted
to approximately $2.40 per share

BOENNING & CO.

JAPANESE

time

relatively new company in a
new
industry
with
exceptional
growth characteristics. As a sophisticated commitment for soeculative
long
term
appreciation,

307,375
shares outstanding) at $8

million.

Broadway

(represented

common

Keyes Fibre Co.

recent

evaluated

equity
Stouffer Corp.

at the end

Another $10-$12

million
of equipment is expected
bought and leased during

worth

Fischer & Porter Inc.

115

and

rnon

standpoint, they
undiluted participathe most interesting

senting firm rental obligations of
some
300 major corporations on
equipment owned by BLC) rose

9, MASS.

New York 6, N.
CO 7-1200 >

prjces

current

leasing industry, in 1954. Its prospects, we believe, match or
lease coHmclsTgceivahleYreprfr—ex€eed4hose-.of either! B.rqnswick§f" '

e*>uSoitieM> CO., IHC?.

Established

and

home lots in Florida, telescopes
represent an
the profit from the sale into the
tion in one of
year in which the purchase conparts of businesses like IBM or 'tract for the lot is signed even
AMF.
Among the best managed though it may take the company
and fastest growing companies in
nine years to collect the full prothe relatively new field of equipceeds of the sale., Recently the
.ment
leasing is Boothe Leasing stock was selling at 21 or some 12
Corp.
v
times estimated 1959 deferred inBLC
was
founded
by D.
P. come ol $1,80 pei shai e. BLC s
Boothe, one of the pioneers of long range outlook and growth

(Comer of y/a»hington Sf.)

Direct wires to oiir branch offices

come

market froin

iSUt

the

MHO COURT STREET, BOSTON

A Continuing

the

investment

Birmingham, Aide
Mobile, Ala.

marketability of the security. BLC

ferred income

order

NY 1-1557

New Orleans, La. -

traded
where
they
vvuwc
wcj<

it is likely to

pU}3jjc.

pinset-

installment basis

'£§£? to'eurcha^lhe

and prospers,

price of 88, the stock was selling

—something
of

Stock Exchange

St., New York 6, N. Y.

are

may

a v e.

'or voston

share.

$5 per

the

f ill

.mstMUTUAL

sells

American

HAnover 2-0700

carefullY- As the company grows

•

excep¬

e m

1959

s,ock would have to be

Brunswick-Balke

among

-require 5:8 years to collect
proceeds of such sale. Yet the
full profit from such sale is taken
into reported income in the original year of the sale. At the recent

shown

raise

share.s

y»ti-mc-wuumci

growth

ones

t h

1aPPr°P1^

income

common

Over-the-Counter

annronriate

™ore

could

Qc^Gr^V Development and-Groher, 'to time for more equity capital.
^
r
re«^rl \T I expect that these financings will
ferred income on a current; basis,

The

succ e s s

Principal Cities

.seems

Members New York Stock Exchange

•>

w e r e

created.

CHICAGO

•

Wires

Private

m e n

Teletype NY 1-40

4-2390

deferred

seems

vpar

year

leasing equip-

BOSTON

invoct

ef*in>innint

Compani^ like Bru swick-Ba

American Stock Exchange

ex¬

120 Broadway, New York 5

Steiner,Rouse&Co
13 Rector

referred Ho

ers

*inqnn

Go.)—Milton

Metals

Members

the

BLC

use

the business of

WOrth

Louisiana Securities

—

Larcn, Director of Re¬

Selig, Chairman of Board of
Trustees, The Selig'Founda-ion,
Inc., Philadelphia, Pa. (Page 2)

Sva^lon,
of
accrual
^eTSSm!'adc^^inZ

finance

companies

Associate Member

;

n_f

how¬
that na¬

clusively

Established 1920

Corporation

BLC

growing source of

1950s,
ever,

tional

designed

are

life

full

the

over

contract

was

until, the

not

Corporation
«

Alabama &

the

Yet

contract.

lease

the

terms

industry leaders in

two

desirable

Leading

u- Reynolds

installment method of

deficits to be shown in early years

equipment leasing—IBM and AMF
—rents have constituted a highly

•

Thursday; July 2, 1959

search, Jesup and Lamont, New
York City. (Page 2)

accounting/ interest costs on the
original bank balances plus ac¬
quisition
expenses ' may
cause

Director of Research

Experience

Primary^Iarkets in

Bought—Sold—Quoted
LAREN

KUNO

Wire System

Bcothe

Kuno B.

Speed

Nationwide

Participants and

Their Selections

particular security.

This
Forum

A contianoas forum in which, each

Financial Chronicle

rate in 1960,

some

eqU"y and add"i0nal

carry

higher

Reynolds is now
hundred (100%) per cent of capacity. In its last annual report; the
Chairman stated. "We began delivery of molten metal under a

N.Q.B.

long-term contract to Ford Motor

Company's
the

new

terhill.

begin
Motors'
-nnw

our

new

casting plant,

reduction facility

Similar

deliveries

mid-1959

Chevrolet

near

at Lisshould
General

Division

miscfrnrfpri

hpintf

plant

ariiacpnt in

"recentlv aoouirpd

OVER-THE-COUNTER

20-Year Performance of

Yin
POLDER

r>artner«;hin

-en?s"

with

Tnhp

Tnvpst

L'ti)-tntroT'of Sh

proadhing

one

hundred million

Continued

INDUSTRIAL STOCK INDEX
35 Industrial Stocks

Massena " New York nlant" '

Revnold*?

fs,

profit
margin.
operating at one

nated notes. Incidentally, the sue- Aluminum, which hgs sales apcessful conclusion of negotiations
with two equipment manufactur-

on page

ON REQUEST

National Quotation BureauIncorporated

46 Front Street
L

New York 4, N. Y.
—

c
190

Volume

Number 5860

The Commercial and Financial Chronicle

(3)

Rugged Competition Facing

i N i) E X

:
V

Nation's Commercial Banks
By L. A. JENNINGS*
»-1

national

banking

official

fears

well-being

df;rmahy;

—L. A.

flicting results when banks at their
'■

own

—R.

have

On the

tures

"privilege of particithe program of your

pating

and pleased

the

Association

and

speak

the

guard

•

>•

...

subject

regulation

ever,

these

Utility i rate

cial Banking.''

levels

.The theme

structures

jvhich

sion of your

are

the

.relationship to
government.

might be called

Commercial

—those

SECTION
43rd

a n

and

who

such'

carefully reg-

what'

closely

super¬

vised by 49

"Will

(it

tions

Jennings

highly;-'competitive

themselves, with mutual savings banks
and

with

all

among

the

stitutions.

Because

of the

public

policy factor,, banking is not
the

corded

other

freedom

businesses

that

and

loan

During

non-bank

types of specialized financial "in-

reside

interest

in
meeting
competition,- _• must ■ act
Within the f fame work of banking
laws, usually restrictive in character,-and give careful thought to
public policy considerations.

the

four

past

years,

' '

•

•'

proposal

The need for governmental regulation frequently applies to those
industries which hold a monopoly
on

their

hess

particular type of busiproduct in a given area.

think

the

telephone com
panies—free of local competition,
other utility companies which in¬
dividually serve large areas, and

^transportation

•

companies

which

operate

exclusively

routes;

Obviously, regulation
\

...

over

certain

■

thoroughly

were

of
•

the activities of such companies is

government officials, of the

is not

and

cons

bank

al,e

banks.

Commercial

ru5

eibows

every

Jennings before
the
Pennsylvania
Bankers
Association,
Annual
Convention^ Atlantic City, N. J.
Mr.

point

wish

From

day,

high

News

not

TELEPHONE H A

never

New

York

Our

1868

Investment

Banks

24300

Utility

Boston

Nashville

•*"*.

and

The

Schenectady

Reg., D.

Corner;;

You—By Wallace Streete_;_—

COMPANY,

Other

city.news,

111.

Reentered

■

one

useful tools in
new

customers.

Subscriptions,

Possessions,
»

second-class

matter

Febru¬

Dominion

Bank

and
per

Note-^On

it's

your

smart

place
in

of
in

rate

foreign
be

year."

THE COMMERCIAL AND

Record—Nfonthly,

(Foreign

account

year,

Publications

Quotation

year.

Members
per

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$68.00
per
Countries, $72.00 per year.

$45.00

the

and

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must

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Territories

Pan-American

Subscription Rates

President

;

securing

ary 25,. 1942, at the post office at NewYork, N. Y., under the Act oTMarch. 8, 1879.,

N. Y.

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(Telephone STate 2-0613).

Offices:

Chicago>3.

etc.).

most

Every Thursday (general*news and ad¬
vertising issue) and every Monday (com¬
plete " statistical issue >— market- quotation
records, corporation news, bank clearings,
state.and

the

1959 by William B. Dana

Publishers

to 9576

SEIBERT.

Company.

J. MORRISSEY,. Editor

DANA

Advertising

2
:—_

New York 7,

REctor'2-9570
GEORGE

Industry..-!-

Weekly

23
25

Offerings--

CHRONICLE

DANA

Chicago.

S.. Patent Office

Park .Place,

Los Angeles

Dallas

Cleveland

Philadelphia

The COMMERCIAL and

FINANCIAL

San Francisco

Security I Like Best__

Twice

N. Y.

Direct Wires to

10
33

May_______il_

The State of Trade and

inc.

40 Exchange Place,

Teletype NY 1-1825 & 1-4844

.22

Other

Worcester

HA 2-9000

Registration-1_Y-

and

Mack ie,

Recommendations,.-

Thursday, July 2-; 1959

Glens Falls

Singer, Bean

___i

Security

Bankers-_'l_-l____-^___,18

Wilfred

Salesman's

The Market

TELETYPE NY 1-5 '
Chicago

;

Telephone

-Cover
w

Securities

Now

Securities

Albany

Reeves Soundcraft
29

Governments.

011

Prospective

Exchange

Pacific Uranium

i__.-_-i.-_

Reporter's Report

Securities

ST., NEW YORK 4, N.

Castle & Cooke

page

Ling Altec

13
25

Railroad Securities

plain
to

About

Public

Factual;

purpose

Continued

Stock

United States

Bookshelf______!

Funds

WILLIAiM

BROAD

.(Editorial);

Man's

Our Reporter

with

very

Observations—A.

make

^ee

-Mutual

often' to

friction,

Spencer Trask &. Co.
25

J.F.Reilly&Co.,Inc.

Washington £head of the News—Carlisle
Bargeron

WILLIAM

Members

Regular Features

Founded

ATOMICS

__1

Indications of Current Business
Activity

PREFERRED STOCKS

BASIC

Published

have specialized in

CORP.

Washington and You

For many years we

the

Asso¬

Einzig; "British American Wage Offensive and World
Industrial Competition"

competition^
that

Dealers'

and Responsible Freedom

Subsidiary for

Dealer-Broker

commerbankers^

activities

devoted

Coming Events in the Investment
Field-__>r

competition

c'iaI

Business

purpose is to, review the
avenues fcof

to-

address

Otlook

Canadian

Banff

Bank and Insurance StocksAi!

many or all of these same forces

r'An

Investment

Springs Hotel, Banff, Alberta,
following articles on the pages indicated:

mergers.

the

METROPOLITAN

Hawaiian

purpose

various

the

to discuss
motivating, and the

reasons

CHRONICLE

Out of the Mouth of the Nationalist
Kremlin, Too! (Boxed)___
'

many

My only

concerned'largely with rate struc-

PERMACHEM

George C. Johnson Praises FHA_____^

facets that comprise the
competi¬
tive life of a commercial
bank.

course,

Companies' Earnings

Regulation with respect
of

REFINING

C. II. Ilaiues Chides Analysts for
Inflating Insurance

the"

interest.

is,

essential in protecting the public

their

—

pros

ihe part of individuals . in all.
walks of life, and including a few

the

Draft Completed foj Rival
European Trading Group

ex¬

the apparent lack of awareness

Homer.J. Livingston Sees Gold-Flow Effectuating Better
Distribution o£ World's Resources—

amined and considered. From time
to time I have been impressed by

Compares Utility Regulation

competitive " aspects rof

•

Banking Is Doing and Should Do
Roberge

—Ulric

Managing

weigh the probable competitive
effects of each proposed'' merger,
or similar transaction. When the
basic facts suggested such action,
the

rates-

400s.proposed bank
consolidations, mergers, and cashabsorptions.
It was necessary to

industries

banks,

of today's

Convention

Canada

includes the

Commercial

pnjoy.

OIL &

What Canadian

proximately

ac-

or-

hqve ? had occasion to beeome
familiar with the details of ap-t

most

.___

established by the laws of the.
several States. These statutes and.
regulations provide no - assurance
of profit.
;

50') State and three Federal bank
supervisory agencies, yet they are

COMMONWEALTH

their activities and under-

ceilings

soon

Canada's Growth Prospects and Role of U.
S. A.'s
Investment—O. J. Firestone
'

^hai]d,uiuM.-OPerate and. compete
within closely regulated limita-.

a> 16 tt' a nd^

Crump

established in the area served.Commercial banks, on the other

,_1_^

Forest Dynamics in Canada—Harold S.
Foley—_
Landmarks of Tomorrow—N. R.

captive clientele'

customers

for

—E.VH; Ely_______:____________r_

from

of-

Canadian Investment

are

TWO

Annual

ciation

;

*fo

_L__.__._1_

Common & Voting Trust shares

Recent New Issues:

the

Adu:iLj6rI^196CL (Halla§, Tq^,)
Texas
Group
of
Investment

Co., 36 Wall Street, New

Vulcan Materials
For

Convention

Americana Hdtel.

York 5, N. Y.

Company—Report—Robert

4, 1959 (Bal Harbour,

Fla.)

Continental Oil, General Development, Stepan
Pabst Brewing.

& Williams—Card memorandum—May & Gannon,
corporated, 140 Federal Street, Boston 10, Mass.

Investment Bankers Association

Saxton & Co., Inc.,

Natural

Smith Douglass—Bulletin—Bache &

Co.,

Convention

Wall

Chemical

Moyer
&

Nov. 29-Dec.

Sheraton

Scott

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

same

Street, New York 5, N/Y.
,
Manufacturing Company—Analysis—Singer, Deane
Scribner, Union Trust Building, Pittsburgh 19,. Pa.
St. Maurice Gas Incorporated—Analysis—Osier, Hammond &
Nanton, Ltd., Nanton Building, Winnipeg., Man., Canada.
San Diego Gas & Electric Company—Report—Shearson, Hammill & Co.; 14 Wall Street, New York 5, N? Y. Also available

Corporation—Bulletin—De Witt Conklin

Avon

the

(Boca Raton, Fla.)

Security Traders Asso¬

the Boca Raton Club.

chrome Manufacturing Corp.

Bausch

retter=

Rockwell

Canada—Including a survey of the
major Canadian taxes affecting business or personal inter¬
ests in Canada—Bank of Montreal, Montreal, Que., Canada.

market

1959

2-5

Annual

Wall

Canada.

are

Providence

Your Guide'to Business in

Organization, 120 Broadway, New York 5, N. Y.

curfent

(Cincinnati, Ohio)

ciation .Annual

Williston

Street,"New York 5, N. Y.
Gas Co.—Memorandum—Kidder, Peataody &
Co., 17 Wall Street, New York 5, N. Y.

Lawrence Seaway—Review of developments likely from
opening of the seaway—Bank of Montreal, Montreal, Que.,

able

Review

Pfaudler Permutit Inc.—Analysis—G.

with selec-

St.

-a

—

the

Group of Investment

National

Glass Company, Dana Corpora¬

Giant Portland Cement.

Pioneer

:j:

Glass

meeting.

Also

New York 5, N. Y.

Alco Oil & Chemical

Illinois

convention

annual

Ohio

Nov.

Beane, 2 Broadway, New York 4, N. Y.

(Philadelphia,

Bankers Association annual fall

Hay den, Stone & Qo., 25 Broad Street, New York 5, N. Y.

tions in «var!ous categories—Harris, upham & Co., 120 Broadway,

to Libbey Owens Ford

tJwens

20-year period—
National Quotation Bureau, Inc., 46 Front Street, New York
4, N. Y.
issue

Also available is

Co.

Olin Mathieson Chemical Corp.—Memorandum—J. R.

Pocket Guide for Today's investor—Current

1959

Oct. 22, 1959

tion, Kelsey Hayes Company, and the Budd Company.

over

R. II. Macy

ties & Co., 15 Broad Street, New York 5, N. Y. Also available
is a review of the Auto Parts Industry with particular refer¬
ence

14-17,

Consumers Bankers Association

Ogden Corporation—Analysis—Eastman Dillon, Union Seeuri-

Co./30 Broad Street, New York 4,

performance

Exchange

Warwick Hotel.

American Aviation—Analysis—Newburger, Loeb & Co.,
15 Broad Street, New York 5, N. Y.

market

Trinity Place, New York G, N. Y.

Stock

Pa.)

Gas

North

Corn Products Co.

and

United

(Toronto,

ing at the Royal York Hotel. '

Oct.

memorandum

Bank,

First Board of Governors meet-

Co., 50 Brbaclway, New York 4, N. Y.
Jersey Zinc Co.—Analysis—Bregman, Cu.mmings & Co.,

New

M. Kidder & Co., Inc., 1
Also available is a report

Review—A.

Street, New York 5, N. Y.

Oil—Analysis—Hardy
n. y,

yield

and

1959

Association

39th

Stout

Continental Can and the Southern Company.

Metals

Corp.

Corporation—Report—Dayton Company, 7245
Southwest 57th Avenue, .South Miami 43, Fla.
Mohawk Airlines Inc.—Memorandum—Eisele & King, Libaire,

New York City Banks—Comparative figures as of first quarter
of the 14 New York City Clearing House Banks—M. A. Scha-

Wall

Pacific Lighting

Canada)

Miami Window

—

ment Stores, Aldens, Inc., and Montgomery Ward—Thomson
& McKirinon, 2 Broadway, New York 4, N. Y. Also available

Non Ferrous

memoranda

Association

Sept. 28-29,

Also available

5, N. Y.

Wall Street, New York

wis.)
National

Corp.

Co.,

are

Survey with- particular reference to
Federated Department Stores, Marshall Field, May Depart¬

reports

Club.
'

Women 37th annual convention.

Broadway, New York .5, N. Y.
Kimberly Clark Corp.—Memorandum—Robert W. Baird & Co.,
'110 East Wisconsin Avenue, Milwaukee 2, Wis. Also avail¬
able is a memorandum on Thomas Industries, Inc.
May Department Stores—Memorandum—Francis I. du Pont
&

://

Sept. 23-25, 1959 (Milwaukee,

Rubber.

Irving Trust Company—Bulletin—Laird, Bissell & Meeds, 120

Co., Ltd., 61 Broadway, New York 6, N. Y. Also
available is a review of the outlook for Plant and Equipment
Expenditures in Japan for 1959 and
brief analyses of
Mitsubishi Heavy Industries, Nippon Flour Mills Co., Iwaki
Cement Co. and a survey of the Steel Industry.
Japanese Stocks—Current Information — Yamaichi Securities
Company of New York, Inc., Ill Broadway, New York 7,

are

data on Hindustan Lever and Duiilop

are

—

Country

Municipal. Bond Dealers Group
of Cincinnati annual outing —
cocktail and dinner party Thurs¬
day at Queen City Club;.field
day, Friday. Kenwood Country

Iloneggcrs &

Securities

New York.

Street, Boston 9, Mass.
Life Underwriters,

American

Study of changes in postwar years—
In current issue qf "Nomura's Investors Beacon"—Nomura

Merchandising Stocks

Waionda

Sept. 17-18,1959 (Cincinnati, Ohio)

&..Co., 67 .Wall Street, New York 5, N. Y.

Bonds.

Japanese Stock Market

Milk

Great

Briefs—With comparative figures

Mack Trucks and

Club.

Weeks, 40 Wall Street, New York 5, N. Y;
General Time Corp.-r-Analysis—du Pont, Homsey & Company,

Pharmaceutical

(Des Moines,

1959

Iowa

General Refractories Company—Brief

Chemical &

19-20,

Iowa)

Street, San Francisco 6, Calif.
analysis—Hornblower &

gomery

outing at St.
Club, St.

Clair, Mich.
Aug.

v
Ford Motor Co.—Memorandum—Dean Witter & Co., 45 Mont¬

Co.*, 25 Broad Street, New York 4, N. Y.
Carrying on Business in Canada-f-Bpoklet designed to answer
questions on setting up operations in Canada—Royal Bank of
Canada, 360 St. James St., W., Montreal, Que
Canada.

summer

Clair Inn and. Country

Street, New York 5, N. Y.

Banking,

Aug. 14-15, 1959 (Detroit, Mich.)
Basis Club

Ex-Cell-O

Petroleum

Consumer

University of Virginia.

Corporation, 15 Broad Street, New York 5, N. Y.
Corp.—Memorandum—J. A. Hogle & Co., 40 Wall

Boston

(Charlottesville,

Aug.

Chemical Bank New York Trust Company-^-Review—The First

able in current Foreign Letter.
Canadian

Field

Investment

Louis AH is Co.

Company.

Burnham and
Company, 15 Broad Street, New York 5," N. Y.
Also avail¬
View

EVENTS

Broadway, New York 5, N. Y.
Also in the same circular
are data on Chicago Pneumatic Tool Company and Link Belt
Burn fa am

COMING

Ltd.—Analysis—McLeod,

Young, Weir & Company, Ltd., 50 King Street, West, Toronto,
Ont., Canada.
Canadian Pacific Railway Company—Analysis—Ross, Knowles

Recommendations & Literature
It i» understood that the firms mentioned

Los

British Columbia Power Corporation,

(8)

J-625

Park

Place, New York 7, N. Y.

Volume

Number 5860

190

.The Commercial and Financial Chronicle

(9)

eral, timberland which was worth
only a few dollars an acre 10 years

For the Land's Sake

is worth from

ago

$50

By DR. IRA U. COBLEIGH

Enterprise Economist and Author of "How

Equally,-certain

Get Rich Buying Stocks."
-

•

Land has been

probably,

oldest

man s

favorite

'a-

*.•'

-ia

and,

long-term

They're
still
making
but they've stopped making land! Thus

that, par¬
ticularly in
u

highly

o r e

indus-

trializedcoun-

tries

been in

;;

most

have

acre.

al-

for

Co.

the .past

pact,o!
seething populations,

Ira

Cobleigh

0,^

'and

without

income

bite.

So in the United
hac

fhp

fnv

nnrt

mnct

i1° Provlcle

home;

plus

own

seven

Broward
hotels

the great swaths of
open '
have been held by
cither the
either
government, wealthy
individuals
or
family
holding
companies, and those corporations
that, in the course of their business, came to acquire sizable acre-

}

very

New

Co.,'members of

York

Stock

that

Col.

Exchange,
O.

William

hattan Bank.
with

the

average

man

Y.,

also

Walter Wright Joins
Rand & Go. in N.Y.

the

Walter H

plush

f2brS'

„

Wright
W11£ftt
i?..„5

is
is

now
now

are'afoo? for^bdivWin^hi sine«
suuuivuuug, business
1

fn cllavui I
^me building
p? fzabl? fctl01}f- Cammon stock

w«n

Street, New York City, dealers in

partmeut of Bankers Trust Co.
m

Fcfot#*

Planrimo-

Johnson Lstate Planning

npw sells at around $20 over the

fices^at-2-Par-kiAvenue..—_—.,

such
as
two
family
homes, smaller multiple dwellings,
or perhaps a small business
prop-

Recently, however, due to
exciting rises in acreage prices for
erty.

raw

land, especially, in Florida,
Arizona, and many sections suburban
to
substantial
cities, our
investor has been casting

average
•

an. avid
eye towards acreage for
major capital gains, to salt away
profits made elsewhere, and as a

most

effective

flation.
not
and

hedge

against

given

broker's

are

searches,

—

securities business

This

deeds

and

Burton, Executive Vice-President;
d

Fenton

Seci.etarv.

Vice-President
1vin

raw

material

the United

r.ndHk

Johnson

from

of-

interests in Canada,

Norway, French West Africa
a

Kingdom; and

number of markets

outside the

growth

Francis I. duPont Opens

Company,

PROVIDENCE, R. I. —Francis
L duPont & Co., is opening an of-

inum

July

and

admit
aamu

Richard
nicnara

will

raised

sometime

there

almost

one

minor.

Certainly "a discount of
illogical and completely
on unjustified.
There
is
currently
33%

T
r.

pending in the Court of Chancery
in
Wilmington, Del., a suit to
force U. S. Foil to liquidate and
distribute its Reynolds stock. U. S.

Reiliy, Hoffman Co.
In New Quarters

can

with

effectuate

tax free merger

Reynolds at

any

assessments:

legal details.

values'
any

not

are

and

And,

whole

based importantly

lot

one

full share of Reynolds.

U. S. Foil

is, in

opinion, the

fices to 79 Wall Street, New York
City. The firm's new telephone is

outstanding stock for both

DIgbv 4-1717.

and long-term appreciation.

is neither an offer to sell not a solicitation to buy
of these securities. The offer is made only by the Prospectus.

$10,000,000

MONTECATINI
Hndustria Mineraria

Chimica Anonima)

(Incorporated under the laws of Itulv)

daily

quoted

exchange, the buyer is

unsure

about
prices.
He may pay too
"dearly and require a decade to
bail out—arid lack a ready market
for his holding meanwhile.

usually have
timber
land.

Recently however, an increasing
number" of sophisticated investors
become

of many inter-

aware

esting opportunities to own land,
Jthrough purchase of marketable
securities,
without
any
of
the
routine
/
.

details

of ownership and
They
have
been
buying shares of companies with
valuable real estate holdings.

management.

Because

equities
we're
.

which

going
of

some

been

this

those

attracting

accent

raw

land,

issues

that

lively

have

market

assump-

For

reserves

example,

owns

Land

railroads

Pacific

land

Land

1,030,000 CapitahShares

Offered

only in Units, eacli consisting of

amount

$1,000 and

Warrant

Debenture in the principal

purchase 103 capital shares (par

value 1,000 lire each) of Montecatini,

described in the Prospectus,

Price $1,000 Per
plus accrued interest

Unit

the Debentures from June 15, 1959

stance Atlantic Coast Line Com-•
n}on» a fine raR equity in its own
right at around $58 paying $2, is
embellished by company ownershiP of 244,000 acres of "sun-

111

Texas

known

With Warrants to Purchase

holdings .among certain
are impressive. For in¬

the New York Stock Ex-

best

Due June 15*1979

St.

about

the

5V2% Sinking Fund Dollar Debentures.

3,300,000 acres of forest land in
the U. S. and over 2 million acres
in Canada. Weyerhaeuser Timber
Go. is probably the largest timberland holder with a total of 7,700,000 acres in the States of
Washington and Oregon. At $200
an acre" this would be worth over
$1 /2 billion.

Trust. Early investors in this issue
racked

the

hreoched
Florida acres capable
?
highly profitable development

Perhaps

change

toward

describe^ briefly

following.
stock

trend

large

Regis Paper Company

has

iion. that Florida land prices
(which have already had quite a
move) will continue to rise.
\
Lumber^ and paper coippanies

since land

e y^ars

Copies of the Prospectus

are

obtainable from suclPoj the several under¬
ar^registered de (tiers, in this state i

writers, including the undersigned,, as

ahead.

Northern Pacific

owns

2,244,196

land plus mineral rights
in 6,000,000 more. Union Pacific
left. There are outstanding
1,299,- owns the mineral rights on over
000 shares (technically, sub-share 7 million acres in
Colorado, Wygains
but
there's plenty of life in this
equity

acres of

certificates) representing fee ownership of surface i rights to 1,729,-

oping and Utah,

051

acres

Texas.

fabulous

Income

counties
is

West

derived

from

(

Now of course there's a wide
difference in the market values of
these assorted acreages.
In gen-

Lazard Freres & Co.

July 1,. 1959.

time, giv¬

ing each holder of Foil approxi¬

Reiliy, Hoffman & Co., Inc. an- mately
nounce the removal of their of-

per

Lehman Brothers

It is the considered opinion of the
writer that the discount, if
any, in
a
case
of
this
sort, should be

arid

discount of approximately
33%
through the purchase of U. S. Foil.

Leahy to partnershiP in the firm*

(Montccatini Socicta Generate

Reynolds for each share of U. S.
Foil.(U. S. Foil states that they
own .95074 share of
Reynolds for
each
share
of
Foil).- One can,
therefore, acquire Reynolds at a

Co., 120 Broad¬
New York City, members of
wiU
win

strong
British

office.

9th
yin

ar^

the

August, perhaps as much
$0.02 or $0.03 a pound.
U. S. Foil (67% > holds absolute
control of Reynolds Metals' (103 X

fice in Providence at 213 Howard
Building, 10 Dorrance Street. This
wil1 be the firm's seventy-third

the New York Stock Exchange,

and

Reynolds; stock¬
holders eventually should profit.
The consensus of
opinion in the
industry is that the price of alum¬

Office in Providence

July
Juiy

market. There

potentials

NEW ISSUE

Rely offered in recent months,
Next to electronics, land company
title underwritings seem now to be the
taxes most fashionable. These issues are

and

access to

y'
\
' Gaddis,
States,
an<* Nicholas G. Smith, Jr., Vice- United
particularly
in
Presidents; and Smith W. Monson, Western Europe. It is now the
only United States Company with
Treasurer.
J.
a
participation in the European

announcement

any

locality.

fees,
titles,

Burrows, -President;

very

One must learn values

trends

There

,„.t,.....

MANHASSET, N. Y.

panies, there are a number of new
ones whose shares have been pub-

in-

But investment in land is

simple.

.. .

volatile market perform?r' also with Florida landholdings,
is General Development Corp.
Here the attraction is not so much
a vast land holding as aggressive
^and sales ($10 down and $10 a
month) and the building and sale
°f hundreds of homes in new communities at Port Charlotte and
Sebastian. General Development
Common has ranged this year between 17/2 "and 23%. If you like
Florida land development com-

producers

annually, a 112,000-ton yearly
A1mo
Aima aluminum fabricating capacity, a
wide variety of production and
Robert H.

are

J. W. Sparks &

municipal and corporate securities,
& an institutional representative,
P1?S; He was formerly in the Bond I
Plms He was for,nerly ln the Bond De-

VtoriL

part he is inclined toward income

unicers

James

I Like Best

Main

way,

assoasso

Security

securities

Sparks to Admit
Leahy to Partnership

Estate Planning Corp. is engaging

investifcle funds would

some

South

J. W.

Rochester and Norwich, N. Y.

recently^ 000 a^e^rJpt'wa^ap6

•

160

D. Lunt & Co., Rhode Island since 1920.
in Buffalo!
maintains offices in

of Arvida was olfeied publicly m
^ocember, 1958 at $11 a share. It

'■

engage

9°^- ei;:.>,.

While

offices

Street to

its headquarters

with

ages.

with

Ralph S. Anthony will be Manand corporations. He was former- ager. Mr. Anthony has been acly trust officer of The'Chase Man- tive in the investment'business in

Counties)

and

propertied
M,°PAvjhLh

and
land

corpo-

and

hppn

confined to ownership of his

*a
£V-

States, real

estate investment for the average
mm

such

Elzay, U.S.A.F. (reserve) is now
"associated with the firm's New
York office, 2 Wall Street, as a
financial consultant to institutions

01!' a newcom-

marketability,
accompanied by a steady tax

arid

...

Lunt\&

announced

commercial lines.

investment
(in the case of
acreage) often for many years

"raw

f).

the

pvprvonp

there

Got. W. 0. Elzay With
S. D. Lunt & Go.

1,800,-

half an acre per share 011 the 3>"
ti.rai
978,000 shares outstanding now
in*an inrff rS
pifi J" selling,.at 53. ^Indicated dividend
f„^tivp ,r. fhf%
kppIpH
nnri
*s
-Principal income used to
vptrnpH
hv
from
be from gazing but now it's 90%
J
y
from oil and natural
Cer^
nW*nine
parts °f the land is in line for dep■ f
hJtZf iland requires capital, velopment along residential and
rbnn
nftai'
Purchase of
mineral

companies

The

TTivcf

common

has

000 acres of land for the most
part
in
ill California, New Mexico and
Arizona. This works out to almost

t?nic

land

Pacific,

City

TT+qE

Utah Corporation has been formed

of the

cases

industrial development.

Kern County Land owns

ing demand

rTTV

bALI .LAKE CITY, Utah—Fnst

Mexico and Arizona Land

...

the"

strictly
Texas

New. Mexico and Arizona.

expand¬

ever

that especially in the

20. This
company owns several,,
hundred thousand acres of land in

i m

over

300 years. The

;

1+ an aCrG'
doubt, however,

1,000,000 shares listed on.
American Stock Exchange
selling

land boom

•

easements

ma^h and water moc-

^ n°u W°r^i
There can be no

New

continu¬

ous

mangrove,

(paying bright future for patient share30c) sets a value of roughly $16 holders, based on the rising -dean
acre on a land
spread larger mand for, and the limited supply
than the State of Delaware.
The of, dry land reasonably close to
Trust sold 5,261 acres in 1958 at civilization and" in
the wake of
an
average
price of $85.69 per burgeoning urban, suburban and

it is

the properties, land sales and bil
and gas royalties interests in approximately 472,000 acres. Texas
Pacific Land, selling at 25

people

rentals,

grazing

in-

-vestment.

•

In Salt Lake

eral

diverse, but by no means complete, list of companics which include among their assets sizable landholdings.
T

raw

are worth sevthousand dollars an acre,
while others assaying high in

Continued from page 2

Corp.

up-,

located 'iJ^Florida

Containing

First Utah

today.
lands well

■

Kultn, Loeb & Co.

near-

The Commercial and

Chronicle

Financial

;

Thursday, July 2. 1959

(10)

teresting possibility is to. store up

energy from an atomic explosive,,
gt a sufficient depth in the earth
to contain the explosive, possibly,

Picture
Of Atomic Energy's Outlook

A More Realistic

MURPHREE*

By E. V.

Retiring Permanent

Esso oil

the

Company

Research and Engineering

President, Esso

could

realistic position
to atomic energy's

said to have evolved in the past

few

years as

peacetime uses.
oil and
other minerals, increased use of radioisotopes in research, and
such possible commercial chemical radiation reactions. as
polymerized materials and formation of graft polymers.

-The latter deal with use

the surface' to

produce electric power.

and in Europe,

competitiveness with conventional fuel, here
as a
source of electric power and for other

and

this, way

created

brought

steam

pea c e t i m e
atomic energy

tion

The

valuable
contribution from
most

today is the crea¬
supply of a
of radioisotopes.

number of types

These

radioisotopes

Authorities

Port

Orleans

contemplating

arc

with

being

are

having with
official

its

o peni n g.
Queen
Eliza¬

beth's

the

During

two

last

as' a source

tion of atomic energy

electric

m e n

power

based

Nuclear

nu¬

at the

pear

appears

for

plant of the

electri¬

same

cal

energy

capacity

based

E. V.

use

conven¬

there

where

relative

of fossil fuels

abun¬

at moderate

prices, the estimated cost of elec¬
tric power in a large plant based
on nuclear reactions is at present
about T cent per kwh. compared
to an average cost with conven¬
tional fuels of 0.7 cents per kwh.
X.n

where

Europe,

are

higher, nuclear
competitive
The

costs of
basically

the

fuels

conventional

energy

breeding reactors that can pro¬
duce
fissionable
material
from
U-238 and
thorium. Progress is
being made on breeding reactors
going forward at

different reactor types have a po¬
tential for marked improvement

lead to reduced in¬

pace

come

use

of power

first stage of

the

after

can

reactors

operating costs. For

Explosive

uses^ ism

„

exciting

very

Where sub¬

one.

stantial amounts of earth must be

moved, such as in the creation of
canals or
harbors, the post of
atomic, explosives can be far, less
than

cost

the

explosives
Atomic

types of reactors seems markedly
superior to the others!
In Eng¬
land, and to a certain extent in
Europe, most attention lias been

given to gas-cooled reactors.

oil

-conventional

the

explosives

same

also

are

job.
rela¬

one

the

compact and can be put
reasonably sized boles in
earth to considerable depths

and

have

The policy of the United States
nuclear reactors for electric

has recently been revised,
and two of the revised objectives
power

are

follows:

(1)

from

electric

power

that will be

sources

economically

competitive

conventional

fuels

^Formal
ree

di.y

press,

remarks

in
.

with
Europe

made by

Mr. Murph-

interview on the opening
Fifth World Petroleum Con-

press

the

New York City, June

1959.

„

oil

recovering

shale

both

these

and

useful
sands.

tar

present

cases

thinking involves setting off an
atomic explosive somewhat below
the bottom of the oil shale
bed

sand

be worked.

plosion would create
which

produce

from nuclear

means

For
Two Revised Objectives

interest because of this

shale
to

substantial
tar

the

shale

sand

roof

sand
the

This

ex-,

cavity into

amounts
would

caving

tar

contained

tar

fall

in.

would
form

ofvoil
due

The

oil

then

chunks

in the cavity and could be worked
on

recover

nil

n'niimhnvW

UU
' °Vt* 011
,a numC,el ot
methods, such as underground re¬
torting and the like. Another in¬
+,

have

used

been

the flow

trace

used to repressure oil
Radioisotopes
have
also

gases

been

helpful

very

developing

simplified methods of analysis for

materials.

many

ft R ORE ft S * O E ALERS • DiST ftlBUTO ft S
/>

y
-

••

^ •"

••

Atnnriir rPQpfnrc

v:V

for

fjrp

creation

the

„

reactions.

a very

fertile

radioactive

otherwise

•

Pacific Coast Stock Exchanjt

Honolulu Stock Exchange
?fijiie land
'

rjdiotelsgraph

•

Exchange
Chicago Board o? Trade

•

IOS

Offices Serving

•

NEW

YORK

Investors

ing every inch of the way. Two
they said were true: that
the
cost
would
be heavily
in¬

things

creased which is true and the

bottleneck.

N. Y.

•

Municipal Forum

Elects
David

one

cost

road¬

Callaway Pres.

First

Corporation,

.out

presumably,

cold

water

but

through the
then

strated

other

use

has

of radiation

later

been

and

demon¬

can be produced in
Extensive work has

they

ways.

carried

been

discovered

been

out

the

use

;

radiation-for sterilization of foods.'

the

looking
of

source

supply

r.
M r.
Callaway
u c c e e„ d s

available

of the official
President Eisenhower,

President
or

Nixon

and

Senators

Vice-

party

and

planned, "Thirty

oil

have

wide

the

toward

offer

minerals.

The

will

ago

years

But time has healed many

dices.

The English have

died

with

two

radioisotopes in iresearch
undoubtedly
continue
to

much

obtained

knowledge

new

erase any

has

the

from

their

use.

opened

Hotel

direction of

The

of-New

York.
D. H.

Callaway, Jr.

Eugene

Treasurer
York
P

Mintke ski,

The

Authority,

r e s

i d

Exchange

and

Secretary;

Bank,

Richard
ChapCompany,

John

Wertheim

Allen,

J. Kenny

delaine of J.
Treasurer.

New

elected Viee-

Vice-President

Corn

Chemical

Port

was

Leonard S.

e n

Assistant

Fitterer

Co.', and Duncan C.

Gray, Vice-President^of B. J. Van
Ingen & Co., Inc., were elected
governors to the Forum to serve
for three-year terms.
The Forum is composed of those
interested

various

rin

facets

municipal finance.

entire
been

new

Milliotis

have

port facilities.

port has been made
City, a Chicago sub¬

new

Calumet

Both

urb.

Youngstown

Bethlehem

Sheet

and

Steel

are

cuting

major expansion

Some
a

Chicagoans

decade the

say

are exe¬

plans.
that with¬

metropolitan

area

* branch' office will gain 3.5" million people—halfunder

Balzer.

the

the present population—as a result,
of-the Seaway.
*
,

Ingen & Co., Inc., 40

J. Van

Wall

St., New York City, under¬
writers and distributors of state,
.

general market and public reve¬
municipal bonds, annou.riced
the election of Edmund G. Ander¬
nue

son,

David T. Guernsey and Albert

Haiback

Vice-JPresidents.

Anderson'joined Van Ingen
1939 and was placed in charge
its Boston office in 1958. Mr

Mr.

and

Tube

Go.

Names Three V.-Ps.
-

Mid-West.

spent

An entire

B. J. Van Ingen

lic and Great Lakes Steel

Ottumwa

Harold'V.

Vice-Presi¬

now,

another

For

OTTUMWA, Iowa—Quail & Co.,. in
Inc..

Bank

anti-

important applications planning plants just outside of
Chicago in Indiana, and through¬
involving the use of radiation for.
out the Great Lakes basin other
promoting chemical reactions can
titans of industry, Inland,, Repub¬
be

CHICAGO

preju¬

time

expected..

dent

and

Assistant

bled and

wars

.needed.

application for

other

Congress¬

thing, though! her
visit is being taken as symbolizing
the tremendous economic growth
from deep deposits
that, is to come to Chicago and the
and
tar
sands
and

shale

William

there
Mayor of Chicago
William
Hale
Thompson, ~who
campaigned on the issue that if
the
Queen's
grandfather,
King
George V ever came to Chicago,
used

abundant which is
enough to
which1 will be British
feeling.

when

open¬

it to travel overnight into Chicago
where
a
red carpet welcome is

Atomic explosives offer the prom¬
ise of economical
means
of re¬
oil

yea

pomp

and ceremony

very

energy

the

fiscal

he would "kick him in the snoot/'

reactions

nuclear

serve

d ur~rn g
1959-60

they

the

have

will

Already there is agi¬
enlarging the
canal

polymers

actions

eetin g.

[

annual

the

ttTF"it^

men went from Washington to the
formation of
graft
President
Eisenhower
where
one , .type
of, opening.
went
only
as. far
as
Montreal,
polymer is joined with, another
through the reaction of radiation. leaving it to Vice-President Nixon
to do the honors at Massena, N. Y.:
While no commercial application
If the yacht Britannia ever gets
so far has been announced for the
use
of -radiation
in
this
field, there, Queen Elizabeth, and her
consort, Prince Philip will board
many new types of chemical re¬

fields

elected

was

President of The Municipal Forum
of New York

pay

Jr., Senior
of Mich¬

Callaway,

Vice-President of

igan

tlie-Seaway

tolls,

ca¬

pacity of the Wetland Canal would

promising future,

and other leading commodity exchanges

ANGELES

self Jn

One of the most

New Quail Office

FRANCISCO

passage,

seeking to

are

this

controversy { in

time

long

country, with the opponents fight¬

through
many, it might be added, as

ing.

circuit to Honolulu

SAN

radiation for promotion of chem¬
ical reactions has been announced.

With

Midwest Stock Exchange • American Stock

there

It simply docs not have the
capacity to handle as many ves¬

not. ironed
threw

may

So far, however, no
commercial' operation
that uses

grow,

week

The -Weiland Canal is the

sels

boats.

Construction of the Seaway was a

scars.

ships blocked in the Sea¬

waiting for

way

-will make

possible.

will

Members

last

kept

are

been -much room for any ore

that

reactions

use

&Co.

time

one

were

(

recovering

Dean Witter

Painters*

get

can

Wetland Canal.
A
of the Seaway
was to haul iron ore down from
Labrador
to
the
plants around
Cleveland.
But the Seaway has
been so crowded that there hasn't
purpose

for
materials can be tation
radiation
and which is Canadian owned. Ordi¬
also,
under
proper
conditions, narily it takes a vessel eight hours
depolymerized. Radiation can pro¬ to negotiate the canal. It is taking
duce cracking reactions and holds as many as 24 hours.
the promise of promoting many
All the kinks will finally be

should

Exchanje

materials. Many

polymarized

covering

times.

block.

of direct radiation and

source-

New York Stock

three

busy painting over the

skipper complained
$1,200 a day.

chemical

inducing

future,

♦

to board it

was

triumphal entry into

compounds /• has
been Chicago on J uly 6.- In view of the
through
the
use
of difficulties it is
having, there is
and
in
industry some doubt as to whether it will
are
being widely ever be able to make the
trip.
used to investigate types of flows
Aside from the fog conditions,
or degree
of mixing in industrial vessels are finding the
Seaway too
equipment.
In
oil
production, narrow and are bumping the sides.
radioisotopes, particularly tritium,, The Britannia* has
bumped them

Certainly

UNDERWRITE RS

again for

radioisotopes,
radioisotopes

Summary

Complete InvestmentsServicegi

Bargeron

Carlisle

clarified

Radiation of ail types is capable

recent Development and. certainly

to
in

if it gets the
vessels

the

through
primary

other ways.
From Massena, it

organic

Uses

down

complicated

very

Reactions

Peacetime

get

■

holding up
to 30 hours before they

She

Massena

Polymerized and Depolymerized

tively

States

sub¬

stantial scale.

fogged.

reputation

be¬

"^Morcv had

case.

will grow as traffic

But it won't grow

Massena, N.Y.,
and vinstead

felt all

being

are

from Buffalo to Denver.

Seaway

increases.'

where she

fields.

less*, rapid

the

certainly

way

The

became

effects

Such
the

was supposed
to
be
obtained
that
lo make..,its way- on to
Windsor,
probably could in many cases not
Ont., just across the river from
he obtained in other ways.
The Detroit

than the de¬
velopment of power reactors. This
seems
logical because breeding
a

of these

the United

formation

foij

today are the pressurized water
reactor, the boiling water reactor,
the
organic-cooled
reactor,
and
pas-cooled reactors. All of these

important perhaps than, the sav¬
ings themselves, however, is the
fact that radioisotopes enable in¬

but this work is

Prospects for using atomic ex-

types. of reactors

vestment and

development

the

ipore

ost attention in the United States
most attentinn In t.hp TTnifprl Stains

which should

portion

involve

will

Murphree

tional fuels. For the United States,
dance

the total
requirements of the world

substantial

that

made
available
through the use of these radio¬
isotopes have been very large, and
saving

structure*

f or fission energy
based on
uranium or thorium to furnish a

that for

twice

type.

of any

ment

about

but' does not ap¬
attractive at the present time
propulsion of civilian equip¬

surface vessels,

present

time

submarines and

tary vessels, both

energy

the

estimated

been

has

shipped for 24 cents less) and
wines (for 38% less).

Rotterdam

yacht, the Bri¬

Montreal

tries.

this

looks very at¬
propulsion of mili¬

energy

for

tractive

plant

clear

years. ——

com¬

cost areas within 10

in the higher

invest-

The
-

conventiohal fuels

with

petitive

pared \w i th
iossil fuels.

the

sources

that will

States

United

com¬

power

nuclear

from

being felt al¬

are

ready.
Manufacturers have de¬
lightfully discovered they can save
up to "50% on-certain shipments
to Europe via the Seaway.
Mid¬
western consumers, too, will pay
much less for imported, products
such as German toys (which can
be

royal

tannia,
was
three within a period of less than 10
widely used in research in many
supposed to
years a more realistic picture has
years.
fields, such as biology, medicine, take her from
(2) To produce electric power
emerged on the competitive posi¬
agriculture, and by many indus¬
■r

Other effects

New

Seaway

rence

abundant

of the News

York, Norfolk, Baltimore and. New

the

Perhaps

By CARLISLE BARGERON

high glee the trouble the St. Law¬

Radioisotopes

Supply

of atomic explosions to recover

A head

ex¬

represent a very
It is pictured that water
piped down to the heat

source

would

low cost.

research-scientist sums up the more

these

liberated from

heat

Washington

the

put

plosives

Petroleum Congress

Chairman of World

From

explosion
in
salt beds or domes. Tf sufficiently
large atomic explosives are used,
carrying

Guernsey came to Van
1958

from

poration
of

the

The

where

General

Ingen in

First Boston Cor¬

was

Market

Department from 1949 to

manager-

Syndicate

1956..Mr.

Haiback joined Van Ingen
and

Buying

now

associated

Department.

in 1949

with

its

Volume

Number

190

5860

The Commercial and Financial Chronicle

(11)

rials, drugs, nd(v

What We Stand to Lose

•

Not

;

entirely

•

"•

■'

! '

•

basic research

citing the

from science;
:

by pointing out "we

gram

ihg very pure chemicals.
Every
day we read of progress in the use

•

.*
f

afford such>a science

cannot

must be able to afford it!

it is

defense.

our

thought

fie

■

other

groups,

midst

war,

are

pro-

but

and

now,

cold

most

know,

you

has declared

what

realm

trade, and

the

have

the

year

Today,

wait

until

Lt. Gen. J.

and

may

April

issue

i>avm

The"

£ ^ ^ ^ reaching - even to the
he re miniature
used to replace
f01]n~?utA Pa.rts- Fr0™ a fissile
' iYi!azine> w.e11^ia^e a nexY

cartoon

the

rect

would

have

from

especially

effects

are

hard

sales

potential,

but,

all.

had

us to fly in jets, He
to it that the'

.our

effects

the chemicals

cited

and

should

the

now

nf
of

Many
toward

While
h

we,

here,
1P p

nlnn

are

the
>

Drive

•

•>

complain

oil

S
SJ

omy is growing at a rate of about
8% a year, while we proceed at

little "better than 2%. Their chem^al industry» incidentally, like

2'ShnUi
technical

their MusMal capacity, has

our

to between

grown

half

undoubtedly
the

this

Americans

War,

power.

several

+1^

+nvPo

focus
it

third and

one-

has

cal

have to ask whether

Soviet

many

for

nnnnaiw"

are grana tiguies, W
we

government

research0

cornerstone

World

society.

"en

giving science enough—and
right kind—of support.

Let

how

were

with

the

committees

our

ours.

The

heat

on,

;

mentum,

with

items.

second

impressed

•

indicate the nature of
their scientific and technical mo¬

remember,
the

end

indeed!

Neglected

•

research

still

last

Keystoned Basic Research

s&niHcant vSSHtf

innumerable

kind.on

seen

Government

basic'

prowess.

true

schizophrenia, and these
PCfUP u
our os~

research

of course, without basic

research
ih.
the

Eat,16 mill[?1l01f our people suf-

"New

have'

industrial

possible,

quantify.,

nf <ftin billion

science. They would not have been

drug to cure schizophrenia, for
example, might not have a vast

® xnes<r

economic gains and material products which we, as a
nation, receive

mu,

asked

of "Max-

60%~of 'our basic research, the
government doing 10% and indus-

More striking than that,

search.-. I

°J-

someone

KaBSSS

the chemical industries invested a
tenth of this money in basic Ae-

God intended

uses

is p nor moms,

In this regard,
a

^ac.

made by

was

industry.

mentally depressed

dis-

"What

chemical

trial ' investment
year

basic

demand:

«««

industries' have
been prominent in the"amount of

through the generation of new in¬
dustry/and indirect effects. Indi¬

air terminal. Her
husband, slightly
apart, waits in controlled embar-

„

^search and develop-

monf

will

butwehave
sometimes forgotten that basic re-

?ate TasTotme"

our

ba£°es™

contribute

-form a
and
unlikely list. Their economic 1m-

to hasten the recog-

remember

em-

'wypflithv

nur

work

he replied: "What good is a
baby?"

skills, and

won-

missile

vast

sense

discoveries, and

productive capaci-

technical

support

that question about tine
well's important

quality and process analysis: their scientific work.' According
The:-applications of space technol-: to the National Science Foundation, one quarter of all our indus¬

****,• uw i^

undercuts domestic, rassment while she exclaims, "If
the

a whole field has
opened up, and industry has received 'wery sensitive new tools

indignant matron is
standing by*the ticket desk of an

is.being imported, at

undercut

the

ago

bur commercial markets. Now
have jet mining, both in stone

5L+IL

some

Yorker."

sellers by four cents a gallon. In
the world markets the Russians

have

people

the

Rus¬

price which

can

you

now.

sian benzene

often

technical progress.

eco¬

nomic offen¬
sive for almost
a

many

delay it seems that
people take everything for
granted, even"the most startling

been

Soviet

After

feeling the ef¬
fects

us.

nifinn
nition

battle,

tomorrow to see the meaning of
today's events.
Tomorrow, perhaps, people will take for granted
this
extraordinary, nonmilitary.
war we
are
waging.
Let us do

competition.

Khrushchev,

war

years

It may be thaf";,
heart, w
ihe.world changes too
rapidly for v£lvesyjnay be

economic!

our

creates

opportunities for

few

technology could

■

accelerates

ties,

in increasing
Industrial research

base.

same

good is it?" I think

companies, but
tax

the

covery,

for

the battle of
today.

hoil

very

projects would

radar..-systems,

not

either^

war

ual
our

commercial poten-

many

Research

rising birth
p quarrying and in extracting our a lpwer standard of liying-therf
yvtaconite ores. From the develop-. the key factor in our economic
J, ment of infra-red for
guidance and growth is vesoarrh and Hnvnlon
we

recognize this war. They
think of armed clashes and
forgetV

the

military

Just
space

^ ~

Twenty years
ago—nobody

our atomic

f tiered what

-The background for my remarks
is war.As I have said many times

energy.

supported, not managed,
time, an investor is
only human, and when he is asked
At

only to individ-

tialities.

have

." for

atomic

■>}

difficult to manage.
must

few general and well-known

search creates revenue.
is profitable, not

ago—even five years

the

those who claim

answers

aie

process may be able to aid
consequences of prime importance
chemical industries in produc-' to the
government. Industrial re-

our.

cornerstone of our technical
prowess in
economic gains and material products obtained
compares USSR with us, point-by-point; and
as

many

ma-

i*
*

dictable. Its applications
may not
be apparent immediately—even
to
the
pioneering scientists
V
1 Furthermore, basic research is

industries has
been notably
extensive, and has contributed
heavily to our space technology.
The list goes on and on—too
long
to recite in one
day. Briefly, there

ger¬

which has
developed to
military need for compact,
reliable, electronic equipment.

unaware

development of the electron-

ics

This

Vice-President and Director
Arthur D. Little* Boston, Mass.

and

zone

terials

.meet

(Ret,)*

by first hand expedience how science can
be deprecated and/or wasted, Gen. Gavin scans our entire
science effort in a blunt, balance sheet,
appraisal and comes
up with an alarming, precursive net. Dismayed by our
myopic
response to Russia's all-out offensive threat to us, the
Bostpn
science-consultant pleads for a national
policy supporting all
areas of research and
development. He places great stress on

■

;

Executive

Among

the

melting method of purifying
manium jpia silicon transistor

Unless We Suppoxt Science
By LT. GEN. JAMES M. GAVIN

processes.

them I might mention

cal

techni-

few

chemical

recent Soviet Chemi¬

Congress, it became clear that

their polymer research has

mid-forties,
of scientists,

cluced

remarkable

results.

proAc¬

Wright brothers invented ' .jets.":
";■? ^ What Research Means
'i under the direction of Dr. Vanne- cording to last April's Chem Week,
minum, wood - pulp * a n d other There is a whole genre of ,anec^Industrial research has recipro- var Bush, got together to evaluate they have discovered polymers
products, and recently we have dotes-like this, now. I find this
with
semi-conductor
t
,
:ated t
POVGrnmpnt
hntf, in
properties,
seen what
jto the government, both in what our scientists had accom¬
they chn do in-the mass amusing because it shows how-.
and have developed a new
n
ihP
Ii .r ?nW skilled
fprmanufacture^rfhsffumerttg—J am thoroughly propellered. aircraft supplying the Dle,nts and. ckli 1
su,5t)lvi - the plants' and skilled plished and how we should am-;
l'ive to six Jimes
—plify '"Offlr—seientific * -resources • -inthinking-of the very high quality are taken for granted, and also
and by- advancing our technical the future—so that no emergency, as nutritive as the usual ones, and,
and cheap Soviet teaching instru-" because
it
shows a
very
wide¬
would again catch our country unwont wash out of the soil. In
ments
imported for use in our spread lniscpnception about the' know-hqv/. The development of
tbese proimsing areas, the Rusbirth of now and complex products.. § corn me1 cial a_i rc 1 a ft industry prepared. This famous report bescience classes.•
" ^
during The' late 20 s and 30's was,; gan with a mention of advances sians are planning a concentrated
With the flexibility of its eco¬
in applied science—radar, rockets,
as; you remember, of crucial imLack of Understanding
progTamof research and developnomic machine, and by exploiting
transportation, medicine, and so pent. Their-chemical industry is
Many people still seem tp feel
its
prices of alu-

■.

people, the Soviet Union
issue its challenge to us in
market.

nation

must

economic

any

to survive, our

are

capitalize

assets

can

this

all

battle

its
of

rubles and

als

dollars, of raw materi¬
factories, of -laboratories,

and

—

most

Science
main

—

technology

instruments

today. '
•

important

and

intellect.

the

are

survival

•

The -'Soviets

have

understood

this, and* they would present little
threat
for

their

now

massive

not

were

recruitment

scientific and technical forces.

relatively few

attained
which

an" industrial

allows

them

they have
stature

challenge
Khrushchev has challenged us

tn
to

years

trarip
trade

—

finrl
and

this
this

is
is

no
no

emntv
empty

challenge—since their central

eco¬

nomic control and low standard of

living will allow them to under¬
sell

specific

areas

of their

choice.
own

the
over

Yet trade we must, for our
good in the long run, and for
ultimate good
of people all

the world. There is a positive

aspect to this competition between
industrial

giants.
We are com¬
peting to supply good products
cheaply.
We are bringing new
materials, new methods of manu¬
facture into being. Science is en¬

riching the world, and the competition(ofthe Soviet Union and
United States can be also a war
against poverty and disease. '
'A
..

Real

War

Certainly A it

Nonetheless

new

kind

war, one which seems disguised
in the mask of uneasy .peace. None¬

theless, it is real war, and a state
we must live in for some time to
come.

Because there is no drama.

~^Taddr..S
36th

Annual

by Cm,.

Meeting

Gav'ta

American

It was a powerful list. Yet,'^—bemg^ automated, and they are mdespite the magnitude of our war- .creasmgly employing continuous
technical
accomplishments,' rMher than bateh methods. Alihf
Dr. Bush commented, "We have
*heir chemical industries share iri>
been living on our fat." To attain ,tn.e advances made by central research laboratories. A central oxy¬
our goal, he said, "We had to give
gen research group, for example,
these
the 20th Century. With a few ex¬
nc^r automatic processes, up fundamtntal research and so is
feeding new information to
we had to sacrifice
the future to'
ceptions our major technical inno¬ Eugene Ayres has remarked—"We.
plants all over the country. Gase¬
the present."
vations come from a large reser- would be faced with social disas¬
ous oxygen plants have been con¬
ter."" We would have to return to
Until quite recently basic re¬
voir of basic aiid applied research;.
J"*
structed
;YU.LUU
.lu ltluVV^
to
enhance
metallurgy
search was not at all an avenue
before we
could make practical
and the production of fuels, as
io^a? refimng t.ec niquesof te of
industry. This is understand¬
use
of the brilliant
aerodynamic
well
as
such basic products as
ideas which led to jets, we needed
|
1 ^ Qfmlity pe- able, since an investment in basic ammonia and nitric acid, and1 a
discovery is a gamble. The out¬
the work of numerous applied scicome of basic research is unpreContinued on page 28
enlists in many fields, we needed
^
consume, ine researcn
testing instruments, engineering,

Institute of Chemists, Atlantic City, N. J.

forth:

•time

'!^alep^n^°c6nfume^

of production. To our chil¬
dren this, achievement will prob¬
means

ably seem as routine as ..electric
,ights to us
But the network of

All these shares having been sold, this announcement appears

scientific labors that produced, our
jets, is a good example of techni¬

as-a matter

of record only.

New Issue

cal progress

today.
jet liners we also
outgrowth of military re¬

In commercial
see

100,000 Shares

search.

During the last 25 years,
- supported
research
contributed a great- deal to

government

has

civilian business.

Century Chemical Corporation

Our commercial

aircraft industry merged from the
aeronautical work of World War I.
Out of World War II
medical
and

t h

came

many

•CI. ASS

achievements, penicillin
e r .new
drugs, and ad¬

§urgical methods. ' The
huge electronics and communica¬
tions

industries

time work.

grew from warTransistors were de¬

veloped: Radar and TV

came

to the

grand

modern

-These

battery of tools

CO MM ON

ST O C K

PRICE $3 per

into

being. From wartime and postwar
government
projects, we added
computers and servomechanisms

(No Par Value)

vanced

our

Singer, Bean

Magkie, inc.

industry needs.
have given

automatic

Exchange PI., New Vork 5

controls, data » processing machines* and many refined instru-

the

b,eVlginning of WorI<!

that major technical
majOl
break-V v.T®?,ay'"ew p.10?es.s
evolved by the petroleum industry
throughs proceed from invention,
from the miraculous talent and —especially the use of control in¬
ingenuity ol| one or perhaps two struments—gives us a continuous,
flow
of
high quality petroleum,
men.
This vvas largely true in the
products at low prices. Without
19th Century, but it is not true in

^ Chemical research

PWjects
Synthetics

have evolved, plastics, new mate-

June 26, 1959

HAnover 2-9000

The Commercial and Financial Chronicle

Chemical Industry's Role in

D.C.

world economy
the impact of
and public investment in the chemical industry abroad.

private

as a

attention to the $500

improve its lot.

the

raise

levels

rates

of living?

cratie solutions

industry

Will

adequate
stable

and

have

power,

govern-

and

more
familiar legal
So, you see, the great
outflow of private investment has

systems.

not

try may play a significant role in
helping
to. solve this problem.
Consider the possibility of-devel-

bein

much help as we
solving the proband parts of Africa

what have

left?

Public

in-

vestment,

plus public guaranties
private
investment,
abroad,

*..i

...

last

grown

than

fast

dec-

two

d e

United States.
annual

value

chemical

products ex¬
ceeds

$24 bilion, and is

made

the industry,
nevertheless will have far-reach¬
H.

about

11,000
compounds

Rowntree

produced in 12,000 plants by more
than

outside

originating

820,000 workers. The indus¬

try is investing about $500 million

ing effects within it?
Let me
phrase the question in a different
way: What may well be the great¬
est threat in the next 25 or 50
to the welfare of mankind
the peace of the world? Wiil

years

tion

but iTs no real
of redistributing

income,

solution

but the situation abroad is not

un¬

talk

increase

total

consumption
the

expansion

through

In
ut

ical industries of the U. S.,

1900, world population stood
ihere one and one-half billion

Britain, '
persons, although man as a species
the largest in
has. been on the earth for perhaps
the free world, and chemical pro¬
100
million years.
In 1925, the
duction in the last two has grown
population reached 1.9 billion, and
at
twice
the
rate
of
industry
are

generally.

Industry
Assessment of the Soviet chemi¬
cal

industry is difficult but there

are

clues.

recent

nation's

pro¬

duction of sulphuric acid and of
plastics sometimes is used as an

indicator of the size of its chemi¬
cal
Of

1950,

billion. This was

2.5

increase of two-thirds in 50 years.

Tries to Assess Soviet Chemical

industry. The Russian output
sulphuric acid in a recent year

all modern forecasts of
population growth have proved\to

Nearly
be

low.

too

what

the

However,

let

estimators

best

■

se^
now

one-fifth

about

that

1975, world population it is
estimated will be 3.8 billion
(a

doubling ol' the total in 50 years);
and

the

billion.

2000,

year

about

6.3

the

"United States, and Soviet produc¬
tion of plastics was at one-eighth

United States leads its next cdm-

petitor, Japan, by four times in
the production of sulphuric acid.
In caustic soda, Russia is next to
us at one-sixth of our
output, and
in soda ash at one-third; in super¬
phosphates Japan is second at
one-fifth; and in nitrogenous fer¬
tilizers, West Germany follows us
at one-half of our production.
Growth of the chemical

indus¬

try abroad is the result in part of
foreign investment by U. S. com¬
panies. • Exclusive of pharmaceu¬
tical

facilities, the industry has
some $500 million in for¬

invested

eign plants and stands better than
sixth

among

overseas

all

industries

its

investment.

Quarter-Century

total

it is in these

declines 'in

areas

death

that spectacular

rates

are

oc¬

curring. It is in the under-devel¬
oped countries that living levels
are

lowest and that the growth of

population
cause

in
a

medical

now

the

annual

the

gross

national
each

Investments
This

science.

The

made

countries

growth

product

Moreover, when the popujasuch

?«J£ear*
be

economy

in-

at the rate of 2 /< or 2

creasing

meaPs

the

saved

loans

country

merely

,->

a* * ^ *°

GNP

must

standstill.

This

much

just

12-

to'its

members

foreign exchange costs

p>.r}t^s.pQj,tation, powerr irrigation,
and
similar
development

projects!where 15 or 20 years may
required f0r repayment. Allied

with

it is the

Finance

newer

International

Corporation

make

risky investments in indus-

***a* ventures in less developed

countries.

Finally,
CTeated by'

being

there is\now
itin
the 2(

American Republics and the
Slates

Inter-American

much

that

World

the

Bank but on a regional basis. In
each
bas

these

played

the

States

United

active part.

Dr.

Rowntree

before

Chemists, Atlantic City, N.J.

million

$528

reserve

against possible future losses.
This is a pretty good record for

institution in the
I
hope that
taxpayers, and as stock¬

financial

any

international
you

holders

field.

the

bank

sense,

public agency that
performs its function at a profit.
of

approve

chairman of

the

board

our

directors likes to say: After being
in business 25 years, the bank has

.employees

235

only
and

altogether,

must be regarded as a prize

bureaucratic failure.
Much

consists

theSfebanks
credits

financing
the

permit

purchase in the United States on

of machinery,

long-terms

equip-

ment, and related services for the
construction abroad of transporta¬
tion

and

facilities

power

and

plants to produce ores,-steel, tex¬

chemicals, and

tiles,

let's

if I

see

forth.

conrt^f

can

remarks with "the chemist
world economy." When¬
company, U. S. or foreign,

up my

the

and

ever

build

new

chemical

plant abroad or expand an exist-'

the

from

This

help

of a

take

may

loan

dollar

Government

"ft"?

ask the bank for help.

may

with ~dhw"project,

connection

from

the
the

form
bank,

guaranty by the bank thqt

private lender of the funds
will be repaid when the due date
arrives.
The
assistance, on the

some

other hand, may take
a

the form of

loan from the bank of the local

items

host

the

required to secure such
land,' bricks, and labor in
country, provided' the
such

has

bank

for

able
these

The

source

funds is the sale in

abroad

countries

avail¬

currencies

lending.

lor

certain

local

cur¬

to keep per capita output
falling. In order really to

capital

new

needed

The United states-also is a

prin- rencies of agricultural surpluses'"1
cipal source of public funds for from the United States.
irom
foreign investment on a national
start
to
get ahead, it. may be basis. Here three agencies of the ...In the past about $150 million
of dollar credits have been au¬
ttbeessary to save twice as much,
government may
be mentioned:
thorized
by the bank for the
This is not too encouraging an The
international Cooperation
chemical
industry
abroad,
and
answer. Today s inhabitant of an
Administration, the) Development
some
loans have been made in
under-developed
country
and Loan
Fund, and the .Export-Imlocal currencies. This, of course,
this means half the world s popup0rt Bank.

lation

likely to

cedure

too

nuich

clothes

ioodI

his

much of

slow.
in

say

Ins

back,

him

give

during

his liietime.

possibility.

pro-

put
stomach, or

house to live

the
won

5?illsl<?eA one

All of the

quired need not

(and ]ts predecessors)

fense

support

tries.

However,

guaranties

in
it

against

friendly counalso provides

re-

by tpe

investments
u.

due

losses,

r certain "political risks,"

saving

done

Tbe

js primarily concerned with matters of mutual security and de-

abroad-

new
private

provides

address

penses' and other costs, the bank
accumulated^undivided profits

currency

Devel-

opment Bank whose function will

ing event 6f the next 25 years?
*An

divi-^

ing one, intends to obtain the
equipment from U. S. suppliers,
and
wishes .financial
assistance

agency,

in
the
world
economy; 'Effects of Accelerating Population
What is likely to be the outstand¬
What are the effects of a popu¬

occur

soon

enough

solve

the impending problem.

chemist

the 36th annual meeting of the American

covered

This

private capital, and for several a situation to be able to repay in
The investment of private dollars. Finally, there is the Excapital abroad—such as the $120 port-Import Bank, oldest and most
million by the Monsanto Chemical successful^institution of them all.
Co. during the last five years—

Institute of

and

only

new

very

small part of the

investment

that

has

been

by private capital in
other fields of industry.

made abroad

this

or'

But

this

it should be, since

funds should not be ex¬
pected to take the place of private
investment. Nor can public funds
alone be expected to resolve the

public

capital. The DLF is a relaproblem of raising quickly enough
whore the greatest ballooning of Un
tively new agency which took
the level of living in under-devel-.
world. To the extent that the ecoover from ICA the responsibility
popll^tion is expected -— that is,
developed
countries for assisting' financially the eco- oped countries. Even private in¬
the poorer ones—are precisely the nomically
vestment cannot do this job alone;
continue to make foreign investnomic development of less develwrong ones to have it. Their share
the peoples in the countries con¬
of
the world's people will
rise ments, the less developed ones can 0ped countries when other sources
cerned must .themselves play ^
from
the present
0£
two-thirds- to expand now and pay later.
financing are unavailable.
major role in providing solutions
over three-quarters by the end of
^Foreign investment may take The DLF is engaged primarily in to the difficulties that lie ahead
the form of equities (stock
the century. Although tradition¬
pur- making "soft loans"—that is, doL
fox" all of lis.
ally a marked rise in the level of chase); or of loans, whether pub- ;,lar loans often repayable in the
The chemist in his laboratory
living of a people has been fol¬ lie or private. It has long been the local currencies of other countries
or
in his plant, whether here or
lowed after a time by a decline in policy of the United States to —since
by
definition many of
birth rates, this adjustment may assist greater foreign investment those countries are in too difficult abroad, has it seems to me only
not

So much for my first point. Now
let us consider the future of the

interest

treasury, and havingA
its
administrative
ex¬

wishes

different countries,

finance the

underdeveloped economy to attain.
tion

is the

--0f--

Areas

losses thus far.

Bank for
Development,

and

Bank.

makes

goal for

easy

international.

best known

owned

agencies engaged

are

International

World

must

Developed

is not

work

Reconstruction

year.

is most rapid be¬

advances

rate

saved

this

Oldest and

nations capital, about 5% of its

have
have

$2,900,000

dehds to the

Now

year-old

Only

paid

Having

job.

Several of the

amount produced.

12%

lores^e.

Why is this speed-up in growth
taking place and why may it pose
so serious a problem for all of us?
In
the
simplest
terms,
twoof the U. S. level.
thirds of the world's people live
Returning to the free world, the in
under-developed countries, and

was

the

world.

like that here-at home. The chem¬

Germany

Outflow?

repayment > terms
when private
capital is not itself prepared to do

per-capita income of $50 or $100
year. Thus the only way really

produce more, and I'm not
and
a
year in research and develop¬
speaking just of food, productive
ment, comes up with some 400 it be the spread of communism?
capacity must be increased. This
Will it be atomic warfare?
new products a year, and is grow¬
can be done only through the conThere, is reason
to anticipate
ing so fast that it has to find
tinued. accumulation of capital—
txbout $1 £-~bUb'nri of new capital that it might be neither of these,
but rather may beTTfre explosive" that is," tlu'ough'^avings. -But tho
bach year from new investors.
historical record seems to indicate
effect of too many people in the
World-wide data are incomplete
that to achieve each \% increase

and

Capital

inexpensive substitutes
metals, or other far-

industrial pro¬
in the

duction

The

power,

for
basic
Why
is
public
investment
outstanding character¬ reaching developments for which, needed? To finance development
several first steps already have projects, such as roads and- haristic be the development of auto¬
been taken.
bors, normally outside the private
matic plants? Recently a business
What we
really are exploring sphere; to hasten the establish-,
magazine carried an article de¬
here are means of raising signifment of industries, like steel mills
scribing such an event, and indi¬
m a s s-consumption
0r chemical plants, which eventucated that a computer was placed icantly ' the
level of the inhabitants of the less ally will be taken over by private
in
fully automatic control: of a
developed half ol
the world. I investors as financial success is
polymerization unit in a Texas
know of only two basic ways to demonstrated; and to
provide esrefinery.
*
reach this goal. One is re-distribu- sential foreign investment on long
Or will the event be one which,

overall

of" re¬

cent years.
Will the

twice"

of the events

continuation

due.

been written off

Asia

and Latin America,

„

which $3.3 billion

lion,

the "bank has
than $10 bil¬

years

has

it be new

pays

made loans of

lems

of an effective, reliable,
cheap contraceptive pill,

bank

During its 25

might wish in

and very

treasury—provided
interest—up to $6

the

from

the

come

They

they be sought?
To
me • it
sedfns
likely
that
chemists and the chemical indus-

opment

areas.

addition, it is authorized to bor¬

materials,

sure

where may

to the developed

billion of capital

billion additional at ar.y one time.

be found, but, ments

can

large part

products? There Regard, the effect of some means -0f
of cutting very sharply the cost These
activities, furthermore, may
major force in our nation's econ¬ can be no doubt that thousands of
of
producing
omy.
Fifth
among
our
largest new products will bd: developed loco-rlovrolnnorl fertilizers in the be carried on by national agencies
'/•Aiinfrioc
P
less-developed• countries.
Con¬ or by international ones.
manufacturing groups, its output by the industry, and that hundreds
of new plants will be built to pro¬ template real break-throughs in
during the
means
to provide really low-cost
Why the Need for Public
duce them. But this will be only a
chemical

The

held by the treasury. In

why shouldn't it have done'
so? Those regions have the largest
markets. They have more adequate sources of labor, many raw

year—a

And

hope peaceful and demo-

all

birth

reduce

row

has gone

by the use of force?
they involve concerted ef-

forts

stock

$2.3 billion last

terri-

expand

attempt to

Or will

The bank's $1

Although private investment
abroad recently has been going on
at an unprecedented rate — over

torial limits

million invested by
the chemical industry, -exclusive ,of pharmaceuticals, and to
$150 million in dollar credits authorized by ExlmBk alone for
foreign chemical firms. The ..economist explains why most pri¬
vate funds go to developed areas whereas many underdevel¬
oped countries depend upon the "international lending agencies
as
well as our public, and publicly guaranteed, loans. He
depicts the chemist and the chemical industry playing a sig¬
nificant role in helping the world's mushrooming population
Dr. Rowntree calls

these revolutionary policies
mean the wider adoption of communism? Or an intensified pressure for international
migration?

major force in the U. S. A. and
stressed by ExImBk official who examines

Chemistry

not just so many purpose of the bank <o assist in
pieces of equip- financing the foreign trade of the

even

resources.

Division,

^Jixport-Import Bank, Washington,

dollars tor

Revolutionary policies ment. It also carries training in United States provided, ."first, its
may be expected from jthe. ever how to use the machines. Best of loans have reasonable assurance
larger numbers forced to attempt all, it carries abroad a working of. repayment,
and second,
its
survival on a smaller and smaller example
of :our free-enterprise loans do not compete With private
per capita
share of the world's system—the best export we've got. capital.

ROWNTREE*

Chief, Economics

Thursday, July 42, 1959

emergency:

Aiding World's Real Grawlh
By DR. It. II.

meet*jsuch

adopted

means

the investment

squeamish- about

hardly

(12)

lation

'explosion
likely
to
be?
(And I don't mean just on the de¬
mand for chemicaLproducts.) The

nations most deeply involved will

reasons.

not only the plant and

Works of ExImBK

equipment to produce more goods, ( Eximbank is a government corbut also
provides the technical pOration which celebrated its 25th
and managerial know-how. The birthday last Feb.
12. It is the

begun the great role he may

play

generation. Whether
or not he will prove to be one of
the stars in the show, or merely
in

the

will have

major supporting role,

surely will contribute in sig¬

nificant degree to
one

of the major

solving at least
problems which

mankind is about to face.

Volume

1&0

Number 5860

The Commercial and

Financial Chronicle-

(13)°

'
New

Chicago Banker Sees Gold-Flow Effectuating

Stock

%iler Distribution of World's Resources
commenting
pessimism

several subjects, Homer J. Livingston rejects
about our past year-and-a-half gold out¬

voiced

flow; predicts

By ROGER W.

Sin

recent

address, Homer

Livingston, President of the First
National Bank of
the

favorable

ern

Chicago, stressed

European

impression

West¬

made

Speakfcg

Placing

be-

en's^Fi nance

re-

financing during periods of high

re¬

visitor

business activity, the uneven flow
of government revenues is one of

Europe
praised
the

the factors which makes
necessary
some increase in the national debt

turned
from

movement to¬

limit.

ward^ convert¬

the

ibility,

and

pointed
that

loss

has

the

rates

ceiling

government

bonds .and
Homer

out
gold
helped

our

Removing

interest

J. Livingston

^raising. the debt limit
greatly facilitate the debt

will

management tasks of the Treasury

create

better

Department. I, therefore, sincerely
hope that the Congress will fa¬

balance in the world economy and
does not reflect or indicate any

vorably

loss

recommendations."

confidence

the

consider

the

President's

the

reasons

prompting
Livingston to voice his opti¬

Mr.

mistic observations resulting from
his stay abroad is the domination
of

Soviet

political and
exploits in the news.
The

banker stated

scientific

that:

"West¬

freedom

its

and

institutions

char¬

budget—determining

"One

result

this

self-disci¬

tion

Association.

reserves

of Western Europe.

considerably

their

currencies

This
strengthened

and

permitted

Possibly

"This

Iras caused

amount

gold

certain

move

from

Some

United!' States.

have

pessimistically interpreted this
evidence

loss

the

dollar

world

and

confi¬

proof
that the United States has priced

itself
my

out

markets.

judgment, it makes much
to

sense

ments

consider

steps

irr

balance

through the
tion

these

develop¬

toward

the

world

better

economy

equal distribu¬
and

resources

keener

competition, for world markets.
"With

rope's

the improvement

purchasing

power

EiP

roughly

coinciding with the opening of the
new

look at the

St.

Lawrence

outlook

for

Seaway,

increased

the

trade

highly favorable, especially, I be?
own City of Chicago.
"I should! like also to take tips
to

comment

few

"firsts"

were

by John F. Reilly of J. F.
Reilly & Co., Inc. on his recent
trip, during which he traveled
approximately 1,500 miles on his
boat, "Mi-Don^-Ki." Leaving, New
York, he went, north through the
Erie
Barge Canal,
through the
Oswego Canal and across Lake
Ontario.

the

He traveled with some of

the ships of the American, British
and Canadian navies, through the
St. Lawrence Seaway

change, noting
whether this
is up or down,
and then con¬
our

special
have

Roger W. Babson

the

Stock

Department in which he re¬
quested, the Congress to remove
ceiling on interest rales on
longer term government securities
ury

has shown
no
appreciable change from the
previous day, most investors as¬
sume that his special stocks have
not made any change either.
The most popular Indexes are
the Dow-Jones Averages.
These

free competitive

society the
and demand op¬

divided

three

into

Hg returned

for

years.

the"

fied

stocks,

the

investor

speculator.Standard
500

and

fourth

Average

proud

the

tation

Averages also
during

quite closely.
normal

announcement

The

who

$10 by
was

is neither

latter

split in Telephone
in

stock

the

stand them and follow them

T**~

United Aircraft

r"1

Steel

Westinghouse, Electric
Woolworth

twenty railroad stocks
....'..- ■
•

the

trustees

Atchison

would

in these

Atlantic Coast Line

not6 be

Chesapeake & Ohio
Chicago Rock Island & Pacific
Delaware & Hudson
Erie

for

the time may come when

Railroad

be wise

Great Northern Ry.

sell

nor a

readers

avoid

man's investment."

solicitation of an offer
are

buy

any

offered

"btisiness-

of these securities.
speculation, ^

as a

200,000 Shares

EQUITIES, INC.
Common

Stock

(Par Value $.01 per Share)

the

Price

per

peace,

such States where:, the securities

may

elected

has

Ross, Lyon

'■

be"legally offered.

Members American

Vice-President of Lyons

factors

York

He will be located

newly opened

office, 52 Wall Street.

New

Co., Inc.

Members New York Stock

been

East 42nd

Street

Exchange
Stock Exchange
New

York 17,

N.Y.

col-

so-called

June 29, 1959

Class A

it will

of this

these

"gilt-edge" stocks

City Southern

Louisville & Nashville

offer

for

umn

Illinois Central
Kansas

Pension

Baker Elected V.-P.

Baker

criti¬

being quoted ab¬
due to their de¬
Funds^Mutual
Funds, and other funds operated
by trustees. This could mean that
mand

Pacific

interrupted in attending

- ■

normally high,

Canadian

NEir ISSUE

Lyons & Shaflo

stocks

Baltimore & Ohio

Copies of the Offering Circular may be obtained only in

Albert

fairly accurate conservative time¬
table.
Another reason why these
Averages have heretofore been
important is because trustees have
been allowed by probate couit.>
to consider the stocks making up
these Averages as safe for the
"prudent investor" to use. If one
of these should
suffer in price,

his cows.

cized for having bought the stock.
This fact, however, has resulted

offer is made only by the Offering Circular. These securities

list,

ple. The system, may not be per¬
fect, but it makes the Averages
very useful to those who under¬

Oil of New Jersey

United States

This

3.96*4.

Other stock averages are changed
or less on the same princi¬

-UiiionC a r b i d e

that

same

down

Swift & Company
Texaco

say

the

divisor

waters, by

justice of the

Then the divisor must be revised

Oil of California

LAND

over

•

again.

Standard

figure, which
3,000,000 shares.

This

•

Standard

The

other

some

Sears, Roebuck

give the
the day.

assume

until another substitution is made.

Owens-Illinois Glass

He keeps in mind

today is about
usually safe to

4.13

brought the

from

Procter & Gamble

volume

It is

•

figure will be used until there is

Motors

are:

made

were

time,

Paper
Johns-Manville

This the trained investor watches

(around-$34), plus four
in;the Industrial list

which

International

Standard; &

traded

substitutions

International Nickel

operated by my loyal
cousin, Paul T. Babson,

controls

International Harvester

covers

Gas

Foods

Goodyear

—

able

another

General

the

for

Poor's, which

stocks., I

that this

than

Electric

Service

Southern California Edison

Company

General

is compiled ,1'or

rather

y Royal Mounted Police and

fined

the firm's

Public

General Electric

well-diversi¬

covers

V.¬

Philadelphia'Electric

Eastman Kodak

period of

south through

traveling five miles

in¬

Peoples Gas

■

Times" Average over a

and attended

spe< xl limit in Canadian

erating in the market determine
price. It is the operation of these
the

Panhandle EPL

Chrysler Corporation

weighted into one Average.
There is a fairly constant relation¬
ship between these twer Averages.

Canada, Sorel, St. John's,
R?.,
into Lake Champlain and
ho*ne. En route he was arrested

Shafto, Inc.

determines

groups

French

which

Niagara Mohawk Power
Pacific Gas & Electric

investor

Du Pont

The average of 30 Industrial

passing the Queen's yacht.

and to raise the Federaldebt limit.

forces of supply

which

Bethlehem Steel

Average

the
behalf of the Treas¬

the

Anaconda

acted likewise.
If

President's recent message to

Congress

stocks

the official opening of the Seaway,

lieve for our

opportunity

stock

average

These

made

Dismisses Fears of Gold Loss

dence

whiph we
especially
re s te d,

volume

From Inland Waters

convertibility;

Poor's Corporation.

them to take further steps toward

the

who

J. F. Reilly Returns

Edison

Houston Light & Power

provide for the numerous
splits, stock dividends, etc., through
of readers, I give herewith a list,
the years, it is necessary to add
of the stocks covered in the Dowthe quotations together and then
Jones Averages.
divide the total by an arbitrary
The thirty stocks now used in divisor, which amounted to 4.13
the Dow-Jones Industrial Average on the last day
that Telephone
stock was quoted on its old basis,
are:
namely, at $250 a share. When
Allied Chemical
this was
replaced by the new
Aluminum Company
Telephone stock, it was necessary
American Can
to, use a different divisor. The
American Tel. & Tel.
change to Telephone's new quo¬
American Tobacco

are

and

pline has been a remarkable im¬
provement in. the gold and dollar
has

and

—

Consolidated Natural Gas
Detroit

stock market. For the convenience

the fi¬

that of the Associated Press,
which consists of 60 stocks mixed

live
within their incomes
re¬
Arthur Gray, Jr.
warding thrift and savings—Great.
Ifnfsuny^'Weg^^
,
-amr
Arthur Gray, Jr., former Execu¬
more
recently, France, have im¬ tive Vice-President and a director
proved their economies. In this, of A. M. Kidder Co., Inc., has
they have demonstrated the effi¬ opened his own brokerage office
ciency with which men can solve at One Wall Street, New York
national economic problems with¬
City, it has been announced.
out
sacrificing individual
frceMr. Gray is a member of the.
dojps. I found this significant de¬ New York Stock Exchange and a
velopment most encouraging.
director of the American Arbitra¬

Electric Illuminating

Consolidated Edison

few stocks

eyesight

poor

used

Columbia Gas System
Commonwealth Edison

hunting the
quotations for

our,

type used

(2)
the average of 20
Railroad Stocks; (3) the average
of 15 Utility Stocks; then a gen¬
eral average of all of these
65
stocks. Another popular Average

private
property and private enterprise.
By pursuing the objective of a
balanced

Stocks;

Cleveland

the change in volume of the spe¬
cific

fifteen, utility stocks

American Electric Power

is interested varies more or less
proportionately with the Average
volume. The Law of Averages is
a very wbhderl'ul law and it is a
great time-saver for investors who
use it intelligently in studying the

(1)

istic system of the Western World

acteristic

due

nancial pages.
Instead of

are

erally recognized, however, is that
this development manifests a fur¬
ther strengthening of the capital¬

The

changes in

Investors,' like, most .of us, are
getting lazier and lazier. This is

stocks

Arthur Gray Jr. Opens
Own Inv. Office

ern Europe .is
continuing to make
economic progress. This is widely
known. What is often not so gen¬

with

own

are:

quoted abnormally high.

clude that

dpllar.
One

Pacific;

Southern Railway
Pacific

business investment in averring these prime issues are

and the fine

"While I strongly oppose deficit

cently

partly

Favors Debt Changes

his

bank,

Southern

one or more of the four main daily stock'
The Babson Park contributor explains the construc¬
tion and advantages of these indexes. He
advises, however,
avoiding the. "gilt-edge" stocks included in the stock indexes

ceiling on the interest
jvhich the Treasury may pay
lo'ngeF term securities'may se¬

Forun\^p onsored

Pennsylvania Railroad

averages.

wise and is not in the best inter¬
ests of the economy.

foro^y Womby
the

cides with

or the price of money.

rate
on

Norfolk & Western

The average investor is taken to task by thVdean of financial
writers for assuming his individual stock performance coin¬

the Treasury in the
money mar¬
kets. In my judgment, this is un¬

him.

terest rate

Central

York, Chicago & St. Louis
Y., N. H. & Hartford,,

Union

riously restrict the operations of

etovery

BABSON/

York

New
.

trade will result from the St.' Lawrence

Seawe*r—particularly for Chicago; and explains why he favors
increasing Federal debt and removing interest-rate ceiling.

Averages and
The Average Investor

'■

•

The Commercial and

(14)

Financial Chronicle

existence

dependent
upon
the problems t>f industry/"Statistics
of our research and show quite clearly, the dependtechnologic effort, but particularly ence of ratio of growth of our
on
its excellence, let us consider, industrial corporations on the vol-

Growth and Value of Research

magnitude

And Problems to Be Solved
DR.

PRUTTON*

Food

Hopeful

of research to

our

military and economic existence, and

needed to improve its

stresses

measures

that the

military research dollar

now

He notes

excellence.

constitutes little

of GNP and civilian industrial research about the

expects it will come to 4 to 6% of GNP in 10 years—or

and

$20,-

In view of the dollar magnitude involved and

$40 billion.
its

over

same

indispensability, the author discusses impact of research
specifies what must be done to improve our

achievement and

research effort.
From

earliest

its

United

States

the

days,

been noted

has

for

its outstanding inventors, men like

Benjamin
ferson,

Franklin, Thomas Jef¬
Eli

Whi tne y,

Westinghouse,
Edison, M<^rse,
Colt, and mhny
others, who

the

Each

The

that

bined with his
the

smatter¬

tific and tech¬
Dr.

knowl¬

edge

nuclear

needed sound

with

superior

organizations,

Korean

episode and subse¬

Prutton

then

indefinite

the

against

future

strong,

im¬

dedicated to
overpower
us
militarily, politi¬
cally and economically by their
strength in research and
tech¬
nology, backed by adequate in¬
placable

ings of scien¬
nical

industries

for

were

creativity

own

back this

e n e m y,

dustrial might.

available, and usually with labori¬
Our
research
activities
have
ous experimentation, brought forth
thus grown in a somewhat erratic
new and improved devices sorely
fashion,
and- in
several
major
needed by mankind.
These men areas,
were
largely
initiated
clearly
established
the
United through external military and in¬
States

leader

the field

technology
and
inventive
genius, as well as to furnish the
base upon
which many of our

new

fundamental
founded.

industries

were

poiphinni-

In the

dustrial competition. In the future
be

must

wish

world

self-starters, if we
our position as

maintain

leaders.

must

not

fall

behind the research race, but must
lead
in research as well
as
in
other fields.—

industrial

this

leisure.

This

programs

which had their

inventors.

Any

our

pioneer

—.—^—i—

products

plants

down

eliminate

the

competent'

ob¬

should agree that ft the re¬
search
activities
of
these
com-

server

p a n

had

e s

developed
the

years,

their

not

been

fully
intervening

the

over

rate and

soundness- of

tremendous

have

been

growth would
greatly impaired.

and

development

over

Product

program,

expending

are

our

dollars-

"and

somewhat

Gross

skills.

uting

lor

many

However,

National

military re¬
search. As the complexity of mili¬
tary weapons, offensive and de¬
fensive, increases, as it
surely
will, these expenditures must be
greatly increased.
The develop¬
ment of long-range guided mis¬
siles, space platforms, space ships,

prowess and the necessary
industrial backup for research de¬

velopments
were
primary
re¬
quirements for waging a success-'
Jul

major

war.

Based

the

upon

teachings of the First World War,
initiated activities which, over

several

decades, have given us an
•outstanding chemical industry
based upon a sound and adequate

organic

chemical

research

pro¬

gram.

the

Second

World

War,

again had proven to us that we
had been asleep between wars in
ihe field of research on new mili¬

tary equipment, and materials and
methods
needed
for
waging a
winning war against a technicallyproficient, strong adversary., With
desperate effort, we successfully
overtook the lead of the Germans

synthetic rubber

and

military

•An address by Dr. Prutton
before the
rnnual

tJi

meeting of the American Institute
J.

Chemists, Atlantic City,

Predicts^ Rise in Research Dollar

the major

our

industrial

one

ganizatipns still
fully

its

Objectives

too

or¬

many

does

utilize

not

research

possibilities,
Many research organizations function with little, if any, guidance

ex--from

top management. This

exec¬

and

derived from

ucts

special

our

expanding

tween

research.
on

technologic

develop-

and

the

time

iime

when

the improvement of our comes
productivity
has
been commercial venture.
Obviously,
from 1 .to 3%
each yea1'-^nis research
objectives must be intechange, one one hand^ tends to grated with commercial and ecolower employment sligntly, but it
nomic planning, if effective conalso serves to enable employers
version of research results to combetter to pay still higher wages
mercial products is to be accomto all their employees.
Since our
ished.
';t/
pi[shef]
American
economy
is based in
Research
management
is
still
large measure upon the purchasingto power"" of "*aU our "people, quite deficient in many respects
greater volumes of goods can be m its inspiration, guidance and
purchased and its volume increase, Jrgani^atlc>n
our
e*~
..

resefriefe^fort~e0ntinues40-^ttst. bejaerieg,t|d

jhfL
tremendous: costs, and meftieien-

and

modified

increased need

development" from
our

Gross

National

Product, meaning from $20 to $40
billion each year. This great sum
if constructively expended in re¬

search, is insignificant when
pared

with

taking

mize

people
the sec-

programs
for
in order to mini-

the

technological

the

benefits

com¬

such

expect expansion
of

nance

level. If

our

mainteresearch

do not expand to meet

-research

competition,

many

our

industries

Better

with

our

generate for us+ for

economic

and

military

the

These

every-day operations and the

types of incentives

program,

new

government

our

improved* military security.
large areas for additional

New

taxation

the ever-increas¬

pay

ing cost of government.
A

citizenry

constantly improv¬
its living stand¬
ards, and its health.
Greater productivity and eco¬
ing

its

income,

nomic

strength

better

meet

the

even

present

level of our military and civilian
research programs. Much of this

work must be carried
institutions

arid

in edu¬
some

industrial

and

Both government anci industry! must, assume greater re-

groups.

past

in.

its

building
or

underdeveloped

groups

and

our

areas

country

own

abroad.

Two of the most rapidly devel¬

oping-eountries—^ West-Germany
and Russian—have set up encour¬

accelerate their rate

agements to
of

technologic growth. We should

take

example.

To summarize:

(1)

military

Our

political
research.

and

upon

(2) Research is the basis of our
existence
and
growth.

economic

Research

(3)

changing the
exist¬

individual

research develop¬

facing and must
rapid change and
expenditures will

than

this

they

I know we

with

effort.

research

our

(5) Our government and indus¬
try must increase their construc¬
tive

have

aid

gram,

all

research

segments

and

our

development

Present

efforts

are

pro¬

inade¬

quate for the expanding program
which lies ahead.

Through military and industrial
our research activi¬

developments
have

ties

been

projected

into

vital key spot in public affairs. We
must take complete advantage of
this

opportunity

mankind,

and

for

our

must face

work

for service to
reaping acclaim
achievements.

and

this

challenge with

confidence, with flexible attitudes
meet

with

changing

problems,

but

that

determination

full

must not fail.

„

' /.

With Eastman Dillon

all-importaiit

fundamental research

solve,

instrumentation and skilled operators
are
absolutely essential in
modern research.

sponsibilities

the nation

several

major
obligations in maintaining ade¬
quate
military strength and in

nected

Help

research instruments. Superior

the

reaps

will, several serious problems con¬

and

ciently active m the perfection of

cational

seem

expand to still higher

Skilled

governmental

benefits:

many

suggestions,

Instruments

for

re¬

out

justified, for from this civilian in¬
dustrial research and development

This country has not been suffi-

adequately

Better

military

projects contracted

men.

area.

PHILADELPHIA, Pa.—Eastman

Primary to
0f

and

industry would aid.

levels, if
Need

will face dire consequences.
In

improve-

even

present

education;

matter from where they origi- patterns of our
nate. The improved training of ences. Through
research technicians is extremely ments, we are
important for the reduction of the face a world of
load of repetitive laboratory and growth.
testing work now detracting from
(4) Research
the creative productivity of our continue to

impact of
unemploy¬

technological

of aid to fundamental

indoctrinated security depends

fully

However, to realize those higher

levels

in the form

administration,

research

unbiased view of

best research

new

.no

training

eliminate

possible

creative

ideas and concepts

provide training in the
newer skills needed in this changing world. We must provide more
adequate

must

govern¬

our

development of

considerations, but could also be

in teamwork, and particularly into

mature workers

individual

men

our

life of change, and

ond

pro-

corporations, research has finally
become integrated with their
very
our
descendants, ana for the world existence, continuing growth and
at large.
superior performance. 'No longer
Faced with the great probability is
a
research
worker
a
longof such a major
haired scientist out of touch with
expenditure, and

program can

our

gained

such research
This encourage¬
could consist of adequate tax

research

At the bench level in research,

our

for better

educational

One is to train

grams.

for

<->ies which lie between a laboratory research achievement and a
commercial success,
;

the

ment

*>rts Better skills and techniques

adds to total employment.
■—Our

and their

and

many

founding

encouragement from
ment

worker

days,

individuals

rewards

finally beconverted into a profitable

ments,

administration and utilito meet the rapid changes
zation. The sudden
upsurge of re-t
technology which will flow
search ".volume
has
resulted
in
from
rapidly-accelerating com¬
much
confusion
and,
in many
petitive research, here and abroad,
and to meet the demands arising cates, lowered individual research
from
our
military activities; It productivity. We must learn how
would not surprise me. if in ten to operate our research program
at maximum
years we will be spending for all
effectiveness, if we
ahead

can

earlier

own

project shows
promise in the laboratory,

initial

Based

the

ment

research

creative

employ-

utive level must provide knowing
anci understanding supervision, fiskills rnancial
patience
and
adequate
are
in demand^ for the manufacfunds, particularly in the many
ture of new and improved prod- months
that
usually elapse be-

created,

being

The lifeblood of our applied research program is nourished by
that are necessities for our" the
facts
and
theories
flowing
program expends annually about
1% of our Gross National Product, personal, industrial and national from our basic research activities,
we
must
and
this
amount
improve , in This stream, at present,, is too
must
also
be welfares,
greatly increased in the years many ways our research activities feeble and is not bptfig built up
Our civilian industrial research

•

contribu¬

creative

make

products based
break-throughs.

Management

Activities

re¬

11 enges

Integrating Research

and

need

managers,

operations

may

This country of ours seems -to
ment.
nuclear submarines and airplanes,
require major rnilitary conflicts to
The impact of research on our
new fuels and other essentials will
arouse
us
from our
complacent
national security and on the well
peacetime progress. In the First .require mtich greater military re¬
search and development expendi¬ being of our industries" does not
Would War, the- excellence and
need further elaboration here.
tures. It is the price we must
pay
importance of German chemical
for continuance of our way of life.
research
were
demonstrated.
It
Must Improve Research
became obvious that superior

^he

from

scrutii/ize

our

particularly to those who

and

ment opportunities are continually

duce

today

and

tions.

investment

carefully:

will

venture

of the

origins in the work of

drop
All

scene.

research

career

youth, we must
give high recognition and reward
to the members of this profession

re-

the research expenditure of a cbr-

Keep in mind that my personal
upgrade the work done by our
mechanical ■definition, of research
is
very
workers.
Manual and highly-refield, groups of capable men were broad, covering all aspects from
petitive labor operations are deorganized to carry on and expand the generation of basic principles
creasing, while the design, conthe earlier development of the in¬ and
facts, up to the large scale struction anci operation of complex
dividual
inventors.
Bell
Tele¬ commercial use Of the new
prod¬ machines and control systems is
phone, General Electric, and a uct or process. oh the increase.
number of our larger corporations,,
Since the. beginning of the Sec¬
These various economic effects
owe their growth and prosperity
ond World War, we have had an
•of research on the individual proto
these
ever-accelerating re¬ ever-increasing military research

segments

neglects,

make

attractive

their
large
effort.
poration and the new products and profitable enterprises. Ford,
Probable Impact
j brought out by that corporation Edison, and Westinghouse are typr
Principal among the impacts of J which were derived from its re- ical. Today it is a more involved
our research achievements is that
search. This ability to bring out problem, to enter business based
upon each of us individually. Our new products based on research is upon
a
single research achieve¬
entire population is becoming ae- used not only as a measurement ment; therefore, fo make certain
climated
to
rapid
technologic! of research performance, but also that we attract our finest minds
changes, and these changes affect to determine the skill of manage- into research, we must make it
every individual in oyr country.
ment in. providing general guidr very attractive from an economic
Our very way of life is chang- ance to its research activities so standpoint,
as
well as through
ing, producing-mn over-mounting that maximum economic results recognition of their achievements.
standard of living; better foods, .are realized from; research breakIn addition to establishment of
superior housing, improved health, /throughs.
The
conversion
of
a
rewards and recognition for re¬
new
methods
of
transportation laboratory achievement into an search achievements,.; our indus¬
and coinmupication, and
greater economically -sound
commercial tries T.should
receive' more
in

formance

cations fields, and in several nar¬

row

soon

will,

counsellors

electronics.

quent events clearly proved to us

com¬

must

and pergreat research

rapid "evolution makes it
necessary
that eac'h member of
We .finally realized that, as a
our
working population be pre¬
requirement for survival, we had
pared for occasional adjustments
to continue a productive and in¬
in his employment to fit into the
tensive research and development
charding needs of industry, busieffort in all fields related to mili¬
ness
and government.
Technical
tary methods and equipment, and
obsolescence of
and

research

creative fields.

including

areas

national

superior

talents

other

Weapons,

demonstrated

their

aircraft, and then surpassed them
in

which

Thursday, July 2, 1959

in the research race,

ance

where

areas

of their research activities. A

corporation

management

improve

longer will wait for military necessity to prod
Dr. Prutton depicts the crucial import¬

we no

ume

program

finally give brief considjgra-

tion of those

Corp.
.

principal economic andfrel&ted

impacts of this research
and

Machinery and Chemical
New York City

•

CARL F.

Vice-President,

Executive

the

applied

the entire program

and

basic

research

that of adequate manpower. Well-

trained,

inspired

people

ade-

Dillon, Union Securities & Co.,
Philadelphia National Bank Bldg.,
announce

son,

that William T.

Richard

Ander¬

Richard
Peck and

Fisher,

quate numbers must be provided,
Our schools must be built up by

financial aid from all sources, by
advice on the part of our best

sociated

minds, and by the encouragement
of education by the general public.

nounced the association with them

Gagne,

George

Cosmo J. Sirchio have become

with

them

representatives.

as¬

registered

The firm also an¬

of Richard C. McGeehan.

Volume

190

Number 5860

The Commercial and

Financial Chronicle

(15)

The New International Conscience

the

widening

maximal

effort.

The

former

economist

reviews

estimated

now

may

kind

another

artificial

balance

something

needs, and

nological innovation
needs,

which

the

nations

to meet those

characteristic

now

goods

essential

that

econom-

population field.

C
/
biggest contributpr to this which are required in order to
rapid population growth has been' achieve a better way of life. But,
Asia. This complicates the prob¬ provided? these
conditions
exist,
lem
of
economic
development the .international community
there
in
various
ways.
Among should be conScious of the need

the

The

almost

insuperable

problems involved: and asks taxpayers,
whom he agrees have a right to know what
they are getting
for their money, not to stop their sense of social
justice at
the political boundary line and not fail to realize that this
may
be viewed as enlightened self-interest* i.e.,
provide good value
in the long run for the amount taxed.
Pleased by increased
international conscience and

action to
I

wish first of

Rotary
tive

International

support

giving

avert

thank

for

countries

many

•

world
with.

international

are* ■Ave

the

fresh

start

begins
month.

It is

program

many

governments,

resolution

hope

to meet

the

of others.

Refugee

a...

the World

reflect

Year

one

special field what I believe to be
a

significant development of
years
since the end of the

very

-the

-Second

World

War.

have

mind

the widespread growth of

new

sense

international

re¬

sponsibility—the beginnings of an
international
conscience.
This

painful fact that in

economic
.

wide,

field

between

world

gap,

the.

the

areas

Asia

and

steadily becoming wider. Econ¬

omists

have

commented

phenomenon,

1 y

a ma

for it and

reasons

this

the

z e

have suggested

remedies. While all those remedies

for

call

maximal

.part" of the
tries,

they
of

sense

part

call

for

responsibility

the

coun¬

The

with

the

emergence

awareness

new

has

inter¬

coincided

the awakening of Asia.
postwar period, nations

Asia

which

had

been

for

and

to .help on the
fortunate.
If

not

practical

find

and

ex¬

con¬

structive action, there is bound to
be

achieved

their

in'

helping these
this goal.
We

see

motion

even

rule

cases

countries

reach

similar

Nations

Africa.

members.

This

has

taken

place, and ;s taking place,
not only in respect of countries
formerly under colonial rule, but

situations do not

duty

our

tries

which

develop. It

assist

now

are

the

coun¬

serious

disadvantage in making an in¬
ventory of their own ' resources
in

and

their
to

diagnosing the
economic

direct

all

responsibility.

these newly

independent
countries, it is' increasingly real¬
ized that political freedom
quires for its healthy growth
achievement

doms, such
There

lessriess
is
t

'An

J9.59.

fact

also

other

address

re¬

the

free¬

freedom from want'.

surging tide of
these countries!

all
by

have
Mr.

The

*s amply

development is
like the long and
hard trek up a mountain than an
more

Refers to

suggest

reckon

Hammarskjold

the

appropriate

the

form

time

most

and

when

and

remedies.

time
some

now

materials

raw

finished

goods.
be ripe

seems

transfer, to the benefit

all, of resources^—both
material

—

the

human

opposite

manner

Some

Difficulties

Typical

might

could

and

the

perhaps, I should give

malady, It is not equally easy to
prescribeAhe cure. The problems
facing
these
countries
are,
in
many

but

different
Most

common

cases,

the solutions
of

in
the

which

Some

different

problems

are

countries/

countries

ancient

4hey

problems

have to b£

may

Asian

proud.

face

these

countries today arise by the
tries.

are

civilizations

justly

that

doubt

of time.

course

uncovered

better

mobilization

ploitation

available

of their

ex-

ma-

This

sound.

Espe¬

true when technology has
transplanted. In practically

important difference

problems

every, case,

tion

bound

are

have to

A.i

adapta¬

arise

observations

of my

most

probably

-l.

apply

Africa with equal force.

As I have

t^ke into account various

United

other end. To give icy required "from more advanced
example, advanced technology countries would reflect on interinvolving intensive use of capital national solidarity which in turn
a
and of labor-saving machinery is finds
strong
justification
in
obviously not well suited to the their own enlightened self-interneeds

of: countries

problems

facing

surplus

acute

labor

and

**ine 0»

very

funds,

but in

for

finding solutions for prac¬
problem of economic

every

social

development.

For

ex¬

ample, answers to the population
problem in these countries have
to

take

social
well

into

and

from

account

important
factors
as

rejigious

political factors different

those

experienced

„

the

West.
As

matter

consideration
the

should

specific

given

traditions

serious

course

these

important

that

the

often

—are

sometimes

ideals.

make

for

This

may

somewhat

too

ready acceptance of austerity
which, however, is no excuse for
acquiescence by governments and
poverty.
there
a

live

The

taken

state

Whatever
the
ideals,
everywhere to be found
to improve
living

urge

standards—an
share.

inhuman

...

first things
up

first

which

urge

are

all

;

that should be
obviously not

purely physical things like
food, clothing, ana shelter, but
also, a healthy environment and
facilities for education. If there is

steady and visible improvement,
by year, in these basic facili¬

year

ties,
their

then

the

people

bilateral

aid,

international

the taxpayer's pocketbook

touched

ask

and

what
his

there

value

Portant to

entitled
is

receiving

can

hold

heads

high, secure in the
.knowledge
that
progress
to
a
dignified life is being made ajnd

wiiv

way

sense

and

rest upon

peace

development of thi®
international solidarity

upon

understanding^ oJf

have

spoken about economic
mainly. This should not
make us forget the special value®
matters

the

United

Nations

in-

strument of negotiation, be it b&tween the Atlantic alliance ami

the

tween

international responsibility which prompts such assist-

affairs.

how it may best be translated inte
practical terms applicable to til®
world in which we live,

the

answer;
think that

the signifi-

hopes for

further

but

resource®

hpp'innincf
beginning tn make
to mnm
important factoif

-sbbple

the

Bank,

.^e sense

is
is

felt

world

this question

sense

means human solidarity—-in

this
this

itself

recognize

^he

can.ce,

money.

would

Communist

the

its

less-advanced

new

countries

be-

or
West

acul

Asia

and

frontiers, and that social

reconciliation

that

justice demands that the national
resources

lift

be deployed for the up-

such

The

areas.

process,

course,
is a continuous
within national boundaries.
same

holds

one
The

good, I think; of the
All the

international community.
values

that

cherish

will

jeopardized if we do not face up
to this simple fact.
This concepis

tion

basic

Nations

United

the

work

in-the

referred

ened
rate.

the

economic

just

now

Let

obvious

to enlightme

elabo-

that

the

economically less developed countries are potentially the greatest
markets for the products of the
advanced countries.
With rising
standards of

.•

face
nnd

our

requires

soHal

lenting efforts to solve the politicaj

problems.

consrience

The

international

reflected

our

conscience is rciieciea in our ac
tions over the w|iole range of
international problems, but if \7®
ci0 nGf start with the simple ques¬
* Um~
*

„

tmn? of how to provide everybody

liying in the less de-

our

efforts are likely to be of
avail.

little

You

Rotary

seek

-<*-

and to apply

goods

—

of greater

amongst

the

all

thai
T®

-all thai

which brings people together," in
the wider and deeper sense aboui

science tells us, is
United Nations.

in fact

"seek

whirh brinos neoole together "

wn cn brings people togetnei

growing

fiplds

nomlc anci social lields' Just

which

one

il»

eco-

economic progress requires unro¬

;oelestabhshnric?:cdee-aLbevaer!
exchange

tasks in the

Wlth hls daily bread, the rest of

self-interest.
It

or among

coun-

poverty and depression within
own

Africa,

alliance,

traditional

countries within
any one of these groups or re¬
tries is only the elevation to the,
gions. Bdt political, economic andl
international plane of the basic social
factors
are
inseparable
principles of social justice which parts of the whole development,
are now accepted .as axiomatic at
When
we
try to translate the
the national level, irrespective of emerging
sense
of international
systems of thinking.
It is now solidarity from th ou g-hts int®
generally
understood
that
no
words, and from words into deecb;
country can afford to have areas we should remember that a policy
the

ance

and social fields.

only

contributions

unemployment. The problem of
adaptation arises not only in re¬
gard to the transfer of technology,

Whether

est.
or

Nations.

nations to this work ha®
heen farbelow both their capacity
and
need. But it is more im-

The

factors at the

economfa

International

p° ^ar> the allocation of

pointed out, the pol-

some

Asia and the Far East, and Africa,
*]ie„ United Nations Special
Fund for economic development
and 111 many °^er ways there i®
a n^Y aac^ fundamentally significant development in world affairs,

Enlightened Self-Interest

which

tho

of the United Nations Technical
Assistance Program, of the re¬
gional United Nations Commissions for Latin America, Europe*

and

Start Made

of the

work

Here the

primary
may
be for technological
training and social evolution, as
also for development of methods

the

need

cially

leaders

Here,

will

aspects of the emerging international solidarity which is served

great contillent, without great pressure of
population. Even vaster resources

i'or

countries.

good.

vsraMrr?:reas°» °f

Furthermore, it is. also our * re¬
sponsibility to see* that, " where they should be respected. Plain
and
high
thinking — the
outside help is essential in stimu¬ living
two do not necessarily go together
lating the process and accelerating

rest-* inheritors
This

sources

also

Kelcls 10 Malt Matle by

I have spoken of

exist in that

sources

proved

exchange of experience for which
United Nations has provided
and can provide ever growing
opportunities. ,

economic

perhaps

whoso

are

give, and the richest among us
kave something to receive. This

development,

in these early stages,
aircraft does before the

road

too

direction.

for

reasons

difficulties

also in respect of trust territories word of warning. It is easy for a
for which the United Nations has- skilled
analyst- to diagnose the
a

mainly

came

consumers

the

responsibility of the
international community to pur¬
sue a policy of solidarity so that
such

political

many

process
in.
Many African
the
pace
of economic develop¬
countries are becoming indepen¬
ment, this help is given readily
dent
and
entering
the
United"

;

ancl

tically

freedom. The United Nations-was
instrumental

many

decades,
in
some
cases
centuries,
under
colonial
have

not

acceleration

economic

the rep¬

countries

tpuched." It i»
worth remembering that even the
poorest of us have something to

is reached; as you
know, thereafter the cruising may
require less power. However, the

advanced

world

need

well,

as
of

pocket-books

new

reactions

pression

effort

advanced

less

also

those

countries

serve

and

•

Asian

already

tion.

national

the

of whose problems I haver

reseniatives

Africa.

lands

most

oJC

Rotariana

are

pari of the world, in-

along *just spoken,

necessary

take-off stage

own

prosperous
those less fortunate

countries and
is

the

danger of instability in the
poorer countries, which would re¬
flect on the political world situa¬

vast

the

thrust

their

just

the best interest of all.

especially

these ancient

were

and

Steadily Widening Gap

There, it is facing no
greater practical task than
the
economic and social development

agencies.

the

their

on
,

countries

■for

heightened desire

governments,
have
found
natural focal points in the United

exclusively

Some
Asia

such

its

the sacrifices

conscience, " and
the
efforts
to
which
it has prompted peoples

and

country

..."

and

Nations

eco¬

front

Africa

are

all

are

/gathering

eluding the countries of Asia and

poorer

Asian countries will

The

great

development,
it
is
not
possible for these countries to go

human

Such undertakings

movement

and

progress

4iuUiaa.Jhfim£lm.;pespJ^v
:

forward

builds its wealth

ef¬

challenge
of the continued presence in our
midst, after many years, of many
..

broad front, so that all share in

the

that this special

fort will permit

adequately

and in

nomic

steam.

broad

the

there

United Nations General Assembly.
Let

momentum of

necessary

which

progress

for th»

pocket-books
this

from every

resources

voluntary orDag Hammarskjold
ganizations
and individ¬
uals "are
joining hands in
re¬
sponse

the

abol¬

tile

such

machines.

easy

Rotary International

life

this

which

where

has

that

ensure

the.

countries

touched.

many centuries ago. If the scales
sea ""as a moat defensive
Let us be enhouse, against the envy of have now been turned in favor of airport runway.
the West, a main cause has been couraged by the fact that, in this
less happier lands." In the world
•the
indtistrial revolution which case, each mile on the long road
of today, no country can isolate
itself and make a little world of has taken place there, with the up the mountain should make the
next mile just a little easier. And
its own, shielded from the envy of subsequent • development of tech¬
all along the way, if we have eyes
"less happier lands." It is legiti¬ nology. This change coincided in
.to see, there will be vistas of immate
that every country should point of time with the growth of
wish to achieve higher levels of colonialism. The historic pattern proving living conditions for mil-of trade between Asia and Europe lions of people.
prosperity. "But for rich and poor
The
countries alike, prosperity cannot on a basis of equality gave place
problems of Africa have
be assured in the long run unless to a different relationship.
The their special aspects.
Vast
reto

o m e s

age

change

otherwise

know-how

achieve

the silver

who

living in

distance.

would

order to

available

countries must have

of ,the economic de¬
velopment on living standards is
not altogether lost, To maintain

forward

satisfied.

longer
possible for the poet to think of

program
to give help to
seek

are

ished

wide

and

the

solidarity,

technological,

world¬

refugees

the interest

on which
future, that the
aspirations
of
these

legitimate

Refugee Year.

•

must build the

countries

World

This

It; is

than

make

and

rate of
product an¬

higher

national

necessary in
the impact

instability.

the

much

increase

nually

practical and constructive

ac¬

the

which Rotarians

"promotion
the

all

achieve

advanced

whose

those

Its help, and of its obligation

for

things, it makes it neces¬
for the countries of Asia to

sary

responsibility, Mr. Hammarskjold

this must be translated into

warns

other

comparatively

reorganize
their production in this way to
meet
changing ^needs.
I would,
therefore,; hold that thp policy
which seems indicated by the sit- *
uation
facing
us
in
Asia
and
Africa, is one which provide®
good value in the long run for

under-developed
country
should
overlook, or even ternporarily forget, the sense of diseipline and the effort and sacrifice

the

advanced

ically

man¬

importing simple. consumer
may be needing the most

complex

Realizes the Quid Pro Quo
It

the

world and higher
living for all. In this
process, patterns
of trade may
change and "countries which am

affluent societies.

standards of

tech-

that

billion

before

added

achieves

rather different from the creation

that

trends, it will take
years
to add? a
third

two

and

lands by providing aid to those countries willing to

make

only 30
billion.
Yet

poorer

maintained., This

tell

thousands

present

between themselves

gap

world

billion

billion.

spells out clearly why hedbelieves wealthier nations
to

the

for' its population to reach
mark, but onlyJ one
hundred yearfe to add the second

Secretary-General, United Nations, New York City

react

took

the

By DAG HAMMARSKJOLD*

should

demographers

years

May More Than Pay for Itself
UN chief

Population Pace
The

lfr

^e"ew international coilthe goal oi tii3
..

The Commercial and Financial Chronicle

(16)

of new money to finance a deficit
during the second half of the.year.

"Choose Ye This Day
?
Whom Ye Will Serve"
"

By WILLIAM F.

No Justification for Concern

There

ate financial problem. Unlike in¬
dividuals or private corporations,
national

choose proponents

profits.

benefitted

The

lower

prices.. The worker benefitted by
being able to use his time more
productively and being worthy of
and receiving higher salaries. All
prospered!

the

nation.

freedom

sequence

But

have

the ultimate

over

con¬

If they are

acts.

our

good, we are blessed; if they are
bad, we suffer sooner or later: In
the words of the ancient prophet,

Joshua,
whom ye

"Choose

this

you

day

will serve."

Dickinson & Co. has been formed

term

stumbling block in
stemming from political pressure group spending and the in¬
sidious wage spiral. Maintains unions' overwhelming bargain¬

are

governments

who

Government

bonds

this

substantial

price

increases; of
time. Of ,some thirty Government more
apparent than real economic
bond issues outstanding, ranging progress. There is now a
growing
in maturity from early
1962 to recognition that if continued this
1995, the owners of only two of would .seriously weaken the

Federal Govern¬
electorate to

increased

Thursday, July 2, 1959

have
During recent years we went
credit through an extreme change in
money do not go broke because which the worker under the or¬
they run out of money. But there ganized leadership of the union
is justification for concern as to demanded all of the benefits Of
how it will accomplished.
There capital improvements and "some¬
is little opportunity to sell long- thing more."
This was a period

the value of our money a
path of economic progress-^-

ing strength intensifies importance of putting
ment's house in order. Dr. Edwards calls

weaken

Now

the power to create paper or

business "

future, nevertheless terms erosion in
serious

tlie

Government to meet this immedi¬

EDWARDS*

expressing confidence in nation'*

owners, the consumers, and
The owners bene¬

workers.

consumer

-justification for
ability of the

about

concern

First Presidency of the Church of
Christ of the Latter-Day Saints (Mormon Church)

Jesus

the

fitted

Secretary of Finance to the

Economist while

—the

of sound policies*

Gratifying reports from almostf these are Life, Liberty, and the the' issues can sell the bonds to¬ economy.
evidence improvement Pursuit of Happiness."
day without taking a loss from the
There now appears to be de¬
These concepts. of .government issue price, the loss ranging .up to
veloping
a
new
concept—:the
has
regained its former peak. were
rc-affirmctl
by
Abraham abo,ut $150 per $1,000 bond, and worker is entitled to
wage
inIncomes are higher than ever be¬ Lincoln, in dedicating the.Gettys¬ the
average loss is almost $100 per creases
equal to only the gain in
fore. Industry generally is show-- burg Battlefield;
rpEi,
*4
- ---$1,000 bond. Thus practically all of
productivity!^ This concept im¬
ing a surprising gain in earnings.
"That we here highly resolve the financing will probably be done
plies a virtue, an importance of

DES

—

with offices in the Fleming'Bldg.
to continue the securities business
of R. G. Dickinson & Co. Officers

Robert

G. Dickinson, Presi¬
.Secretary, and Sally
Dickinson,
Vice-President
and

dent

and

Treasurer.

Andrew Engberg Opens

every area

in business conditions. Production

—

Corporation

MOINES, Iowa

(Special to The Financial Chroniclf)

CAMBRIDGE,

Mirtn.—Andrew

-*s en3agjn£

curities

business

a se~

the

under

firm

•

While

the

uncertainties

that

these

of important labor ne¬

died

there

eve

are

gotiations, and international prob¬
remain

enigma, thereh-is
justification for optimism over the
long-term outlook lor economic
progress. Dynamic ,1'orces are at
work
that
probably
can't
be
stopped until we make- further
gains. Ten years from now there
will be many more families de¬
manding more of the necessities
and luxuries of life.. Typical of
the growth there should be more
Purchasing Agents responsible for
lems

dead

vtfin.

shall

That

under God shall have

freedom

and

that

have

not

this

nation

new

birth

government

short-term basis.

of this

If any part

staggering amount of

new

Government?securities cannot

sold to individuals and non-bank¬

labor

that

is not true.

Increased

productivity is not due primarily
the services of the worker be¬

coming

people, by the people and ing institutions, it must be sold due
people shall not perish through the banking system. And tools and the accomplishments of
to this extent money is literally
from the earth."
effective management.
These ideals have become tar¬ created out of nothing. In propor¬
To the extent wage increases
tion to which money is created
nished, to say the least. They have
result in increased prices or avoid
given way, in financial matters in through the 'banking system, the decreases that should have ocparticular, to an organization of real value of money is destroyed. curred with unusual
increases in
the people to legislate and legalize This is a deceptive, hidden tax in
the form of continued inflation productivity, to this extent the inm

national

scale

what

con¬

further

sidered illegal and immoral at the

and

individual

debasement

ther

creased

for workers liter-

wages

and

larger

orders. We

are

Form Estate
BOSTON,

gramming

Inc.

offices

with

Programming

Mass.

—

has

St.

Estate

been

Pro-

formed

James

Ave.

to engage in a securities business,
Officers
are
Francis .T
Mochan

President;
Shelby
R.' Saitow^
Treasurer; and Robert- M. Morrison, Clerk,

dollar.

ally comes out of the pockets of
consumers
generally.
This is a
suggested relieving modern version on a national scale
only now entering the phase of
the pro ill em by revising the Fed¬
of the old saying, "robbing Peter
new product development result¬
which the present Secretary of eral budget to exclude all expen¬
to pay Paul."
ing from the intensified research Agriculture lias tried so hard to ditures that are for capital im¬
There are many occasions when
work of recent years.
revise.
The annual expenditures provements, such as highways and
Nevertheless,
I welcome the of the Federal Government to reclamation projects. To me this avoiding wage increases is a social
service. Lowering prices for mass
farmers
invitation to speak to you frankly subsidize
and
support can best be described as a Cos¬
consumer goods for the benefit of
about a serious stumbling block agricultural prices are equal to metic Budget.
This would look
all
consumers
can
do
more
to
in the path of economic progress. the total cost of
operating the good to those who, like the os¬
This is the erosion in the value Federal
Government
only four trich, feel secure with eyes closed strengthen the economy than for
all of the advantages of increased
of
The
consumer
in
the
This
has
money.
already Presidents back.
presence
of danger.
It
brought changes in business and pays a double price: the market would smell good to those who productivity to go to a small seginvestment-proeedui^sT-and-il_ha&. price and taxes to provide for so- desire to spend more money recreated
severe
economic
pain. called " transfer* p ay merits" to the gardless of the consequences. In m-wttgcsdeml to create uitemployment and everyone is hurt espeWhile any degree of unemploy¬ farmers.
—
fact, it could be artificial, mis¬
cially the peison deprived of a
ment is regrettable, and when it
The
Federal Government has leading, and dangerous. The allJ0"*
increases as during the past year,
operated with a deficit in twenty- important question is not what the
it
Any company and any union
approprialely^iemands national three of the last .twenty-eight money is spent for, but is the total
that enters into a labor contract
attention, inflation has probably years.
The accumulative deficit amount spent for all purposes by
been the greater cause of suffer¬
Government within that provides for an annual imof this period measured by the the Federal
ing during recent years.. Main¬ net increase in the Federal debt the available income?
provement wage increase in excess
of probable increased pro¬
taining the nation's fiscal and amounts to $5,800 per
family. Al¬
The time has come when a Gov¬
monetary integrity is a "must" most 60% of the
population is age ernment official" or a legislator ductivity, plus a cost-of-living in¬
if we are to give continued lead¬
crease, is threatening the strength
thirty-five or less. To this major¬ who attempts to
justify re-elec¬ of our
ership and support to the free ity a balanced
economy. Such contracts—
budget is little more tion primarily by the expendi¬
world.
and we have had
many
during
than history, like the Pony Ex¬
more

Company.

the

for

„

Central Republic

A"*

valuable, but it is
primarily to the use of better

of the

°
Andrew GL ^Engberg
5.°^™ V£5 ^rn, 5y ?c^
pnmn

level.
There is prob¬
better example of this
than ' the
agricultural
program

ably

have

Some

First
has

orm r irst

Philadelphia
formed

been

rhlladlelphia
Corporation

with

offices 0at
165 Broadway, New York City to
engage in a securities business,

Officers are Alvin S. Abrams,
President; David Abrams, Secretary; and Ira Straus, Jr., Treasurer.
,

Frank Bond

Share Opens

FRANKLIN.. Ind^Erank Bond
&
share, Inc. has been formed
wilh Qffices at 153 East JefIerson
street

engage in a
Officers
are

business.

securities
Sima

•

—

tures

Governmental

press or

Finances

noble

bosom

feeling swells
we

reflect

our

upon

the

FBI

criminal,
in

the Model T Ford.

agents

government

circumstances

free

his

which

lofty concepts of government that continues to follow unsound fiscal
inspired the establishment of this policies.
nation. Like music from a liberty
The immediate financial prob¬
bell calling to all men seeking lem of the Government is of
a
freedom

from

are

the

these immortal words

Declaration

Inde¬

pendence:
"We

magnitude
consistent
with
outer-space age.. About $30
lion

debt

matures

between

and the year end, and all of
this must be re-financed. This is
in addition to the short-term

now

hold

these

truths

self-evident, that all

men are cre¬

the

bil¬

achieved

upon

as a

need

the

must

benefit

looked

wolf in sheep's clothes.
statesmen

anxious to

for

constituents

earn

who

are

credit for sav-"

ing the nation but who in honesty
desire to help the nation to be
saved!
Each person, each com¬
munity should ask, "How can we
strengthen our government by re¬
ducing undesirable pressures for
Federal spending?" It is no longer
a choice between adequate defense
or
social programs as against a
balanced budget. It is a choice be¬

that they

are

endowed

of Russia's Lenin that "Some

shall

force

United

the

spend itself

into

day

States

destruction."

years—contribute to the in-

Union leaders

alone

be blamed for what is

They

not

are

happening.

always under pressure
bargain periodically for wage

benefit

and

The

FOR

SALE

122-Bound Volumes of the

COMMERCIAL & FINANCIAL CHRONICLE
■

From

Jan. 1, 1929-Dec.
31, 1957
Available
Write
Edwin L.

immediately in N. Y. C.
Phone

—

REctor 2-9570

Beck, c/o Chronicle, 25 Park PL, N Y.

the

other cause

value

Spiral
of the

the

increases

...

our

checks

and

balances

for obvious reasons,

relieved

excessive

erosion

dollar

the

society. But there needs to

be restored competitive forces to

Bache

Joins J. W. Timdall
ATLANTA,

Ferry

3;.

Ga.

—

William

^e-c1?^rT connected
^
Company,
^

Fulton National Bans; Building.

economic power.

This will occur
all
of
the
people — the
"you's" and "me's" throughout all
the land—take cognizance of what
is happening and re-dedicate ourselves to those lofty concepts of

when

government that gave birth to this

New

Oppenheimer Office

LIDO

BEACH,

Y.—Oppen¬

heimer & Co. has opened a branch

0*Lce *n the Lido Hotel under the
management of Samuel T. Cohn.

nation.
\

■.

New Uptown Office
Van

Alstyne,

Noel & Co. has
office at 1431

ing strength of the union has been

opened

corrected, it is even more impor-

Broadway, New York City, under
the direction of Abraham Seif.

tant that the Federal Government

with food two decades ago,

rightful place

(Special to The Financial Chronicle)

but they need
the

office

^)as °^en announced,

Persons interested m learning

not

are

working. Union leaders will resist

has been appointed
Manager of the 2215

Street

e *ac*s on investments.

are re-established to keep wages,
prices, and profits in balance, the
wage-price
spiral cannot
be
stopped by normal economic forces.

The

Appoints

Greenberg soon - will begin
conducting, at the Brooklyn of\lce» a slimmer course of lectures

their

for

hope of stimulating sound think¬ put its financial house-in order. If
ing, I shall* make a few brief ten dollars' would fill, a basket
The union has its

Assistant

Until the overwhelming bargain-

insidious wage-price spiral. In the

observations.

Greenberg

members. Until competitive forces

Conclusion

Wage-Price

Bache

BROOKLYN, N. Y.—Jerome M.

are

Treasurer.

Church

flationary cycle.

not

Treasury bills coming due weekly tween a balanced budget or a
in
the
amount
of
$1.4 billion, weakened nation. How ironical it
by their Creator with certain or
more, for the
next fourteen would be if this great, powerful
unalienable,. Rights, that among weeks. This alone is overwhelm¬ nation in a misguided effort to
p reserve the free world and
ing
to
the
non - financial
ex¬
•An address by Dr. Edwards
given at
the Northwest Purchasing Agents' Con¬
pert. In addition, the Government strengthen democracy were to
must borrow a few billion dollars bring to fulfillment the prophecy
ference,-Seattle, Wash.

ated equal,

recent

Comer, President; Raymond C.
Fetterly, Vice-President; and Eugene
P.
Dawson.
Secretary-

fill

only

about

basket

same

one-third
today.
If

of the
recent

—."r
"
WinslOW, Uohu itench

JOHNSTOWN, Pa.
opened

will

lion of

balance.

—

Winslow,

Cohu & Stetson, Incorporated, has

continue, we can anticipate
the day in the lives of almost all

keep wages, pyices, and profits in

branch

\i/*

it will

trends

Franklin

branch
Street

office

under

the

238

direc-

buy only the empty basket.

should' be^ remembered

merica
progress

made

great

that

economic

before the rise of strong

when

people,

choose

whom

dollars

ten

we are
we

still free to

will

elect

and

the -policies.we desire them to fol-

labor unions. Three groups bene¬

low.

fitted from capital

policies

improvements

the

are

that

free

will

encourage

strengthen

Joseph E. Kuntz.

Minneapolis Assoc. Office
CITY_ g Dak_Minne_
ap0ps Associates, Inc. has opened
a

branch office at 3609 Hall under

the direction of Alvin D. Cors.

Volume

Number 5860

190

The Commercial and Financial Chronicle

only acquired Brown Trailer to missile and electronic syslast year. This year this divi- terns. In addition some earnsion is expected to
produce ings estimates range upward
about an eighth of total sales to $8 a share which would
and from there on out should
give this

THE MARKET... AND YOU
:

(17)

By WALLACE STREETE

start

of the electronic

some

rebound

.with

leadership,

Rotating

be overvalued

issues

week

this

other

dUstry
a

trial average

back to its rec-.
ord peak without any impor¬
tant help from the rails and

est

of the disinter-

measure

downturn last year
of the recession.

use

Without

long steel strike,
earnings improvement

[The

views

„„

this

J"ly..1\ir% UI}i?»

any

expressed

Z necessartj

article do

Sene?aie oer^SSa S*

coincide
th° J lni ,,Z™?*

°1

rails, particularly those the
utilities.
with high yields and others this
year could come close to
=;<
*
where
improving operations doubling the per share earnThere was a bit of selling are already established, might jngs 0f $2.70 last
year and set
t6 be absorbed as the average 'be
theP^y that carried Frue- i reC0rd above the 1955 peak,
approached the May peak hauf Trailer to a new peak when the company earned,
which blunted rallies a bit for the year this week
al- $4.25.. That
automatically
but didn't build up to any¬ though this is a dividend-less makes the $2 dividend a eariitem. And a big part of the didate
for liberalization, althing approaching the scope
of a reaction.
play in Fruehauf stems from though dividend prospects
in

eatirn) 5% %_ Sinking Fund Dollar
Debentures due June 15, 1979 and
non-detachable warrants to pur¬
chase 1,030,000 capital shares of

q y,]

American Securities

the

company. Each unit, consist¬
ing of a debenture in the prin¬
cipal
amount
of
$1,000
and a

•

Official Changes
tit-iv

t-,

™

®oal'? of American Securities

voT'cUv"' ha?

■

the

far

tion.

demand

But

such

the

show

struments

one

the

was

m pro ved to
this year of
$1.75 to $2 should per-

some

was

but its for-

mit

earnings

resumption

pay-

ments.

candidate

present.
;

Opportunities in the Oils

equal
shares

Even

the

which

case

Texaco

is Allied Mills, cur,
holding in an area
j
s
where it was as long ago as
1954. In part this might be

$2.25 to $2

name

Joseph

Dixon

Wm. N. Bannard. Ill

-.1

■■

I..1.^.1

Mill

n iu.i..w^iinn Hill—in.

M II

i>Vii

yardsticks, however, had

industrials
ahead

however,

8%.

did

that

but rails
indicate,

some

Texaco is

one

of the

oil

integrated

between
value

price
$500

the

the date the warrant is
Of

the

amount

due

over

listed

are

the last

ercise

Net

will

the New York

Exchange, will be delivered

in lieu of

capital shares

upon ex¬

the warrants.-

proceeds from the offering

applied to finance con¬
by Novamont Corpora¬
Montecatini subsidiary, of
plant in the United States

struction

tion,
a

new

for

the

manufacture

the

new

'synthetic resin,~ isostatic polypro^pylene, and other petrochemicals.
Construction
of
the
facility is

ree»and

Poor

are

principal amount of the .deben¬
tures, and the balance in United
States currency. The Montecatini
capital shares purchasable under
the warrants are owned by Banca
de
Credito
Pinanzario
(Mediobance), Milan, Italy. American
shares of Montecatini (each
American share is' equivalent, to
five
capital shares) represented
by American Depositary Receipts,
Stock

'tf ■ »«

31, 1963 at

mean

market

which

planning to acquire five years. The fact that earnThe
half year
leadership Superior Oil, the merger news ings for the fiscal year that
between industrials and rails caused only momentary inter,- ended this
week are expected
depended
mostly on what est in the two, at a time when to be well above the $3.86
yardstick was used. The Dow merger news in other ar^as earned in the last fiscal
year
averages had the rails up only contributed
importantly t o makes a higher dividend than
6% against 10% for the in¬ market price.
the 25-cent extra paid in the William Rosenwald
dustrials.
The
Standard
&
good years possible. In any eiection of H. Theodore
I

interest

and

exercise of the warrant, $500- will
be payable by surrender of $500

rently

from

the

exercised.

seven

Rails Perk Up

to
the

and

trade

before Dec.

years

its

principal

The company that has had
mundane market life for

because

value of approximately $500, is

payable in United States currency.
The warrants are. exercisable on

clipped for
Like
the
rails, the long Wayne for its animal feed.'
points but
still held an improvement of neglected
oils offer better- has little connection with the
71 points, or 100%, for the than-average yields running corporate title. The company's
first six months of the year. up to around 4% in Ohio "Oil. dividend payout has varied
than

was

aggregate market

aren't excessive since it is be-

where

even

category which

session

divide nd

omitted last year
tunes
have

pressed. Texas In¬

latter

the

demand

Fruehauf's

some

present

ture

in the

group,

of the number

one

bit hard

enable

single

electronics,

good

while

continued

did

of the issues in

•

with

announced the prlced at the debentures. Deben¬
$1,000 and accrued inlerest

piggyback operation of lieved that the company aims
ultra-selective, which is carrying motor truck trailers to increase working capital
on rail cars for the
long hauls, which is only adequate at
from being a new condi¬

The
be

its. line of trailers to be used

•

warrant to purchase 103 outstand-

ing. capital shares of Montecatini
or

...

**'

J™"1®®"""* W®ll5.

gjjecl

clark Equipment had

bit of
e c a

Like other suppliers "to in-

......

indus¬ sections.

the

carried

of the

some

favorites
f

recent

occasionally,

good \ form

sharply and still not

earnings.

TOI1"0" 155116 PI
Italic

important member OffcrPIl to IllVGSfQfS
impor- of the Big Three a times- a"u n
undenvriting grou„ man_
earnings fratio of less than 10
by Lazard. Freres & Co..
at recent levels.
^Cehman Brothers and Kuhn, Loeb

contribute

tantly to

«lf| MSIISam

giants event,

extra of at least .that

companies amount

President,

which Formerly

assured

Freeland

effective

July

scheduled to commence during the

1. second half of this year and be

Executive Vice-Presi- completed in approximately two

late

strength'

Board

tity is subject to change as the

pulled

member_ of the . executive com-

development of the project pro-

in
the rails
had have the highest' price tag i» decidedly above average.
them t out
of
their currently of any issue on the

earlier doldrums.

and

will

continue

Exchange but a 24-for-l Renewed Interest, in Motors mittee.
•
Rosenwald'
fund of the debentures
proposed exchange for Texaco •
The auto picture was one ot
...
w'.n.'
N
B'
will commence in 1964 and will
Whether, the
recovery
in shares, ^indicating a price of renewed interest in Ford and nard m has been named Execu- he sufficient to retire 100% of the
rail business will enable this above $1,800, was able to lift Chrysler as wellas in Ameri- five "'.Vice-President of the
firm.^hiect^t o ^edemDtlom-t
group to go on and tangle the
Superior stock to that can Motors which was back .in Mr. Bannard is also a director of •
Montecatini on and
the corporation, and will continue
1*
ioba at nrWs
rangwith the 1956 peak is moot. level only briefly before it action this week as various
and research
f'f
ws-'T fo Pl00?
The rails have proven to be again subsided to the mid- earnings projections; pointed
tivU
s
d lhe Public utilities
^wasMnc^oratcd
more sensitive to a steel strike
1700 S.
to some $11 to $12 per share Department.
jp Italy in 1888. In the production
than
which would give it an earnthe
steels
themselves.
Mr. Freeland joined the firm in ^
chemicals Vnd nonferrous
A Capital Spending
They suffered from a steel
ings ratio of four-times or J95^metals it is the largest company
Beneficiary
strike
le|s. The followers of Ameriin
1956
and
never
Stock

really recovered before carloadings started to drop off in

influence

1957 and 1958

•

which

made its

the recession

weight felt.

The

Steel

The

rebound this year

ap¬

be the most solid

one

pears to

Threat

The

•

—

quick to point out
for
the
economy, that the company could still
capital spending by show sizable earnings even ll

important
is

some

years,

problems

the

own

Fall.

labdr

But

roads
so

that

have

been

offers

"
u

IIamiIL

nd Vf3Upi 10 llSliQIO

■

A"i

|MI.

i||AliaAH

TWilt Iflty IHVi W0IH6H

duelling

i»ou

diuiuug

the

materials

The Board of County
^

Metropoiitan

D a

field

construction

"Summer

Party" meeting of

the
d e Women's Club which will be

held

that it has at the University Club, 420 Sumentered into an agreement with mit Avenue, Saint Paul, Minn.,
ira Haupt & Co. of New York City, Wednesday, July 8, 1959.
f « th t Jirm to handle the financA social hour 5:30 p.m. to 6:30
™ in«f the County's $25,000,000 p.m., followed by dinner at 6:30
County? Fiorida, advise

Mid-Bay

Drive

revenue

.bond p.m.

"issue.

Final engineering plans and
specifications will be finder way
at "an early date so that complehandling which interest centered most- tion of the° project will not be de-

equipment as well as ly because of %ts auto busimachinery and— ness, was in a bit more delaggard for even newer addition to the mand as a soace age contribulong that they are a group line—truck trailers. Clark has tor when the fanfare of «ab-

despite the uncertainties, the

J?d one of the ,argest

{»

mously^agreed to be on*an Three do offer considerable $25 Million Financing Summer Meeting
ofPTbringhainS1960S aUhoifgh impact'o^th^re^com^th For Dade COUHty,CommisFla.
*
Twin City Investment

consequently.

carriers face their

^VeNl^ident^im'

sustaining can were

normally advance planning tion is something that cannot
isn't usually, definite too far be charted accurately at the
But a steel strike could
again ahead. A ' leading candidate moment.
do considerable
*
*
*
tor reflecting these
damage to the for reflecting tnese higher exmgner
sharp upturn in carloadings penditures which will aimex^
at
Chrysler is the candidate
underway for the first half of more and more mechanization for a rebound and a dividend
the year. Steel movement is is Clark
Equipment which boost since in one of its more
generally
regarded
as
ac¬ Once was„Jacgely dependent lush
years;, the
shares did
counting for some 15 %~ of on truck parts but since has reach the 100 mark, a third"
freight
revenues.
And
the become an important entity above recent, levels. Ford, on
in

Strike

"linking

The theme will be "A NIGHT
IN VIENNA''. Three-piece Orchestra and music in the Viennese
tradition.
• Miss Jeapette Rystrom of First
_

layed. The fifteen mile causeway National Bank of Saint Paul, Inwill traverse Biscayne Bay in a vestment Department, Chairman
North-South direction from North of party arrangements. MissGwen
Miami to the McArthur Causeway Nicholson of First National Bank

above-average had little chance to show the s orbing its Aeronutronic with interchanges to connect to of Minneapolis, Trust Department,
yields and, in the event of benefits which truck trailers Systems subsidiary pointed all,East-West causeways that run President of the gr^up will
any sustained demand, could can
add to results since it up its important contributions between Miami and Miami Beach, preside.
,
»

Commercial

The

4.(18),

being

portion .of

GRACE

York

New

NATIONAL

•

State.

•

BANK

News About Banks

Joseph

BRANCHES

NEW

OFFICERS, ETC.

branch

Bankers

and

REVISED

York,

Woods has been ap¬
pointed an Assistant Vice-Presi¬
dent by The^irst National City
Clifford jQfe

of Morgan
of New
York, will be headed by Julian
Allen and Tupper Barrett as Vice-¬ Bank of New York. Mr. Woods is
Presidents—European
offices,
it, assigned to the Central Atlantic
District
of
the
bank's
Nati'onal
waS announced June 29 by Henry
European operations

•Guaranty Trust Company

Chairman.
Designation of °the two Euro¬
heads followed consumma¬
tion last week P^nie 28) of the
merger of Morgan »i^Cie^^lncor-,
poraled, a wholly owned subsidi¬
ary of Morgan Guaranty conduct¬
ing a bank ing business in Paris,
with the parent company. Morgan
& Cie. had been a subsidiary of
J. P. Morgan & Co. Incorporated

ejection

the

tion

Peterson

General

and

President

Brussels.

Morgan & Cie.'s location, at 14,
Vendome, will become the
branch office of Morgan Guaranty

Mr.
Alexander
said.
Operations of the Bank's branch

Paris

fill

Place

transferred

Vendome

Mr.

the

sion.

where
facili¬

Paris

well

EtoHquaHers /wijl .-be in ^Paris."

Chemical

shortly

serve

World War I and
ha& been with the Morgan bank¬
ing establishment there since 1933.
after

President

Trust Company's
ations.

Almost
has

career

chiefly

European

been

which

later

abroad,
he be¬

since
in

Bank

oper¬

banking

spent

France,

National

of Guaranty

his entire

associated

came

Vice-

been

charge

with

1922

Commerce,

with

merged

Guar¬

anty,
Mr.

Meynial joined the Morgan
banking establishment in France
in

1.925.

dent

Mr.

became

•

Havre

and

lie

serve

1955

President of Morgan

was

Cie., after

being a partner in
predecessor firms since 1924.

its

Morgan & Cie., with the part¬
nerships which preceded it, traces
a history of 91 years on the French
financial

scene.

Drexel,

began

Harjes

Co.,

with

Pierpont Morgan becoming a'
partner three years later. That

firm

was

Morgan,
turn

was

Cie.,

the

succeeded

Ilarjes

succeeded

Co.,

Morgan

The

business

was

taken

1945

by Morgan & Cie.

Guaranty

over

Incor¬

Trust** "Company

.1917 established! the Paris branch
office now located at 4.\Place da
Concorde.

•

New

June

with

Chairman

Moore,
*

Coincident

;

the

announce¬

ment, Mr. Moore made known the
elections of John A. Allen, east¬
ern division, J. Ashley Brown, Jr.,

personel
trust "operations
George Klugherz, Wall Street

and

banking

Presidents.

office

Westchester
new
quarters

The

Vice-

Assistant

Named officers of the

Richard M. Bliss,
western division, Michael F. Page,

important

area.

office

were:

company

investment

research

Garret

and

Sanderson, Manager of the 161st
aiicTEast Tremont Ave., Bronx.—r Street office.
Chemical Corn Exchange Bank,
Mr.; Koster jQine,(l.,,the pension
trust division
of
founded in 1824, with resources in
Banljers Trust
of

excess

$3,000,000,000

offices

New

the

York

Coin

has

now

City,
It

ihelucling

named

dent

has

correspondent
throughout America, and
its foreign correspondents main¬
tain.
more
than
50,000
offices

Mr.

banks

Ciancimino

Matthew

named

Assistant

Manufacturers

nounced

the

Sec¬

joined the
general
1947

an¬

David

appointed

Mr.

Meiklejohn, has been
a

member

the

Mr.

Ad¬

Officer.
The

Trust
liam

New

York,

was

Mi*. Meiklejohn is
the

Putnam

Greenwich,
The

Gartner

Mr.

Company,

Morris

Assistant

also

Vice-

an n ounced

Flanigan.

Mr.

Gartner

Assistant

was

Pelley

is in

charge

named

was

Vice-President

TIIE

capital of $1,000,000, and, a paid-

surplus of the same amount.

Assist¬

1954

and

petroleum
:

MARINE

•

TRUST

-r

: :

MIDLAND

June

30/59

Mar. 31/59

S
resources

624,853.463

577.488.908

ai^d due from
banks
S.

York

•'

the City
the fol¬

official appointments, ef¬
fective July 1, 1959:
Dolson W. Rauscher, Executive

Vice-President;
Crea.

Govt,

William

Mc-

Assistant Vice-President;
Victor
J.
Masseboeuf, Assistant
Vice-President; John L. Westney,
Assistant Vice-President; John A.

Assistant' Vice-President;

the 140th
Birthday of New York
State's
first mutual savings barfk. "The
July

Bank

will

for

inark

Savings," New

the

Among

the

movement

Livingston, Colonels of
Revolutionary War and asso¬
ciate;
of
Washington whenv as
President,

"•

opening

Alms House in

•Yorkers

also

made

apoointment of Arthur C.
Langsdorf as an Assistant Treas¬

day,: July .3, 1819,
room
in
the Old

City Hall Park, 30
a
total of

banked

was

which deposits

4th

Ave.

and

22nd

St.

quill pen and tallow candle era.
H.

Remmert, President

National

the

Bank; Kingston,

discounts 303,547,045

281.225,576

23,

13.899,092

BANK

NEW

the

Ulster
County
died June

N, Y,,

aae

61.

urer. Mr.
Langsdorf has-been with
Manufacturers Trust1 since 1,93*2.

assigned
tpi the Bank's
National Department,I his territory

Deposits
due

rity
Loans

secu-;

holllings

Undivided

577,237.321

547,671.606
474,846,489

146,828,321

•

98,492 770

97 595.784

discounts

271.021.788

257.143.620

profits—

6.748,679

6.460,219

Yawger, Trust
Secretary

Assistant

Officer

of Trust

Company of Morris County, Morristown, N. J„ fvill retire July 31
alter, 37

banking it was
George' Migisick,

years

announced
165.085.632

Govt,

from

banks
U.

Mar. 31/59

5Q3.63.5.296

Wilmer¬

Bank's

Office, according to an an¬
by Frank ft. Denton,

Vice-Chairman

Mr.

Bank.

of the

Coatsworth

had

served

of that office from 1951

until

1957, when he was named
manager of Mellon Bank's Squir¬
rel

Hill

held

in 1924 at the First National
of

Bank

Wilmerding,

joined

when
the

Mellon

the

and in

Assistant

named

was

his
present
; began
his

career

position he
appoint¬
banking

the

Office,

until

ment.

Bank

National

First

1939

Cashier.

1947

became

Wilmerding Office of Mellon

Bank, and in 1953 he was ap¬
pointed Assistant Vice-President.^
The
The

capital

common

Lancaster

Bank,

stock

of
National

County

Pennsylvania,

Lancaster,

increased

was

from

$750,000

by
the sale of new
effective June 17. (Num¬
ber of shares oustanding, 100,000
shares, par value $10.).

$1,000,000

stock,

Director of The

Trust

of 74.

age

Mr.

Broad

Phila.,

Company,

the

Vice-President

Lorch,

Adolph
and

Lorch

Street

Pa.,

died
;

been

had

Executive

Vicee-President of the trust com¬

until "this April.

1954

from

pany

The office of the
the Currency

charter to
Bethesda-

Bctlicsda,

County,

gomery

Bank

Chase,

Clievy

Comptroller of

granted

National

the

Mont¬

Maryland.

The

capital of $600,000 and

The Presi¬
Stemple and "the

surplus of $400,000.
is

dent

Frank

Cashier

George L. Moore, Jr.

Arthur

June

away

Blymeyer,

26,

the'Board

Louis,

and

the

passed

the age

President

was

of 72.

Chairman

Bank

St.

Mo./

Fidelity

Citizens

Graves

charge

Bank

Trust

Vice-President

business

development.

Appointment of Russell A. Foust
to the new business development

department of the llialcah-Miami
Springs Bank, IUaleah, Fla.,
is
announced

Charles E.

Buker,

President.

The
A

National

First

t h

o n

County,

Bank

Anthony,

Texas,

was

Nfaso^

granted

the
Office
of
the
Comptroller of the Currency. The
bank

and
the

and

Pitts¬
named

by>

has

a
capital of $75,600,000
surplus of $83,437.24. The

President is Charles N. Haner and

13;278,890

YORK

the

been

nouncement

charter
Edward
of

Company,

has

manager

ding

with

reminders of the

551,110.900

secu-

resources-

and

Pa.,

Co., Louisville, Ky., elected Henry

little leather
bigger than a women's
overnight case. This nail-studded,
trunk, now 140 ydars old, is on
exhibit in the main banking room
/kept,

trunk,

June 30/59

Cash

Trust

and

burgh,

New

$2,807. The safe in

193,622.894 166,297,377

profits—

lived

he
r

basement

John

Total

Bank

spear¬
for
this

the

Assistant

Coatsworth,

Vice-President of Mellon National

who

men

Broclcholst

were

each.

$5.00

Earl

132,000

stock of the par

common

value

into.

divided

shares of

York.

non-profit institution were Rich¬
ard
Varick,
William
Few and

N-.w

the

under

title of/'The Hunter¬

Douglas

Treasure r;

182.738,414

THE

$660,000,

Knapp,

12.

lowing

first

of the
The. consol¬

June

don

President

announces

,116,640.271
Loans

"SjS

for Savings in

The Bank
of*New

Mills,

other intriguing

651.902,658

Deposits

■'

Alfred

the

COMPANY, NEW YORK

the

Harfield, Norman B. Woolworth,
Captain Nicholas Kulukundis, K.
Helstern, agent of the bank in
this city.
The
company
has
paid-up
up

werfe
close

idation ..was" effected.

includes F. Wil¬
Nicks, C. G. Webster, Henry

York/

named head of the

Total

directors

Manufac¬

the

work.

Vice-Pres¬

joined

•Announcement

loan

1950.

Pelley

turer^ Trust in April, 1948 and is
presently assigned to the Bank's
Empire State Office.
of

group.

Assistant Treasurer in

Cash

He
in 1945 doing

and

group this year.

Conn.

was

industries

an¬

Director of

Trust

appointment

Pres id en t

board

with

$100,000,

effective

charter and

Union

Jer^v,

Company

headed

bank's

the

was

nounced
by Horace C. Flanigan,
Chairman of the Bank's Board of
Directors.

Na¬

Frenchtown,

Ne,,r

stock

business

man¬

of The Bank of Nova Scotia

York
office
since
1948; G. L.
Wark,
assistant BNS agent here is VicePresident;
Frederick
S.
Gross,
BNS staff in New York, is Trust

Assistant

later.

year

heads

ant

visory Board of the Fifth Avenue
of
Manufacturers
Trust

Office

Company,

com¬

bank's petroleum group. He joined
Bankers Trust Company in 1952.

bank,
He

1946.

company

and

ident in

Chairman of the Board.

and

credit'

Elected

International

today by H. C. Flanigan,
*

the

officer of the

Manning

afnusement

Trust,

was

office of

Mr.

of
the

Scotia;

general

assistant

Flem¬

The

and

Bink

Bank has

1950
Vice-President

Nova

senior agent of its New

Vice-Presi-' Baker,

Lucy, in charge of the Wall

pany

President

Nicks,
of

board

1957.

Street branch

abroad.

of¬

1950, he was

Assistant

joined the company in
was

Appointment

bank in

Elected

1942.

ficer of the

all five boroughs of

Bronx.

pan v

porated.

William

Company,

announced

was

tersection of Williamsbridge Road

1927.

Trust

Undivided

1895

which

partnership

Koster,

of the Board.

strategically located at the in¬

are

1863-

JT.

the

Square

newly:V formed
twelve-member
policy Committee to advise on
operation of Morgan Guaranty's
European offices. From 1946 to
&;

32.329.850

branch

officership

Chairman

.34, ,82.093

Vice-Presidents

$540,000;

manager

the

Company President is C. G.

Webster,

•mffiestyrentkTuseai't>h;,''''W/''g:i*fSk^

Carter, Chairman of
Morgan & Cie. since 1955, has re¬
will

and

York,

international

Department

Bernard S.

and

ager

Bankers

iI,,.;-.,;.;.'...,

Division

tired from active bank

395,410,003

named

been

Frenehtown,

County

of Flemington,

New Jersey, with common

on,

National

representative's

Chicago.

Bank

850,085,700

Daniel M.
Lucy, Edgar A. Manning, Jr., and
William
E.
Pelley, all formerly
Assistant
Vice-Presidents,
have

The

disets.

and

William

426,309,600

se¬

Howard

Treas¬

Vice-President

885,250,922

the part of
customers in

bank's

chairman

Trust

iioidgs.

Undiv.

Company, New York, and his as¬
signment to the Latin-American

later

became

1958.

1,500,289,873

profits. !

Loans

Mr.

19.22,, first at Le
at Paris, where

since

1,800.676,374

1.435,248,174

The

340,714,571'
'399,571,419

Govt,

curity

formerly

Banking

France

banks

from
U.

agent)

York

July .1957.

County" National
Bank
of
Trust^ Flemington," with capital stock of

The

St.

Canada, 40 offices in the Carib¬
bean, and offices in London in
addition
to
agency
facilities in

due

and

June 29 opened ail

ultra-modern

Guaranty Trust Company in retary

lire

Cash

Wall

parent

office

..."

—

Hunterdon
Bank

stock

transfer agent, registrar

fiscal

Mar. 12/59

1,741,915,749

resources

Deposits

wholly

Canada, the Caribbean and over¬
seas.
The Bank of Nova Scotia
has approximately 500 offices in

YORK

NEW

.10/59

,t.

Total

Vice-Presi¬

Morgan & Cie. in
1948.
Germain has served with

St.

Corn Exchange Bank,

New York,

had

June

Scotia Trust

of Nova

(such

man,

Morgan & Cie. since 1955. He has
been active in Paris banking since

Barrett

BANK.

HANOVER

Direc-?

subsidiary of The Bank of

the

Sidney

and

■*

divi¬

loan

was

Chemical's

with

Schwab,

Sotia, Canada, began oper¬

branch

Secretary in

common

and

appointed

THE

Swanf former Assistant Secretary,
is

•
.

tion of John P. Humes

New

Ivanetic;

Assistant

j^iglon.,~i

Banl*, New York,

Solomon.

is in charge of the bank's
electronic research staff, and Mr.

Mr. Allen had been President of

Mr.-

Harold

term

Paradise,

i'fi

an-'

Personnel Director;

former

Purdy,

will

Their

Paris.

pro¬

was

Mirjan

Jr.;

Mr.

Assistant

supervise operations of Morgan
Guaranty's offices in London and
Brussels

urer,

Barrett

Mr.

Allen and

Chemical's

with

centralized.

to be

are

location,

Guaranty's

Morgan
ties

Concorde

Place ,de

July

".<•.

■

five new members
advisOry committee:
Floyd W. Jefferson, Jr., Louis
C. Lustenberger, William E. Reid,

both former Assistant Secre¬
taries, are associated with the
bank's metropolitan d i v i s i o n.
Messrs. Ivanetic and Serven, also
former Assistant Secretaries, are

Paris,

has

gan^,

Place

■"

20,602,812

27,873,421

profits,,..
Hanover

Vice-Presi-'

York,

New

Galligan/

Gen¬

eral Manager,

842,568,179

to its

Raymoiul H. Paradise; Alan B.
Purdy//Michael Serven, and Har¬
old S. Swan, Jr.
Messrs. Frothingham and Galli¬

been

and

been

have

Assistant

bounced

Manager,

Vice-President

elected

389.285,950

868,306,530

se¬

.'■••'

The

Helm, Chairman. They are: Theo¬
dore Frothingham, III; William J.

Vice-

has

412,035,951

discts.

Undivid.

Chemical Cornrffxchange

dents by

gen¬

Delville

Elie

London,

hldgs.J

Trust Company

Company, which will not compete
with U. S. banks here, has' been
organized /to meet the growing
needs for U. S. fiduciary services

487,475,234

Govt,

was

Americas

the

officers
to

Bank,

Talbot

elected

been

has

and

Paris.

curity
loans

tional

Novia

„

470,613,970

The

2,930,434

ing!

ations

Officer

Trust

Secretary in 1942/
elector Trust Officer and

Assistant

3,241,723

owned

due

Assistant

Assistant
was

86,045,038

Company of New Tork,

YORK

1,804,902,940

banks.!

•Martin
moted

of PieiTe Meynial and

manager,

29.

Seven

/..'.• (
announced

Vice-President

Ave.

and

St.

June

ahel

1935,

merged

1,677,146,752 1.651,091,843

from

•,

Maurice St. Germain to the posi¬

eral

Cash

•

tor.'

Mar; 31,'59

in
and
^and

47.751,135
88,379,032

Fiduciary

Bank

Thursday, July 2. ,1956

45.853,445

51,377.722

...»

profits

♦

discounts

The

NEW

appointed Assistant Trust Officer

of New York, announced the elec¬

•

1,385,075,541

resources.

Deposits

promoted to Assistant Manager at
the bank's Chelsa branch, which
moved to a new location at 23rd

prior to merger of that company
with Guaranty Trust Company of
New York last April 24 to form
also

O'Callahan

Edward'

30,'59

June

Total

National

the

42,220,213

—,

secu-

holdings
&

206.930,698 206,274,934
181,081,322 181,978,825

,-c

from

—

Undivided

New

to
Assistant
joined Irving

COMPANY,

H.
Roberts,
III,
and
Webber, Jr., all members
Division.

George
"Richard

TRUST

•

to Assis¬
Cashier of Michael J. Horgan,

tant

IRVING

Loans

election

due

Govt.„

Office.

promotion

the

Mr.

1958.

Sipe
Sipe
1 ,

Auditor.

time the bank an¬

At the same

nounced

pean

Morgan Guaranty.

Division.

C. Alexander,

Stanley

rity

St.

the

announces

and

banks
U.

Office,

Company,

Trust

Irving

—

Cash

assistant

23rd

manager,

resources,

Deposits

man¬

St.

Busch

H-.

Grace

and

39th

manager,

branch

CAPITALIZATIONS

Alexander

branch

YORK

Mar.31 '59

<g
Total

Richard

NEW

Mr.

Horn

were

Jackson Heights Office,
E. McGowan as assistant

ager,

CONSOLIDATIONS

•

appointments

NEW

June 10/59

Other

Financial Chronicle

and

Cashier

This is
State

ness

Ralph

Hartman.

conversion of'Anthony

Bank,

took effect

Anthony, Texas, that

of the close of busi¬

June 13,

*
V

The

President.

Great Falls National Bank,

Yawger started his banking
career
with the Trust Company

Great

Dec.

$700,000 to $800,000 by a stock
dividend, effective June
15.

•

Mr.

1922,

capacities

serving
the

bank.

various
He

was

its

Falls,

common

Montana,

increased

cauital. stock

from

Volume

(Number
8 000

Number 5860

190

The Commercial and Financial Chronicle

ol'

shares,

outstanding,
value $100.,

par

■

(19')

mgm

JAA#

shadowing heavy losses to indus¬
tries, is very much present in

BXltlSll-AmeHCd!!

Britain.

Roland Pierotti has been named ".

of( International
Banking Activities of Bank of
America, San Francisco, Calif., it
dent

Clark

this

that

seems

unions

By PAUL EINZIG
■

announced June 24

Japan,

Dean Wilier Absorbs ;

shipbuilders

Laurence Marks Go.

to keep costs down and
capture orders for tankers. So it

manage

Coordinator

was

cost-of-living stability, threat of causing unemploy¬
profit, nor industrial decline seems to deter
British labor unions from vigorously pressing for higher wages.

Beise.

lish-speaking
disadvantage

ment, absence of

Dr.

conveys

international activities and their
integration with domestic opera¬

trade

States

...

world

the

Dean Witter & Co., members of

grave

consolidation
and

of U.

Aspect

Exchange

with

the

partners

Laurence

Co.

David W. Lovell, Carl C. Brown

S. Unionism

and

Britain has good cause to envy
the United States for the essen-

weaken resistance to wage drive in Britain as it removes imme¬
diate concern over sterling and,
two, both English-speaking

Stock

employees

Marks

proceeding also in the United States
Einzig these .conclusions: one, it tends to

York

and other leading security and
commodity exchanges, announce-a

industrial

Praise for Non-political

,..

„

the New

and

sphere.

That wage inflation is

dination and condust of the bank's

United

Britain is likely to place the Eng-

Neither

role, Pierotti, who
is assistant to the President, will
assume responsibility for the coor¬

the

attitude

by Presi¬

new

the

Edmund

Barrett, Jr.-, for-

merly partners in the Marks

or-

ganization, have been admitted to
tially non-apolitical character of partnership in Dean Witter & Co.
Pierotti
is. a
member
of
the
countries are likely to be disadvantaged in international com¬
their trade union movement.
In
Mr.. Brown will continue to 1
Advisory Council of the Board
Britain the trade unions are sim- head the Marks' Institutional Re- petition. Only the non-political character of American unionism
of Directors? oF Bank of America
ply the industrial branch of the search organization as a partner
is found to offer grounds for
and on the Board of Directors of
envy.
Labor Party and are essentially o£ Dean Witter & Co. at the Marks;
Bank of.America (International)
LONDON, Frig.—Britain's eco- industry they would maintain full politically-minded. In recent Pic^ises,^^ Wall Street, New
in New York and Banca d'Amerinomm prospects are
Jikely to be employment, at the higher wages, months they have intensified their
made a
ca
e
d'ltaJia in Milan, Italy.
decisively affected by the outcome Shipbuilding workers, too, must efforts to dictate the defense pol- Dean Witter branch,
of the printers'strike. At present be aware that even on the basis icy and foreign policy of the Labor
Tlie *lrm also announces the
Walter E. Bruns, Vice-President
it t)nlv offOPtc;
of the existing wage level, British Party. Instead of tlie elected repre- formation of Dean Witter Interin
H UUiy dlltUb
in nhartfo of Rank of America's
charge of Bank of
pro v,i n c ial
shipyards have been losing many sentatives of the people, the Com- national
a n d its consolidation
governmental
relations for the n e w
orders in fevor of tlieir foi^eifixi- hiunist-infiltrstod unions wsnt to
Lciuiencc IVX. Msrks Inter-spa pers
nnfinnol
tions

the

Bank.

Amnrisx.V-

past 12 years, retires, at the head
office July 1 after 30 years serv¬
ice

with

Mr.

the bank.

Bruns headed

division

the

bank's

partment from

1940

northern

trust

de¬

1947 as a1
Officer.

Vice-President and Trust
He

joined the bank

sistant

Trust Officer

As¬

'a n

1932

promoted

was

Vice-President

department at Fresno and
three years later to Trust Officer
at the head office.
He was astrust

signed to the San Jose Trust Disin

trict

1937

returned

and

the

head office in 1940.

Shareholders

does not deter them" from

ing even more orders to foreign
shipyards by raising the cost of
British shipbuilding. The only ef-

the

tional

Bank

approved
lor

each

Aiurclcs

Los

Na-

London

newspapers,

that

two

held

ieenn

and

oiAAftn

Se, nf ^mmnnSS«tnF
holders

willratiUed
for each

pur-

the

a n y

newspapers

matter

hniinr1

duce

Paul

Einzig

the gen-|

nrice

does

stability

rpie c°minun capital stock St
City
N^ona! Bank of BevHilte,

iiom

Calif.,

$1,638,00b

increased

was

$2,730,000 by
stock, effective
June 17. (Number of shares outstanding, 273,000 shares,* par value
$10.)
the

sale

new

•

„

The

Cana4i^ii---Bank _of

nounced

European

the

of
livrng index actually declined by

Even though a number of small oneW and it is now exactly

Com-

^na±.,.;;
appoint-

June 26

BLOOMFIELD MILLS, Mich,

Bennett

Manley,

the

Dean

Witter International

The

merger

important

this

eastern and international research
and

sales organization with Dean

Witter

Co.'s

West

Coast

re-

j'
w i 1 i

the present time Dean Witter has

M0o

n s

nn„_

ic+

men£

running from Honolulu
the west to Boston, Philadel¬
phia and New York in the east.

the

Bloomfield

J. R. Williston & Beane

Barbour Bldg-!

Paid workers in.the county What for a

greed

while we should witness

public would \dcrive a fair share
Rut..

nropress

0£iice

In New

under the dirPf.tj0n

offices

-n

.ripl.

?rade Union. ^cmanda, ^c big the Stet time In 20 years 12
firms employing some 90% of the monthsXof ^ability has at long
labor involved are holding firm, last been achieved. If only organits

Robert

Hillg

which the output of each man is

the

erly

Manley, Bennett Office

f0\ward. Last month the cost

♦pphnolnkeal

am aakm

Rencemark,

clients, of both firms.

the

living affect the vigor with
vhich wage demands are pressed

ls worsc> thsy are amonS the lcast moderate decline m prices as a
hard-worked, "wulfe to the pre- result of increasing productivity.
ua!1v.l"vvuin^' owing *Y. lllvf*v«uyM»*v,.
vailmg restrictive practices under It would mWn that the entire

hi?H al'Fr
aft^r

and

Mr. Lovell has been elected pres¬
ident
and
managing director of

Moons, Asst. Mgr. of

U1VU

ost of

nrn

profound effect

a crop

nnrl

national

Company, search 01 ganization and national
are
entitled to do certain work
members of the New York Stock investment banking activities
These disputes have caused quite Exchange, have announced that should result in the accrual of
a number of strikes lately.
their 1 o n g
many complementary advantages
to the
putes

Nor

tZ FY,»ekfj

menace of unemployof inter-union disto which union's members

ment is

;

the stock dividend
...

Printers arc among- the highest- ized labokcould restrain

rp
five held

will

without

|§ feet of the

Brit¬

divert¬

chase one new *hare
of $37.50

quite

firms, of printers'gave, way to the wherii it was 12 months ago. tor

Calif

stock dividend of one

over

1.1

rule the country,

industry

their

spread

eral industrial situation.
Citizens

But the threatening

unemployment

threatening to

the

competitors.

but

ain

Assistant

periodi¬
it is

cals,

possibly

Fresno.

Williston

Stock

celebrated

and

Mr.
Moons
Mr.
Moons
will also con-

York

ESf&SnSt
zocllin.
tinue

Quarters

the

resdentnart-

by
Rooert

Moons

serv-

its

moving

70th

new

Anniversary
headquarters

at Two

Broadway, New York City.
Alpheus" C. Beane, directing part•,

i^tfac4iirc:totlWaCcotmt--of faij-

& Beane, New
Exchange
firm,

LlSSilgnXJt&CfcJBaa.

i?61"' S

be ab]e to do without
undue exertion. The combined eftect o£ unduly hlgb wages and undujy i0,v output has been the
closing down of a number of newspaperf and periodicals. In the
b00]c trade the high prices resulting from high printing costs resuited in growing consumer re-

the trade unions have totally dil- T/tc'i
aceoums oi
anniversary present to our
ferent ideas on the subject/They
Mr
Moons is a oast President customers
and ourselves, as it
want to secure fdr themselves the'of the Securities Traders Associa- ^ PWide .better service for our
entire benefit froin tlie adoption tion and has been air iitvestmcnt c. en
,w0
con
of labor-saving machinery.
broker for 11' vears the lSt 8 of
toT. our emrfoyeM.' „,jil
T\/r««i^r
p
The firm was founded in July
V
yea is ine iasf o or

sjslancc.

demands

hc Xv0uld

Profits' Absenee Also Means
Some

y' Be nett & young by James R. Williston, a
1889
Boston broker. The present

Company

Nothing:

•

name

unions pressVtheir wage
on

the grou.nd\that profit

are.wlde;Bur
aJ«ence
Vmterest""lv of Profits, and even the\existence

||0(|

QfOSS BlOOu DflVfi

Beane

great

I- Wall Street

Mr.

office

° r«iresentative' 3 with employers and employees, and, of ncavy losses, does not prevent III If ail Oil CCl
with ompi'o7ere
and mnpio7MS,~and,- of heavy losses, does nob prevent
representative
last but
]ast but not least bv tbe

joined

e p

t e d

firm

the

1958,

The contest in the printing trade

j/.iwaited''with

was

when

Mr.
April

Beane said

the new main

doubles working space and

seientificallv desiened for

max-

least, by the general the unions in static or declining
The American Red Cross Blood
_5? Z.d ?
J.? f
1" "ul rL'T:,! ,V.»
industries' from ""DreVsinSrilicir Donor Program^'forThe New York '"W1 sPeed ?"d accuracy in exland
Ev?n lhoueh tl,e number, h,ldustriCS„ fr0m, P)*0SSI»^
land, Mr Cu-rie has been Vn as- PublicMr. Currie has been an as"
ol
q£ NVOr|
wurKel« uivoivou is only
"■involved is umy some claims with equal vigor.- T c na- stock Exchange is conducting an renting securities transactions. It
amiic
—»—
sistant general manager, at the
°
tionalized transDort and coal mindrive tnr donation, in Wall includes the latest electronic
VV 300 000 /fhe strike is widely re- tionalized transport and coal min- all-out drive for donations in Wall mviuaes
ti
Bank's
head
office
in
Toronto
outcome Ing industries closed the past\year street.
Red
Cross Bloodmobile equipment, a conveyor belt syssince 1955, and prior thereto he
55,
SfwUch is 11^1^0 affect the at- with very heavy losses. The fail- A-ill be at Federal Hall (formerly tem- and one ot the most complete
was. an assistant manager of the
utuX o£ emXyers and employ- way employees are of course in a the Sub-Treasury Building) on communications centers in the fiHamilton
and
roronto'
mam
ees in more important industries,
position to demand that freight Wednesday and
July "ancial^totnet he added
branches.

headquarters in Zurich, Switzer.

—-*™

Thufday,

particular the wage claim of
the engineering and sh^uildmg
unions, and their deradftI for the

rate am,
^ssenger fareyhould
D©;raife^- wut coar imner| Know

fected'b'T'the'

and furiher accumuktion of unsold coal supplies.
Yet both unions are pursuing their
wage claims relentlessly. An increase in transport charges and

Fund Dislributors
Formed in Wichita
WICHITA, Kans.
tributors

Inc.

—

has

Fund

been

printers'

Dis-

formed

with offices in the Central Build-

ing

engage

business.

Officers

securities

are
™

Jennings, President; Dave K
Davidson, Seeietaiy, and Albert
L.

Brokes,

Treasurer

Mr.

Jen-

formerly President of
Bonds Incorporated. Mr. Davidson
niugs

and

v^as

Mr.

Brokes

weie

officers

Milburn, Cochran & Co.
,.

01ns

ational

becunties

If the employers give

eventuallv
WJ3V

to which
will be settled

way

strike

the floodeates will be opened

fof Wa4 demlndl

ofbetweenlO

orirl
ij anri for rlaims of adontancl 10 /°'.ana lPr ciannsjoi auupu

claim.

tdetog

the.

hours
time

In prosperous indusof

reduction

working

simply means more overconsiderably higher wage

r-AcnitinfT

ennsiderable

...

New. Courts & Co. Branch

Xmand

coal prices would inevitably bring

major

Courts Opens New Branch
in the wages of,engineering woik-

KI^OXVILLE, Tenn.

the

third

the past

would mean the resumption Co. has opened a branch office m
inflation on the same rate as Bie Hamilton National Bank
it was proceeding before the dis- Building under the management

ers, it

inflationary measuies of 1957 were

Wm. B. Robinson Branch

Courts &.

of Hairy Human.

TEMPLE, Texas—Wm. B. Rob& company has opened a

inson

branch office in the First National
Bank Building under the direction
(1p

inflationary

per unit of output.

proreedfnl alsoMn6 the "united Mav & Co< Branch Opened

SOUTHERN PINES, N. C.- ***■
Earlier, we moved our
Courts & Co. has^opened a branch §F^ad^ay
office 011 Country Club Drive unAvenue office. All of these
der the direction ^of John A. are evidence of our confidence in
McPhaul.
the future of the securities business;

rates, resulting in a considerable
increase in the cost of production.

potnc

ronresents

improvement

efnwuuf

SdltoSS
wage

Ir falniUel 'Vr" Bea°ne

15th and 16th.

suopted.

Sissom.

J. E. Schramm Branch

short-sighted indifference gtates will tend to
weajken resist-.
COOS BAY, Ore.-—May & Co.
SPRINGFIELD, N. J.—John Ed°f the Tradp^Unions towards the ance to wage inflation in.Britain, has opened a branch office at 1330 ward Schramm & Co., Inc. has
pro,s^er y of their industries is jjgcause there is no immediate Anderson Avenue under the direc- opened a branch office at 90 Lyons
& Research iCorp., 120
Broadway, really^ amazing.
Pinters ynust cause £0lt worrying about the ef- tion of Thomas R. Hiflstrom.
Place under the management of
New York Citv.
Wilbert W. Laying.
' surelv be aware that if ,Their feet of wage increases on sterling.
The

Karl A. Kaschewski has become
associated with National Securities

.claimsare conceded itwouldmean
the end of

Burgess & Leith Opens
Branch in N. Y. City
Burgess

Leith,

members

the Boston Stock

number ol

periodicals

American
i

ivals

industries
of

are

British

not

indus-

Jwo With Proctor,

Cook
vv

•'

Onens

BOSTON, Mass.—John A. Hines
the

jail

iti

the

demand

for

books

Exchange, have would bankrupt a number of
a branch office at 40 Broad
weaker publishers and printing
Street, New York City, under the firms. But they just could not care
management of Gordon R. Peel, less. They hope that by limiting
resident partner)
the entry of new workers into the
Opened

Yet

SrSwhUc^"mSS1-colifm'nere and^Syer*M."upkinYarVnow" affiliated with Proctor, Cook & Co.,
j^L, in France the de Gaulle 10 Post Office Square, members of
'
the New Yotk and Boston Stock
Governments firm measures pie^^^Exchanges. Mr. Hines was forvented a railway strike, while the merly with du Pont, Homsey &
possibility of such strike, fore- Company,
.
rf>

forward

with

wage

SPRINGFIELD,

MaSS.-MerriIl»

Meadows is conducting a secunties-business from offices at 1490
Main Street under the firm name
of Meadows & Co. Mr./Meadows
was
formerly with J. Clayton
Flax & Co.

The Commercial and Financial Chronicle

(20)

Continued from page

however,

Loan

banks

have

surplus

that commercial
permitted their com¬
petitive efforts to be characterized
by unrestrained, unwise, or un¬
sound policies and practices. : To

Rugged Competition Facing

minor

Nation's Commercial Banks

and

main

the

of this

extent some

occurred

has

occurring, but in
been held

it has

within

although liberally tem¬
pered by, shall I say, an iindulled
willingness to assume risks.
reason;

critical

financial

the

any

institutions which compete against
commercial

I shall be fac-

banks.

1913 Congress enacted the Federal
Reserve Act. By 1921 the number
banks
reached
the
highest

commenting on the comafforded' by other types
of financial institutions, and hope

petition

funds 15%
retained earnings in
1957.
the payment of taxes, na¬

from

and

reserve

After
tional

9.15%

earned

banks

point

began to decline as

that

dends
the

earnings of national

banks increased their

capital struc¬

tures and reserves 5.2%.

result of failures,

There

cessfully, a commercial bank must
provide, above all, on experienced

exclusive
consolidations, an
preserve
in
any
liquidations. Com- field of credit. Their closest ap¬ in the United States—double#ne
petition flourished! Many towns proach to this status is in the number 10 years ago. The/nave
with economies scarcely ade'quate field of short-term credit to com¬ nearly 11 million member#—triple
to support one bank profitably mercial and industrial concerns. the number 10 years ago, and the
were
served
by 'two or more Constant and aggressive work is total of their withdrawable bal¬
banks.
Practices
and
policies necessary to maintain or extend ances or share accounts is esti¬
which proved to be unsound were their participation in all of the mated at $4.3 billion, six and a
half times more than 10 years ago.
adopted to enhance carningscor to recognized Tending-areas.
Com¬
attract business from .competitors, mercial banking must expect con¬ Aboift 15,000 or 80%, of the credit
Fifty-five hundred bank failures tinued and increased competition unions are located in manufactur¬

and

occurred

that

one

gitive
Mr.

tion

"The effort of two

acting

parties,

offering

compete

sue-

competent personnel. It must
provide competitive interest rates
for loans and, if possible, deposits,
a

third party

favorable

more
In order to

terms."

independently,

the custom of

secure

will prove to be sen-

allergic to the cold facts,
Webster defines
competi-

and voluntary

durin g the "roaring
twenties" from 1921 to the end of

from

1929.

facilities, that will
attract' and hold public support
against able and effective competitors. At the same time, it must

Bank Failures and Chartering

be operated soundly and profitably.Its maximum interest rates on
savings and time money are established by Federal or State laws

those

below

rates

its

oi"

competitors for savings funds, but
bigher than some of the comrhercial banks can afford to pay. The
commercial bank must pay subfjtantial

income

Federal

The character and

taxes,

composition of

fifty

and

Savings
Federal

banks

banking

and Loan Assns.
State-charcejred

and

petitors

the

for

funds

and for real estate

char-

were

savers

mortgage loans.

1929.

insured

past year the 13,124
commercial
banks'
in¬

Thus the economic forces, tending

creased

their savings deposits $2.2

billion.

Six

tcred

between

cure

and

severely

condition'

failure

1921

the

During

over banked

nation

through

dred

the

savings and loan associations

increased their share accounts $6.1

progressive yet' adequately condeposit banking standIt

Surds.

observe

must
laws

'restrictive

many

regulations.

and

banks

Member

Federal

the

closed

their doors. At the end

the total

1933,

number

banks

commercial bank deposits are the

the high point
of 30,800 in 1921 to less than
half, 14,440. Other even more im-

basic

portaht

Reserve

System,

with

instrument^,

84%

used

the

^application of monetary policy by
the

Board' of

Federal

(assets.

reserve

the

burden

crystal-clear

involved, but

from

this

sad

soundly exist under conditions
unwise
tition.

commercial

These

foanks must sacrifice earnings and
bear

it is

causes were

balances.
to

Their

$45.6 billion.

Ten years ago the

numbered

the number
million, a gain

1958

had increased to 23

amounted

holders

account

8,850,000.

loans

160%.

competitive efforts 'are
confined
simply to a local

not

expanding

unrestrained

and

compe-

far afield to attract funds by
One

advertisements

sees

During the early

follow-

years

ing the bank holiday, the demand
for credit began to increase. New

eastern

newspapers

mail.

the

mid-

and

western cities of associations dom¬
iciled

usually in western states
offering share account dividends
up
to 5%.
Unlike commercial

and contracting credit so that all,

types

Including their competitors, may
from a flattening out of
the hills and valleys of our eco-

veloped. Some bankers, in retrospect, were too conservative, but

banks

who

savings
deposit's, there are no
legal limitations on their dividend

benefit

fi.omic life.
banks

main-

must

lain

an
appropriate measure of
liquidity. This is essential to ascure their ability to meet deposit

withdrawals'

demand.

upon

Fail-

demands

blame

can

difficult

Commercial

credit

them

experiences

de-

after

the

de-

pression

and_ the bank holiday,
Bank supervisors, I am positive,

limited

maximum

2V->%

rates. As mutual

^/0

legal interest

rates

ed;

this

constitutes

score

Sea

Anchor

These

for

tlie

governmental support.
Banking - steadily strengthened
its
position? and ' expanded ex-

Economy

policy, legal, monetary,
or protective measures
a sea anchor in times of

restrictive
serve

Plosively in deposits and United
^hues bonds during World War
At the

end

the

war

They serve as an Pent UP demand of individuals
anchor during normal or growth *01' consumer goods and homes
periods to the competitive efforts an<*
about everything else
of commercial banks, particularly, UJlcler the sun
immediately bef.or the funds of savers, in relation caihe a force ot major significance
to mutual Savings banks and the anc* importance im banking and
several non-banking types of speen
economic life of' the
cialized financial institutions.
'
hation. The postwar period up to
economic stress.

When

Act

President

slightly

were

Lincoln

ap-

ihe
National
Currency
February 25, 1863, there

proved

than

1,500

fnrLs

banks

savings, and private
the United
States.
In

f.882 there

7,302 commercial
deposits of $2.8
billion. By 1904 the number of
Commercial banks had grown to a
total of 18,844 with total deposits
cf $10.4
erne

Th„

insatiable.

Loans

for

everv

4 344

neonlo'

Than

Since

total

cinf>A

Tnn

Doubled

specialised

institution

•

from

vestment

,.?

other

types

their

real

estate

financial
major

in¬

mortgage

banks.

Because

banking

lavJ

favored

earnings position,
they
can
and do
spend substantially
more on
advertising.

Regardless of the branch laws
governing 'State-chartered savings
and loan associations, Federallychartered institutions may be au¬
thorized by the Home Loan Bank
Board to establish branches in all
of

the

states.

decision

for

relatively

the

re¬

Court

District

of
Co¬

commercial

not

banks
were
local thrift and

financing institutions within
meaning of the Home Owners

Loan

lending

Act' and,

therefore, had

standing to question the right of
the

Federal

Board

Home

charter

Loan

Bank

new

that

and the need increased for

better coordinated banking stiucCure
and
greater flexibility in
currency

lion

powers,

became

further legisla-

advisable.

late

re¬

paid

participants range from
5%.
After paying divi-,

rates

dividend

The

funds

dends, Federal Credit Unions in¬
creased their surplus and reserve
funds 25% from retained earnings

1^57. Their share accounts
insured

not

and

would

that the spokesmen

insurance.

and loans; .and for
ege aad
of serving

the financial needs of
ment

the

economy

every seghas been

intensive and keen. I do not

be¬

them

sav¬

strong

position

In this

the

Federal

Savings

and

Banks

savings banks,

mutual

The 518

billion occurred in 1958.
billion were largely
real estate mortgage credits.
As
mutual institutions, they occupy
$2.3

Loans of '$23

the

in¬

Federal

favorable

same

savings and
loan associations. During 1958 the
insured mutual savings banks (re¬
sources
$30.2
billion)
allocated
position

tax

come

million

$125.6
divided

taxes.

Insured

un¬

reserves,

surplus while
Federal income!

profits
$511,000

payi ng

commerical banks

paid income taxes of $1.2 billion
during 1958 while paying diVR
dends and adding to reserves and
undivided

profits from net earn¬
ings after taxes of $2.1 billion.
>
Mutual
able

savings banks

easily

are

appear

membership. Tliey are
effective, aggressive, and
the fastest growing competitor for
now. an

the

funds

activities

than

Their

savers.

loan

substantially broader
savings and loan
They are a competi¬

are

those

associations.
tive force of

s a v

Christmas

savings

bank

automatic

growing

Insurance

consequence.

Companies

Finance

are

and

The

years.
more

the

ten

past

policy reserves

have

than doubled since 1946 and

amounted to
1958.

nearly $88 billion in
Thrity-seven billion dollars
was

in real estate

mortgage loans,

additional $4

billion

types of loans. •

of this

amount
in

other

Short-term

Governments

than

tions

the

Government.

8,000

loan

Personal

com¬

billion at the end of
1959. Thirteen billion

$17

February,
dollars

was

credit

consumer

remainder
largely
including
a
substantial amount of automobile
the

loans,

credit

It is estimated
and 40%
of
the funds used in connection with
floor-plan paper.

30%

between

that

rowed

billion of loans were borthe Finance and Per¬
companies from com¬

loan

sonal

Th£vcomPetitive

banks.

the

of these
commercial banks
is, to this partial extent, reduced
of

effect

companies
or

operations

nullified.

Many of the offices of Finance
Personal loan companies are

and

business

for

open

Saturdays,

several evenings during the week,
and almost all from 9 to 5 each
week

bankers have told me
that their strongest competition
today in the corporate field is the
high yield on short-term obliga¬
Many

excess

panies in the United States
operating
approximately
19,000
offices. They held loans of more

mercial

from

million

afford

Companies

There

million

increased

112

unable

Finance and Personal Loan

the $17

mort¬

sometimes

and

chiefly for intermediate and longterm loans to commerce, industry
and
agriculture. Policyholders
have

privilege,

loan

loans, mortgage insurance,
home improvement loans."
Once
again,
this
is
rugged
competition for commercial
banks
seeking
the
deposits
of
savers at 2%
2%%, or 3%, rates,
gage

commercial

Life

n g s
accounts,
vacation
clubs.

collateral loans,
life
insurance,

mail,

Save

and

travelers' checks, personal money
order
checks,
personal
loans,

For the most part they

their

pay

for the credit xyjgJL.tliQ^eLT:ates.,^..
riot
desire

Just

day.

month

last

the

fi(Universal C.I.T.
Corporation) announced plans to
make
repair and modernization
second

nation's

nance

company

loans

sales

largest

home

the

owners.

high yields are attractive to
the officials of large corporations

present time this lending field is

funds, to Central
Banks of foreign countries main¬
taining reserve accounts in the
United States, to
savi.ngf and loan,
associations for a portion of their
"liquidity reserve", funds, and to

commercial

The

having

some

their

excess

individuals who have drawn
balances

demand

down

minimum

figures short of incur¬
ring service charges.
Very re¬
cently abank having total de¬
posits of -several hundred million
dollars

made

full

scale

survey

to determine the amount of funds

would

otherwise

have

de¬

except for the competitive
impact of Government bond yields.

posit
It

discovered

that

amount

savers.
equal to 20% of its present total
field, they hold a majority of demand and time deposits had
trump cards. After paying -been short-circuited from its de¬

dividends,

largely located in the northeastern
S., had total resources of $37.4 ;
billion at the end of 1958, up from
$20 billion since 1948. An increase

served

about

such

posit totals into U. S. obligations

the

$2.1

biRien of
Mutual

outstanding.

and

banks.

associations

loans

the

banks

75%

important way by
which
hold

loans

savings

remainder.

sayings
hold

and

most

would

seem

probable: that other sales finance
companies will enter this field.
Needless
to
say,
the Finance
and Personal loan companies have
important, competitors for
commercial and per¬

been

consumer;

sonal credit for many years.
will

continue

even

so,

They

and very likely

broader and more ef¬

fective way.
%

Corporate

competitor for the funds of
of

operate in space provided by the
companies whose employees make

The

Sew

their

home

■

f's, s®.mc

type

with
in

commercial

lumbia

b lUrm

lir°3
Jhi dtU1'"g

h.f,?™
?

S43

relation

-savings
ti^ £{£'"STSreSTSr ^ oreatlr and loan association.
multiple
^the^ec^^^iheTuon strW.es- The competition for de-" ings and 16an advantages ofplace
associations
Vhe

State,

property, franchise, capital,
serves, surplus and income.

loans, normal administrative costs
are less than those of all purpose

held

. 1

earnings

of commercial banks.

Appeals

1950

1Q1-n

their

to those

®i t?® i?°anS-OI' the
creased

billion. This represented

bank

hance

cent

almost insatiable

were

banks with

4ht l2S„05S-of
,.f, c°mPetitive
1™™^ commercial
,

hanks

commercial,

•

since they are exempt from
Federal and local taxes on

without

depositors.

lunds of

taxes

pay

Life
insurance
similarly too conservative bad debts without payment of
companies are
during this period. The inclination Federal income taxes so long as competitive with commercial
surplus and reserves are less than banks
take even a reasonable risk
on
a
nation-wide
basis

depository,

unions

Credit

were

night

life insurance.

associations, tney

had been temporarily—I repeat¬ 12% of the aggregate share ac¬
counts.
They are not required to
insolvency — withdrawal temporarily — dulled.
Federal
demands must be met! Adequate agencies were created to make, maintain reserves as an instru¬
capital funds must be maintained ' participate in, guarantee, or in¬ ment of monetary policy. On the
to
permit
the
undertaking
of sure various types of..loans re- average, they maintain fully in¬
vested
positions in real estate
risks, inherent in the business of garded as having" risk character-*
lending and inventing, with the istics not acceptable to banks mortgage loans which greatly en¬
lire

'■

were

This is
'

higher rates for sav¬
They make real estate mortgage ings funds than commercial
and other secured loans, cash pay¬ banks. The services provided by
roll checks in some cases. In many .them cover a wide range in some
instances
the
participant credit states. I quote from an advertise¬
union
members
receive
life in¬ ment of a mutual savings bank irt
surance
equal to double the Connecticut:
amount
of
their
shareholdings.
"For
all your
family banking
Some credit unions provide credit needs—safe
deposit boxes,

add earnings to reserves for

may

instalment

credit, 17% of all personal loans,
and 6%
of all automobile loans.

Their

the

consu mer

the- his

oi'

System through

requirements>in the form of non-earning
cash

OoveiTrors

Reserve

maintaining legal

1958, they held nearly $48 billion

1930 and the end of 1933, sixtyfive hundred
additional
banks

had dropped from

of December,

At the end

billion.

hold

unions

Credit

nation's

in share accounts-or withdrawable

eervative

membership.

thousand, three hun¬

unneeded and weaker
its asset structure must be main- units weie largely offset by the
lained within the boundaries of issuance of new charters, Between

Employees of such
plants account for 90% of the total
plants.

ing

comr

savings and loan associations are
zealous and highly effective com¬

Thirty-three hundred

new

of commercial
how they compete.

and

Let

score.

various

the

petitors

It is important to note that during this same period,'1921 to 1929,
the new bank chartering policies
of State and Federal bank supervisory authorities were seemingly
as
competitive and unsound as
those of some of the banks they
supervised.

this

consider

now

types of
There will

institutions.

letup

other

the

financial

full range of banking services,

and convenient

all

obligations.

Mutual Savings

18,750 Federal
and State-chartered credit unions
now

are

billion

$53

of
S.

rugged competition!

indeed

4%,

averaged, about!

retained

Credit. Unions

Commercial banks do not enjoy

assets

cash

held in
■

No Exclusive Preserve

our\history-, 30,800, and

from then

and reserves in
After the payment of) divi¬

1957.

attractive rates. At the
1958, 32%
of corporate

the

by
end

capital structure

tual

Associations increased their

lieve,

Thursday, July 2, 1959

...

Pension

and

Profit-

Sharing Plans

Corporate
sharing

pension

plans

are

and

profit-

becoming

in.-

Volume

5860

Number

190

The Commercial and Financial Chronicle

creasingly competitive with commercial banks despite the fact that
commercial banks frequently act
as trustee for the plans.
Bankers
from various areas of the country

told

have

that

sizable

num-

petitive impact of their banks,
Commercial banks compete with
one another and with many other,
types
of
financial
institutions,
a

the

loans.

there- were

1958

end

depriving

thus

funds,

banks

theiri

the

LOS

48,000

This Week

on the ultimate successful collection of outstanding loans, as well
as on the interest yield.
If fjiey

FIDELITY &

pension

billion

combined

tptal

reflects

increase of $4.3

since

the

Federal
The

end

$37.6

billion

1957.

Savings Bonds

commercial bankers

I think

tive

service to our govtheir willingness to

and

considerations

that

in-

are

volved

They

the very important exception of attracting savings funds,
Here they are steadily and even

income

dif-

tax

eliminated,

wholly

Based

fairly'

recent

$22.7

billion

they hold
Joans

_and

emranfpp

commercial

$59.8'billion

direct
insure

additional

deposit

ihe Veterans

the $23 4 billion insured
anteed
by the Federal
the

direct loans

agencies

—$9.5

billion, Agriculture; $4.7
Housing; $3 billion, Ex¬
port-Import
Bank; $2.5
billion,
International Cooperation Admin¬
istration
are
not the
type of
credits desired by banks.
Other
than
in
a
very
negligible and
unimportant way, I do not consider government lending agencies in
general are competitive
—

with

commercial

such

the

hanks

position

fectively^if they

ef-

Banking:

ments

inter

various
I

have

competitive

reckoned

ele¬

combine

mentioned

force

potenL

that

tive

force

all—the

„

other

fierce

relationship

is,

in
and

judgment,

direct

most

■

accrue

not

limited

banks

the

single town

—

Per

the

route

Net

Di'v.

$32.88

$2.*77

$1.00

$1.34

$243

$0.87

34.52

2.84

1.18

1.35

2.67

35.50

2.46

1.29

0.94

37.89

1.97

1.37

1.03

39.20

2.50

1.54

1.67

46.35

3.00

1.62

50.27

3.02

49.92

2.79

CHICAGO, 111.

Harvey M.

Abraham &, Co., Inc.

city. A recent survey made in
city with a population exceeding 500,000 revealed that of the
50
largest banks in the nation
with total deposits of $81

forty-one

them

billion,
actively

nigh

Low

1.00

23%

19%

2.81

1.13

25%

21%

2.31

1.08

28%

23%

2.37

1.00

36%

25%

1.67

2.95

1.33

32%

1.73

1.53

3.22

1.46

40%

36%

1.95

1.73

3.01

1.60

39%

32%

49.94

2.68

2.04

1.37

3.35

1.78

39V2

32%

2.07

2.19

1.17

43.09

1.78

35%

stock

fer

dividend, in

dividend

11)5 i;

IDollj

and
*

for

2-for-l

split

and

,.,c

lc„,-

BOSTON,

Mass.

—

Uulletin Available

Laird, Bisseil & Meeds
Members New York Stock Exchange

liquidating value increased

Samuel

Specialists in Bank Stocks

NATIONAL

AND

GRINDLAYS

BANKLLVUTED

Xlma/gamating Na tional Batik of India Ltd,
atul Grind/ays Bank Ltd.

Head Office:

50C

quarterly dividend rate, which would be about 12%%

higher than the rate, preceding thg split.

currently about 53%-55.

; '

The shares are quoted-

BISHOPSGATE, LONDON, E.C3
•

■

London Branches:

54 PARLIAMENT

STREET, S.W.I

13 ST. JAMES'S

SQUARE, S.W.I

Trustee Depts.: 13

St. James's Sq.; Got).

Nairobi; Ins. Dept.: 54 Parliament! *
St.; Travel Dept.: 13 St. James's Sq.; In¬
come
Tax Depts.: 54 Parliament St. £m
13 St. James's Sq.
Rd.,

Texas —George

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

Bernet & Hickman, Inc.
R.

NEW YORK 5, N Y.
BArclay 7-3500

Bell Teletype NY 1-1248-49

ab^fu .94%; dividend

grades in the insurance field. The company is licensed

Stock Exchange

Members American

120 BROADWAY,

Telephone:

BOSTON,' Mass.

—

Thomas

Bankers to. the Government in: ADEN, KENTA,

Resident Manager of the' Malldy, Jr.. Francis J. Melville,
soliciting business in that city.,
Abilene office of Schneider, Ber- Jr., Albert E. Saunders and James
Robinson III has been added to
I shall
not
outline
the
net & Hickman, Inc., in the Woo- H. Taurasi, Jr. are now connected
tech7
hiques employed ny commercial the staff of Goldman, Sachs & Co., ten Hotel, became a Vice Presi- with Keller Biothers Secunttes
bankers to strengthen -the com- 75 .Federal Street.
dent of the firm effective July 2.
Co., Inc., Zero Court btreet.
were

Co.,

of New York

mariagement has indicated that the split stock will be put

ABILENE,

(Special to The Financial Chronicle)

Clarence E.

Irving Trust
Company

13%

Leitner V.-P. of Schneider,

Goldman, Sachs Adds
.

Chroniclk>_

staff of Eldredge, Tallman &

Simon has joined the'staff of C. H.

—

Holzkamp has been added to the

1%*

Tallman

(Special to Tub Financial

Irwin

Co., 332 Main .Street.' He was

•

—

with Haydep, Stone

With Eldredge,

throughout the United States, and is represented by about 15,000

BOSTON, Mass.

now

formerly with Ii. L. Robbins & Co.

59.00

In this decade

The

Stone

WORCESTER, Mass.
Silver is

agents.

With C. H. Abraham
*

stock

the very top

to all of us through

*«■

Joins Hayden,

(Special to The Financial Chronicle)

approximately 115%. Earnings were up relatively little, but. it is
important to bear in mind that this company came through the '
decade (and, indeed considerably longer) without a deficit! in the
net earnings column. Few leading companies can boast as long a
favorable record as Fidelity St Deposit.' The stock ranks among

•

Taxes

*Adjitfifed

Price Range

Income

I'!'.•£%

recog-

nition for these contributions anoU

Share *

llnil.

two

Record

Value

—

years,

achievements."

stocks in¬

Federal

1957

banking competition.

Statistical
Invest.

—

fiscal

past

231 South La "Salle Street.

Ailj.

—

many

chief

its

the

coritinuoaslv-recfiives wide

placed in equities. The wisdom

Liq.

J 958—

breakdown ol the advantages

which

was

giving unselfishly of his time dur¬
ing a period of significant growth
for
the
University.
His highly
valued advice and counsel have
contributed immeasurably to the
educational, ciyic,
and
cultural
growth of the Southland and he

is shown when we realize that the market value of

Ten-Year

1956—

for

This has also had

holdings declined 3.5%, While that for common

1955—

wellfserved on these im"

points.

and-

coiinselor

5.7

1953—

....

Inequitable regulation by govern¬

move

$1,340,700

recognized

Treasurer

enlarging

some

been

organizations. He has served this
University as a Trustee, as its

4.7

stock holdings.

accompanying Mr.

his outstanding abilities

bankers,
have

1.3

common

citation

The

King's degree read, in part: "One
of
the
nation's
most
respected

24.6

—

is chairman
Board
of

Trustees.

22.9%

J 950

provided
its
management
and
policies are in the hands of bank¬
ers
operating within sound and
equitable statutory guide lines.

ment

prary degree. Mr. Call
of
the
University's

1949

} sincerely believe competition
WB1 be adequate in banking

shortest

King

creased 32.6%.

the

evfryjtype-^f-bankmg-business^is

bond

however, that the public interest

unending (struggle that goes^
between commercial
banks' for
This

of this

story.

1954——__

the
,

large degree,a since 1948, retained underwriting profits have

holdings. And

_.fQ commercial1 Iwnks and
blanches. That is an-

j^e.

presented Mr.
candidate for the hon-

Life In¬

Pacific Mutual

the former category was increased approximately $1%
million, almost entirely at the expense .of the U. S. Government

hese factors to competition among

with

daily by commercial banks. However, I have not
mentioned the strongest competi-

commented

not

and

banks

Company,

stocks,

sLv-

numerical, locational and service¬
able
adequacy
of
commercial

Competition
The

have

inclined.

are so

banks have need for

major banking problem!
I

surance

interest rates and increased holdings of tax exempts and common
com

ings funds in conducting their
lending operations in
the con¬
sumer,
mortgage, and term loan
fields.
May the'early future see
an
easing
or
correction of this

ai-eat

believed to

compete

Inter-Commercial

'/^e/osits Almos^all

Credit

some

are

th©v

Production

Corporation, banks

mScfal

billion,

rrf comTtit^e

comppsi-

Housing

board

Norman

Dr.

■

dollar

effect

an¬

co m-

cement

President, in recognition of Mr.
King's leadership in the fields of
banking and finance.
Asa V.
Call, chairman of the

the company's underwriting capacity.
Among the larger common stock holdings are 7,200 shores Alumi¬
num Co.; 4,400 National Lead; 7,070 Gulf Oil; 20,295 Standard Oil
of New Jersey; 7,000 Shell Oil Co.; 4,080 Firestone Tire; 4,278
Goodyear; 6,000 Continental Can; 25,728 Fidelity Baltimore Na¬
tional Bank; 1,050 Aetna Casualty. Investment income, after Fed-

j
fer- Moreover, many medium- and

guar¬

of these

loan

and

King

Government Securities

been, used to increase
the

exercises by

Frank L.

Insurance Stocks

m e n

1958

......jQ&to. Stocks--.———-.^4.0,8.....—.

loans:

~d.^
Administration and

amount, approximately 65% of the common stock
holdings are industrials, and the general quality is excellent. Ap¬
proximately 47%' of the bond holdings matures within ten years.

important weakness in the
commercial banking system, par-

Banks and other lenders hold the

sity's 76 th

Preferred Stocks

degree

conferred

at the Univer¬

Real Estate and Mortgages-.,-—_
Bonds, other than Government—

The

was

estimates
or

California.

53%

Cash and

Southern

Ki'nnlrinrf

Turning to the investment part of the company's business,
get the following breakdown of assets, at the end of 1958:

small banks that I ave always
been
been nearly 50% "savings" in
near'y 50 "
savln6s
their

make, guarantee, and insure loans.

versity

•

48%

Laws

from the Uni-

banks

50%

Property Floater

honorary
of

tor

By-and-large, these lines have been extremely profitable over
the years for Fidelity & Deposit, and have enabled the company to
turn in an exceptional record of underwriting results. The average
combined loss arid expense ratio over the decade ended with 1958
was around 84%,
indicating an underwriting profit margin for the
period of about 16% on average, an exceptional showing in the
industry. Thus it has paid F. & D. well to avoid the much~*inore
hazardous lines that have been so costly to the general run of
casualty and fire companies in the recent past.

with

Federal

received

Topping,.

29
...

CallBank,

degree of Doc¬

past:

47%'

Other

Agencies and their instrumental!-ties
which
have • authority
to

years

toKnlntlrm

1957

1952

are

ticuiarly for the many thousands-

about

are

fnllrnirinff

1956

Personal

difficult job very well.
able to compete el'feclively in the major banking fields
doing

Federal

There

flip

premium income for several

Burglary and Theft:

are

thpir

nnnnntir.ne

Surety

must *cbKtmue td' ocCUpy*
inferior position in seeking to
disregard the conflicting competi- attract the funds of savers. This
outstanding

linrlovwntincf

Fund

drastic

eminent

down

ferential in l'avor of the'mutual
savings
bonds.
At the
end
of associations which enables them
December 1958 the cash value of to
outcompete
the
commercial
E
and
H savings
bonds in the banks in the all important rate of
hands of investors was $42.6 bil- return paid to the saver. Unless
lion. Our deposit banks and the and
until this competitive imnon-bank
types
of
specialized balance has been adjusted and the
financial institutions deserve the tax
differential substantially or
fnr

during
connec¬

....-

Fidelity.—

Savings

the commercial banks at rates less

iti?pji

fornia

the

y
Fidelity & Deposit has adhered quite closely to the major,
categories of writings that, over the years, have served it so well
—

rapidly losing ground to savings
and loan associations, credit un¬
ions, and mutual savings banks,
This is true largely because of a

offered

;

President

and

900,000, the holder of the old stock receiving 2% shares of-new

Competition

institutions,
have
for
many
years
rendered
outstanding service to the United
States
Treasury
Department
through fostering the sale of savings bonds, and handling their
issuance
and
redemption,
frequently at a loss to their respective
organizations.
They
have
done this despite the fact they too
we're competing for savings funds,
those

But

Distribution of Premium Income

Unequal

financial

than

■.

Fidelity Loan & Trust Company, this unit

1955

deposit banks of the nation,
and
mutual savings,
non-bank types of spe¬

attractive

for each share of old.

petitor.

the

cialized

of benefit to neither the bor-

are

commercial
and

poration

MARYLAND

$50 a
.share, on the 10,000 shares. This was increased to $3,000,000 by
five changes and the merger of American
Bonding Company. Retive fields, or permit the cornpetitive urge to lead into fields- cently completed financing consisted of a 2-for-1 split, followed
by a stock dividend of 2%%, and brought the outstanding shares
of unsound credit liberality that

rower nor the lender. Commercial*
banks must be alert to every need
for Ranking service and provide it
in "a manner that will mgrit the
support of public opinion—or lose
the business and profit to a com¬

reserves in insured
plans, $15.5 billion. The

tion with charter amendments permitting the writing of fidelity
and surety bonds.
The banking and trust business was discon¬
tinued ill 1905. Jhe initial capital was $500,000, par value

billion,

the

Insurance Stocks

adopted in

simple thing to do. It is easy to
veer too far into ultra-conserva-

—-

COMPANY

had power to transact a banking and trust business.
its first year of operations the present titlb was

by the Securities and Exchange
Commission in
a
very
recent
report.
The Commission
reported that at the end of 1958
the resources of corporate retirement trust funds
totalled
$22.1

noted

directors of the Firstamerica Cor¬

has

Organized in 1890

pension and are to be adequately competitive,
profit
sharing - plans, many
of .they- must pursue a policy of
which were funded. The impact progressive and warranted credit
of the growth in retirement fund liberality and the assumption of
accounts
on
the
economy
was reasonable
risks. This :is not a

•

DEPOSIT

ANGELES, Calif.—Frank
King, chairman of the board of

approved

Treasury

By So. Calif; University

By ARTHUR B. WALLACE

sharing

Frank L King Honored

Bank and Insurance Stocks

and far. They accept risks
nature unlike those faced by

near

corporations now. borrow, many other businesses, regulated
from their own pension or profit or not. Their* net profit depends
ber

(21)

Leitner,

oganda, Zanzibar a somalrand

proncro«a0o

Branches in:
india,1 pakistan,

ceyijon, burma, kenya,
uganda,
protectoratb,
rhodesia.

tanganyika, zanzibar,
aden, somaliland

nobthfrn and southern

The Commercial and Financial Chronicle

(22)

Thursday^ July

Funds Now Have

The Mutual Funds

"Investment

companies,

com¬

panies,

serving the longrange* investing needs of investors
holding more than 4!4 million
shareholder accounts," George A.
Mooney, executive director of the
National Association of

Investment;

Mutual funds represent

total
i m at ely 3,990,000 ac-

ment

"app ro x
-counts, and closed-end investment
companies 275,000, for an esti¬
mated

total

4,265,000,

the

same

announced
155

mutual

fund

Mr.

association

ofUhe

members
June

The

of the

30,

151 member mutual fund
compa¬
nies and $10,609,839,000 on June

30,1958, v/hen the Association had
fund

end of 1958

June

The

30, Mr.

figure

the

June

Purchases

by investors of

now stands, any company may, either by charter
by recital of fundamental policies under the law,
restrict to any extent that it sees fit the investment discretion of

mu¬

tual fund shares for the first six
of 1959 totaled approxi¬

$1,100,000,000,

compared

six

months

ending June

some instances this course
hps
followed, usually to meet the requirements of State laws,
occasionally for voluntary limitation of objectives, but in the areas
covered by this proposal the general
pattern has been not to re^

strict the exercise of management discretion.

weight that this

30.

period

came

$430,000,000,

last six months of 1958 and

The

$203,-'

flexible

total number of accumula¬

substantially

plans

were

canceled.

shares
than

fund

in which

million, Mr. Mooney said.

were

year, 129,791 in the last
hah and 113,286 in the first
half''

be,

provision

action "for the protection of

are

to be

inter¬

many

With Provident Bank

Eaton, that the Commission would

You must

adopt

restrictive policy.

form of words to describe what

course

say:

of action you will take

in the face of circumstances which
you cannot now foresee."

The Commission may

CINCINNATI, Ohio—Frederick
the Provident

insist that "the extent"

tends to invest requires maximum

Bank, 7th & Vine Streets.

class

and

to which

minimum limits for each

of securities.

This, in Mr. Eaton's view, would force on a
company the adoption of a policy "which is not and never has been
its policy and which is not understood
by its shareholders to be
its

policy."

;
.

bookletprospectus
On the

Or assume that

the

...

a recital has been devised which the SEC will

accept. Says he: "Consider the problems of management in
shaping
its day-to-day and
year-to-year investment activities so as not to
deviate

appear to deviate from the

duty of carrying

money, he reasons:

press

GROWTH FUND

0/ CROUP SECURITIES,

INC.

not

the SEC may at
any time in the future

ex¬

lock,
he

President,

said,

693,128,
assets

May

Weinstock

was

City, members

Exchange,

the New York

July 2.

increase takes into account the 45
cents

share from

capital gains in November,
The five largest

com¬

26%.

was
mon

stock

Fund

are

holdings

Capital

Growth

Fund

Group Securities, Inc. reports that
June

$10,000

had

assets

with

Aircraft
third
of

and

spot

airline

and

with

each

electronics

chemical

second

drug

$1,474.

issues

were

$1,038 of each $10,000

assets.

far

Not

petroleum

behind

with $975

metals with

and

$1,693

in railroads

was

mining
The st^ke

and

$94$.

$^€3 and indus¬

trial
machinery'l>807.
Building
industry shares had $670, paper

container

and

$428

each

stock

$10,000

assets

railroad

a-mere-<$265
its common

of
the

highly

cycle
(American

equippers

Brake Shoe and

WeStinghouse Air
getting away from
prime dependence on their tradi¬
tional business).
Automotive got
Brake

—

both

$191

mere

Trailer

(Chrysler, Fruehauf

and

the

American

iports

olShe

bottom

Rubber)
the

and

ladder.

Business Shares, Inc.

for

the

first

six

months

fiscal year

1 there was

that started Dec.
increase of 14 cents

shake, or 3%, in the value ol'
its capital stock. This is after ad¬
a

gain

for

December.

$4.31

capital
in

$26,900,753,

equal

pany, a conservative balanced in¬
vestment fund, keeps at least 25%
of its assets in high-grade bonds

stocks

selected

INC.

Chicago

—

oustanding
Puritan

a year

earlier.

declared a
year-end dividend of nine cents,
payable July 25 to stock of record
July 2.
Fund,

International

Inc.,

its

Inc.

Fund,

Resources

semi-annual

report,
an nounced TarM"^hare"'tnxrreirsed-'
in net asset value to $4.48 on

May
$4.09 at the start of the

from

current fiscal year, a rise of 9 lk %.
Net investment income also
in¬
creased

and

for

the

sixmmrths

ended May 31 was $245,4T87equal
to 5.58 cents on the average num¬
ber

outstanding.

This

compares with net investment in¬

of $218,939, or 4.77

come

share,

for

year ago.

cents

the similar period a
Total assets at May 31,

1959, were $'18,516,147, compared
with $18,828,728 on Nov. 30,-1959.
Shares outstanding on those dates

4,137,048

were

and

4,602,398,

re¬

spectively.

Chicago Inv. Women
Elect Officers
-

dent of The Investment Women of

Shares, Inc. reports
the following increase in holdings:
500 shares of Ford Motor Co., 500
shares of General Dynamics Corp.,
500 shares of Philip Morris and
20 shares of American Telephone
& Telegraph. It also disclosed sale

Chicago
1959-60.

for
Miss

Doris Kempes,

Harris
&

Trust

Savings

Bank,

was

elected

re¬

Vice-

retary.

under

the

management

possible

upon

request

Loud, Abbett & Co.
—

May 31. Net assets reached a new
high on that date. Assets on May
31
were
placed at $273,357,459,
equal to $14.14 a share on 19,336,501 shares outstanding. This
companies with $158,249,112, or
$10.01 a shaie on 15,814,330 shares

Hotel

Prospectus

New York

shares gained more

in the 12 months ended

Supervised

six

the

record

38th

July 8.

Aug. 3 to
It repre¬

consecutive

Atlanta

—

Los Angeles

funds than did
state,

any

Companies.

with

invested

per

$26.62

the

were

inves¬

Minnesota

by,

Form Glenn Arthur Co.
Glenn

gaging
from
New

Montana

($8.12).

Mrs.

Mooney,

Corresponding Secretary; Mrs.
Marjorie Rosen, Mullaney, Wells
Company, Treasurer; and Miss
Pearl Seamonson, Asst. Treasurer.

individual

residents, who invested $9.69
$1,000 of income, came next,

followed

offi¬

South Da¬

per

year.

Lois

according

They

also the highest -per
capita

tors,

Carl

elected

were:

•

to the National Association of In¬

vestment

B. Guenther

and

Doris,

Other
cers

quar¬
Lucille

mutual

Miss

payable

cents,

stock

kota
"

than 41 %

Co., Inc., Re¬
cording
Sec¬

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

63 Wall Street, New York
5, N. Y.CFG'

>-/-<

Stock Fund reports net asset value
of each of its

American Mutual Fund, Inc. of
Los Angeles declared a dividend

Investment

.Stole.

year.

Buck^& Co. has opened a branch
nr^he Essex and Syssex

office

Common Stock Investment Fund

are

fiscal

CHICAGO, 111. —Mrs. Lucille
Guenther, The Northern Trust
Company, was re-elected Presi¬

—

last

fund's

for

stability.

residents

the

Massachusetts Investors Growth

•'

preferred

re¬

McGlone

Mom#.

•

The com¬

greater portion of their personal
income
$10.51 per $1,000 — in

24.1%; and 14.8%,

spectively, over shares outstand¬
ing at mid-year 1958 and the close

share compared with Nov.

30, 1958 value of $4.25.

and

mid-year were at the.
of 18,432,842, an in¬

At the end of May net

were

cents

each share distributed

assets

crease

textiles

and

S389.Tiie-l'trnd had

November

last

record level

in petroleum, che.micals,

steel, drug and electronic-electric
equipment
groups,' Mr. Bullock
said,
Total net assets at May 31
were
equal
to
$14.19
a
share
against $13.07 on Nov. 30,. while
shares outstanding rose to.3,704,202 from 3,449,126. V The

fiscal

1959

Bullock

distributed

from realized capital gains. Shares
of
the fund
outstanding at the

1958,

Nagel,

tisement.

ago

year

gain in net asset value of Bullock
shares, adjusted for a dis¬

As in 1957, residents of the Dis¬
trict of Columbia in 1958 invested

above'

higher than the $12.75
Oct. 31, 1958.
This

demption of 660 shares of Maytag

Joseph M. La Motta.

58.4%

recorded

tribution of 60 cents

terly dividend.

DISTRIBUTORS GROUP,

$16.12,

and 37.8%

Fund

sents

Address.

Net asset value per
on April 30 was

Co. preferred.

Richard J. Buck Branch
ad¬

partnership in Porges &
Co,, iS^Broad. Street, New York

shares amounting to

new

share of the fund

1958. For the
May 31, 1959,

31,

ended

gain

President

Mail this adver¬

City.

sales of

total net

over

1958). :This

31,

$42.8 million.

46lA%,

months

stated
in
the
This figure,
gain of $16,-

report.

reflects

(Oct.

year

reflected pot only increased port¬
but also record gross

of 642 shares of Pliilco Corp. The
fund realized
$36,300 from re¬

in market value.

40.3% above the level attained at
close of the fund's last fiscal

SPRING LAKE, N. J.—Richard

Porges & Co. Partner

Stock

For those with

pleasant prospect—especially the

mitted to

vesting for possible
long-term increase

its disagreement with
your interpretation." "

Harold

A mutual fund in¬

policy

the business of investing other
people's

"It is

continuing threat that

CAPITAL

outstanding. Total net assets dur¬
ing the period reached $297.2 mil¬
lion, an increase of 91.2%, from
resources
of a year earlier and

Fund, Ltd., the growth

semi-annual

justment
it in¬

per

folio values

was

"That wonT

six months to
assets,
share and "in the

fecordsjn

new

the

numerous

You must devise

the

for

reports total net assets reached a
record peak at May 31. Total net
assets were $£2,555,069, Hugh Bul¬

our

says

do.

some

ree

Bullock

was

number of shareholders and shaves

each

fund in the Calvin Bullock group,

If the law is amended, as
proposed by the SEC, it may well

started in the first 6 months

this

Dodson is with

investors have bought shares.

of 1958.

our
shareholders."
This is substantially the
position
highly-regarded funds and, indeed, the basis on which

765,159.
Approximately 175,000 new plans
were

there

company says: "It has always been our policy and it
policy that the management shall have complete dis¬
cretion to invest in any or all
types of securities ond to shift from
one type to another as we think we see
opportunities to benefit
still

The number in force at the end of
1958 was 878,147
and, as of June

30, last year, there

Moreover,

hypothetical instance

a
regular monthly or
basis—now total more

quarterly

mutual

formula.

What troubles the NAIC is how these words
preted and by whom. Mr. Eaton outlined a

plans—by which

acquire

mathematical

of "defensive securities."

were

investors

areas

-4m^torsy-which-The^Ee^archarae'tCil2GcrWpWmTOnrpiirch'ase'

started than

These

specific

permitting reservation of freedom of

plans in force continued

new

has not met with any investor resistance."

generally to invest in bonds, preferred stocks and common issues.
The word "generally," he
notes, may exclude the idea of an in-.

161,000 for the first half.

increase

It is perhaps of some-

in which the pro¬
posed amendment would restrict management discretion.
First, a
company would be called on to recite the extent to which it intends

compared with $308,102,000 for the

tion

course

Here Mr. Eaton turned to the

Redemptions for the six-month
1959

Said Mr. Eaton: "In

management.

1958.

" '

value

asset

been

with $922,392,000 lor the previous
six months and
$697,376,000 for
the

As the law

months

mately

Investment

proposed would not have altered the situation.

now

provisions

$8.05

and

Report

Television-Electronics Fund, Inc.

8,048,653 shares on May 31, 1958.

firms

Eaton has told

the curb

$1,632,860,000. As
30, 1958, it was $1,373,was

866,000.

Association

investment

Senators that the history of the
industry,
going back over nearly two decades, has-fully justified the original
decision of Congress to permit free exercise of
managerial invest¬
ment judgment. Nor did Mr.
Eaton, a veteran in the field, blink
the fact that there have been instances in which fund
managers
have made unwise investment decisions. But he
emphasized that

panies of the association were es¬
timated to have total net assets of
as

180

& Howard Balanced Fund and Eaton & Howard Stock
Fund, openend companies,, has stated the ease for the NAIC.
Mr.

members.

The 24 closed-end member com¬

$1,740,000,000
Mooney said.

was

Companies, which
registered with the SEC and
over 95% of the publicly-held companies, is
strongly opposed to this change. Charles F. Eaton Jr.,
President
of Boston's Eaton &
Howard, Ine., investment manager for Eaton
of

Nov.

•• • •

The national average

reports

April

whose assets comprise

mutual

■

National

consists

were

'estimated at $14,800,000,000, com¬
pared with $13,242,388,000 at the
close of 1958 when there were

145

adopted 19 years ago it barred interference
by the .Securities and Exchange Commission with the free exercise
of investment
judgment by the managers of the funds. Now a
Senate bill (S. 1181) would make-important changes in the law.
One of These amendments
would, in effect, subject investment
policy of fund managers to the surveillance and control of the SEC.

time, Mr. Mooney

total net assets

companies.

When the law

-Mooney said.
At

The NAIC and the SEC

Considering the multi-billion-dollar stake of the owners and
operators of mutual funds, too little publicity has been given to
the Senate bill that would amend the Investment
Company Act
of 1940,
especially its impact on hundreds of management invest¬

Companies, announced June 30.
,

By ROBERT R. RICH

now are

($7.96).
$4.63.

ports net assets at May 31 totaled
$97,876,034 compared with $89,z51,292 on Nov. 30, 1958 and $64,820,863 on May 31, 1958. Net as¬
sets per share meanwhile rose to
$9.47 on each of the 10,336.221
shares against $8.90 and 10,030,595

both

mutual funds and closed-end

Diversified Investment Fund re¬

Mutual Funds

4,200,000 Accounts

2, 1959

•

and

,($8.93),

Missouri

Arthur

Co.,

Inc.

securities

en¬

business

offices at 450 Seventh Ave.,
York

Brothers).

City
Officers

(c/o
are

Mackler
Arthur

Shulman, President and Treas¬
urer; Claire Shulman, Vice-Presi¬

dent;
and
Secretary.

Marvin

Pollock,

•

Volume

Number 5860

190

The Commercial and

Vermonters Begin Six-Week Course

Financial Chronicle

(23)

Wall St

..v

Public

V. G. Paradise With

•"

•

Utility Securities

Sutro & Co.
BEVERLY

By OWEN ELY

Victor

HILLS, Calif--*.
Paradise, former Presi¬

dent of Paradise

Texas Gas Transmission
Texas

•

Gas

Transmission, with

million, operates

Corporation

annual

$100

over

The

announced

most

industrial plants in the area
companies. Most of the direct sales

Gulf Coast

which is

area

served

are

company

ciated

45%

interest

esti¬

Investors'
office

Holschuh, Manager

Service
the

E?.

Ilutton

Department, explains the

firm's

650

Madison

Avenue

role

was

part

the

Ninth

Annual

Course

the

Nature

The six-week course is being con¬
ducted in the Hepburn Room of the New York Chamber of Com¬

merce,! 65 Liberty

Street, under the direction of Professor Philipp
Lohman, Chairman of the University's Department of Com¬

merce and

have

major pipeline suppliers
gathering systems in South

extensive

requirements, the other third

being purchased from other pipeline

companies,

Louisiana.

$195 Million Grant County, Washington Public
Utility Dist. Revenue Bonds Offered to Investors
related .facilities.

the public

offering of $195,000,000
Wanapum Hydro - Electric Rev¬

Bond of Public Utility Dis¬
trict No. 2 of Grant County, Wash-,

company's

186

feet.

Total

The

and

Marshall.
The
offering comprises $181,350,000 of 4%% term bonds due
July 1, 2009 and $13,650,000 of 4%*,
4ft % and 4.40% serial bonds ma¬

maturing

will

after

July

redeemable

Last

been,
com¬

after Jan. 1, 1970 at 104%

to July
1976, declining thereafter to
100%, plus accrued interest, and

vestor

the

deemable

bonds
on

will

also

and after

July 1,1966

from the sinking fund and certain

Electric

excess moneys in the Bond Fund
at 100% and accrued interest.
All of the term bonds will be
retired by maturity in 2009 under

creased

moneys

.County,
Water

in the Bond

taxes.

the

bonds

Federal

from

the

sale

of the Wanapum Development on
the
Columbia
River
in
Grant

County, Wash. The site of the De¬
velopment is in central Washing¬
ton about 18 miles
upstream from
the District's Priest Rapids De¬

velopment

and 415 miles above
the mouth of the river. The site
also is about 150 air miles north¬
east
of
Portland, Ore., 130 air

miles southeast of Seattle, Wash.,
and 140 air miles southwest
of

Spokane.

Work

the

ment is

Develop¬
expected to be started by

August

1959.

The
a

director

about

113

million

company

pipelines,

applied for permission to build

compressor

va¬

a partner in
Exchange mem¬

New

association

York

gas systems which have
policy of expansion the company's revenues have in¬
than ten-fold in the past decade. The largest annual

was

Co.

Los

forming his

with

and

8,540

ice with Newmont.

Angeles

own

Association

firm in 1957.

for the year be¬
Other officers for

ginning July 1.

the coming year are Henry

Barton*
President, Western National Bank
of
Cicero, Vice-President; J. F.
Wanberg, President, First National
Bank

and

Trust

Co.

Evanstom.

Treasurer; and Margaret Hadley,
Secretary.
Members of the Chicago District
Board of Governors

are

Eugene F.

Cronin, President, Ashland State
Bank; George J. Fitzgerald, Presi¬
dent, Michigan Avenue National
Bank; Donald D. Magers, Presi ¬
dent, Cosmopolitan National Bank;
and John E. O'Shaughnessy, Pres ¬
ident, Mercantile National Bank.
Ninety-five Chicago area bank*
members of the group.
Mr..
Spellbrink succeeds J. Ross Hum¬
phreys, President, Central Natl.
are

Bank.

1949.

1950

when

revenues

were

three times

those

Jay Bacharier Co. Opens
Jay Bacharier &
been

formed

Beaver

offices

engage

securities

business-

Jay Bacharier, Presi ¬
Secretary; and Sheldon
Treasurer. Mr Bacharier
are

and

Berler,

Oppenheinier

formerly with

was

Street, New York City, to

Officers
dent

Co., Inc. ha*

with

& Co.

settled

satisfactorily by the company through negotiation with
customers, and about $1,173,000 of increased rates collected in 1957
refunded to customers. The company's rates were increased

Hooker & Fay Add

were

in October,

1953 to offset higher taxes in the State of Louisiana,
which the FPC permitted suppliers to include in their selling price.
A

filing was made with the Federal Power Commission' on April
30 this year for a rate adjustment to offset increases in the average

Texas Gas common was listed earlier this year on the New
York/Midwest and Pacific Coast Stock Exchanges. At the recent
price around 29 the stock yields 4.1% based on4he cash dividend
rate of $1.20.

Cash dividends have been supplemented by year-end
2% stock dividends in each year, beginning with 1953, and includ¬

feet

will
in

consist

length,

ing

this payment the yield would exceed 6%.

(Special to The Financial Chronicle)

SAN

FRANCISCO, Calif.—Paul

W. Galyen has been added to

tlfc?

staff of Hooker & Fay, 221 Mont-,
gomery

Street,

members

the?

New York and Pacific Coast Stock:
wehqnaes

AREA RESOURCES BOOK

Now With Mason Bros.

Form Hechler

OAKLAND, Calif. —Robert K.
Miller has

become

affiliated

with

Mason

Brothers, First
Western
Building, members of the Pacific
Coast Stock Exchange. Mr. Miller

w<&

and

Inc. has
at

{special to The Finangj^l Chronicle)

formerly with Reynolds & Co.
Harris, Upham & Co.

Weingrow

been formed with offices

375. Park

City,

Avenue,_ New York
engage
in a securities

troff is affiliated with E. F. Hinkle
& Co., Inc., Equitable
Building.

has

become

Goldman, Sachs & Co.",-314 North

Officers are Ira J. Hech
Broadway. He was' formerly with
ler, President and Treasurer; How- Itlie Security-Mutual Bank of St.

ard

Weingrow, Vice-President

With Edward D. Jones
Two With W. E. Hutton

have

been

Maine

Richard

Alvin H. Morrison

added

the

W. E. Hutton & Co., 120

Street.

—

staff of

area

offers

much

opportunity
to
industry.

Louis.

and Secretary.

A. Jackson and

Os-

R. Deuaffiliated with

ST. LOUIS, Mo.—Gene
ser

the

serve

(Special to The Financial Chronicle)

business.-

PORTLAND,

(Special to The Financial Chronicle)

With Goldman, Sachs Co.

Securities,

(Special to The Financial Chronicle)

With E. F. Hinlde

New book

explains why
Hechler

PORTLAND, Ore.—Herbert

Development

dam

cancy on the board caused by the
resignation of Carroll Searls, who
is retiring after 32 years of serv¬

Morgan
prior to*

other integrated natural

from the company's suppliers. The adjustment amounts$5.4 million annually and the new rates are expected to
become effective late in 1959.
"

Newmont

lengthy

scheduled for early June.

were

to about

He will fill the

firm

proceeds

the bonds will be applied
by the
District to the cost of construction

Mining Corp.

deliveries

cost of gas

Silloway, president of
Ripley & Co., Incorpo¬
New York City, has been

elected

.income
__

Net

Boa^l
Eugene, Ore. X
Electric

Eugene
of the

Harriman

rated,
will

the

Stuart F.

•

from

and

Silloway Director

expected to be available to
accelerate the retirement of the
issue.
•'
Interest

Wash.,

and

City of

Fund

exempt

Sound Power

and The Washington

increase

earnings rose from 73b in 1949 to $1.77 in
the following year, dropped to $1.03 in 1952, and recovered to $1.67
in 1955 and $2.13 in 1956. They declined to $1.83 (adjusted) for
1957 and recovered to $2.06 in 1958 (they were the same for the
12 months ended March 31, 1959.)
Cash dividends paid haveMncreased gradually from 91b in 1.952-53 to $1.00 in 1953 and $1.20
currently.
Two major rate cases pending at the beginning of 1953 were

Co., and the munici¬
pal purchasers" include Public
Utility District No. 1 of Cowlitz

mences in 1980*
but may be re¬
tired earlier by the application of
excess

Co.; Puget

new

some

and

1948

Northwest, and five
publicly owned systems.

& Light Co.

South'

increase

Water Power

the provisions of a
mandatory an¬
nual
sinking fund which com¬

certain

utilities

project

followed

Pacific

smaller

re¬

electric

which will

December the

million

The companies are Pacific Power
&
Light Co.; Portland General

term

owned

station, etc., to gather
100 million cf of gas daily for delivery to-a
subsidiary of Consolidated Natural Gas in Ohio. FPC hearings on

and

ail

reserves.

and transport up to

system,
it operates in Grant County. The
contracting
public
utility
com¬
panies include the four largest in¬

facilities

$40

sale of 98.2%

the power for the electric

and

almost

lion from internal cash.

municipalities and a
public utility district.
The Dis¬
trict will initially retain 1.8% of

prices to yield 3.80% to 4.45%,
case plus accrued interest.

1970

by Sept. 1, 1964 and that all
ready for operation by Jan.
1965. Initial generation of
power
is expected to commence
by Sept. 1, 1963.
1,

Wanapum power have
signed with public utility

across

to off-shore

daily, providing for customers' estimated increased needs through
the next heating season. This program had been financed
through
private sale of $17 million debentures, with the remaining $3 mil-'

ten be

panies

in each

Bonds

opera¬

extends

access

Storage operations are
expected to grow considerably as other fields are developed.
Rapid system expansion is continuing with two major pro¬
grams costing about $60 million planned for this year. Last October
the company received FPC permission to construct
$20 million^

of¬
fered at 100% and the serial bonds
at

ready for commercial

system

peak day capacity is about 141 million ef.

name

tion

Contracts for the

turing July 1, 1967-1979.
The term bonds are being
.

and

New York Stock

ers

company is gradually developing underground storage
fields and will have six in service by the end of the
year. Current

ington, by a nationwide under¬ struction contract requires that
writing group of 300 members six of the generators be installed
headed by Dillon, Read & Co. Inc.;
Kuhn, Loeb & Co.; John Nuveen
& Co.
Incorporated; B. J. Van
Ingen & Co. Inc., and Foster &

The

maximum

installed

supply

Louisiana, and has ready

plate rating of the ten generators
will be 831,250 kilowatts. The con¬

enue

powerhouse,

principally

The management h confident that the South Louisiana area
will continue to be a very productive
region for further gas dis¬
coveries, especially in the on-shore and off-shore regions. The

height of the dam will be about

generator

cludes many years as

CHICAGO, 111.—Harry R. Spellbrink, President, Commercial Na¬
tional Bank of Chicago, become?*
President of the Chicago District
(Group One) of the Illinois Bank¬

which

fields provide about two-thirds of

ten

the?

Elects Officers

Louisiana

Texas. The system is connected to 35 fields on the Louisiana Gulf
Coast and nine fields in North Louisiana and East Texas. These

Economics.

One of the largest financings of
its kind took place July 1 with

subject,

Chicago Bankers Group

and

Operation of Security Markets.

the

brokerage

to a group of
The visit to New

books

result of purchases from field
suppliers. Gas supplies are diversi¬
fied by substantial purchases from other

Company's

branch

thirty students from the University of Vermont.
York

con¬

hydro¬
Texas Gas Exploration had 1958 sales (gas; oil and
liquids) of over $5 million and contributed about. 32£ per share to '*
consolidated earnings after crediting tax
savings from drilling costs
and statutory depletion. Texas Gas
Exploration International was
incorporated in 1957 to acquire acreage in Guatemala, Alaska, etc.
In recent years all.increases in dedicated reserves have been
a

carbon plant.

Edward

asso¬

Prior

most recent of which was released
last month.
His long
career,
in¬

ber

8,600,000 barrels, and had

also

Co.

a
general securities busi¬
in Beverly Hills,
specializing
shares of life insurance?

four
.

ploration.
at

the

mated

Securities,

with Sutro

companies. A recognized authority
in that field, he is the author o£

subsidiary, Texas Gas Ex¬
reserves

Schwarz/

ducted
ness

last year had dedicated gas reserves estimated at 6.4 trillion
cf. of
which 100 bJllibn cf were held
by its
The latter also owned oil and condensate

Maurice

joining Sutro, Mr. Paradise

The

with,,the*

partner.' Berenice
F.
also
formerly
with.

Chin berg,

Paradise

through customer,

growing industrial and petro-chcmical
y■,%' ■
buys most of its gas supply and at the end of

center.

in the southwest Louisiana

are

Securities Com¬

associated

resident

Middletown, Ohio, with feeder lines ,in Indiana, Illinois and.
Kentucky. About 1.5 billion c# gas is sold to 70 utilities servicing
communities in Louisiana,.
Arkansas, Tennessee, Mississippi, In¬
diana, Illinois and Kentucky along with the Mississippi River and
Ohio River valleys. The
company also sells gas at wholesale to
Columbia Gas, American Natural Gas and Texas Eastern Trans¬
mission. It sells gas directly to 13 industrial
customers, although

now

Beverly Hills Office of Sutro &;
Co., 275 North Canon Drive as ci
registered representative, it was

integrated natural gas system in the south and
3,714-mile pipeline system extends from the east
Texas Carthage field and southwestern Louisiana
Gulf Coast fields
middlewest.

pany

revenues

(Special to The Financial Chronicle)

g^.
LOUIS,
Mo. — LeRoy L.
Kohn has joined the staff of Ed-

ward D.

Fourth

Jones &

Street,

Co., 300 North

members

the

Exchange New York and Midwest Stock Ex-

changes.

UTAH

POWER
0 LIGHT

Write for FREE COPY
Box

899, Dept. K

Salt lake

City 10, UtaK

Serving in
Utah-Idaho

Colorado-Wyoming

Continued

jrom pdtje 4

-;' ->.

;

tion
•

Transportation in 1999

avoid

direction

Inter-connection may be declin-

ing in importance, but it still is
vital for today's railroads, since
each fine contributes to and receives traffic from all the other
carriers.

American

railroad

the

important

areas

rationalized,

must

to about 1920, they seventy or more years. The main
well adapted to the needs of •research
objective is to find out

contrary,

the

escape

adverse trends

the two

effects of

carrier

common

entirely

can

that

follows

made

been

has

that
namely*
do their freight carrying work freight rates. Research committees
effectively in the future,
with competent personnel are now
Prior to the World War I period attached to the major ratemaking
of Federal control and operation, bureaus. This is a bold change
railroad freight lines and services since some of these committees
were in balance and were not in have
operated without benefit of
need of rationalization. On the thorough and careful research for
of

one

being nationalized if they are to

1880s.

one

rationalized

planning there must be research.
It is encouraging that a start in
this

must

problem

immediate

were

have

improved

been

like¬

towboats

their

and

Barges
wise

get the planning phase started as
a
voluntary. rather than a gov¬
ernment
effort.
Underlying the

Will Be Rationalized
quent industrial expansion of the

been< ac*

have

will

process

complished.
The

rail

FinanciaTChronicle

The Commercial and

(24)

years

and vessel will have de-,
and further effectuated
own
rationalization.
They

barge

veloped
their
will

well

continue to be

to their

adjusted

potential market.
that

lief

will

there

My be¬
be

Thursday, July 2, 1959

even

greater and more eXficiejut use of
navigation channels;' and less po¬
litical "hue and cry."
The ques¬
tion
of
"user
charges" will by
1999, have lost its political overlones and
will have been settled.

Settlement, even if it means par¬
tial
or
complete reimbursement
expenditures oil behalf

of Federal

lead

problem the fail¬
inevitably

will

rationalize

And

railroads.

the

are

like the railroad
ure

aviatio^*

commercial

in need of fationaliza-

much

tion

from now, in 1999,
domestic Water
carriers
by

the

ferent reason,

de¬

sign and economic efficiency.
Forty

by
the /
already a

nationalization

Government,

Federal

through its past
subsidies. Like the
railroads, commercial aviation can
major

and

partner

present

and

nationalization,

fear

should

already the pattern in most of the
nations of the world.
-In
my

1999, 40 years .from now, in
" belief the 'commercial avia¬
contract

tion

common

riers

will have accomplished vol¬

and

rationalization,

untary

car¬

thus

and

averted the undesirable socialistic

Avia¬

alternative, nationalization.

tion will
have come of age.
ol'i navigation, will not lessen or
It
the nation. Since then they have
w^iat kinds of freight rates at¬
retard
the
growth
of will have made further competi¬
become gradually more malad- tract and retain desirable traffic. greatly
tive gains at the expense of other
against
progress.
By
selective justed and more obsolete when The current interest on the part of freight transportation by barge or
forms of transportation, particu¬
liquidation is meant such neces-- viewed as a national system and railroads in contract-type freight, vessel in competition with rail¬
roads and highways.
larly in the field of passenger
sary "survival" actions as abannot as-individual railroads.
rates, the so-called "agreed rates"
transport.
donment
of thousands
of miles
used in'Europe, and Canada is an
Causes for Jtajlls Imbalance
Pipelines
::
of branch lines made unprofitable
example
of
this
new
research
Cablcways and Belt Conveyors
Since about 1880 pipelines,-the
Three major factors that lvive
by truck competition, closing of
viewpoint.
fourth mode, have become an in¬
Although by no means as yet
stations
yielding
little
or
no
created this unbalance have been,
Rationalization is not an untried
of
ter-connected network resembling
major
importance, the sixth
traffic, elimination of unprofit-' first, the relative shift of popula-

of recent years,

tion

and

selective liquida-

resistance

increasing,

able
c a

trains,

passenger

and

impact of competitive modes of
transportation throughout the na¬

practices" that have the effect of
wearing out track
faster

than

and equipment

inability
rules

to
to

inter-change

revise

prevent the offering

of "jalopy"

freight cars for loadto accomplish volor merger even in
instances known to offer imporing.;

failure

untary pooling
tarit-cost

reductions; and accept-

ance

government

decisions

and

labor

and

that

agreements

perpetuate costly
ding" practices.

"feather

bed-

is today

there

Recourse

technique

that

other countries,

used

example, in Great Britain after

the First World

It is

Wa,r.

neces¬

because, it provides for a
broad approach to railroad prob¬

sary

problem of adjusting particular
lems that are themselves nation¬
railroads built for both passenger
wide
in
character.
Solution
of
and freight service to the decline
national problems requires a na¬
or
disappearance
of passenger
tional approach.
If voluntary ra¬
trains.
tionalization is not accomplished,
In the northeast, the railroad
then
compulsory
nationalization
system has become relatively too
of our railroads will become in¬
extensive because of these trends,
evitable.
Nationalization
is
the
Fortunately in the south and west,
this problem of relative size of costly socialistic way to force na¬
tion-wide solution of the railroad
plant in relation to demand is less
problem and that does so by de¬
acute,
v
Throughout the United States stroying private enterprise. Na¬

It ismften true that businessmen

transportation.

this

zation

and

them

bring

forced

turn to

government as and differences in the

the only .source
of needed assistance. For example, the Reconstruction
Finance
Corporation,

mode of

upon

competitive

zation

assistance.

looking
larly
for

kelp

commuter

loss

Railroad
find

Today..

some

managements are again
to government, particu-

in
solving
problem.
who

executives

commuter

service

the

now

burden-

can. correctly claim that the
metropolitan area transportation

persons

already

government

problem.

largely
It

consists

away

out

For

try.

cars
con-

government agencies

are

facilities

private

Provision

needed

and

used

automobiles.' This

means

give
of

day's

pay

for

ices.

tion

It does not mean
of

small

lation

Jof

wk°^e»

ays

"longer

ing

the economic pressure fore-

rail

common

carriers

into

government ownership. Railroads

rationalize

them so that they will continue to

well be

canfjecome

major mode of transporta-

planning for future
neecis>
ment.

followed

by accomplish¬

My forecast is that by 1999

both these steps in the rationaliza¬

are

/helicopters

and

hoverihg airplanes that re¬

strip

small landing

passenger
fense
and

control, airport

and

promotional*•

ac¬

air

the

law

and

combined
tain

activities,

mode

the

been
in

the

and

use" of

coastwise there

recent

years

dimensions

and

has

increase

cargo

ca¬

pacity of vessels. Bulk cargo ves¬
sels have" been designed for their
intended
traffic, particularly to
reduce time spent in port when
loading
or
unloading.
Another
important
development
is
that
vessels carrying railroad cars or
trailers

havgrome into use. These
physical handling of
merchandise, box by box, at ports.

eliminate the

competitive mode of transport.
More

than

century

their

fare

order to

ago,

ex¬

began

to pay
passenger trains in

messengers

press

carry

messages and par¬

different from parcel post,
less - than - carload and
traffic.

carload

warder

The

his

use

common

produce

date

truck

The

basic

of gov¬
promote, that
commercial air de¬
concept

is,' to hasten
velopment in

advance

Thus, but~for quite

proven

dif¬

trailers

truck

complete

be'carried

50th

85-foot flat

destination

49th

our

Alaska

state.

Hawaii

the container and contents can be
moved

by truck

destination.
there

has

door

Kind

New

This

truly

new

air to

transfer

still

container

original

will

seals

customer's door.

the

rail

In the entire journey
been

The

lading.

ernment has been to

containers

They can
also be loaded
quickly into a barge or' vessel.
For example, merchandise loaded
in a factory that does not have a
rail siding can be trucked to a
railroad
yard,
moved
by
rail,
thence by barge, thence by vessel,

never

These

car.

civil

economic bal¬

are

in size up to 40 foot van-type
bodies.
Two truck bodies,

two

can

transport,

has

between

vary

have

interchange¬
different modes of

that

transportation.

main¬

and

Jtk.

existence

need.

able

improved

added

been

containers

all have

regulation

been* rat ion ally «*fn
ance.

carriage
supplied
by
others in any combination and to
whatever extent desired. To this
distinctive characteristic there has

coupled

international

pointed out, is no
longer rationally* in economic bal¬
ance with national needs, because
it has been to some extent, pre¬
vented from adjusting itself dur¬
ing the 40 years since the rise
of rival competing modes of trans¬
port. Commercial aviation, in the
United States during its 30 years
as

navigation channels. On the Great

con¬

These

'operation.

The railroad mode of

third

as desirable supplementa¬
but also to some extent as a

tion

irrational and unbalanced

pattern.

Navigation Channels
The

continued,

have

will

velopment

largely

conciH-rqjQit evolution of

domestic

carriage
truck is that much

development

national

lighting and

in-r

and contract

Both for de¬

service.

funds into airplane

with

common

opening ne\\f commercial pos¬
for
lioth freight and

sibilities

complished.

labor-

To rearrange and improve the

rail flat-car for

freight by
rationalization will have been

better and safer devices,

that

other

advantages of' the other
transportation in its own
Thus my forecast for 1999

La^es

railroads>

commercial

behalf.

passenger

The private enterprise railroads
of the United
States, viewed as

are

struction

Hence, these
making their way

are

solely lor rational economic rea¬
sons" In 1999, this rational de¬

recently

rapid,

there hds been a bountiful

for

ap¬

Federal activity.

devices

yet further great changes
present in sight. The use
of jet power and the development

and

offer, at
miles,

the

present-day

contract

mode of

°u
United States is used by Rationalization Completed by 1999
short-haul
trains.

major mode of trans¬

government "promotional '
design, airway

herent

part of the total railroad mileage
urban

The fifth

300

use

plication, there is as yet no Fed¬
eral regulation.
Outside of some
defense interest, there,, has' been

portation is commercial-air navi¬
gation. ' Its
development
dates
from
about
1930..
Its technical
evolution
has
been
extremely

origin to desti¬
but will load

technical limitation.

local

Because

distinguishing feature of the for¬

flow of

how

already perform gi¬
gantic daily tasks of moving ma¬
terials or persons.
To date both
cableways and conveyors are rela¬
tively short haul transportation
devices,, but this is an economic

platforms,

truckload

reasons

learns

moving stairway

the

express,

each

whole, fair day's work long after instal-

The belt
its passenger coun-

mining operations.

tion,

•••

•

Commercial

Rationalizing

result in gradual decline in
intensity of competition between
rail and truck, as each finds its
own best economic sphere, and" as

servmanagement contract clauses that
nationalizaV perpetuate what is no longer a

the railroads as
fortunately only

smce

policies and actions.

quire* only

nationalization of commuter
-

for passenger travel

areas

its

will

asked to

few minutes

continuance

or ah of the distance, ex¬
cluding as a minimum only the
metropolitan area trip oyer city
streets at each end. It is my fore¬
cast that this use of "piggy-back"

different .class of work, or in-

sisting

agencies

other

cableways
otherwise inac- *

urjique character¬ cels. After lengthy evolution the
istics,"the pipelmc-inodeof4rans- present-day forwarder obtained
port, in 1999, will still be follow¬ Federal regulatory recognition as
distinct
kind ' of
transporta¬
ing its rational private enterprise a

part

responsibility for every that labor unions also act in the
aspect of urban transportation of §ame way, striving to obtain Railindividuals, that is for commuter way Labor Board decisions that
we^

delays.

indefinite

ment

sup¬

Common

about

over

their trailer

will have

that

will

truckers

the advantages of
nation movement,

Continuance, of. private enter- vreduce railroad taxes or to permit
prise rail and bus commuter serv- discontinuance
of
unprofitable
ice-is already becoming difficult railroad service, their characterisbecause of present and prospec- .tic
reply is to create indefinite detive losses. Hence it may be forelays in the courts or before Tegcast that,
by 1999, government ulatoiy agencies.
Small wonder

✓

services

maximum.

distances

off-street, and excepf this one". There is ample
bus and subway evidence
that, if state or local

services.

about

Use of

transportation.

contract

^oyernme:nt services consisting bondholders, union leaders and
°*« thiuways, traffic police and community agencies will be heard
S1+^u curb c Pal
facilities that "we are in favor of mergers,
at -the
and
sometimes also ol

second

operators preceded the
highway activities
limited to urban cartage

omnibus

nomic

tinued
interchange of
"jalopy"
dwindling rail and freight cars. Another example is
performed by pri- that if merger proposals to save
enterprise common carriers;' millions of dollars are
suggested,
a
large and growing group tiie familiar cry of
stockholders,

services

and

result of

Aviation

small and

vate

forced

not

are

unchanged

regulatory of court pro¬
cedures
that
contrive to
bring

in 1999,
highway
congestion
will
have
forced the rail-truck partnership
called "piggy-back" or
"traileron-ilat-car" to develop to its eco¬

most cities of the United States

bus

pipelines

Forty years from now,

diem charges

of new freight
help to bring about

and thus

diameter

larger

use

era;

mode of

between railroads that discourage
construction

lete

remain

plemented railroads; the bus and
truck have now again developed
into
a
nation-wide
competitive

instance, if car interrental rules are the

of low per

such

become available, the obso¬

pipe,

Because

and

issue, the majority of the freight
cars can be expected to be voted
in favor

of existence.

ments.

to¬

disappears, they go
When improve¬

demand

the

When

demands.

known

meet

only

been built

Govern¬
not provide
"promotional" funds for acquisi¬
tion of rights-of-way, construction
of terminal storage tanks or cre¬
ation of new subsidized pipelines.

became

from and'

for

and

tow

canyon

opened

cessible
or

ski

rather than

40 years from now.

Pipelines have

city streets and rural highways by
common
and contract stagaeoach

against progress has become a serious problem in the railroad induschange

now

some

change. This trend

mountain
have

ol' cableways and belt
should not be over¬

The

looked,

terpart,

railroad,

tunities.

use

conveyors,

conveyor and

transportation on our list,

and contract carriers.

mon

growing

pipeline will continue to be. the
only, mode
of
transport
that
moves
in
only
one
direction.
There is no costly return move¬
ment of empty or partly Joaded
equipment to- deal with. There is
no rationalization
problem, either

namely, use of highways by com¬

oppor-

during the desperate 1930 depresAlso
throughout
the
United
sion, assisted over one-third of States railroad managements must
the railroads, measured by miles, deal with the
gradual increase in
of $rack, with loans ana reorgani- effectiveness of resistance
against
^railroad

the

now

transportation, -namely,

mode

ried will continue to increase.

and wagon

degree of-regulation do have their
effect

turn'

kind and

system. In
crude oil,

of materials car¬
The

the variety

and

political
morrow's transportation needs.
are opposed to bigger government
question, since differences in govand particularly
to more state ernment spending on behalf of
Turns to Highways
socialism,, yet
find
themselves each of the modes of transport
a

and

water

pipelines carry refined petroleum
products, natural gas, and certain
finely powdered solid materials
suspended in a suitable liquid.
The number of miles of* pipeline

them

with

balance

economic

into

railroads

American

modernize

To some extent

government

addition

rationali¬

be avoided only by

can

competition

against the other competing modes

Government Aid

railroad

national

the

tionalization must be avoided and

the problem of ef¬

fectiveness of railroad
Ironical

idea.

been

for

financial

the

third,

and

tion,

replaced or re¬
By
resistance
against
paired,
is meant such developprogres;
ments
as1
railroad
industry

lad

has

tion and industry away from the
northeastern states, second, -the

so-

maintenance

"deferred

intact

•

Forwarding

kind of "forwarding"

seventh mode of trans¬

port since it uses the other modes
as

required and thus furnishes
through routes " and services
otherwise available without

new

not

costly

and
damaging
transfer;
standpoint of the ship¬

From the
per

and

receiver,

the

container

becomes the vehicle for transpor¬

tation.

Forty

years

from now, in

1999, forwarder transportation us¬
carrier-furnished
containers

ing

Volume

190

Numbei

5860

The Commercial and

Financial Chronicle

(25)
will
to

available from

anywhere.

This

transportation
itfills

cause

anywhere
mode

new

will

develop

economic need.
that it
does, it ob¬

the extent

viously is rationalized, that
is

and

be¬

will

continue

is, it
be

economic balance.
Government Supplied
Transportation

1999. government

government direct participation in
two'kinds of transportation are

The vital question that

apparent.

be answered

during the next

40 years is how much further this

participation will extend. This di¬
rect participation iSi of course, in
addition to provision of
highways
and other

facilhies;7~

Government

ready

pvr ^

local

and

operating
streetcars,
subway trains, and
is providing subsidy assist¬
to some railroad commuter

also
ance

services.

The

school

transportation, however, will not

rather

have

become

nopoly..

bus

be¬

coming
universal,- < not i'only ; in
metropolitan
but
also
in
rural
The municipal airport is a
transportation device similar to
the privately-owned rail or bus
Another

local

area

ac¬

tivity is federal operation of a
large fleet of trucks to handle
mail

and

parcel post.

For

defense reasons, the Fed¬
Government now operates a

eral

railroad

the

Alaska.

world

routes

Throughout
the
regular

extend

Military Air Transpor¬
tation
Service and thq
Military
Sea Transportation Service. Pas¬
senger
automobiles, busses and
trucks are supplied for military
use in and near
military bases.
;
In recent years the
"yardstick"
concept has disappeared, as a rea¬

for

son

government

operation; of

transportation. The most famous
yardstick, The Federal Barge Line
the

sold

Mississippi River; has been

and

is now a. successful
pri¬
enterprise.
The costly les¬
of World War I operation of

vate
son

the railroads

by the Federal Gov¬
ernment played a major part in
teaching
Congress
that
private
enterprise can do the best job of

transporting
President

persons

Roosevelt's

freight.

effort

mode

transportation.
and

rational

government

mode

private

forwarder

transport,
—v,

is not identified

this
tech-

nically distinctive kind of transportation, since it uses all kinds
required. Tlie private automo-

bile

dominates

now

passenger

transportation

and

private truck

will

continue

The

so.

tation

local

and

now

freight transpor-

it will

continue

Hence

the. importance of private
transport cannot be e^aggeratcd.
t

By 1999, forty years from now,
the use of piivate means oi. transport will be greater than ever,
Wherever

sufficient

freight exists,

barge

volume

private railroad,
operation, oV pipeline,

truck

vessel

become

operationjmay
appropriate. Many such

private

transportation

activities

....•11

will

into

come

another

way

compete

transportation and
defense
transportation have be¬
come
logical areas for limited
governmental activities, the former
because of the

minority status of
trains
or
bus transportation
as
compared to the private, automo¬

just

nationalization

out,

be made to

can

happen and will hap-

event

Federal

of capture of
Government
by

socialists.

pen

our

the

likewise follows

that
the opposite possibility of rationalization
'of

eaph of the nine
transportation will not

vviAi

accomplished,
the

fact

that

will

the

stem

trend

prise

common

lies

and contract, car¬
possible unfairness

"foots

lies

the

the entire bill."

Herein

possible unfairness.

government-operated subway sys.tem gives a 25. cent ride for 15
.cents,
line

the

railroad

muter

private enterprise bus

service

offering

the

com¬

same

area

socialism will have been lessened.

quate

to charge an ade¬
fare for its services. Simi¬

larly

military
all

airplane
of

the

most

desirable

cargo,
the private en¬
terprise steamship or air operator
may find his operation unprofit¬

able for
If

lack of sufficient

"my

(correct,

detailed

then by

Y™

respect

with

curriers,

the

standpoint of the established carrier, for
hire, private
transportation
will
continue
to
skim the

that is, the most
'
rationalization
must

cream,,

desirable freight.

However,

become the rule in this

know

that

also,

area

increasing

popu-

lation will result in
congestion of

available
highways,
railroads,
waterways and airways. Additional., routes are becoming more
"difficult to create. Hence the great
future opportunity for expansion
of private

built

transportation is not in
communities

■sparsely

settled

tween

the enterprises.
Socialistic
ddctrine makes much of this
point,

claiming that only its compulsory
government approach to economic

problems
ning and

bring about plandevelopment along industry-wide lines. Rationalization
of railroads, commercial
airlines,
can

the other

and

modes of

transportation can only be accomplished
if private enterprise develops
within itself the ability to
plan
for economic

adjustment
-i

tional

and

na•-*

industry-wide

basis,

but

areas.

Outlines

traffic.

producing
addition, industrialization in the service territory

commodity.

with

modes

all

the

estab-

supplementation

petition

with

rr,

!■

than

other
'

com-

modes.

backed to the necessary extent
by
the

police

power

ment.

There

know

of,

of the

other

govern-

reason

than

that

the

larger
problem, to prevent
these same zoning type
principles
from
being applied to railroad
and other transportation problems
size

the

the
of

rational

nation-wide

instructions

ownersh-ip
political

and

require-

the

standing.

our

hands

carrier

has

majority,
transportation

trains

«reat extent

are

1999, the ration¬

This

has
on

been

branch

its

sinking-

funds

re-

arranged and less burdensome

show

better

„

income

available

„

•

5'0%-of net income from the first movement of iron ore and, while
mortgage sinking fund purchases, this may decline in the third quarthus obviously improving the

as a

These include the

pergonal

por

ter because of the steel labor sit-

sition of the junior securities.
% uation, the drop should be made
Reports in the territory served up by a seasonable pickup in comarc That

grain

crops

this

will modity shipments.

year

Draft

Seven

Completed for Rival European
Trading Group

peripheral

countries surrounding European Common
drafting a second European trading group.
The proposed plan allows for subsequent negotiations with the
European Economic Community and the O.E.E.C.
Market conclude

Another
from

---

meeting
of
officials specific agricultural products^ oi;
Austria, Denmark, Norway, importance to exporting countries.
;
,

-j

Portugal, Sweden, Switzerland and Fish and marine products w uld
the United Kingdom was held in be treated as an indepe
t
Stockholm from 1st to 13th June, :
problem sepaiately from ag
7
.

Proposals

tdre.

for

cul-

officials had been charged agreement to achieve £
by their governments to discuss increased trade in t s p
were

made, and these will be giv-

Won in Europe and to examine, on en careful consideration,
a non-committal, basis, methods of
The main scope and function of
reopening negotiations with the t he
institutional
arrangements
European Economic Community within an association have been
and the other members of delineated.
The
officials
have
O.E.E.C., in order to remove trade sought to draw up the plan in such
barriers and establish,a multi- a way as to facilitate subsequent
lateral association

embracing

all negotiations, within the O.E.E.C.,

members of O.E.E.C. In particu- with
the
European
Economic
iar, they had been charged with Community and the other memexamining the problems involved bers of O.E.E.C., some of whom
m creating intimate trading ar- have particular problems calling

rangements between the. seven
countries, what the rules and instltutlonal arrangements of such
wliether it could be so devised

to promote negotiations for
wider European settlement.

for special solutions,
The

of officials will be
governments.
It is
expected
that there will be a
meeting of Ministers of the seven
,

report

submitted

Stockholm about the

countries in

middle of July to consider

Accordingly, officials have port, and take decisions

•

Conclusion v
elaborated for the consideration of
In conclusion, therefore, I stand Ministers a draft plan to create,

the reit.

Hon in the United States will still

jn respect

of industrial products,
plan deals with the abolition

be in the hands of efficient and
profitable private^ enterprises. It 0f tariffs and quantitative restric-

Two With

Semple Jacobs

(Special to The Financial Chronicle)'
Wnrn.r

^i. luuit>, ivio.
vvarncr
Isaacs and Eugene S. Kahn have
become
jacobs

connected

Semple,

with

711 St.
will be well adjusted to the needs tions, rules to ensure fair comrh_rl„_
otrpp+
mpmbers
of the
or
r
one
of the first major indus- of
a very
much larger nation, petition, and rules for
identify>-^narie®
'
'Midwest Stock
tries to be nationalized. This is P°Pulatic)nwise and industrywise,
ing the goods which would move New -York and Miawes
exactly what happened in Great than at present, But achievement freely between the members,
Exchanges.
Britain when the government of of this goal will not occur withy •
that country fell into the hands
as Winston Churchill used to
20% Tariff Cuts by July, 1960
With F. P. Ristme
of a socialist
majority after World tel1
the British people during
The immediate objective would
\Y
rill

undoubtedly become the first

Company, Inc.,

alization
approach to the prob¬
lems of competitive transportation
will have developed within each
mode. In the area of
government

transportationmy forecast

is that

local transportation will be. almost

exclusively performed by
private

government

appro-

agencies witli

With

than $22,000,000 ot bonds which it for the

lirm in
belief that forty years in conformity with, their internafrom now, that is at the end oi«tional-obligations„such _a. trading,
country ^ present century, transporta- association.

socialist

carrier

common

passen<*er

gone £

has

$67,525,000 bonds out- earnings, the road should be able
The

operation.-JF the

control

carrier

unprofitable

the problem of ecoriomic coopera-

done as yet cannot be done.

short

future time falls into the

some

the

eliminating

anpunt to $1,115,098 a
year, equivalent to 1.65% annual-

rail-

Socialism

step for the socialists, if in power,
change from - regulation
to

railroads

been

fund would

to prepare
plans, for example,.

majority approval and acceptance
The final step would
be to implement the nlan through
be to implement
plan through
voluntary means, backed and supported by the necessary govern-

loss

Government. It would be

west in particular has shown good

may, cancel bonds \ subsequently lineg with low density and COnsePurchased for the sinking fund.
auentiv high operating costs
The new contingent sinking H
*
5
Y
s

researchers

necessary

general public.

particularly common carriage is
already regulated by the Federal

agree that after the current airears in the income sinking fund
has. been satisfied, the company

The steps
first, employment by
private enterprises concerned

mental

-v

added

•

are

expert

the

thispoint^ cowringSerch ofPthe

States.

this gains in attracting new industries
ratio," This is the usual provision and plants mainly because of the
and over 66%% of the first mort- development of low-cost hydro-*
gage holders have agreed to it, electric power.
-!
provided holdeis of 667:1% of the
common with most of the nasecond
mortgage. income
4%s ti
,

nation-wide basis.

involved

mpnts

that surplus

capital stock in computing

transportation, .of such plan.

carriage of freight over
carriage of freight over
long distances will tend more to

P°sed

forecasts

revenue

ecjuity, especially siriee
could use to meet future sinking traffic is expected to show imtary acceptance by land owners of fund requirements. An important provement. Currently, this carrier
a
plan for
efficient
land
use
factor is that this plan would free is enjoying a large part of Hie

for

Steps to Take

The example of municipal zoning is un apt one bccsusc zoning
combines community-wide volun-

Already it is obvious that pri- road system to be operated as at
vate transportation must do much present
by numerous independent
of
the
economic
pioneering in common carriers,
undeveloped
or
underdeveloped
Assuming such a plan to be in
areas,
for example, Alaska.
It existence the next step as in mufollows that, though potentially nicipal zoning would b<5 to secure

this important

y;
st mortgage 3s, 50%
available net income must be continues to grow. The manageto i;etire fixed interest debt ment continues active in attracttransportation is not within the"
J
° °-* .f. V°
ck in£ new industries which adds to
individual separate enterprises but exceeds a specified ratio.
the long-term growth possibilities
rather is in the twilight zone beUnder the road's plan, it is pro- of the carrier. The Pacific North-

case

jmay not be able

.steamship takes

Pr?vlsl0ns

smkinf fund requirements. In the

The week point in the structure
of private enterprises engaged in

liberty such as
by
The Political Climate
government
agencies
rather
happened in Germany under Hitthan in their performance of their
If during the next 40 vears the ler and exists today in Russia unlimited transportation activities.
trend
continues
to
be
towards der Khrushchev.
The argument
One distinctive characteristic of socialism then the term
nationalsocialism is necessary begovernment
transportation, both ization, must be substituted for cause private enterprise is not
<in local areas and of defense
type, .rationalization in my discussion capable of developing a rational
is that the user is not
expected of and prediction about each of nation-wide plan for transporta-to pay the full cost.
the
The general
nine
individual
modes
of tion' mode by mode, simply as.taxpayer makes up the difference transportation.
Transportation, sumes- that what has not been
or

from

toward

world-wide podifferent modes of'transportation Utical phenomenon is at or near
are
I
believe
conservative and its'crest, in my belief. The extra
bile; and the latter because of the reasonably certain to come
about,
eosts of a sluggish and bureaucratspecialized nature of military sup¬ .There is one Iarf<e and ominous ic government operation are apport transportation. In both areas, element of uncertainty
namely
parent. Socialism's defects are bethe danger to our .private enter¬
the political climate of the United ginning to be understood by7 the
riers

Chicago & North Western

The Chicago & North Western be under the large harvest of 1958
happen^^ftTiout
effort
Like'is as^n^ holders of its first 3% which was a banner season. Hownatiofknzation,
rationalization ™<>rtSage bonds and second mort- ever, the carryover of grain in
muspbe made to come about. To pge inc°me 4%% bonds to assent storage .still should provide the
tlWexteiit that rationalization is 1° amendn}epts of the bond inden- road with a heavy movement of

pri¬
freight will

possible

contract

This

private

lesson.

local

pointed

necessarily '
possibilities

certainties.

saying that

whereveu

common

than

1999

future

existence.

vate transportation of

From

and

now

■

dominates

competitive

same

haVe

Transportation

ninth

lished

Both

mo-

will

tween

modes

Private

The

taught the

balance, with government providing a nucleus or "hard core" of
service, and encouraging private
enterprisd to. supply the rest.

turn

over the
flying of the mail
military ^planes and aviators

government

situation

areas.

terminal.

Instead

reached

y so.

al¬

areas

busses

describes

furnished

transportation will be recognized
an eighth and distinct
mode of
transport.
Today
the
growing
pains involved in emergence of
as

will

the exception of the private automobile and private truck; Defense

War

II.

tliat

nationalization

There

can

fate of American

will

common

doubt
be

the

World War II, "blood, sweat and
tears".

carrier '

Economic

larly

over

such

the

reduction

1st July,

of tariffs by 20%

19.60.

F. P. Ristine & Co., 15 Broaa
Street, New York City, members

The plan provides for a special of the New York Stock Exchange,
on
agriculture as
a announce that Gervais Ward Mcfirst step towards the elaboration
jr has become associated
forecasting, particuCLEVELAND, Ohio—Howard R. of that agreement; there will be
'
*
as a registered replong period of time Evans is now with Ball, Burge & discussions as necessary between witn tne mm as a regisic
v
40-year period be- Kraus. Union Commerce Building, interested countries on trade in resentative.

transportation under similar gov-" '
ernmental conditions.

dud

Joins Ball, Burge

(special to the financial chronicle)

•

agreement

The Commercial
26

We See It

farm

our

fail to

1959

part, would feel still more encouraged
outlook Were there better evidence that the
President himself had more constructive ideas on this
for

our

the

about

.subject. At another point in his message vetoing the wheat
bill the President reminded Congress that "in my Jan.

29, 1959, special message on agriculture, I recommended
price supports be related to a percentage of the

that

market price during the immediately preceding
In this message I also stated that if, in spite of the
tremendous increases in yields per acre the Congress still
average

years*.

preferred to relate price supports to existing standards
then the Secretary should have discretion in establishing
support levels in accordance with guide lines now in the
law." This same Jan. 29 message carried suggestions about

legislation concerning tobacco, "and they showed no more
long, hard process of ridding
ourselves of the burdens we now carry in foolish farm

determination to begin the

legislation than did those referring to wheat.
Our farm problem in its present extreme form dates
back to the New Deal, of course, but it has its root much
farther back in history. It is probably not too much to

effort

have various kinds

of special aid.

Administration

bestirred

supply farmers in remote areas with funds at
normally ruling only in the large financial
It did not originate the idea, but it had a good

interest rates
centers.

deal to do with the effort to

give practical effect Jo the

notion that interest rates should be uniform. It

was,

how¬

ever,during World War I that the real trouble began,
when wheat prices were fixed at extraordinarily high
levels which naturally encouraged a vast increase in
wheat acreage—and gave rise to the dustbowl problems
of later years. But due in substantial part at least to
unwise legislation, the plight of the farmer, particularly
the wheat growing farmer, grew worse instead of better
in postwar years, and the 'Twenties were marked by
feverish and usually futile efforts on the part of the na¬
tional government.
The New Deal
...

.Thus the political ground
dinary proposal of Franklin

the Farm

was

laid for the extraor¬

Roosevelt

and

his

New

Dealers that the farmers themselves be

problem than if our think- ing power without regard to the
continued along the lines of importance of maintaining the
propounded by the rate of investment. By ignoring
theorists of the so-called "stagna- the vital role of investment it is
tion"
or
"mature-economy" not difficult to also ignore the viscnools. We can begin to -realize tal role of profits in the economy,
that consumer wants are virtually In such a case, it is not a big 'step

panics.
V ' ,
to conclude that profits are excesThe most serious effect of this
sive and that business could be phenomenon, however, is that new
stimulated by wage increases fi- businesses are not formed wherr
nanced not out of increases jn promoters see the possibility of
productivity but financed out of being squeezed out, not so much
would provide an ever-increasing profits, In other words, consump- by action of competitors in cutting
standard of living with more lei- tion could be increased to tfye ex- prices, but by the action of the
sui
jure for our growing population^tent that profits were drawn down
unions in wage-bargaining on an
We can begin to understand that. to. finance wage increases which industry-wide
We
basis. Thus, we
is at
consumption,
that increasing investment would
not only'provide more jobs lor a
growing labor force, but that it

formation

the

business

in¬

expenditure of
funds for all the capital acquisi¬
tions and lor considerable
pay¬
ments in wages and salaries—all
volves

large

prior to the sale of the new final
good'ff or services to consumers,
thereby creating purchasing power
through the investment itself.
Job-Creation?

Stops

What

curing the underlying difficulties, have tended persistently
and acutely to make them worse and worse. And no
politi¬
cian to our knowledge has had the
temerity to state the
facts plainly and to draw the
necessary conclusions—
namely that the whole structure of agricultural subsidy,
by whatever name it may be called or by whatever means
it s^eks to accomplish its
purposes, must be brought to

worse.

result of this
progress

the unemployed in particular
nation in general.

of the

same

profits

would

This

A
of

line

convincing

formulations

reasoning

using
the

appears

Keynesian

of
by
also
the
greater
and
un measurable
problem
of
discouragement
to
new-job creating investments.
I:
have

Technology

rate, and various average psychological tendencies to consume, to

There

tional

product, etc.,

than in an

„

■

tauscs tor fsutflcicnt Investment

and

among economists and businessthat the active agent in the

inflation is the "wagepush," although the supportive
factor is "demand-pull." There is
general acceptance that one way
nf
is
of stnnninj* thp. wage-push" is to
stopping the
to
strm sunnnrtinff it hv pvross f?nvslop supporting it by excess gov
.eminent expenditures and result¬
present

ing credit expansion. The result
of
withdrawing
such support

oT^intf eLin/numLra6 oT un?mh-is
nas

pricing their serv-

would

Such un\
the

increase

j
the part of unions'to
rtnln
mnmBorelii
gain public and membership sup-

difflcuUy

enrv_

,-vori inpfiiiinvun.. in.ron.p, and
nort for future waee increases ant

would

also

increase the difficulty

the part m

btfsiness

for

have to be financed in the strug-

pas"

crease

productivity. However, for
companies,
nothing
be done and consequently

nonexistent

To get into the real causes of has to
insufficient investment, the analy- no jobs are created by potential
sis of the relationship between investors, despite the fact that in¬
costs and prices, not only on the vestors already receiving large
average, but also for each firm incomes and paying high pro¬
and industry, becomes necessary. gressive tax rates have proporThis is referred to as marginal tiolmtch "smaller"after-tax risks
analysis as distinguished from ag- than lower-income potential ingregate analysis. More and more ves(ors Excessive business uncerbusinessmen aie beginning to ic—
jnty rtmnlv
results in invest—
alize that an analysis of the .proh,0Xte in tox-frw S

AgaiLf teesrcondUiOTs"
however Dip

piratecaSseTfir^essfona^d
n

pajs,

jn fact,

analyzed by reference to individ-

many

company

sometimes, wonders why he
continues to operate a business
wjlen the return on nis mvest-

owner

ment could be higher "by investing
in tax exempt securities. Such,
Vestments are not job-creating
and a persistent tendency to such

11investments

men

ices out of the market

difference be¬

analysis of the real causes, of say, gp. to remain as competitive as
fii.mo
uninvested funds,
possible by new machines 10 in-

few basic

nnemnlovment
unemployment

big

to invest. Such reasoning based on netional totals and thU investments in existing comaverage
relationships, however, pjmies for cost-reducing and laborare more useful in post-audits of displacing equipment. Wage insocial accounting statistics of na- creases in existing companies

There is general acceptance

been caused by

new-job-creating investments and

save, and

The logic of this cona

That Creates and

tween the incentives necessary

derives from

but

Displaces Jobs

•

tention

the problem
aggravated

increases

relationships

between total savings, investment,
consumption, income, the interest

quarters.

failure

wage

excess

power

facts.

only

not

business

proposition that excess un°' an inchvisual firm can
has been largely re- Pl0v.e niorc iruitiui tnan an an~
sponsible for excess qmemplay-a]fiSTTT?
c °n C1 ~a|}:«^c.Q110"fiy'
ment has been recognized in many
£
conditions pre-

will

serious correction

only result in

when it begins

inflv?d"al pUults' 1"7 to appear that the growing labor
dividual producing departments, force has insufficient productive
consumers, and potential inves- job opportunities through a lack
.ors.
Investigation of their be^
s^d £7 of sufficient job-creating invest"av 101 and motivation Should 1C-/
veal rather surprising findings.
ments.
.

For

example, it might prove
surprising to some that high prices
were

'not due to so-called "admin-

The primary proof to support
the contention of insufficient jobcreating investment is the exist-

is,ered Prices," with the implica- ence of-excessunemployment In
tion of restricted output, but to addition to such unemployed there
norhans millions; of other in',-,u

l^n^cccd-wages with associ- are perhaps millions not other inated restricted output and em- dividuals who are of actively

ploy ment
Payment. Arbitrary industry- seeking employment but who
wide wa
wide wage increases resulting' would like to be gainfully emIIU111 U1C
£*» thfe'excrcise of union Vower Ployed
there jveie
rathci than gcneial economic tunities at satisfactory earnings,
lIiau
forccs wil1 Put a squeeze on many Such individuals include house«rms and operations or
even force some to cur- wives whose children are grown,
to
tail their
go out of
retirees who cannot manage

to
on
increases by increasing
business.
live comfortably
cn
their penprices.. The wage increases which
In
terms of economic effects, sions and otners who wish to suphave to be passed on to consum¬
such a situation Would be similar plement their incomes.
In addiers through higher prices are the
to business collusion to lower ti°n, there are other categories of
wage increases which cannot be
financed out of productivity in- prices to squeeze out the weaker the
disguised unemployed, who
creases.
These wage increases are
competitors and to prevent the ai'e m subsidized operations such
also
precisely those wage in- entry of potential competitors with as are found in agriculture and
creases which reflect excess
(mo- the end result of protecting mo- government, and in other mdustries
under
"featherbed"
rules,
nopoly) union power.
Thus, it nopoly profits through a monopoly
such as
in
railroads. The total
follows that excess union, power situation. The only difference is
number" of all such underutilized
makes for excess wage increases
that instead of monopoly profits,
individuals
probably
runs
into
and excess price increases; and there are monopoly wages.
•
several million.
excess unemployment in ,the ab¬
The
sence
of
Irony of Industry-Wide Wages
proof of the squeeze on
government deficit
spending.
The irony of the situation can existing business is suggested byfigures on business failures. They
be
seen
from the fact that the
The proposition that excess un¬
ion power has been largely re- stronger companies become an ac- have been rising steadily during

wage

iiivicuoco

American agricul-

time release

tasks. The old

which

The

ion

a
great deal of manpower to other,
"way of life" as the politicians of another
Hay described agriculture is vanishing and will continue
to vanish as the
years pass no matter what the politicans
or
any one else attempts to do to prevent its passing.
The time has come for a
new; look at our agriculture

and

otherwise have been invested

anyway.

table of actions in the interests of

ture can perform all the functions required of it and at
the

erwise
not

perhaps accelerate the time-

and

Technological advances of many sorts have com¬
plicated the situation, rendering the bungling attempts of
the politicians to bring any real help to the farmer all the
more certain not
only to end in failure but to make mat¬
ters

;

would not have been granted oth-

present contribution in this area
effort it is hoped will provide
some
added
intellectual clarity

end.
Gr

*J"?

emolovment

ible financial burdens to carry programs which, far from

business casualties alter tne
smaller, companies have incurred
heavy, losses. The net attei-tax
cost of such company acquisitions
is greatly reduced by tax-loss
advantages to the surviving com-

necessary as

We have been shouldered

since with almost incred¬

leaves

that investment

unlimited,

least

Snwrf wS
ployed whose

ever

actions often ' are.
middle-sized compa¬
nies the chance to pick up the
business
casualties
after
the
anti-trust

This

the .ideas

given the privilege
deciding what the national government should do for
them. The result was, at least in broad
outline, inevitable.
of

anti-trust

ing
as

ing

itself

the
to ab¬
which
for fear of becom¬
political footballs,

fall by the way

ment

"J"

Wilson

companies.

is revealed when

larger companies hesitate
sorb the weaker companies

people of this country, or many of them,
Our problem is,
therefore, to
held physiocratic notions about the role of
analyze the reasons for insufficien{
job-creating
investments,
agriculture in our economic life. Certainly the idea has
That there is a need lor this analprevailed for a half of a century that the farmer was somebow due special-treatment. Politically special treatment * ysis is attested to by the existence'
of an
excess
number of unemwas
often defended on the ground that manufacturing
ployed and the wide fluctuations
was granted favors in the form of high tariffs, while farm
of employment in the capital goods
industries. Washington, as well as
products, being so largely destined for export, could hot
the country-at-large is concerned
gain from this type of subsidy. At any event, at the turn
by and with this situation. Sevof the century politicians and teachers in the land grant
era I
high-level government and
private studies have been sugcolleges seldom lost an opportunity to preach the doctrine
gested, initiated, or begun. ; The
that farming was somehow the backbone of the country,
The

is pn smaller

•More irony

say that the
have always

and should

absorptive capac¬

strong unions bargain on
industry-wide basis, the real

squeeze

•*

page

Impediments to Economic
Growth and Employment

Wanted: Constructive Ideas
We.

Thursday, July 2,

when
an

it said—appear

ity, they would be put out of busi¬
ness
by an excessive wage in¬
crease just as by a price cut. Thus

'''

.'
applaud. These measures—with deep regret be
Continued-from first
to have been designed to win votes in a
Democratic political campaign next year similar to the
Truman "whistle-stop" preachments in 1948 about pitch¬
forks in the backs'6f farmers. The President seems to have
met that challenge face to face.
:
^
can

nies have little

problem, so called. If and when that can be
accomplished and a better understanding of our current
situation achieved by the rank and file, we should soon
hear a different song from the politicians. •
:

and

Continued from first page

and Financial Chronicle

(26)

vuiixiup

for excess unemployprobably unacceptable to
a
man
who is preoccupied with
the idea of maintaining purchassponsible
ment

,v»uvn

cessory to this monopolistic restriction of output when they absorb wage increases by not raising
prices. Since the weaker compa-

decade.
There
were
in
1958
compared with
3,500 in 1947.
In^ addition, the
proportion of failures" in older

the

past

15,000

Volume

190

Number 5860

The Commercial and

Financial Chronicle

(27)
businesses
and

has

increased

steadily
The proportion of

markedly.

failures

old

years
1947

businesses

increased

13%

1956.

largely because of the lower
rates, paid.

over.
from 9%

izing
that

Finally,

the

attributed to insufficient sales and

competitive weakness rather than
to. improper management. These

miners

same

most of the business failures were

political

wage

The process 6f organ-

these mines

and

them

wage-rates

receive

exercise

the

squeeze

the mines

self-restraint

and

con-

sideration for others.
The labor
federation in the Netherlands not

efficient mines has imposed

cost-price

will, be

danger.
It is not that individuals cannot

requiring

demagogue

ever-present

long ago asked for a 2% wage
-increase.
The explanation given
so

with the result

that many of them
had to go out
qjy&usiness.j This is privately for such a modest reto suggest rather an example of ttdf inability of less quest was that the union leaders
strongly that there is an external efficient businesses to absorb an were
religious, enough. to believe
squeeze on business in the form of 'industry-wide wage increase.
in the "Golden Rule" and in not
high prffces choking oft sales and
The
experience in bituminous -'.wanting
to
take
income
from
high costs cutting away profits, coal serves also to
illustrate the others that they were sufficiently
A
profit squeeze will naturally importance of
having new busi-.'.patriotic
after
the
harrowing
mean
that
the
company
is in- mess formation,.; Only
jby.. job-cre- German- occupation to avoid accapable of generating capital for a ting investments can the tech- tions which were not in the
longexpansion
and/or
increases
in. nologicaljy
unemployed miners be term
interests of the country
productivity.
absorbed into new industries. The
generally and, finally, that the
figures

appear

various

Squeezes.Suppliers

>
A

spill-over

industry-wide
in

revealed

mobile

effect

squeeze

case

the

for

reasons

union leaders

insufficient

^job-creating

auto-

industry,'wherein the*final

tion

dustry-wide wage rates, the unemploym.enfresulting from mech-

pass-through of their wage
increases by threatening; to make
rather

take

the

cuts 1 to

wage

companies

help
business,

cbalVinifustry:
for

ress

the

increase

e1
incidentally to help finance1 requires that increased productivthe wage increase for the workers
ity mf.ke possible the absorption
in the major assembly
plants.,; i^. o!-released- workers
into
new

and

the

during
for

semi-manufactured

other

fabricators,

„t-

'Parts'
---

miners

increases have put

wage

the

sitates

steel costs
and

increase

THi*.

dispensable

had

standard

not' subsist

of output

is a

Even

modernization

with

cost-reducing

cannot

continue

for

is that there is

reason

productive featherbed
'

provement.
the

Another

workers

Lists

We have stated the

dim

not

sion

wish

trfey

that

is. of excessive

displaced1 by

are

Ports
against

productivity which reunemployment is hot. an

sult.s' in

body

urcrease; in general^ productivity nature.
In

all.

increase

similar,

manner,

enumerating soff.e

productivity which

does-^not

the

general

standard

increase

•considered
of

contribute

creasing

basic

idea

productivity

'forces

in-

pnimfru

\xrlinln

HTHic

Sieved bv defensive
ildm™ f
placing investments ^

pinnnt

iob

Olawn.
sence

nmoie

ive
expansive

ab '

iob creatine

interesting

"this

the

unproductive

u. •

4-u

^ ■g Xf
improvmg the
The

the
-

irony

wage rates in mines
with
the United Mine

affiliated

the past 10

the tremendous mechaniza-

years,

tion

over

increased

'
productivity,
possible the payment of
wage increase without priori
creases.
As a matter of fact,

leauces

case

forceful

These
in

over

activelyi

form

forces in
the

years.

occurred

reduced

generate

mines

the

which

income

marginal

mines

could
to

able'to

continue to

®.

thn

,„u-ru

all

costs

wage

tariffs

tended

to.

\tmcn

marginal

put

well

casualty

companies that do

exclude realized and unrealized
capital
gains from their stockholder dividends. He discusses
definition
of

not

earnings, liquidating value and

L„jpnts

uuu

icuui

for> the life insurance companies
which does not exist for the fire

capital gains sha11 not be used

earnings per share for
casuaity

company

operating

M d

nfio.

earnings
_

thc.

a fire and
the actual
I.W

after

which

operate

labor

strained, from:

cusci-

simple

some

nower

.+u.

withm

con-

not

indus-

as marginal firms out

through

rather

This

selective and

long

run,

the

appearance

paper

-mendation

for

makes

meas-

the

same

other

yardstick to

companies

ca^eS°.ry they look ridiculously over p"ce^
„

New York EM. of Trade

Div. Elects Officers
Peter

Lynch, President of
Sulk a & Co., has been elected

Chairman of the New York Board

0£ Trade's Mercantile Section. Mr.
Lvnch succeeds Kenneth P. Stein—;..u

—*

Value

Per

.«

taxes reich, President
Other

t—u

♦

of Jacob Ruppert.

officers

re-elected

are:

Cronan, Vice-President

of Charles F. Noyes Co., Inc.; Mrs.

Dorothy R. Davega, Vice-PresiThe Liquidating Value Per Share
dent, The White Turkeys; Arthur
is
another term
which
I
think
Flynn, President, Art Flynn Asbcars
reconsideration. I feel that sociates;
Philip
Milner,
Vicethe viewpoint should be that of President,
Manufacturers
Trust
the common stockholder rather Co.; Patrick L. Ryan, Attorney at
than the considerations which go Law; and Isidor S. Schweitzer,
v
into w merger with another com- riCMiiciiij ivcitiicin Schweitzer &
a
President, Nathan ociivvcii^ci t*.
panyi Therefore I prefer the term Co., Inc., as Viee-Chairmen; James
Net Assets per share determined M. Irvine,
Vice-President^ The
by subtracting the excess of mar- Chase Manhattan Bank, as Treasket value of securities over cost urer; Arthur J. Bretnall, A. M.
,

from

the

Policyholder

Generally

speaking

Surplus.
this

will

Pullen & Co., Assistant Treasurer;
and Robert T. Walsh of the New

THE
UNEARNED PREMIUM bert, ' Vice-President,
Lambert
RESERVE is made to do double Bros. Jewelers, Inc., and James
duty by the analysts—first, the M. O'Brien, General Sales Men¬
year's increment is used to inflate ager, New York Telephone Co.,
the earnings picture and second, continue as honorary Chairmen of
the total Reserve is used to inflate

action

be taken.

anti-trust

Nevertheless, extending
legislation
to
cover

the unit.

the

liquidating
.^alue^per ^hare.
Furthermore, with
ing experience what it has been m

E. A. Britton

the^underwrit-

used

the record of

definition
let

America in

the

past 20 years has
on the nft
share and the divi-

dends paid have averaged 71%
-

the earnings
period.

That

over

anpft fc;

the past 20-year
like a much

seems

Opens

rniif

Fuf*pnp>

^S^GELES, Calif.—Eugeae
business

from

offices at 4811

Boulevard
name

of Eugene

under

A. Brit-

ton Co.

look at

of the outstand-

jng companies in this field. The
Company of North

a'sset value per

•

the firm

mind
one

orr these con-

averaged 3.89% earned
recom-

specific
-

the

direct
1

consideration of others and

through

than

Ures<

re.

of shares

number

insurance

most

Robert V.

workers

cern

Over Priced Shares

Applying this

the protection of the policyholders. A.

Phne. imposed from above is abprinciple should be of

* HAINES
casualty companies but which 136Goden Street,
f°H°wed by those "more conBelmont 73, Mass.
servatively "managed, and that is

solutely

This

t-,

terms

necessaiy.

high.

workers, who are not leading the recent years it seems to me quespush Tor wage increases in order tionable as to the value of the

mature

assets, and implies fire
too

.....

relieve
unemployment
through
increasing the purchasing power
of the organized and higher
paid

t:i

net
are

casualty stocks

nthri-c:Ts^nJ it
there-:^g^£ -danger- S- J? restrainr tbo.se who are setting earnings prospects
^ reskfnt fmposed Horn he pace In this rfegard it is simi,. tracts.
ab* Anv s^.hool t
knowJ lavto advocatinS the attempt to
Now
with my
t

consumer
items, such
as
gadgets and water skiis. Industry-wide collective bargaining is
choking our" potential economic
growth.
4

have

H seems unfair to
unemployment
among

cause

St.v-res^r-inThnH'ein^ifT'
F

luxury-

type

wage

of busincss*

nHH

one

would

tries

add

and

tion

in''

de¬

thereby
create
enough unemployment to discourage labor from asking for wage
increases.
However, this sugges-

tne- pie«ent

old

Contributor upbraids investment
analysts for making unearned
premium reserve do double duty in those fire and

nrmr.lnn

increases. One, by an
of the hiShest calibre, is to abolish

process

1 ^lin^s v\nicn cus-

nUHv

fi¬

have not afiiliated with the UMW
were

labor

the mechanization costs.

Many

—

EDITOR:

operating mines and also
of the closing down

marginal

not

nance

../7LirWfC

co-

form

past

employment cuts

the

Thv

well

new

sufficient

ro'-l£hly approximate the invested York Board of Trade, as Execucapital plus earned surplus, (ac- tive Secretary.
economist ciucd and undistributed earnings).
Mr. steinreich, Henry L. Lam-

involved in the'ereation of enterprises
,

inthe

still, remain competitive with fuel
oil and gas. Employment was cut
half

'" /vteni
exien

recommendations

THE

not

the

operated
with
management
to
increase productivity in order to
'finance the wage increases and

this

rntnc

9o„

'aTf^'Xe^XThe be^d ~2xSe

and"

made

unions

impression ot
general weltare.

voluntarv and ^operative

on
a
COrnpcLjuy
UctSIS
company basis WOUiu tend
would iCilCi
to give workers more opportunities" for reemployment
A
1%
wage c t resulting in a 3% increase
in employment, could be
restored and could help the prcsently unemployed; indeed.

the

economics.

that both, realized and unrealized
than

a
increase in hirings.
Industry-wide bargaining has re
duced this responsiveness, in "the
short-run at least.
short-run at least. However, a
reversion to collective
r^version
bargaining

-bur,d®n, busl".ess

That

Accordingly, I maintain tTiaTffie

crease

?
discourage real job-creating
'"Vestments.
be:Iteve that by

Although

Workers doubled

iesult

employments

help

new

Analysts Aie Chided ioi Inflating
Insurance Companies7 Earnings

Liquidating

mctnioiori

Coal Mining

Wefwht
rnthei-

■

Cites Example

+hi <L»n

vni

,,,

There

thf:'?nd

which woikers aie lined 01 le■leased in response to decreases.or

ex>

^hcnomc-rton1 fs

bituminous coal_indus
coal industry'■
y.

nrndnpf

fnr

costs to rise and investment

dk-

CQt,:nfyc

Iirj,p

course,

income^

.i,nrc

f/esti'ieted. Moreover, instead
^or all other factors
ff iyr?bl?™ oi in,"
L „LH as for the -sutiicicinv-inve^Jment, - they push
production as well
(or

reri

laws

discouragement of

businesses. It is not enough to have
the
few newcomers
in

ifreck"' 'iCe .a"nalysis in. > appraising the

attempt to
impose pleasant-sounding id.eolor
Sjes and reform's at a rate which

real \v,,rtes for workers'anc<

crease

plain

the

growth in

some

below-average firms

business.

its

management
intellectuals

may
be
the public about

pei-

economy. * Some

in-

the

squeeze
and

all

and

should encourage
wherever they
educate

clarify public thinking,
The principal detriments to' in-,
dUstry-wide bargaining are the

indus^

nntfrf it ^
pay dwidends to the common
fin_llv
hou+fuit*
r»nto«Hai
stockholders. Instead it is kept as
r„snnnliLl1p„
H p'nH ffn.
a Security Fluctuation Reserve for

way

against

bargaining

JSySJBUt <££ XZSJSetS&ZS: —
encroachment
priprior to
prevalence of indus-

vate

part ol the standard

The

therefore,
for
decide how to develop

and
not

of the reasons

public

an.

leisure

is,

harmful effects.
Thus,
finally,

pfn-

frnm

formation.

the

try-wide

other

all

except

enforced

living.

increase

livjng

list

one

counter-measures

increasing

rpXrm**

npt.

^om

theup jis lor or against
the stimulatiori^bf private capital

offset by disguised
unemployment,
in the form of a reduced work¬
week

/.flnlf

Many of The
rather deep into-human

Howeyer,

individual economic

business to

have

declin^ relative t^or^

*-g

blameless.

reasons go

restore

freedom.

greatest

with

il. f./'ic
service is

+lnfiAn„ 1TL

causes

complex of reasons
machines should be absorbed by whfch contribute to a lack of
opjob-creating investments./An in--timum employment. Virtually nocrease

political freedom and truly op¬
timum employment and
output to

These

and

compared

roinii

unemployment. There

whole

areva

the

fo'date Moreover

the sole

responsibility at hand of protecting the "market economy and talcing the initiative in helping to

assume

ilie
u
nfti in,? dangei sign ol.
less to belittle the nlmearnings of the insurance companjes?
(1) capital going abroad, (2) exThere is a mandatory regulation

for

case

have

capacity

PLlDllc

un-

increases, but we
leave the impres-

wage

communications

the

...

rules.

Reasons

the

media and encourage intellectuals
who
believe
in
economic
and

Other

excessive

"bottom-

r e a s o n

Unemployment

plants
equipment
long. • One

ing-out" of the technological imthat

firms!

arp

farmers

position

result

b? economists of high Editor Commercial and Financial closer resemblance to the type of
rePute taking a defeatist's position
Chronicle.
comparisons we are familiar
\pth
£p.rding the rpstriftinnR tnhand.
Problem at
Would you add to the reported
That thprp
£e industrial classifications
Furthermore,
caDital
ffnins
That.there al'e restrictions, to eco- earnings per share of an V.
indus- .^thermore, capital gains and
and
n?mi.c growth is generally recog- trial stock the expected profit
mzed* However, increasing pur- (without allowance for Federal Jec^ssary +capiw g?.inf AXfr<%.n?t
to substantiate the dividiasil^ Powcr^ through wide- }axes) on they£aris
sPre^ waSe increases does not the backlog? Isn't that the prin- of North America,
constitute a solution to the growth ciple used by the investment serv-

would

disengaged from their highly

reflec-

doles*

natural

should

ness

partial
as

thinking Busi-*
employ more and

formed

and workers in railroads could be

continue for long.

cannot

ro-

agricultural" subsidies;

cover

iob*-m-e-

miner?

proportions

least-

"Twral

With

ZJTwt continue

cost-price squeeze—and

of'living.

cut

labor force rather than

expansion

tion

the

investment!
the

iih*

the

to -be

cost-reducing measure. Cost
reduction by contraction of the

company

incrohsi•rease

atinc" investments

would

community is in ,the most

,p;wv%£.

....

In such cases, indirect

support labor considered

most
as

the

cost

prices

neces-

andretortionHowever

mosf imnbrtant is the

d'id not pciiuit the full

pass-through

industries

coordinated

their.-Wnine

competitive positions vis-a-visthe
consumers

other

tend

wage

process
new-inh-rrealin« invedmont^

squeeze

of steel, where

users

wages

general

the

other

firms

Naturally, this shift of released

the
-

increases

productive, engagements,

pro-

of the principal steel plants,

case

industries

case

business

most part neutral or
labor and government
of a 20-year lag in

going to
margin,
These firms are already squeezed
b^ having to pay uniform wages
and cannot afford the same wage

whole

effects of industry-wide
It appears that the

bargaining.

LETTER TO

in prices
firms
at

squeeze

Nevertheless, progcountry

s up
gume
general increase in

even though resulting in

and

mize the

do to mini-

can

than buy parts -from out--ariizatibn: could/-not
be avoided,
suppliers.
This has forced It can be considered a reflection
vvorker?1, iivthese suppliniycOmpa-X'of: .technological progress in the
nics

side

keen

understand

foreign trade:

of business

the

educa-

unions would help. Moreperhaps there is much that

appreciate/ the- • impact. of- excess is ironic incteed that the nonmanwage increases on firms, indus- agement intellectuals are for
the
tries* an(f the economy—including

maligna 1 mines going out
for having to pay in-

assembly plants decided to lessen

were

ti°naIlevel

investments
are,
therefore, the reasons for unem-.
ployment in the coal areas.
In
other words, except for the situa-

wage agreements

the

labor
over,

unions themselves

With Courts & Co.
(Special to The Financial Chronicle)

ATLANTA, Ga.—Louis W. Mc-

Lennan
Courts &

now

Co.,

affiliated

with

Marietta Street,

N. W., members of the New York

Stock Exchange.

The Commercial and Financial Chronicle
28

Thursday, July 2, 1959

(28)

we do not know whether
shall succeed to develop at the

edge, but

Continued jrom page

Savings Bank Head Praises Federal
Housing Administration

the leaders for this
generation. The only country
which has been able to produce a
time,

same

hew

What We Stand to

generation

Science

Unless We Support

leaders

On all counts/

States;

future

field is the United

our

including

cost to taxpayers, banker hails the

FHA which is about to celebrate

therefore looking forward to
profit from your educational ex¬
perience, and shall not hesitate to

are,

Johnson

25th anniversary.

its

praises this example of government

Mr.

and business

cooperation permitting extensive home ownership with monthly

It is said that even
payments equivalent to rentp
improvement in seasonal adopt the methods which have
been so successful in y/)ur coun¬
weather forecasting alone would
The Federal Housing Adminis- per month pe*- $1,000
of'mortgage
try.
save the petroleum industry $100
tration
"has
been
the
greatest insurance which the FHA receives
quickly has disadvantages, but \ve
Whatever the „difficulties with
million yearly not £o mention the
boon. ever
conceived Jo from the borrower, the FHA has
have also noticed that this method
the Russian education system, its single
savings for agriculture, transpor¬
benefit home buyers, the building operated at a profit throughout its
lets the entire country benefit—
magnitude already shows what
tation and other business.
not just a segment.
25 years.
Since 1940, the agency
bets they lay on science. industry, and
Our occanographic endeavors -heavy
the. nation's
has been entirely self-supporting
Without going into more, "detail,
are small.
The Soviet Union now
Rapid Translation of Articles
and has paid all expenses out of
economy," it
it should be obvious that our sci¬
has. 22
superbly fitted oeeanor
Now, by no means is all of this
was
declared
ence and technology is our biggest
earnings. Five years ago. the FHA
rapid technical progress native to graphic vessels, while we use a asset for the future—and why we
t oday
b y
repaid -to the U. S. Treasury the
half-dozen
old yachts.
And the
Russian science. The Soviets are
G cor g e C.
must consider our scientific effort
$65,497,000 advanced 4o set up its
Russians, according to the New
soaking up all they, can of. the
J c h n s o 11,
insurance" program, plus $20,350,as a
whole.,
"
:
York
"Times," have a complete
world's scientific produce.
Even
Chairman of
000 interest.
Khrushchev pocketed everything oceanographic map of our Pacific Calls for National Support-Policy
the
board
of
"T e
Dime
Savings Bank of
Coast.
-.•.•••
•
he could lay hands on in the U. S.
T he
Dime
In this direction many people
Brooklyn is pfoud of Jhe fact that
Our Geological Survey is meaexhibit in Moscow. He walked off
are
suggesting -that we establish Savings Bank
we have supported the, FHA pro¬
The Soviets are
the other day, saying with a smile, gerly supported.
of Brooklyn,
a
Department
ofv^Science and
gram from its very inception.
We
"Little, by little we steal!"
In a said to be coring their continental Technology. Some people feel that w h i c- h origare
strata at the rate of 200 deep holes
proud of the fact that we
more serious way they are trying
i n a t e s a n d
this is the only way we can have
made the first FHA-insured loan
each
year.
A three-dimensional
to skim the cream from the whole
holds, -.m o r e
a
national policy for the support
ever granted to an operative home
world's R & D efforts, and they're map of a continent would mean
h o m e
rnortof science in our .many govern¬
George C. Johnson
builder on Long Island.
that its resources could be assessed
We are
doing this thoroughly and with
ment departments, in
education, gages t h a n
proud of the fact that we have
dispatch. Their central technical reasonably quickly.
in nonprofit institutions, and in¬
a n y
o the r
In these and other areas, largemade 25,601
FHA-insured home
information service employs over
scale, long-term planning is dustry. Not that such a depart¬ savings bank in the world.
mortgages
totaling
$229,330,333.
2,000 full-time people and 20,000
ment would be the sole coordi¬
Mr.
Johnson's
comment
needed with the kind of support
Yas Relatively few of these home buy¬
part-time workers, who abstract
nator of scientific activity in the
made as the FHA prepared to ob~ ers would have been able to emdemonstrated by the I.G.Y. Globa"
inorganic chemicals..
We have noticed that the whole¬
sale adoption of new methods too
ol'

number

million
a

a year.

10%

translate technical articles
the outside world. The Ex-

and

lrom

after

this

Now

publication.

initial

The best of our own di¬

efficient.

services— the Chemical Ab¬

verse

instance — has only
1,700 part-time workers, and takes
a year to prepare foreign articles
for

stracts,

for

of science to insure ade¬

program

well-defined

one

area

obviously must in¬
tegrate our activities, and think
as a nation instead of as separate
we

quate support for all areas
search.
In short, we must

What

Rower sources are being
thoroughly investigated by the
Soviets.
They are working on
solar power; producing electricity
from geothermic energy; and in¬
vestigating'atomic power and un¬

areas?

chemical

out fundamental or new

squeeze

sources.

of research under the pres¬

areas

other

the

some,

are

of re¬

think
of research and development as a
national
matter.
We must not

technical groups.

sure

space

needs.

immediate

Meetings

nation's

our

top

scientists

and administrators, fol¬

lowed by

public discussion, should

shocked by the next startling

ad¬

claims

push

wait

nor

took the first sputnik

vance^, It

evaluation of

into an

science.

ination's

our

Our

first

positive step was to appoint
Killian

Dr.

Science Advisor to the

President, and to install the Sci¬

Advisory Committee. Sput¬
us into restoring gov¬

ence

nik

jolted

ernment research funds which had

been cut during postwar economy

We appropriated more

measures.

for

money

Foundation.

our
We

National Science
passed a $1

bill,

student-loan

lion

and,

bil¬
thus

recognized that gifted youngsters
were
an
asset to capitalize.
In¬
deed,, we have recently seen sci¬
ence gain full stature for the first
time in government deliberations.
We have recognized that our fu¬
ture
depends
upon
intellectual
leadership.
—;

This

research.

sic

all

the

good, for science today is a big,
complex venture, and our full

Basic Research

now

are

in which we
Being human,
have held
support from many sci¬

see many areas

comfortable,

back

our

entific

obvious

ise

In
of

which did not prom¬

areas

and

prompt rewards.
article in the March 27 issue

Science, L. V. Berkner lists
examples. First, we have not
hastening the avenue of re¬

some

been

h i

would

weather modification,

achieved

would have

and

lead

although, if

a^large scale this
deep social, military,

economic

consequences.

must

enhance

Anniversary

ownership had

home

not been for the FHA
in

Cornerstone

Building

Home

that lias cost taxpayers abso¬

cies

department could do all thaL-people claim, I am not sure. Before
a bill goes to Congress, alj/of the

that ' the FHA is
few Federal agen¬

of the very

one

sion

on- bark
.

Pointing out

"The home

nothing, and, in fact, has
a profit," the banker a

lutely

building industry is

American

in the

cornerstone

operated at

economy.
It is said that one out
of
every
six persons gainfully
and eons will be discussed.
"Due
to
the
philosophy and
It is quite plain that we must have
employed depends upon that inprinciples established by the FHA,
a
national policy supporting sci¬
nealdv'Two-thirds" of the'famines duslry for his livelihood, either
nccuiy
iwuumuh UJ
int. lamuics
Tn inm
ence.
This is very clear.
It is,
in America today either own their
or cornerstone in home
FHA
is
a
going to take extensive planning,
homes free and clear or have sub- FHA
,s a e°™erstone in home
and funds. Some people will claim
building, and has been for a quar¬
stantial equities in the homes in
that we cannot afford such a sci¬
ter
of
a
century. This agency
which they live.
This has been must
ence
never be allowed to become
program.
However, such a
accomplished through low down a
program is our defense. We must
political football, nor allowed to
be able to afford it!
And not only payments, low interest rates and be shoved aside into some minor
self-amortizing mort...
,,
„
,
,
_
within our own boundaries. .The long-term

stated:

pros

adequate laboratory for such re¬
search would require about $15
million a year, yet our meteoro¬

indirecUy. In turn, the

ed
oped

lose

because we

liberties

harsh

.have

men

challenge,
is

world;

and

thrown

the

edge, for this is the first require¬

en-

concept

new

haye helped make ome owne4rshiP Possible for millions more
.

American iarnmes.

Form Lakeland Securities
Sizable

Made

Home

Buying

(Special to The,Fjnancial Chronicle)

Possible

the

establishment—of—the

"Until

brjunr^mMta purchase

FHA

answering.

Phila. Sees. Ass'n to Hear

home

thej

for

PHILADELPHIA, Pa.—William

extremely difficult

average

family.

necessary

was

save

was

-Usually,

scrimp

and

l'ormany years to accumulate

MADISON, Wis.—Lakeland Se-

X?CA JgE «!!£!!, J«£hd
Wlth offlces at lo0° Beltllne Hlsh"
way
to engage in a securities
business.

Officers

are

Eugene

Wulff, President; and Charles H,
Vice-President
and

the high down payments of 35 to
Mr.
Wulff
has
been
Chairman and Joseph E. 50% until then
required.
When with
beciela y*
Phillips Securities, Inc.
President of Philadel¬ this
money was finally accumu¬
breed great thinking. . . . Since
phia
Life Insurance
Company,
lated, a three- or five-year straight
great ideas are the treasure of no
.will
be
guest
speakers
at
a
New Empire Investors
mortgage was written at high in¬
one
nation, we must admit our¬
luncheon meeting of the Phila¬
(Special to Tub Financial Chronicle)
terest rates.
When the mortgage
selves to the benefits of interna¬
delphia Securities Association on came due at the end of that short
tional exchange.
LOS ANGELES, Calif. — New
In research, as
Tuesday, July 14 at the Warwick
in trade, we must integrate the
term, few home buyers were able Empire Investors Corporation has
Hotel.
to pay it off and the mortgage had
free world. •
been formed with offices at 3100
Henry McK. Ingersoll of Smith, to be
renewed, for which large West Jefferson Blvd. to engage in
We must find the means to util¬
Barney & Co. is in charge of fees were
charged.
a
securities business. Officers are
ize our scientific personnel. High
arrangements.
"The FHA changedall this. After Edwin
R.
Colligan,
President;
competence is rare, and we cannot
a down payment of as little as 3%,
Rose
M.
Colligan,
Secretaryafford to waste it. We cannot af¬
an
FHA-insured
mortgage
is Treasurer;
ford to waste the talents of our
and
Mark Kiguchi,
Form Stock Trading Corp.
written for a term as long as 30 Assistant Secretary.
next
generations.
Only a small
(Special to The Financial Chronicle)
years.
Equal monthly payments
percentage of our college gradu¬
LOS
ANGELES, Calif. — Ad¬ on principal, interest, taxes and
ates work for doctorates in natu¬
Reisman, Mannelly Opens
vance
Chartists
Stock
Trading insurance are made by the home
ral science. Despite the increasing
(Special to The Financial Chronicle)
emphasis on science, the ratio of Corp. has been formed with offices buyer. In this way, his monthly
at 228 West Fourth Street to en¬
LOS ANGELES, Calif. —Reis¬
doctorates in natural science to
payments are no more than rent
of progress.
Only by the
cross-fertilization of brains do we

doctorates

in other fields has not

now

about

are

Soviet
of

are

know that there

universities

the

Union, and half of these
high level, and equipped

About

170,000

and

are

students

about

gage
ficers

with modern research laboratories.

rolled,

Elliott,

Boettner,

are

en¬

30,000 of them

natural scientists.

This is im¬

securities business.

are

Of¬

Theodore

Edward"

are

building

up an organ¬

ized

educational

man,

Mannelly, Gordon Securities
has been formed with of-

Moore, Vice-President; and Anne

equity in his property. At the end
of the mortgage term, he owns his

Abrahms, Secretary.

home free and clear without hard-

fices at 453 South Spring Street
to engage in a securities business,
Officers
are
Samuel Reisman,

ship.

President;

Abrahms,

Robert

"It

Dempsey-Tegeler Branch
SAN

FRANCISCO,

the

Calif.—

Dempsey-Tegeler & Co. has opened
a branch office in the Rugs Build¬

under

"We

quarters,
the

Corp.

the management
it is not by imitating the, massive John C. Lackey, Jr.
Soviet system. Indeed, they have
told us as much. A leading Rus¬

chemis¬
try, gave this comment to a visit¬
ing American professor. He said:

living

comparable

and every month he increases

pressive,but if we need to im¬
prove
our educational
programs ing

sian scientist, in polymer

for

penheimer
branch

office

Co.
in

has
the

—

FHA

remembered

does

not

lend

that

money.

simply

Milton ,M. Gordon,
Vice-President; and R. N. Nickels,
Secretary.

insures the mortgage
.
',_
*
lender against loss in the^transac- .
tion.
Because of this insurance, -SHERMAN. Tex. —Shumate &
it is possible for lenders to write
company has opened a branch
mortgages with lower down pay- office at
900
South Fairbanks
ments and for longer terms than street
under
the
direction
of
__

New Shumate Branch

possible under most State banking

Oppenheimer Branch

FLEISCHMANNS, N. Y.

must

-jhomas 3

Miller

laws.

Op¬

opened

Takanassee

Now Practical Investors

vFirst-Rate Partnership
"The

FHA

first-rate

ex¬

ample of government and business
system to train
Hotel & Country Club under the
a large number of youngsters who
working in partnership with abso¬
represent a respectable level of management of Mrs. Edith Narzi- lutely no cost to taxpayers. Be¬
logical research goes along on $3 -scientific initiative and knowl¬ senfeld and David Narzisenfeld.
cause of the approximate 40 cents

....

families.

States

United

tievel- PoslUon .in the Federal Govern¬
uc ™ent.
I
its another hope that by the end of
quarter-century, the FHA

his

has

of mortgage
financing and
made home
ownership possible for millions of

always
been a hazardous \$orld, beset by
the perils of harsh nature, and the
greater peril? of harsh men." Those
hazardous

tirely

will be
abandon them. It is a

our

were

ph a
FHA as nnp nf
one of
policies.
It was an

cardinal

has said: "If

As Vannevar Bush
we

which

all of
th*
the

gages,

productive strength of the entire
must be integrated.

free world

the

of ideas and knowl¬

ment

Right

forward steps, but we

have lacked vision.

and

strument.

free exchange

changed since 1932!

Decries Failure to Appreciate
These

25th

i]e. T.

letting of contracts, and deci¬
making.
Whether a science

for

its

serve

information>

scientific

for

source

excite wider understanding of ba¬

weather con¬
are
our
contestants. support of it will require a spirit
of cooperation.
are talking of placing
During World War II, we all
a communications satellite in orbit
.cooperated with the best we had,
to be used as a fixed TV transmit¬
concentrating on the goal pf vic¬
ter for the entire Soviet Union.
tory.
Now we-must learn to co¬
We should neither over-estimate
operate again. Research is our in¬
and in

technology
trol,
they
They, too,

their

government—but it would give us
on
agency to serve as a central

which

usual

when

only

us.

Here

can
be understock
studied on a global
scale.
Many of the projects we
need to undertake require funds
and organizational machinery vve
do not now have.
To acquire it,
we must
evaluate the impact of
science-on the government in all
aspects—social, military, and eco¬
nomic— and assess the national

meteorology

hese articles ready lor Russian
C>ress Information Service has

scientist's- about 4-6 months

Systematic
106
Fort
Ne\y York
City, has been changed to Prac¬
The

firm

Investors

Washington
tical

name

Company,

Avenue,

Tr\vf»<;tr»rc

Pnmnrmv

Volume

190

Number 5860

The Commercial and Financial
Chronicle

(29)

EBSCO Inv. Service

Securities Salesman's Corner

Formed in Birmingham
BIRMINGHAM,

By JOHN BUTTON

SylviaSPof ter, widely syndicated
writer, last week wrote

in her column which

was

"Reforms

Stock

Needed

ket"

that, J we
brokerage firms

the

Mar¬

"Many
obey the
rules a lot better than they do."
Also, "the various policing agen¬
cies aren't stopping stock market
quote:

encourage

flow.

capital

Add

gains

tax

the scrambled tax muddle

and

have "locked in" stock selling

-fifty times earnings. Whether

not

sell

of these stocks should

some

fifteen

times earnings I
know, but if someday this
happens it also won't bring on
there is widespread disagreement chaos in this
country, and Mr. and
throughout the investment busi¬ Mrs. Little Investor will probably

swindles." I

with

ness

not

of the opinion that

such

generalized

continue to hold

and

such

stocks

and

sweeping statements. In this era hope that some day they will go
of mass communication
through back up again (as most of these
the press and radio, a popular
people have done in the past).

writer
nical

such

serious

subjects

and

the

tech¬

extent

overspeeulation and rule violation

There is overspeeulation in this
country but it is in Washington

by the securities business, can
adversely
brainwash
a
lot
of
people who think emotionally and
who reason with their adjectives.
We

Cannot Afford

Stock Market

What

Collapse

(1) We continue to spend

war

stock

(2)
tic

(italics

costs which

type of writing, to say the
least, leaves something to be de¬

States

market

come

there

and

isn't

Wall Street

during

for

don't

American
the

equity

capital.

Hence

stocks.

penalize

the

seller

longer

The current level of stock

only

the' mirror

with

contend

people
them can

some

get

burned; many of
afford it, some cannot. But try and
stop some of these people from
buying one of these long shot
trips to the moon when greed and
emotion

take

judgment they

what

over

possess.

little

Attempt to

Widely syndicated writers on
important subjects as invest¬
ments, economics, federal finance,
and the business cycle have an ob¬
ligation to the public to refrain
from
overemphasizing
the
less
important aspects of the situation
and of placing the bullets where
such

the target lies'.

fling. After a long
stretch in this stock selling busi¬
ness I can give you a bit of advice
if you are selling investment
securities tc people who know the
meaning of the word, and who
live
sensibly, don't waste your
—

time

those

who

ride", something
ten

for

one.

want

"free

for nothing,
don't

And

worry

about the economy of the country
if and when these people get their

tails

twisted,

Overspeeulation—Where?

can

acquire for which

pay

must

you

cash. Hundreds of stocks

are

still

selling below their 1946 and 1956
highs. Some stocks are selling at
historically high ratios of current
earnings to price but they are in
the

great

growth

fields

current

porate

tax

52%

income

PETERSBURG, Fla.—Hens¬
berry-Malloy, Inc. is conducting
securities

the

tax

attractiveness

rates reduce

further

business

first

Officers

are

President;

from

offices

Federal

Building.
Robert E. Hensberry.
Bernard
C.
Malloy,

Vice-President.

Both

formerly with
Company, Inc.

Size 6f Borrowing Only

Treasury in its first financing in the new fiscal year,
which begjan July 1, decided to borrow $5 billion; consisting of $3
billion of 253-day tax anticipation bills which will be dated July
8th and will mature March 22, 1960.
The $2 billion of one-year
Treasury bills will be dated July 15 of this year and will come due
July 15, 1960. Both of these offerings will be payable through the "
Treasury tax and loan account in commercial banks.
,

It had been veiy
new

Market Sets Own Rate
By continuing to make

use of discount obligations the Treasury
letting the buyers of these securities or the open market set the
borrowing rate. This takes some of the interest rate burden away
from the Treasury. In addition, when an issue is sold at a discount

n&ar-term classification as these two are, they
likely to show a price decline for the time they are out¬
standing since they must move up from the less, than 100 price
originally paid for them to 100 the maturity pricb. The passage
of time gradually raises the discount price up to par, and no
price
losses will have to be reported during the life of the issue by the
buyers of discount bills, whereas an issue with a similar maturity
(say one year) and a set coupon rate that would not be. in line
with existing or future money market conditions, could still sell
;
at a" discount from 100, if it were offered at par.
not

the

Pacific

Coast

It is evident that the

Elkins,
City
National Bank of Houston, Texas,
as a director of Eastern Air
Lines,
has been announced by Captain
E. V. Rickenbacker, Chairman of
the

First

the Board.

R. C.

borrowings

Treasury

Valpreda Opens

August,

CERRITO, Calif.—Rex
Valpreda has opened offices
305
in

Cerrito

Plaza,

111.

Associates

Sampliner Opens

with

offices

—

has

curities
is

business.

HILLS,

Calif.—

ing

Sampliner is conduct¬

offices
Drive.

securities
at

211

business

North

Mich¬

Robert

se¬

Nuss

South

Beverly

the

new

money

market

sometime

in
'

Possible Debt Extension
the

Treasury has some $14

accounjs. It is the job

of the

monetary authorities to keep as much as possible of this
maturing debt with the ultimate investor, and this may be an.
opportunity for the Treasury to attempt to extend the maturity of
.the Federal debt by offering attractive yielding long-term Govern¬
ment obligations to the owners of the issues that will be coming
due.

,\..

The

Atkinson Branch
SALEM, Ore.— Atkinson and
Company has opened a branch
Court

541

management

E. R.

Street

■

under

Robert

Davenport Branch

RIVER, Mass. — E. R.
Davenport & Co. has opened a
office

branch
Road

controversy between the Congress and the Administration
over the question as to whether or not the interest rate level for
Government securities with a maturity of "more than five years
should be raised or eliminated entirely should be settled one way
or another by that time so that longer-tefni issues at a competitive
rate could be offered by the Treasury in its coming refunding?.

under

New

at 373

the

in its future operations,
raising ventures or for refunding
purposes will be in a position, through the direct changes or im¬
plied procedural modifications in the interest rate level for bonds,
be

may

that

the

Government,

whether they be for new money

FALL

get

of the debt

on a

longer-term basis.

Boston

management

Clifford L. McFarland.

Out o( the Mouth of the

Davenport Opens Branch

Nationalist

HAVEN, Conn. — E. R.
& Co. has opened a

office

under 'the

250

St.

Clar¬

*
>

Church

management

F. Andrews.

ence

Lester, Ryons Office
OCEANSIDE,

Calif.

—

Ryons & Co. has opened
at

607

Third

Street

Lester,
branch
under

Ellis;

Jaffe, Leverton Partner
Leverton, Reiner Co., 2
Broadway, New York City, mem¬
Jaffe,
of

change,

thg New York Stock Ex¬
on
July 15 will admit)

Donald H. Peters,

4'Here

member of the

Exchange, to partnership.

Kremlin, too!

(in the supposition that the Kremlin is dis¬

turbed about the

tion)

■

bers

from

back in

Reserve Banks and Government investment

formed

principal of the firm.

billion of debt coming due, of which about $5.7 billion is held by
the public with the balance of it in >lhe hands of the Federal

Reeves, Nuss
been

919

will

new

with another fairly sizable figure to be. raised at that

CSpecial to The Financial Chronicle)

Jerome M.

seasonable deficit in

to be expected in the first half cf the

are

Also, between now and August

igan Avenue'to engage

office

BEVERLY

run a

engage

Reeves, Nuss Formed
CHICAGO,
&

time.

securities business.

the direction of James P.

Jerome

Treasury will

the June to December period because income tax payments are at
the low points in this period. Therefore a modest amount of new
money

branch

fiscal year, with some money market specialists. of the opinions
that needs will run as high as $10 billion.
This means that the

Campeau

Named Director
of

the

Corporation.

NEW

President

generally expected that the Treasury in its

money

community has been looking for was about the only
surprise, however, which the Treasury had for the money market
in its first new operation of the 1959-1960 fiscal
period.

Davenport

Jr.,

Surprise

The

were

cor¬

earnings and the high in¬

dividual
the

laws

Exchange. Mr. Quinn was
formerly
San
Francisco
repre¬

ST.

auto¬

mation, chemistry, drugs, elec¬
tronics, and applied physics. The

as¬

Hensberry-Malloy Opens

The election of James A.

about the only property you

Quinn has become

with Wilson, Johnson &
Higgins, 300 Montgomery Street,

the

they always will.

Where is the overspeeulation in
the
stock
market?
Stocks
are

FRANCISCO, Calif.—
J.

Atkinson.

and is within the

sociated

office-at

sell this type of individual a sound
investment program, when they
want to have

Exchange, made

re¬

market,

the

(Special to The Financial Chronicle)

prices

which

depressions (except flects these unsound governmenfor themselves). We've had pro-' tal policies.
motional stocks

some kind of a meeting of the minds between
Congress and the Administration has been reached.
The sorqewhat improved tone in the
capital market seems to
be attributed to the lull in offerings of corporate bonds.
However,
not too much of an uptrend is looked for 'as
long the Treasury is
a potential'seller of
long-term bonds.
'
*
/'-V';

the

are

create

in every bull

Stock

and

supply of stocks.
is

will be done until

sentative for New York Hanseatie

less

twenty-five percent if held for
term. This freezes the

Lyon

Stock

stocks
upon which
a
profit is
as regular income sub¬
ject to tax if the holding period

uranium

pennies

Exchange

It is evident

long-term obli¬
gations unless it meets the existing papital market conditions. This
means a yield of much more than
4y4%, and the only way in which
this can be done now, is to offer a "discount bond with the
4^%
coupon at a price low enough to attract buyers. It is not likely this

offering.

members

uranium stock

few

Stock

SAN

than

much effect upon the financial markets as a whole.
that the Treasury is not going to be able to issue

stock

Co., Inc., members of the New

Hubert

craze

announced

offering

Wilson, Johnson Co.

(4)

Counter market.

ventures

its

the

buy

Inc.

that

of common
oversubscribed.
Ross,

was

do about 'realized,

can

Equities,

June

200,000

money

the financial

Bond

borrow

market had the Treasury's new money raising
operation pretty well tabbed and, since the Government had only
one choice, it had
to be short-dated issue, hence there was not

market

Equities, Inc.
Offering Oversold
on

Governments

operation would not only stay in the money
short-term sector, but that the borrowings would
not be in excess of $4.5 billion. The additional
money above what

Land
Land

By JOHN T. CHIPPENDALE, JE.
The

July

corporations up to
interest at 5% only
borrower
(in
52%

is under six months; and as much

who

said
shares having been
Singer, Bean & Mackie, Inc.
underwrote the offering.

sold.

long as trading is conducted
according to the rules of the ex¬
changes, or the organized, Overpeople

the

Hubert J. Quinn With

sell

The

We tax

bonds

big government, financial colum¬
nists,

and

Gold¬

par),of Century Chemi¬
Corp. has been completed, all

cal

cheaper to

bull
thing

Co.

Co. and

stock (no

dends must be paid after the 52%
tax is charged against net. It is

economy.

every

Century Chemical Corp.
Offering Completed

reflected

Investment

Marx

Sachs & Co.

man,

business expense deductible be¬
fore the lax on net profit. Divi¬

We've had these stock operations
before and we will have them

again—they

with

York

it's

its

Jemison

bracket) 214% because interest is

going to
move from two bucks to
20, this
isn't going to wreck and ruin the
United

was

costs

dog

and start to play follow the leader
because
Joe
Schmo
who
owns
says

Treasurer; Thomas W, Herren, and
Alco L. Lee,
Vice-President; Marjorie 111'. Dabbs, Secretary.
Mr.
Jemison was formerly an officer

monopolis¬

and

(3)
52%.

sired. Where is the lunatic specu¬
If
a
small
minority of

must

Vice-President

higher piices for everything (and
why not stocks?).

lation?

500,000

continually

encourage
unions
to

John S.

Executive

in good
finance the

seek
higher and higher wages,
thereby increasing production

This

labor

business.

President;

taxes

and bad. We
deficit through the sale of shortterm bonds to the banks.

manipulators."

gamblers pick up some cat

years

mipe) speculation and declare allout

collect

Jemison, Jr.,
Elton B. Stephens,
Paul
H.
Augspach,

of the

than

are

Street

securities

Chafrman;

since 1932. Let's review
part
record:

ever

lapse might do to psychology, to
spending, Jo busihess in general."
And then she says, "Awareness of
this leads to a second implication
must curb lunatic

going on in the stock
only a reflection of the

unsound fiscal policies which have
been pursued by our lawmakers

Another

to exaggerate what a market col¬

market is

The lady is right when she says,
"Today, with millions of ordinary
folk involved, it would be hard

that

than it is in Wall Street.

Officers

13th

The
offering on
June
26
of
100,000 shares of class A common

There Is Overspeeulation

North

engage,

iniquitous

you

could

and

nue

equity financing and
reinvestment of cash

headed

Reporter

Investment Services, Inc. has been
formed with offices at First Ave¬

Hitting the Right Target
financial

Our

Ala. —EBSCO

you

have

rapid growth of Chinese-popula¬
example of typical bourgeois

psychology. Why should the quick growth of popu¬
lation in brotherly People's China or any other
country frighten us? If all peoples will direct their
creative efforts, their minds and their possibilities
so as to increase the output of material goods and
cultural yalues, then the needs of the peoples of the
entire world will be satisfied abundantly and the
so-called over-population problem on our planet
will

seem

absurd."—Nikita S. Khrushchev.

If only the Kremlin's acts accorded with such a
disavowal of nationalism!
1

i
$
*3

The Commercial and Financial Chronicle

(30)
'

nnno

IsOnnnuea

Thursday July 2, 1959

.......

•

that

want

they

change—we would

•....

what

JTOw JlTSi paye

would have to

find that they

run

the country

done—and

plenty

oppor-

tunity and challenge for all. The

replacement basis.

on a

f|1|tlMrfC Ia I Ainft
IIUIUP IV VVlll^

l)XlaP6

don't really want to4move away ...Maybe we're seeing another ex- way to get it done is to rely on
from private enterprise at all. We ample of the surprising tendency the same free and flexible ec<^would probably find out that what of our poeple to sell the American riomic system that has brought ps
they

want

not

really

less

short.

economy

But

hard

it's

to where we are today.

to"

And,one of

thoughtful sell

Being

ap economy short that.is ac- the best ways for business maninduleineinanorav of
attack is being directed our Americans they know, like the. compllshing as much as ours is agement to help keep that system
Of brutal self-evaluation
We have way.
,
rest of us,, that our system is right now. We are devoting .$45 free and flexible is to push for
been doine a lot of soul searching
geared to growth. They know— billion a year to defense, another growth all across the wide front
about
our
performance
in
iust
Spartan Life Advocates
we all know—that we stand the $50 billion to the other needs of of the private economy. Growth
-lhnnf
nhasp
national
The attack comes in the form bestv chance of solving most of 'Federal, state and- local govern- means more jobs, racre opporturiaDOUl puprv pildse of our UdUUIlcU
LVtiy
ox OUI
close to two

Ameri- brand

vears now

new

and very subtle kind anything.

„

;—4.

nenklAme

««««/-.,nir.

in.

^!li

.....

4SW,

broader

stronger

ices—.which mean new jobs and
opportunities. But the talk about
sacrifice and the simple iife is
widespread. And it could easily
lead to a type of thinking that
against us. But some of our cri- would fundamentally change what
tics say that while this has been is still a relatively free and open
going on we have been preoccu- business system.
Pied with designing and provid„
.. fll.„uth
advertising and merchandisotresses ooai 01 uiovvm
ing consumer goods and services
One way to fight this potential

by Soviet Russia and her friends,
maior share of attention. I might Russia has found a way to con«,av; incidentally that we in the centrate economic effort in those
automobile business have not been parts of her economy that will do
neelected We have been attacked her the most .good in the cold war

aeement has naturally come in for
a

variety'6f

for

see

which I

reasons

particular advantage in

re-

peating at this time
Now this mood of self-criticism
To the extent

has "had its points.
that

Americans

romnlanont
ing

needed

At the

had

shak-

some

least

verv

become
it

proves

that have little to do with defeat-, menace to the free market econing Russia in the cold war. They 'omy is to make an, all-out often-

in favor of growth.
Right
the country is in the throes
And they say it "is time to divert of another "great debate" — this
a large part of the country's eco- time on the subject of growth,
nomic energies away from the Some people are saying that if we
consumer
area
and into areas grow too last —faster, say, than
which—according to this school of 2% or 3% a year—we won't be
"
'
" 1 '
"
™

our-free democratic tradition say we have persuaded too many- sive
still very- much alive and in people to live too high on the hog. now

that
is

good health. But
can

self-criticism

carry

it
to

begins

point where

the

to
sap

possible to
far. You

too

vour

confidence

and where it begins to slow down
your

In
come

forward motion.
»
my
opinion the time has
for a change of mood.
The

time has

to switch from the

come

minor key and to find some
words and more attractive

...

Soviet .Russia. Still others split
give up the frills-^and, in effect, the difference, coming up with
in all walks of life.
But here to- we should live more like Spar- pinpoint figures like 4.2% a year,
day we are talking more espe- tans.
And of course there is the school
cially about business management.
This argument is coming from .that says damn,the torpedoes, let's
And I submit that with the battles many directions. And it is being have lots of growth by haying lots
we in management have ahead of
expressed by a number of people of government spending.
'
us
we're going to need a new in the public eye. One of them,
I suggest that business managemood of confidence.
We need a in a cpnfmencement address last ment cannot appropriately become
renewed
faith
in
our
role
in June, said this: "We shall have to involved in this debate about how
American Tife
and we need to face the distasteful fact that there much and at what rate the country
communicate that faith to others, is something more-important than ought to grow. It is our responsicomfortable family life, a split- bility to keep the pressure for
Battles That Lie Ahead
level ranch house, Social Security growth strong and steady.
We
What are those battles that lie and three cars in the garage."
can't afford to think in terms of
ahead? First" there is the usual
All of you have read or heard limits or ceilings on growth.
As
competitive struggle to get; our statements in this vein—that we managers competing with other
to sing

That goes for Americans

costs down and

our

share of

mar-

should buy less, spend less,

get

managers it is our job to research

These statements and develop new products, to
have come from important and re- search nut new markets at home
and* energy.
Now something new speeded people in all walks of life arid
abroad, to invest < in new
has been added to the form of Eu- —from
.newspaper
columnists, plants
and
ever-more-efficient
ropean competition that's getting ministers of the gospel, members machinery and processes to help
tougher everyday. But in addition of Congress, and from very high increase productivity — and in
to fighting ofur competitive battles places in the government.
short to keep costs and prices low
ket up; As in the past, that will
continue to take most oi our time

along with less.

we're going to have other work to
do. More specifically, we're going
to

have

our

hands

full

the efforts of some very

and consumption hijh.. If we<;do
this job well, with the Help of

Means state .Planning-

too much strain, and with
more than 5% of the. labor force

unemployed.

Whether we like it or not, the
survival : of our system depends

— m the broadest
of the word. The free en-

politics

upon

sense

IIow to Finance Necessary
Services
-

terprise system will survive if
people like what free enterprise
♦ The way to finance more edu- does: So far they have liked what
cation, more defense,: more re- it has done. By preaching and

search, moid public health arid practicing the.'gospel of growth
other necessary services is. to:keep we can see to it chat they will
the whole economy growing- as it continue to like the free enter-?
has been growing.
By so doing
we can have a better chance of
keeping public expenditures down
to at least their present proportion
of total expenditures.'But'let's not
talk about reducing private vexpenditures on the ground that we
consumers have more than, we
need right now. Ask the heads of
""4 "J "

prise system and support it.

;

'
"

vniat..Busiiies» Must Do

To maintain its role as catalyst
and creator in the American society, business management would
do well to take the offensive and
to put the accent or. the positive,
Too often in the past, business

„

headway against the Russians we lor the expanding labor force and
to enable us to keep pace with

better must begin to sacrifice many of
tunes the things we enjoy — we must

out

resisting
Just what is meant by these healthy competition at home arid
important statements?
Do they mean we abroad we can keep this country

rolling in dough.

Ask the people

lor—tilings the public believes

living in the nine million dwell- in. More specifically, it has given
ing units . that have only: cold the impression it was against govwater if they think* our • country ernment and most governmental
is overbuilt. One look at the slum activities. Now you. and I know
areas of any American city or that government—big government
good-sized town will smash the and big taxes—are liere t,o stay.
stereotyped idea that the Ameri- One of our main jobs, as I have
can people are relaxing fat and mentioned in my remarks here
fcontented in their split - level .today, is to see to it* that governs
ranch houses—all with a three- ment does not begin to play a
car garage.
•
}% .
- : ;
v
bigger role thaiifit has today. We
We in the automobile industry don't want business management
.

that we have helped to to be crowded off-the stage! But
bring car ownership to the great we.'all know, if we face the realr
majority of American families, itics of the times we live in, that
And we are proud that the nujn- 'the size of government and total
her of families owning two or size of the tax revenues are bound
more cars is increasing year after to grow with the growing popuare proud

year.

But we

ing that we
close

near

far from believ-

lation, with the size of the econ-

are getting anywhere
to the ceiling of-car

pace.of the' cokL war—especially

are

demand.
Of

the

than

and

omy,

with

the

stepped

the economic c-md war.
million ■ In my opinion we can't afford

households in this country, close
to 13 million..or 25%, own no car
at all. And of the 37.million families that do own cai"S, only six and
a half million own two cars or
more. With the pattern of modern
living requiring more and more

to run the risk of helping to create
in J the public
mind
the false
image of business management as
a wgr«ifp that is opnosed to government on. principle and in the
abstract. This is a negative
image. And it's highly dangerous.

that kind of planning by putting
heavy sales taxes on the civilian,
come very familiar to us. Over the
goods which they determine to be
years we have fought against a
luxuries? Do they mean there
long series of. offensives aimed at ought to be higher income taxes?
invading the area of private man- °r do they mean that we Ameri-

adequate defense. We have helped of view shows a certain amount of
provide both guns and butter in Detroit bias—but,., that's the way
the past, and we can keep on do- We see it. *

ing it.

agement decision, authority, and cans should give up our comforts
responsibility.
This
attack
has voluntarily—go without that new
taken many different forms, de~ car—stop planning that new house
pending upon the issues and prob- m the suburbs — or maybe even
lems of the day.
Just recently, start substituting hamfat for bafor example,
when everyone in*C9n.
«
'•
the country has been deeply conFor those of us who are busicerned over the problem of inflanessmen, the logical outcome of
tion, we have seen strong efforts the argument for sacrifice and
to
transfer
decisions
on
prices frugality'would seem to be more

that

er and more discriminatory tax
levies.
Tf Can be used by social
reformers to get public support
Lor inflationary government programs- and'-'subsidies;
It can even
blight the growth of markets by
feeding the fires of criticism direeted against the products and
selling'methods of "business,

changed.

Efforts

this

kind

have

be-

away
from me area of private
management decision and into the

area

again,
on

public debate.

management has

And

once

case

private^ decision - survival
making
vital
to the

matters

private

enterprise.

lation,
made

appeared^ made

Capitol Hill to argue the

tor

goyernment planning,

not

by the

operation

normal
the

might

has
of

people
idea

up
around, the upon a car not as a family bus but
Spartan lite, many as a means of personal trarisportaspreading the tion that gives them the freedom

grown

the

have

that

people

approaching—if it hasn't already
arrived — when people will look

been

nation

and

have become

very

rich

—maybe too rich. It has become
stylish to use phrases like "the
affluent society." You hear that
our productive capacity is overbuilt.
If you believed everything

individuals

where they

tipoff to

competitive

Big and productive as this country is, we are far from having all

have their

market,

new
Spartanism
shocked to be

the things

we need.
With the
serious problems that face
at home and abroad, the only

when

and

true, the growth"; potential of the
automobile industry is far greater
than
many
people
have
been
thinking.
The public interest in
the smaller cars* may be a first

time when all

free

to-go

wishv^ And if this

tened out—or ought to flatten out.

economic

slightly

As part of the school of thought
ideal

We believe thestime is rapidly

you hear, you might think the
country's growth curve had flat-

and

Those who subscribe to the
school

Denies We're Rich

fewer

more regueconomic
decisions

Washington

,:3V

even

imperative need to impose
tighter regulations and high-

it is important to emphasize
positive—and find some activities of government we can be fbr
instead of against—where do we
■

the

trend in this direction, start?

still

are

their sympathies and point out

the

tog

way

personal

own

from the

cars.

spite of what seeing to be

nearly

universal ability to drive a car
31 million e£ the 104 million

many

0Ver

Americans between the ages of 15

Stand on Taxes -•
We might start with the big

most adults will

one

—taxation.
For too long a time
people have talked about taxation
in negatives.
It has been men-?
tioned in the same toreath with
poverty, death, and tyranny. It is
true that the power to tax is the

case be- told that what they are saying logical way to think about this and 65 do not have drivers' li♦So? iwvl11dience* -twill say only plans right into the hands of those country is to think in terms of censes. To us in thfe automobile
-S-rJwPSSl\ke t0 ?ee more state growth in; all- area?—growth.on a business, that fact) is another in- power, to destroy. But,in a broad
vl-g
Flan.ning and control. But in -njy broad front and of such a magni- dication of the size^of our poten- sense it is also the power to give
line
«

^^*argueT

against

upon its

ltyr\
It

this

kind

attack

has been easy enough to unthis
kind
of
outright

derstand

atten^pt to cast business in
and
different role.

easy

opinion

that

responsibility; and author- threatened.

spo

But it

a new
is not

e attempts of
are

is precisely what is
in the long run

And

tude that all its needs, private and tiarmarket.
public, can be met. The time has
wherevpr

the Spartan school of thought may certainly not come to think of
present a greater danger to the arbitrarily dividing the product
preservation^ of our free enterprise of a static and stabilized economy
sys^m than
obvious and

some of the more
evident attacks we

th^v^a'f^0 res^s^

—though

times

tr%.
that

are

t *?

* L

~imiiar

se®-f ]

the Spartan

line of thinking seems to indicate

voir

look"

the

economy

potentials
^

ori
vou

And

thp >ountrv's

vou" «;ep

needs

eauallvzereat. lt has been

new
incentive to explore;
discovgr. and create. Used in such
a way as to keeP m proper bala»ce the incentives of-individuals
a"d the sound progress of the
country as a whole, tax laws and
men

*ax

administration

can

tap

the

e^ec^vely

just that. 'It reminds you,pretty estimated, for example, that to greatest of all resources the will
many others who
attacking
f
strongly of the school of economic hring industrial..facilities up to of+men—and put it to work m the
busmess in less obvious
ways. As
Now, you |and I know that if
„n,
the best modern standards we nation s interest."
part of the national mood of self- We crasS"ex®mmed the people who
alul ly DacK ]n tiae
',
would .have to spend $95 billion
In the long run busmess man^
crftirism T mpntinnp^ Lriiflw
Spartan way people were saying that all the big and sriend it soo»?z
< agement could serve both the na^

asked them exactly

expansion

had

„

taken

place

and

-So there is plenty of work to tion and itself by t&king

strong

Volume

stand

190

for

Number 5860

constructive

reform

The Commercial and Financial Chronicle

tax

laws

and

persistently*

by explaining how*this reform

and

tax

administration*

stimulate growth in the

can

provide

omy,

ate

new

jobs, and

new

Above

we'll

and

econ¬

gener¬

the

for

our

good
for

country
our

that

ourselves

for

With

plant

and

business

building

our

fellow

the

entire

plant and equipment being as
as it is
to the growth

productivity, businessmen
a public service by

perform

realistic

tax

The desire

table

can

against .$25,953,720,869 for the

con¬

same

week in 1958. Our comparative

summary for the week follows:

$14,688,692,780
1,112,891,548
1,136,000,000
779,344,240

1,202.210,327
1,149,000,000
815,311,843

-^14.6

let

the

reform
And

foreign in¬

8.0
1.1
-f 4.6

hour.

should

the

afford

never

keep

point

month, but
$647,007,924.

pounding

that

There

even

increase

2.1%

the

over

May

1958

total

decline from both

the prior

month and

ago in plans filed in New York City
$81,002,065, down 27.3% from April's

serious consideration

below the $118,626,434 of May a year ago.
Permit values for the 216 outside centers-'declined

periods
of
governmental
deficits, tax cuts should be given

generating sufficient
ment

and

cover

those deficits

business

pull.

way

-invest¬

ij^w

expansion
over

the

Another:

Continued
commercial
the

support

better

-Our

highways

May.

The

$111,475,157,

total

and

own

was

gains

interest in

•

year
was

31.7%

aid.

The

were

States

$3,541,858,000,

over
news

can

ten

the

may

be popular for writers to
point to the management of busi¬
as

another 10

years

may

not '

that

both

the

these

major

fundamental

parties

economic

help achieve

many

other

let's

say

belief that
human

desirable

forward

move
we

can

society

these and
objectives.

y".
4.2

gone

professional

business¬
-

more big, posi¬
popular issues we can
support—and let's n.ot throw all

good

tunes

other

groups.

Steel

"Iron

are

Contract Bargaining Climate

peaceful

probable,
weekly.

Let's

keep on
explaining
our
problems and our aims—patiently,

annually by 1965 and 10 million tons by 1975.
con sumption will be somewhere between 2 million and

tive,
the

Some companies think U. ^. consumption alone will reach

millioHutons

New uses for aluminum, the second most used metal, are
spiraling—in the home, on the farm, in office buildings and fac¬
tories, in highway and bridge use, and in transportation.

let's look for

men

for

steel

strike,

"Steel"

June 29.*

least

six

months.

The U. S. Government will set in

talks if the USW

strikes,

"Steel" said.

;

Mediation

action by the Federal Mediation & Conciliation
probably be the only official machinery the Govern¬
ment will use. Labor observers think it unlikely that the President
will invoke the 80-day cooling off period allowed under the TaftHartley Act. Unofficially, the President may exert pressure on
both sides from behind the scenes, 'as in 1956.
U. S. officials are considering what they'll do about steel
distribution in case of a long walkout. They see no call for drastic
action unless the strike goes beyond 30 days. Then they are likely
to take a leaf from their action in 1956 when they limited'the
amount
of aircraft and other special steels nondefense users
could get each week from warehouses.
Service will

Last

90%

steelmaking- operations fell 2.5 points

week, scheduled

of capacity as wildcat strikes'hit the industry and man¬

prepared to shut down July 'l.
2,548,200 net ingot tons of steel.
agement

Production

was

about

U."S. automobile sales

were up 24% at midyear compared to
"Steel" said.
Automakers will have sold
3,000,000 cars in the first half of 1959 versus 2,600,000 in the corre¬
sponding period of 1958, according to estimates based on registra¬
tions and daily sales rates. This includes imports, but Detroit will

this

time

last

year,

dispose of 5,500,000 domestically built autos in 1959.
"Steel's" price composite on No. 1 heavy melting scrap is
unchanged at $36.50 a gross ton despite the cutting off of incoming
shipments by many steelmakers preparing for plant shutdowns.

*This

review by

the magazine was issued prior to the twobeyond the June 30 contract termination date agreed

hower.

2.5 million Ions.-(The record: 2,050,000 tons in 1956.)

the

far toward achieving in this cen¬

tury.

that

Th is year,

build the great

have

possibility of a l»3t minute
the industry's solid front.
event, it expects steelmaking operations would average
,65% during the third quarter.
.
*
Importers hope to capitalize on a strike situation. More foreign
steel has come into Chicago already this year than in all of 1958.
The Seaway accounts for only part of the great influx.
Some
50,000 tons of imported steel have been stockpiled in the Houston
area by speculators.
Import agents for Japanese steel mills are
offering west coast users up to 500 tons a month during the antici¬
pated strike if they'll contract to keep buying the same amount
In

by the unjon and steel industry at request of President Eisen¬
-

Steel Output

can

■

minum

With the right attitudes and the
continued absence of all-out war,
we

The magazine says there is still a
if the union capitulates to

Booming is the only 'was* to describe the future of the alu¬
industry, "Steel," weekly metalworking magazine, reported.

pact must be dedicated to growth
through increased efficiency.

settlement

Bright Future Expected for Aluminum Industry

com¬

■

industries.

week "truce"

•

Nearly all can maintain normal operations for a month. After
weeks, many would experience difficulties because of unbal¬
After eight weeks, shortages would force mass
shutdowns and widespread unemployment among steel consuming

wide survey expected

....

•

Prepared for Steel Strike

anced inventories.

...

Users Well

six

•

Only 11% of the buyers polled by the magazine in a nation¬
prices to remain stable. Thirty-two per cent
of any other profession.
predicted a slight increase of from 1-2%, 43% thought prices
By then
would be up 2-to-4% and 9% thought the increase would be still
management may be accepted not
only as a .profession but as the
higher.
basic profession.
Almost two-thirds of the purchasing agents said current prices
q.
In
another ten years we may : on commodities they bought were "up above a year ago, while 30%
have made some real progress to¬
reported little or no change for the period. Four per cent of the
ward eliminating from our
society -V | agents said current quotations were below year-ago levels.
the concept of class struggle.
/>
Steel was named by the buyers as the product most likely to
By
then
the relations of labor and
cost morq during the second half of the year, followed by metallic
management may be greatly im¬
products generally, aluminum, copper, rubber, chemicals and
proved by a growing realization;, paper, in that order.
management is a profession which
has a social worth equal to that

Steel users are well prepared for
magazine, the metalworking weekly, said

;

only a token one, there will be a sharp
ingot rate in August and part of September.
heavy inventories, summer letdown, and

due

•.•

building at $7,126,054,000, up 39%; heavy engineering
$3,434,570,000, up 4%; and total construction at $15,230,334,000,
17%.1 • «
*
>
'

cation.

be necessary to argue that business s*

The nation's purchasing agents have joined the growing list of
experts who predict a continued rise in prices during the second
half of 1959, reports "Purchasing Week," a McGraw-Hill publi¬

materialistic occupation.

subsequent order pattern in

•

Purchasing Agents Predict Second Half Price Increase

longer
ness

strike

the steel

will

Steel

vacation schedules.

and

residential

„

knows?—

years

This

ago.
/
1
«
Cumulative totals of contracts for the first five months of 1959,

year

succeed—who

another

falloff in

with percentage changes from the comparable 1958 period, were
•as
follows: non-residential building at $4,669,710,000,
up
3%;

community.

If there is

eco¬

will have to revise their

users

line with the duration of the strike.

The Dodge Index of Construction

important thing
image of man¬

to the next.

over

magazine predicted whirlwind output and shipments of
steel products in the first two weeks of July.
"Iron Age" said that if there is a steel strike at
mid-July,

housing, manufacturing buildings, and
boosted construction contracts in May in

month last year, F.

made."

The

was

transmit the

agement as a driving; construetive, positive force in the Ameri-

carried

2.9%

Contracts, seasonally adjusted,
►reported at 259 in May (1947-49 = 100), down somewhat from
the aiUthnc peak reached in April of this year.
Nevertheless, the
quate highway program. We knew •
Index in May continued at a level above last year's average.
it would be good for the nation
Residential building contracts in May totaled $1,677,324,000,
as
well as for ourselves, and all.
up 25% over the May 1953 levdl.
of us Who participated in the
Within this category^-contracts
pro- y
for single* family houses scored the largest increase—33%.
motion of the idea are proud to
The
number of dwelling units represented by total residential contrast
remember that we helped in our
;
in Mayf-waS 129,717, a gain oi 25% over the same month last
way to get it enacted into law;
year.
.*
- Contracts for non-residential
buildings in May were valued at
Management can take the same
$1,071,520,000, down 5% from a year ago. Sharp gains in contracts
positive attitude toward education,
for commercial, manufacturing, and religious buildings were more
and it can offer its
good services
than offset by declines in the other non-residential building types.
in helping school systems get the'
most out of every tax dollar. It
May contracts for-heavy engineering construction amounted to^
can
find sound programs to sup¬
$793,01.4,000, down 15% from the like 1958 month. Within this
port in resource conservation and
category, both public works and utilities were down from a
nomic

thing is certain this week," said "Iron Age."

Regarding the steel market outlook, "Iron Age" said the
"two-week "breather" will give steelmakers a good chance to clean
up most order "carryovers"—shipments promised in one month but

evident. But •'

development, and in foreign

on.

price increase by any steel company.
&
»
industry's idea of a settlement is so far below what the
union has come up with that more hard-headed bargaining is in
store between now and midnight July 14—or to a later
date, if

However, sharp gains in contracts for manufacturing and commer¬
cial buildings in the past several months reflect
growing business
optimism and indicate increased activity in these vital 'sectors in
the months ahead." V
;
;
t

highway

still much too high for the companies

was

seriously.

"The

picture.

that didn't stop us from
going full
blast in arguing for a big and ade¬

is to

for

Commenting on the latest figures, Dodge Vice-President and
Economist Dr. George Cline Smith said, "So far in 1959, housing
has been the chief source of strength in the construction

•

"The union
the steel management team short in terms of
management's determination to resist a settlement that would call

buildings

an increase of 4%
W. Dodge Corp., construction
marketing specialists, announced June 26.

mobile business found just such a

This wasn't hard for

United

same

and then go

project in the President

The union estimated the cost at 15 to 16
The. companies figured the cost at 20 to 22 cents an
The difference, is accounted for by the fact that the steel

steels

Support.

all out in beating the
drums for them.
We in the auto-

strike

side is still selling

May Construction Contracts 4% Above 1958 Month

businessmen
to accentuate the positive is to
find
governmental projects that
they can whole-heartedly support,

program;

May to $579,632,031 from the $597,022,023 of April, but
9.7% over last year's $528,381,490.

for

way

consider

and

long

Government Programs to

realistic atti-

steel

another contract extension is

was

some

companies talk in terms of total cost, including incentives, taxes,

Although the total value of building permits for 217 cities fell
moderately in May from April, the level was the highest for any
May on'record, reports Dun & Bradstreet, Inc. The total came to
$660,634,096, a decline of 6.8% from the $708,497,180 of the prior

public forget that tax
help the country grow.

can

away

can

cents ail hour.

"One

tax %

vestment, and even, perhaps, .on
some
aspects of the personal in¬
tax.

to -avoid

'non-inflationary' settlement"—that is, a settlement that will not necessitate a steel price increase.
The metalworking
weekly commented that the union's settle¬

May Building Permit Values Set Record for That Month

come

any

ment offer of last week

porate

incentives for private

force

Boston

special

1958

.$12,542,487,044

Chicago

laws

\
1959

Philadelphia 1_—*

in some steel circles

"Iron Age" added:

Similar positive positions could
be taken on excise taxfes, On cor¬

rates,

which led

by the union without

all possible.

apd tax administration.

tax

"High.Administration officials do not want a steel strike even
though they are reluctant to step into actual bargaining. But
they have done and will do everything just short of sitting at the

tinuing to present the inherently T
Weelc End. June 27—"
strong and logical case for en¬
New York
couraging this kind of investment
through

extension of contracts

The union's apparent readiness to take
tude in scaling down its original demands.

investment

important

two-week

Continued from page 4

equip¬

evidence of

strings attached.

world

ol the economy and improvements
in

can

work.

our

President Eisenhower's last-minute "intervention"

this.

But it pointed to these developmens
hopeful collective bargaining climate:

seeing the fruits of

ideals and

our

know

come

the

agreement.

society.
Many

this.

citizens

years
sure

knows

know

ever¬

ever-improving

business

make

connection, there is a great
American business
management,
opportunity in arguing for the taking it by and large, is
seriously
continued liberalizing
of depre¬
ciation
allowances covering ^ex¬
ment.

jobs.

growing,

pouring

In this

penditures

dedicated

efficient

into the

performance of

spirit.

remember

most

main effort

our

investment opportunities.

and

all—let's
do

(31)

settlement

according

"The
*

Agel' said

the

Iron

steel

Improved

lat^or

dispute is still

national

Age,"

metafworking

July 1 that steel labor and management
still-far apart in terms of what constitutes a •*non-inflationary"
on

—-—The

American

Iron

Based
and

011

Steel

84.9% of Capacity,
Institute

announced

that

the

operating rate of the steel companies will average *149.7% of steel
capacity for the week beginning June 29, equivalent to 2,405,000
tons of ingot and steel castings (based.on- average weekly pro¬
duction of 1947-49) as compared with an actual rate of *154.8%
of

capacity and 2,486,000 tons a week ago.

Actual output for the week beginning June 22, 1959 was equal
ta 87.8% of the utilization of the Jan. 1, 1959, annual capacity of

147,633,670 net tons. Estimated percentage for this week's foreCcist is 84i9%f
A

month

production)

(based on 1947-49 weekly
*165.2% and production 2,653,000 tons. A year ago

ago

was

the operating rate
'

Continued

page

•

£2

The Commercial and Financial Chronicle

(32)

Thursday, July 2, 1959

\
'

Continued

retailers, considerable year-to-year declines appeared in the ap¬
appliance, and drug trades.
In the six of the nine major geographic regions, failures ran
lower than in the* preceding month.
"The East and West South

from page 31

The State of Trade and Industry
the

€5.7%.

V+

•

§, passenger car producers will wind up its assembly on
with a monthly total surpassing 560,000 units, "Ward's

U.
*

•

will continue at a strong
rate in July—though not quite as robust as June—to be followed
by a heavy slash in output in August, when a major part of the
will take place.
■ '.
The estimated June total represents the highest count for the

1960 model changeovers
-

month

since 1955, when 649,000

cars were

turned ou.t.

caid July's,effort also will be the best iii four-years.
Production for week ended June 27 was programmed
.

"Ward's"

There

industry for the week ended Saturday, June 27, was
at 13,749,000,000 kwh., according to the Edison Electric

power

estimated

Institute.

■+;

■

.T.

■ ■

above

that

the

and

Loading of revenue freight for the week ended June 20
totaled 723,738 cars, the Association of American Railroads an¬
nounced. This was an increase of 95,728 cars or 15.2% above the
corresponding week in 1953, but a decrease of 23,026 cars or 3.1%
below the corresponding week in 1957.
14,599 cars, or 2.1%

above the preceding week.

For June 20 Week
Lumber shipments of 475 mills reported to the National Lum¬
Trade Barometer were 3.0% above production for the week

ended
■

June 20. In the

10.7%-'below

same

week

production./

amounted to 42% of stocks.

orders of these mills

new

Unfilled

orders

reporting

were

the

2.1%

mills

year-to-date, shipments of reporting identical mills

above production;

new

orders

were

2.6%

above pro¬

duction.

Month

record, reports Dun & Bradstreet, Inc. At 16,660 in May, the
total was 5.1% below the 17,554 of the
prior month, but 39.5%
higher than the 11,943 of May 1958 and 26.8% above the prior
May record of 13,142 set in 1956.
' ■
■
»
on

business

incorporations was 86,890, for
58,438 of the similar period a year ago.

year the aggregate of new
a

gain of 48.6%

over

the

May Failures Down in Number and Size
Business failures, in the steepest decline of the
post-recession

period, fell to 1,135 in May, according to Dun & Bradstreet, Inc.
This 12% downturn, ds against a usual seasonal
dip of 2%, pushed
casualties below their comparable levels of 1958 and 1957.
With
failing in all size groups, dollar liabilities dropped

concerns

;

Casualties occurred at
000

listed

enterprises.

Although

reported a moderate decline in trans¬
but prices were close to the preceding week.
Another slight decline in cocoa prices occurred, and buying, was
sluggish again.

Although hog prices in Chicago picked up at the end of the
week, they finished noticeably below those of the prior week,
although hog receipts rose substantially during the week, trading
was down moderately.

in Chicago rose to the highest level in six
weeks, but purchases lagged and prices were moderately lower.
There was little change in lamb turnover and prices were un¬
changed from a week earlier; sheep receipts in Chicago were
down fractionally.
Following the downward movement in hog

the

for1

any

declines

Fewer businesses failed than in

operation.

saling,

May

year

ago

in all types

The most noticeable decrease, 26%, occurred in whole¬
least change, a 4% dip, in commercial service.

and the

Marked improvement

was

noted in iron and

steel
manufacturing
casualties, only one-fourth those last year, and in textile, apparel,
and machinery, which were only one-half as
numerous.
Among

The

Frankfurt
the

marks

outlet

new

almost^

23,

the

turn of the Bache

re¬

organization to

Germany for prior to World War
II

branch office

in Berlin.

maintained

was

It also brings to Bache

distinction

the

offices in

operating more
other

Europe than any
Exchange

New York Stock

firm.

ber

M. J. Meehan
Edward B.

Admit

Sehnell

mem¬

July 9th

will acquire a membership in the
New

York

Stock

become

Meehan

partner

and

Exchange,

Co., 30 Broad Street,
New York City, members of the
New York Stock Exchange.

With Harris

Upham

(Special to The Financial Chronicle)

CHARLOTTE, N. C.—Claude L.
Jr. has joined the staff of
Harris, Upham & Co., Johnston
Building.
Ives,

H. W. Johnston Forms Co,
SARATOGA

SPRINGS, N. Y.—

William

Johnston

has

William

Johnston

formed

with

Co,

offices at 423 Broadway to engage
in

securities

business.

Warburton, Barnett Partner
On

July

became

Salvatore G. Zaino
in Warburton,

partner

Barnett &

Greiner, 72 Wall Street,
City, members of the
York Stock Exchange.
York

New
New

Later Father's
Despite

Louis Kagan

Day Helps Boost Retailing Over Year Ago

cold

rainy weather at the

beginning of the week,
prior week and was up
noticeably from a year ago. Much of. the rise was due to Father's
Day falling a week later this year than last.
Besides marked
year-to-year increases in men's apparel, volume in women's mer¬
total

retail

advanced"

furnitiire,

Interest in

sharp

trade

new

increases

and

from

floor

passenger cars

total

dollar

was

35-11

volume

10%

;

retail

higher

trade

than

the

year

week

ago,

ended

according

Bradstreet, Inc.
Regional
1958 levels by the follow¬
ing percentages: Pacific Coast +11 to +15; West North Central
+7 to +11; Middle Atlantic, South Atlantic, and Mountain +6 to
+ 10; East North Central +5 to +9; West South Central and
East South Central +1 to +5; New England —1 to +3.
The most noticeable increases from last year in men's apparel
occurred in knit sports shirts, pajamas, neckwear, walking shorts,

beachwear;

(Special to The Financial Chronicle)

Ga. — Kenneth R.
has.'joined the staff of

First

Southeastern

ATLANTA,

Although

the

prior week, moderate

year-

reported.

Father's

Company,
Georgia Build¬

Trust Company of

ing.

Forms Manhattan Sees.
William Downey is engaging in

securities business from offices

Pearl

140

City,

under

York

New

Street,

the

firm

name
Manhattan Securities Co.

Forms Mitchell Co.

Increased

remained
were

Eighty-fifth Street.

volume

lightweight suits was close to the
buying of women's cotton dresses,
sportswear, and accessories helped boost over-all sales of women's
apparel slightly over last year. Although purchases of children's
to-year gains

N. Y.—
conducting a

Woods

spot estimates collected by Dun

similar 1958 week.

Kagan

First Southeastern Adds

estimates varied from the comparable

and

Opens

HEIGHTS,

securities business from offices at

to scattered

•

The

Louis

coverings showed slight gains.
held close to a week earlier and

last year remained, according

over

reports.

the

JACKSON

Day

LITTLE

—

Marvin

Hershman is engaging in a

securi¬

NECK, N. Y.

ties business from offices at 58-32
251st Street under the firm

sales

promotions helped sales of
mowers, barbecue goods,'and electric shavers climb over
last year, over-all appliance volume was down moderately, re¬
flecting declines in laundry equipment, lamps, and refrigerators.

name

of M. H. Mitchell Co.

power

Sales of air conditioners were close to last
year.
While volume
in linens advanced
substantially from a week earlier, sales re¬
mained close to a year ago.

Jack Powell Opens
BRONX, N. Y.—Jack Powell is
engaging in a securities business
offices?

from

Crotona

1520

Park, East.
■

;

Nationwide Department Store Sales Up 22%
Department stores sales on a country-wide basis as'taken
from the Federal Reserve
Board's Index for the week ended June

20, increased 22% above the like period last year. In the preced¬
ing week, for June 13, an increase of 2% was reported. For the
four weeks ended June
20, a gain of 10% was registered and for
Jan.

June

increase

was

noted.

According to the Federal Reserve System department store
sales in New York City for the week ended June 20 showed an
increase of 14% from that of the like period last
year.
In the
preceding week, June 13 did not show any change.
June 6 was
10% higher than the 1958 week.
On May 30 sales increased 5%,
four weeks ending June 20 a 7% gain over 1958 was recorded
and Jan. 1 to June 20 showed a 4% increase.

■

•

R. Ragazzi

For June 20 Week

construction--toll

month-to-month

Rossmarket

prices, lard prices slipped from the preceding week.

May since 1955.

and

Frankfurt office is lo-.

new

opposite
Stock Exchange.

receipts

rose
mildly among general
prevailed in other industry
trade groups.
Only half as many food wholesalers, building
materials wholesalers,
and apparel retailers succumbed as in
April.
In manufacturing,
there_ was a sharp drop in the textileapparel industry total, but food industry casualties moved
upward.

builders,

rye

in Ham¬

agents

its

directly

this week,

apparent annual rate*of 48 per 10,-This, was the mildest rate for any month

in almost two years and

wholesalers

Coffee

actions

merchandise

to $50.9 million.

The
cated

will

•

Although both export and domestic buying of
rice moved up and supplies were reduced, rice prices remained^
steady this week.
There was a moderate decline in sugar trad¬
ing, but prices were unchanged,

June

The number of ndw business incorporations in
May declined
somewhat from April, but the level was the
highest for any May

During the first five months of this

year

Purchases of flour lagged this week, and prices remained at

May New Business Incorporations at Highest Level
For tlic

noticeable decline in

through

underway, wheat buying slackened and prices were fractionally
lower.
Influenced by shutdowns of processing plants, soybean
prices declined from the prior week.

above; ship¬

9.5% below.

fewer

iwas

chandise,

.Compared with the previous week ended June 13, production
of reporting mills was the same- shipments were 4.8%
above,
new orders were 3.8%
above.
Compared with the corresponding
week in 1958, production of reporting mills was 4.5%
ments were 1.2% above; and new orders were

and

burg, Bremen and Frankfurt.

were

For reporting softwood mills, unfilled

orders were equivalent to 19 days' production at the current
rate,
and gross stocks were equivalent to 41 days'
production.

For

corresponding date

Cattle

Lumber,Shipments Were 8.0% Above Production

ber

below the 279.45 of the

prices this week, and
trading ^fW^lown noticeably as time for the new crop neared.
Although purchases of corn were sustained at high levels, prices
dipped moderately, reflecting heavy supplies.
With harvesting

cost-of-

prior week levels.

Car Loadings 15.2% Above Corresponding 1958 Week

were

well

was

There

27, output increased by 418 million
previous^ week and showed a gain of

Loadings in the week .of June 20

Previously, the world-wide invest¬
ment firm had representation in
Germany via its branch in Geneva

lower

ago.

1,092,009,000 kwh. or 16.9% above that of the comparable 1958 week.

district.

financial

Frankfurt

the

prices on most grains, lard, butter, hogs,
steers, rubber, and tin, the general commodity price level fell
appreciably from the prior week.
The Daily Wholesale Com¬
modity Price Index, compiled by Dun & Bradstreet, Inc., declined
to 276.87 (1930-32 = 100) on June 29 from 278.92 a week earlier,

For the week ended June

kwh.

Reflecting

slated at 27,670

16.9% Above 1958 Week

It is not

in the heart ot

officially opened

Wholesale Commodity Price Index Dips Appreciably
From Prior Week

ind.

The amount of electric energy distributed by the electric light
and

Brad-

Ger¬

in the postwar period, when
modern brokerage quarters' were

living index.
Its chief function is to show the general trend of
prices at the wholesale level.
'■

factories take

units, "Ward's" said, as this segment of the industry breezed-along
at its best clip for four years.
Earlier week's output was 27,539
units while the 27,925 total the week before set a 1959 record.

Electric Output

establish

Western

many

food

four car-making plants sched¬
operations this week. They were Rambler,in Kenosha,
Wis., Pontine in Tontiae, Mich., Lincoln-Thunderbird in Wixorri,
Mich., and Ford in Dallas, Texas. Putting in a limited four-day
week were three sites—Dodge Main and Imperial in Detroit, and
was

in the Dun

week

branch' office

The statistical publication said

rise this

July 1 became the
of the New

firm

York Stock Exchange to

Price

Food

of 31 raw foodstuffs and meats in general use.

uled six-day

Truck volume for week ended June

fractional

member

first

breatlier for the July 4 holiday.

Studebaker in South Bend,

Bache & Co.

the

Index, but it remained noticeably
below a year ago.
On June 23 it stood at $6.11, up 0.3% from the
prior week's $6.09,' but down 8.0% from last year's $6.64.
Commodities quoted higher this week were butter, coffee,
.cocoa, eggs, and steers. Lower in cost were flour, wheat, corn, rye,
oats, lard, cottonseed oil, and hogs.
■
•
^
The Index represents the sum total of the price per pound

at 130,621
92,277 in the
The week ended July 4 will see a

was

Wholesale

street

automobiles compared to 130,927 previous week and

corresponding week in 1953.
decline to about 115.000 units, "Ward's" forecast,

for

Wholesale Food Price Index Advances Fractionally

Automotive Reports" said on June 26.
The trade publication said activity

accounted

delphia, Baltimore, and Los Angeles reported appreciable declines.

Highest Since 1955

Oregon)

ported the steepest decline, with the Florida toll down consider¬
ably.
Also, mortality was markedly lower in Connecticut, Illi¬
nois, and Louisiana. Large city tolls dropped more sharply from
,*4958 than the non-metropolitan tolls.
Chicago, Detroit, Phila-

June Auto Production

(notably

upturns. • Casualties slipped below 1958 level in all
the Mountain Region.
The South Atlantic States re¬

save

areas

Pacific "States

and

contrasting

o£-production is based on average weekly production

•"'Index

for 19.47-1949.

June

Central

1,376,000 tons, or

production was placed at

weekly

actual

Bache & Co. Opens
Office in Frankfurt

parel, furniture,

CORONA; N. Y.

—

from

■

Raymond A,

Ragazzi is engaging in
business

Opens

offices

securities
at

112-09

Roosevelt Avenue.

With

Joseph, Mellen Co.

(Special to The Financial Chronicle)

CLEVELAND, .Ohio—James
Cullen

now

affiliated

with

Miller, Inc.,
Union Commerce Building, mem¬
Joseph,
bers

change.

Mellen

the
1

Midwest

Stock
■-

Ex¬

Volume

Number 5860

19Q

.The Commercial and Financial Chronicle

(33)

TJie following statistical tabulations

latest weekor month available.

Business Activity

week
Latest

IRON AND STEEL INSTITUTE:
Indicated Gteel operations (per cent capacity)

AMERICAN

AMERICAN JPETROLEUM

—July

ENGINEERING

CONSTRUCTION
-! '■*%

NEWS-RECORD:

7,891,000

7,522,000

28,584.000

1,952,000

27,569,000
1,488,000

12,73.1,000

12,287,000

12,114,000

6,310,000

6,605,000

6,614,000

6;345,385

200,624.000

201,508,000
26,151,000
106,505,000

26,600,000
111,930,000

54,439,000

203,610,000

54,612,000

54,484,000

63,596,000

•709,139

685,745

628,010

583,562

<588,962

528,998

$546,100,000
228,000,000

$679,700,000
335,600,000

$483,128,000

250,700,000

June 25

241,200,000

318,100,000

344,100,0jp0

201,800,000

184,600,000

1^65,500,000

39,400,000

133,500,000

178*,600,000

June20

400,000

H,110,000

9.255,000

.—June 20

—

'.V

8.410,000

8.873,000

320,000

INDUSTRIAL)
1;

13,331,000

12,778,000

June 25

256

267

264

117

DUN

—

(E.

11,941,000

■

396,429,000

33,842,000

355,238,000

102,892,000

77,792,000

129,732,000

255,904,000

263,283,000

247,295,000

J.——

warehouse

Dollar

exchange

Based

at
Louis)

—

6.196c

6.196C

6.196c

$66.41

S66.49

$38.17

$35.83

$35.17

Total

5.9G7c

Retail

at—

23.850c

11.500c

11.800c

11.300c

Consumed

11.500c

10.500c

11.000c

10.000C

COTTON

83.65

94*04

83.77

96.23

102.13

87.59

87.72

88.40

99.04

85.98

86.11

96.07

June 30.

81.66

81.38

82.03

88.27

June 30
June 30

85.07

85.33

85.59

91.62

DEPARTMENT

85.07

85.46

97.78

ERAL

June 30

87.99

87.86

88.54

4,16

4.12

4.10

—

85.07

4.71

4.70

4.67

3.99

4.46

4.43

3.62

June 30

4.59

4.58*

4.53

3.81

June 30

4.71

4.70

4.00

5.02

4.54

2—i

5.04

June 30

5.05

June 30
June 30

4.78

June 30

4.56

June 30

385.9

386.5

389.5

398.0

June 20
—..June 20

295,404

308,729

297,960

253,065

Baa
;

—

Industrials Group
INDEX

4.76
•

4.74

4.30

4.78

4.75

3.89

4.57

4.78

4.52

3.79

NATIONAL PAPERBOARD ASSOCIATION:
—

—_—-_-—.—

___

...

activity—
at end of period

330,025

327,830

270,117

317,085

495,750

—June 20
June 20

—

528,417

468,806

—

„

110.15

110.30

•

TRANSACTIONS

EXCEPT"

ACCOUNT

FOR

purchases

Short

sales

Total

sales

-.-2^.

Short

the floors

2,276,360

2,304,350

1.688,870

474,190

397,700

2,546,041
3,0207-231

1,324,530

All

1.722,230

Durable

389,850

19,500
487,650

480,183

500,420

507,150

568,083

654,933

128,737

843,413

714,591

3,257,843

3,351,646

4,335,484

520,960

488,007

June

692,680

601,890

2,394,375
2,996,265

June

3,200,416

3,166,821

3,889,849

—June

3,727.376

3.654,828

4.582.529

EXCHANGE
Odd-lot

sales

Number of
Dollar

—

SECURITIES

Y. STOCK
COMMISSION
1,69.9,004.

2,278,440

$106,482,864

$102,830,427

$125,781,158

1,540,429

1,933,379

Short

sales

1,919,212

1,185,966

$104,855,472

$50,269,197

June

1,528,259

1,540,555
8,114
1,532,441

June

$183,459,923

$85,730,911

12,170

—June

400,520

.June

;

463,170

*97.75
79.00

9,709

14,167

483,180

STOCK SALES

ON THE

......

39.1

39.5

38.1

•,

Total

round-lot

Short

sales—

sales

Other

—

INSTITUTE

2.26

2.00

1.94

$261,400,000

PAYMENTS

2.39

2.01

$278,000,000
58,400,000
1 0,000,000

$259,200,000

10,000,000

54,200,000

52,900,000

49,600,000

131,900,000

BENEFIT

137,500,000

132,700,000

OF LIFE

...

54,200,000
-

Values

400,520

463,170

485480

670,280

579,690

774,890

405,740

113,500,000
L

137,200,000

111,600,000

$674,000,000

$624,200,00O
V

INSURANCE

PURCHASES

—

INSTITUTE

INSURANCE —Month

LIFE

00,000's omitted):
Ordinary

May
\

—

633

LABOR

—

(1941-49

—

961

$5,593

$5,594

$5,574

MONEY IN CIRCULATION—TREASURY DEPT.
As of April 30 (000's omitted)
v $31,349,000

$31,250,000

814,81

Meats

;

June

636,980

585,290

15,144,600

15,179,860

1,173,650
18,311.340

13,206,14;

Credit

15,781,580

15,765,150

19.484,990

14.020,950

Cash

—

...

thgn farm and food3

119.5

June 23

119.6

119.4

June 23

90.7

*90.0

91.0

/96.2
/112.8

107.8

June 23

103.9

103.1

107.9

/115.2

June 23

127.9

127.8

/ 125.2

107.9

141,032
979,013

299,'044,482

218,773.150
116,026,980

106,395,664
543,000
2,329,000

294,255,796
106,004,286

Govt. Issuesother collateral

ESTATE

FORECLOSURES-

bf listed shares—
of

listed

borrowings
REAL

FEDERAL

ANCE

BUREAU

(000's

Exports
Imports

SAVINGS

AND

LOAN

164,000
364,000

bonds

CORPORATION—Month

STATES

$2,997,689
311,919

free" credit balances-

value

Member

*$3,5G7-000

1,205,000

customers'

value

NONFARM

$3,549,000

banks in U.

Market

1/19.1
,

107.6

♦Revised figure. ^Includes 1,003)000 barrels of foreign crude runs.
iBased on new annual capacity of 14<,633,670 tons
of Jan. 1, 1959, as against Jan. 1, 1958 basis of 140,742,570 tons.
iNumber of orders not reported sinceu introduction of
Monthly Investment Plan. tPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis' exceeds
one-half cent a pound.
s

$30,565,000

1,188,000

customers-

Member borrowings on U. S.

UNITED

166,000

hand and

Market

.June 23

foods

All commodities other

359,000

extended

Total

U. S. DEPT. OF

products

Processed

of May

31 < 000's Qinitted,).:
Member" firms! carrying margin accounts—
Total customers' net debit balances^.—

100):

commodities-

STOCK EXCHANGE—

YORK

Ail

637

702

Commodity Group—
Barm

$3,976

539

686

June', 5

WHOLESALE PRICES, NEW SERIES
-

$4,353

$4,274

Industrial

NEW

sales.-—

10,400,000

387~660

—June

12——————

—

60,700,000

$625,200,000

/dividends

Total

June

—

$2.12

$2.23

2.39

Y. STOCK

•

sales

Total

(SHARES):

•

$2.23

—

...

endowments

Total

BKCI1ANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS

38.7

40.3
*40.9

387,660

—.June

purchases by dealers—Number of shares

ROUND-LOT

88.37
73.91

39.7

—

TOTAL

—•

41.1
-

—

Matured

June

—

$82.04

$89.87

40.5

.-.

roup

Other sales
Round-lot

INSURANCE—Month of April:
benefits

LIFE

^——

Round-lot sales by dealers—
Number of shares—Total sales

DEPT.

79.80

POLICYHOLDERS

1,195,675

;

$55,372,289

—June

——

other sales.

6.543,000

$90.32

/goods

Death

1,200,171

June

Customers' short sales.
Customers'

$5,023,000
8,480,000

*6,720,000

98.23

INSURANCE

LIFE

Policy
1,842,689

value

Dollar value

*9,309,000

^uay:

goods

Surrender

June

—

Odd-lot purchases by dealers (customers* sales)—•
Number of orders—Customers' total sales

Annuity/payments

EXCHANGE

*16,029,Q00

(customers' purchases)—t

by dealers
shares

90.9

9,414,000

Disability payments

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

140.0

*98.4

6,721,000

manufacturing

Nondurable

2,693,604

....

SPECIALISTS

*167.0

16,135,000

goods

Durable

Total-round-lot transactions for account of members—
Total purchases
1—June

AND

6,269,000

4,976,000

90.2

./.

goods
earnings)—.

All

737,655

902,715

DEALERS

$11,245,000

*7,022,000
*5,145,000

169.2

...

manufacturing

165,060

130,590

863,625
994,215

'4.

All

573,064

835,594

653,696

107,180

843,328

LOT

*$12,167,000

7,121,000

A/C'erage^loO)

Nondurable

950,596

sales

$12,266,000

workers)

goods

Durable

Total

124

Hours-

39,130

120

126

/Wge.- lOO)

ESTIMATE—U.

332,190

June

sales
-Other sales

122

116

130

5
5

sales

Short

118

126

manufacturing/

Houi'ly

June

;

124

Weekly earnings—

371,320

June

Total

375.2

„

431,670
-

87,900"

42,200

458,220

——June

——:

•

468,400

355,620

;

—

sales

438.8

YORK—1917-49

...

goods

LABOR—Month

3,031,490

June

17,625,000
7.503,000

439.1

5,145,000

goods

Nondurable

Juno

—

8,776,000

FED¬

goods

manufacturing

Durable

2—June

___— -————

Total purchases

—.

20,971,000

17,945,000

8,781,000

employees in manufac
tufbpg industries—<

Nondurable

—

Other-transaetion8 initiated

Other sales

June

—June
.«

20,402,000

17,591,006

EstimaKld number of

lloor—

the

sales

Other

2,342,330
339,770
1,964,580

—June

initiated off

20,356,000

893,904

FEDERAL

AVERAGE

2,213,060
377,580
1,898,780

June

—

17,625,000'

FACTORY EARNINGS A\E» HOURS—WEEKLY

June
—_—

102,796
797,245
17,945,000

Month of May:,

Payroll
indexes
(1947-49
Airiaainilacturing"

registered—

...

—

Other transactions
Total

-•A-.'

J*-

MEM¬

Other sales
sales

y-,%

ODD-LOT DEALERS AND SPECIALISTS

Transactions of specialists in stocks .in which
Total purchases
!
—,

Total

SECOND

DISTRICT

Employment indexes (1947-49
All
manufacturing

109.85

110.53

SALES

manufacturing (production
goods

Nondurable

All

—June 20

82,226

731,687

101,603

May:
All

Durable

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
AVERAGE —100

600,256
1,587.497

8,423,299

EMPLOYMENT AND PAYROLLS—U. S. DEPT.
OF LABOR—REVISED SERIES—TMonth of

366,756

;

716,820

*9,542,520

(I)EPT. OF COMMERCE):

STORE

loo

1,587,497

17,591,000

monthly), unadjusted(average daily), unadjusted-*™JL
(average daily), seasonally adjusted

Sales

1,485,625
8,763,270

(average

Sales

4.47

3,812,000

of May

RESERVE

Average,
Sales

10,771,000

$56,246,000

702,3G2

RESERVE BANK OF NEW

3.02

18,279,000

8,623,000

Spinning spindles in place 011 May 30
Spinning spindles active 011 May 30
/
Active spindle hours (000's omitted) May 30/
Active spindle hours for spindles in place May'

99.36

22,837,000

BALES:

...

COTTON SPINNING

86.51

5,472,000

$71,907,000

May

•89.78

1,341
$17,912,000

9,996,000

...

June 30

!_;

Stocks

89.37

DEPARTMENT

RUNNING

94.625c

86.11

—

I.INTEKK

24.000c

1,292

$1(1,501,000

'73,950,000

$50,917,000

...

month

May

125

3,336,000

24.700c

June 30

(tons)

12,262.000

103.500c

89.23

————:

L'_

liabilities

24.700c

.-June 30

—

108

1,135

"104.750c

83.27

-—

■

/ 121

4,846,000

24.700c

Average couporate

(t on s)
(tons)

AND

—June 30

—.

207

$10,835,000

103.375c

85.98

/ 166

In consuming establishments as of May 30.
In public storage as of May 30.—tLinters— Consumed
month
of May.

—June30

-j-

659

172

Cotton spindles active

671

19,638,000

COMMERCE

Aua

Orde rs received

liabilities

242

132

104

.J:.-...

.......

24.775c

AVERAGES:

DAILY

202

567

liabilities

12.000c

June 30

COMMODITY

199

liabilities

Commercial 'service

29.325c

June 24
—:——..——June 24

at-

Group

BRADSTREET,

Construction "liabilities

12.000c

Group

number

—June 24
June 24

—

U. S. Government Bonds

Short- sales

1,038,248,000 1,028,525,000 1,440,600,000

—

number

Manufacturers'
Wholesale

MOODY'S BOND YIELD DAILY AVERAGES:

BERS,

•

Commercial service number

27.675c

—

ROUND-LOT

shipped between

number
Wholesale number
Retail number
■;

12.000c

:.—*

Railroad Group
Public Utilities Group
Industrials Group

1949

15,709,000

INC.—Month of May:

27.075c

—

Ban

Production

and

BUSINESS FAILURES—DUN

31.175c'

June 30

Unfilled orders

stored

——_

31.100c

Percentage of

„

goods

31.100c

——June 24
June 24'
June 24

—

MOODY'S

credits

foreign countries

—June 24

—

PRICES

Utilities

QUOTATIONS):

Public

30:

a.-,

—

shipments

335

June 23
June 23

.i—

corporate.

Railroad

March

BANK

Exports

Total

(New York)

YORK—As

OUT¬

RESERVE

—

(primary pig. 99.5%)

$296,197,000

347,864,000
13,793,000

ACCEPTANCES

FEDERAL

Imports

copper—

BOND

139

June 23

U. S.-Government Bonds—

Aaa

13,749,000

*141

PRICES:

(per gross ton)

Straits -tin

Average

$291,951,000

NEW

—

June 27

(per lb.)

Zinc (East St.

Aluminum

$285,603,000
350,432,000
14,818,000
28,599,000

DOLLAR

Manufacturing
143

—_

AND

refinery at
refinery at

MOODY'S

$195,116,000

OF GOVERNORS OF

May (000's omitted).-

Construction

(delivered)

fZinc

$226,367,000

535.000

408^000

——.——June 20

100—

(New York) at—(St. Louis) at

Lead

$215,964,000

8,651,500

THE FEDERAL RESERVE SYSTEM—Month

BANKERS'

122,862,000

—■

——

(per gross ton>—,

Export

229,600

356,831,000
233,969,000

June 25

*—.—

;

126,297,000

INSTITUTE:

Domestic
Lead

276,700

Domestic

$491,900,000

(tons)—

AVERAGE

COMPOSITE

Electrolytic

21,100

210,700

DEBITS -BOARD

723,738

June 25

;

(in 000 kwh.).

PRICES

METAL

7,126,900
6,876,200

26,900

therms)

(M therms
Manufactured gas sales (M therms)..
Mixed gas sales (M therms)

99,883,000

June 25

(COMMERCIAL

Pig iron

8,955,100

sales

gas

Natural gas sales

23,738,000

94,088,000

;

BRADSTREET, INC

Scrap steel

7,736,900
,7,503,500
'4
22,700

Total

187,973,000

23,212,000

592,001

ENGINEERING

—.

and lignite

ELECTRIC

Finished steel

176,069

S. BUREAU OF MINES):

SYSTEM—1947-40

AGE

139,910

145,721

BANK

DEPARTMENT STORE SALES INDEX—FEDERAL RESERVE

IRON

152,301

1,851,000

——June 25
:

Pennsylvania anthracite (tons)

FAILURES

Ago

175,108

Domestic

(-State and municipal
Federal

Electric output

Year

Month

156,700

6,575,000

—

Fulriic construction—

EDISON

AMERICAN GAS ASSOCIATION—For month Of
April: '

11,317,000

—
——June 20
(no. of cars)—June

construction

Bituminous eoal

of that date:]

are as

Production of primary aluminum in the U. S.
(in short tons)—Month of January!

26,701,000

1,864,000

7,215,975

Private construction

(U.

of quotations*

(BUREAU OF MINES):

STANDING

freight received from connections

COAL OUTPUT

ALUMINUM

AMERICAN. RAILROADS:

freight"loadisd (number of cars)

1,376,000

June 19

Revenue

Total U. 8.

2,653,000

;

Revenue

CIVIL

'2,486,000

June 19

at-

(bbls.)

Residual fuel oil (bbls.*) at
OF

cases

Month

51.0

7,009,575
8,020,000
28,667,000

ASSOCIATION

or,

Ago

93.7

7,016,325
!i8,000,000

oil

th&tdate,

either for tfaj

are

Latest

(bbls. of

fuel

Dates shown in first column

Year"

INSTITUTE:

42*J€«llons each)—
.——
June
Crude runs tq stills—daily'average (bbls.)
:
June
Gasoline output ,<bbls.)__
;
June
Kerosene output (bbls.)—.
;
:
June
Distillate fuel oil output (bbls.)
June
Residual fuel oil output (bbls.)
June
Stocks-at refineries, bulk terminals, in transit, in pipe line
Finished and unfinished gasoline (bbls.) at
-June
Kerosene, (bbls.) at
June
Distillate

§2,405,000

—,

Ago

"87.8

Stocks of aluminum (short tons) end of Jan.

(net tons)-

condensate output—daily average

Crude nil and
-

Month

Week-

§84.9

month ended

production and other figures for the

cover

Equivalent to—
Steel4ngots and castings

Week

——Julj*

556,000

541,930

2.332,000

1,972,784

INSUR¬
March

3,933

1,307

3,477

EXPORTS AND IMPORTS
CENSUS —Month
of April

omitted):

—

$1,465,000

|1,456,360

1,220,900

1,300,900

$1,529,800
1,056,800

The Commercial and

(34)

Financial' Chronicle

Thursday. July 2. 1959

•

★ INDICATES

Securities

Now

the basis

each share

of 0.525

held of

tures,

Proceeds—To

shares of additional stock

17,
share.

—

Freres

Inc., both of Denver, Colo.
Advanced

Inc.

Feb. 25 filed 1,431,200 shares of common stock (par $1),
of which 1,000,000 shares are to be offered publicly and

431,200 shares are to be reserved for sale to the holders
of 6% debentures due 1962 issued by DeCoursey-Brewis
Minerals Ltd., the company's parent (payment for the
shares by such debenture holder may be made by
delivery of debentures at par plus interest with premium
for Canadian exchange rate).
Purchasers will receive
common stock purchase warrants on all shares purchased
for the 6% debentures of the parent at the
for each five shares purchased. Price—$1.25
per share. Proceeds—For general corporate purposes and

rate of

one

working capital.
Alaska.

Office—423 Fourth

Ave.,

Anchorage,

Underwriter—To be named by amendment

Alden Electronic & Impulse

Recording Equipment

Co., Inc.
June 12 (letter of notification) 650 shares of convertible

preferred stock and 225,000 shares of class A common
stock (par $1).
Price—Of preferred, at par ($10 per
share); of common, $1.30 per share. Proceeds—For the
manufacture and purchase of electronic
recording equip¬
ment.

Office—Washington St., Westboro, Mass. Under¬

writer—None.

if 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

from

time

the

over-the-counter

(if the shares are listed) on the American
Stock Exchange at the then
prevailing market price.
Office—30 Verbena Ave., Floral Park, N. Y. Underwriter
or

—-None.

t—'1

—-

—

shares of

common

—

Lauderdale,

Underwriter—None.

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.
*

June

per

share.

Proceeds—To

;

common

assume

and

stock.
pay

held by its Mexican

Price—

option

subsidiary to purchase certain min¬
ing claims in the State of Durango, Mexico, owned
by
Compania Minera La Bufa, S. A., by
paying to such
company $50,000; to construct and place in
working oper¬
ation a mine, mill and accessories
capable of processing
100 tons of gold ore per
day estimated to cost $350,000;
payment of about $15,000 of other
obligations; to carry
on with the balance of the
proceeds an

exploration

pro¬

gram for additional gold and mineral
properties both in
Mexico and the United States. Office
Bank of the
—

Southwest Building,

Houston, Tex,

Underwriter-^None.

American Buyers'Credit Co.
Nov. 13 filed 5,000.000 shares of
comnion stock, of which
4,545,455 shares of this stock are to be offered for
public
sale at $1.75 per share. [Shares have been
issued or are
Issuable under agreements with
various policy holders
In American Buyers Life Insurance
Co. and American
Life Assurance Co. (both of
Phoenix) permitting them
to purchase stock at $1.25
per share.
Sales personnel
have been given the right to
purchase stock at $1.25
per share up to the amount of commission
they receive
on stock sales made by
them.] Proceeds—For

the opera¬
tion of other branch* offices, both in Arizona
and in other
states
Office—2001 East
Roosevelt,

derwriter—None.

for

the

on
one

basis

nine

Massillon

Ridge Avenue, Evanston, 111.

par (56^4 cents per share).
Proceeds—To purchase
cattle; for improvements; to buy additional .-ranch in
Queensland, Australia; and for other corporate purposes.

American

common.'

Office— '

Robert Kamon

Underwriter—None.

maining 166,354 shares

-V

■

Phoenix, Ariz.

Un¬

to be issued upon the exercise
Statement effec¬

options: Underwriter—None.
tive March 31.,
*

■

Baird-Atomic, Inc., Cambridge, Mass. (7/14)
June 17 filed 180,000 shares of common stock
'{par $1).
rice—To be supplied by amendment. Proceeds—To be
to .retire bank loans and for construction-of new

pl^spt facilities. Underwriter—White, Weld & Co.,? New

;

are

stock

★ American Photo Copy Equipment Co.
June 29 filed 1,200 participations in the company's em¬
ployees' common share purchase plan, together with
200,000 common shares which may be acquired pursuant
thereto.

L, Cisco, Tex. Underwriter—None.

is President.

Automatic Canteen Co. of America
/ ;
*
March 2 filed 292,426 shares of common stock, of
whjicb,
the company proposes to issue 126,072 shares to A.M.I.
Inc. for the latter's property and
assets, and the re¬

Inc.

25 filed 600,000 shares of common stock (par 10
cents), and 200,000 shares of 6% preferred stock (not par
value, $9 stated value). Proceeds-r-For construction'and
related expenditures. Office — 513 International Trade
Mart, New Orleans, La.. Underwriter—Lindsay Securi¬
ties Corp., New Orleans, La.

York.

•

★ American-Saint Gobain Corp. (7/29)
Ballard Aircraft Corp.
20 filed $11,221,500 of
subordinated convertible S'
April 17 filed 300,000 shares of common stock (par $1).
debentures, due 1983, and 544.314 shares of common
Price
$3.25 per share.
Proceeds —To develop and
Stock.
The debentures are to be offered to common :
manufacture aircraft embodying the bodyi lift
principle,
stockholders on the basis of $100 principal amount of*
etc.
Underwriter—Firm originally mentioned has with¬
debentures for each eight shares of common stock held
drawn. Office—1 Kennedy St. N.
WV, Washington, D. C.
on or about July 29,
1959; rights to expire on or about
N'^te—SEC held hearing June 18 regarding statements
Aug. 12, 1959. The common shares are to be offered to
in prospectus.
present stockholders on the basis of one new,share for
Bankers Preferred Life Insurance Co.
each 3 Vz shares held on or about July 29, 1959; rights to *
Jan. 30 (letter of notiifcation) 100,000 shares of common
exjDire on or about Aug. 12, 1959. Price—Tojoe supplied
stock (par $1.60). Price—$3 per share.
Proceeds—For
by amendment. Proceeds — For payment of long-term
expenses incidental to operation of an insurance com¬
debt and, in part, for plant construction. Underwriter—
pany.
Office—Suite 619, E. & C. Bldg., Denver, Cc':.
F. Eberstadt & Co.," New York.
Underwriter—Ringsby Underwriters, Inc., Denver Lk
Amican Petroleum & Natural Gas Corp. Ltd.
Colo.
'•
March 23 filed 745,000 shares of capital stock (no
par), <
Basic Materials, Inc.
/
of which 500,000 shares are to be sold for the account (
April 9 (letter of notification) 1,200,000 shares of com¬
of the company, and 245,000 shares by the holders there¬
mon
stock (par 10 cents). Price—25 cents per' share.
of.
Price—30 cents per share.
Proceeds—For explora¬
Proceeds—For mining expenses.
Office—c/o Harold A.
tion and development: program.
Office —2100 Scarth
Roberts, President, Arroyo Hondo, Santa Fe, N. Mex.
.Street, Regina, Saskatchewan, Canada.
UnderwriterUnderwriter—r Hyder, Rosenthal &
Co., Albuquerque,
Cumberland Securities, Ltd., Regina, Canada.
N. Mex.
...

June

—

Anchorage Gas & Oil Development, Inc.
May 27 filed 450,000 shares of common stock, part of
which will be offered, at a price of $1.50 per
share, to
stockholders of record June 1, 1959, in the ratio of one
new

share for each three then held.

Unsubscribed stock

Benson-Lehner Corp.
May 4 filed 89,620 shares of

Ave., Anchorage, Alaska. Proceeds—To discharge
bank loan; for drilling
an$ exploration; and for general
corporate purposes. Underwriter — National Securities

common

stock, of which

76,620 shares

are being offered for
subscription★>y com¬
stockholders of record April 30, 1959, on "the basis
of three hew shares for each 10 shares then held.
Rights

mon
<

and- the balance of the issue will be offered to the
public and to holders of stock options. Office—134 East

expire July-Tv Price—$6.75 per share to stockholders'. The
remaining 13,000 shares will be sold for account of selling
stockholders at

$7 "per share. Proceeds—For additional
working capital and' other general corporate .purposes,
including research and
development.
Office — 1860
"Franklin Street, Santa Monica. Calif. !
>•

Corp., Seattle, Wash.

Apache Oil Corp.
v
.
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
purchase of one share per right of the company's $1.25
par value common stock. Warrants evidencing the rights

Best wall

May
*'

general

corporate

purposes.

Avenue, Minneapolis, Minn.
APA, Inc., the corporation's subsidiary.

Office

—

Ohio, to residents of

mon

stock

(par

one

cent).

Price

Proceeds—For mining expenses.

—

•

Engineering Corp. (7/13-17).
May 28 (letter of notification) 150,000 shares of common
(par five cents). Price—$2 per share. Proceeds—
For working capital. Office—500
W. 18th St.,
Hialeah,
Fla. Underwriter — Charles Plohn
& Co., New York,
stock

N. Y.

and 20

shares of class A

common

stock.

—

Brew

(Richard

D.)

Co.,

Inc.,

Concord,

June 23 filed

110,000 shares of common stock {par SI),
of which 40,000 shares will be sold for
account of two
selling stockholders and the remaining 70.000 shares for

the

company's account. Price—To be supplied by amend¬
Proceeds
To repay
outstanding indebtedness.

ment.

*
-

—

Underwriter—Lee Higginson

Corp., New York,

Bridgehampton Road Races Corp.
Oct. 23 (letter of notification)
15,000 shares of common
stock (par $1) to be offered for
subscription by stock-holders of record Nov.

com-

Office—c/o Hepburn T

Astronautics

debenture

(7/20-24)

share
will

10 cents per share.

•

(letter

Proceeds—To pay obligations and
working capital. Office
1205 Oil Centre Station,
Lafayette, La. Underwriter—Syle & Co., New York, N. Y.

Armstrong, Round Up Heights, Cheyenne, Wyo. Name
changed to Wyoming Oil & Uranium Co., and BrunoLencher, Inc., Pittsburgh, has withdrawn as proposed
underwriter.

$500

•

Armstrong Uranium Corp.
Jan. 16 (letter of
notification) 3,000,000 shares of

Ardmore, Pa.

Concrete

for

High St.,
publicly offered

Price—$600 per unit.

Rights expire July 17, 1959. Unsub¬
shares will be offered to the public. Price—To

For

common

Co., Inc.
(7/6)
notification> $250,000 of convertible
debentures due July 1, 1969 and 10,000 shares of class A
common
stock
(par $1) to be offered in units of one

shares held.

—

June

523

per share; to public, $21.50 per share.
Proceeds—To repay 31/2% series A subordinated
deben¬
tures and for
working capital. Office—246 N.

Big Apple Supermarkets, Inc. (8/10) •
v \
June 24 filed 425,000 shares of common stock
(par 10
cents).
Price—$2 per share.
Proceeds—Expansion and
working capital.
IJnderwriter— Simmons & Co., New
• Bostic

Approved Finance, Inc.
3 (letter of
notification) 12,000 shares of common
stock (no par) being offered to stockholders of record
June 16, 1959, on the basis of one new
shafe for each

Columbus, Ohio. Underwriter
shares, Vercoe & Co., .Columbus,
Ohio only.
-

Office—120 E. Lancaster Avenue,

Underwriter—None.

York.

Underwriter—

stockholders, $20

...

•

five

400

•

June

scribed

Gypsum Co.
t leLtbr- of notification)

(par ;$1). Price—At the market on the New York
Exchange. Proceeds—To go to a selling stock¬

holder.
«r

16, 1960, and will
expire at 2:00 p.m., (CST) on Jan. 31, 1962.
Unless
Apache Oil Program 1960 commences operations on or
before June 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¬
Marquette

stock
Stock

will be nontransferable prior to
Aug.

ceeds— For

■

if America

Mines, Inc.
filed 150,000 shares of

Jan.

notification) 75,000

stock (par $1) to be offered for
subscription by stock¬
holders of record June 1, 1959 at the ratio of one new
share for each seven shares held. Price
$2 per share.
Proceeds
To increase inventory and to
pay accounts
payable. Office—1612 E. Sunrise Blvd., Fort

Fla.

Australian Grazing & Pastoral Co., Ltd. -v ;
13 filed 4,000,000 shares of common stock. Price—

•

Second

★ Aloe Creme Laboratories, Inc.
June 19 (letter of

Office—1301 Avenue

2020

Co.

★ American Investors Syndicate,

New York.

for cash

;

June

Corp., Millville, N. J. (7/13-17)
175,000 shares of common stock (par $1).
Price—To be
supplied by amendment.
Proceeds—To
pay demand bank loans of $300,000 and for working
capital. Underwriter—Auchincloss, Parker & Redpath,
Alaska Mines & Metals

common

June 18 filed

Co., New York.

ISSUE

Highway, Norfolk, Va. Underwriter—Palomb: Securities
Co., Inc., 37 Wall St., New York, N. Y.\
-

Rubber

Airwork

;

REVISED

: ceeds—For opening one additional trailer sales lot and
for construction cost of mobile home park. Address—3455

American Hospital Supply Corp."
April 20 filed 20,610 shares of common stock (par $2) to
be offered in exchange for common stock of Massillon

Research

Associates, Inc.
Dec. 1 filed 400,000 shares of common stock (par five
cents). Price—$6 per share. Proceeds—For research and
development program; and for equipment arid working
capital. Office — 4130 Howard Ave.; Kensington, Md.
Underwriters — Wesley Zaugg & Co., Kensington, Md.,
and Williams, Widmayer Inc., Washington, D. C.
Stop
order proceedings instituted by the SEC.

be applied in part to the repayment of
bank loans, and the balance will be used
for general corporate purposes, including/ investments
in subsidiary companies, to aid in their construction pro¬
grams. Underwriter—The First Boston Corp. and Lazard

outstanding

June

1959; rights
to expire on July 7. Price—£3.25 per
Proceeds—
For additional working capital.
Office—405 Exchange
National Bank- Bldg., Denver,
Colo. Underwriters —
Boettcher & .Co., Inc., and Bosworth, Sullivan & Co.,
record

ITEMS

• Azalea
Mobile Homes, Inc.
(7 14)
May 21 (letter, of notification) 300,000 shares of class A
common stock (par 10 cents).
Price—$1 per share. Pro¬

June

stock, (par 30
eents) being offered for subscription by common stockholders

SINCE
•

^American & Foreign Power Co., Inc.
30 filed $22,500,000 of convertible junior deben¬
due 1982.
Price—To be supplied by amendment.

Academy Life Insurance Co.
March 31 filed 316,000 shares of common

for

Registration

.J*

ADDITIONS

for

offered

1, 1958 on the basis of one new
shares held; Unsubscribed shares
current creditors in payment of all

four
to

part of claims, at the rate of

of claims

each

one

share for each
share.
—

Bridgehampton, L. I., N. Y. Underwriter
ing—Expected in July.
•

discharged; rights to expire about two weeks

after mailing of offer. Price—S4
To pay current creditors.
Addres.

P.
—

Proceeds—
O

Box-506,

None. Offer¬

British

Industries Corp.
(7/15)
24 filed 75,000 shares of common
stock {par 50
cents), of which 37,500 shares will be offered for 4he
account of the
company and 37,500 shares will be offered
June

for the account of certain

selling stockholders Price—To

Volume

The Commercial and Financial Chronicle

Number 5860

190

(35)

supplie&vby .amendment* Proceeds—For,..working" cap-7
if Capital Fund, of Canada, Ltd., Toronto, Canada
ital; Underwrtter^Emanuel, Deetjeni,&;-do,, New York. s June 30 filed! 1,000,000 shares of common stock/ Price—
if Brockton Taunton Gas Col

(7/29)

June 29 filed.; 37,268 shares, of-common..stock, 'toT be of¬
fered for-subscription by common stockholders of record :

basis of one new share for each
eight shares 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¬
gram.: Office—178 Atlantic Ave., Boston, -Mass..- Under*,
writer—The First Boston Corp., New York..
29.

July

1959,

the

At net asset value. Proceeds

writer—Carl M.

Central American Mineral
Resources, S. A.
May 27 filed 620,000 shares of common stock, of which
500,000 shares are to be offered for the account of the
-

finance

acquisitions

Office—161

(par $1).
of

All

of the preferred shares and 99,299
stock

common

will

issued

other

65,000 common

reserved

are

Employee Restricted Stock

under

—None.

the!

issuance

for

Options! Underwriter

v/// '/'/ V

/A'

A 2\ .2

Buckingham

(Wednesday)i.;F.F'F ■;'

Central Telephone Co.

;

other

corporate

Rosarita

(Thursday)

";r Wis.

■"

Financial

SCats &

July 9

$z99,999

(Bids 11

July

Airwork

July 3' (Friday)

Griggs Equipment

Tut'J.er,

Inc.)

(Monday)

July 6

Lansley & Co.)

DIT-MCO, Inc.

Co..

First National Life insurance
&

(Blair

Ideal Precision Meter
Charles

.Common

(Phinc.

Webber,

Jackson

(Pa:nf.

100,000 shares /"
.........Common

$.300,000

Inc.)

Campeau Co..

Voss

(Laircl

....•

Air

(Offering

Lines,

Newhard,

(■■ Aetna

Securities

Precision

Corp.)

"Standard Aircraft

$435,000

(Eastman

1.550,000 shares)

Equipment Co.,,Inc

W indow

$300,000

(Cruttenden.

Pouesta

(Cruttenden,

British

K>-

Barnes

Inc.;

Co,,

Charles

Plohn

Securities

Tempi eton." Damroth

Tollycraft

(Charles

Worthingrcn

°lohn

Products;
<

Hunter

Marshall

(Eastman

Bonds

(Francis.I.

Dc behtftres

Co. )• $150,000

Seeburg

."3*

American-Saint

Co.----—!-

Telephone

Webber, Jackson &

Co., Inc.)

Crosby-Teletronics
Myron

Fanon

$2,000,000

Co. i

Distilling
(Fulton

—

(Offering

Co.)

•

Narda

Products,

(Blair

Paco
(A,

Pan

Law

Shearsju,

Hammili & Co.)

Torpie

Varian

(Dean

(Bids

$1,500.000•

20,000

—(Bui/)

Northrop

Corp. 'ul-:

(William

—

Common

(Bids

&;
■

Taft

Co.

and

Cable

Blyth

Reading Tube

Co.,

$3,600,000

Putnam

Co.)

40.000

20.000

Broadcasting Co.______
_,.,Tr__.Common
'-Hzrrlman Ripley & ca: inej 483,33? shares

July 8

Brew
—

•

Common
Dominick

(Eastman

Dillon.

Union
&

Se'cuiities

Co.)

Co.

3.000.0GG

and

William

Micronaire

Electro

Cook

Medical

Corp.

Newport

Co.)

.Sfi.QOO.OOO-h-A
Products -

—_u__.Com. antFVVar.
•

Otneril

Electric

I^ve8Lin^...Corp.)

$5,500,000

Co._____hi._Li:i_-

(Oii'erinr to

Securities

Corp.)

13,101

..Common
°tone & Webster

Atherton

and

Co.

Stoats

Mallinckrodt Chemical Works___i.t.__ -iDebentuittts
(Newhard.

Plohn

Common"

(Fulton

Neiman-Marcus

Reid

Inc.)

(Offering

133.800

Allen

(Lee Higginson Corp.

$175,000

Co.——Common

350,000

Common

Co.,

Inc.)

50,000

368,571

Co.)

Bond*

Invited)

$15,000,000

(Wednesday)
invited)

-—Debentures

$10,996,000

(Monday)

&. Co.)

August 28

Inc.-—

$850,000

(Friday)

Common

(Purvis & Co. and Amos C. Sudler & Co.)
«.

Great

$1,500,000

Wesfqrn Life Insurance Co

Lunt

Common

(Offering to stockholders—underwritten by G. J. Mitchell Jr. Co.
and Purvis <fc Co.) 500,000 shares

September 17

—^..xCommoii
and Sterh, Bros. & Co.)'318,736 shares
:

(Tuesday)
Co

Common

stockholders—underwritten
and

Strategic Materials Corp

Wilcox Electric Co__:

Inc.)

..Common

Brothers)

(Simmons

43,500

Co.

(Lehman

Corp.)

August 10

$300,000

——...Common
Co.,

Co.)

(Monday)

Big Apple Supermarkets, Inc.__2————Common

:—--Common

Drop Forge Co

Netherlands Securities Co.,

SI,320.000

Park

Electric

(Bids

110,000 shares',
Co. >

-..^Common

Pacific Power & Light Co.-JT.

Faradync Electronics Corp
(Charles

Common
$285,000

Corp

August 5

Engineering Associates, Inc.--_-_i-!Common
(.Sehirmer,

Common

Co.)

Accident Insur.

Blauuer

(Bids

05,930 shares

(Lee(Higginson Corp.)

Carter

August 4

(Wednesday)
Corp.-,

Pennsylvania

July 20 (Monday)
(Richard D.) & Co., Inc

Corp

Securities

Microwave
(Milton

—Common

stockholders—underwritten
Dominickt

Life &

(Equitable

Narda

Debentures

Dominickt

Bonds

$3,000,000

(Thursday)

August 3

Polymeric Chemicals, Inc

(Offering

invited)

Corp

...Common

to stockholders—underwritten

.First Charter Financial

(Doininick

Dunn

(Gates,

Interstate

Polymeric Chemicals, Inc.__.

Inc.)

Corp.___

Common

$4,000,000

Co.)

Tuna

(Emanuel, Deetjen & Co. and Bachc & Co.) $5,OOO.OGO

U. S.

^Debentures
&

$16,962,100

EDT)

a.m.

^Offering

...2.

$10,000,000

Wird

S6.015.000

—-

Staats

Plastic

EDTi

noon

Witter

Weeks)

(Birkenmayer

International

July 16
(Thursday)
Missouri 'Pacific Ry._________i___2Equip. Tr. Ctfs.

Northern Pacific Ry——_--2L2-____.Equip. Tr. Ctfs.
.

20,000

July

Debentures

(Dean

Co.i

Airways, Inc.—.Debentures
&

Hickerson Bros. Truck Co., Inc

$15,000,000

——

Witter

Weld & Co.)

Preferred

__^

Saltzman)

Associates

—.—Common

Clark, Landstreet & Kirkpatrick, Inc.)

American World

—Debentures
Co.)

Securities..&

$750,000

Public Service Co. of New Hampshire.,

——.—Common

Associates

Common

—

Ultrasonics Corp.____

Union

Brothers)

Inc

Co. and

Hornblower

Debentures

Corp.

Plywood

(Offering to stockholders—underwritten by Lehman Brothers &

by White,

500,000

.Common

Products,

Common

Inc.)

200,000

(Canada).-Debs.

165,000

50.000 she.res

Inc

Co..

Boston

Common

(Vermilye

Debens.

Common
& Co.)

•

The First

37,268

Inc

Matronics, Inc.

$690,000

...Common

—

Dillon.

S2.000.00Q

Common

(F. S. Smithers & Co.)

Magnuson Properties,

—

Varian

$450,000

Co.

States

Inc.)

Co..

stockholders—underwritten

$250,000

Co.)

& Co.)

Debentures

Notes
&

Corp.)

Hexcel

$300,000

Corp

Co
Reid

...iCommon

Lomasney

Common

$11,221,500

Ferman & Co., Inc.)—_

50,000

Corp.

(Eastman

$313,750

Industries'-,'-Inc.—

Insurance

United

ft/SSI''

Common
&

(L. D. Sherman & Co.;

Corp.
Lomasney

Electronic

Mission

Loetvi

and

$3,000,000

Brockton Tauntom Gas Co

(Offering, to stockholders—underwritten

—Preferred

Curtis

Co.)

(Offering to stockholders—underwritten by F. Eberstadt & Co.)

Barton

(Glore, Forgan <fe Co. and Rawles Winston & Co.) 200,000 shares

iFarne.

(Wednesday)

Gobain

75,000

Class A

Corp,)

Tuboscope Co. 2

—

Securities

544,314

.Common

Pont

Debentures '

Union

American-Saint Gobain Corp

Common
Co.)

Lomasney

Dillon,

(Offering to stockholders—underwritten by F. Eberstadt

Furniture Corp

$1,440,000

(Tuesday)

-July 29

75,000 shares

$8,000,000

(The First Boston Corp. and A. E. Ames & Co., Inc.) $50,000,000

Rowe

Common

Lomasney

Corp

Inc. and Netherlands Securities Co., Inc.)
$1,000,000

Seiberling Rubber Co

Common

180.000 shares

Quebec Hydro-Elec. Commission

150,000 shares

* Shares, Inc
Common
(White, Weld & Co. and Dean Wit-.er & Co.) 1,100,000 shares

$300,000

(Wednesday)

Industries
<D.

Co.)

(Monday)

July 28

Corp.__

Energy

$5,135,000

'Central

and
^

Common

Winston & Co.,

Colonial

(Offering not underwritten) $500,000

1—Common

(Tuesday)

vJuly 7

and

(Thursday)

July 27
(J.

Mountain Development Corp.

3*8-

__ _ ___

Inc.)

EDT)

a.m.

Securities

(Myron

Hudson Radio & Television

..Common

Co..

Co.)

Dcetjen

July

(Tuesday)

Investors Funding Corp. of New York

.....Common

Inc.-222*2

& Co., Paine, Webber, Jackson <fe Curtis
Hayden, Stone & Co.) $750,000"
'

$1,000,000

Laboratories, Inc

2—

Co.)

Fernekohl &

Hofman

————Common

Inc.

Curtis

Debentures

Rothschild

Debentures & Common

$135,000,

Electronics,

Paine, Webber, Jackson &
Stone & Co.) 40,000 shares

(Blyth & Co., Inc. and Schwaoacher

Cosco, Inc.

(Myron

Sniitlierhi'Co.; Inc.) $286;000

Z;lka.

Hamilton

_x-Coinmon

-2_—

Corp.

Wellington

Co.)

Dillon, Union Securities & Co.)

(City

$412,500

Corp.—

(Hctker

;2'

Inc.)

$750,000

Netherlands

and

Co.

Co.,

$330,000

Tape Cable Electronics Co., Inc,
v

Co.,

$360,000

_h__.

.••

Tang Industries,-Inc.i__——______u_-ACommqn
(David

Raytherm Corp.

Inc.)

•

Business, Inc.-

$500,000

Co. )

Co.)

(Joseph Mandell & Co., Inc. and Robert L.

Class A Common
Pooesta

Inc.

(Emanuel,

$500,000

Co.)

Cigar Corp.

Industries

Funds for

■:,

.Preferred

Superior Window Co

Rothschild

Corp.

Inc.)

Winston & Co.,

Homes, .Inc.2

July 15

Cortinwm

Co._

Haydon,

..Common

(Bids

Common

Corp

(Adams & Peck >

(L.

Jersey Central Power & Light Co

Common

•'(•■Maltz, Greenwald & Co.)

Superior

Cook

Securities' Co., Ihh.)

Co., Inc
Creek

Common
952,033 shares

___ClasisA

Common

Co., Inc.) .90,000

(White, Weld &

...

,.$875,000

-Silver

Common

and Netherlands

(Minn.)

Corp.

Pall

.Common

Mobile

Consolidated

Corp

(Charlea-PiOhn &. Co.

Plohn

Darlington

Baird-Atomic,

Yates? Heitner- & Woods) $631,084

and

Electronics

Reheis

Corp.)

Co.

$750,000

(Offering to stockholders—bids to be invited)

Pall
•

...

Securities Co.,

and J. A.

(Pnlombi -Securities

Inc.._—_—Common

stockholders—underwritten

to
Co.

Precon

$200,000

Corp

Common
Inc.)

Co.,

Common

July 14
Azalea

Co.I

Preferred

Industries, Inc
(Amos Treat &

--.Debentures

Netherlands

Peabody &

(Hill,

Oklahoma Cement Co.——cDebentures-Common
Ozark

(Tuesday)

Northern States Power Co.

$4,505,600

Corp.__

(Kidder,
Oil Co

„Coirqnon

Corp.../

Design

(Charles

$17,150,000

Curtis)

page

(White, Weld & Co. and Stone & Webster Securities Corp.)
$15,000,000

Medearis

......Common

$300,000

—Common

Jackson & ..Curtis)

Webber,

National Citrus

and

•

$300,000

Trans-Sonics, Inc.

Michigan Seamless Tube Co

or maintain the
working capital of the com¬
but will be initially applied to the reduction Of

Common

international Recreation Corp

To increase
pany

July 22 (Wednesday)

Lieco, Inc.

Radar

$015,025

Co..)

1, 1959. Office
St., Milwaukee, Wis. Underwriter—None,

★ Citizens' Acceptance Corp.
;
June 29 filed $600,000 of series F 6%
five-year subor¬
dinated debentures, to be offered to the.
present holders
of the 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
offering. No bonds will be reserved for this exchange
-offering. Price—100% of principal amount. Proceeds—

Debens. & Com.

Co.)

.(Netherlands Securities Co., Inc.

$900,000

Co.,.Inc

Plohn

Co.

Co.„______Common

Inc.)

Co.

& Cable

Offer expires on or before Aug.

Water

$375,000

10,000

inc.)

Common

Fuller

120,000 shares

._J2—

(Midland Securities

Wire

(Charles Plohn

$6,000,000

Inc.__ ._2

(May

Jefferson

Common

633

(Monday)

Leasing Corp.2___

Com.-aiul Debs.

Co.

nance

Transcontinental Gas Pipe Line Corp

Parker & Redpath) 175,000 shares

(S.

May 21 (letter of notification) 11,116 shares of common
(par $2) being offered on a share-for-share ex-,
change basis to stockholders of Milwaukee Loan & Fi¬

stock

Bonds

(Charles Plohn & Co.)

Industrial

Co., Inc

St.,

Underwriter—None.

Civic Finance Corp.,

July 21

Astronautics Engineering Corp

Co.) '$250.000runits

(Syle &

„.

Clifton Precision Products

EDT)

a.m.

Dilbert's Properties,

Bostic Concrete Co., Inc.
,

18,891

Price—
Proceeds—For purchase and development
properties and for working capital. Office

share.

—Chattanooga, Tenn.

—Common

_______

(Auchincloss,

Inc.—_2_r222—2A//ACommon

Guerin

(Eptlrr.

Corp.

per

(Thursday)

Light, Heat & Power Co
:

$20

CALENDAR

(Kidder, Peabody & Co.) 300,000 shares

7:. "

Common

Co J

12th

Development Corp.

Continued

Federation, Inch:

'William

South

Industrial

ISSUE

Mexican; Foods,; Inc..__

Office—144

purposes.

-Lipcoln, Neb. Underwriters—Paine, Webber, Jackson &
/Curtis, New York; and Loewi & Co. Inc., Milwaukee,

Union

JuSy 2

(7/7)

Co.; for construction expen¬
ditures; for investment in stocks of subsidiaries; and for

250,000

•

from Central Electric & Gas

&, Co,)

capital.

($25 stated value). Price—$25 per share. Proceeds—To¬
gether with other funds, will be used to repay advances

Transportation; Inc._2—~_ -CommoH

(Cr.:fi'oil(len,; Foocsta

working

...

NEW
A','2 July

increase

June 5 filed 80,000 shares of cumulative preferred stock

connection 2

certain .acquisitions .of fciusinesses and,- assets;

with

and

East 42nd St., New York, N.'Y. Underwriter

—None.

Chattanooga

march 25 filed 37,500 shares of common stock.
'

of industrial

company and 120,000 shares for the account of certain
selling stockholders. Price—$1 per share. Proceeds—To

Buckeye Corp., New York
April 28 filed 192,039 shares of 5%,: convertible preferred
stock, series A. (par $10) and 164.299 shares of common
stock

Under-

Loeb, Rhogdes & Co., New York.

(

For investment

—

Georgia

(Thursday)

Power Co
(Bids to bo invited)

$18,000,000

The Commercial and

(36V

Continued from page

Crusader Oil & Gas Corp., Pass Christian, Miss.
May 26 filed 1,500,000'shares of common stock, of which
641,613 shares will be offered on a one-for-one basis to
stockholders of record May 15, "1959,
The remaining
858,387 shares will be offered publicly by the under¬
writer on a "beSt efforts" basis.
Price—To be supplied
oy amendment. Proceeds—For repayment ojE notes and
for working capital. Underwriter — To be supplied by

Pjirt of the pro¬
used to retire outstanding subordi¬
debentures not exchanged.
Office—Georgetown.

nated

Del.

also

Underwriter—None,

(7 6-10)
June 11 filed 128.000 shares-of common stock (par SI),
of which 50.000 shares are to be offered for public sale
bv the company, (plus an additional 8.000 shares to be
offered to officers and enfployees): and the remaining
70 000 shares will be offered for the account of a selling
©toekhblde*. Price—To' be supplied by amendment. Pro¬
ceeds—To prepay. vS390.dOO of 8% first mortgage serial
bonds, to defray-the cost of an addition to the company s
Clifton Heights plant, for the purchase of additional
manufacturing and engineering equipment, and the bal¬
ance for working capital.
Office — Clifton Heights. Pa
Underwriter—W. C. Langley & Co., New York.
Clifton

Precision Products Co., Inc.

ColoniaLEnergy Shares, Inc., Boston,
v..
(7 28)
;

Price—No

stock to

June

contracts

1959, ori the basis
then held with

stockholders

one

record

share for each

new-

10,

16th

received
•,

& Co.. New York, and Dean Witter &
Co., Los Angeles, Calif.
8

—White, Weld

• Equ.ty

connection

therewith.

Underwriter—

June

below.)

of notification) $220,000 of 6% unsecured
1,100 shares of common
(par $1) to be offered in units of $200 of deben
and one share of stock.
Price — $205 per unit

Commerce Oil

capital.' Office—Suite

Price

12,000

-timp

Corp.

Knudson & Co..

•—to

selling stockholders. Underwriter—Eastman
DilloaSjJnion Securities & Co., New York.

Industries, Inc.
April 30 (letter of notification) 80.000 shares of 6% con¬
vertible preferred stock (par $3.50) and 80,000 sharbs of
common stock
(par 10 cents) to be offered in units of
©ne share oi preferred and one' share of common.
(Pre¬
ferred stock may be converted into two shares of com¬
mon stock at any time.)
Price—$3.75 per unit. Proceeds
—For development of gas properties. Office—908 Alamo
National Bank Building. San Antonio, Texas.
Under¬
writer—Frank Lerner Co., New York, N. YT. Offering—
Temporarily suspended by the SEC.

—

mon

—

Crescent Petroleum Corp., Tulsa, Okla.
Ma;v 26 filed 43.460 shares of 5% convertible pfd. stock
<$25 par; and 12,559 shares of common ($1 par), 34,460
.

the-

upon

assets

1958.

are,

the exercise of stock options granted when
Norbute Corp. were acquired on Aug. 6,

Underwriter—None.

•

Crosby-Teletronics Corp. (7/7)
Ma? 22 filed 250,000 shares of common

cents). Price—$3.37la

per

share.

stock

(par 25
Proceeds—For general

corporate

purposes.
Offiee—54 Kinkel St., Westbury,
I., N. Y.
Business—Designing, manufacturing and
conducting research and development of highly tech¬
nical and specialized electrical and electronic
equipment.

Underwriter—Myron A. Lomasney & Co., New York.
Crowley's Milk Co., Inc.
26 filed 60,(300
outstanding shares of common
•tock (par $20). Price— To be
supplied by amendment.
Proceeds—To selling stockholders. Office—145 Conklin
"Ave., Binghamton, N, Y. Underwriter—None.
March

common

subscription by stock¬

the basis of

one

new

Rights expire Aug. 25,
Unsubscribed shares will be offered to the
public.
per share.
Proceeds—For working capital.
Office—640 Minnesota Ave.. Kansas' Citv. Kan. Under¬
writer—None.
1959.

Price—$150

Office

—

Engineering Associates, Inc. (7/20)
15 (letter of
notification) 100,000 shares of com¬
stock (par $1). Price—$3
per share. Proceeds—For
225

O'Brien

make

loans

automobile

pur¬

chases to people engaged in the field of education and
for expansion of the
company's capital structure. Office
J—1704 lltll Ave., South.
Birmingham, Ala. Underwriter

Brooklyn,

Newark, N. J.

Co., Inc., both of New York.

(letter of notification) 1,531 shares of common
(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
stock

rata basis of one-half share for each share now held. Un¬
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.

• Federal Equipment Co.
May 22 (letter of notification) 100,000 shares of common
(no par). Price—$3 per share. Proceeds—To ac¬
quire all of the capital stock of Byer's Lumber Co., Inc.
and for
working capital. Office—North West & Lincoln
Sts., Carlisle, Pa. Underwriter—Winslow, Cohu & Stet¬
son, Inc., New York, N. Y. Offering—Postponed indefi¬
nitely.
•
stock

Highway, Cam--

for

Berriman .St.,

May 19

Proceeds—To

Office—98

Farmers Mutual Telephone Co. of Clarinda

Underwriter—Schirmer, Atherton &

5%
multiples

$50.

Electronic

fried

Faradyne Electronics Corp.,
(7/20-24)

curities

Broad

Educators Investment
Corp., of Alabama
8 (letter of
notification) $250,000 of 15-year
general obligation debentures to be offered in
of

Washington,
W., Washing¬

(par five
cents). Price—$6 per share. Proceeds—To be used for
purchase and construction of machinery and equipment.
Underwriters—Charles Piohn & Co. and Netherlands Se¬

&
Streets, Philadelphia, Pa. Underwriter—None.

—

June 23 filed 220,000 shares of common stock

stock

June

issuable

various acquisitions.

Co., Boston, Mass.

•

Broadway, Kansas City, Mo.
Under¬
Co., Inc., Kansas City, Mo.

Office

Inc.,

Underwriter—L. D. Sherman & Co., New York.

Securities

working capital.
bridge 41, Mass.

"300,000 shares of common
par
($1 per share). Proceeds — For
tease, labor, equipment, etc. Office—30912 S. Third St.,
Das Vegas, Nev. Underwriter—None.
Price

for

Fanon

receivable.

common

Dunn

June

.Crescendo Oil Co., Inc.
June 1 (letter of notification)

Ctoek.

(par 50
cents). Price—$3 per share. Proceeds—For acquisition
of undeveloped real
estate, for organization or acquisi¬
tion of consumer finance
business, arid balance to be
used for working capital.
Underwriter — Investment
Service Co., Denver, Colo., on a best efforts basis.

•

__..

Diversified Inc., Amarilio, Texas
6 filed 300,000 shares of common

used

Distributors,

ing capital to finance increased inventories and accounts

outstanding

Jan.

Underwriter—ESA

Industries, Inc. (7/7)
/
150,000 shares of common stock (par 20
Price—$3 per share. Proceeds—To retire an out¬
standing bank loan; and the balance will provide work¬

(7 6-10)

30,000

Office—911

Chestnut

CO cents per share. Proceeds—For exploration program.
Office—2100 Scarth St., Regina, Saskatchewan, Canada.

Regina.

filed

Inc.

cents).

May 22; filed $2,000,000 of partnership interests, to be
offered in units. Price—$10,000 per unit. Proceeds—To

Price—

also

•

Office—93-02 151st
Underwriter—S. D. Fuller & Co.,

New York.

Fund,

May 29

working capital.

DIT-MCO, Inc.

Mutual

Woods, St. Louis,

Drexelbrook Associates

Consolidated Petroleum

Ltd.,

for

writer—Midland

(7 14)

Securities

and

Street, Jamaica,'N. Y.

ers.

Sgjftws nnn shares of outstanding common stock
cps+fiZiPrice—To be supplied by amendment. Proceeds

Underwriter— Cumberland

contracts

on
a
one-for-one basis.
Equity
of. 2,399,504 shares of Development

and

Office—1028 Connecticut Ave.,
ton, D. C.

stock.

stock, only about 16,000 ^hares are to be offered.
Price—$10.50 per share. Proceeds—To selling stockhold¬

shares of 6.12%

stock.

it ESA

cent) to be offered in units consist¬

one

owner

June 29 filed 2,000,000 shares of
capital stock. Price—To
be supplied by amendment.
Proceeds—For investment.
Investment Adviser—Yates, Heitner &
Mo.

April

common

Seattle, Wash. Underwriters

•

9?,

Cree Mining Corp. Ltd.
April 17 filed 260,000 shares of

therefor,

common

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.

partnership interests.
For purchase of the

—

Price—$51.20 per unit. Proceeds—For
repayment of notes: to develop and construct shopping
•centers
and a super-market under
existing purchase

Cigar

(par

proposes to offer 500,000 of such
the holders
of Equity
General common in
exchange therefor, on a one-for-one basis. The Board/
of Directors of Equity, General has authorized the issu¬

common

Corp.
together
with

shares .to

Corp.

ing oi' $50 principal amount of debentures and 12 shares

presently outstanding preferred stock. Office—3023 Favnam St.! Omaha, Neb.
Underwriter — Wachob-Bendev 1
Cbrp., Qimha, Neb.
Consolidated

unit. Procpeds

per

General

„

stock

mon

•senior cumulative sinking fund preferred stock, series A.
Price—At par ($25 per share). Proceeds—To retire the

•

Equity

Dilbert's Properties, Inc. (7 13-17)
June 11 filed $4,400,000 of 20-year 5*72% convertible de¬
bentures, due July 15, 1979 and 1,056,000 shares of com¬

(letter of notification) 900,000 shares of com¬
mon
stock.
Price—At par (10 cents per share).
Pro>s
ceeds—For- investment. Office—450 So. Main St., Salt

^ Community Credit Co.
22 (letter of notification)

(See

Securities, Inc., and Hechler-Weintrow Securi¬
,/.

ties, Inc.

f«ake City, Utah. Underwriter—Earl J.
Salt Lake City, Utah.

issue.

Dexter Horton Building in

Commercial Investors Corp.

June

—$5,000

—Lifton

Refining Corp.

Of stock and $100 of debentures
nine shares of stock
rtfee—To be supplied by amendment. Proceeds — T»
construct refinery. Underwriter—Lehman Brothers, Ne*
York. Offering—Indefinite.
-

Registered
/

June

Deg* 16.1957 filed $25,000,000 of first mortgage bonds dut
Sept. 1, 1968, $20,000,00 of subordinated debentures du«
Oct. 1, 1968 and 3,000,000 shares of common stock to b»
offered in units as follows: $1,000 of bonds and 48 share#

tfov.

Dexter Horton Realty Co.
15 filed $977,500 of limited

421, 901
Sherman Street, Denver, Colo. Underwriter—Associated
Securities 412 Main Street, Cedar Falls, Iowa.
working

exchange

Corp.

Feb. 25 (letter

Underwriter—

General
filed

General is the

debentures due April 1, 1964 and

Development
Corp. of
registration statements seeking registration
securities, as 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

* Development Corp. of America

Proceeds—For

None.

Stock

W., .Washington,

America,

Policies.

year for annual premium
$1,500 for single premium
investment, etc. Office—2480
a

than

the

consummated

Colorado Water & Power Co.

$12(3

less

Proceeds—For

Street,

June

DC A common stockholders in connection
recently consummated merger of Real Estate
Equities, Inc., into DCA and the plan of reorganization

with

than
no

•

None.

Development Corp. of America
April 30 filed 1,376,716 shares of common stock (par $1)
reserved for issuance upon conversion of shares of the
company's $1.25 cumulative convertible preferred stock

Mass.

less
and

contracts.

oversubscription privilege. Rights ex¬
July 17, 4,959. Price — At par ($10 per share).
Proceeds—For a construction program. Office—112 W.
Elm St., Sycambre, 111. Underwriter—None,

pire

Thursday, July 2. 1959

Equity Annuity Life Insurance Co.
April 21 filed $1,000,000 of Variable Annuity
common

offered

Enamo-Bord Products Inc.

DeKalb-Ogle Telephone Co.
May 27 (letter of notification) 19,822 shares of
be

May 14 (letter of notification) 61,708 shares of class A
common
stock (par 50 cents) to be offered to stock¬
holders. JJnsubscribed shares will be offered to the pub¬
lic. Price—$2.50 per share. Proceeds—For
working cap¬
ital and to obtain new
dealerships. Office — East 2626
Trent Ave.,
Spokane, Wash. Underwriter—Pacific InterMountain Securities, Inc., for any publicly offered
shares..

amendment.
,

May 5 filed 1,100,000 shares of common stock.
Price—
At market.
Proceeds—For investment.
Underwriters

tures

Financial Chronicle

• Fidelity Investment Corp., Phoenix, Ariz.
1,799,186 shares of class A common stock,
of which 1,700,000 shares are to be offered
publicly, and
-the remaining 99,186 shares have been subscribed for
June 29 filed

in consideration

—None.

company as

Electric City Supply Co.
April 6 (letter of notification) 300,000 shares of class A
common stock
(par 25 cents). Price—$1 per share. Pro¬

has

agreed

class B

for services

reqdere^ in organizing the.

incentive to management. The company
the organizers 200,000 shares of

issue to

common

stock;

and

100,000 class B shares have
keep personnel other than"

been set aside for issuance to

ceeds—For

inventory, equipment, working capital, etc.
Office—901 S. Lake Street,
Farmlngton, N. Mex. Under¬
writer—Investment Service Co., Denver, Colo.

the organizers. Price—To
public, $3 per share. Proceeds
—To be applied to pay interest due on

★ Ellis Research

writer—None.

pruchase

Laboratories, Inc.

•

stock

the

for each three
stock

basis

one

shares of series

held; unsubscribed

share
1

series

and/or series 2

holders.

Rights expire 30 days from offering date.
Price—$1 per share.
Proceeds—For working capital.
Office—333 S. Farish
Street, Jackson, Miss. Underwriter
—None.

•;

Emery Industries, Inc.
May^21 filed $6,103,700 of
nated debentures due

convertible

subordi¬

July 1, 1979, to be offered for sub¬

by common stockholders of record June
1959, at the rate of $100 of debentures for each

eight

shares of common stock then
heldrights to expire on
June 30. Price—At par. Proceeds—To
repay outstanding
bn»*>lr loonn onr?

#->»•

-1

and

for

working

...

""'o0

Tower, Cincinnati, Ohio. Underwriter—None.

capital.

St., Los Angeles, Calif.
Peabody & CoM New York.
First Boston
June 2

Office—210

West

Underwriter—Kidder,
-

Commodity Fund
(letter of notification) an undetermined number

of shares of beneficial

interest

(no par)

Proceeds—Ap-

proximately $100,000 to invest in the commodity mar¬
ket. Address—P.
Box 67, Boston, Mass. Underwriter
—None.

;

First Charter Financial
June 11 filed
3,000,000

scription

Carew

loan

Seventh

shares to other stock¬

is to be offered for the account of the
company

and the balance for certain selling stockholders. Price—
To. be supplied
by amendment. Proceeds—To repay a

for^ subscription

by stockholders
common

ment)
,

bank

Emerite Corp.
Jan. 19 (letter of
notification) 250,000 shares of series 3
common stock
(no par) to be offered

properties and to
properties and for working capital. Under¬

Financial Federations, Inc.
(7/9)
May 27 filed 300,000 shares of capital stock (par $1). A
portion thereof (unspecified; to be supplied by amend¬

June

8 (letter of
notification) $195,000 of 5-year 6%
convertible debentures to be offered in denominations of
$100, $500 and $1,000 each. Debentures are convertible
into common stock at
any time at $5 per share. Price—
At par. Proceeds—For
working capital. Office—-8 First
National Bank Bldg., Butte, Mont.
Underwriter—None.

new

(7/8)
outstanding shares of common
stock, (no par). Price—To be supplied by amendment.
Proceeds
To selling stockholders.
Office —110 North
Doheny Drive, Beverly Hills, Calif.
Underwriters —
Eastman Dillon, Union Securities &
Co., New York; and
William R. Staats & Co., Los
Angeles, Calif.
Corp.

—

First National Credit
j

stock

Bureau, Inc.
a nnn

shares of

common

(par $1) to.be.offered for subscription by stock-

Volume

Number 5860

190

...

.The Commercial and Financial Chronicle

holders

employees! Price—At the market. Office—

and

804 American

Title

change.

Bldg., Detroit, Mich. Underwriter—

the

None.

(37)

First National Life
filed

Insurance Co.

shares of

75,000

(7/6)

(par $4).

Camelback, Phoenix,
Co., Inc., New York.

Office—1230

East

Underwriter—Blair &

stock

are

holders of Glen Falls.
current market

Exchange.

received

Price—To

selling

Ga.

V.-'.

Packing Corp.
y
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¬
chasable upon exercise of the warrants. Price—$1.25 per
18 filed

share.

Proceeds—For

equipment
purposes.

repayment of debt; purchase of
facilities and other general corporate
Office—614 Broad St>., Utica, N. Y. Under¬

and

writer—Mortimer B. Burnside & Co., New York. Name

Under¬

Change—Formerly Eastern Packing Corp.

Government

June 13 filed
Price—At

Balanced

Fund,

100,000 shares of

market.

Inc.

2,500,000 shares of common stock (par $1)
by company viz: (1) to holders of common
(par $4) of Government Employees Insurance Co.,
on the basis of one 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 lk warrants per share
of stock held (216,429 shares are now outstanding); and
(3) to holders of common stock (par $5) of Government
Employees Corp., on the basis of lk warrant per share of
stock held (as of Dec. 31, 1958 there were 143,703 shares
of stock outstanding and $589,640 of 5% convertible cap¬

stock

common

Proceeds—For

stock

(par $1).

investment.

Office—

418 Union

St., Nashville, Tenn. Investment Adviser—J.
C. Bradford & Co., Nashville, Tenn. Distributor—Capital
Planning Services, Inc.
Foundation Stock Fund,

Inc.

June 18 filed 100,000 shares of common stock (par $1).
Price—At. market. Proceeds—For investment. Office—

ital debentures due 1967, convertible into shares of com¬
mon at $28.0374 per share.
If all these debentures were

418 Union St.,
C. Bradford &

converted

Nashville, Tenn. Investment Adviser— J.
Cm, Nashville, Tenn. Distributor—Capital
Planning Services^ic.
300,000 shares of com¬
($1 per share).^Proceeds—For

stock. Price—At par

working capital. Office—100 E. Minner St., Oildale, Calif.
Underwriter—None.
•

Funds For Business,

Inc.

stock prior to the record

common

date,
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.,
Washington, D. C.; Eastman Dillon, Union Securities &
Co., New York; and Abacus Fund, Boston, Mass. Offer¬
ing—Indefinitely postponed.

Fran-Well, Inc.
May 25 (letter of notification)
mon

into

total of 164,733

Grace

(7/15)

common

(W. R.)

& Co.

/•

May 8 filed 500,000 shares of class A stock (par 50 cents).
Price—$1.50 per share. Proceeds—For working capital.

June 16 filed 126,000 shares of common stock to be issued
in connection with the acquisition by the company of

Office—120 East 41st Street, New York. Underwriters—
Joseph Mandell & Co., Inc., New York; and Robert L.
Ferman & Co., Inc., Miami, Fla.

Hatco Chemical Co.

Futterman-Dupont Hotel Co.
May 22 filed $1,706,900 of Limited Partnership Interests,
to be offered in units. Price—$25,000 per unit. Proceeds

tions to purchase 200,000 additional shares of outstanding

ic Great Western Life Insurance Co. (8/28)
29 filed 500,000 shares of common stock and

Plaza

Hotel

filed

Price—Par.

Proceeds—For

advances

unit

one

for

each

held,

Proceeds—For

loan

the

Griggs Equipment Inc., Belton, Texas (7/3-6)
(letter of notification) 18,891 shares of common
stock (par 50 cents). Price—At the market (estimated
at $6.50 per share). Proceeds—To go to a selling stock-holder.
Underwriter—Eppler, Guerin & Turner, Inc.,
Dallas, Texas.
Growth Fund of America, Inc.
Feb. 4 filed 250,000 shares of common

Brothers, and Glore, Focgan & Co. (jointly). Bids—Had

Price—At

cents).

been scheduled to be received up to 3:45 p.m.
(EDT) on
May 13 at Room 654, 101 Indiana Ave., N. W., Washing-

stock

(par one 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.

stock (par 10
Proceeds—For investment.

Washington, D. C
Advisory
Service,
Washington, D. C. Underwriter—Investment Manage¬
ment Associates, Inc., Washington, D. C.

Investment

market.

Connecticut

Office—J825

Ion 25, D. Cm but bidding has been postponed.

•

Advisor

—

($2.93)
liquidating
value).being offered for subscription by holders of com¬
mon

stock

the

ratio

for each 11 shares of

one

common

new

stock held and

of $1.60 preference series in the ratio of

one

preferred
by holders
new

Avenue,

Hamilton

Cosco, Inc., Columbus, Ind. (7/15)
50,000 shares of common stock (no par—
$3 stated value per share). Price—To be supplied by
amendment. Proceeds—To selling stockholders. Under¬
writer—City Securities Corp., Indianapolis, Ind.
June

filed

June 25

200,000.preferred shares and 50,000 shares of the common
in units consisting of 4 shares of preferred and one share
stock

Day, both of New York.

to be sold from time to time

filedj$0,000 shares of 6% cumulative convert¬

ible preferreclstock (par $2) and 100,000 shares of com¬
stock (par 10 cents). The company proposes to offer

I6V2 shares of $1.60 preference stock held on
rights to expire on July 13. Price—$50 per
share.
Proceeds—For working capital.
Underwriters—
The First Boston Corp., and
Tucker, Anthony & R. L.

Inc.

mon

June

25;

(I. W.)

^-Hancock

for each

General Stores Corp.
May 21 filed 1,884,278 shares of

The

common.

remaining 50,000 shares

stock

(par $1)

the American Stock Ex-,.

common

outstanding 4%
subordinated debentures at the rate of one share for each

$.50

are

face

offered

amount

cancellation.

such

Proceeds—To

holders

debentures
be

used for

and general
common

Products, Inc. (7/29)
26 filed 50,000 shares of capital stock.
Prices—To
supplied by amendment. Proceeds—For working cap¬
ital and general corporate purposes.
Office—Berkeley,
Calif. Underwriter—F. S. Smithers & Co., San Francisco
and New York.
•

Hickerson

Bros. Truck Co., Inc.
(7/30)
(letter of notification) 285,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—To
pay existing liabilities; for additional equipment; and
for working wapital.
Office—East Tenth Street, P. O.
Box 68, Great Bend, Kan.
Underwriter—Birkenmayer
& Co., Denver, Colo.
»

March 11

Highway Trailer Industries, Inc.
9 filed 1,105,294 shares of common stock to be
offered for subscription by present stockholders at the
June

rate of

one

share for each two shares held (with an

new

oversubscription

privilege).

Proceeds—To

amendment.

Price—To

used

for

and

be. supplied

by
equipment
inventory and

new

plant improvement; to be used for
production requirements of the Hazleton, Pa., plant and
the increased production of the Edgerton, Wis., plant;
and for

discharge of bank loan and other corporate pur¬
Office—250 Park Ave., New York, N. Y.
Agents
—Allen & Co. and Van Alstyne, Noel & Co., both of New
poses.

York.
•

Hofman

Laboratories, Inc. (7/15)
(letter of notification) 50,000 shares of common
(par 25 cents). Price—$6 per share. Proceeds—To

eral

loan from Hillside National Bank

and for gen¬

Office — 5 Evans Terminal,
Hillside, N. J. Underwriter—Myron A. Lomasney & Co.,
New York, N. Y.
corporate

Holmes

(D.

purposes.

Co. Ltd.

H.)

June 5 filed 14,780 shares of capital stock to be offered
to present stockholders on the basis of cne new share
for each 14 shares held of record June

25, 1959. Price—■
$37.50 per share. Proceeds—For expansion program, for
working capital and other corporate purposes. Office—
New

Orleans, La.

Underwriter—Arnold & Crane, New

Orleans."

■

Home-Stake

Production Co.,

Tulsa, Okla.

Nov. 5 filed

116,667 shares of common stock (par $6),
Price—$6 per share. Proceeds—For working capital and
general corporate purposes.
Office — 2202 Philtower
Bldg., Tulsa, Okla. Underwriter—None. Statement to be
withdrawn.

surrendered

for

working capital

corporate purposes. Underwriters—Kenfteth
Kass, Nassau Securities Service and David Barnes & Co.,
Inc., all of New York; and Palin Securities, West Orange,

Nv-J/—►

•

■

•

Honolulu Construction
June

& Draying

Co., Ltd.

filed 25,000 shares of common stock, to be of¬
for subscription by stockholders of record April

fered

1959, on the basis of one new share for each five
shares then held. Rights to expire on or about July 30.
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.

Investment

•

General Precision Equipment Corp.
May 26 filed a minimum of 105,928 shares
cumulative convertible preference stock
($50

Building, Portland 5, Ore. Underwriter
Earle Hensley Co., Inc., 4444 California Avenuer
Seattle, Wash.
; •

June 10

Underwriter—To be determined by competitive bidding
Probable bidders: Blyth & Co., Inc., and The First Bos¬
ton
Corp.
(jointly); Kuhn, Loeb
&
Co.; Lehman

common

•

General Aniline & Film Corp., New York
Jan. 14, 1957 filed 426,988 shares of common A stock
(nt
par) and 1,537,500 shares of common B stock (par fl)
Proceeds—To the Attorney General of the United States.

Feb. 18 filed 250,000 shares of class "A"

rate

subsidiary (Great
Western 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.

company's sub¬

Merchandising Corp., Memphis, Tenn.

the

ment.

sidiary, Moffett Engineering, Inc.— Underwriter—First
Trust Co., of Lincoln,.Neb. Offering expected
early in
July.

General

common

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¬

Co., Inc., Omaha, Neb.
$1,250,000 6% sinking fund debentures,
series A, due May 1, 1969, of which $350,000 will be
offered, on an exchange basis, for a like amount of 5%
debentures whiph the company plans to retire. The re¬
maining $900,000 debentures will be offered publicly.
May 26

American Bank
—D.

retire
op¬

about

Gate City Steel

Broadway, New York 4, N. Y.

Hemisphere Gas & Oil Corp.
April 27 (letter of notification) 300,000 shares of com¬
mon stock.
Priqe—At par ($1 per share).
Proceeds—
For development oi oil and gas properties. Office—702

additional

acquiring the
Washington, Ds C. Office—580°
Fifth Avenue, New York, N. Y. Underwriter—None.
Dumont

shares of

stock

offered in units, each consisting of five
stock and an option to purchase two
shares, the units to be offered for subscription
by holders of the 1,500,000 outstanding common shares
stock,

Underwriter—Albion Securities Co., Suite 1512r

3, N. Y,

June 12

June

-•—To repay monies borrowed for the purpose of
closing
title and paying incidental expenses in

For payment of past due accounts and loans and general
working capital.
Office—35-10 Astoria. Blvd., L. I. C.

Nov. 13 filed

mining expenses. Office—4334 S. E. 74th
Ave., Portland 6, Ore. Underwriter—Evergreen Securi¬
ties, Inc., 4314 N. E. 96th Ave., Portland. Ore.

Heliogen Products, Inc.
22, 1958 (letter of notification) 28,800 shares of
stock (par $1). Price—$5 per share. Proceeds—

Oct.

June

to be offered

ceeds—For

Foundation

Employees Variable Annuity Life

Insurance Co.

Feb. 5 (letter of notification—as amended) 300,000 shares
of common stock. Price—At par ($1 per share). Pro¬

Underwriter—None.

Hexcel

writer—None.

Fluorspar Corp. of America

it Heartland Development Corp.
22,820 shares of 5% convertible preference
stock (par $12). Price—Par. Proceeds—For general cor¬
porate purposes. Office— 40 Beaver Street, Albany, N. Y.

common

Gold Medal

June

June 24 filed

Insurance Co.,

share, Proceeds — To increase capital and surplus.
Underwriters—The Robinson-Humphrey Co., Inc., Atlan, Ga., and The Johnson Lane, Space Corp., Savannah,

by certain share¬
related to the then

stockholders.

and

•

Life

per

current price on the New York Stock

Proceeds—To

account of the
company

June 30. filed 1,665,000 shares of common stock. Price—$5

143,789 shares of common stock (par $5).
This company on June 17 will acquire,, all the assets of

rent at the time 6f such sales.
Proceeds—To selling
stockholder, Seaboard Allied Milling Corp. Office—
Hathaway St., Syracuse, N. Y. Underwriter—None.

International
Atlanta, Ga.

filed

(of New York) in
exchange lor 869,858 shares of Flintkote Co. The 143^789

Inc.

part of the 672,990 shares (53.43%)
held by Seaboard Allied Milling Corp.
Seaboard plans
to offer 100,000 shares for sale to the business associates
are

employees k>f Hathaway Industries at $6 per share.
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¬

it Georgia

Flintkote Co.

Co.

225,000 shares of com¬
Of the total, 195,000

(par 25 cents).

to be offered for the

are

Inc., Pine Bluff, Ark.

Cement

Industries,

merchandising methods, to finance the real estate depart¬
ment and insurance policy loan's. Office—211-215 Pine
St., Pine Bluff, Ark. Underwriter—Lovan Securities Co.,

37,311 shares are subject to options granted in substitu¬
tion of options granted by Blue Diamond Corp. to certain"
of its officer and key employees. Flintkote acquired all
the assets of 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

The Glen Falls Portland

These

and 30,000 shares for a selling stockholder. Price—$1 per
share. Proceeds—For furniture inventory and improved

Ariz.

Incj, to certain of its officers and key employees; and

June 4

notification)

capital stock

mon

Flintkote Co., New York
May 20 filed 227,368 shares of common stock, of which
173,286 shares are to be offered to certain officers and.
key employees of Flintkote and its subsidiaries under
the "Flmtkote Stock Option Plan";
16,771 shares are
subject to options granted by Flintkote irr substitution
for options granted by Orangeburg Manufacturing Co.,

of Blue Diamond into Flintkote.

Hathaway

June 9 filed 300,000 outstanding shares of common stock.

Underwriter—None.

(letter of

Price—Relating to the then current market on
Stock Exchange.
Proceeds — To selling

April 6

Price—$12 per share. Proceeds—To increase capital and

surplus.

General Underwriters Inc.

stock

common

American

stockholders.

June 4

•

Hudson

June

Radio & Television Corp.

filed

200,000 shares of

(7/27-31)
capital stock, of which

125,000 shares are to be offered for the account of the
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

company

development of additional inventory lines, warehousing
facilities and sales outlets; the

adoption of various sales

promotional programs, and as additional working capifal. Office—37 West 65th Bt., New York, N. Y. Under¬
writer—J. A. Winston & Co., Inc. and Netherlands,v Se¬
curities Co., Inc.'
Hunter

Mountain

Hunter, N. Y. (7/15)
5 filed $690,000 of 6%

June

;

Development Corp.,

subordinated debentures

July 1, 1969, and 69,000 shares of common stock (par
10 cents)'to be offered in units, each unit consisting of a
$50 debenture and 5 shar}e& of common stock. Price—$50
per unit. Proceeds — For purchase of equipment, for
building of lodge, and for other corporate purposes. Un¬
derwriter—Myron A. Lomasney & Co., New York.
due

Continued

on page

;

Financial Chronicle

The Commercial and
38

•

Corp., Nashville and New

share); of debentures, at par. Proceeds—For expenses
for operation and equipment of a ski resort.
Office—
1504-1411 4th Ave., Seattle 15 Wash. Underwriter—None.

(8/28)

I C Inc.

June. 29

600,000 shares of common stock. Price—
share. Proceeds—To further the corporate pur¬
the preparation of the concentrate ana
of bottlers, the local and national pro¬
and advertising
of its beverages, and wheif?
filed

$2.50 per

and, in
enfranchising
poses

motion

to make loans to such bottlers, etc. Office
Equitable Bldg., Denver, Colo. Underwriters— Pur¬
Co. and Amos C. Sudler & Co., both of Denver.

necessary

704

vis

Colo.

;

Ideal Precision Meter

(7/6-10)

Co., Inc.

May 19 filed 137,500 shares of common stock (par 10
cents). Price—$3.75 per share. Proceeds—For planned
expenditures and working capital, and for payment oi

certain'indebtedness. Office

—

126 Greenpoint Avenue,

Brooklyn, N. Y. Underwriter—Charles
York.
)//

Plohn & Co., New

^-Independent Telephone Corp.
13,080 shares of 5% cumulative.convertible
preferred stock, series A ($10 par), and 806,793 shares
of common stock, together with warrants for the pur¬
chase
of
50,000 common shares.
According to the
prospectus, 80,000 common shares are to be offered to
nine payees of non-assignable convertible notes out¬
standing in the amount of $500,000 for conversion of
such notes 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

June 29 filed

share
then

•

the basis of

held.

one

new

Proceeds—For

South .St.,

share for each two shares

capital.
Office—
Underwriter—-None.

working

Dryden, N. Y.

industrial

Leasing Corp.
(7/13-17)
(letter of notification) $200,000 subordinated
convertible 6% debentures ($1,000 denomination)
and
$50,000 -subordinated convertible 6% debentures ($500
denomination). Price—100% of principal amount Pro¬
ceeds—For working capital. Office—522 S. W. 5th Ave.,
June

4, Ore. Underwriter—May & Co., Portland, Ore.

^ Industrial Plywood Co., Inc., Jamaica, N. Y.
June 25 filed 60,000 shares of 6% cumulative preferred
stock ($10 par—convertible until Aug. 31, 1969), with
common
stock purchase warrants. Each share of pre¬
ferred will have

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
,

share. Proceeds—Toward reduction of

short-term

bank

loans; to liquidate long-term debt; and the balance for,
additional working capital.
Underwriters — Standard
Securities Corp., Irving

Weis & Co., and J. A. Wipston
& Co., Inc., all of New York; Bruno-Lenchner
Ing., Pitts¬
burgh, Pa.; Netherlands Securities Co., Inc., New York;
and Plymouth Bond & Share Corp.,
Miami, Fla.
*
-Information

Systems, Inc., Skokie, III.
April 21 filed 170,000 shares of common stock being of¬
fered for subscription by common stockholders of Panellit, Inc., at .rate of one new share for each three
Panellit

common
shares held of record June 8, 1959
20-day standby). Price—$3.50 per share. Pro¬
ceeds
To pay notes, for research and
development
costs; and working capital.( Underwriter—None.

(with

—

International

Bank, Washington, D. C.
?
$5,000,000 of notes (series B, $500,000, twoyear, 3% per tinit; series C, $1,000,000, four-ydar 4% pea
unit; and series D, $3,500,000, 6-year, 5% per unit). Prl<*
—100% of principal amount.
Proceeds —For workinj
capital. Underwriter—Johnston, Lemon & Co., Wash¬
ington, D. C. Offering—Indefinitely postponed.
Dec. 29 filed

international

Railroads

Weighing Corp.
April 16 .(letter of notification) 82,626 shares of common stock
(par $1) to be offered for subscription bj
common

stockholders at rate of

one

new

share for each

four shares held.

Price—$3 per share. Proceeds — Foi
development costs and working capital
Office—415 Spruce St., Hammond, Ind.
Underwriter—
research

and

None.

(letter of

& Trust Co..
;
notification) 56,185 shares of common
.

SI)

(par

1959; rights expire

date is June 30,
"

stockholders,

the

Thursday, -July 2, 1959

share. Proceeds—For working capital. Office—123
Main St., Mullins, S. C. Underwriters — Frost, Read

Simons, Inc. and Silcox & Johnson,
S. C.

Price—$10
the purchase of land,
cattle, machinery and equipment, fishing lodge, and
development expense. Office—1841 North Meridian St.,
Indianapolis, Ind. Underwriter—None.
share. Proceeds—To be used for

(7/13-17)

May 27 filed 100,000 shares' of, common stock (no par).
Price—$3.75 per share.
Proceeds— To pay off various

indebtedness, for purchase of ma'chinery, 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

both of New York.

ties Co., Inc.,

Central

Jersey

Power & Light Co.

(7/14)

May 21 filed $8,000,000 of first mortgage bonds due

July

Proceeds—For

St., Boston,
Underwriter—Paine, Webber, Jackson & Curtis,

New York and Boston.

" ~

stock

Kaiser Aluminum & Chemical

Corp.

May 11 filed 64,028 shares of 4%% cumulative convert¬
ible (1959 series) preference stock (par $100) and 128,051 shares of common stock (par 33Vz cents) issued in
exchange for the outstanding stock of Mexico Refrac¬
tories Co. through merger, Proceeds—To selling stock¬
holders. Underwriter—None. Statement effective June 5.
(W. S.) 1960 Co.
$3,500,000 of Participating Interests under
Participant Agreements in the company's 1960 Oil and
Gas Exploration Program, to be offered in amounts of
$25,000 or more. Proceeds—-Acquisition of undeveloped
oil and gas properties. Office—2306 Bank of the South¬
west Bldg., Houston Texas.
Underwriter—None.
Kilroy

June

filed

Laure Exploration Co., 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.

Voz

stock.

promotion

Price—At par.

and

International Tuna Corp. (7/30)
April 3 (letter of notification) 175,000

shares of claw
(par 50 cents).
Price — $1 per share
equipment and working capital. Offic«
—Pascagoula, Miss. Underwriter—Gates, Carter & Co.,
Gulfport, Miss.
common

stock

Proceeds—For

^ Interstate Life & Accident Insurance

Co.

(8/3-17)
June
6tock.
.—to

filed

350,000 outstanding shares of common
supplied by amendment. Proceeds
stockholders.
Office—540 McCallie Ave.-,

Price—To be

selling

it Matronics,
June

publication

Voz." Office—1831 Vallace

production

2,000 shares of class A

Proceeds—For expenses
of the newspaper "La

St., Philadelphia, Pa. Under¬

Laymen Life Insurance Co.
May 27 (letter of notification) 60,000 shares of common
stock (par $1) to be offered to stockholders of record
on May 29, 1959 on a share-for-share basis.
Rights ex¬
pire June 30, 1959. Price—$5 per share. Proceeds—For
working capital. Office—1047 Broadway, Anderson, Ind.
Underwriter—None.
National

Life

Insurance

the basis

of one new share for each share held during
period ending June 25, 1959. Price—$5 per share to
stockholders; $6 per share to the public. Proceeds—To
increase capital and surplus.Office —1706 Centenary
Boulevard, Shreveport,' La. Underwriter—None.

the

Lieco,

Inc.

(7/13-17)

June 3,2 (letter of notification) 100,000 shares of common
stock (p§yr 10 cents).
Price—$3 per share. Proceeds—
For machinery and laboratory equipment; for consolida¬

Y.
■
"
C
'
r
Lifetime Pools Equipment Corp., Renovo, Pa.
June 1 (letter.of notification) 150,000 shares of common
_

stock

10 cents).

Price—$2 per share. Proceeds—
of machinery and equipment; advertising \
and
working capital.
Underwriter—First Washington '
Corp., Pittsburgh, Pa.
(par

Little
June

Restaurants,

Inc.

(letter of notification) 12,500 shares of 6%

ferred stock. Price—At par
For working capital. Office

($10
—

(par 10d).
Proceeds—For sales promotion,

equipment/ research and development,
special systems, receivables, inven¬

test

tories, prepayment: of notes and other purposes. Office
—558 Main St., Westbury, L. I., N. Y.
Underwriter—
Vermilye Brothers, New York.
/ /
Maturizer Co.
June 1

(letter of notification) $250,000 of 6% convertible
July 1, 1964, and converti¬

subordinated»debentures due
ble

into

units

which

stock

consist

class

common

one

A,, voting, and three shares of class B,
non-voting stock at $40 per unit. Proceeds—To purchase
machinery and equipment and for working capital. Ad¬
dress—P.

None.

Box
,

Medearis

755,

Okla.

Norman,

„

Underwriter—
•.

•"

(7/22)
May 14 filed 200,000 shares of common stock (par 20
cents). Price—$3.75 per. share.
Proceeds—For general
corporate purposes. Office — 42 Broadway, New York,
N. Y. Underwriter—Amos Treat & Co., Inc., New York.
Industries, Inc.

it Meg: Products; Co., Inc.
June

24V (letter of notification)

120,000

stpek5 (par $1). Price—$2.50

shares of

com¬

share. Proceeds—

per

ing loan, and

per

731

machinery and equipment, retire exist¬
promissory notes and additional working

capital. {^Office — 3340 W. El Segundo Blvd., Hawthorne,
Calif. /Underwriter—First Angeles Corp.. Beverly Hills,

Califqnija.

•

Mercantile Acceptance Corp. of California
May 15' (letter of notification) $80,000 of 12-year 5 ('2%
capital debentures. Price—At face amount. Proceeds—
For working capital.
Office — 333 Montgomery Street,
San Francisco," Calif. Underwriter—Guardian Securities
Corp., San Francisco, Calif.
•

Michigan

June

(7/6-7)

Seamless Tube Co.

10'filed

100.000

common

stock (par $5).

amendment. Proceeds—To be
added«4tf general funds of the company and used in
connection with a program of expansion of the facilities
of the subsidiary (Gulf States Tube
Corp.)^ scheduled for
completion in September 1960. Underwriter — Paine,
Price—To be supplied by

Co.

June 11 filed 200,000 shares of common stock, to be of¬
fered for subscription by holders of outstanding stock on

•

200,000 shares of capital stock

demonstrators, for

writer—None.

Lee

(7/29)

Inc.

filed

For inventories,

Publishing Co.
of notification)

(letter

common

for

mon

Underwriter—None.

June

Price—$2.50 per share. Proceeds—To be
company's expansion program. Underwriter—
Lomasney ,& Co., Ne\V Yok.

(par $1).
for

used

common stock,, to be issued
purchase plan for employees of the
and its subsidiary corporations.

company

stock

Price—$3.75 per Share.

it Jewel Tea Co., Inc.
June 26 filed 28,902 shares of

For purchase

•

it; Marshall Industries, San Marino, Calif. (7/15)
(letter of notification) 100,000 shares of common

June 23

Probable bidders; Halsey, Stuart & Co. Inc.; White,
Weld ' & Co.; Kidder, Peabody & Co.; Eastman Dillon,
Union Securities & Co.; Salomon Bros. & Hutzler and
Merrill Lynch, Pierce, Fenner & Smith, Inc. (jointly).
Bids—Expected to be received up t« 11 a.m. (EDT) on
July 14.
(

share.

stock, series B, and for general corporate
Office—3600 North Second St., St. Louis, Mo.
Underwriter—Newhard, Cook & Co., St. Louis, Mo.

purposes.

ding.

tive preferred

1, 1989. Proceeds—To be applied to the cost of the com¬
pany's 3959 construction program or to reimburse the
company's treasury for expenditures for that purpose.
Underwriters—To be determined by competitive bid¬

pursuant

Mallinckrodt

bentures

980,000 shares.

per

Chemical Works
(7 8)
filed $6,000,000 of convertible subordinated, de¬
due July i, 1974.
Price—To be supplied by
amendment. Proceeds—To retire outstanding 6% cumula¬
•

June

of operations in one
plant; for retirement of cor-*
porate debts and for working capital. Office—47 Bergen
St., Brooklyn, N. Y. UnderwTiter—Netherlands Securi¬
ties Co., Inc., and J. A. Winston &
Co., Inc., New York,

Price—$17.50

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
building in Miami (the balance.estimated at $150,000
will be secured by a mortgage on the building), and
$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 available, together with funds re¬
ceived 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 Yohk.

Jamaica Development Co., Inc.
Jun'e 15 filed 105,000 shares of common stock.

Wire & Cable Corp.

be used to pay off an exist¬
on the Florida Shores

ing loan secured by a mortgage

writer—None.

Jefferson

Inc. (7 29.
of class A common stock.

the company; $350,000 will

July 31, 1964, to be offered in units of $1,000. Pri<*
100% of nrincipal amount. Proceeds—For investment.
Office—511 Fifth Ave., New York, N. Y. Under¬
—At

•

supplied by amendment/ Proceeds—$443,during the period ending Aug. 31,
I960'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

due

per

500,000

is to be expended

071

of New York (7/15-20),
of 10% subordinated debenture,

filed $500,000

filed

Price—-To

&
both of Charleston,
■•'i'V-v.-l:: ■ -;/ /'/

tion

construction and acquisition. Office—60 State
Mass

if Magnuson .Properties,
June

Investors Funding Corp.

•

Feb-.

and

purposes,

^July 14, 1959. Price—

$3.80 per share; to the public, $4

per

such

for

International Recreation Corp. (7/6)
/
May 14 filed 2,750,000 shares of common stock (par 50
cents). The issue was later reduced by amendment to

pay short-term bank loans made
Underwriter—To 'be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Blyth & Co., Inc. and The First Boston Corp.
(jointly'); W. C. Langley & Co.; and Smith, Barney &
Co. (jointly).
Bids—Expected to be received sometime

utility:'plant

Equitable Securities

being offered first to stockholders; un¬
subscribed shares will be offered to the public. Record
stock

Portland

June

—

York.

Investment Life

•

Skiing; Corp.
(letter of notification) 8,000 shares of common
stock and $140,000 of debentures to be offered m denom¬
inations of $50 each.
Price—Of stock, at par ($10 per
Hyak

June

Underwriter

Tenri.

Chattanooga,

Continued from page

(38)

pre¬

share). Proceeds—
Main St., Klamath

Falls, Ore. Underwriter—None.'
•
Long Island Lighting Co.
May 28 filed $25,000,000 of first, mortgage bonds series

K, due 1989. Proceeds—To be used for construction of

Webber/ Jackson & Curtis, New York.
•

Electro Medical

MScronaire

Products Corp.

(7/8)'-/

;
June 1 filed 200,000 common shares

(par 10 'cents)

and

oho-year warrants for the purchase of common
stock, to be offered for public sale in units of TOO shares
of common stock and 25 warrants. The registration also
includes ki1 additional 200,000 three-year warrants, exer¬
50,000

cisable at .$3, of
tain

which 150,000 have been issued to cer¬
Price—$275 per-unit.
for expansion of

stockholders and;employees.

Proceeds/—To. discharge indebtedness;
sales efforts; and for working capital.

Ave/^Ne\y: York. Underwriter
Corp., New) York.
son

Mid-America

—

Office—79 Madi¬
General Investing

Minerals, Inc.

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' and .some nonproducing. The offering is' to be made initially to par¬
ticipants in The- Mid-America Minerals, Inc., 19j?§ Fund.
Price—$2,221.33 per smallest unit. Proceeds—Fdjp., invest¬
ment in oil and gas lands.
Office—Mid-America Bank
Bldg., Oklahoma City, Okla. Underwriter—None.
June

filed

$921,852 of Working Interests und

Pasadena, Calif. (7/7)
10% cumulative convert¬
ible preferred stock (par $5). Price-—$10 per share. ProMission Insurance to.,

June

filed

150,000 shares of

Volume

1.90

Number 5860

The Commercial and Financial Chronicle

ceeds—For

additional working capital;
Shearson, Hamimll & Co., New York.

Underwriter

payment of any then existing bank loans

Mobile Credit Corp.
June 8 filed 15.000-shares of-common stock to be offered

for sale in

purchase

vendors'

interests

conditional

sales" contracts and other like evidences of indebtedness.

Office—11746 Appleton Ave.,
*None.
•

Corp.. (7/27-31)

filed 50,000 shares of common stock (par 10
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
16

June

stock

common

employees

reserved

for

issuance

York.
•

':'V'

•

O. Box 1658, Lakeland, Fla.
Campeau Co., Inc.,' Detroit, Mich.

National

Lead

(or .such

may

sell

ceived by them under the agreement.:

Vp n-i

Business

Capital

Nedow

•

expenses.

Of¬

Co.

(7/20-24)

133,800 shares of
are

for

"f
the

account

Mart,

New

and

June

•be

offered

Proceeds—For working capital. Office—Main and
Ervay Sts\, Dallas, Tex.. Underwriter—Lehman; Brothers,

40 shares of

stock.

common

Oils

1,265,000 shares of

1,000.000 shares will be offered for the account
-company;

of,the

100,000 shares will be offered for the account

selling stockholder (Albert Mining Corp. Ltd.):
and the remaining 165,000 will be paid as additional
compensation to brokers and dealers.. Price—Related to
a

the then current market price on the American Stock
.Exchange. Proceeds—To repay bank loansj for develop¬
ment of properties, and for general corporate
purposes.
Office—145 Yonge Street, Toronto, Canada. Underwriter
—None.

•
-

ferred
of

debentures,
stock

held

(7/8)
* *■ (letter of notification) 13,101 shares of common
(par $10) to be offered first to stockholders on

Newport Electric Co.

the basis of one
or

about

"Price—To

new

share for each

shares held,

ten

July 7; rights do expire on or about July- 23.
be supplied by amendment.
Proceeds—For
Corp.,

York.

Northern States
June

filed

Power Co.

952,033 shares

(7/22)

common

stock

of¬

fered for subscription by common stockholders of record
about July 23 on the basis of one new .share for
eafch
15 shares held; rights to
expire on Aug.
—For construction

program

11, 1959. Proceeds
expenditures, includmgjthe

shares
to

offered

for

each

holders

first

See

new

stockholders

pre¬

rate

1,000 shares held; unsubscribed
7% short-term notes in ratio

Inc., Pacolet, A. C.

(7/29)

June 30 filed

200,000 shares of common- stock (par $1).
Price—To be supplied by amendment. Proceeds—To pay
'bank loans and for general corporate, purposes.
Under¬
writers—A. M. Law & Co., Spartanburg, S. C., and Clark,
Landstreet

Kirkpatrick, Inc., Nashville, Tenn.

• Pall Corp.

(7/22)

June 25 filed $750,000 of 5%%

debentures,

due

July

1974,

(by

amendment)

and

for

Under¬

additional

500,000
mar¬

incurred for construction pur¬

1959 construction

shares of

expenditures.

Under¬

stock, for offer¬

common

ing to

employees of the company
pursuant to its Stock Option Plan.

its

and

subsidiaries

Philippine Oil Development Co., Inc.
April 10 filed 221,883,614 shares of capital stock, to be
offered for subscription by holders of outstanding stock
at the rate

Price—To

one

share for

new

each

two shares held.

supplied by amendment. Proceeds—For
working capital. Office—Soriano Building, Plaza Cervantes, Manila (P. I.). UnderwiiterPiedmont Aviation, Inc.
J
May 6 (letter of notification) 81,714 shares of common
stock (par $1) being offered to stockholders at the rate
of 1/14 of

share for each share held

as of May 22, 1959.
June 30, 1959. Price — $3.50 per
share. Proceeds—For working capital. Address—Smith
Reynolds Airport, Winston-Salem, N. C. Underwriter—

Rights to expire

None.

Wire

Plastic

Cable Corp.

(7/7)

June 5 filed 40,000 shares of common stock
offered

for

one

(par $5) to

holders of outstanding
share for each five shares

subscription

stock at the rate of
held

new

July 7; rights to expire on or about July 27.
Price—To
be supplied by amendment.
Proceeds—To
repay outstanding banl^-ioans, for construction expen¬
ditures and for other-corporate purposes. Underwriter—■
Putnam & Co., Hartford. Conn.
Statemdht expected to
become effective July 7.
•

Precon

Electronics Corp.

(7/6-10)

(par 75
cents). Price — $5 per share. Proceeds — For working
capital; to reimburse the predecessor for certain devel¬
opment expenses; for inventories and work in process;
and other general corporate purposes.
Office—120 E.
41st St., New York, N. Y; Underwriters—Charles Plohn
& Co. and Netherlands Securities Co., Inc., both of New
York, N. Y.
April 6 filed 175,000 shares

of common stock

Pressed Metals of America,

listing,

ic Paco Product^,

investment.

it Philip Morris Inc.

amount on notes and then to public.
Price—At par
($50 per share). Proceeds—To pay bank loans and for
general corporate purposes. Underwriters—A. M. Law
&
Co.; Spartanburg, S. C.; and' Clark, Landstreet &
Kirkpatrick, - Inc., -Nashville, Tenn.
Statement With^
drawn.

filed

June 25 filed 104,699

construction program. Office—159 Thames
St., Newport,
R. I.
Underwriter—Stone & Webster Securities
New

five

Products, Inc., Pacolet, A. C.
(letter of notification) 2,000 shares of 7%

stock

shares first

June 22
stock

Paco

May 11

Proceeds—For

market.

Corp.; Kidder, Peabody & Co.; Eastman Dillon,
Co., Merrill Lynch, Pierce, Fenner &
Smith, Inc. and White, Weld & Co. (jointl^tyThe Firfit
Boston Corp.; Harriman Ripley & Co. Inc. aria 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.'

^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.

stock, of which

Building,

rities

Probable

common

Hathcock

—

Union Securities &

Price—To

Aug. 5, 1959; rights to expire on or about Aug.
25, 1959.
Proceeds—-For construction program.
Under¬
writer
To be determined by competitive
bidding.

Ltd.

Office

Underwriter—None.

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Equitable Secu¬

-s-

June 11 filed

For investment.

of short-term bank loans

record

Pacific Coal

New

poses,

(7/6)

ba^is of $100 principal amount of

debentures for each

ment.

(7/20-24)

Pennsylvania Electric Co. (8/4)
15 filed $15,000,000 of first mortgage bonds due
Aug. 1, 1989. Proceeds — Will be applied to repayment

—

Record date

the

Co.

June

Office—513 Interna¬

common

Forge

ket. Proceeds—For investment.

about July 20v

both

shares of beneficial interest in the fund. Price—At

Corp., Wilmington, Del.

common.

Weeks,

it Penn Square Mutual Fund, Reading, Pa.

for each

Orleans, La. Underwriter
Orleans, La.

shares of

writer—Investors Investments Corp., Pasadena, Calif.

Ozark Air

on or

—

Price—At

of Aurora.

,'ic Pacific Power & Light Co. (8/5)
June 2,9 filed $10,996,000 of convertible

the

company and 102,600 shares for the account of certain
selling stockholders. Price—To be supplied by amend¬

New York.

common

stock

on or about July 6; rights
Unsubscribed shares may be
offered July 21.
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.

stock, of which

common

offered

stock

common

Oreclone

expire

Address—P. O. Box 672, Odessa, Texas. Underwriters—

common

Oklahoma Cement Co.

class B

To be designated.
June 29 filed

Lines; Inc.. <7/6)
May 20 filed 132,944 shares of general common stock
(par $1) to be 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 class B shares
held by voting trustees), or voting trust certificates for

May 5 (letter of notification) 150,000 shares of common
(par 50 cents). Price—$2 per share. Proceeds—To
acquire fishing tools for leasing; and for working capital.

31,200

Hornblower

Peckman Plan Fund, Inc., Pasadena, Calif.
May 19 filed 20,000 shares of common stock (par $1).

derwriter—Investment Bankers of America, Inc., Wash¬
ington, D. C. Offering—Expected in July.

stock

.* Neiman-Marcus

each

Drop

Fayetteville, Ark.

Concentrating Corp.* New York, N. Y.
May 20 filed 200,000 shares of common stock (par 10
cents). Price—$3 p£r share. Proceeds — For repayment
of outstanding obligations and for working
capital. Un¬

Research Corp.

proposed underwriter.

Oil Tool

for

common

—Laird & Co.

Blvd., Los Angeles 17, Calif Under¬
&
Co., San Francisco 4, Calif., has

writer—Waldron

ceeds

be supplied by amendment. Proceeds — For expansion,
general corporate purposes, and the balance for working
capital. Office—Beacon Bldg., Tulsa, Okla. Underwriter

fice—1250 Wilshire

•withdrawn

Oil

and

Participating Annuity Life Insurance Co.
$2,000,000 of variable annuity policies. Pro¬

Brothers

June 4 filed

Investing

the

Cleveland, Ohio. Underwriter—Fulton, Reid & Co., Inc.,
Cleveland, Ohio.

874,422 shares of common capital stock
value). The company has agreed with the

debentures

Sept. 29 (letter of notification) 300,000 shares of cumu¬
lative voting and non-assessable common stock. Price—
At par ($1 per share). Proceeds—For organizational ex¬

and first three months' operational

syndicates and other real

1, 1974, and 360,000 shares of common stock (par 25
cents) to be offered in units each consisting of $190 of

derwriter—None.

penses

estate

June

—

Naylor Engineering &

clftss B

one

Proceeds—To be available

unit.

May 21 filed $3,600,000 of subordinated debentures due

♦

43,500 outstanding shares of common stock
(no par). Price—To be supplied by amendment. Proceeds
—To selling stockholders. Office — 777 East .79th
St.;

(without par
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

•

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¬
•

shares and

+ Park

Assets investment Co., Inc., New

stock
to be offered to holders of certain of
company's life
insurance policies issued on or prior to Dec. 31, 1955,
and to certain employees.
Price—$4.44 per Share. Pro¬
ceeds—To increase capital and surplus.-Office — 2300
•North Central Ave., Phoenix, Ariz. Underwriter—None.
Small

working capital, or
in connection with

June 25 filed

filed

tional Trade

National Life & Casualty Insurance Co.
25-filed 250,000 shares of common capital

Nationwide

per

loans and for investment purposes.

March

Lehman

Oil, Gas & Minerals, Inc.
April 2 filed 260,000 shares of common stock (par 35
cents.
Price—$2 per share. Proceeds—To retire bank

re¬

(7/29)

Inc.

convertible

Aurora; and 5.78438 shares of Ohio Oil

lesser

the National Lead stock

share of class A

as.

receive and

Price—$100

Ohio Oil Co.

Ohio

provided for in the agreement).!and the as-sumption.by National Lead, of certain liabilities of Gold¬
smith. The prospectus lists a number of persons who
will

investment in real

June

stock

common

York, N. Y.

^ National Lead Co.
shares of common stock. On June 23,
National Lead entered into an exchange .'agreement
providing for the acquisition of the assets of Goldsmith
Bros. Smelting & Refining Co., of Chicago, subject to the
requisite approval of the stockholders of Goldsmith, and
the dissolution and liquidation.of Goldsmith.' Under the
agreement! National Lead will acquire the assets, prop¬
erty and business of Goldsmith in exchange for 30,000

portion of the funds
acquisition of jetpowered aircraft, including all cargo aircraft and related
flight and ground equipment, or both. Underwriters—

estate. Office—9 Clinton St., Newark, N. J. Underwriter
—None.

1959

Airways,

New York.

for

Underwriter—

World

$46,962,100

addition to

required

share.

June 29 filed 28,863

"number

Dak.

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

Torpie &

150,000 shares of com¬
mon stock.
Price—At par ($2 per share).
Proceeds—
For new equipment, inventory and working capital. Ad¬
R. F.

filed

June 29, 1959; rights to expire on Aug. 11. Price—To be
supplied by amendment. Proceeds — To be used as an

American

subordinated
debentures due 1979, to be offered on a basis of $100 of
debentures for each 14 shares of capital stock held on

Office

dress—P.

★ Pan
June

Minerals, Inc., Keystone,

offered in units of nine class A

(7/6-10)

capital and other
Wilshire Boulevard,

9744

New

(letter of notification)

April 20

—

will be used for general corporate purposes. Office—

National Citrus Corp.

working

Office

purposes.

May 4 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per shaye. Proceeds—
For exploring and recovering strategic metals and
pro¬
ducing same. Underwriter—Caldwell Co., 26 Broadway,

/''•

—

Price —To be supplied by

Co.; Inc., New

Westbury, Long Island, N. Y. Underwriter
Saltzman, New York.
'
'•

1979.

Northwest Defense

Corp. (7/7)
•
April 29 filed 20,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds—
To retire a $100,000 outstanding bank loan and the bal¬
ance

July 1,

—

Proceeds—For

York'.

key

■■■'.!'/.

(7/21)

Hills, Calif. "Underwriters—William R. Staats
& Co., Los-Angeles, Calif.; and Blyth &
Co., Inc., New

Ultrasonics

Narda

Proceeds—

bank

of 7% %

Beverly

options. Price—To be supplied
by amendment. Proceeds — To, be used to retire bank

loans.-Underwriter—Milton D. Blauner &

Corp.

due

coffiorate

pursuant

short-term

York.

Northrop

amendment.

cents)

liquidate

loans; to retire $115,000
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, Stpne &
Co., all of New

•

Microwave

Narda

Detroit, Mich. Underwriter

•

bentures

Price—$10 per

working capital

the

for

Price—To be supplied by amendment.

ers.

June 15 filed $10,000,000 of convertible subordinated de-"

Michigan and Pennsylvania.

Proceeds—To provide additional

share.

shares of class A stock. The 40,000 shares of class A stock
will be sold for the account of certain selling stockhold¬

(estimated at
$14,000,000). Underwriter—To bh 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 &jCo.
(jointly); Merrill Lynch,
Pierce, Fenner & Smith, Inc. Bids—Expected to be re¬
ceived up to 10 a.m.
(CDT) on July 22 at 231 So. LaSalle
St., Chicago 4, 111.

—

(39)

Inc.

April 17 filed 90,000 outstanding shades of common stock.
Proceeds—To selling stockholders.. Office—Port Huron.
Mich.

Undewriter—None.

Statement effective June 10.

Producers Life Insurance Co.
June 8 (letter of notification) 40,000 shares of common
stock (par $1) to be offered to holders of life insurance
policies. Price—$4 per share. Proceeds—For capital and
surplus. Office—809CW. Main St., Mesa, Ariz. Under¬
,

writer—None,
,

of New Hampshire

(7/22)
>
stock (par $5),
supplied by amendment. Proceeds—To be
applied to reduction of short-term bank loans.
Under•

Public

June

Service Co.

24 filed 396,000 shares of common

Price—To be

subordinated convertible
and

40,000

outstanding

Continued

page

The Commercial and Financial Chronicle

(40)

Continued

& Co., and Blyth & Co., Inc.,

writer—Kidder, Peabody

N. Y.

both oi New York,
•

Public

Hampshire

of New

Co.

Service

(7 29)

„

$8,000,000 of first mortgage bonds, series K,
lirif^leds—To be applied to reduction of shortterm' bank4oans. Underwriter — To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.: Blyth & Co., Inq. and Kidder, Peabody & Co.
June 24 filed

due 1980.

(jointly); The First Boston Corp. and White, Weld &
Co. (jointly); Glore, Forgan & Co.; Salomon Bros. &
July 29.

(EDT)

until 11 a.m.

Bids—To be received

Hutzler.

A Quebec Hydro-Electric Commission (Canada)
(7/15)
■
> ■.
r
"■
June 25 filed $50,000,000 of debentures, series X, due
July 15, 1984 guaranteed by the Province of Quebec,
Canada. Price—To be supplied.by amendment. Proceeds
.

Under¬
Co.,

writers—The First Boston Corp., and A. E. Ames &

Inc., both of New York.

Queenstown Gardens, Inc.
June 5 filed 140 units, each unit consisting of 700 shares
of class B non-voting common stock.
Price—$5,000 per
unit.
Proceeds—To acquire a 1061 apartment develop¬
ment
known
as
Queenstown Apartments in Prince

Underwriter—-None.

Georges County, Md.

ments

for

filed

its registration

state¬

\seeking* registration of additional Quinby Plans

the^aeeumulation

amounts and in the
—

Eastman

common

stock

dollar

the

corporations listed herewith; $3,500,I. duPont de

Co.; $250,000—E.

Kodak

Nemours & Co.: $750,000—General Motors Corp.; $500,Oil of N. J.; $250,000—American Tele¬

€00—Standard

Office—Rochester, N. Y.

phone & Telegraph Co.

Design Corp., Syracuse, N. Y. ,(7/13-17)
May 26 filed 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.
•

Radar

•

Radinsky

June

Investment Co.

filed

(par $1).
Each 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
1

100,000 shares of common stock

of common for each five shares of stock acquired.

Price

«—$2 pet share. Proceeds—For working capital. Office—
2000 W. Colfax Ave., Denver, Colo.
Underwriters —
Amos C. Sudler & Co., and Purvis & Co., both of Denver,
Colo. Offering expected in August.
Rassco

Financial

wig capital and general corporate purposes. Underwrite!
—Rassco Israel Corp., New York, on a "best effort*'

istration statement.

(7/23)

count and the

are

remaining 32,000 shares

are

ac¬

to be offered

for the account of certain selling stockholders.
Price—
To be supplied by amendment.
Proceeds
To retire

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 &

cisco, Calif.

Co., San Fran¬

^ Rosarita Mexican Foods, Inc. (7/2)
16 (letter of notification) 42,857 shares

of stock

June

Price

(par $1).

—

capital.

Office—310 S. Extension

•

Furniture

Rowe

June 9 filed

Corp.,

Va.

Salem,

Nov.

(7/15)

Prict^-To be supplied by amendment. Proceeds—To sell¬
ing stockholders. Underwriter—Francis I. duPont & Co.,
f

•

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¬

offer, there would be allotted
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
the Royal Dutch/Shell group of companies, which 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 Jield. 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¬

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
Walston & Co., Inc., New York.
30,000 shares of

common

The

stock.

com¬

proposes to offer this stock in exchange for out¬
standing shares of common stock of Lone Star Bag and
Bagging Co. on the basis Of 0.6782 of a share of St. Regis

pany

corrimon for each share -of Lone Star common.

St. Regis

None.

of the

common are deposited
exchange, and may elect to do so if IKlesser percent,
but not less than 80%, of all the Lone Star common will
enable it to control the business operations and policies

shares of

•

loans,

and the balance will be added to the general funds of the

and will be available to meet.increased cash
requirements resulting from increased investment in in¬
ventories and for additions and improvements to

company

Rehcis Co., Inc.

(par $1). Price
stockholder;.

chemicals

—

bulk

share. Proceeds

stock

To selling
Manufactures and sells fine
primarily to ethical pharmaceutical
per

—

er—Aetna Securities Corp., New York.

it Republic Resources & Development Corp.
1,250,000 unit shares of capital stock. Price
—$2 per share. Proceeds—To be used in the company's

June. 29 filed

foil exploration program for the purchase of oil explora¬
tion and drilling equipment, supplies and materials; to
contract with U. S.

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
the Philippines. Office — 410 Rosario
St., Binondo.

Manila, Philippines. Underwriter—John
Inc., New York.
*

G. Cfavin & Co

(P. J°.)

Co., Bridgeton, N. J.
June 18 filed 4,827 shares of preferred
stock, non-cumuaative voting, (par $100) and 60,018 shares of common
«tock (no par) to be offered to
the^Jiolders of preferred
•and

common

one

stock

Brooks

Foods, Inc., "at the

rate

share of Ritter preferred stock for each
share of

•
<

Co., New York.

Service

Insurance

Fort Worth

Tex

Underwriter—Kav & Co

March 30 filed
the

Houb-

full registration has been/or will be filed.

Silver Creek
10

Inc.

Note—"Letter of notification" has been with¬

drawn and

1,550,000 shares of

common

stock

(par

of the company, and 1,350,000 shares for
of selling stockholders. Price—To be supplied

account

by amendment.

Proceeds—For working capital. Office-

'■

yi.

■■

^ Strategic Materials

porp.

(7 20-24)

June 29 filed

for

rate of

368,571 shares of common stock, to be of¬
subscription by common stockholders at the

one

new

for

each

five shares

held

or:

about July 20, 1959;
1959. Price—To be

rights to expire on or about Aug. 12,
supplied by amendment. Proceeds—
For payment of bank loans; for payment of a note; for
Working 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., Strategy'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.,
New York.

;

Stuart Hall Co., Kansas City, Mo.
June 8 (letter of notification) 23,169 shares

stock

(par $1).

of common
Price—To be supplied by amendment.

Proceeds—For general corporate purposes.
—White & Co.. St. Louis, Mo.
•

March 25 filed
:

Underwriter
*

Super-Sol Ltd.

250,000 shares of common stock. Price—

(19,800 Israeli pounds—-equivalent to $11 per i
U. S. funds), payable up to 90% in State of
Independence Issue and Development Issue Bonds,

At par

lhare in
Israel

and the balance in cash.

Proceeds^-For expansion pro¬

gram. Office — 79 Ben Yehuda St., Tel Aviv, Israel
Underwriter—American Israel Basic Economy Co., New

•York, N. Y.

Statement effective June 24/. V

•

Superior Window Co. (7/6-10)
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¬
ferred stock, $10 per share; and for common stock, $4
per 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,
Fla.
Underwriter-r-Cruttenden, Podesta & Co., Chicago
and New York.
•

Taft

Broadcasting Co. (7/7-8)
483,332 shares of common stock (par $1).
To be supplied
by amendment. Proceeds —■
To selling stockholders. Office—800 Broadway, Cincin¬
nati, Ohio. Underwriter—Harriman Ripley & Co. Inc.,
June

Price

—

filed

•

Tang Industries, Inc. (7/6-13)/;
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—
49

Jones

(7/6-13)
are to %be offered for

Stelling Development Corp.:
(letter of notification) 300,000° shares of common
stock (par one cent). Price—$1 per share. Proceeds—
For mortgages, land, paving roads, loans payable, adver¬
tising, etc. Offiee—305 Morgan St., Tampa 2, Fla. Under¬
writer—Stanford Corp., Washington, D. C.

Barnes &

Precision,Corp.

cents), of which 200,000 shares

account

Co.

Sept. 26 (letter of notification) 3,567 shares of common
itock (par $1). Price—$18.75 per share.
Proceeds—To
go to a selling stockholder. Office—400 W. Vickery Blvd.,

ton, Tex.

New York.

Life

Inc.

(Delaware)

Road, Waltham, Mass.
Co.," Inc., New York. •

Underwriter

—

David

Tape Cable Electronics Co., Inc. (7/6-10)
8 filed 110,000 shares of common stock (par one
cent). Price—$3.75 per share. Proceeds—For the pur¬
chase
and construction
of necessary machinery and
June

equipment, the promotion and sale of Tape Cable, and
Rochester,

Central Ave. and Mechanic St., Silver Creek, N. Y. Un¬

for working capital. Office—790 Linden Ave.,

derwriter—Maltz, Greenwald & Co., New York.

Ritter

Seeburg Corp.

curities &

—

manufacturers, and cosmetic manufacturers. Underwrit¬

•

tures, convertible into common stock during the first 10
years. Price—To be supplied by amendment.
Proceeds—
For
general corporate .purposes including additional
working capital and "further modernization" of plant
and equipment. Underwriter—Eastman
Dillon, Union Se¬

(7/6-10)

Business

June 29 filed

Deetjen

June 5 filed 87,000 outstanding shares of class A

150 East

—

it Seiberling Rubber Co. (7/28)
$3,000,000 of 20-year subordinated deben¬

prop¬

•

Office

Underwriter—None.

(7/15)
June 19 filed $5,135,000 of 20-year convertible subordi¬
nated debentures, due Aug. 1, 1979,. to be offered for
subscription by common stockholders at the rate of
$100 principal amount of debentures for each 23 shares.
Record date July 15, 1959; rights, expire on or about July
29. Price—To be supplied by amendment. Proceeds—To
retire outstanding notes and for general corporate pur¬
poses, including additional working capital. Underwriter
—White, Weld & Co., New York.

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

& Co. and Bache & Co., both of New York.

stock of Chemical.

common

St., New York.

Arenas

June 8

' '»

stock of Chemical Packaging Corp. on the basis of one
share of St. Regis common for each five and one-half

with

Underwriters—Emanuel,

in¬

dictating equipment;

Co., Inc.
June 12 (letter of notification) 75,000 shares of common
stock (par 50 cents). PricC-r-$4 per share/Proceeds—For
general corporate purposes; working capital and for
specialized equipment. Office—108 Meadow St.,. Garden
City, Town of Hempstead, New York. Underwriter—
Adams & Peck, New York, N. Y.

it St. Reg is Pa per Co.
June 24 filed 20,000 shares of common stock (par $5) to
be offered by the company to the holders of the common

42nd

office

Standard Aircraft Equipment

for

of Lone Star.

fered

June 26 filed

line

18 filed

A St. Clair Specialty Manufacturing Co., Inc.
June 29 filed 30,000 shares of common stock.
Price—
To

new

Sports Arenas (Delaware) Inc.
Nov. i8 filed 461,950 shares of common stock (par one
cent). Price—At the market (hut in no event less than
$6 per share). Proceeds—To selling stockholders. Offiee
—33 Great Neck Rd., Great Neck, N. Y. Underwriter—

Canadian Eagle, for

ment effective June 17.

None.

port filed 1,191,304 ordinary shares (£ nominal value).
According to the prospectus, an offer has been made
by Royal Dutch and Shell Transport to Canadian Eagle
Oil Compdny Limited, for the whole of its assets and

facilities.

the

$2,000,000 of 6% 10-year convertible deoentures (subordinated), due Jan. 1, 1969. Price—To be
lupplied by amendment. Proceeds—$750,000 to pay AMF
Pinspotters, Inc. for bowling alley beds; $350,000 to pay
for other installations, fixtures and equipment; $85,000
to expand
two present establishments by increasing
the number of alley beds by eight at Yorktown Heights
tnd by six at Wilton Manor Lanes, Fort Lauderdale;
1300,000 for deposits on "leaseholds, telephones and util¬
ities; and $395,000 for working capital. Underwriter—

165,000. outstanding shares of common stock.

Lynchburg, Va., and New York.

•

Sports

Rd., Mesa, Ariz. Underwriter—William R. Staats & Co.,
Los Angeles, Calif.
Z- 7

Corp. (7/16)
June 15 filed $5,000,000 of 15-year 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

erties a and

with

connection

None.

Proceeds —To pay off

$7 per share.

loans and for working

Reading Tube

incurred

of a
indebtedness; payment and interest on notes pay¬
able; and for general corporate purposes. Office—8 Middletown Avenue, North Haven, Conn.
Underwriter—

—

fcank loans, to expand plant capacity and research facili¬
ties through purchase, of machinery and equipment and

Price,,

Proceeds^—To be applied for costs in¬

payment of installment notes with interest; payment

outstanding shares of Lone Star

to be offered for the company's

bank

will declare the exchange offer effective if 95%

18,000 shares

curred .ana

troduction

basis.

June 29 filed 150,000 shares of common stock, of which

Thursday, July 2, 1959

share for each three shares held.

new

one

—$14 per share.

^ St. Regis Paper Co.

Price—At par. Proceeds—For work*

4r Raytherm Corp.

rate of

of such stock, and who have agreed to
accept tne exchange offer upon effectiveness of the reg¬

Corp.

June 26 filed $1,000,000 of 15-year 6% series A sinking
fund debentures due 1973, to be offered in denomination!

o,f $500 and $1,000.

stock

common

mately 62.5%

amendment

business. Pursuant to the

vUQuinby & Co., Inc.
June

•

each^share

expenditures and for refunding.

"—For capital

of
Brooks. The exchange offer is being made' by Ritter in
accordance with its Agreement with Brooks and certain
of its stockholders who own an aggregate of
18,805
shares of its outstanding common stock,, or approxifor

Hitter

stock

Soundscriber Corp.
May 13 filed 126,254 shares of common stoe- to be of¬
fered for subscription by* common Stockholders at the

preferred stock of Brooks and two shares oi" common

from page 39

N. Y.

Skaggs Leasing Corp.
June 4 (letter of notification) 240,000 shares of common
stock „(par $1).
Price—$1.25 per share. Proceeds—For
general corporate purposes. Office—301V2 W. 19th Street,
Cheyenne, Wyo. Underwriter—Harrison S. Brothers &
Co., Salt Lake City, Utah.
-V .j;*
I f
*
*

Underwriters—Charles Plohn & Co. and Nether-v

lands Securities Co.,
•

Technical

Inc., both of New York.

Operations Inc.

May 29 filed 75,000 shares of

(7/7)

stock. Price—To
construction
subsidiaries, for working
common

be supplied by amendment. Proceeds—For
program, for investment in
capital and other corporate

purposes.

Office

—

South

Number 5860

190

Volume

/The Commercial and Financial Chronicle

(41)
Ave., Burlington,
CovNew York.

Mass. Underwriter—Bear,
'

Stearns

;

Union

Light, Heat & Power Co. (7/9)
(
filed $6,100,000 of 30-year first
mortgage bonds
July 1, 1989. Proceeds—To repay advances from its
parent, the Cincinnati Gas & Electric Co., and to finance
a portion of the
company's construction program. Under¬

due

Inc. .stock,

Co.,

represented

writer

Associates, Inc., Washington, District of Columbia.

Templeton, Damroth Corp., New York (7/6-7)
June 5 (letter of notification) 30,000 shares Of common
stock (par 10 cents). Price—$4.50 per share. Proceeds
—For investment in various companies.
Underwriter—
Hecker *& Co.* Philadelphia, Pa.
/

acquisition

the

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 boiftfs? at
100% of principal amount. Proceeds—To retire the pres¬
ent mortgage debt- of the company, to pay off short,

Graham

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
Investment Planning Co., Washington, D. C.
/
•

tions

and

Travis

used

the

•

Inc.,

Lexington,

Mass.

^common

stock

(7/15)
(par $1).

To be

supplied by amendment.
Proceeds — To
selling stockholders. Business—Manufacture and sale of
precision transducers. Underwriter—-Kidder, Peabody &
Co., Inc., New York.
Treasure

Hunters, Inc.

June 4 filed 1 900,000 shares of common stock

one

cent).

op¬

Price—$1 per share.

erations.

Office—1500

Washington, D. C.

(par
Proceeds—For salvage

Massachusetts

Avenue,

Underwriter—None.

-^Triboat Plastics, Inc.
28 (letter of notification)

June

W.,

„/

tory.

filed

•

investment.

St., Arecibo, Puerto Rico. Underwriter—

24
—

—

Office—South

Main

writer—To be

supplied by amendment.

if Tuboscope Co.

Street,

Greenville,

Under¬

and
-

...

Glore, Forgan & Co., New York;
Rowles Winston & Co., Houston, Tex.
'
'
—

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%
principal amount. Proceeds—For construction, instal¬
lation of machinery and equipment and
working capital.
Office—511 Securities Building, Seattle 1, Wash. Under¬
writer—H. P. Pratt & Co., Seattle 4, Wash.

Tyce Engineering Corp.
May 6 (letter of notification) 100,000 shares of common
stock (no par).
Price — $3 per share. Proceeds — For
working capital. Office — 809 G. Street, Chula Vista,
Calif.

Underwriter—Pacific

Francisco, Calif.

Coast

Securities

/Co4

San

writer—G.

•

Voss

.as

Oil

underwriter.

Co.

(7/13-17)

May 27 filed 1,231,779 shares of class A common stock,
of which 231,779 shares will be issued to creditors. Price
—$1 per share. Proceeds—To be used for a waterflood

manu¬

gasoline
—

driven

6880

golf

Troost

carts

and

Blvd., North

equipment. Office

IT* ??

Oneida St., Oneonta,

Underwriter—None.

California

Telephone Co.

one

one new share for each three
common,
hew share for each five shares of
preferred stock
that date. Rights expire on July 15. Price—$17.50

share. Proceeds—Together with other
funds, will be
applied to the repayment of borrowings for cons4fruction
and/or for additional construction in 1959. Office—15900
San Jose-Los Gatos

Road, Los Gatos, Calif. Underwriter

—None.

June

Empire Life

Insurance

Co.

filed

212,000 shares of common 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 ^hereof. "
The options permit purchase of the
underlying shares
at $1 per share.
Proceeds—For general corporate pur¬
poses.

Office—2801 East Colfax Ave., Denver, Colo.

Western Wood Fiber Co.
March 5 filed 100,000 shares of common stock
(par $10)
and 40,000 shares 'of preferred stock

(par $25). Price —
Proceeds—For construction and equipment of
company's plant and for working capital. Office—300
At

Raceway

King Street, Winnipeg, Canada. Under¬
Everett Parks & Co., Inc., New York has

Englewood, N. J.; for

per

New York.

Dame Avenue at

1959, at the rate of

of land, new building, furniture and
fixtures, and for working capital.
Office—Keystone
Road, Southampton, Pa.
Underwriters—Marron, Edens,
Sloss & Co., Inc., New
York; L. B. Sehwinn & Co.,
Cleveland, Ohio; and First Albany Corp.,- Albany, N. Yr

withdrawn

and

purposes

May 25 filed 1,000,000 shares of common stock (par $2
in Canadian funds).
Price—$4.50 per share. Proceeds—
To construct and operate a
racing plant; and for work¬
ing capital and other corporate purposes. Office—Notre

(par

1 filed 44,729 shares of common
stock, being of¬
fered for subscription by stockholders of record June
17,

used for purchase

Victoria

stock

June

if Vector Manufacturing Co., Inc.
June 22 (letter of notification)
75,000 shares of common
stock (no par). Price—$4
per share.
Proceeds—To be

Underwriters

lightweight

if Western

(par $2). Price—To be supplied by amendment. Proceeds
—To selling stockholder. Office — 2919 Holmes
Road,
Houston, Tex. Business—The non-destructive testing and
inspection of drill pipe and other oil field tubular prod¬
ucts.

place

Western

to increase working capital. Office — 611,
Hansey
Way, Palo Alto, Calif. Underwriter—Dean Witter & Co.,
and

plant

Street, Reno, Nev.

(7/15)

San

common

★ West-Wood Processing Corp.
(letter of notification) 56,000 shares of common
stock, to be offered only to USAF officers stationed at
Mountain Home AF Base.
Price—At par ($1 per share).
Proceeds—For working capital.
Office—555 S. Center

Se¬

June 26 filed 200,000 outstanding shares of common stock

(7/6-10)

June 22

$4,000,000 of convertible subordinated de¬
bentures," due July 15, 1974. Price — To be supplied by

Francisco

production

held

corporate

N. Y. Underwriter—None.

and

(7/15)

240,000

Inc.

West End
Bowl-A-Drome, Inc.
May 26 (letter of notification) preferred stock. Price—
At par ($100 per share). Proceeds—For
purchase of land;

24 filed

general

Electronics,

Hollywood, Calif. Underwriter—None.

(7/15)

Proceeds—For

stock.

Price—$6 per share. Proceeds—For repayment
bank note; to complete the automation of the etched

two

selling stockholders. Office—611 Hansen Way, Palo Alto,
Calif. Underwriter—Dean Witter &
Co., San Francisco

amendment.

common

working capital.
Street, N. W. Washington, D. C. Under-

for working capital. Office

and New York.

ic Varian Associates

For

stockholders on the basis of one new share for each five
shares held. Price—$3 per share. Proceeds—To
develop

filed 20,000 shares of capital stock
(par $1).
To fee supplied by amendment. Proceeds — To

June

class
—

Wells Industries Corp.
May 14. (letter of notification) 66,600 shares of common
stock (par 50
cents) to be offered for subscription by

Trinity Small Business Investment Co.
April 17 filed 235,000 shares of capital stock (par $1).
Price
$10.75 per share.
Proceeds —For investment.

Proceeds

turers; and for working capital. Office —
Englewood,
N. J. Underwriter—Charles Plohn &
Co., New York.

premium
contracts and no less than $1,500 for
single premium
cont
cts.
Proceeds—For investment, etc. Office—1332
M Street, N. W.,
Washington, D. C. Underwriter—None.
June

6 filed

share.

facture of machines to be leased to
capacitor manufac¬

Variable Annuity Life Insurance Co. of America
April 21 filed $4,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual

Price

%•

cents.

contracts

Underwriter—O'Malley

•

■>

Wellington

May

(partnership in¬
terests) to be offered in units. Price—$5,378.39 per unit.

Proceeds—For

100,000

per

writer—None.

Sondrup & Co., Salt Lak«

curities Co.

filed

Office—1507 M

foil

investment

Price —$5

Vista Investment Co., Phoenix, Arix.

Mdr

Washington Land Developers, Inc.
June

if Val

Office—214

Underwriter—None.

Utility Appliance Corp., Los Angeles, Calif.
April 9 (letter of notification) 50,000 shares of common
stock (par $1).
Price—$5.75 per share.
Proceeds—To
selling stockholders. Office—4351 South Alameda Street,
Los Angeles 53, Calif.
Underwriter — Demnsov-Teeeler
& Co.., Los Angeles, Calif.
June

for construction and operation of a dental labora¬
W. Monument St, Baltimore

penses

—

None.

r-.

Oil Co. of New
York, Inc.
(letter of notification) 300,000 shares of capita)
Price
At par ($1 per share). Proceeds — Foi

ic Varian Associates
20,000 shares of capital

stock. Price—At par ($10 per share). Proceeds—For the
manufacture and sale of the company's products. Office
—Juan Rosado

if Warren Dental Laboratories, Inc.
4 (letter of
notification) 10,000 shares of common
(par $1). Price—$10 per share. Proceeds—For ex¬

development of oil and gas lands. Offiee—574 Jefferson
*ve
Rochester 11, N. Y. Underwriter—Frank P Hunt
& Co., Inc.,
Rochester, N. Y. Statement withdrawn.

company

filed 90,000 shares of

through James

June

Utah

stock.

St., Houston, Tex.

—

stock

common

erua

cor¬

Pipo

assets

stock

Underwriter—To be named by amendment
Albert Griswold of Portland, Ore., is Pres

Underwriter—Walter

May 6

against property addi¬
prepay additional notes. Office—3100

Trans-Sonics,

re-

Utah.

Price

The

City, Utah.

York.

June

30, 1959.

to be sold

(letter of notification) 900,000 shares of com
mon stock. Priced—At
par (10 cents per share). Proceed*
—For mining expenses. Office—305 Main
St., Park Citj

Underwriters—White, Weld &
Co., and Stone & Webster Securities Corp., both of New "
•

are

Utah Minerals Co.

prepayment of notes outstanding under revolving credit
agreement, balance to be deposited with the trustee
under the company's mortgage as the basis for issuance
of a portion of new bonds. The amount so deposited is to
by

April 11

* Transcontinental Gas Pipe Line Corp. (7/21-22)
June 24 filed 150,000 shares of cumulative preferred
stock (without par
value—stated,value $100 per share).
Price—To be supplied by amendment.
Proceeds—For

withdrawn

April 28 filed 157,250 shares of class B

Went.

March 20

Co., Chattanooga, Tenn., for the business and
that company. Office—Mountain
Brook, Ala.
Wade Drug Corp.,
Shreveport, La.

fnmnMiw'l nSnti

purposes.

Inc.

for all the
outstanding capital stock of these three
porations, and to the owner of Sherman Concrete

Uranium

Tollycraft Corp., Kelso, Wash. (7/6-10)
June 9 (letter of notification) 2,200 shares of common
stock (par $100)/-Price—$130 per share. Proceeds—For
general corporate purposes. Underwriter—Zilka, Smither
& Co., Inc., Portland, Ore.
Petroleum

July 1, 1979 (convertible into

Corp. of America, Portland, Ore.
April 30,1957 filed 1,250,000 shares of common stock (pai
16 cents).
Price—To be sunolied by amendment (ex¬
pected to be $1 per share). Proceeds—For exploration

•

Transcon

Co.,

preferred
stock, to be offered
Co., Talbott Con¬
Constructors, Inc., in exchango

by certain selling
stoQlyholders. Price — To be supplied by amendment.
Proceeds—To be added to the
general funds of the
company and used for corporate purposes,
including a
$250,000 expenditure for the purchase and installation of
new
processing equipment, consisting principally of two
additional trCaters for its Santa Ana
(Calif.) plant. Un¬
derwriter—Dominick & Dominick, New York.

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, r .Offering expected in early part of July.

■

Materials

to the stockholders of
Ralph E. Mills
struction Corp. and Talco

Price—To

of record June

term bank

1969.

maining 20,000 shares

—

if Vulcan

June 29 filed 10,000 shores of
614% cumulative
stock and
560,000 shares of common

Underwriter—Eastman Dillon, Union Securities &
Wnde
Tr
D.
Co., New York.
—wade, Jr., company s principal ffr
officer and stockholder,
who will receive a commission of
• U.
$1.50 per share. Prico
S. Polymeric
Chemicals, Inc. (7/15)
—At par ($10 per
share). Proceeds—To purchase addict
June '11 filed 75,930 shares of common stock
(par 50
tional machinery and
equipment; research and expert*
cents), of which 55,930 shares are to be offered for sub¬
mentation; for initial contracts; and purchase of addi¬
scription by stockholders at the rate of one new share
tional companies.
Underwriter—None.
for each six shares held

;

•

by Pioneer.

par.

Terminal

certain real and personal
properties operated under leaso

common to July
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
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

Building, Cleveland, Ohio. Underwrite?—Fulton
Co., Cleveland, Ohio., The offering has been
postponed indefinitely.
/
'
Reid

issuable upon the exercise of options
granted key em¬
ployees under the company's Employees Stock
OptionPlan.
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

Street, New York 15, N. Y.

tures due

Tower
*

competitive

Stuart

United States Plywood
Corp. (7/15)\
June 10 filed
$15,000,000 of 20-year subordinated deben¬

Tower

Proceeds —For

Halsey,

Office—Tiffin, Ohio. Underwriter—None.

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.

United States Glass & Chemical
Corp.
Nov. 26 filed 708,750
outstanding shares of common stock.
Price—At market. Proceeds — Tt>
selling stockholders.

Keys, Inc., Providence,11R. I.
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 & Co., Providence, R. I.
Terminal

determined

corporate

& Co., New York.

Vulcan Materials Co., Mountain
Brook, Ala.
May 7 filed 252,526 shares of common
stock, of which
142,526 shares ''represent the balance of
250,000 shares-

One Wall

Ten

•

bidders:

other

St., Newcastle, Wyo.

Underwriter—Hill, Darlington

bidding.
& Co. Inc.; White,
Co.; Equitable Securities Corp.; Salomon Bros.
& Hutzler; Morgan Stanley & Co. and
W„E. Hutton &
Co.« (jointly); Blyth &
Co., Inc. and First Boston Corp.
(jointly). Bids—Expected to be received up to 11 a.m.
(EDT) on July 9 at the office of the Irving Trust
Co.,
Weld

—

Probable

notes, to pay for im¬
provements upon the plant leased to Microwave, and
for working capital.
Office—1500 Massachusetts Ave¬
nue, N. W., Washington, D. C.
Underwriter — E. L.
Wolf

program, and for working capital and
purposes. Office—211 South Seneca

June 12

Technology, Inc.
May 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

par.

Montgomery

St.,

San

Francisco,

Calif.

Uiiderwriter-

None.

ic Wilcox Electric Co.

(7/20-24)

June 24 filed 318,736 shares of common
lock (par $3),
of which 175,000 shares are to be offered for the account
of Jay V. Wilcox, President, and 143,736 shares are to
be offered for the account of the company. Price—To be

supplied by amendment. Proceeds—To repay outstand¬
ing short-term bank loans and for working capital. Office
'
•

Continued

page

Commercial and Financial Chronicle

The

—1400 Chestnut

—<Lee

Underwriters
&

Corp., New York, and Stern Bros.

Co., Kansas City, Mo.

Co.,

Thursday, July„2, 1959

Offering—Expected about July 29.

&.Co., Chicago, 111.

members of this club and of
Price—$375 per common share and $1,000

Concord Ltd.

Proceeds — To develop property
Underwriter—None.

debenture.

per

build certain facilities.

sale of 350,000

the

ing

stock.

Offering—Expected sometime this Fall.

writers

and

ditional

—

determined

York, N. Y. Underwriter—B. Fennekohl

New

York, N. Y.

shares of common stock. Of these

1,199,307 are subject to partially

holders of record Nov.

1, 1958, in the ratio of one new

share for each 2.33 shares

held

Price—$4

that date.

Proceeds—$300,000 will be used for payments
on contract to purchase shares of International Fidelity
Insurance Co.; $325,000 for capitalization of a fire insur¬
ance company; $500,000 for capitalization of a title insur¬
ance company; $500,000 for additional capital contribu¬
tion to Great Plains Development Co.; and $300,000 as
an additional capital contribution to Great Plains Mort¬
gage Co.
Office—319 E. "A" St., Casper, Wyo. Under¬
writer—None.
,.)■ :
share.

June 9 it was announced

Prospective Offerings
May 21 it was announced that the company plans to
issue $4,000,000 of first mortgage bonds.
Proceeds—To

construction costs. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; White, Weld & Co., Stone & Webster
Securities Corp. and Kidder, Peabody & Co. (jointly);
Salomon Bros. & Hutzler and Equitable Securities Corp.
pay

Offering—Expected late August or early Sep¬

tember.

May 21 it
the

$100).

Corp.

30,000 shares of preferred stock (par
—
To pay construction costs. Under¬

Proceeds

Albertson's

York; and
Offering-

Inc.

tures.

Hogle &

Co., Salt Lake City, Utah.

Offering—

•

May 1, it
holders

was

announced Bank is offering to its stock¬

of record April

Canada.

June

Distilling Co.

registration

was

..r

company

six-year

sold

the

for

company's

capital. Underwriter
Mass.

that

this

plans

company

plates

10
an-

secured

announced

•'

•

'si

•'

•

"•

Equitable Life Assurance Co.

-Dee. 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¬

•

Pacific

Northern

Associates, Cincinnati, Ohio.
(7/7)

Ry.

Bids will be received by the Company until noon

(EDT)

—

Proceeds

account.

—

Working

1974

Clayton Securities Corp., Boston,

inclusive.

bidders:

Probable

Halsey, Stuart &

Co.

Inc.; Salomon Bros. & Hutzler.
•

Coral

(Florida)

Ridge Properties

reported that the

was

company

plans

offer¬

Williston

•

holders

Underwriter—White, Weld & Co., New York.

the

Corp.

for

construction

Proceeds—To be

Underwriter — To be
bidding. Probable bidders:
; Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., White,
Weld & Co. and Smith, Barney & Co. (jointly),.; Laderi; burg, 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. y :
:
by

program.

competitive

was

Paget Sound

of debentures. Underwriter—D. H. Blair & Co.,
.

Extrudo-Film Co.

reported that this company, which is pri¬
vately owned, plans public offering of 175,000 shares of
was

common
stock.
Business—The company manufactures
polyethylene film. Office—36-35 36th Street, Long Island
City, N. Y.v Underwriter—Maltz Greenwald & Co., New

approval

★

capital and surplus. Underwriter

reported that the

company

65,000 shares of

Co.,

Inc.

that the company plans some
stock financing. Proceeds—'To seal¬

reported

was

additional

common

Speedry Chemical Products Co. Inc.

May 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¬
time in August.
\

★ Federated Investors, Inc.
of

Nitrogen

ing stockholders, UnderwriterWHarrlman Ripley & Co.,
Inc., New York. Registration—Scheduled for sometime
in July/ Offering expected in late August.

approved, subject to stockholder
the offering of 108,904 shares of

was

Light Co.

★ Southern

★ Federation Bank & Trust Co.
Directors

.petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc. and Lehman
Brothers
(jointly); Merrill Lynch,
; Pierce, Fenner & Smith, Inc.; Stone & Webster Securities
; Corp.; The First Boston Corp. and Smith, Barney & Co.
(jointly).
'
'
' "

July
the

Power

May 15, Frank McLaughlin, President, announced company plans to issue and sell first mortgage bonds later
in the year. Underwriter—To be determined by corp-

Offering—Expected sometime this Summer.

July 1 it

(8/5)

the basis of $100 principal amount of deben¬
common stock held of record

determined

reported that the company in the next
few months expects the issuance and sale of about $2,-

June 30

Co.

that this company plans

Aug. 5; rights to expire about Aug. 25.
used

authorized

preferred stock to 1,000,000 shares from 472,229 shares,
and the common stock to 25,300,000 shares from 20,300,000 shares.. Proceeds — For major expansion program.

June 8 it

Light

tures for each 40 shares of

Stockholders voted April 28 to increase the

announced

was

of approximately $10,996,000 of 15-year /con¬
vertible debentures, to be offered first to common stock¬

offering

Beane, New York.

Essex Universal

Power

Pacific

June 23

ing of $4,000,000 to $5,000,000 of debentures. Underwriters
—Cruttenden, Podesta & Co., Chicago, 111. and J. R.

June

July 7. for the purchase from it of $6,015,000 equip¬
maturing on July 30 from 1960 to

is contemplating
stock. Under¬

common

Philadelphia, Pa.

★ Supercrete Ltd.

;

1 it Was reported that the company plans early
registration of 200,000 shares of common stock of which
100,000 shares will be sold, for account of. the company

★ General Time Corp.
July 1 it

that

reported' that the

was

company

plans issuance

and sale of
$6,000,000 convertible debentures. Under¬
writer—Kidder, Peabody & Co., New York. Registration

—On

about

July 2.

Georgia Power Co.

and

other. 100,000

of.selling stockholders.

for. account

Proceeds—Reduction of bank loans and to add to work-

irig capital. Underwriter—Strauss* Blosser & McDowell,
Chicago, 111. Registration—On or about July 2.. //..
'

(9/17)
Union Electric Co.

announced that the company

was

plans to issue
30-year first mortgage bonds. Pro¬

construction

determined

...

program.

by competitive

Underwriter—To

bidding.

Probable

Feb.
pany

mon

bidders

(Mo.)

„

23, J. W. McAfee, President, stated that the com¬

plans to sell about $30,000,000 of additional com¬
later this year .through rights to common

stock

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Kidder. Pea¬

stockholders. Proceeds—For expansion program. Under-

body & Co. and Shields & Co. (jointly),; Lehman Broth¬
ers; The
First Boston Corp.; Morgan Stanley & Co.;
Equitable Securities Corp. and Eastman Dillon, Union

Probable bidders: Lehman Brothers; White, Weld & Co.,

the

offering of $4,500,000 of

company

common

contem¬

stock.

ceeds— For expansion program and additional

Pro¬

Securities &

writer—May
and
ner

Co.

(jointly); Harriman Ripley & Co Inc.
Registration—Planned for Aug. 21.
Bids—Expected to
be received on Sept. 17.

determined

competitive

bidding.

Shields & Co. (jointly); Merrill Lynch, Pieree, Fen¬
& Smith, Inc. Offering—Expected toward 4he end
third quarter of 1959.
•_

•'of the

(

Wayne Manufacturing Co., Los Angeles, Calif.

working

capital. Business—-The company is engaged in the manu¬
facture of aircraft and missile
parts, aluminum containers

Dec. 29 it

and beer barrels, aluminum curtain wall sections for the

and sell

building industry and other proprietary products. Un¬
derwriter— S. D. Fuller &
Co., New York.

mined by competitive

* ■

•.

notes.

Manufacturing Co., Kansas City, Mo.
was

•

Chicago

Offering—Expected in the middle part of Sept.

ceeds—For

plans early

Registration—Momentarily.
Benson

Inc.,"Cleveland, Ohio.

Underwriter—Fulton Reid & Co.,

June

North American

and sell $18,000,000 of

(7/29)

reported that the

$2,000,000

V '

•'

ment trust certificates

Dec. 10 it
Barton

July

17, 1959 the right to subscribe
on or before July 10, 1959 for 675,000 additional shares
of capital stock on the basis of one new share for each
eight shares held. Price—$32 per share, payable in *10
monthly installments from July 10, 1959 to April 8,
1960.
Subscription Agent—Royal Trust Co.,. Montreal,

•

<?•

certain

writer—Hecker & Co.,

y-a-v:

(7/16)

plans some financ¬
ing. Business—Distributor of electronic parts. Offeringor September.
y'\
-/

200,000 shares will be sold for the account of
selling stockholders, and 50,000 shares will be

the issuance

Bank of Montreal

Expected in August

offering of about 250,000 shares of class A common stock,

—None.

' V

received

Of which

Proceeds—To increase

•

derwriter—John M. Tait &

reported that the company plans some
additional common stock financing. Proceeds—For ex¬
pansion. Underwriter — Cumberland Securities Corp.,
Nashville," Tenn.
Offering expected in September or
October.

•>

June 2 it was reported that company

new

was

★ Appalachian National Life Insurance Co.
it

" :V-".

Construction Products Corp., Miami, Fla.

reported

Co., 'Ltd.

Telephone

Newark Electric Co.

James Comerford, President/ announced that
plans later in year to issue and sell $20,000,000
of debenture 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
6c Co. and The First Boston Corp. (jointly); White, Weld
& Co. and Paine, Webber, Jackson & Curtis (jointly).

was

Bros. & Hutzler.

19,

and New

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

on July 14,
capital stock to stockholders of record Aug. 7, 1959;
rights to expire on Aug. 28, 1959. Price—$30 per share.

jr'-j

will

'■•■■'•''V

v'"'

part of August. Proceeds—For capital expendi¬

'" '

Bids

Co., Inc., Los, Angeles, Calif.

Expected sometime this fall.

July

Telegraph

Missouri Pacific Ry.

210,000 additional shares of common stock (par $10)
its stockholders of record June 30, 1959, on the basis
of one new share for five shares then held (after a 50%
stock dividend); rights to expire on Aug. 3. Proceeds—
To increase capital and surplus. Underwriter—Blyth &

June

offering

York.

June 23' it was reported that the company contemplates
some additional financing, probably in the form of com¬
mon stock.
Business—Food stores concern. Underwriter

Washington, D. C,

and common stockholders.
It is expected', that '
rights to purchase, these share will be available during

•

New York.

writers—May be White, Weld & Co., New
Sterne, Agee & Leach, Birmingham, Ala.
Expected late August or early September.

—J.

...

announced that the company contemplates

was

issuance

000,000
Gas

financing. Underwriter—Auchin-

ferrea

El Paso Natural Gas Co.

Alabama Gas Corp.

Alabama

that the bank plans

■

announced that the company has decided
substantial portion of the capital required hy
of * common stock to be offered to both pre- "

the latter

June 15 it

(jointly).

Los Angeles, Calif.

National Bank,

Citizens

...

was

issue

and

company

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¬

per

Corp.

Merrill Lynch, Pierce, Fenner & Smith Inc. jointly.

May

Boston

to raise

Consolidated Natural Gas Co.

Wyoming Corp.
Nov. 17 filed 1,449,307

The First

(jointly);

stock

June

& Co., New

A;;'VW/;

Co.

J...

announced that company plans some ad¬

was

common

• Maritime

bidding.

Probable bidders: BIyth & Co., Inc. and Harriman Rip¬

Freres

Corp.

York.

ley & Co., Inc. (jointly); Lehman Brothers and Lazard

(7/6)
May 8 (letter of notification) $150,000 of 7% convertible
subordinated debentures due May 15, 1964 and 15,000,
shares of comnion stock (par 25 cents) to be offered in
units of $500 of debentures and 50 shares of stock. Price
—$500 per unit. Proceeds—For advances to Nautilus, a
subsidiary, for equipment and working capital; also for
working capital of parent and molds and dies for new
accessories. Business—To design and sell marine prod¬
ucts and boating accessories. Office—441 Lexington Ave.,
Inc.

Products,

Worthington

■

Under¬

competitive

Securities

Co.

closs, Parker & Redpath,

400,000 shares of common

Equitable

Travel wear

May 19 it

announced that the company in view of

was

generally favorable market conditions, is now consider¬

offered to

$25)

May 19 it

Leeds

Southwest Corp.

Central &

■

•

Wilmington, Del.
Oct. 27 filed $500,000 of debentures due 1991 (non ln-^
terest bearing) and 800 shares of common stock (par
Wilmington Country Club,

The First Boston Corp. and Blyth &

(jointly);

Weld & Co. and Shields &

Underwriter—-Cruttenden, Podes-

class A common stock.

the company is

that

reported

was

Inc.

Corp.; White,
(jointly); Kuhn, Loeb &
Co., Salomon Bros. & Hutzler ahd Eastman, Dillon, Union
Securities & Co. (jointly); Lehman Brothers and Bear,
Stearns & Co. (jointly).

seeking
early ICC approval for the issuance of 250,000 shares of
it

May

A^nue, Kansas City, Mo.

Higginson

Stuart & Co. Inc.;

Buckingham Transportation, Inc.

•

Continued, from page

•

(42)

Kansas

For

City

Power

Light Co.

May 26 it

was

reported that the company plans to issue
$20,000,000 of first mortgage bonds. Proceeds—

construction

program.

Underwriter—To

deter¬

bidding. Probable bidders: Halsey,

•

was

reported that this company plans

sec-

ondary offering of about 90,000 shares of common stock.

Underwriters—Mitchum, Jones & Templeton, Los Angeles, Calif.; and
Schwabacher &.'Co., San Francisco, Calif.

Proceeds—To

selling

stockholders.

Volume

190

Number 5860

The Comntercial and Financial Chronicle

(43)

Continued

from

page

and serial
ket

The

Implications of

No.

countries

introduced

ternal currency convertibility. The

tiations

round

Netherlands,

object mf

Belgium,

have

embourg

and

Lux¬

quantitative import

two and

dollar

half years.

seem

stated

the

over

The Dillon,

'.'Decision
borrow
for

materials and industrial products.

tematic attack

world

trade

with

liberalized

re-

dollar

„

liberalization

for

ment

basis

the

We shall

ing

iffs, surrounding about 90 million
consumers,
will be considerably
The'

general

lowered.

together

tion

tariff

common

and

substantial

tariffs

the

For

average. /American'. firms

many

will

Perhaps
-

chemicals—all

'/textile
and basic

ores,

oils,

without
'-within

which

will

subject either to Very low
or to no duty at all.

ket

been

and

States,
in

there

this

the

•

prod¬

need not remind

sharp

very

Market

you,

with

competition

exported

worth

im¬

and

And

ported

only
some%$3.9
billibn
worth. Obviously, there are many

American

goods which
competitive in Europe.

Yet, of
tures
an

n^uch

anxiety about
so

the

force.

past,

sometimes, wonder whether

which

successes

some

market

lead

not

niav

our

raising of
the American
through
the - exercise''of
escape clause: '
We

know from

tions

made

firms

that

you

it
of

the

true

and

your

field

fairly.

upon

between

highly

set

just

least,

ing

;

cake

a
a

it, along the

Walls

in¬

now

why

famous

welcome

road

i^oc

""Dillon

Proposals"

was

utilities

well above

again

led

mil¬
debt securities

bond

year

Issues

ran

$64

ago

ORLEANS,

Company, ; Inc.

joined

has

:/;

under

be¬

ELGIN,

111.—Taylor, Rogers &
Tracy, Inc. has opened a branch
office at 20 Woodland Avenue
der

the

direction

Vierling, Jr.

million

—

-—j

—-

THE TITLE GUARANTEE |

COMPANY

Josephtha!

antee

NOTICE

—

Keller

Title Guar¬

{

dividend of 32V&v

cents per share designated

the third

regular quarter-annual dividend folT

Gerald S.

wTith

the

Company have

claretl

1959, payable August 14th, 1959

affiliated with Jo-

formerly

un¬

Robert

stockholder a of record

•

President

COMBUSTION

\
BANKING ^

ENGINEERING

NOTICE

%
.r*" -A

/l he Chase Manhattan llank has de¬
clared

"the

I t,

of the

Bank,

Dividend No. 223

Quarterly Dividend of Twen¬
ty-Eight Cents (28<*) per share
on all the outstanding stock of
Combustion Engineering, Inc.
has
been
declared,
payable
A

payable August

1959 to holders of record

close of business

THE

13,167,001) shares of the capital

stock
1799"

dividend of 60c
per

The

closed
ment

transfer
in

the

July 15, 1959.
books

connection

will

with

not

July 24, 1959, to stockholders
of record at the close of busi¬

ness

the pay¬

July 10, 1959.
Otto W. Strauss

of this dividend.

Vice-President and Treasurer

MORTIMER J. PALMER
Vice President and Secretary

OTIS
ELEVATOR

GOODALL

RUBBER

Common Dividend No. 211
.

staff of
Candler

i •.

The Board of Directors has declared

quarterly dividend of

24,

record

1,1959.

1959,
at

payable July'
stockholders- of

the close of business

July 3, 1959.

Checks will be mailed.

H. G. DUSCH

Wis.—Richard P.

staff

has been declared,

121^c per share on all Common Stock outstanding payable

August 15,1959 to stockholders of record at the close of

the

•

quarterly dividend of $.60
per share on the Common Stock

COMMON DIVIDEND

.business August

Ziegler Co.

Charles C.

the
Inc.,

COMPANY

June 23, 1959

Vice President & Secretary

H. R. Fardwbll, Treasurer
New

[
,

{

td-}

July 30th, 1959/

WILLIAM H. DEATLY

sephthal & Co., 19 Congress Street,
was

DIVIDEND NOTICES

(Special to The Financial Chronicle)

now

management

DIVIDEND NOTICES

XCTREk

free¬

Ziegler [and Company, Se¬

curity Building.

the

Trustees of

Curhan is

opened

Taylor, Rogers Office*

million, but here,
offerings mounted to $85
million about matching the total
;of a year ago. Railroads raised
$11.4 million via bonds in the

BANK.™

Add"

—

joined

La.—Ranson

has

branch office in the Civic Center

from $86

Now With

3905

New Ranson Branch
NEW

stock

month.

the

total of $124

offices

of Arthur A. Maxwell.

Poplin- has

Walls-. Associates,

DeBruin

the

business from

Brillant Way.

ago.

year

Opens

indus¬

(Special to The Fjnancial Chronicle i

ATLANTA; Ga°

liberal

Proposals"

219

LOS ANGELES, Calif. —Frank
Klatt is engaging in a securi¬

play its full part in help¬
dirve the vehicle and to

WEST BEND,,

"Dillon

down

•

Co.

Industrial

hind

The

list

vehicle

The

motion.

y
philosophy has been written into- Building.,
the Jaw by the Common Market
With B. C.
treaty., '
...

That

tax-

with

securi¬

(Special to The Financial Chronicle)

ties

bonds, or
$69 million a year ago,
but new equity offering for the
utilities
dipped to $26
million
from $43 million^* year earlier.

this

dom, progress; and peace.

industrial¬
a

•

Month

BOSTON, Mass.

over

offices

F. W. Klatt

slated

against

none

Chase
Manhattan

just to
redistribution of

convincecWis; not
divided, but

steer

ized regions; and in the European

Community,

the

'CHARTERED

than

cut and

sides liberal counsels will prevail..
It is a matter of history that

tense

debentures

Busy

DIVIDEND

against the
could start

than

from

ket will

climate

most

but

mid-week

WORLD-WIDE

conducting

West Seventh Street.

the circumstances,
relatively busy month
raising of new corporate

Public

the $195 million of term

For the world economy.

But I think

been

Topping

was

business

DIVIDEND

entries took

Any

which

ties

trialized regions of the world are
its mptor, and" the Common Mar¬

opinion both in Europe and in

always

week

governed by
our own invest¬

one

America is in favor of freer trade,
Lam convinced that on both

has

this

Opens

ANGELES, Calif.—John R.

Jamieson

-J&.

and

trade

mar¬

this:

reaction

about

resources.

American

that the

say

bang. '

for

Inc.

(Special to The Financial Chronicle)

LOS

•

say

It is

bring

tariff

pressure

to limit imports.

Meanwhile

lion

large proportions.

exempt

frontier

you

Over

issue

walk

sanguine
;

bonds/*"

parade with

fact,

Market

Our, aim

market

made

treated

free trade: it is

representa¬

certain

there

any

chain- reaction.

exporters have had in the Ameri¬
can

issues

categorically: The i
is here to stay.
It is" somethingriflftore than a sim-.;
pie customs
It is a political

express

Fourth

Take
new

far

July double
holiday cut the number of work¬
ing days to a bare four. Several

Common

can^^oinise

So Lean

external tariff,

our

(

slowed
the

own
frontier
during so much of your

Exempts

are

Company of
the Kansas City

J. R. Jamieson

chances

will be held in
more

City Office

office, 21 West 10th Street.

Building

top grade utility and

corporate

Kansas,

Common

problem, 'and ' a tariff
im selling to you.
And

sometimes'

ket

ments.

exporting
manufac¬
We, too, have

you

The

will

potential

Tax

was

that

issued

partner

month the volume

industrial
obligations of recent
vintage have succeeded in chalk¬
ing up sizable premiums.

your

the

has

Market; will be

mon

export

problem,
just as

vast

same

withdrawn.

was

American investment in the Com¬

yob have.

the

economic

the .same rules

course. we llave as

interest

You. will

highly

are

the

see

new

provided
history.

billion

$9.4

some

manufactures

you

.i^rowthr!hat:

fiel'd1958; tfte-Uhited

States

port

ability to rise to new
opportunities. I am gratified that
of

recently

Drake and Frank A. Hawkins

line

list

was

with First Securities

capital was concerned.
Though
substantially behind the previous

rather well.

own

among

most of

your

many

United

Treasury

Salle

Cornwell, Jr.

Mr. Cornwell

may

in Hardy & Co.

relatively

are

pending

million

from the lows reached
immediately after syndicate sup¬

big business."
admired the
imagination of American business

The

of 68.

Considering

mar¬

definite

bulk

Fairly

recovery

Market

sub¬

corporates there has been marked

in five years not be
'But I have always

duties

manufactured

within

Even

Common

holding its

And

"any big business
factory or partner

(See

there

them,

convertible

rate prospects"over the

near-term.

ago,

the

for

money

week

Tuesday, to be underwritten
while on Thursday Union
Light,
Heat & Power will open bids for

action is

which

South

Wesley
Cornwell, Jr.,
passed away June 24th at the age

for

much

encouraging

corporations

waiting

develop

not

.been

now

Northrop Corp. has $10 million
of

educated

way or

are

Westheimer

KANSAS CITY, Mo.—Archie L.

corporate

in proportions and

that the

June

has

those

How about
ucts?

would

the

once

the

market prospects.

ex¬

the

considerable

abeyance

en¬

of the secondary investment

quite
leading American in¬
who said to be not

as. a

dustrialist,
very long

agricultural products, about 31%
of present American ; exports into
the
Community
consist*; ob raw

materials, such'
fibers, vegetable

far

so,

likely; will be

134

John W.

;

nourishment

for

market

Once

all

small

market

basis. How

little

35.)

But

ceil¬

at least

Zenncr,

John

veritable host of potential starters

But for the present the behavior

production in Europe
regreMheir decision.

not

the

Is Light

lined up for Monday.

may

into

money

for

judging from the calendar.

cleared.

sources

products, the
unchanged or
changed for"the better. '.With the
exception of energy products and
very

situation

that

the

once

while

97.67

R.
with

;

issue'

page

asked

Treasury
move

out

guessing

has already/ been
de¬ y American Interest Welcomed
upon, while for others; for
Meanwhile, we are pleased with
which special provision was made ,thg. growing
interest
that
the
in the treaty, it
will be decided .American busiqgss community is
upon before the end of this year.
showing- in the Common Market.
welcome
American
invest¬
Broadly speaking, I think it can We
be said
that
the
latter
will
be
ment, and I am confident that
the, arithmetical

lifting

of 5.5314%

offered

prospects

new

"bite" the exchequer might
tempted to undertake the first

ject

products

Merrill

associated

consider¬

5.5541%.

the

time

cided

the

eliminated

exploratory

some

raised

the

reduc¬

world,

that

since Congress

that

long-term

bring about

can

and

In Kansas

little else it could

ceiling

are

pected

and

summer,

fact

It took

Schedule

Eisenhower.

tirely,

for

are

complete the determi¬

latest

the

voted

rate

Chances

that

was

not

President

much, v^ery. briefly, for-the nation of our own external tariff
problem. What about tar¬ by the* end of this year, or at the
iffs?
As you know, the,common
latest in the spring of 1960.
And
external tariff will be based on yas one of your statesmen has put
the arithmetical average
of "the it," the* height" of the
European
existing customs tariffs of the six Community's "common tariff will
countries.
The
Benelux
tariff, depend upon the American Gov¬
surrounding some 20 million con¬ ernment's authority to make resumers,, will go, up a little.
The vductions. on a reciprocal
basis.
German tariff, surrounding some
We hope for our part that nego¬
50 million, will remain- about the
tiations
can
begin in GATT at
the

had

interest

The French and Italian tar¬

(Special to The Financial Chronicle)

CHICAGO, 111.—Fred W. Klewitz, Mrs. Evelyn J. Wertheimer,

the

figure out the win¬
bid 98.80 for 5%s

basis

second

There

decidetlHo raise

cost

markets

fillip.

at the moment,

.still

quota

same.

through

514% coupon for and interest rate

have

seems

despite

large, there
do

shaping the trade poli¬

Community-.
Tariffs

But

whirl.

time

the

needs,
keeping

investment

Treasury

for

provide

cash

much

expectations,
the

instead of the $4 billion
that-had been anticipated. By and

1953 has reached, for cies of other countries as well.
example, 86% for Belgium' and; "Under-.the' Dillon proposals it can
Luxembourg, 77% for " Germany-, now be used to achieve important
and 60% for .Italy.
joint "action with the European
:r :;'
<

Treasury

billion

the year

pretty

This
the

the

short-term

something of

half-finished

and

went

One group

ner.

immediate

given

basic mate¬ •strictions.
Since: .1934,
products,
your
Reciprocal
as
well ,as
many
manufactures. Trade- Agreements Act has been
Prance has liberalized her imports the keystone of American trade
of basic materials. At Jan. h? 1959,
^policy, and it has been an instru¬
Italy has

rials

its

though

own time-table in the
Market, and they open
encouraging prospects for a sys¬
on

State

procedure of market¬

bonds.

able

with
otur
Common

practically completed the lib¬
imports in basic

Three With Westheimer

the

Public

York

market

of very great

mar¬

Company,
City
of
Montreal, on its offering of $20 " Street;
million debentures really gave the

nego¬

the

eralization of its

has

tion

worldwide

the

ing $50 million of general obliga¬

importance, for the two and a half
years in question coincide exactly

longer
invoke
discrimination.
Germany
and

tariff

with

making

proposals

re¬

strictions vis-a-vis the whole free

world,

GATT

reduction of tariffs

announcedjto

GATT that they intend to harmo¬
nize their

put

negotiation

Utility District
Washington; yesterday.

New

new

ex¬

Co.

the routine

The Common Market
munity

bonds

through

Grant

York, June 24, 1959.

and Financial Chronicle

The Commercial
44

Thursday, July 2, 1959

(44)

BUSINESS BUZZ
on...
A

Behind-the-Scene Interpretitlon*

C.—Busi¬

WASHINGTON, Dis

ness

considerable

advancing under

momentum.

the

section

about

Just

wit¬

gains

with

country

substantial

nessing

every

increased sales and .larger pay¬

The

of
Com¬
Business
printed a

Department
of

Office

merce's

just

has

Economics

Several

optimistic report.

very

likewise
have
been
impressed
by the
accelerated
business pace and
the decline in unemployment in

Federal Reserve Banks

past few months.

what

Chamber

States

United

The

impressed by
ahead for the next
is

ofo Commerce
it sees

A survey conducted by its
publication, "Nation's Business,"
showed marked confidence by
businessmen.
The businessmen
year.

sales

will

there

believe

and

greater

relative stable prices

and

profits.

Seventy percent of the
businessmen

large
out
cost-cutting

plan

vigorous"

"more

carry

in the year ab«»ad. and
half of the smaller firms

programs

about

concerted efforts to keep
into their

plan

fat from edging back

The results of the
came
from 160 large-

survey

executives, and 86 ex¬
smaller companies.

company

ecutives

than 50% of the
companies in all classifications
predict their profit per dollar
sales
will
remain
about
the
Slightly

same

The

year

Economics

Business

that personal income
at $376 billion annual rate in
May recorded another sizable
advance.

above

Thus

year

reflect

now

ago.
The gains
increases in pay¬

most

rolls associated with further ex¬

pansion
A

employment.

marked

crease

and

was

in¬

employment
in

recorded

employment
other
nonagricultural establish¬
ments was"52.000,000 or 2,000,May

than the recession low

lowering of the sights of a few

has

ahead

march

been

underway

and

year,

business

for

the

The

has
as

has spread over an ever-widen¬

circle.

Commerce

economists

there

ever,

lag-export

Depart¬

declare. How¬

has

trade.

been
It

one

not

bas

Reserve

modernization

Federal

concurs

Governors

Reserve

Philadelphia

picture. In

Board

the

pansion

summary

began:-

con¬

"Ex¬

industrial

activity
continued in May, employment
increased further, and the de¬
crease
in unemployment
was
again considerably larger than
seasonal. Consumer incomes and

buying attained

first

the

ceeded

new

highs T", T

Commercial bank loans and the

"Business

with

is.

the

burden

the

for

resting

will

The

Treasury

tively stable since mid-May. but
on

corporate bonds and
short and intermediate-term

Treasury issues haVe increased
further."

Interest

Federal

June

its

reported

dealers

about

in¬

the

J20%

expansion

quarters

wheat,

SAN

shipments
of
household

major

all

Chamber

said

business.

reported by

1958.

reports

San Antonio

the Bank's review
"During the first

cluded

commonly
of high

Inc., 59 East 54th
York 22, N. Y.

Publishers,

New

Street,

(cloth), $4.00.

—

Fact Book,
of Fire

Insurance

Property

1959—National

Board

Underwriters, 85 John Street,
New York 38, N. Y. (paper).
Turkey—Annual Statement of the
Industrial
of

Bank
Caddesi

Development

Turkey-Necatlbey

Galata, Istanbul,Turkey
University

Chicago

versity

Chicago
—

Prices,

and

—

Uni¬

Press,

Chi¬

paper.

Profits

Pro¬

and

Assembly

New

The.

—

Columbia

Assembly,

University,

the

York,

(cloth).
Who's Who in

Summei field,

jet* propulsion

(paper).

Press

ductivity—Proceeds of the 15th

Public Relations—

Publishing Co., Inc., Meri-

PR
,

37, 111.

American

den,

New

Hampshire, $25.00

and William

Palmer, Templeton, Dobbrow &
Attention Brokers

Co.

and Dealers:

TRADING MARKETS

Botany Industries
Head Mills

Indian

Official Films

Our New

Carl Marks & Co. Inc.

Pub. Serv.

FOREIGN

SECURITIES SPECIALISTS

V20 BROAD STREET

which

York telephone number is

CAnal 6-3840

pre¬

pro¬

The four biggest cities of Texas
—Houston, Dallas, San Antonio

Worth

University

—

have

The Federal Reserve Bank of
Dallas reports that conditions in
the
Southwest
arefavorable.

Fort

Perkins

Wages,

College. Speakers in¬
Martin

Dr.

professor

was up
17% from
dryers were 30% higher,

ductivity of capital.

and

From

John

Campus—

Talk

Plain

to observe

rates, which

periods

Philadelphia

7, Pa.

American

Commerce

Philadelphia,

Annex,

Southeastern

risen sharply the past year, may
be
returning to higher levels
in

City

—

Hall

National

collar workers.
The Bank went

unit for

special space

Alamo

Princeton University;

'Electrical Mer¬

chandising',

the

Co.,

searching
for
salesmen,
stenographers and other white-

have

1958

City

age forum in cooperation with the

ap¬

quarter, the number of washing

eco¬

Newton

machines shipped by producers,
as

Philadelphia Financial Report for

Tex.—Lentz,

ANTONIO,

which

$7.50.

petroleum.

Building, sponsored

trend,"
of

available

reports
•

iron-steel,

coal,

employers are again will¬
to take' on trainees and to

interest

(paper, $6.00)
Atomic Indus¬
Forum, 3 East 54th St.,
22, N. Y.—the three

concentrated

Space Age Program

May, new claims for

"Factory
types

consumer

Bank

first

Interna¬
Financial

New York

cago

1958.

Bank

been

the

Problems

trial

Lentz-Newton Sponsors

unemployment compensation
were
only about half as large
as
the corresponding month of

Forecast

has

Bank

[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.]

pliances participated in the up¬

Rates

Atomic Haz¬

catalogue for Fall 1959

centers. In

have

Reserve

steady
growth
spending.
The

ing

and

report

Chicago

Reserve

only five commodity groups:

cotton,

Bank

Employment gains have been
in nearly all Midwest

expected

are

"Financial

Protection Against Nuclear Risk

Review of

evident

The

that

outstanding features in the

that

Reserve

spring months, and food stores
have
been
recording
modest

Louis agrees in its cur¬
"Review" that one of the

nomic

business conditions said that

creases

St.

rent

Federal

materials
1

in¬

climate.

patterns

—

$1.10);

(paper,

tional

36%^'

1957 and 1959, was

gains.

business

publications

nity

and

between

District.

Reserve

42%

other
sources,
pointed out that the lone ex¬
ception has been the absence
of any recovery from exports.
It
is
worthy of emphasizing,
said the institution, that roughly
three-fourths of the drop in the
value of United States exports

automobile dealers and building

how likely is

spending

established

vailed

...

long-term

three

28%, refrigera¬

freezers

Federal

Bank,

that

asks

series

Insurance—A

Nuclear

that business
activity across the country has
been expanding vigorously. The

growing cities in

continue upward.

Yields

and State and local government
securities have remained rela¬

New York agreed

moisture is needed
and cattle raising in
Western
sections
of the

The

consumer

spending

Reserve

Mid-West Gains Cited

spending on food
'and clothing has risen. For 62
quarters in a row spending on
services has edged higher. The
increases have been responsive
to

the

crops

Far

the 27 of the last 30 quar¬

Federal

15%,

The June Monthly

Houston has been one

Eleventh

rapidly?

crease

ters

this

dishwashers

Additional
for

advancement

consumer,

that

In¬

pastures
and
ranges
over
a
large part of the district in May,
especially in eastern sections of
New Mexico qnd Western Texas.

publicatioii,

"Business Review-."

articles

North America for years.

now

' of

Review,"

economic

tors

the fastest

ranges

the

District.

and

ex¬

(

Bank's

electric

the subject
in

Eleventh

the

store

1959

served.
The

are

cidentally, the quartet of cities
are
also
the largest cities of

conditions

expectations

that

says

half

to grow,
series of

Bank's

majority, and matched the most
optimistic projections made at
the turn of the year. Practically
everyone
who sells anything
from
cars
to
carpet tacks is
doing better this year, it ob¬

seasonally adjusted money sup¬
ply continued to increase. Se¬
curity yields contihued upward
in May and early June

Rains increased prospects for

business

that

clear

System

with the Commerce De¬

dition,

tinue

Thriving

Lines

partment in the overall business

new

(paper, $2.00); "Nuclear
Liability Insurance and Indem¬

plans for new shopping centers.

Rise

general and more partner
general partner!"

less

were

ards"

pur¬

programs

V.—Re¬

year

Protection Against

Optimistic

Board

there

wish

our

companies

trade

expanding

also

are

equipment

their
Retail

chases.

the

for

sterdam.
"I

construction contractors are in¬

creasing

Bank

1958—De
Nederlandsche Bank N. V., Am¬

port

high-rate of
construction
activity,

overall

90, 111. (paper).

cago

Nederlandsche

the

A. Free¬

Jr., before the Association
of Reserve City Bankers—First
National Bank of Chicago, Chi¬

half of this year.
Because

Competition—Reprints of

address by Gaylord

man,
-

portation group. Gil pipeline
companies are going to increase
capital
expenditures.
Invest¬
ments
by trucking companies
is undergoing considerable re¬
covery.
After a two-year de¬
cline, communications firms are
going to spend more the last

those

airline

jet

expanding

been

moved forward.

The

(paper), $6.00; hard cover, $8.50.
Mutual

programs continue to dominate
investment in the nonrail trans¬

rise

maintained its momentum

ment

East

pipeline companies."

large

Data

Publishing Company, 405
Superior St., Duluth, Minn,

son

the

attributable

"is

1959 — Market
Book—David¬

Handbook

Source

programs

panies

St,

(paper).
Liquor

from

decrease

Erie

West

has been made
electric companies, and
a
greater decrease by natural
gas companies. The reduction in
the programs of the gas com¬
early

April 1958.

than

No. 5— Nu¬
Corporation, 233
Chicago 10, 111.

Isotopes—Bulletin

by the

May,

than

The

slight

1958.

less

Analytical
of Radio

With the Aid

clear-Chicago

The Federal Reserve. Bank of

Department's

Commerce

Office

about

invest

public
planning to

now

are

Evaluate

Method

hand

other

the

utilities

reported

the

IIow

of 1957. Manufac¬
companies
expect
to *
spend more than $12 billion this
year or 8% more than 1958. •
record

All

ing

was

—

paper.

land 12%
spent
in
the

1958,

than
than

ended December 31, 1958—
Deposit Insurance Cor¬

Federal

poration,1 Washington, D. C.

of today.

Personal income Up 7

000

year

less

■

and

about

1959,

equipment

operations.

billion on new plant

832%

Cor¬

Insurance

poration—annual report for the

business expects to spend

says

Deposit

Federal

Commerce; Department

The

turing

rolls.

the

mA/

Spending

Business

the economy

and

good

V/M#

HMs

JTJL §

Capital

from the Nation's

con-

•

LERNER&CO.

NEW YORK 5, N. Y.

TEL: HANOVER 2-0050

TELETYPE NY

1-971

Investment Securities

10 Post Office

\
n

,ii

H'*m»

inn"

Square, Boston 9, Mass.

Telephone

»*iVfffVilh ifff

«■

HUbbard 2-l!)90

Teletype
BS 69

Full text of Commercial and Financial Chronicle : July 2, 1959, Vol. 190, No. 5860, Section 1

FRASER