Full text of Commercial and Financial Chronicle : July 30, 1959, Vol. 190, No. 5868

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JUL

ESTABLISHED 1839

311959
ipinATlM*

Tke Commercial

an a

Financial
R«g. U. 8. Pat. Office

Volume

190

Number 5868

New York 7, N. Y.,

Thursday, July 30, 1959

Price

50

Cents

a

Copy

EDITORIAL

How Will Atomic

As

We See It

UI have been

Affect the

forced to the conclusion that the

Federal Reserve authorities have reached

a

leaders

the

A paper on the

probable impact of atomic energy on
can hardly present any startling new
facts, because many papers on simi¬
lar subjects have been presented in

or a

country,

the

oil

industry

the

warped notion of the functions
of a central banking system and its relation to
government in general. What we are certain of

really disturbing about it is the fact that it

neatly expresses" the views and feelings of
tions of the
are

both

Public whose ideas of

a

eternal

to

a

which

still current

are

so

sec¬

who

central bank

are an
monetary and credit

has

particular

no

particular

no

can

In

hardly fail to lend

into
Robert E. Wilson

Congressional Powers
there

be

some

be conceded that

on

U. S. Government,

page

tial

■>—

and

NOW IN

afforded

are

it

resulting

It

in

tragic
labor
a

and

gaged

in

done

gains of labor.
it

as

While
a

without

deterioration

It is

endangers

political

as" well

whole.

be

serious

a

because

nomic

ridiculous

is

cannot

of the economic

the

for

the

titanic

eco¬

freedom
the

for

country

nation

is

as
en¬

struggle against
it
is especially

Soviet
expansion,
disheartening to have

to

oppose

an

attack, perhaps unwitting,
against
key factor in a free society,
namely, profits.
The purpose of this paper is to
explain why a controversy of wages

facts

Prof.

A.

O.

Sharron

versus

have been:

gers

on

life

24

page

so

that

to

profits is fraught with dan¬
our Constitution and way of

all who would defend these

and act accordingly.

can

take heed

Americans did precisely this when

abandoned Government price controls and when

by Mr. Wilson before the Fifth World Petroleum Con¬
York City.

Continued

on

page

28

REGISTRATION—-Underwriters, dealers and investors in corporate

a

complete picture of issues now registered with the SEC and poten¬

undertakings in

our

"Securities in Registration"

State, Municipal

Section, starting on page 34.

and

***»

STATE

Municipal

MUNICIPAL

AND

Lester, Ryons & Co.

Bonds and Notes

California

Exchange
Member American Stock Exchange

Members New York Stock

BONDS

HAnover 2-3700

Public Housing Agency

Angeles 17,

Hope Street, Los

623 So.

Securities
telephone:

no

are

Rebuts the

wages.

profits and savings.

on

tragic.

because

they
New

gress,

of short-run data, the

ability to raise

Keynesian and Marxist views

to grind
design to

dramatic

most

twentieth century

Housing,

State and

criteria of increased

appraisal, it
back a bit

Continued

26

SECURITIES
securities

in

Publie

sumption;

let it

the

of

the

the economy declines.

points out that current steel profits

*An address

Continued

\

economist

go

Congress, with the cooperation

DEALERS

use

Current demands of organized labor to push for wage
increases at the expense of profits are both ridiculous

tremendous growth in world energy con¬
and second, the rapid shift in the sources

the

first,

misunderstanding,

as

Warning against the fallacious

the

beginning such
perspective to
history.

Two
of

struggle, it would

war

wage

ously affected and labor hurt

promote.

aid and comfort to such elements.

Lest

on

titanic cold

differential for similar product with marginal firms seri¬

axe

reactor

aids the

system in pus country. It

a

Nevertheless, in
widespread misapprehen¬

of

sions

inaccurate and who
sound

in

profits to finance

subject, and the rapidly changing
technology of
reactors
for
power
production, it seems that there should
be
an
up-to-date appraisal of the
atomic energy situation by someone
or

cjuJe and

are

use

past ten years.

view

is that it had been much better left unsaid. What
is

we

price

developments.

abroad, Mr. Wilson sees: (1)
under-developed countries becoming the last to employ^
nuclear power to good
advantage; and (2) England
and some other Western
European countries outpacing
us
by five years in competitive progress.

Congress represents merely an
for the prerogatives of Con¬
gress, a play for political popularity with his
party and, perhaps, with the voters in his part of

Economics

after-tax profits went from $20 billion to $18
billion;
that it would mean unequal pay,for equal work or

As

concern

Professor of

increases and/oir
In support of this, Dr. Sharron finds, for
example, that steel wages grew from $90 billion in 1948
to $150 billion in 1958 whereas in
comparison corporate

the U. S. and foreign oil industry will be neg¬
For the U. S., he forecasts a tremendous and
growing demand for liquid fuels for a long time to come

of the most influen¬

SHARRON

price cuts.

on

without any threat emanating from atomic
for developments

as

be tragic to

ligible.

in

exaggerated

Poised

providing an up-to-date assessment of atomic
energy's prospects divided into subsidized and unsubsidized categories, Mr. Wilson contends the atom's im¬

We shall not undertake to decide whether this
tial

Associate

After

pact

Price-Cats

or

ARTHUR O.

Duquesne University, Pittsburgh, Pa.

Retired Chairman of the
Board, Standard Oil Co. (Ind.)

*

one

By DR.

Member of the General
Advisory Committee to the
United States Atomic
Energy Commission

of Congress. It appears that the fault of the sug¬
gested committee bill (for authorizing higher
rates of interest on
long-term government obliga¬
tions but suggesting certain
changes in Federal
Reserve policy) was not that the
language itself
was
wrong, but that the Congress dared even to
speak to the Federal Reserve, a creature of Con¬
gress."—Sam Ray burn, Speaker of the House of

remarkable utterance of

Wage Rises

By ROBERT E. WILSON*

point
in their thinking where
they consider themselves
immune to any; suggestion or direction
by Con¬
gress, let alone a simple expression of the sense

Representatives.

Profits Cannot Finance

Energy
Oil Industry?

Associate

Members Pacific Coast

Exchange

UNDERWRITERS

CHEMICAL

Offices in Claremont, Corona
BROKERS

DEALERS

•

THE FIRST NATIONAL CITY BANK

BANK
bond department

Burnham
MEMBERS NEW

30 BROAD

\

ST., N.Y.

and

YORK ANO

15 BROAD STREET, NEW YORK 5, N.Y.
C A SUE:

Dl 4-1400

Bond Dept.

•

Teletype: NY 1-708

To

Markets

Active

Dealers,

T. L.Watson & Co.
ESTABLISHED

Haw Fork

Brokers

Block

Commission

Inquiries
Orders

Canadian

Stock

Exchange

BROAD

STREET

NEW YORK 4, N. Y.
FIRST

<£0ilthW€At COMPANY
DALLAS




BANK

offer

DIRECT

WIRES TO

On

Direct

All

Exchanges

NY

•

PERTH

AMBOY

NEW YORK

rights at the

'

California

market.

private wires to Toronto, Montreal,

Ottawa, Winnipeg, Calgary, Vancouver,
Victoria
and
Halifax

Municipals

(Municipal Bond
Department

MONTREAL AND TORONTO

Goodbody
115 BROADWAY

these

Domixiox Securities

1-2270

&

1

NORTH

LA

(ORPOKATIOfi

Co.

MEM3ERS NEW YORK STOCK EXCHANGE
BRIDGEPORT

buy

cijrrent

Invited

Executed

to

for

DEPARTMENT

CANADIAN

Teletype

25

August 7, 1959)

(Rights Expiring
We

New York Stock Exchange
American

Chase Manhattan

Correspondent-—Pershing St Co.

Imperial Bank of Canada

canadian

1832

Members

Securities

Securities

Maintained

and

Banks

securities

Investment

the

TEl*TYRE NY 1-2262

COBURNHAM

Distributor

Dealer

Santa Monica

Inquiries Invited on Southern
California

Net

Underwriter

San Diego, Santa Ana,

EXCHANOeS

•

DEPARTMENT

BOND

Pasadena, Pomona, Redlands, Riverside,

OF NEW YORK

Company

AMERICAN STOCK

del Mar,

Encino, Glendale, Hollywood. Long Beach,

CORN EXCHANGE

SALLE ST.

CHICAGO

Associate

40

Member of American

8tock Exch.

Exchange Place, New York 5, N. Y.

TeL WHitehall 4-8161

Tele. NY 1-702-3

IBattk of Atttcrira
NATIONAL

^^ ASSOCIATION

300 MONTGOMERY STREET

SAW FRANCISCO 20.

CALIFORNIA

1

Financial Chronicle

The Commercial and

2

.

.

Thursday, July 30, 1959

.

(414)

The

Brokers, Dealers only

Banks,

For

Try "HANSEATIC"

£■ the investment

reaches

a

the

"Warren

sure

HANSEATIC."

New York Hanseatic

earnings

Established 1920
Associate Member

120 Broadway,
WOrth

Exchange

Stock

New York 5

Teletype NY 1-40

4-2300
BOSTON

•

CHICAGO

PHILADELPHIA

•

SAN FRANCISCO

Private

Wires to Principal

Cities

for the

BONDS

MUNICIPAL

WEST VIRGINIA

CAROLIN,

SOUTH

CAROLIN

<dl
&co

VIRGINIA

the

of

one

industrial,

supplies

also

"Warren"

use.

Inc.

STREET

operat¬

ing subsidiaries and affiliates are
located throughout the U. S. and

—

Refined

"Warren"

Scotia.

has

the
Richmond-Petersburg. Toll Road,
the Maine Toll Road, the third
worked

Liquid

—

such

on

projects

Ihe Lincoln

of

tube

as

Tunnel,

the

Portland,
Oregon,
International
Airport, and the Capehart Hous¬
ing Project at Fort Knox.

Export*—Import«—Future■

DIgby 4-2727

The

now

company

75

owns

plants of which
approximately half are portable
and
can
be moved to different
sites from time to time, and the
balance
are
permanent
plants
asphalt

paving

which

Assembly Pro kcts, Inc.
...

a

and vigorously

young

ex¬

others, the
metropolitan
areas
of
Atlanta,
New Orleans, Knoxville, St. Louis,
Dallas,
Houston,
Los
Angeles,
Syracuse, Newark, Richmond,
Toronto, and Vancouver.
among

serve,

the past five years

Over

panding electronics organization
has

unlimited

tapped
market

passing the
ern

full

base

range

industry.

virtually

a

_

encom¬

of mod¬

preciation charges
quite
net
income,

normally
is

l ;

of

each year are
bit
higher
so
cash flow

a

substantial

—

profits

$6.33
for
each
the 251,708 outstanding shares,
totaled

flow

cash

request

method

of

declining

$15.24

a

balance

depreciation has

been

used since 1954.
.

'

"Warren's"
of

one

Members New York Stock

Exchange

consistent

revenues,

up

in

record

growth."

every

year

1949, have, increased at

almost

Gross

since
aver¬

this

does

not

Tele: NY 1-1385




had not

but

will

building

be

shorter period

period.

13 -year

of

penditure

maintenance

$2

This

annual

the

ex¬

plus

for

billion

repairs.

and

The
estimated

Bureau of Public Roads

highway spending would be
$6.2 billion in 1958, $7.1 billion in
1959,
$7.3
billion in 1960, $7.7

that

billion in 1962,
$8 billion per year in

billion in 1961, $8.1
and

about

1963-69.

This estimate has proved

optimistic to date because of
delays in getting the program off

too

the

ground.

cated

far

so

funds

In fact,
have

been

allo¬
to

used

,a

large extent for engineering costs
and

right of

acquisitions of

been

accelerating and in

ture

construction
for

count

ing

at

a

rate

of

almost

increased from $2.78

in 1949 to.

9%
a

a

share

$6.33 in 1958. The great¬

est amount of earnings

growth has

with

will

costs

and

in

the

more

recent

years—

in

agents

of¬

plete
carrier,

service
offered
shipping cargo

ac¬

ex¬

"Warren,"

will

coverage,

substantially

for

many

to come from this program.

years

despite

the

company's

excellent future growth prospects
and

past record of expansion; its

capable,

experienced

and

ment;

the

sound

stock

is

manage¬

financial

posi¬

available

at

a

low multiple of earnings and

cash

flow.

ress

should

Future
lift

earnings prog¬
price

of

the

stock, and when the company be¬
comes

better known,

at

a

it should sell
1

higher ratio to earnings.

?

submit your

Perhaps

the

0
0
0

we can

help.

0

planes of its own but

■\0

j ALBERT J. CAPtAN & CO. 4
Member*! fhilaj-Bait
Stock fxch.
a.

4

lines.

If, however, AEI's business were

1

0ip8$y--Bo*fon/& --fiiftt. :5iock:Sxch!-:-(AnoK:)y.y:-. 0

£

LOCUST STREET, PHltA. X PFNNA.

only service, it would in essence
be

different

too

of

other, service

businesses,

somewhat

the very

of

It differs
reason

of

a

report

Corporation

on

small shipments into a
shipment in order to get
of lower rates

ihe benefits

R. G. Williams & Co., Inc.
149

and the "volume"

rate is

Broadway

him to ship through a

(AEI,

in

this

in

practice;

reality

and

the

the

encourage

shipper benefits by
expedited handling at

the carrier benefits
by avoiding the headaches as well
as the expense of solicitation, bill¬
ing, handling, forwarding, etc.
rates;

well

to

in

engage

registration

is

addition

that

airlines)
from

tion. The

that

note

air

Digby 9-1343 • Teletype NY 1-2225

in order

required
the

by

Board

ings.

must carry on I

are

in

prohibited by
in consolida¬

justifiable hopes of securing ap¬
proval for the chartering of
planes, considered a very profit¬
add

CROSS

carriers

Company also entertains

business

RED

the

and

direct

engaging

could

Your

consolidation,

Aeronautics

able

Y.

rather

the

getting

(the

N.

consolidator

instance)

benefit,

appears,

airlines

law

6,

in effect

than direct with the airlines. Both,

is

YORK

with the shipper to induce

shared

to

NEW

accru¬

ing to volume cargoes. The spread,
therefore, between "retail" rates

lower

on

Hermetic Seal

many

large

it

staff has

research

consolidation

which the Company
places much emphasis and hope):
which essentially is the combining
one

Our

prepared

significantly, however,
of its unique potential

in the field of cargo

(and

0
if

hun¬

from

better perhaps
rapid growth
of air cargo at present and various
predictions
that
air
freight
is
scheduled to double and possibly

by

0

offerings.

facilities of existing air¬

no

owns

not

0
0
0
0
0

a

ISSUES

INACTIVE

the U. S. and the rest of the globe.

and

one

which

In

considerably

to

earn¬

prospect,
also, is
the
possibility that the Gov¬
ernment through its MATS pro¬
gram (Military Air Transport Ser¬
vice), which in some areas is in
direct
competition with private

v

L

find

home for certain of your

by
any
between

strong

the

If you can't

cities

353

throughout the world. It provides
the most comprehensive and com¬

It

that

national

its

benefit

f

been

extensive network of

an

fices

\

obvious

is

the fu¬

roughly 4/5 of road

penditures.
It

way.

actual construction has

However,

very

Broadway, New York

the
increasing

rate,

STOCKS

and

broker

clearance

warder,

INSURANCE

LIFE
largest for¬

world's

the

is

consolidator of international cargo,
with

on

cars

rapid

include

Bankers

COrtlandt7-5G80

n-

quadruple in the 1960s.

Earnings, which have been grow¬

111

AEI

The Federal Government pius 1^

Exchange

year,

a

Investment

&

111 Broadway,N.Y. 6

a
for

t

s

~

Tokyo, Japan
Brokers

capital appreciation.

it

states, it is estimated, will spend
about $100 billion for new roads

Detroit

rate

b

u

s

Inc.

Yamaichi Securities Co., Ltd.

my

candidate
Pauley

Milton

of

Affiliate

judgment is

because

over

of New York,

time

in

and

though

tion,

annual

of

an

is

T.

Best"

this

at

write

Yamaichi

De¬

Like

I

information

or

Securities Company

cidedly, it is
"The Security

Highway and
Acts of
1956 provided for a 13-year con¬
struction
program
beginning in
1957 and
running through 1969.

However,

operating

(O.

18).

Aid

13%.

Tel: WOrth 4-1155

C.

Revenue

Highway

age

Exchange (Associate)

of

a

Call

Express

r

Corp.

dreds

Federal

The

the

Exchange

American Stock

more

current

de¬

of

International

time.

Midwest Stock
Stock

A i

with Federal Aid now available to

states,

For

velopment for

Civil
The

share.

Straus, Blosser & McDowell

phase

struction

the

and

new

a

dynamic

It

a

branch offices

STOCKS

contributing

uses

at

our

JAPANESE

than at any other
its 24-year history, to be

in

to

picture, highway con¬
would
probably have

proceeded

Mobile, Ala.
Direct wires to

timely combination of events,
internal and external, ap¬

time

future

in

Government

Federal

the

New Orleans, La. - Birmingham, Ala

pears now, more

the result
that roads in many areas are in¬
adequate and outdated.
Even if

last

equalled

while
upon

have

than

year

Study

capital

totaled $14 V2
million, while depreciation charges
amounted to $11.8 million.
De¬
expenditures

which

A

be

growth

steadily

the

Canada,
in
Virginia,
Missouri,.
compressed into
Texas, Tennessee, Georgia, Ken¬

Nova

Raw

number

Exchange

NY 1-1557

Express International Corporation

both

of traffic, with

amount

tucky,
New
Jersey,
Alabama,
Massachusetts, Oregon, California,
British
Columbia, Ontario, and

SUGAR

not

and

road

of

NEW YORK 5, N. Y.

has

tion

increased

as¬

PAULEY

York City

New

Air

highway construc¬
kept pace with the

New

years.

HAnover 2-0700

Troster, Singer & Co.,

entered the

The company and its 15

WALL

MILTON

been

probability

all

In

Stock Exchange

Stock

tial long term

accelerated

be

will

lumber.

osoted

#9

re¬

has

of

rate

York

American

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

company

growth

maintained?

private

and

this

Can

streets,

of

builders

phalt paving mixtures and readymixed concrete, and produces cre-

LAMB0RN & CO.,

Members

of World War II.

end

coun¬

highways, expressways, airfields,
parking
areas,
and
driveways.
Paving operations, which account
for approximately 90%
of reve¬
nues,
are
built of Portland ce¬
ment or bituminous products for
public,

RICHMOND,

the

''Warren's"

leading

try's
NORTH

Members New

based

is

"Warren"

VIRGINIA

Steiner, Rouse & Co!

paid early this year.

Incidentally,

dec¬

&

Co., New York City. (Page 2)

Brothers,"

over

past

Bought—Sold—Quoted

Milton

—

Singer

Troster,

of

Pauley,

Corp.

additional

An

was

Company

Int'l

Express

at a $2 annual
5% in stock

now

are

Air

principally on expenditures
for
roads
and
ade.
The na¬
highways.
New
tion's need for
highway construction expend¬
itures last year were $5,350 mil¬
newer
and
better roads,
lion, up 151% since 1949, and are
now
expected to be around $6,000 mil¬
being
lion this year, or 12% ahead of
aided
by the
1958. They were 22% ahead of the
Federal
Gov¬
previous year for the first five
ernment, is
months of 1959, so this estimate
expected to
may well be too low.
Besides new
accelerate the
construction, the company bene¬
company's fu¬
fits from the huge amounts spent
ture growth.
for road maintenance and repairs,
The stock,
which
totaled
H.
Ronald Brown
$2,110 million in
now
selling
1957, the latest year for which
around
58
Both new
over-the-counter, looks definitely figures are available.
underpriced at only 9 times 1958 construction and maintenance and
repair
expenditures
have
in¬
earnings and about 4 times cash
creased
in
each year since the
flow.
the

Corporation
American

nor

principally cently reported earnings of $1.10
engaged
in
paving
roads
and a share for the first five months
of
1959.
This compares with a
highways,
has
maintained sub¬
stantial and consistent growth in deficit of 16 cents per share in the
comparable period of 1958.
s a 1 e s
a n d

you're getting
widest possible coverage,

"Try

Brothers

Warren

ily, and

Louisiana Securities

Ronald

Co.—H.

Dept., Stillman, Maynard & Co., New York
City. (Page 2)

profits taxes kept earnings'
down in the 1950-53 period. Divi¬
dends have also moved up stead¬
rate.

Alabama &

(

Research

Brown,

intended to be,

not

are

Selections

Brothers

Warren

excess

York City

New

wide wire system.
To make

particular security.

offer to sell the securities discussed.)

Research Department
Stillman, Maynard & Co.,
Members: New York Stock Exchange

nation¬

our

as an

BROWN

RONALD

H.

service and
broad range of

Contacts through

they to be regarded,

are

Participants and

Their

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

(The articles contained in this fornm

department offers

Trigger-quick

Forum

A continuous forum in which, each

participate and give their reasons for favoring a

Our experienced trading

This Week's

Security I Like Best

Continued

on

page

18

Q. B.
OVER-THE-COUNTER

.

INDUSTRIAL STOCK INDEX
20-Year Performance of
35 Industrial Stocks
FOLDER

ON

REQUEST

National Quotation Bureau
Incorporated

46 Front Street

New York 4, N. Y.

Volume

ISO

Number 5868

.

.

The Commercial and Financial Chronicle

.

(415)

What Can Be Done to Improve

INDEX
Articles and News

MARTIN, JR.*

dollar

day

per

over-the-counter

What Can

supplementary study.

They

Profits From Hot Air—Ira U.

Overcoming the Limitation
—Oscar

basic

our

hearing of the Joint Eco¬

market
ment

port,

World

securities

has

grown

War

I.

Stock

actions

steady
dled

rise

From

were

and

McC.

Only
bonds

ment securities market. The
ques¬

raised whether the

were

with
on

current

transactions,

informal

mar¬

effective

more

rather

than

an

dealer

dominant

of

New

"Creeping Ruin"

York

listed

on

the

importance

12-Year Continuous Rise in Total Debt
Assayed by Cleveland
Trust Company _____;

market.

the

Pacific Uranium

market.

not
only
with market

we

during the

war

pation

nical evaluation of the suggestion.
The-New York Stock Exchange

transactions

tions

of

crease

large

the

and

It

(Editorial)--

Business

Insurance

Cover

_

Man's

Stocks

21

Bookshelf

Dealer-Broker

Investment

Einzig: "Election Nerves

market

From

the London Stock Exchange"

4

Washington Ahead of the News—Carlisle Bargeron

its conclusions to us,

market,

News About Banks and Rankers.

A

.

specialized

develop
the

in

serve

tends

particular

a

individual

pete to

market

more

be

as

:

a i joint
statement relating
Treasury-Federal Reserve Study

Government

Mr.

Anderson

sented

Mr.

Securities

and

the

Economic

C.,

July

securities

Mr.

record

Anderson's

Joint

D.

for

[Ed.

note:

before

ket.

Part

I

rest

will

be

Our Reporter

in

the

Wilfred

May..

Our

Reporter's

Public

:

Report

Utility

Railroad

over-the-counter

19

:
1.

42

Securities

Securities

Securities

Existing Market Found

Now

in

NEED "HARD TO FIND"

18

QUOTATIONS?

27

_____

_______

Registration.

34

—

Government
a

has

been published and
published
shortly.]

Prospective

Security

Offerings—

41

_•___

YOU

standards

of

Securities

performance

to be applied in
evaluating the
present
dealer
market
are,
of

year

course

related

which

the

to

the

market

to

do

page

The

.

,

Best—

26

IN

23

—.___

and You—By Wallace Streete..—

Security 1 Like

The
on

.

Corner

17

...——

—1

Quotation

2

Record

as

the

Continued

The Market

specific job

has

Salesman's

State

of

Washington

Trade

and

Industry.—

4

You—

and

1

(Only $45

44

—

(Single

have specialized in

.

PREFERRED STOCKS

—

Published

Founded

U.

25

B.

Park

25

BROAD

York

m

Nashville

Boston




^

Chicago

Schenectady

New York 7,

2-9570

to

Publishers

ary

25,

second-class

as

1942,

at

TELETYPE NY 1-5
Glens Falls
Worcester

DANA

SEIBERT,

30,

President

Every Thursday (general news and ad¬
vertising issue) and every Monday -(com¬
plete statistical issue — market quotation
state

corporation

and

Other

Chicago

city

news,

Offices:

3,

El.

news,

bank

clearings,

etc.).

135
South La Salle Sty
(Telephone STate 2-0£13).

Febru¬

Subscription Rates
Subscriptions

1959

matter

the

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

N. Y.

9576

MORRISSEY, Editor

Thursday, July

records,

Albany

COMPANY,

This

bound

Possessions,

in

United

Territories

Union,

Dominion

Canada,

Other

of

Countries,
Other

Bank

$45.00

and
per

rate

S.
of

per

$68.00
per

year,

per

of

the

exchange,

remittances

subscriptions

and

must

made

York

Id

New

fluctuations

in

thei monthly prices

those

securities

The

-

Write

V

in

for

as

"hard to find"

Counter

or

WILLIAM B.

advertisements

funds.

-

$4)

publication will

listed

as

year)
—

quota¬

tions.

year.

Record—Monthly,
(Foreign Postage, extra).

account

of

you

all

well

year.

Publications

foreign
be

U.

Members

Quotation

year.

Note—On
the

$65.00

$72.00

on

Over

States,

and

give

per

Copy

Company
Reentered

Pan-American

Exchange

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 24300

Place,

Office

Patent

DANA

GEORGE J.

1868

Stock

Copyright 1959 by William B. Dana

CHRONICLE

S.

REctor

WILLIAM

New

Weekly

The COMMERCIAL and

WILLIAM

Spencer Trask &. Co.

Twice

FINANCIAL
Reg.

Members

THEM

FIND

WILL

Effective
The

Washington,

For many
years we

Angelas
Chicago

5

-

Governments.

on

Los

Dallas

Cleveland

By

the

has led to a
Treas¬
ury-Federal
Reserve
study
of •current
techniques and organization in that mar¬

-ago

San Francisco
15

By
pre¬

speculation of
joint three part

Ex¬

market.

with

Committee,

24.

dealer

of

connection

appearance

market

Market

to

McChesney

in

the

trading in government-bonds
on the Exchange had dwindled to
an
insignificant volume in com¬
parison with trading in such se¬
curities

*From

the

of

1958

security
commodity traded. The present

the

mechanism

change continued to decline.

efficiently and

and sellers of the kind of

(

Observations—A.

effectively handled through the

auction

Direct Wires to

—

Philadelphia

com¬

economically the needs of buyers
or

_______

number of transactions that could

to

form

participants

the

Teletype NY 1-1825 & 1-4844

10

____________

inc.

40 Exchange Place, N. Y.

HA 2-9000

20

...

also gave very careful considera¬
tion to the question and reported

NSTA

consequently'

Request

mackie,

&

33

Funds

governments.
Large transactions are more effi¬
ciently managed in a dealer-type

Notes

on

Singer, Bean

9

_

Indications of Current Business Activity.--.
Mutual

Offering Circular

8

in

and

*

44

Recommendations

on

Century Chemical Corp.*

16

.___

Coming Events in the Investment Field

years,

financial institu¬
greatly in¬
the size of typical market

in

See

Corp.

Efectronic Research
Associates

Bank

together with the broader partici¬

question
participants but asked our study
group to provide a special tech¬

We

The

ket,

and

First Lumber

Regular Features
As

over-the-

1930's

this

32

Treasury

growth in the Federal debt in the

accordingly,

32

the New York

of

dealer

counter

As part of this current study of,
Government securities mar¬

J.F.Reilly&Co.,Inc.

29

(Boxed)

for

Treasury were

dealer

(Boxed)

and

financial trends—further added to

limited

more

empire state oil

19

25

tak¬

the

raised

ig

Was $12.5 Billion

Cites Heavy Holdings of Common Stock in
Bank's Personal
Trusts
:___

was

.

publicity

over-the-counter

market, subject to
public observation.

:__

1959

19

fore,
the
introduction
of
the
Treasury bill in 1929 and its sub¬
sequent development as the pri¬
mary liquidity instrument of the
money
market — a
development
accelerated by war and postwar

formally organized
auction-type market,

maximum

Bank

on

Let Us Follow Where the Swiss
Lead!

marketable

are

cominol

9

Support of Mason Bill

Federal Deficit for Fiscal

Stock Exchange and this has been
true throughout its history. There¬

a

or

Sees Long-Run Gain
Resulting

Export Drop

Martin, Jr.

functioning of the Govern¬

i

metropolitan

21

Exchange and a
the volume han¬

was

Bank

to the

moved

Current

Taxation

through the

transactions of the Federal

Reserve

;

dealer ' market.

the account of the

it

kratter corp.
14

Outlook—Roger W. Babson

A. B. A. Stands Fast in

By the mid-1920's, the

market

agency

-

13

Smith

markets

in

dealer

on

dealer

if

Common & Voting Trust shares

Gifts to Minors Act Now Nationwide
in Scope

by the

ing place.

exchange

12

Harris Trust & Savings Bank

the auction market rep¬

on

resented

be

racing assn.

in

the New York

on

Exchange

a

during the early 1920's, how¬
ever, a steady decline in trans¬

not

11

broadcasting

Even

was

san juan

;

•

Transactions

over-the-counter

might

g

General Economic Forecasts

Will Water Conversion Plants
End Our Water Problem?
—Hon. Fred A. Seaton___

as

Treasury issues in the 1920's

4-6551

Some Unsettled Issues in
Monetary Policy—Warren L.

since

ever

Dept.

STREET, NEW YORK

Telephone: WHitehall

5

Govern¬

for

market

carried out both

W.

Litterer

The 1959 Crop

mechanism

specialized

discussion

some

Robert B. Anderson

F.

WALL

The F. H. A. Experiment: A
Brilliant Success—Ben H. Wooten

problems.

nomic Committee earlier this
year
on the President's Economic Re¬
was

Cobleigh_______

of

Securities

3

._

It cautions that market reforms still leave

untreated

there

___

_____

against the public interest, and the small, odd-lot transactions
are
satisfactorily handled at a low cost partly subsidized by

At the

Obsolete

^

Do We Need Another Federal
Reserve Bank and District?
—Clifton H.
Kreps,

abuses in repurchase agreements; and
formal dealers' organization to
perform specified responsible
functions. Answering criticisms raised, the statement avers
the existing market is highly
competitive, does not: operate

your

pad at

our

Anderson- and William

99

(3) ending
(4) institution of a-

large transactions.

B.

McChesney Martin, Jr.____

given;

to

Wall !

Be Done to Improve Government
Securities

Market?—Hon. Robert

(1) development of better
(2) sounder credit

are:

and bring

man,

beatnik stocks

Cover

99

an

requiring improvement which will be the subject of special*.
statistical and other information
program;
standards—three approaches to which are

BEATNIKS
Be cool

dealer

exchange, auction type of market by a recently concluded
joint Federal Reserve-Treasury study. Nevertheless, the joint;
statement by Messrs. Anderson and Martin outline four areas

ket

J______li__Cover

How Will Atomic
Energy Affect World's Oil
Industry
—Robert E. Wilson
;
__

over-a-billion

market in Government securities is found to be
superior to

tion

Price-Cuts

or

____

Secretary of the Treasury, and
Chairman of the Board of Governors of the
Fed. Res. System

of the

-Page

AUD OOMTAWY

Profits Cannot Finance
Wage Increases
"—Arthur O. Sharron

By MESSRS. ROBERT B. ANDERSON and

The

llCHTOTfll

B.&

Government Securities'Market?
WILLIAM McCHESNEY

3

25

call:

DANA CO.

Park Place

New York

7, N. Y.

REctor 2-9570

-

4

The Commercial and Financial Chronicle

.

Thursday, July 30, 1959

.

"Election Nerves"

since the Labor Party blindly sup¬

the

on

And

anti-inllationist.

is

torate

all wage claims, right or
the view that in ofder to

ports

London Stock Exchange
By PAUL

"Election Nerves"

Despite the London stock exchange's "election nerves, equihave been able to resist election fears to a remarkable

-

Even

ties

in Wall

ative

defeat appears
It is no won¬
Exchange is
suffering from "election nerves."
What is remarkable that up to the
time of writing equities have been

public of what labor's unceasing higher-wage-drive means
12 months of price stability. The latter is
believed to offer a more favorable election prospect for
in view of the past

over

the

Ex¬

Stock

London

election
no

does

Yet

spree."
Hitherto the most popu¬
lar argument in favor of wage
claims was the rising cost of liv¬

autumn

an

is

by
ab¬

means

solutely

be

standstill

held

cause

be

know

more

about it

than

Prime

Min¬

himself.

problems involved,
instinctively inclined to

He

intends to

is

take

sympathize with organized labor's
efforts to safeguard itself against

his final decision at the last pos¬

inflation,

sible

matter of self-revo¬

cation.

the

in

September,

the

situation

moment

basis

of

and

they will appear to
that moment. However, it

prospects
him at

on

as

But

is

mands

highly probable that Mr.
Macmillan will not risk deferring
the
election till the
Spring of

that

now

there

does look

as a

the

on

prices are stable
for

excuse

no

de¬

wage

higher

of

ground

prices. It is true, each trade union
can put forward arguments that it

had

they

the

watch

to

the

of

downs

ups and
Exchange

Stock

prices during such a critical pe¬
riod, and prefer to be out of it.
The

explanation of the absence
is that

of stronger selling pressure
the firmer tone
in
Wall

provided

beCn

resumption
British

of

ciable

Street

British
though

for

Even

nerves.

has

there

remedy

a

election

evidence

no

of

a

of American buying
equities on an appre¬

scale—apart from the iso¬
exception of Ford shares—

lated

the

and

Einzig

of their annual

eve

holidays." Most people would be
to enjoy their holidays if

the

and statistical
Paul

the

ister

The general public
understand the economic

the

on

unable

does not

Octo-

in

increases were the
of the higher

the effect

or

of

was

ments

cost of living.

r

e

to

question

the

over

other

each

argue

whether wage

that the elec¬

will

to

well

may

cocksure

tion

argument which was dif¬
disprove.
Economists

an

ficult

to

claim

who

ing,

cer¬

Those

tain.

part of the electorate which
not benefit by this "wages

that

autumn

an

election.

the reins of government

bigger and bigger wage de¬
mands in spite of the stability of
the cost of living tends to rein¬
force the anti-Socialist feelings of

from

came

a

followed by a partial
recovery. This in spite of the re¬
luctance of a great many people
to risk maintaining their commit¬

with

time to time
under the disturbing influence of
the growing
probability of
change

to

A down¬

the middle

trend toward

ward

portant, the greed with which the
trade unions are pressing forward

LONDON, Eng.—During recent
weeks

fears

election

resist

to

July

industry depending upon which

takes

division of the Party

Stock

the

relatively high degree.

different procedures that

over

psychological effect of
improvement in Wall Street
mere

sufficient

was

offset

to

effect

the

extent

to

some

of

election

a v

autumn election ap¬

be likely.

to

pears

an

time since

For the first

1939

prices have been
during the last 12 months.

stable

The general public is at last be¬

coming fully aware of the danger
of this highly valued stability be¬
ing upset by trade unionist greed

This in spite of the fact that con¬
siderable progress has been made,

cast

especially during the second half
of the stable period, toward the

a
leading member of the Trade
Unions Council, complained about

recovery from the business reces¬
sion of 1957-8.
This means that
the middle

reprieve
present

classes, grateful for the

given

them

to

government

by

from

the

exter¬

mination

through inflation, will
full voting strength to
support the government.
It also

use

their

means

that Conservative working

class voters—there
to be

some

were

supposed

two million at the 1955

election—will

not

be

frightened

by unemployment fears into vot¬
ing Socialist.

Growing

Anti-Labor

Resentment

What is perhaps even

more

and selfishness. In

the

talk

Mr.

growing

unions

recent broad¬

George

Woodcock,

unpopularity

trade unions.

against

a

criticisms

that,

was

the

of

His main argument

the

of

after

trade

all,

their

members and dependants of mem¬
bers represent the majority of the

nation.

tically

Even

if

this

were

correct—which

is

statis¬

open

to

doubt—a large proportion of trade
union members—especially white-

collared

workers

with

highly
of civic responsi¬

developed sense
bility—realize the
fect

the

produce
seems

im¬

prospect

Government

of

liable

is

affect

to

prices on the London Stock Ex¬
change. But the extent of this in¬

disastrous

ef¬

within

on

If

certain that the overwhelm¬

ing majority of the British elec¬

the

Complete
4

InMstmetif

fiftOKEfti* OI?•

in

privately

and

ago, and

a year

publicly owned units was 20%
the highest recorded for June except

1950.

The 131,200 privately owned dwelling units begun last month
represented a seasonally adjusted annual rate of 1,370,000—up a

little from

the estimated rate of 1,340,000 for May, but somewhat
seasonally adjusted rate of 1,390,000 for April. When
averaged for the first six months, the seasonally adjusted annual

below

the

of

rate

private starts in

1959 amounted to 1,378,000 units, com¬
the relatively low rate of 989,000 for the same 1958

pared with

period.
By the end of June 1959, a total of 709,500 new private and
public dwelling units had been put under construction, an advance
of 32% over the first six months of 1958, and the highest for the
period in any year.
This year's private total (690,700 units)
exceeded by 192,700 units the 1958 private total for the first
six

i

months.

Personal Incomes in June at the Rate of

$382,900,000,000

The June income paid to the citizens of our
size. For the June month, personal

country was mon¬
income accounted
$382,900,000,000 a year or more than $15500,000,
000 more than the May payments.
The Commerce Department
stated that the rise was chiefly a reflection of higher wages and
salaries due to stepped up hiring by industry and a
lengthening
work week in factories.
It is expected that the steel
strike, if it
lasts long will cut the wage and salary
payments for July. The
half yearly average will drop when the
next, or July report, is
umental in

for

less

no

month

a

For

the

annual

an

than

hence.

first

half

of

rate

of

1959

personal

income

was

estimated

$376,500,000,000, 6% higher than in the

at

corre¬

sponding portion of 1958.

Living Cost Advances
Government

four-tenths

sources

1%

of

to New

High

revealed that the cost of living advanced

in

June, the sharpest increase in 15 months,
high. The Labor Department lays the rise to
Little change is expected in July and
decline in August. The June advance raised the
price index to

to

another

record

normal seasonal increase.

a

no

124.5% of the 1947-49 base period, or six-tenths of 1%
higher
than a
year^ago. The living cost means that 600,000 workers will
receive wage pay raises in accordance with their union contracts.

Nationwide Bank
Bank

policy should

clearings

Clearings 8.6% Above 1958 Week

this

week

will

show

an

increase

compared

Conference

based upon telegraphic advices from the chief cities of the
country,
indicate that for the week ended

mean

Party
October, it would
victory for moderation, in

a

in

the relative
would

as

mean

after

a

It

steady buying
Socialist Victory,
a

result of the gradual acquisi¬
of equities by the Pension

a

Fund and

his

of the term.

sense

also

pressure

tion

other

opponents

obtaining

official funds.

should

succeed

majority

a

in

favor

of

policy of nationalization by
compulsory acquisition of indus¬
tries, it would mean a victory for
the extremist wing of the Labor
Party which itself would give rise
to
pessimism
among
investors.
It "would
would

also

be

that

mean

there

equities

on

Labor Government.

Week Ended

New

adequate

acquired

less than

compensation

accentuate
of

the

Stock

extent

for

com-

industries,

the

election

which

an

the Stock Exchange depends

only

also

on

on

the

____

Boston
For

a

1958

$12,958,130,440
1,270,187,850
1,087,000,000
763,162,947

%

$12,739,511,945
1,046,911,609
985,000,000
717,349,210

4-

1.7

+21.3
+10.4
+

6.4

detailed summary

of bank clearings in U. S. A. refer to
Statistical Edition of the "Chronicle," issued Mondays.
For

the
this

week's

summary,

refer to page 47 of the Monday, July 27,

issue.

June Construction Contracts Up

June

election prospects, but
outcome

of

the

Construction

contracts

com¬

ing Labor Party Conference at
Blackpool. Investors and specu¬
lators are likely to follow its pro¬
ceedings with close attention.,-

in

1958
the

in May But Below the

Peak
United

States

in

June

rose

sharply over May on a seasonally adjusted basis, according to
F. W. Dodge
Corp., although they are still slightly below the
all-time peak reached in June of last year.
The Dodge Index of total contracts reached

compared with 259 in May.

exchange.

to

autumn election is liable to influ¬

not

1959

_____

The antici¬

Government would pay

the

July 25—

York

Chicago
Philadelphia

pated absence of such buying, to¬
gether with fears that a Labor

So

Preliminary figures compiled by the "Chronicle"

year ago.

official

buying of
the Stock Exchange by

no

a

Saturday, July 25, clearings for
all cities of the United States for which it is possible to obtain
weekly clearings will be 8.6% above those of the corresponding
week last year.
Our preliminary totals stand at $25,498,975,165
against $23,474,236,566 for the same week in 1958. Our comparative
summary for the leading money centers follows:

If

in

the

ence

DKTDIRiiTnDC

for

with

nerves

I y

total

greater than

Labor

Gaitskell's

Mr.

would
•

starts

be confirmed at the annual

a

spiral is likely to
the long run.
So it

J

fluence will largely depend on the
outcome of the fight that is going

pulsorily

>•'UNDERWKftERS

Business Failures

housing starts rose to 136,000 in June, from 134,000
in May, according to preliminary estimates of the Bureau of the
Census, U. S. Department of Commerce. A moderate seasonal
decrease usually occurs between May and June.
The June 1959

issued

The

a

wage

in

Industry

Nonfarm

Socialist

nerves.

Party be¬
tween leaders who would prefer
has not had its fair share of wage assuming
control
of
industries
1960, and that if prospects by increases before the stabilization through acquiring equities on the
September appear to be no worse of prices. But the longer the stable Stock Exchange and a substantial
than they are now he will take
period continues the less con¬ section of the rank and file who
the plunge.—
n
vincing such claims will sound. A would prefer to revert to oldFrom the point of view of the stage may be reached when the fashioned nationalization.
economic situation as it appears cost of living argument will have
Gaitskell Stands for Moderation
to be dropped altogether.
at the time of writing, a decision

in favor of

Index

Auto Production

victory and

that

able

Dr. Einzig suspects, will be held this fall.
The columnist outlines what a Socialist-Labor victory would
Macmillan which,

could be used to take

and

things are at pres¬

as

be very narrow.

to

der

the

do to the stock market in terms of

so,

Food Price

the Exchange

on

Trade

Commodity Price Index

ent, the margin between" Conserv¬

In pointing this out, Dr. Einzig credits improvement
Street, and discerns a greater critical awareness by

degree.

.

Carloadings
Retail

State,of Trade

Government must be confirmed in
office is gaining ground.

EINZIG

Production

Electric Output

Conservative

the

inflation

check

Steel

The

wrong,

b

.

~(416)

;

288

•

in

June, as
The dollar value of contracts in June

$3,659,017,000, down 4% from June 1958.
According to the Dodge Vice-President and Economist, Dr.
George Cline Smith, the decline of 4% on the year-to-year com¬
parison was negligible, in view of the fact that June 1958 "wasthe highest month ever
recorded, partly because of government
was

stimulation of

housing and highways as an anti-recession measure
The current figure is almost as high, but without
these special stimulants."
/
at

that

time.

Settlement of Steel Strike Difficult Chore

With R. J. Steichen
(Special to The

Dean Witter
8c
Exchange

•

Midwest Stock

'

Private teased radiotelegraph

big problem facing steel strike peacemakers is how to
get it settled without forcing up steel prices, according to "The

Financial Chronicle)

MINNEAPOLIS, Minn.—George
J. Baunders has become connected
with R. J. Steichen &

CO.

Company,

Members

New York Stock

The

Pacific Coast Stock Exchange

Baker Building.

Exchange • American Stock Exchange
Honolulu Stock Exchange • Chicago Board of Trade
and other leading
commodity exchanges

(Special to The Financial Chronicle)

SAN FRANCISCO

•

40




LOS ANGELES

Offices

•

NEW YORK

Serving investors

•

CHICAGO

r

KANSAS CITY, Mo. — Glen L.
has been added to the

Stewart
staff

of

Columbia

Cole L&
Building.

Beecroft,
Bank

Age," national metalworking weekly.
you get right down to it," said "Iron Age," "That's
In major part, at least. No one wants
to see another steel price rise. But that's where agreement ends
and argument begins."
"When

what the strike is all about.

The mestalworking magazine said there are other issues in the
strike, and they're all important: management rights, union power,

Beecroft, Cole Adds

circuit to Honolulu

Iron

Co.,

steel

earnings,

workers'

"But

share
when

worker productivity,
the profit pie.

foreign

competition,

the

of

you

examine

each

one

in detail," the magazine

Continued

on

page

30

Volume

190

Number 5868

.

.

The Commercial and Financial Chronicle

.

(417)

I

.

.

By DR. IRA U. COBLEIGH

.

Enterprise Economist, and Author

By A. WILFRED MAY
MARKET

DIVERGENCE

GOES

of

As

ii

,

,

,

record bull market rolls

our

individual
issues

issues

and

to

Does

in¬

concept

the

of

vestments

hedges?

the

are.

daily,

prices for the
year

constantly
mingled with
A
Wilfred May
the new highs.
On Tuesday of
this week, for
example, while the
averages

issues

showed

period

Thus,

Still

do

since

the

In

vealing.

While

the

their

trial

(the

bow-Jones

the

see

on

impact of overthe price tag. And

price cut of

a

a

pound

one

price structure, we see anof the lack of totality of the dollar-depreciation

fact°r-

re-

3.87%

J. R. Williston Beane

Opens Chicago Office

f

the

a
a

fractional
iracuonai

atural gas

aircrafts,
by the

decline
aeenne

hv

the
me

oy

the

uncertainty

of

oublished
puDiisnea

in
in

"Brevity "
Brevits,

1950-1958

action

stocks

mon

of the

that

500

make

a

shown

by
by

over

nine

hv
by

erl

22

stocks

200% by 77 issues.

and

with Bache &

Co

Robert G. Brown Now

the

Aver¬

600%

issues,

as

the Commodity department. Mr.
Lord and Mr- Hylard were form"

With Allan Blair Go.

per¬

hydrogen

have
to

our

society,
in

the

well.

were

CHICAGO,111.—RobertC.Brown

has become associated with Allan
Blair

of

over

by

over

In the category

&

Company,

Salle Street.

He

135

was

South

La

formerly in

the municipal bond division of the

Northern Trust Company.

and

hydrogen,

I

York Security Dealers Association

Broadway, New York 4, N. Y.

HAnover 2-0433

NY 14722

me

.

.

at

regular commission

through and confirmed by

rates

U.

Cobleigh

liquid

form,

r°Cket pr0pellants

iuture.

25

National

Association

to

transport,

classify,

size

Dealers

and

refine. grains, minerals or other
materials. Clute air equipment
is now used in every beet sugar

11

5lJ

May

11,

for

Air He-

over

its:
and

increase

Detin« nronellants

of

plants
at

at

Pains-

Liquid hydrogen

40%

a

in

Beach

ville, Ohio.

for

production

hydrogen
Palm

vides

contract

giam

BeLard
Bernard f«r

Com-.
S. Air Force that

Force

Panys mobile grain cieaners seu.
cleaners sell
around $3,000 apiece. These
b

pro-

over

com-

in the thrust of

rocket engines

the

J®

P® the dirt and dust qut of

.

f^^n/01?^]1^!-!^61?!
L?in IfhS/hv
twL cl'm

--vW

t™?*w+vX
^j

saving to Uncle Sam, and to us

tS*P5^rSwiv*Wnnv?rtihv?

L

paying for out

J" ^ J™1 ti-billion dollar governmoen
Purchases made each
year! Clute may have the answer.
makes $150,000 grain mills as
well as the mobile cleaners afore-

de^maePnatrtAifr°pm ]hiSt fXCitrg The Clute process
rankeT'as" aAleader^^n''research lhlrec„overy„°,£
"".7"

Long a leader — the technology
in
—".——
77
air
and gases, Air Reduction
Co., Inc., is a major industrial
company with a magnificent history of earnings, and an unbroken
of

record of dividend payments
going
back
to
1917.
Air
Reduction
mainrc

cnttin.

nrnHnrtinn

produced

are

ethylene oxide.

also sells gases in

R

a

5?%

td

rsrer

Krypton,

well

as

and

xenon

lulled

into

nf

^
7+^4

hs

srgon,

neon.

If you

surgical

gas

slumber,

be

may

p

mere

nnufd

for

the

on

club,

and

home

ice

dry

bring
also be

you

may

of the company's

one

centers of distribu-

or

185

ice

in,

cream

turned out at

in

interest

in

w«L+

lease

of

one

largest

asbestos deposits in.
the U. S. located 18 miles from

Napa' Calil Clute als0 has 15%
interest in

com

Britigh
iT * %

a

sizable mica mining

^

cities in all
48

connected

but

six

states.

of

AN

(NYSE trading symbol for the
stock) produces about 30% of the
American

output

acetylene

gas;

production

o£

early-phase and eager.

End.

in

represented by 1,200,000 common.
shares quoted over-the-counter at
around 6%. Because operations,
on a consolidated basis, have only

arson

form

M

0„4e

Qor,

cal/h^fa

been conducted for

r^ac

iad a ■bl^h»

tennis courts at your

the

plants

the

hvdro^Gn

oxv26n

Air

an

product.
The calcium
which keeps
down the

chloride

the

* !y*"^

.

minfng

s

and mill property in New Mexico.
Put
all
together
The
Clute
monwealth and much of Europe
*[ut
"S .' interests!
pany

Reduction

187

09

nw

certain

as

such

Sssgs

anesthetic

tion

rpptifvinf

V

has

vj prnHnrlT T

anH

A a„

,

Qn

pump^

™

The company

cylinders, makes

nrnpp^in?

_J; P

Pl*"

oxy-

acetylene> nitrogen, hydrogen

Wltb oxygen generators and use- Gorp. represents an interesting
ful industrial gases in cylinders, combination of air process techThere are 13 Plants and divisional nology, research and products plus
HVrfrobranches; and there's a new $6 substantial and valuable mineral
.g
million plant to be built at Grass- holdings. The company is small,
thn

in

^

much

:anA,asbes£a3

from ores; and in doing this min-

of equipment for producing

£jr

also improves

P

annual

a

earnings

l

is

few months

a

have

presented. The shares

1"r flnnth! 'pH
year for
Jhe sl* J"'°ntd;sa e?d®d
^ar.9^ 19L 7?9 S-f
L
^ ^J

Equity

not

been

are a specu-

lation but might merit a more
detailed study and analysis by
members of the more sporting and
risk-taking wing of board-room

f^aficionados,

debi and
million in secured
n°fcs precede the common on the

Other Candidates

balance sheet.

Others

in

the

air

business

we

Air Products, Inc. has paid com- didn't have time to cover today
dividends since
1954, the would
surely
include
such
as
leading
dry ice. Re- present rate being 20c per share. Ingersoll-Rand and
Chematron
search, and development on liquid A larger cash payout does lot apCorp (formerly National Cylinder
oxygen and certain inert gases is pear probable since the company
increasing AN's position in rockets, needs to retain substantial funds Gas). In any event, hot air, which
missiles and rare metals.
for expansion purposes. Air Prod- has
few friends when applied
of

and
producer of

Since

1949

net

duction

have

million

(1949)

as

a

of Air Re-

sales

risen

and

oxygen

ranks

from

$89.5

to $190 million in

In the set-back year of 1958

1957.

$175.3 million.

mon

ucts common is

a

lively and
should

"fiantlc equity which
d"e course,

ro-

m

oratorically
can

|a™m™bf^Iy
minion net re

more tnan tne
P°rfed lasf year.

or

ma^e

**

conversationally,

friends and money

d

corporate

enterpr ses.

This year the company, according
to

President John

reach

a

A.

Hill, should

record sales level of about

$200

million; and a net substan¬
tially above the $3.47 a share re¬
ported

in

1958

(our estimate is
This is plenty of
the $2.50 dividend;

around

$4).
coverage for

there have been

some

board¬

1870

(denied by manage¬
ment) about a possible stock split
this
year.
The stock, currently
selling at around 90, is an authen¬
rumors

blue

chip and

welded

$4.50

preferred

warded

its

investors
also a

many

it.

to

There's

which

has

Correspondents inprincipal cities

re¬

early purchasers well.

throughout the United States and Canada

It is convertible into 3% common
shares
the

and

sells

"reduction"

thing

to

be

else

around
in

its

in

about

Air

name;

the

All

338!

UNDERWRITERS AND DISTRIBUTORS

Reduction
every¬

company

OF INVESTMENT SECURITIES

is

expanding.

Broadway, New York 4, N. Y.

7
!svo



air action, induced by suction,
operates through tubes and bins

,

Exchanges of Canada
of Security

Mav

and

Air Products, Inc.

The

Cnn

gen>

Another lively company in airs
Members: Principal Stock

currently

Development

million

West

Air Reduction Co.

seems

Orders Executed

in

^fSefuture

are

Securities, Inc.

covering the Clute Air Sepa¬
Process by which cyclonic

mentioned.

tic

Grace Canadian

57

(on
General

Lt.
Lt?

and

liquid

acetylene
and
welding
and
cutting processes; neon gas
lights our cities with signs and

room

Principal for

as

Brokers, 'Dealers and Financial Institutions

25

$10

in

xy

and

Specialists in Canadian Securities

Members: New

as

Ira

o

around

of the U.

Air

an

Oxygen

essential

million

liquid hydrogen for rocket engines
was in large scale production. Air
Products, Inc., it was revealed, had

ey

makers

$37.5

Schriever, Commander of

rocket

is

to

disrlnsnre
disclosure

by

mand

missile

m o n

the
the

search

and

And they

are

1947,

to

1959)

in

and

in

ents

ration

Products, Inc.,

industrial

be

million

Manufacturing Co., for
preceding a designer

30 years

producer of air equipment.
Clute Corp. today owns the pat¬

last year. In the same period the
market price of Air Products commori has risen from a low of
2%

bv
by

turned

out

Clute

A considerable investor interest
was aroused in Air

net sales receded to

(Special to The Financial Chronicle)

Whereas the Composite Index rose

of

office

com¬

is broken down into the

gains

new

executive, and Earnest E.
Christiensen will. be manager of

formance of the individual issues.

171%;

the

The

up

Standard and Poor's Stock

with

account

definite trend concept is an anal-

Vance, Sanders & Company.

,

under the management of Richard
W* Lord- Robert L- Hylard will be
uri+v-.

associated

public utility holding companies.
Showing

„T.,t.

CHICAGO, 111.—J. R. Williston
& gearie> members of the New
York
Stock
Exchange,
have
opened a branch office in Chicago

installment finance companies,

400%

nitrogen

and

the

have been shown

by

reflect

oxy¬

s

of

and

(over-the-counter)

gen,

are

com¬

Indus¬

2.3% by the cements, 1.1%

age

a

And in the vulnerable agricul-

u„

onL

•

issues,

seldom

or

ele-

t

fnH

„

oo/

vsis
ysis

and

to the 30-cent

other example

Average has risen 14%), de¬

w

and
anq

useful

dust

clines of 10.19%

pump

(1949)

m e n

01

through 1958

prising all stocks has been rising
by 11.93%

We

just

as

to

or

footballs

what

tural

is

index

by

—

action

year

unsubmerged

up

a repetition of the price
declines which occurred from 1956

steels.

of

elements

prevent

analysis by Hemp-

turn

the

level, leading producers are scheduling production cut-backs
to

strike-threatened steels" °£
hill, Noyes & Co. of market

we

half cents

groups, we see the nega-

technical

the

depreciation.

joined to

performance of the aircrafts
ranged alongside the extraordi-

A

industrial

....

production

tive

strike-tftreatened

rafts.

upon

Likewise, in the case of another
primary" raw material, copper,

gainers, 44 issues were up
and over, with 107 concur-

industry

the

stand

dollar

from

rently falling by that amount.

rubber

balloons,

securities, were the lower
and petroleum prices, and
reduced profit margins,

Of the

10%

tires,

crude

,

Buying Stocks."

the

try's

highs.
May 15 to
June 15, while the
leading market
averages fell 2.5%, a total of 300
Stock Exchange issues rose, while
742 declined, with 31
unchanged,
the

by
of

as causing the decline in earnings, and in the subsequent market price of the indus-

^.w„A°T±£°„r Ahe. ZfSi Partia"y
countering 68 new
In

compiled
Department

factors ascribed

declines

against 550 rises (with 234 closing
unchanged).
Nine stocks
made

leading oil

Chase Manhattan Bank, showed a
1957-58
decline
of
21%.
Major

attaining
all-time peaks, 489 of the Big

Board

inflation

as

oil

as

Petroleum

were

think of air

us

age.

companies,

are

new

the

The net income of 32

dividual issues

market

them

in

In

3%.

in¬

on

the

on

price wars, fell in 1958 by almost
10%, and even crude declined by

low

new

of

industry, in
the face of the so well-recognized
deterioration
of
the
dollar, the
wholesale price index of refined
products, influenced by gasoline

market

making

behavior

recent

industries cast doubts

some

dizzy tops

averages

not

blandly assumed reliability of in¬

market.

Despite
new

Most of

something to breathe

*

THE INFLATION HEDGES

validate the
"the"

the
rising less

into

of

groups

*'

*

con¬

tinues

under-performing

declining in value

merrily onward and upward, the
divergent price performance of

pany is The Clute Corp., organized
in 1957 to take over the business

"

of "How to Get Rich

interesting companies gleaning profits
from the application of air and its
components; and from the
production, adaptation and uses of industrial gases.

than 100%, and 61 stocks actually.

.

j

stocks

A third and much smaller com-,

A consideration of three

average were 202 issues

ON

The Clute Corporation

Profits from Hot Air

Observations

5

and

This

gases

is

Air

enterprise,

Products,

launched

Inc.

in

the

postwar era, has advanced in

an¬

nual

net

sales

from

less

than

a

Dominick

&

Dominick

Members New York, American & Toronto Stock
14 WALL STREET

Exchanges

NEW YORK

_

and Financial Chronicle

The Commercial

6

.

.

Thursday, July 30, 1959

.

(418)

Anothei Federal
Bank and District?

Do We Need
Reserve

Organization Committee
12

KEEPS, JR.*
Associate Professor of Banking

Wachovia
University of North

Carolina

and Hawaii as new
another Reserve Bank
with the primary pur¬
poses of the System.
Insists we do not need any additional
Federal Reserve Banks and Districts, maintaining that we are^presently equipped to provide adequate central banking service
throughout the country. Points out that the FRB banks have
adapted a high degree of adaptability in meeting the local
needs of their respective Districts for central-banking service
happy state of affairs that should be continued.
that the admission of Alaska
revived the proposal to add
and District, opposes it as incongruous
Noting

subscribed

Less than a year ago,

Senator

Washington
introduced

wise,
even
rough
equality of
strength as between districts
would have been impossible. Thus
the southern and western districts,
where banks were small and few

to

Congress

Banks

present 12 to

the

H. Kreps,

Clifton

Federal Re¬

System
itself opposed
Subsequently, however, not only
has Alaska been admitted to the
serve

the time of

of not one but two

jealousies

States has revived interest in

ing

and

number

the

are

appropriate ones in view of
geographically-enlarged na¬
tion's needs for central banking

most
our

service.2

1

evaluate effectively

order to

the arguments for and against an
additional Federal Reserve Bank
and
sary

got

That

is:

How

Federal

which

This

Districts

is

the

selves, in the hope that the
to it may
cal

provide

our¬

The

the

Districts.

Reserve

to

be

were

the

division

several

of

the

a

business"

of

course

not required

Federal Reserve Board,

ganized,

re¬

review the

independent institution."2

fered criticism, however, because
of the manner in which it applied

failed
to
apply)
them.6
of
political
favoritism
were especially rampant. Of these,
(or

Charges

or¬

it has been stated that "There
evidence

Organization Commit¬

adj'ust the

7

.

by Professor Kreps to the
Mid-Management Groups of the Caroliaas Bankers Conference, July 9, 1959.
4298,

85th

Congress, 2nd Session,
Introduced Aug. 14, 1958, In addition to
providing for a 13 Federal Reserve Bank
Federal

end

Reserve

District,

the

bill

specified that '*When the State of Alaska
is

admitted

the

to

Union, the Federal
Reserve Districts shall be readjusted
.

fa such
end

manner

as

include

to

such

.

.

the Federal

as

district

which

Reserve

includes

city for the

the

State

-of

Alaska."

the

will

new

be

eral

Reserve

nal

Reserve

feet, Alaska
Ixict

sumably
Even

States,

States

included

of

in

of

Bank

San

added

was

12th

to

the

without

the

12th

Hawaii

addition

District

12th

is

In

Dispre¬

districts,
ward

encompassing
region and

Coast
to

3 H.

exceed

The

of

the

two

new

geograph-

the whole Pa¬
extending east¬

Colorado-Utah

line.

Parker

It&roe System

Willis, The Federal Re(New York: 1923), p. 561.




number

of districts

did

the

During

jealousy

the

all.5

in

12

Organization

Committee

cities, at which representatives of
more

than

cities

200

heard.

were

Thirty-seven

cities

designated

the headquarters of

as

to

asked

Federal Reserve bank.6

business

local

B.

Ray

Wester field,

Banking

(New

be

Twelve

Money, Credit,
1938),
pp.

York:

373-4.

twelve

aries

of

Board

districts

Committee

tricts

in

Board

has

create

6

has

new

the

adjusted

in

several

decided
had

the

bound¬

cases.

on

beginning,

never

Since

twelve

dis¬

however,

the actual

institutions
times

ten

were,

to

of

the

for

and

failing to choose New Orleans
site for a Federal Reserve
Bank.} Later", the Committee pre¬
sented a formal reply to a Senate
resolution of April 14, 1914, re¬
as

Bank

The

the

Committee's

Or¬

city

and the reasons relied
by the Organization Com¬
.

.

mittee
.7

'

of

to

establish

districts

and

was

be

to

made

Federal

.

."n

.,

neither prove

These documents

Reserve opera¬
demonstrated that the

Federal

of

years

has

however

decision,

motivated, provided a "workable"
solution to the problem the Com¬

problem, and might have provided
just as workable a solution as the
Committee's actual decision did.
example,

For

Reserve

number

any

Districts within the

of

per¬

missible range of from eight to

12

probably have worked just
well, since the Reserve Banks
have made extensive use of their

would
as

to sub-divide Districts and
establish branches. Moreover,
power

the exception of New York
possibly Chicago
and San
Francisco, all the Reserve Banks
might just as well have been
located in other cities than the

respect

with

implications

its

in

ones

which

that

it

Reserve

had

no

Board

to

power

mittee's

designation of
erfield, op. cit. p. 376.
8 The

in

its

Committee

decision

and

his

in

in

the

as

the

own

which

followed

in

not

choice

of

Thus
as

enunciated

practice.

West-

particularize
reasons

ore-

specific cities
of
one

to

boundaries
must

the

criteria

draw

degree
were

finally

were

Cleveland; in Baltimore or Char¬
lotte,
instead of
Richmond; in
Birmingham or New Orleans, in¬
stead of Atlanta; in Louisville or
Memphis, instead of St. Louis; in
Helena, instead of Minneapolis, in
Oklahoma City or Omaha, instead
of Kansas City; or in Fort Worth
or Houston, instead
of Dallas. In

fact, branches of the Federal Re¬
serve
Banks
have
subsequently
been established in most of these
In all probabil¬

"alternate" cities.

it

ity,

to

have

just

been

would have

workable

put the

as

Banks

initially where the branches were

put
have

subsequently, and then to
put the branches where the

Banks

Federal

trict?

;

7

Do We Need Another Federal

Bank and District?

Reserve

general response to this ques¬
tion, I submit the view that we
do not need any additional Fed¬
In

eral Reserve

Banks ana Districts.

The

12

present

Banks and their
plus additional

branches,

24

easily estab¬
required, are

branches that may be

if

lished

and

as

to

sufficient

central banking

Let

provide
adequate
service to any and

of the country. ;

sections

all

now

are.

specific reference to the pro¬

by

that

Federal Reserve Dis¬

13th

a

include
the new State of Alaska plus ad¬
ditional territory "carved out" of

trict be created that would

the

Idaho

of

States

Westerfield,
Willis,

11 Letter

cit.,

op.

to be kept

cit.,

op.

from

p.

376.

"Federal Reserve

served by a new

Seattle."

Bank of

Certainly the strongest argu¬
favoring the creation of an
additional Federal Reserve Bank
and District are those holding that

ments

an

existing Federal Reserve Bank,

is unable to
territory ade¬
(1) the territory
geographically too large; (2)
branches,

its

plus

its

serve

existing

quately because:
is

the banks in the territory are too

big; or (3) the banks in the terri¬
tory are too numerous.
Existing

the

Is

Federal

12th

Large?

District Too

Reserve

585-8.

pp.

Reserve

the

Board

reserve

districts

Senate
2nd

relative

Document

Session).

in

485

1914.

to

the

Or¬

the location
United

(63rd

added to it, the

District

Reserve

Federal

of Alaska

States

new

Hawaii

and

12th
be

will

geographically the largest Federal
Reserve District
by far.
Yet in
view of the facilities for speedy
communication and transportation
that
now
exist
throughout our
country, the argument that the
12th District will be too large ap¬

at

our

its

the

disposal,
of

Bank

serve

facilities
Federal Re¬

transportation

and

tion

very little force.
modern communica¬

have

to

pears

With all

Francisco,

San

and

office

head

its

through

its

branches in Seattle, Portland, Los

Angeles, and Salt Lake City, cer¬

tainly

able

is

to

render,

does

and
will
continue
to
adequate
and
efficient

render,
render

central-banking service—and here
we
have
special
reference
to
check-clearing
and
collection
service and the service of holding
reserve
balances for member
banks—to any and

large

the

Bank

Ccmmittee

Reserve

the

With

base.

transmitting the
briefs and arguments presented
to the
Organization Committee of the Federal
ganization

and

Oregon

well) and that would be

as

derive
9

(the

Washington and presum¬

the

ably

District

12th

existing

State of

all parts of its

Thus the argu¬
12th (or any other)
Reserve
District is too

territory.

Federal

Bank

essential points

bill

posal in Senator Magnuson's

ment that the

"Centralization" of the
Central

The

v "

try to clarify this answer

me

broad
The

10

determination

the

ground

change the Com¬

which

conclusions

the

cities. See

did

to

specific districts.

on

they

in Providence,
instead of
Boston,
for
example;
in Pitts¬
burgh, instead of Philadelphia; in
Cincinnati or Detroit, instead of
put:

to

possible
need
for another
Reserve Bank and Dis-

our

with

Reserve

(in place of Cleveland and Rich¬
mond, respectively) were later denied by

in

•,

our

organization, the Federal Reserve
System, and only very secondarily
as
regional
institutions serving
predominantly local needs. I view
this
as
an
eminently desirable
state
of affairs, and would not
have it otherwise.
But what are

questing "copies of all briefs and
written arguments made by each

cities

tion of the Federal Reserve

1914).

as

apparently influenced by a
desire to allay this local jealousy as much
as
possible. Appeals by Pittsburgh and

of

Banks (Wash¬

decision

number

maximum

banks

ganization
Committee
Determining
the
Federal Reserve Districts and the Loca¬

ington:

of

a

by the

numerous

felt."

dominated

Reserve

permitted

as

supply the demand that thus made itself

the

power

districts.

Decision

com¬

law
they
they would hardly have sufficed to

been

the Federal

5 The

financial

and

munity in nearly every part of the coun¬
try
organized
for the purpose of 'get¬
ting' a federal reserve bank.— Had the

Baltimore
4

and

hearings,

among

Willis,

.

held public hearings in 18 leading

the

Ically^ the largest of the Federal Reserve
cific

total

not

and
Fed¬

Francisco.

3, 1959, and
will be.

soon

the

Alaska

the

District, served by the Fed-

of Jan.

as

the

a

2 Both

Hawaii

districts provided that

new

State

Seattle, Washington, shall be desig-

mated

create

that the Committee,

.

.

was

an
intense lo¬
candidate cities was
for example (op. cit.,
p.. 565),
states:
"As the Organization
Committee pursued its travels, it found

cal

boundaries of the districts, and to

*An address

suf¬

Committee

The

observers.

and

when

tee's determinations, to

sepa¬

the

Committee's Work

granted the power to

was

of

portions

apparent.

1S.

special attention to, its
.choosing
Richmond

devoted
reasons

bank

Reserve

general, the above criteria
appear to have been considered
satisfactory at the time by close

to be cotermi¬

as

Federal

In

with any State or States. The

nous

banking districts in each
be

trans¬

Criticisms of the Organization

were

"with due

so

into

country

of which there should
rate and

(eight days after its decision was
public) in the Organization
Committee's issuing a rejoinder to
its numerous critics, in which it
made

primarily as "branches"
national, central-banking

function

and

gard to the convenience and cus¬

was

...

-district,

district.
(6) The population, area, and
prevalent business activities of the
district, whether agricultural,
manufacturing, mining, or com¬
mercial, its past record of growth
and development, and its future
prospects.

Federal

Districts

apportioned

all

and

(D. F. Houston), and

to divide the country into

close observer

fiercely fought in Congress

Or¬

Bank

ignate Federal Reserve cities and

Bank

nothing had been

the

of

the

tween

Comptroller of the Currency

tomary

.

pro¬

(John Skelton Williams), to des¬

time the Federal Reserve Act
.

Evaluation of the Criticisms

business,

situation

(W. G. McAdoo), the Secretary of

Regional Idea
one

of

legitimate

the

meet

to

mands

the Treasury

Secretary of

of the Congressional scene at the

passed, ".

of War Baker.10

Allegations * similar
to
those
noted resulted, on April 10, 1914

tion

portation lines, and the facilities
speedy
communication be¬

Act

Reserve

"Reserve

a

Agriculture

and District may then be assessed.

According to

the

of

answer

Reserve

trict

power." It has

ganization Gommittee," consisting

to

arguments for and against an ad¬
Federal

for

vided

"backdrop" against which the

ditional

Federal

The

useful histori¬

a

Federal

for

deter¬

question

location

(3) The probable ability of the
Federal Reserve bank in each dis¬

Committee

present

shall first address

we

and for good and sufficient
the central bank has be¬
come-much more "central" and
much less "regional" in character.
Thus in a real sense today, the 12
Federal Reserve Banks themselves
years

reasons,

de¬
mittee was charged with solving.
whether, nor¬
Operating as it did in a young and
been
authoritatively maintained, mal or
abnormal, in accordance still
rapidly developing economy,
for example, that "Undoubtedly, with the spirit and provisions of "
the Organization : Committee en¬
one
deep-seated motive behind the Federal Reserve Act.
joyed a wide "margin of error" in
(4) The fair and equitable divi¬ reaching
the
Federal
Reserve legislation
its
conclusions.
Quite
sion of the available capital for
possible, any "reasonable" deci¬
decentralization
of
the
was
a
the Federal Reserve banks among sion the Committee might have
in New the districts created.
money
power centering
reached would have provided at
york "4
(5)
The general geographical least a tolerable solution to the

number

the

of

Reserve

mined?

the

were

boundaries

and

case

economy

consequently much less signifi¬
cant.
And finally,- (3) over the

might have been
had it not been the home

of Secretary

communica¬
improved, and

has become more
unified, regional arid local eco¬
nomic
and
financial
diversities
have become much less wide, and
our

than

Committee's

The Reserve Bank Organization

District, however, it is neces¬
first to understand how we
the ones we already have.

the

city
of the

Reserve bank.

and

Street"

"Wall

of

"the eastern money

exist¬
boundaries of

Federal Reserve Districts

In

the

tions facilities have

favorable con¬

land received more

sideration

service. (2) As

and

transportation

Currency Williams

selected

the

and

district

for

political virtue at
serving to allay local

the

possessed

the question of whether the

the

have

regional plan seems also to

State, but Hawaii
has been voted statehood as well.
new

banks within the districts to pro¬

most effectively. The

needs

local

new

The prospect

for central banking

adaptable and flexible in meeting
the local needs of their Districts

that

leging

mind

(1) Through their ability to
"branch,"
the
Federal
Reserve
Banks
have
proved
extremely

.

Magnuson's

as a

Comptroller of the
(a member of
the Organization Committee) was
well
known
to
have
done
his
utmost to further the claims of
Richmond, that the influence of
Senator Hoke Smith, of Georgia,
was
instrumental in causing At¬
lanta to be chosen, and that Cleve¬

are

three:

upon

member

of

ability

The

(1)

in

the vide the minimum capital re¬ nor disprove,- in any conclusive
country,
no
one
central quired for the Federal Reserve fashion, the various charges of
bank could service. They argued banks.
/
v
' vi political and personal favoritisms
that were made. And at this late
further that the regional plan of
(2) "The mercantile, industrial;
date, it seems unnecessary to be
Jr. organization would provide adap¬ and financial connections existing1
tation of banking service to Re¬ in each district and the relations unduly concerned with estimating
the probability of truth in those
it. gional characteristics, thus serving between the various portions of
charges.
The experience of 45

gress did not
act on Senator

Union

These were:

exercising
judgment, was not
wholly indifferent to political and
personal considerations in some
cases."9
Other critics were less
restrained and more specific, al¬

throughout

needs
which

banking

13.1 The Con¬

and

which it had been guided
cities and deciding on

tions by

in choosing

district boundaries.

plan of organization based their
advocacy of it on the presumed
existence of wide
diversities of

Reserve Dis¬

tricts from the

bill

decision, the Organization
Committee stated six considera¬

of this regional

Proponents

tem.

numerous.

more

In its

with respect to the organiza¬
tion of the Federal Reserve Sys¬

Federal

and

and

gress

Federal Re¬
serve

districts, where banks were larger

fundamental in the intent of Con¬

of

northern and eastern

to the size of

than 12" Fed¬
Banks and Districts.

regional idea was therefore

The

increase the

number

tories

than eight nor more
eral Reserve

number, had to embrace terri-'
which were broad relative

in

provided for "not less

Reserve Act

a

bill into the

of

surplus, attainment of this
aim required that the size of the
districts be inversely proportional
to the number and strength of the
banks contained in them. Other¬
and

Controversy was sharp as to
whether there should be^four.
eight, 12 or some other number of
regional central banks As finally
passed late in 1913, The Federal

in antici-

admission of the new
to the Union,
Warren
Magnuson
of
Alaska

of

member banks on
6% of their capital

by

basis

the

.a

State

.

primary aim of the Committee
was apparently to create a certain
degree
of equality of strength*1
among
districts, rather than to
allow the New York district to
overshadow weaker districts.
Since
the
Federal Reserve Act
fixed the minimum capital of a
Reserve bank at $4 million, to be

States has

nation of the

apportioning the country into
Federal
Reserve
districts/ a

In

.

CLIFTON H.

By

Guiding the

Considerations

connection

this

in

while for the most part
sound banking

(the maximum permissible
number) were finally selected.?
cities

of

States.

Congress,

in

must

the final

force

its
But

what

from

analysis

some

remains?

other
Only

proposition that, because the
so large, regional diver¬
needs-^ within the

District is

sities in banking

not being

District are

adequately

recognized by the central
This is

best,

a

and

bank.

dubious proposition

I

seriously

at

doubt ita

Volume

190

validity.
banking

Number

Regional
needs

5868

.

.

.

diversities

The Commercial and Financial Chronicle

in

effect, of

have been
significant from the standpoint of
central-bank organization in 1914,

Francisco

Organiza¬
conducting its
deliberations, but they are cer¬
tainly not significant from this
standpoint
today.
Our
central
has

bank

not

less

come

was

the

over

and

Reserve Bank
reason

by ac¬
Rather, it has done so in
to
changing
economic
conditions, reflecting our nation's
development of a highly-articucident.

financial
needs

local

diversities

structure

and

Now

in

the

banking

We

cannot

the 12th

(1)

the 12th

large

too

or

to

—

be

either

the

Do

we

mechanism
has become much more "central,"
and much less "regional," in char¬
acter, as a reflection of the way
our economy has developed.
Thus
today we can no longer justify
adding another Federal Reserve
Bank and District on the grounds
that they are needed to meet re¬
gional diversities in banking

conclusions

we

son

to summarize
have advanced
we

have

.

respect to the ques¬
need another Federal

We do

not need

the

have

offices

And

other

no

appear

largest number of
of any District).
adequate grounds

(2)

.

"regional
idea", was
dominant in the original

organization
serve

of

the

Federal Reseve Bank to "service"

idea

them

just

effectively?

System.

the

might
as

Yet

have

well

by

Federal

this

summary,

then, nb

additional Federal Reserve Banks
and

Districts

would

needed

are

now,

or

to be needed in the

apear

been
any

expressed
number

of

and

Bank

reference

the

to

Grodnick is

nothing sacred or
about the present or¬
ganizational structure of the Fed¬
eral Reserve System; indeed, we
have indicated that it might just
well

have been

ferently than it
and

organized dif¬

the
while

But starting

was.

it

way

the

organized,

was

Federal

Reserve

(Special to The Financial Chronicle)

System

collectively
national

was

has

Ekren

ond

(Special to The Financial Chronicle)

ST.

are

Banks

409 North

the

serve

new

of Alaska

State

of the territory of the
existing
12th
District,
such
a
course of
action cannot be justi¬
part

plus

fied

on

grounds that (a) the 12th

District is geographically too large

(though

it

is

geographically

largest District),
District's

large

or

banks

too

the

(b)

or

either

are

the
12th
too

(though it

numerous

individually

strated

a

have

demon¬

high degree of adaptabil¬

ity and flexibility in meeting the
local

of

needs

Districts for

their

Hunter

of

Stock

G.

York

will

We

or

that

one

ice.

We

of

know

not

continue;

moreover,

reason

no

why

of affairs should
and

we

believe,

ST.

LOUIS,

Fowler

is

Mo.

now

tion

Committee

District

begin

made

geographically

with

the
so

ability

negotiated by the undersigned with

was

-

of

$33,000,000

*
.

for

capital ($4,000,000) required

the

Thus

Federal

Reserve

Banks."

initially, the size of the Dis-

tricts

.

inversely proportional
the number and strength of the

to

was

banks

the

purchase these securities for investment.

on

member banks within
the districts to provide the minimum

an institution to

And in

contained in them.

12th

District

made

was

American-Saint Gobain

largest District to begin with be¬
cause, relative to the rest of the
country, its banks were the small¬

6% First Mortgage Bonds

est and fewest in number.
In

subsequent

trict

due April 1, 1982

with Warrants for the purchase of 200,000

the area i
12th Dis-'

years,
in the original

included

Corporation

the

-

shares of Common Stock
i
,

t

has

developed economically
at a relatively more rapid
rate'
than the rest of the country. Also,
one

State—Alaska—has

new

a

re¬

cently been added to the District,
and

another
will

soon

be.

velopments
ward

F. Eberstadt

State—Hawaii—

new-

these

Do

require

later

de¬

Co.

&

down¬

some

readjustment in the size of
District, to be accom¬

12th

the

plished by the creation of

a

new,

District?

13th

Again, the answer
"no."

In

terms

to be

seems

the

of

size

(total

of its member banks, the
District is not the "largest"

assets)
12th

This

announcement is

neither

offer

an

The

sell

to

offer

is

nor a

solicitation of

an

offer

to

buy

any

of these securities.

made only by the Prospectus.

District, but only the third largest.
the total assets

At the end of 1958,

of member banks in both the 2nd

York)

(New

7th

and

(Chicago)

Federal Reserve Districts

ex¬

American-Saint Gobain

Corporation

ceeded the total assets of member

banks in the 12th District.
the

Bank.

Nor is

Reserve Bank of

Federal

the

Francisco

largest

5Vz% Subordinated Debentures due 1983 (Convertible until November 1,1971)

picture shown above for
banks, both the Federal

member

Reserve

Banks

Chicago

are

*■'

about

How

of New York

numbers

of

Federal

12th

does

Reserve

bank¬

District

Nor transferable

issued

the largest number of
offices of any Federal

Reserve District.

Subscription Prices:

By Way of con¬

$100

and again arising

trast, however,

part from the extensive prac¬
of branch banking, the 12th

District

has

the

smallest

addition

of the

new

/

neither

very

state

large

are

or

way,

banks

very

of

banking
reason

should

an

area

do

'

/

.

.

.

*

.

F. Eberstadt

practice branch

likewise.

is

no

bank

And




Common
.

Copies of the Prospectus may he obtained from the undersigned, and the other underwriters, only in states in
which they are qualified to act as dealers in securities and in which the Prospectus may legally be distributed.

since

numerous.

extensively, there
why
the
central

not

•

either

What, then, is "the moral of the
story?" If there is one, it would
seem to be that, if the commercial
banks

share of Common Stock

12th

District will not change the above
in

per

Both during and after the subscription period, the Underwriters may offer, the Debentures or
Stock pursuant to the terms and conditions set forth in the prospectus.

States

of Alaska and Hawaii to the

picture in any material

$100 principal amount of Debentures

number

of operating commercial hanks of
any District.
The

per

$17.30

tice

'

Rights to subscribe for the Debentures and transferable Rights to subscribe for the Common Stock are,being

by the Company to its shareholders, which rights will expire at 3:30 P.M., Eastern Daylight Time, on August 12,1959.

have

hanking

in

($7.50 Par Value)

banks?

branch

ing is both permitted and exten¬
sively practiced in the Far West,
the

268,141 Shares Common Stock

and

larger.

Because state-wide

•

Reserve

Reflecting the asset-distri¬

bution

$11,172,600

San

in

July 30, 1959.

&

Co.

.

Alfred

connected

D.

with

Jaclyn Oertle Investment Securi¬

large to

the fact that, in
District boundaries,
the Committee was guided by "the

deciding

Commitments have been

12th

—

ties, 7713a Brooklyne Terrace.

that it will.

reason

why the Reserve Bank Organiza¬

Midwest

With Jaclyn Oertle

serv¬

Too Numerous?

recall

and

Exchanges.

Are the Banks in the 12th District
Too Large

W.

Urbanczyk

Edwards &

(Special to The Financial Chronicle)

this happy state

,

Rolf

Sons,.
Eighth Street, members

New

the

—

Delmar

and

with A.

respective

central-banking

Mo.

LOUIS,

mechanism^ the Federal Reserve

example,

created, for

the

to

629 Sec¬

Avenue, South.

District

be

added

Two With A. G. Edwards

evolving

central-banking

been

staff of Reynolds & Go.,

into

a

Minn.-^Milton

MINNEAPOLIS,
A.

Dis¬
spe¬

Inc.,

Reynolds Co. Adds

inviolable

from,

now

133 South Seventh
Street. He was previously with
Piper, Jaffray & Hopwood.
Hallum,

There is

future.

as

,

Minn.—Philip
with Craig-,

MINNEAPOLIS,

to exist.

In final

(4)

Craig-Hallum

(Special to The Financial Chronicle)

cific proposal that a 13th Bank and

Re¬

regional

Reserve

With

trict.

,

The

clearly

Federal

to

addi¬

any

any other rea¬
provide sufficient
for adding another

to

appear

Now With

W.

banking

justification

Reserve Banks and

too

for

numerous

continue

to

Districts.

given District—

a

try

us

tional Federal

other Federal Re¬

any

thereby

Reserve Bank and District?

action.

conclude, then, that

for the banks in
say

tion:

is
geographically
Is it possible, however,

large.

let

reached with

District

serve

too

or

Bank

arguments

and

have

basis for central-bank

the

and

Summary

tended, if not to dis¬
appear
completely, at least
by
now to become inconsequential as
a

enable

Hawaii,

central

our

does

banking

.

Jated and truly national economic
and
financial
system, in which

and

and

ization Committee finally reached.
And in any event, over the years

rendering. effective central-bank¬
ing service to its larger geographi¬
cal territory."
r-"
v needs.
(3) Neither does

response

regional

necessary to "ac¬
the
new
States
of

commodate"

to

no

appears

Alaska

"central" in its orientation

there is

or

action

more

and

—

why it should not add an¬
others, if the course of

other,

be¬

years

"regional"

has

already done, ft
now operates four branches — the
largest number of any Federal

when the Reserve Bank

tion Committee

other particular "solutions" as by
the one the Reserve Bank Organ¬

this is just what

course,

the Federal Reserve Bank of San

may

T>

(419)

.

'

8

The

(420)

Brass—Review—Hirsch & Co., 25 Broad, Street,
4, N. Y. Also in the same circular are analyses
Manhattan Bank and United Merchants and Manu¬

Bridgeport
of Chase

facturers.

Co.—Analysis—Bregman, Cummings & Co., 74

J. I. Case

Trinity

The election of Boudinot P. At-

Place, New York 6, N. Y.
Charles Bruning Company

Recommendations & Literature
pleased
send interested parties the following literature:

it i« understood that the firms mentioned will be
to

—

Monthly Investment letter

—

Also avail¬

Letter.
Market at midsummer—Report—Saunders Cameron

Investors Beacon"—Nomura

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

available is

Japan

in

Mitsubishi Heavy

Cement Co. and

a

and

1959

for

analyses

brief

&

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

Japanese

is

30 Pine

1959—The

Hermetic

First

Stocks—Review—Kidder, Peabody & Co.,

Also available is a memo¬

17 Wall

Street, New York 5, N. Y.
randum on Duffy Mott Company.

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

performance over a 20-year period—
Inc., 46 Front Street, New York

market

National Quotation Bureau,

4, N. Y.
Stocks—Selected list

of 20 issues—George,

Co., Inc., 30 Broad Street, New York 4, N. Y.

Plywood Industry—Analysis—Peter Morgan & Co., 149 Broad¬

New York 6, N. Y.

Stores—Review—Reynolds

&

Co., 120 Broadway, New

York 5, N. Y.

Also available are reports on ACF Industries,
Inc., Continental Insurance Company, U. S. Pipe & Foundry
and

list of Preferred

a

Selected

Stocks for income.

various categories in the July issue of
Guide"—Harris, Upham & Co., 120 Broadway, New
5, N. Y.
Issues—In

"Pocket
York

Securities—List

Selected

Hutton &

E. F.

Ungava-Labrador

of issues which appear attractive—
Company, 61 Broadway, New York 6, N. Y.

—

Review

—

Bank of Nova

Scotia, Toronto,

Canada.
•

»

•

organizations, has
Talcott,
Chairman, and Herbert R. Silver¬

Co.—Memorandum—R. W. Pressprich

Co. of Canada

International Nickel

—

Jefferson Lake

—

'

Wall

house

Wall Street, New

Life

&

Company—Report—Georgeson

Assistant

an

as

organ¬

Sec¬

two New York law firms,
DeBevoise, Plimton
&
McLean
and
Milbank, Tweed,
Hope &
Hadley, and also served as an
Assistant U. S. Attorney, prose¬
cuting Federal criminal cases.
Talcott, founded in 1854, is en¬
gaged in all phases of industrial

Co.—Bulletin—Robert

H.

&

Huff

and

inventory
financing,
mortgage,
equipment and special loans, fac¬

Building, Cleveland 14, Ohio.

Portable Electric Tool—Analysis—J. P. O'Rourke

receivable

finance—accounts

Oglebay Norton Company—Analysis—J. N. Russell & Co., Inc.,
Commerce

elected

and

department.

with

Co., 210 West Seventh Street, Los Angeles 14, Calif.
Union

1956

legal

Previously, he had been associated

Co., 52

York 5, N, Y.

Insurance

firm's

retary of the company in late 1957.

& Co.,* Incorporated, 225 East
Street, Milwaukee 2, Wis. Also available is a report

Nationwide

in

counsel

He was

Cutler Hammer, Inc.

on

Atterbury joined Talcott

the

ized

Street, New York 5, N. Y.

Mason

President.

man,

Dean

Petrochemicals—Report—John R. Maher Asso¬

Manufacturing

Joy

factoring

Mr.

Memorandum

Co., 45 Montgomery Street, San Francisco 6, Calif.

Witter &

Atterbury

beein announced by James

Co., 48 Wall Street, New York 5, N. Y.

fi¬

toring, industrial time sales
nancing and rediscounting.

& Company,

Building, Chicago 4, 111.

Reeves

Brothers—Report—Edwards & Hanly, 100 North Frank¬
Street, Hempstead, N. Y.

lin

Richardson Company

Analysis

—

—

—

John H. Jackson With

H. Hentz & Co., 72 Wall

Also available is

Street, New York 5, N. Y.
on Botany Industries, Inc.

Sawhill Tubular Products Inc.

a

Memorandum

Spencer Trask & Co.

memorandum

—

(Special to The Financial Chronicle)

McDonald &

CHICAGO, 111—John H. Jack¬
son
has become associated with

Co., Union Commerce Building, Cleveland 14, Ohio.
Sundstrand Corp.—Memorandum—A. C. Allyn &
La

Salle

James

Talcott,
York

New

Co., 122 South

5,

La Salle Street. Mr. Jackson who

Inc.—Analysis—Bache
N.

Y.

Also

&

Co., 36 Wall

available is

a

Street,

memorandum

on

formerly
Geruldsen & Co.
Prior
thereto
he
was
Chicago
Manager for the Milwaukee Com¬
pany
and was Manager of the
municipal department for Lehman
Brothers in Chicago.
for many years was

ness

with

Report — Ralph E. Samuel & Co., 115
Broadway, New York 6, N. Y.
South

the investment busi¬

has been in

Southern Materials.

Tampa Electric Co.

135 South

Co.,

Trask &

Spencer

Street, Chicago 3, 111.

D. Fuller & Co., 26 Broad¬

—

— Analysis — Hill
Richards & Co.,
Spring Street, Los Angeles 14, Calif.

Wallace,

United

New York 4, N. Y.

American Machine

&

&

Foundry—Report—du Pont, Homsey &
Company, 31 Milk Street, Boston 9, Mass. Also in the same
circular are reviews of Delaware, Lackawanna & Western
Railroad, Glidden Company and St. Regis Paper.

an

Shoe Machinery Corporation—Analysis—Laird, Bissell
Meeds, 120 Broadway, New York 5, N. Y. Also available is
analysis of the market at the half-way mark.

Upjohn Company—Review—Ira Haupt &
New York

Seal-Kap

Corporation—Analysis—Blair &
corporated, 20 Broad Street, New York 5, N. Y.

Co., In¬

Assembly Products Inc.—Study—Straus, Blosser & McDowell,
111 Broadway, New York 6, N. Y.
Borg-Warner Corp.—Report—A. M. Kidder & Co., Inc., 1 Wall
Street, New York 5, N. Y. Also available is a reveiw of
New York

and

South

Avenue,

*

International Harvester

621

American

Southwest ,57th

7245

Telecomputing Corporation

*

Airtek Dynamics, Inc.—Study—S.
way,

Company,
Fla.

Miami 43,

Board of Trade

O'Neill &

B. P.

independent commercial financing

Montgomery Ward & Co., Inc.—Data—Hornblower & Weeks, 40

porated, 24 Commerce Street, Newark 2, N. J.
Over-the-Counter Index—Folder showing an up-to-date com¬

Over-the-Counter

Co.,

&

Telephone and Telegraph Company of Virginia—Report

Home

&

Williams

G.

Y.

McQuay, Inc.—Report—Loewi

Banks—Comparative figures on leading
banks and trust companies—Parker and Weissenborn, Incor¬

Northern New Jersey

Retail

Corporation—Report—R.

Seal

ciates, 32 Broadway, New York 4, N. Y.

New York City Bank

and

Company—Analysis—Schweickart & Co., 29

Inc., 149 Broadway, New York 6, N.

York 5, N. Y.

way,

Street, New York 5, N. Y.

Broadway, New York 6, N. Y.

Bank

Bank Stocks—Comparative figures at June 30,
Boston Corporation, 15 Broad Street, New

New York City

on

Refractories—Analysis—Lubetkin, Regan & Kennedy,

—Dayton

City

Securi¬

Street, New York 5, N. Y. Also available
Reeves Bros.

Harshaw Chemical

New York.

yield

report

a

General

—

Stocks—Quarterly report—New York
Hanseatic Corporation, 120 Broadway, New York 5, N. Y.
New York City Bank Stocks—Comparison and analysis of 12
banks—Laird, Bissell & Meeds, 120 Broadway, New York 5,
York

Angeles 13, Calif.

Inc.—Analysis—Eastman Dillon, Union

ties & Co., 15 Broad

New York.
New

Co.—Analysis—Bateman, Eichler

& Supply

Co., 453 South Spring Street, Los

Electro-Voice

of

Industries, Nippon Flour Mills Co., Iwaki
survey of the Steel Industry.

Co.—Memorandum—Robert W. Baird & Co., 110
Milwaukee 1, Wis.

Ducommon Metals

Canada.
Study of changes in postwar years—

Expenditures

Vice-Presi¬

East Wisconsin Avenue,

Limited, 55 Yonge Street, Toronto 1,
Japanese Stock Market —
In current issue of "Nomura's

Assistant

Talcott, Inc., one
of the country's oldest and largest

Milwaukee 2, Wis.
McKinnon,
Broadway, New York 4, N. Y. Also available is a report on

2

able in current Foreign
Canadian

James

of

Texas Pacific Land Trust.

Burnham and

New York 5, N. Y.

Company, 15 Broad Street,

as

dent

Inc.—Report—The Milwaukee Com¬

Colgate-Palmolive Company—Report—Thomson &
-

Crouse Hinds

yiew

terbury

207 East Michigan Street,

pany,

Thursday, July 30, 1*959

•.

...

Atferbury Elected
At James Talcott,

York

New

Dealer-Broker Investment

Commercial and Financial Chronicle

City Banks for the first six months of 1959.

H. T. Greenwood Go.

Co., Ill Broadway,

To Admit Partner

6, N. Y.

Wagner-Lambert Pharmaceutical Company

—

Analysis

—

Pa.
—
On
Huhn III will
partnership in H.
T. Greenwood & Co., 1401 Walnut
St., members of the PhiladelphiaBaltimore
Stock
Exchange. ': On
the same date Walter J. Devine,
PHILADELPHIA,

Hay-

and

a

memorandum

on

be

Also available

is

admitted

Jr.

Arkansas Louisiana Gas Co.

Zale Jewelry Company—Bulletin—De Witt Conklin Organiza¬

tion, Inc., 120 Broadway, New York 5, N. Y.
a bulletin on Empire Petroleum Company.

1, .John R.

August

den, Stone & Co., 25 Broad Street, New York 4, N. Y. Also
available is a report on Pechiney (French chemical company)

will

to'

retire

as

a

general part¬

ner.

For

Air

financial institutions only—

EXTRAORDINARY

The

largest forwarder, clearance broker and

solidator

of

international

con-

2 Sets of

are

Commercial and Financial Chronicle's
FOR SALE

cargo

with

a

Co., Inc. is
securities business

a

offices

at

1U1

York

New

Street,
.

Securities

engaging in
•from

OFFER

Express International Corp.

1

General Sees. Opens
General

West

57th

Officers

City.

Nicholas J. Papadakos, presi¬

William Djinis, vice presi¬

dent;

dent; and Orestes G. Verry, secre¬

tary-treasurer.

network
•—

of 278 offices and
agents

throughout the world.

From 1895

to 1939

Inclusive

Trader Wanted

Approximately 130 Volumes in All

Young, alert trader wanted by long

•

over-tbe-counter

established

Another Set

Troster, Singer & Co.
Members New York




ties
tems
.

.

.

house
.

.

.

.

.

.

salary

extensive
or

securi¬

wire

sys¬

commission basis

full cooperation

assured.

Security Dealers Association

Trinity Place, New York 6, N. Y.

HAnover 2-2400

Inclusive

WHICH SET INTERESTS YOU?
Write

74

1908-1928

Teletype NY 1-376; 377; 378

or

Phone

—

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Edwin L. Beck, c/o Chronicle, 25 Park PL, N. Y. 7

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B-l,

Commercial

&

Financial

Chronicle, 25 Park Place, New York
7, N. Y.

Volume

190

Number

5868

.

The Commercial and Financial

.

.

feet

remains

date

From

,

it

has

emotional

Washington

the

Eisenhower

sonie

wrong figures1 that caused him
veto the hous¬

ing

bill.

is not

to

belief

of

of

cans

the

Moscow

America
a

newspapermen
of Congress re-

policy

taken

so

since

he

1945

seriously

by

governments.

Eisenhower's

all

Vice-

exacer¬

stand known to be

States
be

to

issue; (4) amazement

resolution

a

the

did

was

to

is
out

carry

by Congress
for

the

ob¬

•

housing bill when it first

be¬

came

Senate.

the

the

bill

Mr.

Eisen¬

housing adminis¬
authority for

below

the

1958

quarterly

and the lowest since late

postponed

means

effect
no

that

seem

for awhile. It
much

states

the

would

later

could

we

observance
have just

as

now,

as

which

effect at all.

the

Harris-

Trust

Savings Bank, Chicago, in its
July Barometer of Business. The
monthly business summary goes
on to say
that generally, exports
affected

are

tions

in

business

by

condi¬

foreign

countries, while
respond
to
domestic

imports
trends.

Exports have declined this

due

to

lower

shipments

foodstuffs, cotton, steel, and
Imports

per.

since

have

mid-1958

risen

as

our

of

cop¬

rapidly

recovery

gained momentum and crude and
materials

greater demand.

were

J

.

shift

of

in

-

The Harris Bank believes that

York,

gress. It does

have

So

semi-finished

introduced the resolution in Con¬

Carlisle Bargeron

of

exports over
declined to $182 million,

average

year

position

Senator Paul Douglas of
Illinois,
Senator Javits of New

shares this belief. He voted for the

hower said

in

old

with

and

Banking
and Currency
C o m m ittee,

vetoing

an

and

servance.

ate

78%

balance

and

session

which

tee of the Sen¬

In

a

in

the resolution passed
set the week

on

tense

so

1950.

Mr.

Sub-Commit¬

the

chose

time, with the Geneva conference

that

Housing

fore

States

Communist

ranking

Republican

United

should

hart,
of
In¬
diana, who is
the

among

United

well.

as

(3)

a

shown
of

an

$1.3

the

higher.

billion

European industries

aggressively in

and

ances

Bank

our mar¬

take

more

in

lion.

eign countries

short-term

sell in

be

our

better

able

to

the

stimulus

tion,

others

should

Barometer

States

greater competi¬
with low-unit costs
from

demand.

believes

higher abroad. Gold
a

rates

under

time

Harris

the

increase

the

long-run
result should be a higher standard
of living both for the United States

$20

since

Bank

housing

there had

been

veto

foreign balances and
short-term investments in the first

and foreign nations.
claim that confidence in the dollar
The large excess of United States is diminishing.
imports
Instead, the great¬
goods through exports throughout the postwar ly
strengthened financial position,
the recession last year and into period has been financed by heavy
of many foreign economies should
the recovery this year.
Automo¬ capital investment abroad, both
bile imports in the first quarter private and government aid, and facilitate increased international
were up about 50%
over a year
by military expenditures. In fact, movement of .eoods and services.
is

the

of

longer term

significance

continuing rise

in

manufactured

units for which
applications.

is

message,

back before

now

is

whether to pass a new bill; a bobtailed
bill to take
care
of
the

housing situation until next
or

try to

bill

pass

The committee has had
of

Democratic

who

mayors

instead

of

ing funds
the

all

a

year;

NEW ISSUE

and

governors

have

testified

there being

$10,000,000

hous¬

hand, that aside from

on

Mr.

ordinates

that,

any

authorizations

of

offering of the Debentures for sale, or a solicitation of an offer to buy

an

of such Debentures. The offering is made only by the Prospectus.

parade

that

pending, they have about
applications on hand.
All

any

the original housing

Mr. Eisenhower's veto.

over

This is not

are

40,000

Eisenhower's

who

have

been

the committee have said

before

nothing to do with the veto

Nortiirop Corporation

sub¬

they had

S%

CONVERTIBLE

SUBORDINATED DEBENTURES

.

\

V

mes¬

The
Budget
Bureau
said
this, and Norman Mason, head of
Housing and Home Finance
Agency, said neither did he have
anything to do with it. The com¬
sage.

DUE

JULY 1,

1979

'

,

.

the

COMMON STOCK AT

CONVERTIBLE INTO

$38.50 PER SHARE

mittee

is having a time finding
just who was responsible for
figures and some of the state¬

out

the

ments that went into the message.
For
example, Mr. Eisenhower
said that the

PRICE

100%

\

PLUS ACCRUED INTEREST FROM JULY 1,

-

v

1939

big states could gob¬

ble

up all the money for urban
renewal. Senator Capehart quickly

pointed

that

out

each

state

was

The

truth

President

that

as

may

may

be obtained in

any

State only from such of the undersigned

lawfully offer these securities in such State.

the matter is that

of

Eisenhower

dislikes

public housing, understandably so,
and is fighting it. But it is con¬
tended

Copies of the Prospectus
and other dealers

limitedto 12V2%.

if

there

is

to

be

William r.staats

& co.

blyth & cg., inc.

.

ur¬

ban renewal homes must be built
to take care of the

the slums

when

people replaced

are

general dis¬
principal of public
housing he is believed to have been
of

the

drawn into

some^exaggerated and

inaccurate statements.

omnibus

The

paine, webber, jackson & curtis
a.c. allyn and

bache

company

clark, dodge & co.
dominick & dominic&

& co.

INCORPORATED

housing bill

is

a

thing and the committee
lot of work into it. They
thought they brought out a rea¬
sonably good bill at first. It had
compromises and it was sought to
bulky

puts

smith, barney & co.

lehman brothers

goldman, sachs & co.

torn down.

In Mr. Eisenhower's

like

a

hemphill, no yes & co.

mr st california company

schw aba cher & co.

INCORPORATED

walston

& co., inc.

dempsey-tegeler & co.

francis i. dupont & co.

accommodate it to the President's
wishes.
be

in

But

he turned

out

not

to

compromising mood. The

a

bateman, eichler & CO.

emanuel, deetjen & CO.

committee is put-out that it has to

the whole thing again.
leaders appeared before
the committee Tuesday and
Wednesday and, along with the

go over

Labor

crowell, weedon & co.
lester, ryons

& co.

hill richards

sutro & co.

co.

e. f. hutton & company

bingham, walter & hurry, inc.

Democratic mayors and governors,

they urged that the veto be over-,
ridden.
There is a
strong hope
among

the

committee

The

House

The

is

impact

another

of

the

matter.

on

July 17 has been little

short of amazing. Its

winslow,
INCORPORATED

President's

proclamation of "Captive Nations
Week"

cruttenden, podesta & co.

members

that this can be done in the Senate.

ultimate ef-




July 29, 1959

the

sharp

quarter gives little support for the

no

housing Sub-Committee which
trying to make up its mind

But,
the

in

The bill, with Mr. Eisenhower's
the

$2.3 bil¬

billion for the
1940.

concludes

tration had left-over

100,000

record

this

Nonetheless, the United
gold stock late last month

dipped
first

expanding

Therefore

bal¬

short-term inter¬

Sharply rising United States

deficit.

of

benefit

foreign

conver¬

year have
slowed the gold outflow
despite a
higher United States net payment

markets, they will also

active buyers. Although
domestic industries may feel

more

some

as

outflow reached

perspective, it

should be remembered that if for¬
are

greater

of their increased

gold,

est rates were

that

suggests

allow

tibility
of their
currencies.
In
1958, foreign countries chose to
ances

to keep this shift in

payments

foreign countries to
build up their gold and dollar bal¬

kets.
Harris

These

have ehabled

are

'The

international

annual rate in the first

quarter of 1959.

rebuilt

more

in

has

deficit

The recent shift in the
merchandise balance of trade has
increased the payment deficit to a

beginning
to
achieve
economies of mass production for
the first time,
enabling them to
sell

States

annual

payments.

their productive ca¬
pacity after World War II damage
and

United

average

and machinery of all types,
chemicals, glass, and textiles were $3.7 billion

imports

of Central

1950

since

ago,

Western
and
neutralist
diplomats in Washington that the

nations

Europe;

empha'sizing

Senator Cape-

rising tempo of discus¬

also

that

Republi¬

a

have

among

the

Democrats but

Amid

quarter

bate

only the

almost

surprise

eastern

President

This

Union;

an

sion about the United States'
po¬
sition in world trade, our first-

and

given

was

Soviet
and

if,

Chicago Bank Sees Long Ban Cain
Resulting From Current Export Drop

re¬

chagrin among
representing the
so-

diplomats

There is the general
impression
pn
Capitol Hill that President

to

bitter,

a

of

sense

called satellite

By C. BARGERON

but

seen,

(1)

surcharged

bewilderment

personal

Ahead of the News

be

and

from

sponse

(2)

to

caused

Ch^nicle

cohu &

stetson

hooker & fay

wagenseller & durst, inc.

\

The Commercial and Financial Chronicle

10

.

.

Thursday, July 30, 1959

.

(422)

We

Troster,

Troster,

&

for

Number
ICLE.

day

at

NSTA, is this year cele¬
brating his fortieth anni¬

8:30

in Wall

versary

Ti*cn

F.

supporter

Oliver

Street.

J. Troster

TISCH, Chairman
National Advertising Committee

c/o

CLUB

BOND

The

OF

with

the

at British

ropean

Plan and transfers between

observe

Twenty-Fifth

its

joint dinner and field day to be
Bankers Association, it was

a

,

Leon

by

Club.

'

$85.85 each.

affair

50

least

been

Co., New York, N. Y.; Edward H.
Welch, Sincere & Co., Chicago, 111.

special events have
planned for th,e Club's

Joins
SAN

Opening event for the
quarter-century event will
be
a
dinner
at
Denver's
Petroleum Club August 6
and the next day
move

25

years

Mr.

c.4u.

Joins Bell Beckwith

Convention

—

for their annual
tion

PALO ALTO, Calif.

;

601

ATLANTA,
_Dismer «has

O. RR.

&

C.

with Walls

is

Following
National

L.

•John

Oliver.

F.

L.

•Leo

Sanders

Jr.

Browr

l!

and

Asiel

Beck

•Morton

•Edwin

J.

Wakeley

•Edward

V.

Knapp

G.

•Seward

John

Cummings

&

Bean

Co.

•Charles

E.

•Robert

•Edgar

Hay,

&

Inc.

Co
&■

Co.

Nuveen

&

Stearns

Greene

&

Suplee,

A.

•Frank

J.

E.

Feldman

Myers

Maguire

•Gambol

J.

•Wallace

H.

Joe

Dunn

Runyan

Cabbie

•John

E.

•Edward

•Alfred

Kelly

Tisch

•William

C.

Elwell

•Milton

J.

♦Robert

Strauss

•Bernard J.
♦Mr.

&

Isaacs

Conlon
Mrs.




&

Co.

Co.

Piper,

9:02

A.M.

Arrive Phila. 30th

10:45

A.M.

Arrive

Yolk,

N.

Y.

York,

N.

Y.

N.

Detroit,

/

Co.

Chicago,

Drexel

Inc.

•

&

Carl M.

New

Noycs
&

&

Co.

Denton,

Co.

Loeb.

&

Straus.
Daniel

Co.,

Co.

Fox

Rice

&

York,

&

&

N.

N.

Pa.

Co.,

Inc.

Y.

York., N.

Y.

New

Baltimore & Ohio RR.

The All

Wis.

rate

The

is

Each

firm

name

of

Bedroom

$345.48

$359.00

303.76

307.45

v 314.65

324.88

333.91

318.99

on

Roomette

299.54

292.82

289.24

rate

based

cost

the

One in

.$333.54

__

Louis

under

Trevathan & Co.

Drawing Room

Each

Compartments

shown

ing

Return

Two in

One in

$325.22

PhiTadelphia_
fSt. Louis
*

Boca Raton a^d

.

Each

York

t St.

Y.

to

Two in

Compartment

business from offices in

the Wichita National Bank Build¬

$320.62

FROM:

Chicago

III.
N.

Exnense Tour Rate
Two in

New

securities

Illinois Central RR.

Bedroom

III.

York,

_

Chicago

„

FALLS, Tex.—Stan¬
ley M. Trevathan is conducting a

Thursday. Nov. 12, 1959
Illinois Central-RR.

Arrive

P.M.

of

WICHITA

St. Louis

6:30

business

40 Exchange
City. Officers

S. Trevathan Opens

New York Central R.R.

Detroit

Y.

N.

Chicago,

Cleveland

Arrive

Y.

York,

Chicago,

Arrive

Pa.

New

Milwaukee,
McDowell
Co.

Pennsylvania RR.

A.M.

or

Co.,

York

George; E. Sozek, President
Treasurer, and D. A. Sozek,
Vice-President and Secretary.

A.M.

Arrive

investment

Sozek

and

6:30

Tuesday, Nov. 10,

the
E.

are

-

Sunday, November 8, 1959

3:30' P.M.

New

Inc.

Blosser
F.

York,

Arrive

in

poration, has been formed to con¬
tinue

Pennsylvania RR.

P.M.

Indianapolis
Chicago

Minn.

Ga.

Philadelphia, Pa.
Rlzoades &

Fitzgerald & Co.
Loewi

New

Arrive

-

7:35

Pa.

Philadelphia,
Inc.

P.M.

■

III.

Philadelphia,

Rollins

& N't RR.

Y.

/ •

Minneapolis,

Inc.

&

L.

7:00

N.

L.

Cincinnati..

3:00

Mich.

York,

Louisville

Arrive

engage

Officers are/

Geo. E. Sozek & Co., Inc., a cor¬

N. RR.

Arrive

P.M.

Securities,

G. Gloster, Treasurer.

Place/New

P.M.

to

Now Corporation

;

8:30

Y.

Atlanta

Bros.

and John

Friday, Nov. 6, Monday, Nov. 9 or Wednesday. Nov. 11
P.M. Leave Miami
Florjda East Coast RR.
P.M. Leave Boca Raton
Florida East Coast RR.

Y.

N.

Hopwood

Hemphill,

THE WEST

Road

securities business.

Pennsylvania RR.
Pennsylvania RR.

'

12:25

N.

York,

Co.,

Co.,

New- York

Alto

3309

Joseph H. Thomas, Jr., President;"
Joseph Burroughs, Vice-President; |
Marshall
E.
Dawson,
Secretary; '

Saturday, November 7, 1959

York,

&■

&

a

1:28

&

&

at

—

has been formed with offices

Inc.

Geo.

Mosley &

&

BALTIMORE, Md.

12:01

Philadelphia,

Wilson

Form Securities Inc.

Coast RR.

R. F. & P. RR.
Pennsylvania RR.

RETURNING TO

C.

111.

Jaffray

Dunn

F.

Baltimore

Hilsman

H.

Stroud

P.

Washington

Arrive

New

Inc,

Burns

Knob
J

Par cells

A.

Harry J.

J.

Arrive

A.M.

New>

Co.

Yentman,

'

A.M.

7:26

N.

New

&

East

&

Co.

Charles

Wilson

•Grant

•F.

&

Graves

Co.,

•Harry J.

6:20
Y.

111.

York,

Angeles, Calif.

CITY, Mo.—David A.'

Avenue.

3:55

Detroit.. Mich.

Fales

RR.

Coast Line RR.

Saturday, Nov. 7. Tuesday, Nov. 9 or Thursday, Nov. 12
A.M. Arrive Richmond
Atlantic Coast Line RR.

Y,

Chicago. III.

Lawson

KANSAS

Florida East Coast RR.

■■

■

Y.

Chicago.

Co.

Topol
Christian

Leave Boca Raton

N.

Greensboro,

.

Co.

&

Exley

M

A.

Florida

N.

New

.

Co.

P.

Staff

to

1959

York,

New

Associated, Inc., Cand¬

Junge has been added to the staff
of Bache & Co., 1000 Baltimore

9:30

A.M.

E.

connected

Building.

Bache Adds

Friday, Nov. 6, Monday, Nov. 9 or Wednesday, Nov. 11
A.M. Leave Miami
Florida East Coast RR.

Y.

N

Mass.

William

(Special to The Financial Chronicle)

RETURNING TO THE EAST

New

Securities

Gordon

Meyers

Atlantic

Arrive Boca Raton

A.M.

9:30

Y.

&

F.

R.

Washington

York,

Los

Armstrong, Jones,

Feltman
T.

York,

Chicago.

Mackle

&

__

•William

Leave Richmond

New

White

•Irving L.

Leave

P.M.

10:42

Co.

&

Haas

Bear,

Lawson

N.

C.

P.M.

—

'

Pennsvlvania RR.

Washington

New

Allyn

United

N.

Financial

&

Arrive

Md.

Baltimore,

Boston,

Leave

^Sunday, November 1,

Texas

York,

New

New

Inc.

Company

Wertheim

Valley

X.

&

Fairman

Clayton Lee

•Frank

C.

Singer,

O'Neil

J.

Co.

Chronicle
Candee
A.

Markham

•Reginald

&

Company
Gannon,

Candee

R.

Dallas,

P.M.
P.M.

2:00

held at Boca Raton,

to be

1959:

Downing

Baltimore

12:05

the

of

Pennsylvania RR.
Pennsylvania RR.
Pennsylvania RR.

Leave Phila. 30th

12:45

registration and

Convention

Kaufman & Co.

Commercial

Weiss

•Richard

&

&

M.

J.

•Thompson

•N.

May

for

Annual

Company

Baumgartner,

daughter

•William

&

McLaughlin,

Burns

Joseph Gannon
•Edwin

the

1st through 6th,

McLaughlin

•Walter
E.

for

date

A.M.

4:25

applications

the

of

to

Security Traders Association

Florida, November
•Allen

list

a

received

reservation

10:35

REGISTRATIONS

Ga.

become

EAST

FROM THE

NSTA CONVENTION

Incorporated,

With Walls Assoc.

Pennsylvania RR.
Pennsylvania RR.

New York

Leave

Co.,

&

Peter N.

O. RR.

&

Saturday, October 31, 1959
A.M.

(May

—

the staff of J.

Bryant Street.

ler

9:00

May Adds

Bennett has joined

Cincinnati)

Raton.

Boca

at

(From

New

members

(Special to The Financial Chronicle)

Arrive Washington

A.M.

7:55

ride, this time to Florida for the Annual Conven¬

&

Beckwith,
of the
York Stock Exchange.

Pennsylvania RR.

Saturday, October 31, 1959
12:16 A.M. Leave Pittsburgh
8:55 A.M. Arrive Washington

Welch, Sincere and Company, Chicago, Chairman of
the NSTA Convention Committee, is all set to take the traders

Bell

Street,

J. Earle

Pennsylvania RR.
Pennsylvania. RR.
C.

with

now

Erie

Earle

Toledo

P.M. Leave

is

234

(Special to The Financial Chronicle)

WEST

THE

FROM

TOLEDO, Ohio—Robert R. Coon
II

for 15 years.

the National Security Traders Association
Boca Raton, Florida, November 1-5, 1959

Friday, October 30, 1959
3:15 P.M. Leave Chicago
5:45 P.M. Leave Cleveland
6:10 P.M. Leave Cincinnati

Edward

establishment of the Denver

(Special to The Financial Chronicle)

ASSOCIATION

SECURITY TRADERS

Special Train to

6:20

Traders Association in
attended a meeting in Chicago

He served as its Treasurer

NATIONAL

—

become

Higgins, 465 California Street.
f»A 4lup

Securities
who

Clark

Calif.

has

Mattson

the party

out to Columbine

which resulted in the

ago

Club.

Bond

National

the

was

E.

affiliated with Wilson, Johnson 8c

Country Club for field day.

of

FRANCISCO,

Janet

Phillip J. Clark, Denver investment banker, was one of the
founders of the Club and its second President.
Mr. Clark was
-It

Wilson, Johnson

(Special to The Financial Chronicle)

Anniversary.

Silver

1954-55.

Boston,

Thayer,

& Co., Philadelphia, Pa.;
Rogers, Casper Rogers 8c

Casper

ber of

President

com¬

17 States and a num¬

from

will

Gannon,
Inc.,
John M. Hudson,

&

Bak^r

250

Club
to at¬
guests

expected

is

at

tract

additional

reservations and

For

information members should

May

the

its

to

Bond

$64.85

each. Two in Stateroom with bath

Mass.;

the

members,

Eu¬

on

municate with: Wm. J. Burke, Jr.,

•

addition

In

of

President

Denver,

Mullen

J. K.

A. Lascor, of the
Investment Company in

week

Colonial

Dock and Hotel will be:

Investment

Denver

this

announced

dinner and breakfast on
the boat in both directions, rooms
with
bath
(Two
in
Twin
Bed¬

Two in Outside Stateroom

Anniversary August 6-7 with
held

9.

room)

Company

Street, New York 5, N. Y.

will

Denver

of

arriving Miami at

cluding

DENVER

Club

Bond

&

Fitzgerald

40 Wall

Leaving Nassau Sun¬

p.m.

5

The cost of the Nassau Trip in¬

ALFRED

.

Friday,

Nov.

a.m.

staunch

Trip to Nas¬
leaving

arranged

p.m.

lonial Hotel.

The Colonel, always

of

a

Alfred

5

at

the S. S. Florida

on

CHRON¬

the

of

been

bag¬

hotel.

Nov. 6
arriving Nas¬
sau Saturday morning where the
group will stop at the British Co¬

rity Traders Association
YOU FOR ANOTHER RIDE

has

and

and

A Post Convention

Miami

and

Bedroom)

individuals

of

en

Plan

American

on

in,,. Twin

between train

sau

the National Secu¬

train

on

Raton, five days at

Raton

gage

Year- Book Convention

TAKE

meals

Boca

transfers

advertise-

halfpage

a

Vment in

HE'LL

to

(Two

York

New

Co.,

City, who has.again signed

►

Pullman,

route

salute

to

Boca

J.

Singer

Notes

happy

are

Col.

NSTA

and

SECURITY TRADERS ASSOCIATION

NATIONAL

via

and

quoted goinq

Drawing

Bedrooms

cf the

Rooms

352.05

331.20332.41*

321.30*

is

317.40

309.54

and returning direct.
not be available returning

will

Expense

ing

an

investment

to

St.

Louis

and

City.

business

from

Mr. McEvoy was formerly a

partner

Trip

McEvoy Opens

W.4 McEvoy is conduct¬

offices at 26 Broadway, New York

Chicago

returning.

All

H. W.
Harold

includes Round

Trip Rail

McEvoy.

in

Winslow,

Cohu

&

Volume

190

Number

5868

...

The Commercial and Financial Chronicle

(423)
not

Overcoming the Limitation, of

In

General Economic Forecasts
of

the

general

prefers
that

a

single

a

-

:

in

These

come

In

substantiated

through

debits

mind as to what value
this type of information may be to
my

creditmen,
business

It

1958

the

in

is

has

been

treme

6%

New

York

and

six

attempt

yield

regions, the percentage

plus 20% to

a

eastern

them to

minus 5%.

a

Montana,

southeastern

South

trends

southwestern

Minnesota

for

Oscar

tive firms.

F.

Litterer

resulted

apt to contain

a mar¬

since, of course, no
has perfect foresight. If any¬
error

had

this

give

ability, he probably
the job of writing

up

forecast^ and devote his energies
to the

buying and selling of

rities

of real

or

estate.

Dakota

and

crops

secu¬

However,

in

volume

of

large

a

higher
in

rise

business

and

where

prices for farm products

All economic

one

farm

record

respec¬

and

western

predict future

would

1957,"
turned

economic

Large increases occurred in south¬

one

and

cur¬

there

have

been

reflected

by the

interest

1958

in

the

transacted.

Many urban centers serving these

Not

progressed,

from, the

the demand

April

bills

low,
has

recent

history

has

the

of

S. Government securities

experienced
such
a
swing over a period of

immediate
in

the

particular markets

Future

economic

nothing from which to
1959.

In
of

ume

the

fact,

recover

that some basic
taking place in the
U. S. Government security market
which may gradually spread
to
other credit markets. Thus, larger
are

in

the

decline

interest

this

erably

in'the past.

any

Some

years

teaching

when

ago

class

a

the

of

When

in

I

was

statistics,

instructor's

estimates

I

were

desk.

added

up

and
divided
by the number of
students, the average estimated
length of the desk was never far
from

the

actual

principle

length. The

same

in a
forecasts.

be

may

operating

economic
This year, forecasters are unani¬
mous in predicting that economic
recovery
will continue through
1959. Differences of opinion are
composite

of

confined

chiefly

advance

the

during

to the rate of
likely prevail

months.

coming

estimated

The

for

1958

Product

National

Gross

is

will

that

the

billion;

$437

at

mentioned esti¬
$470 billion. To
total, the output of

most

frequently

mate

for

achieve

is

1959

this

proximately $480 billion in the
fourth quarter of this year. This
rate of advance
would be sub¬
the

in

enced

than

less

stantially

latter

was

experi¬

half of

1958.

During that period, the Gross Na¬
tional Product rose by $10 billion

quarter and $14 bil¬
lion in the fourth quarter. Thus,
on
the basis of a composite made
of
a

third

the

in

a

1959,
in the

number of forecasts for

slowdown

envisaged

is

Trends Among

the district. Debits
the

in

Even though

the forecast for the

economy

may

curate, it may not be

prove

eastern

iron

among

regions within the nation.
recession was con¬

1957^58

largely to the manufacture
durable goods and to the min¬

fined
of

the

1958
In

the

where

well

WASHINGTON, D. C.—Paul A.
Yates

Aug.

on

1

tively

become

N.

a

& Co.,

W., members

rates

Lester F. Gannon

Stock Exchange.

been

associated

Cashier.

Broadway, New York City. Lester
Gannon has

F.

with

the

trading

Continues Business

has

con¬

of

Blauner

Lake

of

sified

Investors Service, 40 Ex¬
change Place, New York City.

With Dean Witter
(Special to The Financial Chronicle)

Form Accredited

Planning

COMMACK, N. Y.—Accredited
Planning
Corporation has been
formed with offices at 70 Genesee
Drive

to

in

engage

securities

a

SAN FRANCISCO,
J.

Wilson

is now

offer

an

to

sell

nor a

f

were

solicitation of

an

offer

July 15, 1974 i

;;

Price

100% and accrued interest

up

increase

small

the

in

impor¬
only
1%

in

Copies of the Prospectus,may be obtained from the undersigned only in the
in which the

states

debits

undersigned is qualified

and in which the Prospectus may

most

to act as a

dealer in securities

be legally distributed.

southeastern'

in

Minnesota

and

a

portion of western Wisconsin. It is
only in these regions that a recov¬
ery can be anticipated comparable

Dean; Witter

&

Co.

July 29, 1959

to that in the national economy.

Explanation of Underlying
Forces

The most

helpful forecast is the

one

that

tion

This advertisement is neither

of the underlying forces

the

determine

will

best explana¬
that

gives the

in

trend

these securities,. The
Not

forecaster

basic
eral

accurate

on

a

New Issue

30,000 Shares

most

indices, this gen¬
information still would have
to the

value

that

instance,

Product

.at \ $470

VARIAN ASSOCIATES

businessman.

Gross Na¬

the

is

1959

for

tional

esti¬

that

businessman cannot interpret

Capital Stock

be
the
it in

billion

meaningless

of the outlook

terms

in

may

(Par value $1

per

share)

per

share

for his firm.

The

figures may have
specific field
by the anticipated
to 10% in farm in¬

general

limited meaning in a
is

illustrated

decline from 5

in

come

1959.

An

the

underlying

this

decline

than

tant

there

and

held

at




to

economic

limited
For

were

offer to sell nor a solicitation of an offer
offering is made only by the Prospectus.

an

the

period ahead for a particular in¬
dustry or a region. Even though a

Price

$36.25

explanation of

forces

leading to

Copies of the Prospectus

be more impor¬

may
the

was

a

#

Remarks made by Dr.

inar

,

the district—the Twin Cities—and

in the Ninth Fed¬ prices
district, for example, some

Litterer at the
Financial Management Sem¬
the Center for Continuation
Study, University of Minnesota.
*

buy

as

highly con¬
centrated manufacturing region in

There

Credit

to

Exchanges.

offering is made only by the Prospectus.

Due

states

The

percentages.

in which the

may

be obtained from the undersigned only in the

undersigned is qualified

and in which the Prospectus may

to act as a

in

of

frozen
was

meat

ranchers
cattle

sharp rise
produce

fresh

and

also

prices
were

herds.

a

as

in
and

canned

dealer in securities

be legally distributed.

Dean Witter & Co.

goods.

sharp advance

farmers

rebuilding

These

the
of

and
their

situations

are

July 29, 1959

Calif.—Fenn

Dean Witter

&

mem¬

bers of the New York and Pacific

4%% Convertible Subordinated Debentures

Another rela¬

1957 total.

occurred

The recession

eral Reserve

with

Co., 45 Montgomery Street,

Coast Stock

business.

-

result, the re¬ prices of agriculture products are
centered in these expected to decline. Last year

industries.

is

Superior

copper

of the
Gannon,

Co.

&

north¬

the lowest
Montana,

were

Mr.

with Seymour

the investment business of Diver¬

VARIAN ASSOCIATES

•

associated

manager

department.

in

northern

become
as

recently been

ing of metals. As a
covery

firm

$4,000,000

western

mining

debits

tant,

will

partner in Jones, Kreeger

of other metals is

as

from the

applicable to

region. Especially m
1959, there may be substantial dif¬
ferences in the economic outlook
The

from

in
1939.

;

New Issue

down 5%

were

regions

Minnesota,

ore

region

-J

-

,

Jones, Kreeger Partner

Wisconsin
and ..on
the
Upper
Michigan Peninsula. Shipments of

since

..

P. A. Yates to Be

to

area

52

al¬

ac¬

specific

a

mining

largely

Regions

was

manufacturing

one

mated

rate of recovery.

national

recession

recent

and to

annual rate of ap¬

an

expected

are

at

■
.

these securities. The

fined largely to the mining regions

goods and services would have to
rise about $7 billion a quarter and
would reach

products

The

would ask students to estimate the

length

farm

individual.

one

O

■

drop, thus, reducing farm incomes.

as

branch office

served.
are

the prices of

year may

reliable than that of

a

shaped in
considerable
measure
by what has happened

This advertisement is neither

vol¬

transacted

business

mar¬

sharp
so
few

in

aggregate

trends

opened

ways

the

months. It appears

fluctuations

has

with
a
knowledge
developments in the
region and especially

current

Mrs. Helen Miller is continuing

ket

changes

Andersen, Randolph & Co., Inc.

supplemented

de¬

on

in

Andersen, Randolph

by business¬

a
general frame of refer¬
This information must be

,

regions had a record level of em¬
ployment in 1958. Since these re¬
gions had no recession, there is

the composite judgment of a num¬
ber of forecasters may be consid¬
more

be used

can

as

rates

Government securities.
the yield on threeTreasury bills in October,
the
peak
before
yields
down, was 3.58%. As the

Treasury
cidedly increased.

U.

Lester Gannon Joins

ex¬

U,; S.

month

ceeded

who

of

to

recession

men

—

for individuals

gin

be¬

conditions.

for funds declined and the Federal

of

financial

change in bank debits in these re¬
gions in 1958 over 1957 ranged

are

have

sensitive

recession

from

forecasts

credit

above the 1957 total. In the nation

limited value

their

markets

gyrations of

Ninth district is subdivided into 12

gen¬

forecasts have

use

in

recovery,

qn.

-

This is

likely in the 1

are

centers
Boston, Reserve Banks supplied funds to .1625 Eye Street,
Detroit,
Los
Angeles, the market. As a result, the yield of the New York
Philadelphia and San Francisco- of Treasury bills declined steadily Mr. Yates has
debits were up only 1%.% frorfr and in May was at a low of 0.83%. with the firm as
the
preceding
year.
When
the As economic recovery has pro¬

eral economic

to

place

forecasts

v

1

credit

conclusion, general economic

as

of the basic

some

economic

recent

rates

swings in the credit markets

as

;

were

for

ence.

wide

by the rise in bank
in

paid

Chicago;

observa¬

tion that

moderate.

was

which

lesser

mercial

bankers.
my

whole

a

ap¬

outside

\

ex¬

ecutives and
com

as

interest

"increasingly

For example,

preparing forecasts, the
thought has" frequently
flashed

an

rent

J

an

In

this

In

field, for

taking

changes

•

explanation of the forces underlying a decline,:
for example, may be more important than the percentages.
avers

rise

markets.

and;-

one,

credit

changes

forecasts, even when
firms, regional appraisals,

composite of forecasts to

the

it is to describe

etc., trying to predict future trends can be overcome, according
to Dr. Litterer who explains how in his brief
paper. The economist

repeated

future.

possible

of

type

be

praisal of the outlook it may not
as
important to estimate the

Business Economist, Federal Reserve Bank of Minneapolis

Limitations

to

be

By DR. OSCAR F. LITTERER*

accurate, for credit men, individual

expected

year.

11

buy

The Commercial and Financial Chronicle

12

(424)

The F.H.A.

In its 25 years, FHA has written of all businesses and yet FHA iritotal of $£5,000,000,000 (billions) surance is one of the youngest. It
Newkirk" paid off the balance in of mortgage insurance.
Of this is one of the newest, one of the
1948 and received a payment from writing total, approximately $26,- boldest,
one of the most safely
the FHA of about $400 under the 000,000,000 (billions) is outstand- daring because of its young ideas
mutual mortgage insurance plan, ing at this time.
and it is one of the most success-

—A Brilliant Success
President,

things

Bank in Dallas

describes

action" which used the route of private
27, 1934, the Federal

June

Housing Administration came into
existence. The time was one of

Winifield

collapse of the mortgage structure

birth

virtual

cessation

would

We

who

mutual insurance fund.

gave

must

and
was

the
an

mortgagor helping an¬

mortgage

idea of

lending activ¬

mutuality.
The
immediate objective was to make
money available for repairs
and
new construction to put men back

It

ity.

was

other

a

when

time

confi¬

public
dence

in

vate

institu¬

tions

pri¬

when

to

important

and

Ben

H.

Wooten

surely

can

these 25

on

"Well

say

done." Your short and long range

been

have

met,

but

there is much more to do.

direct in¬

tervention by the Federal Govern¬
restore

to

back

look

objectives

demand¬

ment

we

years,

community
ing

we

as

building

house

The

standards

Number that anyone can have is
the street address on a home of
his own that is paid for.
^
Thanks to the Federal Housing

FHA

minimum

dreths of one per cent.

insured

Terms It

encourages

s
FHA rifies nnt
5. FHA does not

own
own

or orerate
or operate

has

it

successful,

of

to

onset

properties transferred
it by mortgagees, which it man-

Housing

Federal

original

Administration Act contained four

activity.

calf brm1adeatiSfaCt0ry

nosal

f r4? ^
6. FHA designs
assist

to

„

bulwarks

chief

our

of

against the
depression.
It
has

a

•.

enterprise

private

The' operation

anddcT0sin„

their services. It has raised
the minimum property standards
land

and

.

planning

has

It

uses.

helped to make older neighborhoods better places in which to
respects. It is
live. FHA is a helper. It helps the
objective for ,which it was created, builders, it helps families — and
Let
me
call
your
attention to I1} congratulating the FHA offijust a few highlights in the Fed- 9*a^s> we are actually congratulateral
Housing
Administration's hig the lenders, the builders, the
progress.
realtors and other members of
its

It is

own.

ernment

an

unique in many
accomplishing the

agency

major provisions. (1) Insurance
the most significant against loss on property improve¬
creation of the FHA ment loans. (2) Mutual mortgage
industry
with
whom FHA has
was
that an administration
not insurance on homes and low cost
FHA Accomplishments
worked — and the American famnoted for an aversion to direct housing. (3) The creation of the
First.
FHA
has
made
home Hies whose enterprise and integMortgage
Associations
governmental action chose in this National
ownership possible for millions of rity have made it successful.
instance the
route of renewing for the purpose of providing funds
American families because of the
Shelter, next to food and clothin areas of scarcity. And (4) The,
and strengthening private insti¬
favorable terms of the mortgages ing,
is man's greatest necessity,
of
tutions and of placing dependence insurance
savings
and
loan
it insures.
Home ownership and home life
accounts.
»
upon the functioning of the, pri¬
Second. FHA has helped to pro- *
foundation upon
vate
market.
The
FHA
was
Mutual mortgage insurance was
vide homes in rental and cooper- wh?ci; the PllIars 01 Americanism
designed to limit and avoid direct something new and its objective
ative
housing
projects
for rest- In many respects the history
governmental action rather than was nothing less than a form of
innumerable other Americans.
the home is the history of
to advance it and to aid private home financing. It was an emer¬
Perhaps

fact about the

service
rather than to supplant them.
institutions to give greater

The

Federal Housing

tration

in

1934

was

a

Adminis¬
new idea,

imaginatively
con¬
ceived. It was fresh, new thinking
and today it is thinking in a new

boldly

and

with

to fully cope
ever-changing problems

intending

manner

the

of housing.
Wooten before the
Year Celebration of Federal

♦An address by Mr.

Twenty-five
Housing
June 26,

Administration,

Dallas,

1959.

Texas,

but its long range
far more important.

gency program,

aspects
The

were

fund

insurance

must

be

Third

.

FHA

hsc

lions

of

improve

people
to
repair
their properties.

Fourth.

for losses.
This included risk rating of prop¬

home that

can

we

have

able

to

care

ity to pay the debt the most im¬
portant elements.
On December 21, 1934 a com¬
mitment
was
issued
by
the

to

that religious concepts

have to

helped

country and the place

our

Newark office of the FHA on the

first house to be
insured

housing standards and better lives.
living conditions throughout the
We travel
Fifth. FHA has carried

nical

The

owners,

have

that

tech-

on

in-

been

appears as a matter

of record only.

NEW ISSUE

flower

Sixth.

FHA

has

on

self-supporting basis
no
tax money
goes
into its
coffers. Fees and premiums paid
by the people who use its services
the

pf FHA's income.

source

Administration,
TT

nf

~

q

-

Eisenhote^

repaid

-n

0™™^+

L

100,000 Shares

'mn

•

pita

its first acts under the

full

the

-

,

filled

paid

a

needed

you

have

fare,

your

more

than

idle talk and

boast.

That

you

have

gifts

taken

divine
The

strength of body and man¬
hood fine,

And you

have used them ever

when

country¬

You could serve your

men."..
is

There

no

in

nobler purpose

living than the encouragement of home ownership,
art

the

of

and if it were possible, we feel
confident that the five million
families join us in wishing FHA
God-speed for even greater ac-

Sitzenstatter Joins

.

.,

live

at the end

in

of

door

sea,

Building
cade,

ing to George
S.
Rooker,

,

.

£° h°me

wan,,

a.

gathers

evening

—

Ar¬

accord¬

President

from

o

the farm, the hill,

vestment

firm.

banking

factory' we hurI7 home- Even the
child when he has found a toy or

Sitzen¬

Mr.

statter,

when he is hurt or afraid, he runs

na¬

a

New

tive

of

York

City, was

m

nrinmCjU5cing/i
m
well-being, the spearhead of good
HonAmerican life. It is the upright

s \ s

a

c

o

million

DOUGLAS MICROWAVE CO., INC.

home

that

keeps

nation

a

from

a

N.

J. Sitzenstatter

Eighth. FHA has worked closely
with private

per

falling, and the good family life
enterprise; indeed all is the nation's most precious asset.

its

share)

programs

No

Offering Price $3 Per Share

the

whole,
From

7—t

are

can

FHA
v

financial
or
show the full value

to

Americans

-

,

— -

as

a

SIMMONS & CO.

-—the

—

a

Trading Department:




home

ownership

of

d „,w

sons

&

i-

i th
Par¬

Graham,
I

Co.

of

__

operation with

reserves

of

$692,-

4, N. Y.

Teletype: NY 1-4581-2
WHitehall 4-6627

that

the

Congress

reretain

complete control of FHA regard¬
ing (1) a limit in terms of dollars
on

FHA's authorization to

and

(2)

insure,

authorization for operat¬
ing funds for the agency.

Two With Schwabacher
(Special to The Financial Chronicle)

SACRAMENTO,

Calif.

—

David

H. Brazil and Chester C. Lockard
have joined the staff of Schwa-

bacher & Co., 1001 Jay Street,

munity, our state, and our nation.
Edwin Markham

896,930.
quires

New York for a

America

deficit .25 years ago the

Jhe National Housing Act
WHitehall 4-7650

the banks are economic brothers
and I am firmly convinced that
their activities in strengthening

have the blessings of the Divine
FHA, without government sub- Designer of this universe and He
sidy, and upon sound business expects us to work together for
lines, has developed a mutual the common good of our com-

Underwriter

New York

e

.

statement,

otherwise,
of

56 Beaver Street

t

number of years
designed to enbefore moving to Texas in 1952.
courage private enterprise, never
Economic Brothers
Metropolitan Dallas Corporation
to compete with
it, in providing
The mortgage companies, sav- recently installed a direct private
housing for Americans in ings and loan associations, the in- wire to A. G. Allyn and Company,
different income levels.
surance companies, the FHA and
Chicago and New York.

Common Stock
(par value 10£

f

the Dallas in-

the
the office, the mine, and xne
xne omce, xne mine, ana the

store,

Bank

cantile

can

and

contentment

peace,

7e*

the

poration, Mer¬

and

we

home

our

,

when

of the Trading Department of Metropolitan Dallas Cor-

Manager

grown

the

close

Metropolitan Dallas
DALLAS, Texas — Norman J.
Sitzenstatter has
been named

y advanced to it home The American home which
'mn'iiV^ea^UIiy
3
y°u are building is the focus of

§

you

done,

crowded highway, or a
lane, it is remem¬

a

a

completely

are

trail,

bered because

operated

work

post,
That
everywhere

are

used in construction.

.,

July 29, 1959

roads; some

many

forgotten completely, some are remembered dimly; but the road
that leads home is remembered

forever; whether it be a mountain

in

-

of these shares having been sold, this announcement

have in our

improving
the
quality of materials and methods

strumental

built with FHA

financing.

studies

the

ethicg of fair play? the duties we

nation.

soundly

by

That you have

With

it to

and women of the FHA

know

taught the

are

or

—

All

men
"We

raise

erty and of individuals with the
mortgagor's willingness and abil¬

has

FHA

h

naranhrase

dedicate

civilization and it is in the Amen- complishments.

mil

pnahii»H

has enabled mil-

Tlura. FHA

operation

would

I

old poem and

an

prove

is a success on
outstanding gov-

of

history

a

efficiency

^'devotion"to Xtv' k"°Wledge

home builders to broaden and im¬

in
and

in mind that only peo¬

quarter of a century
integrity fairieveais emciency, uegruy, iair

helped t0 give "f, f eatesj .25
y6arS of.Progre.ss that has helped
housing has
ever
witnessed.
It

all its programs

developing
well-planned
well-built housing.

whose

reveafs

and its stabilizing influence is one

defaulted

its

at

FHA

ple climb from one height to an¬
other in achievement, so we salute
the men and women of the FHA.

HSelf under.eve,7 kind of through
P?°Ved
except a major depression,

stress

housing, with the exception of

any

experiment has been

brilliantly

quality homes.

the

saiuting

jn

quarter of a century of progress,
let's keep

Successful

Brilliantly

FHA

The

than

better

construct

to

Administration, the common place,
sparsely equipped home we knew
has slipped away forever, but the
future is even more challenging,
We look forward with eagerness
to the home of tomorrow.

ramoU~led !° ? one_hun"

which

an

story of people. It is

80,013

mini-

but

mortgage;

ambitious—to reform mort¬

lending practices, to broaden
opportunities for,home ownership,
and
to
raise housing standards,
gage

even

The FHA story of insurance is
a

to

long

more

and

segments of
the
business
were

restore confidence.
range
objectives were

established

has

be met to obtain

builders

through

work,

The

at

was

ebb

4ts

one

their

assignment of mortgage

builder-ap-

encourages

property

mum

It

ful.

a fascinatunits of housing, ing story, outlining the quest for
representing about 1.5% ;of the security, and in the FHA organi5,337,016 units covered by mort- zation, it is a record of great
gages or loans insured since the service. The best Social Security

.

FHA

4.

Mr.

Federal

the

of

Administration

Housing

of

idea

Riefler

W.

tribute to

Riefler

W.

the

to

pay

the

_

enterprise.

Winifield

Credits

1957,

beginning of operations. Of the
acquired units, 45,742 had been
but does not, itself, do any build- sold by the end of 1957 and 34,271;
ing or issue any house plans.
remained on hand.
; ,
3. FHA is not tax-supported. Its
Losses realized on the , total
funds are derived entirely from amount
of mortgage insurance
fees, premiums, and interest on written from 1934 through 1957
investments.
Besides paying
all amounted to 14 one-hundredths of
its operating expenses, FHA has one Per cent- Losses to the Mutual
built up substantial reserves to Mortgage Insurance Fund on sale
cover possible losses.
°f acquired properties under SecFHA

2.

home ownership. Paradoxically significant,
Mr. Wooten finds, is that this "experiment" was started by
"an administration not noted for an aversion to direct govern¬
ment

the

or

notes

It

private

by

from

through

acquired through foreclose-

plicants to construct good housing

private

ening

made

institutions

funds.

own

economic brothers dedicated to

as

loans

lending

money.

1934

From

FHA
ure

insures

and insurance companies, S & L Assns.,
strength¬

mortgage

fundamental

few

a

should not forget about

we

1. FHA does not lend

highly FHA on the occasion
He salutes the institution for being

"brilliantly successful" after reviewing its aims, methods and
achievements; pays tribute to Winifield W. Riefler for giving
birth to the idea of FHA and the mutual insurance fund; and
FHA and banks

are

a

FHA-

Texan commercial banker praises
of its 25th anniversary.

living in the house. Mr.

Here

BEN II. WOOTEN*

First National

still

are

Experiment

By

and

Thursday, July 30, 1959

.

HMNewkirk,

Mr. and Mrs. Warren

On

.

.

\

"There is

a

once

wrote:

destiny that makes

brothers;
None goes his

With

All that
of

we

way

alone;

send into the lives

Comes back into
Insurance

is

ATLANTA,
ver

have

others,
one

our

of

own.

the

oldest

Robinson-Humphrey

(Special to The Financial Chronicle)

us

become

Robinson

Ga.—John F. Car¬

William

and

-

B.

affiliated

Rhodes-Haverty

McDaniel
with

Co.,
Building.

Humphrey

The

Inc.,

4

Volume

190

Number

5868

The

Commercial and Financial Chronicle

(425)

sition

Some Unsettled Issues

recipient

Monetary Policy

Pro and

By DR. WARREN L. SMITH*

con

arguments

to monetary

as

to

>

the

the

mone-

policy — resuscitation with efforts to improve fiscal
policy's cumbersomeness and giving the Federal Reserve
controls

of

to

destabilizing bank portfolio shifts;

prevent

lost

reserves

by

the

income, a portion of
which is saved and a smaller
por¬
tion (a portion of the
portion that

is

bank

of

tions

It

is

now

eight

years

since the

Treasury and the Federal

Reserve

System arrived at the famous Ac¬
cord of

time,
had

March, 1951.

During that

have

we

that

the

issuers

gives
liar

their

of

distinctive
means

commercial

etary
and

it

of

some

enthusi¬

support¬

had

ers

it

for

at the time

of

the

research

L.

Smith

Accord.

New

Warren

stimulated

by the
revitalization of monetary policy
and based largely upon our recent
experience, has turned up a num¬
ber of perplexing questions and
knotty problems, and the whole
subject is still the center of con¬

siderable controversy among econ¬
omists as well as government of¬

Without in any way attempting
be exhaustive in my coverage,

I

have

have
of

selected

the

for

the fore

to

experience

our

discussion

a

important issues that

come

as

with

a

result

and

our

study of monetary controls. While
there

other problems
monetary policy, the

are

related

many

to

discussed here

ones

to

seem

me

to

be central to the controversy and
to

serious questions for

pose

that

claims to the public which are

product of their function of chan¬

erations

of

as

interesting to note that, since sav¬
ing out of income when held in

payment

banks

a

the

monetary authorities.

intermediaries

the

pecu¬

Financial

of

Intermediaries
One of the recent controversies
connected

with

monetary

policy

has had to do with the effects

the

of

rapid growth of financial in¬

termediaries

other

cial

banks.

Some

that

the presence of such a

than

commer¬

have

sector of the financial

conclusion

argued

large

system out¬

-

that

effective

to

serve

such

believe

the

line

suggested above is

of

financial

banks

and

nancial

mercial
This

more

in

clearly

recent

com¬
years.

disclosed for

the

period from 1900 to 1952 by Ray¬
Goldsmith's

mond

studies.2

That

in

receives

deposit from a
out nearly all of the $100.
recipient of the loan or the

by Dr. Smith before the
University
American
Assembly,
N.

C.

1 The

pioneering article on this sub¬
J. G. Gurley and E. S. Shaw,
"Financial Aspects of Economic
Develop¬
is

ment," American Economic Review, XLV,
September, 1955, pp. 515-38.
2 R.

diaries
1900

W.
in

Goldsmith,
the

Financial Interme¬

American

(Princeton:

Economy Since
University

Princeton

power to

Digitized for 1958).
Press, FRASER


There

rent

date

an

we

tightens and
infla¬
tionary periods, those intermedi¬
aries^—such as savings banks and
savings and loan associations—•
during

substitutes

are

money, may raise
the interest rates or other incen¬
tives they offer to holders of their
claims.
To the extent that this

induces members of the public to
substitute intermediary claims for
their
the

holdings of demand deposits,
supply of credit is expanded,

since

reserve
requirements
intermediary
claims

such
much

smaller

than

savings.

ess

reserve

income-generating

expen¬

ditures.
'

•

if

,•

'

"

'' ''

Importance
How

Behavior

stabilizing

are these
elements in the

Sales

of

government securities
portfolios of intermedi¬
aries have not been a very im¬
portant source of funds in the last

from

the

years

have

been

influence.

and
a

do not appear

serious

to
destabilizing

Intermediaries

use

the pro¬

have

chased by holders of idle cash bal¬
ances and the proceeds of the new
loans

are

spent

on

current

been net sellers of government se¬

curities

in. most

but since
consistently
than $1 billion a year.
The relatively light importance of

1953

the

been

years

less

sales

have

Continued

out*

on

page

an

offer

to

sell

nor a

solicitation of an offer to buy these securities.

$46,971,000

Pan American World

Airways, Inc.

4Vs% Convertible Subordinated Debentures
Due

the

process

fashion until
of

credit

continue

can

If the

in

are

the Prospectus. The
on

terms

and conditions

subscription offer will expire

August 12, 1959. The several Underwriters

suant to

this

being offered by the Company to holders of its Capital

subscription, subject to the

the terms and conditions

set

may

at 3:30

set

forth in

P.M., E.D.S.T.,

offer Debentures

pur¬

forth in the Prospectus.

large amount
savings and loan

a

very

(and

has

August 1, 1979

Convertible into Capital Stock at $30 per Share

Stock for

been

How¬

created.

to

way

is not

view

a

Subscription Price 100%

the
as¬

sociations.
I believe that commercial banks

really

do

have

unique

a

ability

to expand credit for a reason that

is

simple

but

often

What is

truly unique about

mercial

banks

which

the

is

the

with

by

one

are

banking system.

difference

what

,

com¬

speed
lost

reserves

the

Copies of the Prospectus may be obtained in any State only from such of the several Under¬
writers including the undersigned, as may lawfully offer these securities in such State.

overlooked.

Lehman Brothers

re¬

3 These

calculations

eographed
the/

study

tables
Federal

and

Governors.

prepared
Reserve

obtained
The

based

are

Hornblower & Weeks

It

dispo¬

from

in

on

Blyth <Sl Co.,Inc. The First Boston Corporation Eastman Dillon,Union Securities & Co*

connection

the

Board

of

inter¬

mediaries," as used above, includes mu¬
tual
savings
banks, savings
and
loan
associations,
credit
unions,
insurance
companies
istered

(life

pension

insurance

and

nonlife),

and

activities

fraternal

plans,
orders,

security and commodity exchange brokers
and dealers, finance
companies, open-end
investment

companies,

possessions, and agencies
in

the

United

States.

Goldman, Sachs & Co.

banks

Harriman Ripley & Co*
Incorporated

Kidder, Peabody &. Co.
\

Lazard Freres &. Co.

Incorporated

Smith, Barney &l Co.

Merrill Lynch, Pierce, Fenner &. Smith
Incorporated

Stone &. Webster Securities Corporation

self-admin¬

retirement

of

Glore, Forgan &. Co.

.flow-of-funds

"financial

term

mim¬

in

U.

S.

of foreign banks

White, Weld & Co.
July 30, 1959.

de¬
be¬

havior of financial intermediaries?

few

liqui¬

may

of This

important

—

This announcement is neither

The Debentures

re¬

is to activate idle balances to-

finance

a

ment securities—and

rather than fractional
requirements.
However, this is
unimportant institutional detail which
shall overlook.

person

on
are

quirements applicable to demand
deposits. The effect of this proc¬

modest

portion of their holdings of
securities
particularly govern¬

subject to 100%

the money then
deposits the proceeds in a sav¬
ings and loan association, another
round of lending is possible, and

close

for

to bestow
a

two

Intermediaries

rise

which issue claims that

contribute to instability.

are

(1)

reserve

to whom he pays

with

address

Durham,

serve

credit

rates

from

the end of 1952 to the end of 1957,

ject

However, it
modified a little, and

intermediaries

upon

complicate things a little,
that, in effect, currency

$100 cash
customer can lend

no

Duke

fact

a

makes

♦An

furore about finan¬

the modifications

savings and loan associa¬

a

which

commercial

16.7%

is

drains

the

to

claims in very much the same way
as commercial banks do.
For ex¬

to

by

4 Cash

due

in multiple expansion of their

gage

stored

increased

.

intermediaries.

needs to be

qualifications
shortly, I believe

;

When

en¬

principle create credit and

fi¬

by. the fact that total

banks

recent

;'

story, I
very little

can

shown

of

i

the whole

(2)

interest

can

savings and loan associations

bank when it makes loans

assets

were

seems

likely,

very

conclu¬

this disparity in growth rates has
continued in the last few years is

nancial

this

are

portion of such operations

The offer is made only by the Prospectus.

and

easily result in incorrect

have been

rapidly than

banks

is

payment

the loan proceeds. An inflationary
effect equal to a substantial pro¬

mone¬

operations of savings and loan

doubt that fi¬

no

intermediaries

growing

saving, whereas,

certain
up

income

believe there would be

the deposit of funds in a financial

sions about policy. It is true that
financial intermediaries, such as

realistic

be

If

nonbank

intermediaries

very

reduced
the
tradi¬

tional monetary controls.1
can

to

taken

the

curity sales results in a reduction
expenditures somewhere in the
economy which is as large as the
new expenditures financed out of
in

reasoning

I submit that this

seriously
of

when

to the

be

an

spending

made, commercial banks

cial

to

of

amount

not intermediaries!

over-simplification
which
exag¬
gerates the similarities between
commercial

ever,

has

lost
was

there is absolutely
presumption that he has per¬

subject

deposits

merely restores to the bank¬
ing system the reserves that were

no

act of

and

e m

funds available to

and

by

mercial bank,
an

d

more

equivalent

financial
intermediaries, to the extent that
it occurs, follows an entirely dif¬
ferent pattern and has an entirely
different significance.
When a
person deposits a check in a com¬

formed

fact, it can be said that there is an
inflationary effect unless the rise
in interest rates caused by the se¬

considerable

a

shares)

There

expansion

of

no

the capital market than would

Credit

intermediaries.

authority

effectiveness

a

of the controls of the Federal Re¬

side the reach of Federal Reserve

the

Credit

form

makes

serves as an._

tary policy requires the extension

tion
Problem

represent

may

important "leakage" in mon¬
etary controls. This line of rea¬
soning can easily lead one to the

very

ample,
The

Expand

those here indicated,

are

ceeds for current lending.
To the
extent that the securities are pur¬

banking system.
the operations of such

In this way,

I

to

of

by¬

a

important ways in
which
the
operations of inter¬
mediaries can help to supply funds
to finance income-generating ex¬
penditures other than out of cur¬

ficials and the public.

few

merely

to the commercial

fully lived
to the expec t a t i o n s

its

in credit

engage

intermediary, such as a savings
close substitutes for money—
and loan association, does involve
such as time deposits, savings and
such a presumption.
loan shares, etc.
Not being sub¬
Consequently, to the extent that
ject to the controls of the Federal
something called credit expansion
Reserve System, it is said, these
takes place through the operation
institutions may be able to go on
of
financial
intermediaries,
its
expanding credit or even increase time
path is likely to be entirely
the tempo of their credit-creating
different from similar expansion
activities when the Federal Re¬
by commercial banks. As a first
serve
applies restrictive controls

not

that

fractional

to

to

institu¬

the

these institutions is

rea¬

role

very

up

astic

much like commercial banks,

very

sue

to"

that it has

say

really

are

they
cannot
create
means of payment as can commer¬
cial banks, but some of them is¬

mon¬

fair

period.3

same

argued that finan¬

since, being subject

true

believe

is

been

intermediaries,

requirements
(largely
self-imposed), they can engage in
multiple credit expansion.
It is

policy,

I

has

It

•

cial

said

financial

Moreover, if at each
deposit of funds in an
intermediary results from an act
of saving, "credit expansion"
by

ability to expand credit.

all

reserve

consider-'

able experi¬
ence
with
flexible

by 58.8% during the

be

in
such

can

expansion.
round

payments

our

mechanism, and it is for this

financial intermediaries increased

Introduction

deposited

financial intermediaries really are
intermediaries. In contrast, it is

son

of

assets

saved)

intermediaries,

neling this saving into investment.
Thus, to the extent that their op¬

feature

put, the intermediary

agent to facilitate dishoarding, and
the
process
is
inflationary.
In

additional

Nonbank Intermediaries

combined

ex¬

built-in

(3)

income-generating expenditures to central
banking measures; (4) chides current quantity of theory
views; (5) attributes cost-push inflation to excessive demand,
and (6) doubts control of credit
availability would work.
the

least, I believe
only to the

banking system
within a few days of the time they
are
lost
through lending is a

sensitivity of

while

at

that

say

pansion results in the creation of

fi¬

to the commercial

financial system's excessive resiliency and the lack

our

the savings

nonbank

cial bank promptly after receipt.*
That is, the restoration of reserves

tary

details

a

are normally re¬
banking system quite
promptly and mechanically due to
tfe* virtually universal practice of
depositing a check in a commer¬

subject. The auther (1) finds it is too early to dismiss

discretionary monetary policy; (2) advises combining
•

use

can

tent that the process of credit ex¬

stored to the

.rebutted by Dr. Smith who also points
up the lack of evidence
on

it and
claim in

a

the

making the loan

examined and

are

buy

spend

we

intermediary or to buy a
primary security, or hold it in the
form of an idle demand
deposit,

policy's effectiveness

instrument of economic stabilization

an

to

approximation

nancial

University of Michigan and Harvard University

as

decides

money, save

In
.

made of the funds paid
the borrower—wnether the

is

out by

\

13

Dean Witter &. Co.

22

The Commercial and Financial Chronicle
14

.

.

Thursday, July 30, 1959

.

(428)

imported

ties must of necessity be

Will Water Conversion Plants

available water we
have just been talking about is
that it is wet. A considerable por¬
tion of the ground water in our
southeastern coastal plain and in
some of our Midwestern States is

Secretary of the Interior

be successfully tackled by
atomic power, Mr. Seaton declares, in announcing the first
of five plants to use such power in water conversion plants.
In analyzing the co'sts involved, the Secretary asks that the
cost of developing new and additional sources of supply be
of

Problems

water

supply

may

Somehow

the

last.

each

other

or

with

which

time

of

you

Some

American

the

asked what in the world Los An¬

Waterworks

geles would do with all the water

Association
I

and

he

the

as

don't

vita 11 y

are

to

today

industry

In essence,

Fred

may

Seaton

A.

to

question, but it can easily become
just that in a relatively few years
if
we
do
not
continue to
plan
with

ahead

vigor

The facts

as

for

new

York

and

prudence.

know them in¬

we

also at

certain
asset

of a

growth.

is

stream

community

a

and

a

not

first, let
has

Interior

feed

take

us

Presently,
lion

about 240 bil¬
water a day.
If

we use

gallons

of

trends
continue, in 20 years that con¬
sumptive figure will be between

population

water-use

and

•An address by Mr. Seaton before
Water Works Association,

American

Francisco,

Calif.,

July

the
San

:

water

All

devised

to

compare

York

New

have

Only

there an
quantity.

the West is
problem of

in

will

necessity

When

we

present

water

reaction

is that

the

i

remaining two-thirds of

nation

annual

precipitation

areas, permanent
supplies of water in large quanti¬

OF

One

day,

than many

ish

though, and sooner
people think, we shall

inland

water

inexhaustible

general

costs

also

and

and

oceans

the

to

of

seas

To

still

are

from

additional

meet

the

compare

obtained

Getting the Salt Out

Getting

the

the

water, to be

Company

PITTSBURGH, PENNSYLVANIA
of

June

30,

1958 and June 30,

have

turies.

Today

our

ter

■&-2,942,353.81

$ 4,504,559.46

4,675,103.23

Cash and Due from Banks

June 30, 1959

4,958,423.23

Bonds

Other Bonds and Securities

2,559,990.14

Bank

21,129,668.65

1,967,606.71

2,362,598.44

380,341.72

456,010.14

72,737.76

86,522.16

$32,801,841.05

Mortgages Owned

2,940,823.57

20,203,707.68

Loans

$36,438,605.65

Building and Fixtures

Other Assets

....

r

LIABILITIES

June 30, 1959

$13,545,663.83
Time
14,623,979.14
Official Checks Outstanding

$16,090,396.14

Other Liabilities

$31,693,444.78

284,238.14

329,831.51

""64,796.99

45,917.04

1,273,216.00

936,395.40

500,000.00

*..;

.

not

cen¬

of

the

"Nautilus,"
drink

wa¬

heat from their.*

by

In

like

fact,

large

scale

enough

at

cost

a

substitute

to

water

from

for

cheap

or

aug¬

conventional

earned

Capital:

supplies of natural fresh
surely become more
expensive in the years ahead and

esti¬
rates,

Stock

Surplus

2,000,000.00

Undivided Profits

2,000,000.00

509,946.95

933,016.92

$32,801,841.05

the

supply

and

available
tend

more

needed.

$36,438,605.65

line

will

be

to

Our hope

water

down.

In

less

than

is that just

likely

verted

sea

expensive

BROOKLINE

localities
liable

Savings and Trust
Two Convenient Locations
820

426

Brookline

Boulevard

McNeilly Road

PITTSBURGH

at

26,

Sussex
PA.

Member of Federal Deposit Insurance Corporation




now under¬
inspection of the
proposed locations, and then\

personal

a

seven

their final

make

will

dation to me.

Chairman,
chemical en¬

and

mechanical

a

Sheppard T.

Baltimore,

of

Powell

recommen¬

-

Board members are

too

con¬

high.

Vice-Presi¬
of the
Indianapolis Water Co., and the
distinguished President of your

Finch of Indianapolis,

engineer

chief

and

dent

Association.

million-gallon-per-

second

This

day demonstration

plant will em¬

ploy the multistage flash distilla¬
tion method.
For this plant we

Atomic Energy
low-tem-

the

asking

are

Commission to supply a

cost

natural

of

water

sources

sources
of
supply
growing demands.

low

which

cities

water

rates

enjoy

be in for a

may

jolt when they discover the cost
of
developing
and
impounding
additional

supplies.

In

most

in¬

stances the most readily available
most easily developed source
supply has already been pre¬

or

of

at u r e,

reactor

a

as

of

sentatives

to

Be

now

p e r

third

A

^conversion

process,

electrodialysis, will
be demon¬
strated in a plant to be located in
the Northern Great Plains or arid
Southwest area.
When its West
studies

Coast

are

board

siteL selection
to

complete, the
will proceed

study and make

recommenda¬

location.
prophesy
day conversion plants
coasts, as well as in

tions on this next
It is

empted.

New

that

no

' one

idle dream to

along

our

in the

Department of the Interior,
United States of America
future.
Many things will

sources,

the

the

able

Miller, is

program

make

is

reaching

rapidly
where

level

it

will

be

a

price

economi¬

to

the

its

and

will

thereby

two.

be

the

Saline
of

the

Under

Public

proved

by

Law

President

to

that

future

our

invest¬ portant of these.
"
• — • •
I congratulate the Association and
On that basis, the cost of individuals on the part they,are
removing

capital

dures.

converted water would be slashed

some

only

re¬

pilot plant results prove out in the

Water

operations of our much larger ex¬

playing in this great service func¬
for the people of this nation.

tion

Interior,
of

Dr.

come

85-883,

true.
ap¬

Eisenhower

last Septembr, provision was made

for the establishment of five dem¬

Joins

Smith, Barney Staff

BOSTON, Mass. — Eliot J. Rob¬
inson
has
joined
the staff of
Smith, Barney &

of

Co., 140 Federal

Street.
Announces First
It

is

my

Sea Water Plant

pleasure

to

engaged in a> here that the first of the

prediction

whether
up

ment from cost estimating proce¬

after.; by 50%, making fresh water avail¬
one
able from the sea at about 50 cents

In

direction
now

live

will

which will, I hope, soon

my

determine

with natural water sup¬
plies, consider financing the con¬
areas,

perimental plants.
of

Department
L.

curves

sa¬

come

community

will

Office

under
A.

To illustrate how converted wa¬
ter

cross, and then con-^ per thousand gallons, providing of
water will be the less
course
that
our
laboratory and

of
it

will

as

source.

The

the

COMPANY

fresh

to
one

another these cost

day

*

take

will

board

selection

than

t

members of the special site

The

expectations
for it, and a plentiful supply of
struction of a conversion plant by water in the places where it is
more1, a
general obligation bond issue, needed is one of the most im¬

will

surely, the cost of converting

Common

Cleand

Camp Pendleton.

cally competitive, at least in some

New

500,000.00

♦..

new.

for

crews

reactors!

water

15,603,048.64 $28,169,642.97

Reserve for interest collected but

the

sea

sources?

June 30, 1958

Demand

Lompoc, Ventura

Diego,

San

are

County, Orange County, San
mente,
Monterey
County,

—

ment

Deposits:

by California cities

selected for further
consideration for the West Coast
conversion installation.
The sites
been

perhaps lo¬
many
inland areas,^ will be as
Julius
Caesar
and
the
ancient cated further from the point of
common as the familiar standpipe.
Phoenicians, people generally need, will be far more costly to
They will be there to provide
have known how to turn sea water develop than were former proj¬
millions of gallons
of excellent
into fresh
just distill it. The ects. All in all, we are forced to
quality water daily to meet and
basic science is as old as recorded reach the unhappy conclusion that
satisfy needs for this indispens¬
history.
But
what
we're
still the cost of water developed from
able product.
searching for is the answer to the natural sources of
supply will
The
American
Water
Works
question: how do you do this on constantly increase.
Association is dedicated, as are we
a

.

this

"Seawolf"

and

atomic

June 30, 1958

is nothing

done

converted

Many
of

out

submarines

"Skate"

1959

salts

sure,

Sailors

atomic

ASSETS'

U. S. Government

■

tions proposed

.have

world.

CONDITION

Brookline Savings and Trust
as

brine

of

also .my

is

gineer with over 35 years of ex¬
perience as a consultant on water
problems; Dr. Wilburn C. SchroeBut
comparing conversion costs
der, University of Maryland Pro¬
with water rates is like comparing
fessor of chemical engineering and
apples and oranges simply be¬
a
consultant on engineering and
cause
both are round.
There are
water
problems;
and Lewis S.
almost as

the

What Rates May

STATEMENT
of

potential

..•>

pleasure to an¬
nounced that seven of the 18 loca¬
It

from the sale of water.

less than in the West.

economic

the

utilization.

This is

these

compare

with

chemical plant

all the product wa¬
ter of the plant.
Dow Chemical
Co.
will
also
utilize
the brine
effluent and conduct research on

plant.
mates

■

will purchase

at the conversion

or

■

The city and the

convert

less

for

thousand gallons.

per

version

immediate

plant
fresh

to

•"well-head,"

it!

get

the

thus eliminating
of constructing a

steam,

boiler.

the cost of converted water at the

emergency.

an

means

water

$1

mountain water
if it has to go 150 miles to

even

a

which

will

City

an

demonstration
sea

permitted the use of Hud¬

of

the

COMPARATIVE

will

Chemical

Dow

water.
us

the cedure, we estimate the one mil¬
oi; lion gallons per day Gulf Coast

is
use

on

River water in

son

.

.

water intake
chemical plant

low-pressure atomic
heat source. Repre¬
the Atomic Energy
varies all the way from a high of have
to follow
a
new
trail for with the cost of converting sea
Commission and the Department
30 inches to desert areas with less
our
water
supply, at least for water to fresh, we must look not
of the Interior began meeting this
than 10.
Water costs tend to go certain areas. That trail leads both alone at
present rates, but rather week to work out the specifica¬
up as available supplies go down. to huge known supplies of brack¬ at the cost of developing new and
tions for the combination plant.
In the more arid
In

the

1959.

14,

,

Chemical

Dow

sea

the

sell

a

the quantity problem
fluence
such
a
conclusion.
We
Only about one-third
of the is complicated by variations in
all know the population of the
United States has an average an¬ streamflow, the need for regula¬
many ways to compute
United States has now passed 177
water rates as there are municipal
million.
What sometimes escapes nual precipitation in excess of 30 tion, too little knowledge of un¬
inches—the area east of and in¬
derground flow, and evaporation or private water companies. Many
our notice is that barring the ca¬
water rates are based on develop¬
losses.
In the East, the problem
tastrophe of a nuclear war or cluding the Upper Mississippi
River drainage basin and the area is primarily one of treatment of ment and construction costs of 25
some
unprecedented natural ca¬
surface
east of the lower Mississippi River
waters, to
make
them or more years ago.
Some water
lamity, there will be 275 million
were
but not including those streams usable, and the more effective use utilities
financed, not by
of us by 1980—only a generation
of ground-water reservoirs. Regu¬ water revenues, but by
general
away.
By the turn into the next tributary to it. Here there is an
lation is of course also required
obligation bond issues. In other
century, only 40 years away, we ample quantity of water for pres¬
humid
ent and foreseeable needs, and it in
regions but relatively words, property taxes were used
will
have
doubled
our
present
can
be
obtained
at
reasonable speaking, such requirements are to foot the bill instead of profits
population to 350 million souls.
.

A

serving

the cost of producing fresh water

In that area,

•

because

area

Co.
line
will
provide the conversion plant with
existing

plant.

.

City.
Yet so great
reaction to the

which

hazard?

cost.

Gulf

the

in

an

look at
procedure the Department of

the

Yorkers that

the water problem is

flowing

a

to

in

Cost Analysis
But

the part of New
that city even dis¬
mantled
expensive: waterworks,
without having ever used them,
this

can't

reasonable cost, make

a

about the loca¬

installations

two

30 cities and

over

ties

signifi¬

And not the least

aesthetic

come

First, how do we supply a
growing population and a dynamic
economy with increasing amounts
of water of adequate quality at a
reasonable cost? Second, how do
we,

from

moment.

and

turbid

are

.

better way of ex¬

or

—

for

by different processes. Briefly, we
cant cause of poor water quality
include
the following items,
at
is man-made pollution.
For any today's prices, in computing water
one or a combination of these rea¬
conversion costs:
all capital in¬
sons there may be a local water
vestment, including the cost of
problem even in. areas where pre¬ land, equipment, construction, and
cipitation is ample.
engineering; interest; fuel (at 25
America's
water supply prob¬ cents per one million B.t.u.); ma¬
terials-and supplies; reservoir for
lem,
in addition to having its
technical aspects, has its psycho¬ 10 days of product water storage;
logical ones as well. Let me cite service facilities, buildings, and
maintenance materials; operating
an example. Admittedly, the Hud¬
son
River above the tidal range labor;
taxes;: arid
amortization
would provide a
cheap, almost based on 20-year plant life.
unlimited source of water for New
Using this comprehensive pro¬

this:

domestic

open

no

demands for water

the

new

one

problem

you

"If you
won't need it."

the loss than can
community which

any

meet

nation's

the

it,

get

pressing

Whe t her

number

to have replied:

know of

I

concerned, is
no
exception.
water is

going to bring down from
River, Mulholland is

Owens

reported

Interior

the

was

the

of

Secretary

be

day

of the Los
system.
When

water

streams

muddy.

superintendent

Angeles

these

by

undesirable

rediscover —provided we have it available.
I am reminded of a remark by
problems which plagued the
The problem of water sup¬ the late William Mulholland, long¬

ply

to say

more

plants

and two

tions and methods to be employed

salty that, untreated, they are
sources
of
water.

so

billion gallons a

600

and

500

new

have

Some of our streams are

brackish.

to

seems

conversion

"

also considered

generation

the

of

some

SEATON*

HON. FRED A.

be said of

Now the best that can

communi¬
it
The
brackish.
first
of
the
sea
offers several features not avail¬
water plants is to be located on able at other locations.
The con¬
the Gulf Coast and
the second version plant is to be located two
here on the West Coast.
I shall miles from the coast adjacent to
onstration

three for sea water

:v

Unsuitable Water

End Onr Water Problem?
By

high yield.

from areas of

plants,

using

the

long

announce
sea

Now With Keller

water

("Special to The Financial

tube-ver¬

multiple effect distillation
process
to produce one million
gallons of fresh water a day, will
be. located at Freeport, Texas.
The Freeport site was selected

Chronicle)

BOSTON, Mass.—Albert

tical

is

now

Street.
vestors
New

Nutile,

31 State
He was formerly with In¬
Planning Corporation of

with Keller & Co.,

England.

Volume

190

Number 5868

.

.

The Commercial and Financial Chronicle

.

(427)

sylvania

Bankers

Association,

1953-1954, and also

News About Banks

was

of

Committee

the

Executive

*

BRANCHES

NEW

Bankers

and

REVISED

CAPITALIZATIONS

Farmers

National

rata, Pa.,"

000,

The

of

Bank

of

$125,-

of

Eugene
dent

Stetson,

and

former

Chairman

anty

Trust

New

York, died at

in

Guar-

funds.

Company, New

July 17. He

on

Presi-

the

of

the

was

York,
of

77

Director

a

of

age

the Morgan Guaranty Trust Company, New York, New York.
*

*

*

The appointments of

Schucktanz,

George M.

Andrew

Gregor and

John

J.

C.

Mac-

Moriarty

as

Assistant

Secretaries of Manufacturers Trust Company, New
York,
were

announced

by
Horace
C
Flanigan, Chairman of the Board
Mr. Schucktanz joined the Bank
In
in

1Q9Q
1929

anH
and

iQ4«
1948

in

to

the

Central

r,f

the

mnc

was

assigned

Tntornatinnai

European Divisionn/

nLwit

Banking De-

Mr

13

1

Mr. MacGregor joined the Bank

•

MacGregor

in

is

Department

the
4d

at

Per-

Beaver

m

ii.r-ori

Tr

•

1

■

T

r\rraa

n

Talbot

H.

c+

+

LeBlanc,

has

been

appointed a member of the Advisory
Board
of
the
Flatbush
Office,
Mr.
Flanigan
also
announced.
*

*

B.

Madison

Assistant

Secretaries of Manufacturers Trust

Company,
nounced

New

by

York^ were

Horace

C.

Mr

Maine>
of' the

well

as

Canal

Hannings joined the bank

trollers

department.

1930

Curry

joined

later

and

Assistant
West

signed

creased

its

shares

the

bank

57th

s

Street

capital

1946.

Ave.

plertion
election

°*

.

Bank

Corn

Exchange

Fngpnin
TxUgenio

Men
ivien-

of

Chemical

Bank,

New

York

announced

July 24 by Harold
Helm, Chairman.
*

Bankers

«

S.

Company,

Company,

major office

a

,

D.

of

New

May of this

and

year

president
and

*

Chairman.

tween

the

of

48th

Park

and

on

Bank's

Avenue

the

the

of

...

chairman

was

of

.

Divi-

Company of Chicago, III.

of
Trust

named

was

a

Pa.,

Mellon

National

Company,

Pitts-

vice-Chairman of the bank.

1939,
the

where

Bank in 1921,

Rank

President

<?inre

^^n°'fa£°]^"wa^ChMrman
Washington
vv-asningion,
D

he

was

Trust

the

James

Hill,

Jr.

to

New
of

Board

ot

its

D
u.

C
u..,

a

affiliated

1929

in

Rprlin

and

Vice-

frnm

Capps was named
Vice-President of the
Northern
Co., Chicago, 111.
.

Committee

Activities from

TriI,

»

he

to

moved

the

*

loan

bank's

Pitt

rn

and

Bank and Triud Co-

Tuscaloosa,

np.

0klahoma)

as

of July 15>

*

sl!

Sapulpa,

*

*

stock

mon

Alabama,
of

The Second National Bank of
Company, Canton, Ohio, absorbed Patotsvile, Paintsville, Kentucky, "The City National Bank of TusFarmers State Bank, Wilmot, Ohio, announced a change of title to the
caloosa" with capital stock o£
as Gf juiy i.
Citizens National Bank of Paints- $1,650,000, divided into 330,000
*

Trust

ville, effective July 15.

*

shares

The American Fletcher National
Bank
and
Trust
Company, Indianapolis, Ind., and the Fidelity

dent of the American Bankers As-

Bank

sociation

and

dianapolis,

Trust

Ind.,

Company,
will

*

to

form the largest bank in the state,
of July 31.

*

par

of

common

U. S.

for

1946-1947,

died

'*

on

July 25, in Clarksville, Tenn.,
Mr. Bailey was Chairman of the
Board of the First National Bank

\

2,942,354

discounts

4,675,103

21,129,669

Undivided profits—

933,017

&

*
board

*
of

20,203,708-

509,947

*
directors

the

of

Central Trust Capital Bank, Harrl
"r5' ?,a" ? aJ4)ecial meeting,
^ c,
Charles H. Graff, PresU"
,

and

that

will

continue

capacity.
new
President,

President

of

the

Trust

^
.

•

,

m

^
m

•

r<u

r

President of The New York

Company,
nounced

which

New

the

was

York,

Trust

have

approved

at

recent

meeting of the Board of Directors.
Calvin

C. Bartels,

has been ap-

pointed Assistant Trust Officer in
the

Personal

V

Trust

*

Merger

of

*■

the

Division.
*

Ilion

National

Bank and Trust Company of Ilion,
N.
Y.
into
the Marine
Midland
Trust

Company

Valley, Utica,

of

the

Mohawk

N. Y. has been pro-

posed, subject to the vote of the
stockholders, Aug. 21. The new institution

would

have

$125,000,000




merger

Company

of

and

the Capital Bank and Trust ComKittanning,
Harrisburg
in

1938

tral
was

a

was
Trust

Pany» is a native of
Pa
Before coming t0

an-

following promotion

serve

who

Central

Company prior to the
Central

to

President

as

Trust

the

of

company,

Cen-

Graff

Mr.

President of the Union Bank

and
Pa

U.

Trust

from

>

m0ving
and his

while

Companyi
1935

to

to

Bethlehem,

i938.,

Prior

to

Bethlehem, Mr. Graff

family lived in Harrisburg

he

served

First

*

RESOURCES
Cash

and

S.

due

from

Government

Other

Bonds

Loans

and

.

Banks...

$13,774,708.15

Securities

39,593,861.75'

Securities.

and

13,409,530.48

Discounts..

Banking House,
Equipment

Deputy

Other

Real

Banking, Commonwealth of Pennsylvania, and First
Deputy
and
Acting
Insurance
Commissioner of Pennsylvania.

Other

Furniture

90,999,721.27
&

3,131,287.42

Assets

Secretary

of

*

John

the

C.

Central

age

He

of

was

*

Trust

Pa.,

TOTAL

Estate

17,236.19
177,080.63

RESOURCES....

$161,103,425.94

*

Warner,

Harrisburg,
the

as

President
Capital

died

July

of'

21

at

GMENWICM

STAMFORD
OlD

DARIEN

GREENWICH

NORWAtK

NOROTON
MCMei»

the Penn-'

COUNTY TRUST

COMPAWY

RIVERSIDE

55.

President of

FAIRFIELD

Bank,

N£W

HEIGHTS

reorRAi

CANAAN

SO.

diposit

WflTON

NORWALK

insubancc

SO.

RIDGEFIIID
WIITON

corporation

;

,

VlSALIA, Calif. — Robert M.
Lawson is now with Dean Witter
& Co., 505 West Main Street.

Govt, security

Loans

the

Joins Dean Witter

trust

4,958,423

of

(Special to The Financial Chronicle)

28,169,643

holdings

stock

value of $5.00 each.

C. W. Bailey, 75, who was Presi-

In-

merge

*

June 30,*58

4,504,559

The

.

Alabama,
(Charter
Nq
61?3) with common stock of
$750,000. The merger was effected
under the charter and title of

from

banks

corn-

into

™

of

31,693,445

Cash and due

with

$160,000,

»t-h

.

Total resources—- $36,438,606 $32,801,841

Deposits

At

*

*

savings

1958

formally open for business Aug. 3.
*
.*. *
A merger certificate was issued
' ..P.'
approving and
mak'ng. effective, as of the close

office.
*

brookline

A.'s

Special

nf

tellers

department

on

*

department,
and
the
following
year,
he was transferred to the
installment

Farm

B.

Trust Co. of Georgia, At-

*

Tuscaloosa,

.

tin> D- c- Clearing House Com

A.

1953 through

*

1116 American National Bank °f
Sapulpa> Oklahoma, changed its
vr„t:A„0i

of

Clearing
Clearing

the

the

1 qrr

T.

.

of

represented Xnta^Te^ox "SaL?f'wffl
Atlanta s
Lienox
bquare
wijlb

1938.

Alfred

Farm Land
1954,

of

member

a

member

Advisory

■.»»■«

S^CClearina^Hou^eCom...

as

was

employed

was

Directors.

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

several

through

be-

election

1929-1939,

for

on

clearing house department.

1945

bank

Company,

announces

as

Credit Committee in 1954-1955. He

elected Second

in 194L He

Cnntinpntal

to

President in 1955.
Trust
He was a Past President of the
the
ine

became

and

with Continental and Commercial

with

as

Mr. Magill came to Mellon Bank

Roberts

Vice-President in

Eclated

National

'*

according to an anby Frank R. Denton,

nouncement

Mr.

C., died July 27

peopies-Merchants

Philadelphia,

Pa.,

charge of the International Bank-

Department nf Continental
Presi- Illinois National Bank and Trust
_

1920, became Assistant Cashier in
1929, Assistant Vice-President in

the

*

Lorch

and

The

Irving

named

served

..

Artnur w. Roberts will retire 0f the Committee
as Vice-President in prices from 1947

A

...

.

__

•
*

office

Bank

in

York,

in

1920.

Tennessee

49th

Board.

First

in

was

He

SI®11* *° succeed the late John C.
Streets, it Warner, Jr. In adc.ition to servwas
announced
July
23,
by
.as President, Mr. Graff is
William H. Moore.
Chairman of Chairman
of the Board of the
side

west

the

Clarksville

President

August 7

_

He Ri^as bee"
had
The

.

The

York, New York, plans the establishment of

1U

re-

William H. Magill has been appointed Assistant Manager of the

*

Trust

and

June 30,'59

Caracas, Venezuela, to
Advisory .Board
on
Inter¬
Business

joined

Bank

became

company, Pittsburgh, pa.

of

national

Co

$428,000,000

♦

nf
01

of

Trust

^J2'000,000 witlr the
*

office.
*

...

24,000 shares,

1939, Vice-President in 1940, Senior Vice-President in 1948, and

ilartl:ord Bank.

the

*

The
ine

stock

(Number

Connecticut

??ur*es

Madison joined the bank in
He is assigned to the bank's

Lexington

Bailey

1904,

Bankers Association in

"

-

combine

jn

as-

outstanding,
value, $25.)

T

Trust C®-'Har^®rd' Con^' .as aP"
Droved by stockholders. This will
proved bv stockholders This will

as

is

Mr.

National

The

.

shares
par

of

outstanding—94,500 shares,

Lnto

of

_

Mr.

Bank

Emerge

jn

He

Tenn.

of

a
®r.,
•
.sse .e'
dent of the National Bank

Thompsonville

in

office.

H.

National

$945,000.

.

bank

office.

stock

Vice-President

common

$735,000 to

appointed
Manager

was

Branch

Side

to

the

the

He relinquished the presidency in
will

resources

*

.

of

Clarksville,

Board

with

"<
sion of the American Bankers
The Columbus National Bank of Association, and President of The
Providence' Rhode Islafid> in- Riggs National Bank, Washington,

in

.

Mr.

was

as

\

™

burgh,

1939 and latex" was appointed
Operational Assistant in the comp-

the

capital

Portland. Maine.
Portland, Maine,

m

doza

*

Member of Investment Committee,;
Poland Savings Bank, Portland,

an- pitt

Flanigan,

Chairman of the Board.

the

*

Director of the Broad Street Trust

as

July

Ephrata,

and

Co.,

i

Arthur

*

appointments of William J.
Hannings, Joseph W. Curry and

of

Board

as

Trust

limit,of $2,500,000.

stock

11 under the title of The Farmers,
Bank

serve

Clarksville, Tenn.,

Southern

Committee.

McKinney, President of
will1

of

Merchants National Bank years
Association's agri$185,000 divided & Trust Company of
Indianapolis cultural committee;
;
H. Frederick Hagemann, Jr.,.' into 9,250 shares of common
stock, Indiana,
increased
its
commonFor tw0 years> Mr- Bailey was
President of the Rockland-Atlas par value of $20 each.
'
capital stock from $3 550 250 to chairman of the Agricultural CorxiNational Bank of Boston, Mass., •"
*
*
$3 905 270 by a stock dividend ef- mission of the American Bankers
announced July 23 the appointThe
Second National Bank
of' fective July 14 Amount of' in- Association. He was elected Vicement of Winthrop B. Walker of
Cumberland, Maryland, increased crease is $355,020.
(Number of President of the A. B. A. at its
Portland, Me., as Executive Vice- its common capital stock by a shares outstanding—390,527 shares convention in September 1945, and
President, and his election as a stock dividend effective July
15, par value $10)
became President the following
'Director of the Bank.
from $500,000 to $600,000. Amount
*
*
' *
year.. He served the Agricultural
Mr. Walker is a Trustee and of increase, $100,000. (Number of
A
D
,
...
Commission further as a member

^

The

effective

National

*

Manufacentering the

in-a

h

Moriarty is assigned to the
Comptrollers
Department,
Head

Albert

capital

par value $10.)

i

Mr.

an

in

Executive Training Pro-

gram

•

$12,000,000

Manager in 1957.
t0 stock, effective aT ,sale 17, ,new
*7 PlV\by July
°£ from
Manager inT^

Assistant
Assistant
sonnel

assets,

common

Executive

E.

will

Chairman

amount to
$500,000,000,
capital
funds of $30,000,000 and a lending

National

Bank, Lincoln, Pa.,

$60,000, became

the

Presi-

Fletcher
and

Chairman. C
T^e combined

Eph-

of

Lincoln

President

Fidelity,

The

Browning,

American

as

Frank

stock

common

and

of

serve

*

Consolidation

The

OFFICERS, ETC.

*

Prentice

dent

of

the American Bankers Association.: of

CONSOLIDATIONS
NEW

H.

member

a

15

RETHIL

GEORGETOWN

GIENVIUE
—

REDDING

The Commercial and Financial Chronicle

16

.

.

Thursday, July 30, 1959

.

(428)
2Vz times the 1951 level. Respon¬
sible for this gain to a significant

of Mason

A.B.A. Stands Fast in Support

degree has been their

reply to critical comments made by savings banks and S
Assns. regarding A.B.A.'s recent support of the Mason

taxation

one

thing

ing the tax question. The answer
for this majority has been the in¬

loan and
mutual
savings
banking indus-*
tries.
It has
been -charged that
the tax sought by the bill is puni¬
tive. An attempt has been made
to create the impression that it

savings

loan

as¬

and

and

mutual

ings

seeks
been

sav¬

bear

of

de¬
Lee

P.

Miller

structure.

might say, in conclusion, that
leadership of the Association
—and I daresay the great majority
of the members—finds no comfort

in

part

it has

action

the

and

occiir

a sound and competitive fmancial system. It would place the deduction allowed for reserves for
bad debts on a consistent, logical basis for all tb^ee types of
institutions and would prevent the

the

of

convention

West

Virginia Bankers Association at
Greenbrier, White Sulphur

The

Springs

Va

W

on

July 24

banked organizah^n

in re-

to critical comments from

sponse

or?

batiks

savings

announced

over-all

„

ld

h

if

TvrWcfnr.

.

should result in
from
A m e r i c a n
Association by some of

resignations

its members, I view this as re¬
associations and mutual savings
banks. The tax sought is not puni- grettable. Association membership
tive. The claim that the bill seeks is purely voluntary, and it is of

the
"SOak the saver"
is patently
of any mem¬
June fallacious in the face of the facts ber to resign. It is our hope that
24
by Representative Noah M. that commercial banks have over this will not occur in large num¬
Mason, of Illinois, and referred to 50-million savings accounts—more bers.
the Ways and Means Committee, than
savings and loan associations
Asfor the mutual savings banks,
introduced

7950,

in

the privilege

course

House of Representatives on

designed, according to its preamble,
to amend the Internal
Revenue Code of 1954 to equalize

is

taxation
tions

The

financial

among

text
of
follows:

marks

institu-

other purposes.

for

and

re-

effective, a trade association cannot neglect its responsifoility for serving the interests of
its
membership on as broad a

possible. In the case of
banking, this
responsibility involves
the
encouragement of a
as

sound

competitive environment,
which—though important to the

interests
•—is

of

the

banks

particularly

themselves

essential

public interest. As

the

to

of its many
varied functions and
operations,
therefore, the American Bankers
Association
is working hard
on
a
legislative program that seeks
to
make
the
banking system
and

stronger
serve

to

thgir

one

enable

banks

communities

to

more

Since

is

it

the

subject

of

so

discussion, I would like to

talk for

few minutes

a

about

one

V part of that legislative urogram—
The Association recently issued
statement
in
support
of the

Mason

Bill, which seeks
equitable tax treatment of

more
com-

mercial

banks, savings and loan
associations, and mutual savings
banks.

This

result

demands

on

action

of

a

cant

long
the

number

ganization
Bankers

was

and

taken

part of

signifi-

a

of members.

such

as

the

Association

as

persistent
An

or-

American
has

many

facets, and it cannot be expected
that

decision of policy will
reflect the viewpoint of all memevery

bers. The long history of the Association has been one of compromise and accommodation of the

needs
groups
times

but

and

desires

of

different

in the membership,
at

of

return

those

to

seeking

competitive enpermit them

a

that

continue

are

com-

will

the

serve

50-million

owners

the

expense

of

some-

others,

always in terms of the broad

that
from

Interest in

a

a'vowe'd

purpose

dated and

membership.
They
have
active members for

been

fine,

many

years.

is

sincere belief that the

our

things that unite

unrealistic

as

a

horse

us are more

im¬

significant. To

to engage

be

realistic,

tax

Delaware Securities
Securities

50

at

Broadway, New York City
in a securities business.

fact that .these institutions have
become big business and therefor? sh°uld be required to operate
under fax rules that are fair and

President;

competitive environment that will
not weaken one group at the expease of the other' as ls the case
un,^r
P^sent laws.
When the Revenue Act of 1951
was ^der consideratlon'the Sen"
at^„F*na?.cs. Committee Passed
a bl11 to eliminate the tax exemp\l.on of savings and loan associaand mutual savings banks
way, ,tht was exPected to
Produce $140-million of revenue
.

ons
a

in

^ba* time they held
$40-billion of assets. There was
T-° Cry *egardmg Punitive taxatl0" or that an attempt was being
PA e
destroy them, although
the.mutaa s were successful in
having the bill changed in con*erfn.ce
'he present basis em-

bodying the 12% surplus and
serve

concept.

Since

then

Pr0ViS10n>

able

sources

to

about

Harold
REGO

$100-billion—or

Summary-1959—

of

Insurance Association

Proceedings of the
52nd annual meeting—Life In¬
surance Association of America,

America

Hammond,
Hammond,

New York

488 Madison Avenue,

(paper).

22, N. Y.

1959—

Life Insurance Fact Book,

PARK,

N.

New York 22,

Madison Avenue,
N.

Y.

(paper).

securities

a

business from offices at 64-33 99th

firm name
Harold Barsky Company.

Street,

under

Form
Capital

the

of

Maritime

Relations

Labor

Lakes—Charles

Great
-rowe

Lar-

Industrial

and

Labor

—

the

on

P.

Michigan State
University, East Lansing, Mich.,
$1.50.

Jobbers
—Gale Research Co., 3414 Book

National Directory of Back

Tower, Detroit 26, Mich., $15.

Organiza¬
Atlan¬

Treaty

Atlantic

North

tion—Handbook—North
tic

Program

Corporation

been

formed

116

John

Street, New York City
in a securities business.

to engage

with

offices

at

JAMAICA,
Inc.

Chaillot, Paris, France (paper).
Office

Edition

Supervisor—Third

Wiley

N.

New

Y.

—

Friarston,

York

Boulevard

(c/o Greenberg and Shapiro), to
engage in a securities business.

Named Director

a

Inc.

director of Gimbel Brothers,
has
been
announced.
Mr.

Gimbel, who
White, Weld

is
&

bankers,

son

is

a

associated

Co.,
of

with

investment
Bernard

Gimbel, Chairman of the Board.

F.

of

Agriculture,

Service,

Agricultural

Foreign
Washing¬

Administration—Charles W.

Wage

Brennan

—

Richard

Irwin,

D.

Inc., Homewood, 111.
Wormser's Guide to Estate Plan¬
ning— Rene
A.
Wormser —
Prentice-Hall, Englewood Cliffs,
N. J., $4.95.

Isaac Feldesman
Feldesman

is

business

rities

Opens
Y.—Isaac

conducting a secu¬
from offices at 24

Ellwood Avenue.

Zerkin.

New

Tirnady.

BARTLESVILLE, Okla.
office

Policy of the Soviet
Paul Einzig;

Initiative

Africa

in

Union

of

Profit Sanctuaries and How They

Edition—Busi¬
International, 200 Fourth
1959

York

New
$24.

the

in

Wal¬

Inc.

direction

the

—

has opened an
Price Tower under

Co.,

Elwood

of

Rus¬

P.

sell.

With Western Investors

South Africa,

Johannesburg,

Used,

&

by

etc.—Anglo

Harry T. Andrews;

Avenue,

J. A.
branch

145

at

New Walston Office

Government by Dr.

ness

—

Bedford
Street,
under the direction of Frank W.

office

ston

Are

Conn.

Hogle & Co., has opened a

ing to Africa, by Arnold Toyn-

French

Hogle Branch

STAMFORD,

ing articles on History's Warn¬

bee; Gold

Branch

Dual Planning

BALTIMORE, Md.—Dual Plan¬
ning Corporation has opened a
branch
office
at 2213
St.—Paul
Street under the direction of Max

Y., $5.95.

N.

3,

PORTLAND, Oreg.
is

Petersen

John R.

Fund.

with

He

was

formerly with Foster & Marshall.

Henry Schmidt Opens

Y.

J.—Henry C.
securities
at 71 Mait-

N.

PATERSON,

6$ Liberty Street, New
5, N. Y. (paper). 1

—

associated

now

Investors

Western

Schmidt is conducting a
business from
land

offices

Avenue.

merce,
York

Plastics

Progress in

—

Report

Fifth

York

New

Avenue,

Mass.—C.
has

BOSTON,
&

ham

branch
Trade

Report

Financial

Quarterly

New Abraham Branch

—

American Trade News,

German

Co., Inc.
office in

Building,

the

under

H. Abra¬
opened a
Board of
the

man¬

for agement of Harvey M. Simon.

Manufacturing Corporations, 1st

quarter

Introducing esti¬

1959:

mates

based

edition

of

the

on

(1957

Washington

it

—

Printing

25,

D.

C.,

S.

Office,
30C per

$1.00 per year.

Railroad
lem:

revised

Standard

Commission—-U.

Trade

copy;

the

Classification)—Fed¬

Industrial

Government

The election of Peter R. Gimbel
as

Sons, Inc., 440
New York 16,

Optima—June 1959 issue contain¬

eral
v

&

Avenue,

19, N. Y., $3 per year.

has been formed with offices

108-16

at

N.

by

Exports

Agricultural

S.

U.

Organization, Infor¬
Service, Palais de

mation

666

Form Friarston Inc.

A

Hampshire Avenue, N.W., Wash¬
ington 9, D. C. (paper).

Treaty

Program for Halting Inflation —
New York
Chamber of Com¬

has

—

Study

Relations Center,

(paper)

Capital Program

Ethiopia

to

of U. S. Business
Performance Abroad—National
Case

MOUNT VERNON, N.

South Africa, 10s. per year.

Y. —Harold

(paper) $1.
Services

Insurance, 488

of Life

Institute

Ltd.,

Barsky Opens

D. C.
TWA's

—

American Corp. of

Bar'sky is conducting

they

and they have been
to increase their total re-

sociation to seek enactment of the

Robert R.

are

and F. A.
Secretary-Treasurer.

re¬

t0 6SCape taxa«on under this 12%

Corpora¬

tion has been formed with offices

Officers

a

Life

Fourth

Delaware

Government

S.

ton, D. C. (paper),
y
Changes in the Banking Law
and related statutes made by Upstate New York—Industrial ad¬
vantages of Upstate New York
the 1959 session of the Legisla¬
—Niagara Mohawk Power Cor¬
ture—New York State Banking
poration, Syracuse, N. Y. (on
Department, 100 Church Street,
request).
New York 7, N. Y.

John

Form

U.

Printing Office, Washington 25,

Washington. D. C. (paper), $1.00.
Legislative

—Henry E. Niles, Mary Cushing
Niles and James C. Stephens—

Co., 477 Congress Street.

—

Documents,

ment

Stone &

II have

of the

Destination, 1958—U. S. Depart¬

Sleeper and Frederick G. Towle,joined the staff of Hayden,

and buggy in the jet age. Today's
competitive environment is fundamentally different from that
which existed years ago, when
savings and loans and mutuals
were organized as small, nonpromotional institutions — at a
time when income taxes were in-

Mason Bill has given rise to strong
criticism on the part of those who




saying

sociation's position is simply that portant than the things that divide
the savings and loan associations us.
and mutual savings banks should
bear a fair share of the burden of
Hayden, Stone Adds
taxation. The old argument that
(Special to The Financial Chronicle)
the so-called mutual institution
should be allowed, by reason of
PORTLAND, Ore. —James H.
its character and structure, to Cole, Brenton A. Carr, Chris¬
avoid effective taxation is as out- topher J. Makrides, Stephen G.

strong and have been able almost completely
of the As-

as

not be expelled

they should

It

£

The

the A. B. A. is on record

accounts.

equitable, and that permit of

federal income taxation

a

that they

vironment

of

banks

policy must take account of the

effectively.
much

the

savings

The plain rationale of the As-

To be

basis

mutual

kmed—and

to

Miller's

Mr.

and

Commerce

the

in

Bureau

—

S. Department of
Superintendent of

U.

tion, 1012 Fourteenth St., N. W.,

effectiveness in

matters.

States

Census,

Planning Association, 1606 New

and the Concept of

Pound
—American Enterprise Associa¬

as¬

If disagreement

Bankers

New

Service—Roscoe

Public

,

supporting

ti

its

Business,

York, N. Y. (paper).

pursuing those objectives, even
though there may be disunity on
some

TJ^

rs

and

sociation

trade

a

I.
of

University,

Labor Unions

broad view of the

a

objectives of

School

York

New

Rowland
Bogen—

G.

—■

Jules

and

Graduate

and

FHA

Values

Property

United

Bank

Washington,

Washington,
C„ (paper).

Taxable

manage¬

of

Status

Mortgages

Collins

people with all shades of opinion

S Siose principles doe^ not seek the
A^A's destruction of savings and loan

the

S^PP° t
/you;

li,

H. R.

gf

VA

posed to correct an imbalance. I
do believe, however, that
under
a situation such as
exists today,

''"St 'otherwise7 would
wide

of the democratic process,
disagreement
is bound to
whenever change is pro¬

should take

of

St., New York 15, N. Y.

Investment

of a

of the membership—the
Disappoint¬
of the minority is always

ment

clear that the

Fidelity Bank and Trust Company,
annual

the views

18 Pine

de¬

People

—Bulletin—The National

offered

Bank—Chase

segment

Mason Bill as meeting the needs

Louisville, Kentucky, spoke at the

harmony with

Tax Deduction for Married

by the
Manhattan Bank,

services

ment

not

is

investment

scribing'

mutual savings banks.

Citizens

the

of

the

in

taken, views the principles of the

President

is

who

fact

action

its

that

in

Avenue, Chicago 37, 111. (cloth),
$2.25.

D.

Service—Booklet

Investment

the

thrift.

Association,

Miller

Mr.

interest,
a
constructive
a sounder financial

toward

step

Robinson—Univer¬

G.

A.

sity of Chicago Press, 5750 Ellis

History of The

—

Equitable
Life Assurance
Society of the United States,
1859-1959—F.
Carlyle Buley—
Appleton Century Crofts, Inc.,
New York City (cloth), $5.00.

that is

taxation

of

Equitable

The

represents, in the broad

and

public

dis¬

will

institutions

I want to make it

clared.

method

a

fair

Says It Aids Financial System

P.

Miller

of

—E.

Bill

troduction through the Mason

Industry

Structure of Competitive

I

interest. It has
also without

contended,

courage

taxation,
Lee

saver". It has

loosely claimed that the bill

mutual

of

A. B. A. Presi¬
dent

the

foundation, that effective taxation

of

burden

the

"soak

to

been

a

share

3

is not in the public

banks

should
fair

the savings and

of

tion

—

sociations

the majority of the
membership regard-*

among

Association

belief

that

as

Bill

Associa¬

tion's

ion

oppose

only

the

such

considerations

is

It

these, I firmly believe, that have
created the groundswell of opin¬

the recently in-

financial

of

means

Changing Concept and Function
of the Corporate Board, and In¬
What It
Does to the Economy—Society
of
Business
Advisory^ Profes¬
sions, Inc'., 90 Trinity Place,
) *New York 6, N. Y. (paper).
£

.

Majority Rules the Step Fair

& L
Bill.

a change in the present
tax laws affecting financial in¬
on
federal stitutions. It has been alleged that
institutions the Mason Bill seeks thedestruc-

Associa-

The American Bankers
iion's support of
troduced Mason

r

sufficient Depreciation:

Miller gives the first official

President Lee P.

Association

adoption of
to avoid

policies enabling them
the payment of taxes.

On Bank Taxation

|

Society of Business Advisory Professions—Proceedings
of 32nd
and
33rd
Conferences — On

Passenger

What

can

Interstate

mission,
(paper).

LANCASTER,
Co.

be done to solve

Commerce

Com¬

D.

C.

Branch

Pa. —Brooke

&

opened a branch office at
Columbia. Avenue, under the

has

2207

management of Harry H. Noll.

With Floyd D.

Cerf Co.

(Special to The Financial

Prob¬

Train

Washington,

New Brooke Co.

Chronicle)

CHICAGO, 111.—Trevor D. Weiss
is now affiliated with Floyd D.
Cerf
190

Jr.

Smith

Company
T

.u

Incorporated,

Sallp Street.

Volume

190

Number 5868

.

.

.

The Commercial and Financial
Chronicle

(429)

first

THE MARKET... AND YOU
By WALLACE

out

is

difficult

a

level

chore but

age

not

chore runs, it can do 60% as
portant
well in the second
half, it will

a

target area around 680 de¬
spite profit-taking that set up

be

able

if,

to

around

*

decade.

to

forge ever higher, the aver¬
working close to what is
rather
generally accepted as

the

in

seen

about

Modernization

in

o

f

earnings of has been
This

blue

chip oils—
Standard of Jersey profit
up
27%fc that of Phillips Petro¬
leum ahead
46%, etc.—finally
brought some popularity to

»

for the gen¬

Co.

improving

Co.

crude

oil

but there

final results

higher

a

for the

around

will turn out.

oil

some

Interest

Centers

on

Compact Cars

a

candidate for

despite

payout

its

yield

present

o

f

4a/£%.
:!:

Similarly, the
after

a

rayon mak¬
difficult time last

least

concerned,

are

fan¬

how

centered

the

of

reverse

pattern under¬
will way for several years of de¬
on

Dean

a

secondary
outstanding

selling stockholders.

debentures
and

is

priced

are

accrued

stock

priced

interest,
at

at

and

$36.25

a

few

who

areas.

when

oils

Gulf

Oil,

had

usual

as

market

some

bentures,

rayon

ink for the first time since the

to

although' Packard

realistic oil experts ex¬

whether the

rior Oil

in

merger

last year's

Texaco-Supe-

1954

in wash-'n-wear fabric.

*

so

far this year.

*

Studebaker's

without

been

difficulty.

even

Steel

Strike

the

issues

had

a

American,

shares

than

in

have

restrained

more

marketwise

Steels and

those

of

because

part

after

filling the dealer pipe¬
the February-March
strike ground on without any period, the rate of
production
sign of a settlement to keep tapered off. This slowdown
some¬

what

quiet market life.

them

restrained

face of
its

for

even

The lines

in

the

record-breaking prof¬
the

first

also

in

coincided with

announcements

half, the in¬ Three would

that

enter

*

the
the

Users

showed

of

little

a

de¬

pros¬

of

tion had

*

steel

Big
com¬

large-scale competi¬
anything to do with
production decline.

pect

*

final

the

tangible being how much of pact field which started
these profits were borrowed bate over whether the
from the future.

generally

concern

at

the

*

the

moment about

the strike and

admitted

up

*

*

*

*

American

the

of the

Viscose

obvious

was

one

beneficiaries

popularity for the
rayon group, the shares mak¬
ing the new highs lists. It was
the developer of Tyrex, the
new tire yarn, and
is one of
the companies that have de¬
cided to battle with nylon on
a
direct front, since its half
new

contract

won't

inventories makers

expire

until

k

of

the

sents

an

investment in

purposes,

pansion of the
and

increase

including

in

working

Pending ultimate

of

use

ex¬

facilities

company

ceeds, Varian intends to

are

Textile shares, even

a

both
its

Viscose

and

outstanding capitaliza¬
Associates, Inc. and
will
consist
of
$2,-

360,000 notes; the
vertible
and

$4,000,000

subordinated

3,125,650

shares

of

capital

stock.

Combined sales of Varian Asso¬

the
use

Bomac,

microwave

electronic

in

in
of

acquisition

Associates

broadened
field

will

of

be

Miami

The

debentures

25

shares

through July
through July
through July
the

are

convertible

capital

14,

1963;

The

24

FRANCISCO, Cal.—Doris
is

conducting

business

from

securi¬

a

offices

H. S. Rust

Opens

(Special to The .Financial Chronicle)

LOS

ALTOS, Calif. —Hubbard

S. Rust is engaging in a securities
business from offices at 285 State
Street.
He
was
formerly with

Marache-Dofflemyre & Co.

La Hue Adds Three

of

(Special to The Financial Chronicle)

ST.

the

Beer,

PAUL, Minn. — Lewis F.
Raymond R. Shepard and.

Richard
the

bene¬

sinking fund under which,
beginning in 1964, the cofnpany is

added

a

J.

Williams
the

to

Investment

staff

Co.,

have
of

La

1959

OLDEST

CHARTERED

SOUTH

OF

THE

FINANCIAL

NATION

INSTITUTION

CAPITAL

S

Setting the Pace In the Central
Savannah River Area

Issue

A

surge in buying
sumer
durables
has

At Close of Business June 30, 1959
RESOURCES

LIABILITIES
June

Cash

and

due

from

30, 1959

June

TOTAL

Capital

GEORGIA

&

Profits

.

Reserves

52,702,246.04
on

TOTAL

AND

636,354.30
953,369.52

Deposits

Liability

BANKING

RAILROAD

...$ 1,750,000.00

1,750,000.00

Undivided

RESOURCES......$57,808,018.58

RAILROAD

Stock

Surplus

AFFILIATED

FIRST

30,1959

banks..

.$10,746,420.65
U. S. Government Securities.
9,962,734.07
State, Municipal and Other
Securities
5,651,166.96
Stock in Federal Reserve Bank
105,000.00
Loans and Discounts........ 29,894,596.06
Banking Houses and Fixtures
1,167,861.09
Other Real Estate
.....>
32,111.34
Other Resources............
232,079.69
Customers' Liability on
Letters of Credit.........
16,048.72

Letters of Credit

LIABILITIES

16,048.72

$57,808,018.58

WITH

OF

COMPANY

BANKING

GEORGIA

COMPANY

AND

FIRST

OF

GEORGIA

FIRE

8t

CASUALTY

COMPANY

GEORGIA RAILROAD BANK
& TRUST COMPANY
AUGUSTA, GEORGIA
MEMBER

FEDERAL
MEMBER

DEPOSIT
FEDERAL

INSURANCE
RESERVE

CORPORATION

SYSTEM

been
Hue

Pioneer-Endicott

Building.

1833

THE

344

at

Kearny Street.

shares

the life

debentures have

at

Beach, Fla.

Morse

ties

debentures.

fit of

25-28

(Special to The Financial Chronicle)

1967; 23 shares
1971; 22 shares

of

the

of

Association

October

stock

14,
14,

balance

held

SAN
H.

further

components.
into

Bankers

Opens Investment Office

Bomac,

has

Convention

annual

in¬

its product line in the
microwave
tubes
and

of

$1,306,546.

was

American

vacuum

equipment and
electronic
systems and com¬
ponents, for military, commercial
and
industrial
use.
Principal

Varian

Laboratories,

Convention in October
The

tubes,

Bomac

Amer. Bankers Assn.

pro¬

them

incorporated
1948, is engaged principally
the
design and manufacture
struments,

and

during the
seven
months
ended April 30, 1959 totaled
$20,598,207
and
net
income,
after
minority interest
in
income
of

capital.

company,

Promising Consumer

the

con¬

debentures;

Monsanto,

of

on,

ranging

subsidiaries

repay current bank borrowing
and to invest in short-term
gov¬

owners.

A

are

part

ma¬

longer "ChronicleThey are presented
the
month
ends
tomorrow. neglected than the oils, were as those of the author only.}
For the first half the com¬ also
given to some popularity
Richard Witrofsky Opens
pany's per share profit was when the earnings statements
BRONX, N. Y.—Richard Wit¬
that
the
up nine-fold over the similar indicated
industry
rofsky is engaging in a securities
period last year. Tryine to was in something of a general business from
offices at 165 East
figure how its second half recovery
virtually for the 179th Street.




or

tion of Varian

to

profit results to help bolster

Durable
car

whole

re¬

general

they

purposes

in

be

For

Upon completion of the current

financing

per

general

corporate

jor nylon producer. Chem¬
strand has been showing good

*

compact

will

100%.

interest in Chemstrand repre¬

of con¬
helped
hopefully relying
sufficient to cover the need
some of the companies,
on the new
nota¬
competition from
for varying periods,
generally the Big Three to stimulate bly Maytag, which was able
around
two
months. If
the consumer
to show excellent profits last
acceptance and ma¬
strike lasts until these stock¬
terially broaden the market year and is being projected
to record-breaking results this
piles are used up, the steel for all the makers of
compact
mills will hum merrily once
The shares have been
cars. But since the auto indus¬ year.
they are reopened. The third try's path through history is quiet since their split earlier
quarter profit reports, how¬ strewn with the skeletons of this month, holding in a nar¬
row
ever, will be in sharp contrast dozens of
range of three points as
hopeful independ¬
with the previous periods.
the split excitement died out.
ent
makers, there .was still
*
*
*
considerable skepticism over Indications are that the profit
the ability of Studebaker and this year should reach $4 to
There was
some
hunting
to
continue
With give the issue a moderate 10for steel issues among those American
time price ratio and an above
their
not yet affected or
impressive profits in¬
only par¬
average yield of 4%.
tially affected. Alan Wood definitely.
[The views expressed in this
Steel, for instance, has a tem¬
Textiles Recover
article do not necessarily at any
porary advantage in that its
time coincide with those
piling

Both

at

days' notice at prices
105% to 100%.

ciates

for

'

of

*

proposed union clears

anti-trust authorities

makers have been able
come up with a satisfactory

final quarter and

pect any merger here to wait
has done well
on

a

baker made the turn to black

have

rumors

foundation

some

more

the

de¬

as

the

Inc.

Through

impressively

of

from

kets later in the year. Ameri¬ face cause of the rebound is standing common stock of Bomac
Motors has been showing a new tire yarn that has been Laboratories, Inc., Beverly, Mass.

profit- sufficiently improved so it
attention, was inclined to be
maker but the threat of
large- can compete successfully with
linked with Union Oil. Since
scale competition has kept the nylon-in tire use. Added to
Gulf holds
$120 million of
stock price restrained. Stude- this are high hopes that the
Union Oil's
convertible

30

can

up

!Vz%

debentures

redeemable

Net proceeds received
by Varian
Associates from sale of the deben¬
tures
will
be
used
for

independents
thought they saw fare with the
manufacturing facilities are in
Big Three in¬ clining production and price Palo Alto, Calif. In March
the beginning of a turn with
1959,
vading their compact car mar¬ cuts to pinch profits. The sur¬ Varian acquired 80% of the out¬
gasoline prices firming in a
ciers

redeem

redemption

share.

The

•

ers

by

the

deemable

ernment securities.
*

In the autos the interest, at year have seen their business
as far as
Street studies rebound. It is something of a

in

product prices

were

an¬

nual dividend. If the full year

generous

year

the dollar

on

*

weakness

and

waiting

how the

The earnings reports called
to

covers

ing to figure the probable cost
and then make projections on

A Turn in the Oils?

attention

already

made

proceeds of which will

the

to

100%
the

under¬

an

30,000
capital stock of Varian

Associates,
The

made

fund

Concurrently Dean

.of

of

accrue

deben¬

was

yesterday (July 29) by
writing group headed
&

in the lead in such

would also be

Motors'

/

*

subordinated

&

the end earnings double over 1958, as
steel strike before
try¬ seems probable, the company

of the

long-neglected group and
oils shares did well when the
was good
eral market.

*

Much of Wall Street, how¬
ever, was

this

going

*

.

convertible

Witter

would

of
$4,000,000
15-year 4y2%

tures due July
15, 1974

Witter

activity. In the 1958 fiscal
growing resistance to be give the issue a profit/earn¬
year the company turned in
overcome.
'
ings ratio of less than 8-to-l, $1.21 in
profit. For the first
*
*
*
with
a
dividend
yield ap¬ half of chis year earnings
Good earnings reports from proaching 4%.
nearly doubled to $1.12 which
of the

offering

Associates

im¬

an

a

some

Varian

to

issue
annually, and may at its
option redeem up to an additional
7y2% in any year. For the sinking

Securities Offered
Public

profit margins and Burlington offering
shares

show

$4.50.

role

a

required

Varian Associates

*

this difficult
plant facilities has had

as

of

end

Projections for Burlington
Industries profit for the fiscal
year, in fact, were aiming at
a

work

since

*

STREETE

Industrial stocks continued will

time

World War II.

17

The Commercial and

119955346-

(430)

18

2

Like Best

The Security I

It is possible that most
airlines will follow suit, thus converting depreciated passenger aircraft to freighters, increasing
interim freight airlift capacity in
light of the growing emphasis on

of activities. It
has been pointed out that the private carriers and forwarders
could
in these particular cases,
portion

that

up

cheaply.

perform more

""

^*z fl'v'nress

thf'

either

t

of

less-lhan-truckload

diffi-

of diffi

underwent 24 years

AEI

than.shipload traffic

Sie leading

as

what
now

tion.

i953__

the Company

izing on

initiateda

5,000,000

1955._

7,100,000

7,900,000

whicn

9,200,000

program

parcel

small

$4,800,000

door-to-door ««--

its position,

recently

i954__

1958

a^sfngle^harge7 a^nd dbimngrtfor

_

of the service area. In 1957 the com¬
acquired Kings County Lighting, serving part of Brooklyn-,
and New \ork & Richmond Gas, serving Stateri Island; this year,
Brooklyn Borough Gas (serving the Coney Island section) wa*s
acquired as of June 1. The sparsely settled Staten Island area
should provide room for considerable future expansion, which
should be stimulated by the building of a bridge across the Nar¬
rows
to Brooklyn, lo be completed within, several years.

,

3,060 shs.

20,000 shs.

1,000,000 shs, 456,315

par)

shs.

Syllogistically, the logical con¬
clusion to the foregoing seems to
be that inasmuch as the airline
business has through the granting
of
more
realistic rates by the
CAB and the stimulus of jet air¬

to receive natural gas in 1951 it
gas-heating load; especially in one and
two-family homes in its area. In recent years, as a result of rate
cuts and an aggressive promotional campaign, substantial con¬
versions from oil heating to gas have been obtained. Recently the
company acquired its 100,000th space-heating account; the record
number of 17,000 was obtained in 1957, and about 16,000 were
added last year, with approximately the same number anticipated
for this year.
The company remains optimistic about continued
expansion of this section of its business and an increase from
the present 30% residential saturation to as high as 80% by 1975
has been forecast. The greatest room for expansion will probably
be in the new service areas acquired in the past few years.

than just

consolidation

in 1953 to 22% in 1958 indicating
increased, the per-

earn

.

..

..

^

remarks:

in fuel costs greatly
benefit of substantial rate
delay) earnings recovered
from 61 ceqts in 1948 to $2.16 in 1949 but remained irregular for
the next three years. Since 1952, with the benefits of natural gas, |
there has been a continuous increase in earnings from $1.79 in
that year to $3.17 in 1958, and $3.28 for the 12 months ended June

years.
At a

"We're

will

which

beginning

just

era

an

major share of

a

see

traveling
through
the
skies".—Willis' G.
Lipscomb,
Vice-President, Pan
world's

the

commerce

Airways.

American World

business of the comwill be as im-

"The cargo

airlines

mercial

welcome its - services,
since they are relieved of the task
of having to handle such details
as
pick-up, filing consular invoices, transshipments, payment
of freight charges to all participating carriers here and abroad
and many other details. Air ExPress makes practically all the

busi-

as their passenger
ness".—Juan T. Trippe, President,

portant

World Airways.

American

Pan

,

.

,

..

,

,

,

,

will

freight has been, and
all likelihood remain,

Air

N,

Cross

York

than lf at"

S^th:

the

load

will

probably
and rear
a

load from both front
simultaneously, and with

capacity

e<^

co.s^

reduced

freight

air

eliminate

one

of

the

of

heretofore

stacles

.

of

planes

from

sidiary

of

the

air

delivery

(expected

Canadair,

General

Ltd.,

of

by
a

jet

Dynamics, or

jet sometime in 1961) several

air-

lines

are

converting

na^pnffpr
passenger




nirrrnft
aircrart

9,200,000

the

1958,

w

present
fn
10

r

^

"

principal

Mayer as President

and Alvin B. Beck as Executive

nil
an

Substantial

im-

immediately effected. As a result, profits im-

proved as follows:
,
.
1st

Period—
months
six

1958

2nd six months rss

lstmonths 1959 (est.)
six month? 1959

l2

man,

"

coor-

BiBLziJl^iJflB

some

of

E. Newton Cutler, Jr.

volun¬

in the five Red Cross

Mr. Cutler joined the

tional

on

6i,9is profit

73-887 Profit

300,000 profit

his

in

Princeton

First Na¬

graduation from
In his present

1937.

executive vice presi¬
dent, in the supervision of the
bank's national division, which is
business

in

the

by

higher

continental

U.

S.

Canada.

000)

wage

increase was

being somewhat

year,

also becomes

factor though

This

president

of

porated, St. Paul,
June 30th.

away

Minn,

passed

slighth
($1,500,

granted effective April 1, the amoun

Beginning July 1 New Yor
amounting to $900,000 ;
effective. Weather conditions will remain ;
tax on revenues,

not as important as

year's construction

pared with $14 million

during the heating season. .
is about $18 million com

program

last year, and future annual amounts ma;
the next two or three years. The 1960-

about the same over

program

will probably include

the construction of a $10

millioi

building.

Union Gas had been

selling recently around 541/

59V2-49^2 and last year 50-34%). Dividem
payments have increased each year since 1950 and are current!
at $2.20 making a yield of 4%.
The price-earnings ratio is 16.
(range this year about

Irving J. Rice & Company, Incor¬

1959 may recede

of several factors: an 8%

larger than usual.

City's increase in gross

Brooklyn

Rice,

for the calendar year

the June figure because

office

Irving J. Rice,
J.

rates through

Share earnings

run

and

mcf—a larger increase

offset

Laeri,

responsible for the organization's

of gas
about four cent:

In November the cost

costs).

from

appointment, which he received
last December, he assists J. How¬
ard

through for the

than anticipated. While this will be
action of the fuel clause, it i;
unfavorable from a competitive sales standpoint. It is uncertain
of course, whether the full increase will be approved by the FPC

per

chap¬

City Bank as an executive

trainee

released, reflect flow

the result of a recent

Transcontinental Pipe Line will increase

from

City during the

annual March campaign.

Irving
$60,000 loss

ML BB

the

dinate

June, just

ended

time, as

compensating for increased

'^Gp. HB

Mr. Cut-

will

ler

ters in New York

..

late Vice-President.
provement was

sub-

600

635-mile-an-hour

DC-7
4

July,

In

7',900',000

'—ZZZZZZ sisoo.'ooo

gjH*

York.

chair-

teers

permit, stockholders of AEI changed the
mana§ement of the company, the
freight President
being replaced by

Convair

a

1957

1958——

Chester M.

lieu

cargo
1960

i956~~~I~IIZIIIIIZ

rates
and
major ob-

growth.
In

1955""

^

Cross in Great-

New

wasmormalizing its tax savings resulting from accelerated
and if "flow through" had been used, earnings
would have been increased about 19 cents. The figures for the 12
pany

declaration of policy by th
Public Service Commission favoring this method of accounting.
The company is fortunate in one respect—share earnings are
not affected to any great extent by changes in the cost of gas
from the suppliers, since the New York Commission now permits
the use of automatic adjustment clauses in rate schedules (som
other states do not permit this, with resulting regulatory lag ir

of

As

companies are always subject to

weather conditions; 1958 earnings
unusually cold weather to the extent of an esti¬
a share.
On the other hand at that time the com¬

depreciation,

first

American Red

er

mated 32 cents

months

D.

chairman

35,000

60o'ooo

ZI~_I 4,30o!ooo
7 ono'°°°

1953IIZII

pounds compared with 45,000
pounds for former planes, is expected to benefit the industry considerably
(and
AEI). Reduced
costs per ton mile as well as re-

3

chairmanship of

Fletcher,

work

$2,300,000

—

1952ZIHZLZIIZZ

70,000

probably

of

Gross Billings

Year

ground level, and

near

benefited from

an-

Walter

earnings of natural gas

irregularities due to changes in

cam¬

been

has

Shippers realize
a
forwarder with a specialknowledge expedites a ship-

was

$420,000.

The

nounced by

country.

(in 1958 6.5%

about

in New
City, it

paign

6% on its rate

earned on invested capital, according to
Standard & Poor's, compared with only 4.4% in 1950). Rates have
been adjusted downward several times in recent years without
formal rate proceedings. In October 1958 commercial and indus¬
trial rates were reduced, about $1 million a year or two( ago,
following earlier residential cuts. In order to bring rates in the
Brooklyn Borough area in line with those in other sections, resi¬
dential rates are being reduced currently by $544,000 and other
rates $65,000.
In 1958 carrying charges on customer appliances
were
put "on a more conservative basis, which reduced income

Red

I960

the

probably earning a little over

The company is
base

president of the First Na¬
City Bank of New York,

accepted the

has

from Transcontinental Gas

gether with a supplementary supply of storage gas for winter
peaking.
It is also considering the installation of facilities in
Brooklyn for storing liquid methane (liquefied natural gas, which
must be kept at a temperature of 260 degrees below zero).

senior

Jr.,

:

v

to receive natural gas early in
Pipe Line Corp. after the latter
completed its pipeline from Texas. The company now also has
available supplies from Texas Eastern and Tennessee Gas, to¬
began

Union Gas

Brooklyn

tional

the ^ia^.
fastest growing segment of the jze(j
airlmes industry. In 1958 freight
.
...
,
accounted for 3.8% of total rev- ment at less cost
enues and 8.7% of total ton miles
tempted directly by the shipper
compared with 2.4% and 5.1% re- himself.
spectively, in 1947. The introducThe
company's
business
has
tion of jet cargo planes
with a
+i
swing back taU section, which shown

in

Cutler

Newton

vice

1959.

1951

1910
Y. Red Gross Drive

E.

arrangements to assure that a
shipment originating in one point
in the United States will be delivered to the consignee in the
foreign

30,

Cutler to Head

airlines

^

!

of 3V2 in;
from July

December 1948, v/hen the rapid rise

to

1947

centage

..

„

1930s and the World War period, Brooklyn
sharply lower than in earlier years and the

handicapped the company. With the
increases (received after considerable

that as volume

nnnlv
api
y.

«,iii
wiu

began

a

dropped from its 1929 high of 124V4 to a low
1941-2. Dividends on the common stock were omitted

price of approximately 18
AEI
does
not, in our judgment
of profit increased, not nearly reflect present earnings or
Yery early in its history, t e alone the d0nar amount. At presfuture prospects. By way of com¬
Company decided to concentrate e ,
a(^eqUate "volume" rates are
parison, one may point to Emery
its efforts on international rathei
appijcabie only to United StatesAir Freight (a company smaller
than domestic air cargo by reason gQUAmerica traffic; across the
than
AEI
on
an
international
of the overwhelming advantages Atlantic, however, which constibasis) selling around 30 (Ameri¬
over
competing methods, and in j.u^es AEI's principal source of air
can
Stock Exchange), with earn¬
view
of the greater profit po- carg0
a
"volume" rate applies
tentiality of this business over do- on}y
iqq
—there being no ings of 72 cents per share in 1958
and with predicted earnings by
mestic business. This view st1." further rate reduction above that
its President of $1-$1.10 per share
constitutes the Company s basic amount The world's airlines have
for 1959. Sophisticated, long-term
policy, although it now becomes presently under consideration the
investors may note, also, that Air
possible to add domestic consoL- establishment of additional rate
Express International, at present
idation at relatively little inei ease breaks above 100 lbs. and should
market price, is selling for ap¬
in expense. In all other forms of
occur
the company's profit
transportation, cargo revenue con- margjn wjjj be further increased, proximately $9.7 million—assum¬
stitutes the bulk of the business,
AEI's expenses for performing ing conversion of bonds and pre¬
ferred—against a reasonably ex¬
in air traffic, it is still smaller than ajj
serv]ces are mainly payroll
pected net income in two or three
passengers and mail. If both logic anc( rent# Jt is engaged essentially
and history prevail, the growth of jn
three businesses:
air export years of $1.6-$2 million per year,
air cargo should be
substantial. (forWarding); air import (cus- or only about five times earnings.
In support of -this premise, it is toms clearance); and air cargo coninteresting to note the following soij(jation. Both shippers and the

sinqjUfied service

wdiich this new

up

During the late

view of pres¬
prospects, that AEI might
$3 per share in two or three

ent

.company

building

stock

unlikely, either, in

13%

been

Union's earnings were

sha^e this year, at which time
it should be earning at the yearly
rate of $1,50 per share. It is not

per

business is the fact that this bus 1ness produces a higher profit than
does the forwarding and clearance business. Profit margins on
consolidations increased from

.

.

the

Since

has

craft, become one
growing industries
.

in part to enlargement

pany

$600,000

stock

($0.25

moving dis-

But more important

the growth of its

shipments with a maximum customs value of $250 between New
York/Newark and all points in
Switzerland. The Company further stated that Switzerland will
i,0
tViA
first
of the countries to

stock

par)____.

Common

-

Union Gas serves natural gas, .to over 1,140,000
customers in Brooklyn, Queens County and Slaten Island, the
population of the service area approximating 4,000,000. Revenues
have increased from $38 million in 1948 to $87 million recently,

of the fastest
in the coun¬
try
and since air cargo
freighting is the fastest growing
^ Total Billings segment of the airline business, it
follows that Air Express Inter¬
$230,000
4.8%
nationa Worp., the world's largest
410,000
7.4
air freight forwarder will benefit
1,010,000
10.8
accordingly. It can be stated with
1.370,000 17,2
a fair degree of confidence that the
2,100,000
22.8
company will earn about 70 cents

^

^

favorablej0I"Jet'lvapitl
By way of further capital-

ally

Brooklyn Union Gas Company
Brooklyn

Stock:

($25

to see the development of this
segment of the business. ■
Blllingcs~~^ C°ansSa %aof°n

unusu-

that now it is in an

years

By OWEN ELY

due

'

1974.

Preferred

Utility Securities

.

-ubord. conv.

1,

essentially is a new industry,
in an obvious phase of rapid

spending capital (now largely
completed),- so established itself
throughout the world these many

—

—

.

debs., due Mar.

in

company

—

(esc.)

37,000
37,0.00
*45,000
*33,000
'
2,000
300.000

•Loss.

tances of 500 miles or more.As mentioned earlier, Air, Lxpress International places much
crowth. AEI has, by persistently emphasis and hope on its consoliploughing back earnings and dation business. It is interesting

self

Public

Capitalization (May 31, 1959)
Debt:
Authorized Outstdg.

less-

and

—

—

1959'

6%

Thursday, July 30, 1959

-

1358

within five years, to make air
transport of freight strongly competitive
for
less-than-canoad,

Internationa!

extent ™ in nualitv of
or in qua
y

in

1J.57

ffaS as much as 50%
duced by perhaps

todajZhas
.J

ASni°vr in the
company iirrS

____

1955—'—.————

persuaded to give cargo use.

carriers, will be

*$102,000
*31,000
21,000
6,000
4.—.——

1951.

1952

.

Net Profit

1950

>

.

.

Record

Earnings

Year

Continued from page

Financial Chronicle

based on latest

reported earnings.

Volume

190

Number

5868

.

The Commercial and Financial Chronicle

...

r

Hill Adds

Stgif.

to

With

(Special to The Financial Chronicle)

Our

Reporter

on

Governments

CINCINNATI, Ohio

of the Treasury is mow pretty miich a
it was a very favorable one, with the

pay-out surprisingly small: This means that the Treasury can now
get ready Lor the new money, raising venture which will be
coming
along soon and should be in the neighborhood of or a bit less
than

$2,000,000,000.

The

Treasury in its recent refunding was
able to extend the
maturity of the Federal debt, and the. issues

which

turned

were

for

in

the

4%s due May

15,

1964,

not

were

considered to be of

an insignificant
amount, even though an assist
given by the Federal Reserve Banks.
The fine reception which was given
J^p the August issues—
that is, the short and long 43/4s—had a
bolstering effect on the

was

Whole

issues

Government
that

were

Cincinnati

Stock

—

Exchanges.

announced

that

Werner

(Special to The Financial Chronicle)

BOSTON,< Mass.—George

Brothers Securities Co., Inc., Zero
Court Street.

special¬

ist in foreign securities.

With

Marache, Dofflemyre

ANGELES, Calif. — James
A. Betley has been added to the
staff of Marache, Dofflemyre &
Co.,
21$
West
Seventh
Street,
the

of

with

First

Pacific

He

Theodore

(Special to The Financial Chronicle)

LOS

members

T. Arrin Co. Opens

Tracon In v. Co. Opens

(Special to The Financial Chronicle)

Stock Exchange:

CHICAGO, 111.—Tracon Invest¬
ment

Co., Inc. is conducting

curities

Coast

919

business

North

ficers

from

a

from

se¬

offices

Michigan Avenue.

at

Harold

are

and

at

Inc.

East

City.

Third

Officers

Lewis

and

secretary.

market, except for those intermediate term
competitive with the refunding obligations.

appear to be making somewhat larger commitments
selected Government obligations.

Small Attrition

in

Highly Significant

The Treasury in its August refunding operations had its most
successful deal of the'^ear when only about 4% of the issues held
by the public were turned in for cash. The money
markqis were
pleasantly surprised since the indicated attrition of about $234,-

000,000 represented such a low total of the maturing issues. This
probably means that the Treasury will not have to make plans for
borrowing quite as large an amount of new money as was ex¬
pected by most money market followers.

Newport News Shipbuilding and Dry Dock Company
Profit and Loss Information for the six fiscal months

The

rate that was put on the
refunding obligations of 4%%
evidently high enough to attract considerable interest outside

was

ended June 29, 1959 and June 23, 1958

of the Central Banks.

To be sure, the Federal Reserve Banks did
into the 4%s of May 15, 1964 in the amount of $2,643,000,000
and this was responsible in some measure for the favorable
recep¬
go

tion

that

was

given

package
past have turned in securities
which were coming due for issues with a
maturity of more than
a year, so the current
exchange cannot be classified as a definite
offer.

The

Central

Six Fiscal Months Ended
June 29,

Banks

in

Gross income from

shipbuilding, ship conversions and repairs,
hydraulic turbines and other work
«•
.

from the policy of using only the shortest and most
liquid obligations to control the money markets and the level of

Operating profit

interest rates.

Deduct—Provision for taxes
Net

Unanimity

Nevertheless, it
by making

the

"Bills Only" Policy

on

.

.

..

.

income

on

.

.

.

$98,645,765

$ 4,000,625

6,300,000

1,875,000

$ 5,330,690

$ 2,125,625

••••••

profit before allowances

.

on

$78,210,289

$11,630,690

.

.......

.

Deduct—Increase in allowances

though the Federal Reserve Banks,
exchange into the 4%s due May 15, 1964, must
seems

1958

the

departure

No

June 23,

1959

the longest-term segment of the

to

long-term contracts

.

600,000

•

—

as

Net

profit—Amount

.....

.

.

.

.

.

$ 4,730,690

$ 2,125,625

$2.93

.

$1.33

have

had some concern as to how successful this issue and the
whole refunding operation was
doing to be. Also, there has been
considerable pressure from
Congressional sources to have the

Net profit—Per

Central

Banks operate in other than just
"Treasury bills" in
carrying out its management of the money markets.
The "bills only" policy of the
monetary authorities has been

under considerable discussion for

long period of time among the
most capable of money market
specialists and quite a few of them
do not see eye to eye with the Federal Reserve Board
on
this
matter.
There have been many occasions in the
past, and un¬

doubtedly there will be

share outstanding at the close of the period

The above information is based in

and is not

large part

many more

cates, notes and bonds of the Treasury had been part of the pic¬
ture.
It seems to be the opinion of not a few
money market
observers that the disagreement between the
Congress, the Treas¬
ury and the Federal Reserve Board as to how "open market"
operations should be conducted will not be readily resolved

even

though compromises may be in the making.

been revised, and those

as

The

4%'% certificate

interest in
since
and

the

A substantial part

large unit value, the performance of which

the

heavy.

Banks

were

the minds of most money market followers that the trend of
in¬
terest rates is still
upward, with the near-term rate quite likely
to lead the parade.
The light schedule of
offerings in the

extend

over

periods

as

long

several

as

subject to profit limitations and renegotiation to the extent that existing law and the contracts may provide and, in

years.
are

some cases,

to termination at the convenience of the Government.

The

Company records profits

basis, and

on

on

its long-term shipbuilding contracts through estimates

its other long-term contracts as billings are made thereon.

by such allowances

be

excess

paid for each

are

reduced

estimates, guarantee liabilities, unsettled contract adjustments and other factors.

by the allowances materialize.

therefor, the

the percenfage-of-completion

The

allowances reflect the reductions in Federal and state income taxes which would result if the matters'

reserved

as

on

The profits so estimated and recorded

be considered advisable, taking info account the stage of completion of each contract, possible

as may

increases in costs not included in the

the

principal owners of this issue
demand for short-term liquid obligations is still
very
In addition, there does not appear to be much doubt in

may

of the Company's business is with departments and agencies of the United States and the contracts therefor

materialize, the allowances

due

Aug. 15, 1960, attracted the largest
August refunding venture as was to be expected

the

Central

June 23, 1958 have since

Company's business consists largely of long-term ship construction, repair and conversion and hydraulic turbine and

other construction contracts of

covered

The*

as at

at June 29,1959 will be revised hereafter.

amounts

Short Rates to Continue

on

estimates and is subject to year-end audit, adjustments and charges

a

in the future, when the Fed¬
eral Reserve Banks could have conducted their
"open market"
operations in just as successful and as orderly a fashion if certifi¬

Pressure

upon

necessarjly indicative of the full year's results.. The underlying contract estimates

are

To the extent that the matters for which the allowances

included in income.

will reduce income in the

year upon

the profits

as

year

provided

were

do not

If such matters materialize in amounts exceeding the allowances provided

in which such matters materialize.

Federal and state income

estimated and recorded without consideration of the allowances.

faxes must

Such allowances

aggregated $4,175,000 at June 29, 1959, $3,575,000 at December 31, 1953 and $3,125,000 at June 23, 1953 and December

31, 1957.
Income from other contracts and orders is estimated and recorded
upon

as

billings

are

completion of each contract.

corporate bond market,
along with the not too heavy flotations in the tax-exempt
field,
well as the favorable
Treasury refunding, has improved the tone
or
these obligations.
In spite of this price betterment, they are
more attractive from
the income standpoint than are
long-term
as

made under the contracts
■.

or

recorded

-

Quarterly Statement of Billingsr Estimated Unbilled Balance
of Major Contracts and Number of

Government bonds.

Employees
Six Fiscal Months Ended

June 29,

Fiscal 1359 Federal Deficit

$12.5 Billion

Joint

statement of Robert B.
Anderson, Secretary of the
Treasury, and Maurice H. Stans, Director of the Bureau of the
Budget points out that the Federal Government's budget deficit for

fiscal

1959, which ended June 30, was $12.5 billion. Receipts for
year were slightly greater, and expenditures
slightly
smaller, than had been estimated in the budget last January.
the

Billings during the period from shipbuilding, ship conversions and
repairs, hydraulic turbines and other work .
.

Estimated balance of
of the

.

«

.

June 23,

1959

was

1958

$103,562,571

.

$83,110,167

$259,314,870

$380,627,622

major contracts unbilled at the close

period.

.

•

•

•

•

•

fiscal

The

preliminary year-end totals,-according to the monthly
budget statement for June, show receipts at $68.2 billion and-ex*
penditures at $80.7 billion. The deficit of $12.5 billion is
$330 mil*
lion less than the deficit estimated in
January.
The

estimates

results
and

for

with

fiscal

1959

year

results

for

as

compared

with

Equivalent number of employees, on a 40-hour basis, working
during the last week of the period
•
•
.

Since June 29, 1959 the

January

years 1956 through
1958 are
shown in the following table. The
figures for 1959 are based on
preliminary reports and are subject to later revision.

Company has received

submarines at prices aggregating
The

the

any

.

about $64,000,000.

a

•

•

«

.

*

33,155

_

.

—

11,470

contract for.the construction of two nuclear-powered Polaris missile
—•-

/

—

Company reports income from long-term shipbuilding contracts on the percentage-of-complefion basis; such income for

period will therefore vary from the billings

on

the contracts.

By Order of fhe Board of Directors
BUDGET TOTALS

(Fiscal

years.

July 22, J 959

In billions)
-1959-

1956

1957

1953

January

Actual

Actual

Actual

Estimate

$68.2

$71.0

$69.1

$68.0

66.5

Receipts

69.4

71.9

80.9

80.7

+1.6

+ 1.6

—2.3

—12.9

—12.5

Expenditures-

Surplus ( + )

or

deficit (—)




Actual
$68.2

is

Weingarten, president

treasurer,

Aaron,

Co.,

316

York

New

Of¬

are

&

securities business

a

offices

Street,

formerly
Henry G. Walter, Presi¬
California Company.
dent, and L. S. Brown," Secretary.
was

Arrin

engaging in

not

Investors

V.

Doren is now affiliated with Keller

S, Schott

is now associated with the firm's
Research Department as a

»

19

With Keller Bros.

Bear, Stearns & Co., One Wall
Street, New York City, members
of the New York Stock
Exchange,

William
W. Irwin has been added to the
staff of Hill & Co., Garew Tower,
members of the "New York and

By JOHN T. CHIPPENDALE, JR.
The August .refunding
matter for the records and

Bear, Stearns

(431)

R. I. FLETCHER, Financial Vice

President

M.

Financial Chronicle

The Commercial and

20

..

.

Thursday, July 30, 1959

(432)

from 194,301 to 205,085 ders in three and one-half years, .
with unfilled orders amounting to
almost 13 weeks' output as compared with three weeks' inventory. Activity in the textile machinery industry, which a year
ago was severely depressed, is the
highest since 1956, allowing for
seasonal variation."
Caterpillar Tractor Crown Zeiler*
*
*
Monsanto
Blue Ridge Mutual Fund, Inc.
Chemical, Pfizer (Chas.) & Co. reports net assets of $33,337,868,
and United Aircraft Corp.
or $12.75 per share, on June 30,
In number of shares, the largest 195^ compared to assets of $27,purchases were Gulf States Util- 064,957, or $10.80 per share, on
ities, Union Pacific R. R. and In- june 39^ 1958. Major additions to
ternational Paper. Other pur- portfolio during the June quarter

Corp. 66,000 shares, Aluminum Co.
of America 10,000 shares, American Potash & Chemical Corp. 25,-

Mutual Funds

shares, Consolidated Natural
Co. 50,000 shares, Container

000
Gas

Regis

St.

shares,

Inc. 50,000 shares

Eastern Airlines,

and

25,000

America

of

Corp.
By ROBERT R. RICH

ers grew

during the twelve months.
Boeing and National Cash Register were eliminated from MIT's
portfolio in the latest quarter,
Other sales were Sunray MidContinent Oil, American-Marietta,
Seaboard Airline R. R., International Harvester, American Can,

50,000

Co.

Paper

shares.

Invading the Military

Power

a

younger

ahead.

Corporation; 35,000
shares of Standard Oil Company
of Sinclair Oil

can

holdings by industries at June 30
were:
public utilities, $35.3 mil-

oil and
gas,
$23.9
million, 8.3%; steel, $20.5 million,
7.1%; and electronics and electrical
equipment, $19.4 million,
6'7%<

-

Although the major holdings of
& Howard Stock Fund and

Eaton

Consumers

Power

Wisconsin

Electric

base

nature

Railroad

sales force: "Invest¬

on

Total

of

assets

net

Street

Williams

Fund

to

30, Dorsey

108

high of $28.9,542,000 at June
Richardson, President
of the fund, states in the semi¬
annual
report
to
stockholders.
This compares with total net as¬
of

and

marks

net

assets

$283,266,000

months
started

asset
30

$13.24

the fund

when

having
$258,075,000.

per

Corporation

first

share

dividual

on

on

from

tric

totalled
cents

on

July

29,

share.

1958,

equal

$4,566,000,

per

board

May

21

declared

investment
seven

its

income

cents

per

21.5

the fund

of

net

report

payable

unrealized

June

30

reveals

appreciation

amounted

to

realized

holding
June

011

Nickel

Company

Corporation, $5.2

that

of

as

stocks held and

common

signed

$37,372,000

of

the

lieved

30

of

which

economy

offer

to

.

those

the

de¬

areas

Also

Seven

new

portfolio

or

$21.58

shares

280

1958, to $200,591,092, or $23.28 per
share on the 8,616,290 shares outstanding June 30, 1959.
Invest-

short-term

gest

notes

investments

were

were:

Notes

and

Notes, Dec. 18,

\

in

mated

additions

General

to

the

Motors

were

U. S.

Treasury Bonds, Dresser In-

upon

request

Lord, Abbutt & Co.
—

Atlanta

—-

Los Angeles

4%s, 1977, and Inter$4 Preferred by

Paper

balanced

increase

a

Armstrong Cork, New

Jersey Zinc and Parke, Davis by
the
stock
fund; four classes of

the

portfolio bal¬
anced
between bonds and preferred stocks
selected
for
stability, and common stocks
selected for growth possibilities.

Prospectus

1959, by the bal-

anced fund. Other securities elim-

1

invests

Finance

be¬

A Balanced Investment Fund

Company

Seaboard

po¬

Business Shares




Big-

cash.

and

common

chase

Chicago

in com-

11.6% in preferred
stock, 9.8%
in corporate bonds
and 13.1% in U. S. Governments,
stock,

mon

are

American

—

of 65.5%

ments consisted

national

New York

$180,210,593,

share on the 8,349,outstanding June 30,

per

dustries Cv.

The

semi-annually,

reporting

in assets from

greatest

tential.

during the first six

months of 1959.

emphasize

to

publication for

correction."

Guardian

Mutual

Fund's

total

.

Was

fund.
a

of Texas

One

*

the

nation's

mutual

notable

17,000-share
Gas

pur-

'

,

*

*

maximum amount held last December. Major new purchases

and

Trust,

largest

*

*

months ahead.
According to a
mid-year report issued by Chairman Vinton C. Johnson, fire and
casualty companies are expected
1949
to report greater over-all earnings
Significant
decreases
in
oil this year than last, and life inholdings highlight mid-year re- surance firms, although facing a
ports by two funds of the Broad heavier tax burden as a result of
Street Group. In the three months the settlement of their Federal
ended June 30, National Investors income tax status, have been reCorp. disposed of a'-major part of lieved of this factor of uncerits shares in I^err-McGee Oil and tainty. Earnings of most portfolio
Amerada
Petroleum. Over the banks, reported Mr. Johnson, were
same period, Whitehall Fund, Inc. higher in the first half of 1959
eliminated Standard Oil of Cali- than in the same period of last
fornia from its portfolio.
Both year, and the outlook is for furfunds acquired Kaiser Aluminum ther earnings increases in the last
& Chemical as new investments, half.
Asset value of National InvesAs of June 30, the fund's total
tors gained 58%
to $115,571,704 net assets stood at $59,660,278, or
and assets per share rose nearly $8.92 per share, compared to $49,38% to $13.27 over the past twelve 211.243, or $7.45 per share, one

holders

for Sept. 25,

1959 to vote

proposed two-for-one stock
If approved, this will be the
third such split by the fund since
on

a

spiit.

months. Assets of Whitehall Fund

26%

increased
assets

per

to

$10,406,560 and

share grew by 12%

to

and

President

they should not overlook the poscibilitv that forces at work in the
economy

regenerate inflainfluences
which have
may

tionary
been dormant for some time past."
—

.;

*

out

*

the

received

by

Axe-Houghton

Survey,

"have reached a new high record,
and

tinental Casualty Co., $4,485,000;
Insurance Co. of North America,
$4,133,400, and Continental lin¬

Co., $4,133,400. The port-

life
htnTHiior'
casualty, 12%, and bank ng,

foll° breakdown by groups,

*^s~rance'
9%-

l

^ ■

1

1VT

LlOSeU-HjlU lNeWS
.

.

■

,

Tn-Continentai Corporations

investment assets have broken
Pas* *be $4" million mark for the
first time. The actual figuie as of
June 30 was $408,229,386, compared

*

manufacof nondurable goods," points

<tQrders

Travel-

Insurance Co., $4,874,875; ^Con-

surance

Chairman

Aetna Life

Insurance Co., $7,537,100;

Francis F.
Fred E.
Brown in their messages to shareowners
of the funds: "It seems
reasonable for investors to expect
future business expansion to proceed at a somewhat slower rate
than in recent months.
Even so,
Noted

RandolDh

Largest holdings and

their market values:
ers

inventories have been held
down by this unexpectedly sharp
increase in demand. These industries, including textiles, appear to
shares
outstanding, at June 30, be in the best position in several
1959.
This compares with assets years.
Even the woolen industry
of $1,149,844,598, or $10.98 on the
reports a brisk revival. Cotton
104,677,195
shares
of
one
year
mills are reported to be holding
earlier. The number of shareown- the highest total of new cloth or-

fund, reports total net assets of $1,539,750,862, or $14.10 per
share (including 120 capital gains
distribution)
on
the
110,150,489

ago,

year

during that period. Both
per share figures allow for capital gains distributions. Both assets figures set new records.
$12.93

turers

Investors

oldest

*

Transmission

by the stock fund.

Massachusetts

customer gives you an orhp aots nnnn vnur advirp

*
*
*
A mutual fund specializing in
jn order to bring share prices stocks of insurance companies and
down to a more attractive level,
banks, Century Shares Trust of
Fundamental Investors, Inc. has Boston looks forward to better
caiied a special meeting of sharethings in these fields over the

million;

were

thereby moder-

ating any

ment."

changes were made Bankers Trust Co., Merck & Co.,
in the portfolio during the second
Sears, Roebuck and Smith, Kline
quarter, Mr. Richardson said. & French by the stock fund; BorThese changes, he said, had the
den Co., Rochester Gas & Electric,
effect of reducing the number of
two
classes
of
U.
S.
Treasury

and that capital gains of $7,227,000
were

in¬

largest

stock

the

report,

Substantial

July 24.
fund's

the

was

frinj^ef

the balanced fund disclosed an in-

new

Aug. 14 to shareholders of record

The

of

crease

common

the

buying some insignificant
that
is of little conse-

be

reported

fund

a

hpt and

stock holdings by
groups: oil, 15.2%; power & light,
E. I. duPont de Nemours & Co.
13%; insurance, 5.4%; banking,
and Bristol Myers Company, each
5.1% and steel, 3.9%.
$4.9 million.
Other

net

dividend

share,

market value

Corporation, $6.6 million; In¬

tronics

on

fourth

the

lic Steel

addition the

In

of directors of

in

when

assets
of
$153,775,245 on June 30, 1959, a
50% rise over the $101,215,167 of
one
year' ago.
Assets per share
came to $24.56 on 6,261,072 shares
outstanding, - compared to $20.29
on
4,98^,772 on June 30,
1958.
Common jirstocks have risen from
78.5% to 84% of portfolio during
the
past year.
Largest industry
holdings: oil,
11.2%; power &
light, 8.3%; insurance, 6.8%; natural gas, 5.2% and chemical, 5%.

corpora¬

Canada, Ltd., $6.2 million; Repub¬
Corporation, $5.7 million;
General-Telephone and Elec¬

have

to

a

124

market, value

a

ternational

Income since the fund commenced
business

invested
of

$10,331,776. Other large hold¬
ings included Westinghouse Elec¬

investment

net

of

of

$13.73 compared to
March 31. Dividend dis¬

was

tributions

or

International Business Machines

13

with

value

stocks

tions,

over

$221,221,000

stocks

common

91.1%

was

common

operations.

Net

June

of

the

in

corporations. On March 31, the

fund

March 31

increase

31%

a

ago

on

$266,532,000,

30,

92.1% of total net assets, were in¬

a

vested

sets

Report

June

On

One

The
rose

new

in

include Bethlehem Steel, Burlingf°n Industries and Atchison,
qUence# He is usually entrusting
£°Peka
a
/Bai*way.
fund added something quite
substantial
to Holdings of General Motois have
its portfolio.
ur
integrity and good judg- been increased.

semi-annual

its

In

stock

the subject."

The Mutual Funds

stock

the

addition,

Southern Railway to

officer will invite an investment dealer to offer

lecture at the base

a

Dutton

„

"People will only do busi-

Funds-

$4.52 Pfd. and
Power. Both

Santa

&

or

the commanding

a

proportions and

^

^

John

distributors of Franklin Custodian

purchased Atchison, Topeka
Fe
and Union Pacific
as
new
investments In

funds

introduce themselves to this vast
should first obtain permission from the commanding offi¬

any

*
%
#
not share the view»
gtaff report of the Na.
tional Securities & Research Corp.,
«j-hat credit restraint will reverse
the uptrend in business. What it
w-^ d(^ -n Qur 0pinionj [s prolong
dQ

«We

noteg

net assets have increased by $2
from these two groups in the secness
you if you have given
million to more than $8 million
ond quarter (ended June 30) and
them good investment
advice
since its fiscal year began Nov. 1,
into several rails.
Eliminated by
good service, and have also dem- 1958. Assets per share rose from
the stock fund was Ohio Oil and
0nstrated to them that you have $17.59 to $21.32 over the same peSouthwestern Public Service. The
acfed
in
good
faith.
There
is riod- The fund has decreased its
balanced fund
^disposed of Phil- something very personal about the holdings of American Telephone
hps Petroleum Cv. Sub. 4%S) 1987, securities
business.
Remember, & Telegraph to less than half the

station; and it is suggested that the voluntary
of the Calvin Bullcck Accumulation Plan be stressed. Often

of

,

ides*°raiR^a ds \ nd&tire the period of ProsPeri^ by pre-

Franklin Almanac,

light

Rochester Gas & Electric, Detroit
Edison and American Viscose,
Largest sales were: American Airlines, National Tea, General Telephone & Electronics and Peoples
Gas Light & Coke,

Ppllties' railroads ana tire venting it from reaching boom

Observes

stocks, the two funds shifted away

ment dealers who might wish to

cer

Fund

Balanced

Howard

&

remained in oil and power &

Lines,

Export

American

were:

ruDDer.

^

Eaton

that voluntary
investment needs
of the soldier, sailor or airman. For one thing, he is allowed one
direct allotment from his pay. For another, he is enabled to make
investments irregularly if necessary and on a flexible basis.

market

Jvfj

*

*

"

plans are especially suited to the

This is Calvin Bullock's advice to its own

uti 1

stee 1
*

believes

organization

Bullock

Calvin

The

chemical, $26.7 mil-

lion, 12.2%;
lion,
9.3%;

the fund.
accumulation

Corporation,

largest common stock

five

The

chases: Aluminium Ltd., Armco
Steel, Atchison, Topeka & Santa
Fe
Atlantic Refining,
Bethlehem Steel, C. I. T. Finand®!* f-^umbla Broadcasting Systern, Consolidated Natural Gas,
Federated Department Stores,
Florida Power Corp., Ford Motor,
General Motors, Lily (Eli) & Co.
B , N at 1 on a 1 Steel Philips
Lamp, Repub ic S
, Southern
Railway and Unio
acific R. R.
The most important lndustry
groups by size of holdings at the
,

California; and 25,000 shares of

of

United States Steel

his earning
advance by

who faces the biggest period of
be, so to speak, recruited in

man

He

Steel Com-

pany; 30,000 shares of National
Steel
Corporation; 40,000 shares

the military man must consider the possibility that
inflation may cut deeply into the income he is counting on after
service days are over.
This, of course, gives the mutual fund
salesman a very strong talking point.
But the "temporary" mem¬
ber of the armed forces should not be neglected either.
He is
often

Union Company;

19,000 shares of Inland

fixed pension,

power

Co.; 14,000 shares of Florida
& Light Company; 20,000

shares of Grand

individuals who

other

Like

Company;

Beneficial ! Fi-

of

shares

nance

additional income.
ultimately face retirement and a

considerable

to

amount

can

shares of

quarter included 30,000
Arizona Public Service

50,000

the

during

securities

of

Sales

untouched by many mutual
funds is that of the armed forces. It is a big market. According
to i* recent study by the Army Times, there are more than 2,500,000 officers and men on active duty with the military services^.
Of this number, 46% are married. The families of military men
number no fewer than 1,200,000.
As Calvin Bullock Ltd. notes
in commenting
upon this market: "the astonishing purchasing
power of the services (has) not generally been recognized."
What kind of a potential customer is the military man?
The
study describes him as well educated, thoughtful and essentially
conservative.
That he is .concerned, about the future and the
protection of his family is amply substantiated by the fact that
military men carry $180,000,000 each year in life insurance alone.
This rather high figure suggests not only that members of the
armed forces have the money to invest but also the probability
that they may be nearir.g the saturation point for this type of
savings plan. If so, mutual funds could be the next step.
While just about anyone in the military is a potential target
for mutual fund sales., it is the middle-to-senior grade officers
and enlisted men who apparently offer the best opportunities.
Base pay among officers ranges, from something over $6,000 each
year for a captain
to more than $14,000 for a general officer.
This, of course, does not include special allowances or such addi¬
tional remuneration as hazard pay. In the case of sergeants who
have served many years, points out Calvin Bullock, longevity pay
that has been virtually

One market

to

$341,565,957

one

year

e?rljerf "go S'SLIt fn'
start °f 19°,9* SVS S i
i%liehtlv above
365,689, slightly above

the

same

Penod last year*
;
The corporation received $2,176,824 in new funds from 122,569
of common stock issued upon exercise of 96,511 warrants. The rate
of exercise
of warrants was
moderately lower than in the corresponding months of last year,
At June 30, there were

7,014,552

Volume

Number 5868

190

.

.

.

The Commercial

and Financial Chronicle

(433)
shares of Tri-Continental

outstanding.
reduced to
Assets

Warrants

$49.84

share

a

mid-year,
six
months

exercise

The 1959

been

amounted

at

$48.38
$41.30

common

had

1,034.674.

per

year

30,1958.

warrants,

86.5%

invested in

June

at

cotton, compared to last year's

,'•/:■;/

.

30, with

reporting this and other

portfolio

18.1%

was

he

foresees

cotton

stocks

common

By ARTHUR B. WALLACE

even

though the July carryover—mostly in government hands—is
estimated at 1,285,000,000 bushels; corn may hit a record
high of 4,224,450,000 bushels; and 14,000,000 bales of

assets

were

Tri-Continental's

Bank and Insurance Stocks

Wheat prices could average higher in the months ahead

Assuming

$44.78,
compared to $43.10 at the begin¬
ning of 1959 and $37.12 on June

per

Ciop Outlook

By ROGER W. BABSON

gain from
earlier
and

share

common

to

a

ago.

all

of

9.8%

in

electrical

and

electronics, 9.7% in oils and 8.6%
in
steels.
The
biggest holdings
(excluding
investment
in
TriContinental

Financial

Corpora¬
wholly-owned subsidiary)

tion, a
w~er e:

Minneapolis-Honeywell

Regulator, Florida Power & Light,
U. S. Steel, International Business
Machines, American Electric
Power, Republic Steel, Bethlehem
Steel, E. I. du Pont de Nemours
and Southern
V

' '

I

,

Company.

*

*

*

*

Organized in 1853, St. Paul Fire & Marine Insurance
Company
a remarkable record as
an underwriter in the
fire-casualty
field.
Since 1932, the company has shown
profits in
each year
except in 1957. It began business as a mutual, St. Paul
Mutual Insurance
Company, with a capital of $75,000. The present
-

-has had

In

insurance

prospects, Mr. Babson adds that

fall marketing
strengthening thereafter.

Corporation

dicated

net

reports
value

asset

of

Dividends

of 40c? per share were
paid March 31 and June 30. Each

consisted

of

150

per

share

ordinary income and 250
share net realized capital gain.

per

Oils dominated

the

of 1959

dicates

title

a

portfolio at

of

values:

Largest

their

indicated

Amerada Petroleum, $14,-

190,000; Standard Oil of New Jer¬
sey,
$9,012,500;
Louisiana
Land
and Exploration, $7,085,000; Rey¬
nolds Metals, $6,695,000; Superior
Oil
(California), $6,142,500;
Aluminium
Limited,
$4,550,000;
Texaco, $4,516,050, and E. I. du
Pont de Nemours, $4,224,500.
*

*

-f

Abacus Fund reports a net asset
value
of
$36,514,064,
equal
to

$42.67

share,

June 30, 1959,
compared to $29,287,843, equal to
$34.22
per
share
(adjusted)
on
per

June

1958,
and $33,564,167,
equal to $39.22 per share, on Dec.

31,

William

1958.

President
that

in

income

the

of

half

to

Jr.,

announces

of

1959

net

investments

from

amounted

Jacobs,

fund

first

the

K.

590

share
share in the

pared to 500 per

per

com¬
same

realized
gain, reports Jacobs, equalled 670
period
per

last

Net

year.

share for the six months

pared

to

loss

20

a

com¬

the

during

first half of 1958.
The

fund's

largest single hold¬

ing (excluding $9,404,025 in stock
of

Gatineau

controlled

shares

Power

affiliate)

of

its

Co.,

non-

384,200

was

New

England Electric
System, valued at $7,732,025.
Other dominant holdings were in
American

Radio

Machine

&

Phila¬

diver¬

and

more

gamble

only

*

serious

1959-1960

to

age

the

cast'

total

the

Roger W. Babson

1,155,000,000 bushels. This

1948-1957

from

the

but

7%

double

total

BERKELEY,

After

sup¬

more

this

national

of

will

be

the

July

down

1

supported at
rate of $1.81

average

bushel.

Thus

from

bulwarked,

I

the

1958

record

high, but
30% above average. With July 1
farm stocks the largest since
1943,
total barley supplies should
easily
suffice

for

1959-1960

An

Kett

business

from

offices

at

Telegraph Avenue.

partner

in

R.

Knowles,

limited

Hayden, Stone & Co.,

New York City, passed away June

29.


R.

Staats

&

Co.

and

debentures

30%

below the

There

age.

will

10-year

over

for

be

here

from

1958

and

Even

average.

I

so,

—

23%

down

below

expect

no

shortage of oats this season, since
July 1 farm stocks were at a
record

high of around 300,000,000

bushels.
down

The

to

rye

about

crop

be

may

21,400,000 bushels,

—a

third

5%

below average.

less than last year,

and
However, this

year's crop will suffice.
Corn,
U.

S.

great

of

in

would

may

be

29%

a

this

record

bushels,

above

the

of

3,251,064,000
Despite heavy consump¬
average

.

reserve

was

pany.

under

CCC

to

Another large crop of dry edible
beans is in prospect. Although the

crop,

of

18,434,000

smaller than the large

it

is

well

average

above

bags.

This

crop,

over,

will

easily

in

the

crop
a

U.

1959-1960

also

looks

S. outturn

of

plus

carry¬

over

needs

The

promising,
of

may

such

use

among

orders

for
to

the

undertake

or

Government

current

orders

(in

rice

with

50,000,000

Coverage

8

Inland Marine

Miscellaneous

9

6
15

—

7

The total non-life prex-nium volume in 1958

$149,000,000, and in that
ratio of 97.2%

expense

4%

Liability
Workmen's Compensation.

19

year

the

showed

was

company's

approximately

combined

loss

and

an

underwriting profit margin of
2.8%, a fully satisfactory showing in view of the poor industry
performance in underwriting. The combined ratio for the decade
ended with 1958 was
4.6%, a considerably better than average
performance with three bad industry underwriting years included
period.

An

important aid to the company's good underwriting record
the very low expense ratio, which for the five years
through

1958

averaged
good

as

3-8.4%.
a

Rew of

the larger units in the field can
After all, a favorable expense ratio, aver¬

result.

aged over^ period, is a sign of outstanding management. A car¬
rier is able to exercise a greater degree of control over its
expenses
than is the

with

case

its

losses, for there is a large element of the
(sinking of a ship, development
hurricane, etc.), whereas control of expenses spells capable

fortuitous connected
of

a

with losses

management.

Turning to the investment portion of St. Paul's operation we
following break-down of its assets into major categories:
3.3%
Common Stocks
34.2%

Cash
U.

S. Gov't

or

new

tools

and

advanced

which

are

to retain
machines

expected

to

be

required by reason of rapidly
changing and development manu¬

facturing
techniques
and
new
design requirements of the air¬
craft, missile and electronics in¬
dustries.

Connell
DENVER,

Obligations..

Other Bonds.
Preferred
For

2.4

OtherAfnvestments

49.2

Stocks

All

0.5

—

9.4

—0.5

St. Paul has been known as a municipal bond in¬
while they do have very large holdings in equities,
state and municipals are a heavily weighted
category. At the end
of 1958 bonds, exclusive of U. S.
Governments, constituted about
47.8% of the company's portfolio.
A year earlier it had been.
51.7%. Among the common stock holdings, consolidated, but not

vestor,

years

and

including

the life portfolio, were, at the last year-end, 18,70(1
Natural Gas; 27,000 Arkansas Louisiana
Gas; 36,400
Lighting & Power; 42,000 Louisville Gas & Electric;
32,000 Texas Utilities; 32,000 Minnesota Mining & Manufacturing;
39,000 Virginia Electric & Power, etc.
American
Houston

TEN-YEAR

STATISTICAL

RECORD

PER

—

Adjusted
Underwriting

Liq.
Value

Invested

Federal
Taxes

Earnings

Price

Range

Dividend

High

223/8

\

Low

16%

i

fr

1949—

$18.33

$1.77

$0.86

$0.68

$1.95

$0.55

1950—

19.98

1.16

0.96

0.35

1.81

0.65

231/s

20%

1951—

21.50

1.22

1.02

0.01

2.23

0.67

301/4

24%

I.

1952—

23.82

1.60

1.10

0.57

2.13

0.74

313/s

26%

I

1953—

i

1

25.56

0.13

1.17

0.91

1.57

0.78

313/4

24%

1954—- 29.90

0.37

1.23

0.20

1.40

0.87

45%

30%

1955—

32.80

0.60

1.34

0.28

1.66

0.93

551/4

43 %

1956—

37.83

0.60

1.30

0.06

1.83

1.02

52%

38%

i

56%

37%

(

593/4

43%

1957—

35.85

1958—

44.11

"Adjusted

1951;

for

$0.64

1.81

0.86
15%

and for 5-for-l

stock

split

0.01

1.94
dividend

in

May,

in

0.02

1957;

for

1.08

1.16
2.78

1.20

2-for-l split

and

100%

stock

dividend

1

1

l»

1944.

t Deficit.

Paul

St.

Fire

Marine's

&

unbroken

dividend

record

goe j

back to

1872, some 87 years, in which period the cash payment!
were
nearly $69,000,000, with stock dividends at about $21,500,000.
It is at present on an indicated rate of $1.30, and selling at abou t
58, at present the yield is approximately 21/4%.
The growtii
factor

is

clearly evident in the data in the above tabulation, m
underwriting profit, investment income,

which not only equity, but

dividend and market price are all comfortably above the 1949
The management of this unit is highly regarded.
on

I

SHARE*

Net

Income

data.

Coast Trip

Colo.

—

Robert

NATIONAL

J.

who, in addition to operating
firm, heads Estate
Inc., has departed for

securities

COMPARISON

two week California survey trip.
Connell will visit San Fran¬

cisco, Los Angeles and San Diego,
to study the possibilities of, in the

future,"

opening
branches
for
Planning, Inc., on the West

&

GRINDLA¥3

LIMITED

Amalgamating National Bank of huttmljQ.
and Grindlays Bank Ltd.

ANALYSIS

Planning,
Mr.

AND

BANK

Connell, Denver investment deal¬

Estate

1.5

Other Assets

Adjustment to Market

or

projects)
arising from
changes,
frequently abrupt, in procurement

policies and decisions,

1
f

Head Office:

26 BISHOPSGATE, LONDON, E.G3

N. Y. CITY

12

BANK STOCKS
Bulletin Available

London Branches:

54 PARLIAMENT
13

ST. JAMES'S
Nairobi;

STREET, S.W.I
SQUARE, S.W.I

13 St. James's Sq.; GHrtfl.

Trustee Depts.:

Rd.,

Ins.

ParUame^l

54

Dept.:

St.; Travel Dept.; 13 St. James's Sq.; IaTax Depts.: 54 Parliament Si. Of

Coast.

come

the

16,804,000

the
cover all

season.

The company

projects

•

1948-1957

v

addition

a

1958

Extended

proceeds of the sale of the

accept

an expected
heavy total
disappearance in 1959-1960, may
partly offset any corn pile-up.

outturn

per

other purposes, to
outstanding bank loans, to
meet capital
asset requirements,
to place the company in a position

a

into

$38.50

reduce

er,

siphoning
corn

at
'

funds,

of sizable
government

plus

stock

to the working capital of the com¬

season,
July
1
farm
were
the third largest for

big

General

debentures will initially be added

this

stocks

may

common

Net

and

have

corn

hit
4,224,450,000

crop

plus accrued in¬
1,
1959.
The
be
convertible

July

share.

ing

Rice

apparently

confidence

The

100%

from

its competitive position by acquir¬

Dry Beans, and
farmers

1979 at

into

no

also

1,000,000,000 bushels

29%

1,

terest

aver¬

dearth,
July 1
farm stocks were
relatively large.
From the smallest
acreage of oats
for
grain
since
1892,
farmers
probably-will harvest a crop of
however,

bags is 3%

Chester

record

and

indicated

Chester R. Knowles

a

subordinated debentures due July

loans and

2909

near

are

yields have cut flaxseed prospects
to about 27,600,000 bushels—down
sharply from
the
1958
outturn

supplies of

BERKELEY, Calif.—Stewart B.
Kett is engaging in a securities

year's 574,000,000

of

loan. Smaller output of other feed

Opens Office

be

Blyth & Co., Inc., yesterday (July
29)
offered publicly $10,000,000
Northrop Corp. 5% convertible

and poor

grains,

(Special to The Financial Chronicle)

ago.

could

underwriting group, headed

William

by

require¬

ments. A smaller
acreage

this

.

year

Staats-Blyth Group
Offers Northrop Debs.

the barley crop to be
414,000,000 bushels—12%

expect

below

Ocean Marine

12

Liability——.
Physical Damage
Straight Fire ;

find that

ahead.

around

20%

Auto

high.

the date. Somewhat less than half

•

last

Farm stocks still

a

wheat

Glenn, Jr., is conducting
Telegraph Avenue."'

a

outturn

age,

a

ties business from

a securi¬
offices at 2909

under

1959

prices could average higher in the"
months

Omitting from consideration St. Paul's life business, a dis¬
fire-casualty lines gave, at the end of 1958:

show

the

in force of about $406,;

tribution of the

8%

year

1958 had life coverage

Auto

is

Thus,

dis¬

of

The company is licensed to write business
in all states and in
Canada; and it is represented by over 12,800 agents and repre¬
sentatives.
: - :
'■
/ ■- ' ■!:•

an¬

the total 1959 crop should
easily suffice for all requirements.

crop

end
•;

boosts, U. S. farmers
cut planted acreage of

soybeans

annual

of

and will not glut the
market. The

1959

and at the

000,000.

in the

decade

a

nual acreage

of

than

bushels,
are

nearly

bushels. Barring severe crop dam¬

tion

D.

strengthen thereafter.

the

government hands

bushels.

Calif. —James

Most
in

were

1958

above

average

appearance.

stocks

during the peak of the marketing
season
this
fall,
but
should

is down

record

carryover

plies for 1959-1960

10-year

(Special to The Financial Chronicle)

amounted to 14,528,823 bales.
Cotton prices probably will ease

Including the

average.

July
1
1,285,000,000

about

Therefore,
the
hence should not

crop.

over

of wheat this year will be
around

20%

1959

well exceed

may

materially from the esti¬
mated
8,800,000 bales this year.
Only three years ago, the carry¬

outturn

about

season

numerous capital changes that
brought capital to
$25,583,662, consisting of 4,093,386 shares of $6.25 par
St. Paul Mercury Insurance is
wholly-owned (except
for directors'
qualifying shares); and in 1957, 297,397 of the 300,000
outstanding shares of Western Life. Insurance Co. of Montana,
were
acquired, and at the end of 1958 were carried at approxi¬
mately $10,725,000. This life unit had been incorporated in
1910,

differ

fore¬

that

which

J. D. Glenn Opens

more

spring than
high - per-acre

the

carryover a year

wheat

I

crop,

the

dam¬

spring-

Given

11,512,000 bales and the 10-yearof 14,136,000 bales. U. S.
consumption and exports in the

one crop.

year.

%

-

average

on

Barring

high

*

Soybeans

planted 28%

yields of recent years, the cotton
crop
could
be
about
14,000,000
bales, compared with last year's

that

mean

should

Foundry,

and

and

do

Corp. of America, Bristol-

Myers, Spiegel, Inc.
delphia and Reading.

-

;

Cotton

last.

farmers

on

30,

;

*

were

value each.

acreage to cotton this

production,

9.07 %.

bags.

U. S. farmers

estimated

and

000.000

supports.
These figures

major groups were chemical and
drug, 20.97%; metal and mining,
13.71%;
U.
S.
Treasury
Bills,
13.71%; and manufacturing and
holdings

This

taken in 1865.

was

There

the present

;

crop

the close of the period, amounting
to 36.06%
of total assets. Other

miscellaneous,

(100 pounds each) expected,
compared with the 1958 crop and
a
10-year average of around 47,-

total outturn second only

huge 1958' record.
spotlights
once again the

folly

bags

prospects in¬

crop

the

to

in¬

on

$124,072,330 or $37.47 per share of stock
outstanding
at
June
30,
1959.

payment

survey

not

United States & Foreign Securi¬
ties

not surprised that my first

am

sify

"■//

' 1

\>

I

Insurance Stocks

—

ST. PAUL FIRE & MARINE
INSURANCE COMPANY—
•

prices easing during the

followed by

season

in public

crop

11,512,000, is expected.

This Week

-

utilities,

21

Laird, Bissell 8 Meeds

With Baxter & Co.

Members New York Stock

(Special to The Financial Chronicle)

CLEVELAND,
is

Masisak
Baxter
merce

&

now

Ohio—Theodore
affiliated

with

Company, Union Com¬
Building.

Exchange

American Stock

Exchange

Members

120 BROADWAY, NEW YORK 5, N. Y.

Telephone:
Bell

BArclay 7-3500

Teletype

NY

1-1248-49

Specialists in Bank Stocks

13

St. James's

Bankers to the Government
UGANDA, ZANZIBAR

Sq.

in

: ADEN,

A SOMALELAND

WHOCKMYSA

Branches in:
INDIA, PAKISTAN, CEYLON,

BURMA,

TANGANYIKA, ZANZIBAR,

ADEN, SOMALILAND
NORTHERN AND

UGANDA,

PROTECTORATE

SOUTHERN RHODESIA.

|

Financial Chronicle

The Commercial and

22

.

.

Thursday, July 30, 1959

.

(434^
deposit aspect of the prob¬
already been discussed.

time

Continued jrom page

13

has

lem

the sales of gov¬
securities, I believe that

With respect to
ernment

Some Unsettled Issues

quidation of these securities were
much less powerful than the in¬
flationary effects of the increased
lending to the private sector so

Monetary Policy

in

strikingly illustrated
the period
of inflation and credit restriction
from the end of 1954 to the mid¬
dle of 1957, when financial inter¬
mediaries extended $47.9 billion
of
credit to the private sector,
bv the fact that during

they obtained only $0.8 billion, or
1.7% of the total, through sales

Resiliency of the Financial

The

System

and in¬
United States
have undergone a number of no¬
table changes in recent years. The
most
important of these is the
The financial structure

the

of

stitutions

great expansion of the public debt
and
the accompanying develop¬

of
government securities.
The
portfolio policies of most interme¬
diaries are relatively stable, and

ment of the government

they engage in comparatively lit¬
tle switching between government

growth of the government se¬
curities market and the increased

under

participation in it by nearly all
types of investors, together with
the
increased importance of fi¬
nancial
institutions, referred to
earlier, has increased the influ¬
ence
of
monetary
policy.
The
widely-held public debt is said to
have liked up the financial mar¬
kets of the country and provided
channels by which the effects of

securities and private debt

reasonably normal circumstances.
The other destabilizing element

funds by
the public between demand de¬
posits and claims against finan¬
discussed above, shifts of

intermediaries,

cial

to

appears

important.

have been more

Dur¬

ing the entire postwar period, in¬
shown a notable

terest rates have

interrupted

trend,

upward

brief and moderate

by

declines dur¬

ing recession periods. The
fixed
value
redeemable

stock of

claims
issued by intermediaries has in¬
creased substantially more rapidly
than demand deposits during this
period as a whole, and there is
that destabilizing
demand deposits
and such claims have occurred at
times. The most striking example
of this was in 1957, when there
evidence

some

between

shifts

was

unprecedently

an

crease

in

large

in¬

deposits at com¬
a time when the

time

mercial banks at

publicly-held demand

of

amount

deposits and currency actually de¬
clined. This suggests that depos¬
itors withdrew funds from check¬
ing accounts and put them in sav¬

ings accounts, the reason for this
behavior probably being the eas¬

ing of regulations by the Federal
Reserve and the Federal Deposit

to permit
higher
time deposits.

*. Insurance Corporation
commercial
interest

banks

rates

on

Controls

More

Are

to

pay

effects of
intermediaries sufficiently serious

extension

justify the

of Fed¬

eral Reserve controls to these in¬

stitutions, and, if so, what form
should

these

new

controls

Reserve

Federal

action

are

rap¬

idly communicated from one sec¬
of the economy to another.

tor

it is said that the new
institutional investors are very

Moreover,

in their portfolio
and that the volume of
funds they are willing to make
available may be greatly influ¬
enced by even small changes in

sophisticated

policies

rates of interest.

experience

we

few
has cast grave doubts upon

debt

the

during

had

years
this thesis.
lic

the

believe

I

have

last

The widely-held pub¬
has

indeed

served

to

spread the effects of monetary
policy throughout the economy,
but, more important, it has con¬
stituted a means of mobilizing the
existing supply of funds more ef¬
fectively in support of economic
activity at times when the supply
of new bank credit was being re¬
stricted
icies.
ment

by Federal Reserve pol¬
Transactions
in
govern¬

securities have
for

vehicle

served

as

a

transferring
funds
balances

take?

My own opinion is that, in gen¬
eral, intermediaries have not con¬
stituted
a
major breach in (the
armor of Federal
Reserve policy

need of funds.
Thus,
the
development
of
a
highly efficient government secu¬
rity market has increased consid¬
erably the mobility of funds and
has helped to create a situation in
tp spending units in

which

credit-tightening measures
Federal Reserve tend to
induce offsetting reactions in the
financial system which, in turn,
by

the

on

composition

shifts in the

These

portfolios have been a
systematic destabilizer, and we
can probably expect them to con¬
tinue in the future. This suggests
the
desirability
of
considering
methods of controlling—or at least
bank

of

that exerting

the

from holders of idle cash

Justified?

Are the destabilizing

to

securities

been argued

It has

market.

balance,
strongly inflationary and took a
good deal of the steam out of the
System's restrictive policy.
the process was,

that

Ill

this factor is

the li¬

deflationary effects of

the

direct

some

composition

over—tne

influence
of

bank

are
various
might be considered

There

portfolios.
methods that

accomplishing this purpose,
subject is too specialized
to be taken up at this time.
I do
believe that the destabilizing ef¬
fects of such portfolio shifting by
commercial banks are much more
serious than any of the activities
for

the

but

intermediaries
re¬
If I am right, it

financial

of

ferred to earlier.

suggests
controls

over

been

lack

the

that

of

direct

intermediaries

has

less serious defect of Fed¬

a

policy than its in¬
ability to exercise effective con¬
eral

Reserve

trol

commercial banks. Since

over

is
traditional

the commercial banking system

Reserve's

Federal

the

it should
something to
I might add,
however, that little can be done
about it as long as the Federal
of ^responsibility,

area

be

to

possible

do

correct this situation.

adheres to its traditional

Reserve

its

that

attitude

only

proper

the

control

function

is

to

supply.

If

brings

out

the above discussion
anything, it is that

control

over

of

is

credit

that this
mous

the

effective supply

what

is by no

control

with

money

is

needed

means

the

of

and

synono-

mortgages and increasing
bility of mortgage funds.
More
be

could

examples of this kind
given, but the point is

ing interest rates, the managers of
our financial system have demon¬

been

devel¬

credit conditions
years.
For example,

in recent
there has
been a notable increase in partici¬
pation in the Federal funds mar¬
ket
by banks; this has econo¬
ing

mized

the

use

of

reserves

and

given amount of re¬
serves to support a larger supply
of credit. Sales finance companies
permitted

have

a

rates

fact,

think there

as

I

are

shall

indicate,

other far




I

more se¬

result

ization

in

a

more

intensive

util¬

of the available supply

of

For

reasons

the past, and we can trust the in¬ ability would not turn out to be
genuity of our financial managers so large as to put an unbearable
to uncover still further economiz¬
strain
on
finncial markets
and

ing techniques.
There is not much that the Fed¬
eral

Reserve

about

do

can

this

complicate the Treasury's debt
management problems to an un¬
due
degree.
While availability
may be an independent factor in
the very short run, it is hard to

propensity of our financial system
to be ingenious;
it is simply a
cross that the system has to bear, believe that in the course of time
and one
that makes the imple¬ changes in the supply of funds
effective

of

mentation

monetary

somewhat more difficult.
Moreover, I do not, in general

policy
think

it

would

fere with these

wise

be

to

demand will not come

relative to

reflected

be

to

interest

in

rate

adjustments.

inter¬
The Problem of Lags

dvelopments even

possible to do so. These
However,
in addition to the
new techniques have served to in¬
problems just discussed, although
crease
the mobility of funds, re¬ not entirely independent of them,
duced interest rate differentials, as we shall
see, another serious
and caused our financial system to difficulty presents itself. Consid¬
perform more efficiently its basic erable evidence has accumulated
function
of
allocating
capital. in the last few years that what¬
Most of these developments have ever effects monetary policy may

if it were

probably not been quantitatively have are likely to be realized only
very significant in their impact after relatively long time lags.
A
on
monetary policy;
moreover, recent study by Professor Milton
the fact that many of them seem Friedman
covering
19
business
to be irreversible means that they
cycles from 1879 to 1954 has un¬

probably do not have an impor¬ covered consistent and rather long
tant systematic destabilizing ef¬
lags between turning points in the
fect. Some slight reduction in the time rate of change of the money
effectiveness of monetary policy
supply and turning points in gen¬
is

perhaps not too high a price to
for these improvements.
IV

Problems of

Insensitivity

now

to

which,

problems
constitutes

a

a

my opinion,
serious obstacle

more

to effective monetary

anything
to

of

of

we

I

now.

lack

to

sensitivity

policy than

of most types

income-generating

itures

to

interest

moderate
rates

and

expend¬

variations

credit

in

condi¬

tions, together with the long lags
that seem to characterize such ef¬
fects

as

are

The

cycles.

at

lag

average

points
was
12
of 5 to 21
Although I find such

turning
with

months

months.

a

range

purely
historical studies, unac¬
companied by any effort to ex¬

discussed up plain the nature and source of the
the apparent phenomena
somewhat less than

have

refer

group

At up¬

turning points, the lag aver¬
aged 16 months and ranged be¬
tween 13 and 24 months for speci¬

per

lower

of

in

turn

We

eral business conditions.6

fic

And Lags

present.

perfected
techniques
for
This is not an appropriate place
marketing commercial paper, and,
in particular, have succeeded in to undertake an extensive survey
loanable funds.
rious problems.
of the evidence
bearing on the
However, I be¬
devolping a market for such paper
lieve a case could be made for
Although mere are several ways among nonfinancial corporations probable
interest - elasticity
of
various income-generating expen¬
equalizing—or at least substan¬ in which transactions in govern¬
having surplus funds. Government
tially narrowing the
diture schedules. The basic source
difference ment securities may serve the
security dealers have likewise de¬
between reserve requirements on function
of
mobilizing loanable vised methods of tapping corpo¬ of insensitivity seems to be the
demand deposits and reserve reabout
the
future
funds, there is one type of oper¬ rate surplus funds. Both of these uncertainty
quirements on intermediary ation of this kind which seems latter
which is an inherent feature of
developments signalize the
claims in order to eliminate—or to be especially important. I refer
business
investment
decisions.
appearance of a more alert atti¬
reduce—the
destabilizing effects to the tendency of commercial tude on the
This uncertainty requires compen¬
part of
corporate
of shifts between the two.
This
banks to build up their liquidity
sation and probably causes busi¬
treasurers
toward
the
manage¬
could be accomplished partly by
by accumulating large quantities ment of their
liquid reserves. As nessmen, in general, to undertake
reducing reserve requirements for of short-term government secu¬
a
result of the increased partici¬ only those projects which promise
demand
deposits as the oppor¬ rities during periods of recession
pation of life insurance companies a fairly high rate of return. As
tunity arises during recession pe¬ and easy money, as they did in
operating on a national scale as the matter has sometimes been
riods or when additional reserves
1953-54,
and later to liquidate well as the
easing of geographical put, if a project is so marginal
need to be supplied.
There are these
securities
and
shift
into restrictions on the
investment of that the prospective profit on it
good arguments for this on other loans in times of inflation and
funds by savings and loan asso¬ would be imperiled by a one-or
grounds as well, and, as we all monetary restriction, as happened
2% rise in the rate of interest, it
ciations
and
the
establishment
in
1955-57.
The importance
of
probably would not have been
know, the Federal Reserve has
the
Federal
National considered in the first place.
this factor is indicated by an ex¬ through
The
been moving modestly in this di¬
amination of the latter period.
Mortgage Association of a second¬ insensitivity attributable to un¬
rection.
In
addition, I think a
certainty is reinforced by institu¬
From the end of 1954 to
the ary market for FHA-insured and
case could be made for increas¬
tional factors, including the fact
middle of 1957, when the System VA-quaranteed
mortgages, con¬
that today a very high proportion
ing the reserve requirements ap¬ was following a restrictive policy,
siderable progress has been made
of investment is financed out of
plicable to time deposits at com¬ commercial banks expanded their
in
broadening the market for retained earnings and deprecia¬
mercial banks and, on grounds of loaris and holdings of private and
tion allowances an dis therefore
state and local government secu¬
5 Analytically,
the
problem
can
be
equity, as well as to strengthen rities
by $22.5 billion. ,The money stated as follows: Sales of government not directly subject to the disci¬
monetary controls, for extending supply (demand deposits and cur¬ securities to holders of idle cash balances pline of the market, and the fact
result
in
the
destruction
of
such
bal¬
that in very many cases such in¬
the requirements to nonbank fi¬ rency) actually declined over this
ances, while the ensuing loans to private
period by $1.2 billion. The funds spending units create balances which creases in interest costs as may
nancial intermediaries as well. We
occur
can
be passed on to cus¬
promptly become active. Thus, the banks
to
finance
this
tremendous
ex¬
should forget the fiction—which
act
agents in the process of dishoard¬
tomers through increases in prices.
pansion of private loans and se¬ ing. Since both new money creation and
never
did have
a
very
logical curities were obtained from two dishoarding are means of financing po¬ There is a fairly impressive body
of empirical evidence to support
foundation—that
sources for the most part.
legal
reserves
Banks tentially destabilizing excesses of ex ante
investment over ex ante saving, it is just
the insensitivity thesis.
obtained $14.5 billion by selling
are designed to preserve liquidity,
as
legitimate for the central bank
to
off Treasury securities to other control dishoarding as to control money
In
response
to the accumula¬
and recognize them for what they
investor groups, and they obtained creation, particularly when the commer¬ tion of evidence that expenditures
cial banking system, which is the central
are: the fulcrum of monetary pol¬
another $7.0 billion from an ex¬
are
insensitive to interest rates,
bank's traditional
province of responsi¬
the supporters of monetary policy
icy.
pansion of their time deposits. The bility, is involved in the process.

•—in

borrowers.

on

indicated earlier, however, it

has
ingenuity in devising proved to be rather difficult to
control the availability of credit
getting more financial
because of the offsetting reactions
mileage out of the existing supply
of the financial system.
of funds.
Moreover, changes of
If methods could in fact be de¬
this kind, once wrought because
vised which would permit really
a permanent part of the financial
system—we will certainly never effective control of the supply of
return to the simpler and less so¬ credit,
the availability doctrine
phisticated arrangements that for¬ might come into its own.
But it
merly prevailed. In future periods is by no means certain that the
of credit restriction, these methods fluctuations in interest rates that
of economizing funds are likely to would be a by-product of relly
be used even more widely than in effective control of credit avail¬

of the

have

Reserve policy may have on the
availability of funds and deemphasized the effects of interest

of

means

In addition to the increased im¬

funds

some¬

strated great

portance and improved efficiency

oped under the impact of tighten¬

their position

They have in recent years
stressed the effects that Federal

pay

government securities mar¬
ket, just referred to, a number of
other
means
of
economizing

shifted

have

what.

sufficiently clear. Under the pres¬
sure of credit restriction'and ris¬

money

supply.6

loanable

the mo¬

I think these
suggestive, particu¬
light of the results of

convincing,

100%

findings

larly

are

in

other recent studies.

Actually, the problem of lags is
in a
very
complex
with the question of sen¬

interrelated
fashion

and also with the resil¬
the financial
system
referred to earlier.
The lag in

sitivity

of

iency

monetary policy can be broken
into
three
additive components:
the

it

time

ities

takes for the author¬

action

that

recognize

to

is

needed, the time required to ini¬
tiate the necessary action, and the
time

required
its

exert

effect

action

the

for

the

on

to

economy.

convenience, we shall refer
recognition lag. the

For

to these as the

administrative lag, and the opera¬

The rec¬

respectively.

tional lag,

ognition
lag
has
undoubtedly
been growing shorter as the Fed¬
eral Reserve's speed in collecting
and skill in interpreting statistics
increased;

has

it could,

in

prin¬

ciple,
be negative if economic
forecasting
were
a
sufficiently

dependable instrument so that the
authorities dared base significant

policy actions upon it.
However,
even though the Federal Reserve
may

recognize quite promptly the

need

begin, let us

to

say,

re¬

a

is rarely

pos¬

sible to visualize,with much

clar¬

strictive

policy, it

ity at the beginning

how power¬

ful are the forces it must

combat.

as

In

consequence,

6 Milton

Friedman,

it

is

"The

likely

to

Supply

of

and Changes in Prices and Out¬
in The Relationship of Prices to
Economic Stability and Growth, Compen¬

Money

put,"
dium

of

Submitted by Panelists
before the Joint Economic
(Washington: Government

Papers

Appearing

Committee

[Volume 190

Number

5868

.

.

.

The Commercial and Financial Chronicle

(485)
proceed cautiously and tentative¬
ly at first.
The

administrative

lag
for
monetary policy is usually
ac¬
knowledged to be quite short,
since

the

great
and

Federal

deal

a

Reserve

has

a

of

policy discretion
flexible administra¬

yery

tive organization. In
is true, but I believe

a

sense

this

it needs to
be qualified considerably.
This is
where
the degree of sensitivity

of

ence

sectors

some

affected

rather strongly

sonably

promptly-

controls

—

the

by

main

that

are

and rea¬
monetary

instance

of

this

being residential construc¬
tion, the sensitivity of which is
mainly due to the existence of
ceilings on the interest rates that
may be charged on FHA-insured
and

VA-guaranteed mortgages.
Suggests Solution

.

financial

the

picture.

the

effects

work

system, comes into
To the extent that
of

through

expenditure
interest

monetary

interest

schedules

policy
if

rates,
are

very

inelastic, it will take
large changes in interest rates to
-

accomplish
the
desired
effects.
And, if the financial system is

a

with

work
out

on

aggregate demand with¬

an intolerably high
unemployment and underutilization of capacity. We

level

of

must

is

recognize
distribution

contest.

we

help
tighten

last

few

Reserve

control

plastic

prevent the

not

destabilizing portfolio

referred

earlier.

to

the

over

This

when

cent

part

of

the

infla¬

experienced in the
years has been due
to
demand.

With the Dow Industrial
at

ages

it has

as

as

during

been

is

re¬

inflationary periods, it does
provide

very

firm

which

to

a

within

level

all

an

time

enthusiasm
for

frame¬
conduct

aver¬

peak,

is

at

stock

common

a

when
high

invest¬

ment, and in these lush days when
it

is

cinch

a

for

almost

Furthermore, curities salesman
demand

aggregate

work

This Is the Time

national

have

excessive

the supply of bank credit by
instituting some kind of controls
over
bank portfolios in order to
over

shifts

of

By JOHN DUTTON

problem

contest

a

However, I believe that public

important

an

tion

Federal

that the

by-product of

a

the first

place, I believe it would
considerably if we could

Securities Salesman's Corner

producing

the

What can be done to overcome
expenditures to credit condi¬
tions, as well as the resiliency of the problems just referred to? In
the

If this problem is real¬
serious one, it cannot be dealt
by means of policies which

pressures.

ly

income and set up procedures for
the
orderly adjudication of this

of

commission

a

in

up

the

four

month,

every

counsels

to

any

bring

check

that

figures

the

way

almost

fellow

moderation

and

se¬

home

is

who

caution

hardly be too popular. Be that
would
increase
the
speed with wage negotiations and arrive at as it may, there are a few words
which
the
effective
strongly
resilient
as
discussed
supply
of price
decisions.
When
demand of warning that have been taken
earlier in this paper, it may well bank credit could be brought un¬ adapts itself readily to changes in from the
experiences of other bull
More generally, the the level of costs, employers have markets that
take operations—say, in the open der control.
may not be amiss at
market—on a very large scale to length of the administrative lag is little incentive to resist exceusive this time.
If the shoe fits then
produce the necessary effects, not probably dependent to a consider¬ wage demands and unions have wear it—if you disagree that's up
only on interest rates, but on the able degree upon the types of little incentive not to make such to you—and if you are an in¬
credit instruments
availability
of
credit from
the
employed, and demands, since both parties feel vestor reading this column, or a
this suggests
the desirability of that,
commercial banks.
In
if necessary, any rise in salesman who makes his living
practice,
it may be necessary to proceed trying to find or devise controls costs which results can be passed
selling securities, and the obser¬
involving shorter lags than those on through price increases.
vations we pass along to you this
slowly in conducting such opera¬
now in use.
week
have
some
semblance
tions, partly because of the dan¬
of
Thus, it is still very important
merit (in your opinion as well as
-Another possibility, of
ger of accentuating the Treasury's
course, to perfect our controls over ag¬
debt
be
so
to
management problems, but would
improve
our
gregate
demand
and
its major ours) that also is up to you. It's
a
also1—and more important, in my methods of forecasting that action
free country and you can still
subdivisions so that they will take
opinion—to prevent serious dis¬ could be initiated sufficiently in effect quickly and in a predict¬ think as you wish.
ruption of financial markets gen¬ advance of the need for it to able fashion. As I have
indicated,
Bull Markets Bring Out
erally.
In other words, even if overcome the remaining lags. This I believe the most serious diffi¬
the System knew from the outset may well be the eventual
Questionable Underwritings
solution, culties with monetary policy are
precisely the position it needed but for the near future it is not the excessive resiliency of the
When profits are quickly avail¬
to get to in terms of interest rates a very promising
possibility, since financial system which causes it able, and new issues are going
credit

and

conditions,

it

might
take considerable time to get there

to

without

ment

disrupting

forecasting would have to be very
good indeed—vastly better than it
security is now—before official policy ac¬

the

markets.

Finally,
tional

we come

lag.

This

tween the effects

is
on

to the opera¬
the lag be¬
interest rates

tions could be based upon it.
If the lags are long and intrac-

ing

equipment

months

for

outlays,

consumer

credit,

two

When all these factors

into

account,
that the picture
en

it'
we

are

seems

to

•'automatic" system; moreover, to
be

realistic about

tak¬
me

get of mone¬

lieve

such

ghost

and

three months for inventories.7

of

Political

it, I do not be¬

an

arrangement has

a

chance

realities,

increasing public

a

politically.
including an

insistence

on

a

degree of stability that may per¬
haps
be
virtually unattainable,

policy as device for main¬ mean
that discretionary policy is
taining economic stability is not
here to stay.
very reassuring.
It is not at all
Another possibility is that we
difficult to imagine a situation in
which it would require
two or might be able to design compli¬
cated policy prescriptions which
three years for a monetary policy
take the lags into account.
This
as strong as the authorities dared
could perhaps be done if we had
to put into effect to come to grips
a pretty
good idea what the lags
with a serious inflationary situa¬
tion.
In fact, I believe something involved in our policy weapons
were, but it would also require a
of this sort occurred in the 1955knowledge
of
the
57 period — and I am not sure considerable
structure of the economy includ¬
monetary policy had much effect
ing the lags in its reactions.
For
on the economy as a whole even
the
near
future, this approach,
at the end of this period.
More¬
tary

over, if a restrictive policy does
eventually take hold, its effects
may very well carry over for a

considerable time after the infla¬

tionary
a

situation

has

ended

recession is under way.

and

In fact,

like

reliance

on

forecasting, is
wholly impracticable.
I do not pretend to know what
the
answer
to
this problem
is.
For

lags

one

is

thing,
still

the

evidence

rather < meager

on

a

situation

of

this

kind,

ally as bad as this, but it is cer¬
tainly not. impossible. The situa¬
tion is partly saved by the exist¬

and

358-74.



of

actions

slow down the achieve¬
the

desired

effect,

and,
related to this, the existence of
insensitivity and rather lengthy

can

out the

window, it is

a very

sim¬

ple matter to look like a hero.
Customers buy a new issue today
and sell it out a few days later at
a

profit.

locate

Securities salesmen
issues

new

and

ration

al¬

doubtless

be

Although

push

the

inflation arising from wage

are

count

the

well

sound,

profitable
the

uranium

fingers

of

financed,

producers

on

two hands.
down the
drain.
What happened to all the
little
people
who
bought
into
these ventures? If you have been
around even a few years you will
The

know.
that

The

the

your

have

rest

gone

S.E.C.

facts

only

told,

are

assures

but who

read the prospectus?

The market keeps on climbing,
a rash of new underwriters is

and

once

again making its appearance.

Whether it is

a

ida land deal;

promotional Flor¬

electronic com¬
with big debts, high hopes,
precious little working capi¬
tal; or some other proposition that
an

pany

and

^

for the moment

lic

fancy,

if

appeals to the pub¬

security
salesman who expects to stay in
this business, or an investor who
you

are

a

would like to be around and still
be

able

invest

to

when

some

of

the current foolishness is over—I
would

thing

like
—

to

just

suggest

one

READ THE PROSPEC¬

TUS.

I

.

James Traviss to Join

out

are

Davidson & Go.
Davidson

with

attempts
to
management fees and profits. If
policy by im¬ such
happy days could last for¬
proving its unnecessarily cumber¬ ever what an easy way to make
some administration.
The lags in
a
living—we could all get rich.
fiscal policy are at least as long
The trouble with all these pleas¬
strengthen

those

as

involved_in

policy, but they
and

nature

amenable

are

seem

to

of

monetary
a

to

different
be

correction.

more

Fiscal

fiscal

is

probably shorter for
for monetary policy.

than

phones
New

destruction.

own

like

of

sort

City

parade.

a

James

First the

planned, and practical fi¬
Thus, the lag in monetary policy nancing comes to market and it is
is largely inherent in the structure successful.
Then the companies
of the economy and is therefore with greater financial problems,

cities

correct.

capital deficit, five years of man¬
in the absence of agerial problems, and a basketautonomous
pressures
from the full of bank loans, pledged receiv¬
cost side, to stay on the narrow ables, and hocked inventory,
path between inflation and unem¬ comes to market with a stock is¬
ployment and at the same time to sue and that sells out too. By this
achieve a reasonably satisfactory time, everybody wants to be an

fact,

balance in

even

the distribution

of

re¬

The

underwriter.

S.E.C. files

with

as
well
enterprise
to the
principal

the

United

States.

J.

sociated

Brooks

with

&

Company,

Goldman,

was

Sachs

Co. in their New York office.
is

Mr.

previously associated

was

S.

phones

Toronto. Prior thereto he

as¬

&
He

delegate-at-large for the Na¬
tional Security Traders Associa¬
a

tion.

Joins Eastern Inv.

!

(Special to The Financial Chronicle)

NORTH
Francis

W.

READING,
Rice is

now

Mass.—
affiliated

with Eastern Investment Corpora¬

tion, 213 Main Street. He was for¬
merly with Schirmer, Atherton &
Co.

Joins L. A. Caunter

are

private consump¬ jammed with prospective under¬
tion, private investment, and the writings, Finder's fees are avail¬
provision of government services able on every corner. Just find a
will surely tax the resources of company that can't pay its bills,
the best instruments, both mone¬ then locate an underwriter and
tary and fiscal, that we can hope pick up a finder's fee of $50,000
or $75,000
for your trouble. Why
to devise.
•
'
sources

in

Traviss

extremely difficult to deal with, and a much less promising future,
while the lag in fiscal policy being get on
the band wagon.
Their
more dependent on administrative
deals go "out the window" too.
Then the fellow with a working
arrangements, should be easier to
In

Traviss

The

well

to

York

as

within themselves the seeds

their

of

two

end

open

periods of activity in the in¬
vestment
business
is
that they
carry

will

maintain

ant

policy involves longer lags in the easier it is to sell a sound new is¬
initiation of the necessary action sue that
immediately goes to a
than
does
monetary policy, but. premium the greater the number
the lag between the time action is of
less
attractive
underwritings
taken and the time the economy is that
appear on the market. It is
affected

firm

fiscal

i

(Special to The Financial Chronicle)

among

CLEVELAND, Ohio—Robert E.
now connected with L. A.

Hines is

Caunter &

Co., Park Building.

With Central States Inv.

,

sell

think
(Special to The Financial Chronicle)

are

I

am

the

investors?

If

you

exaggerating this last

the underwriting, new
game, don't challenge me. I
can
show you the record right
smack in some recent S.E.C. pros¬
phase

Ohio—Theodore
Uehling is now affiliated with
Central
States
Investment
Co.,
Walpark Building.
MANSFIELD,

of

issue

they

pectuses;

(Special to The Financial Chronicle)

securities to investors?

sound

Where

With Central States

HAMILTON,
say a

question of cost-

of these fly-by-night compa¬
still alive today? You can

many

nies

are

there for

CLEVELAND, Ohio —Laura E.
Dingle has joined the staff of Cen¬
tral States Investment Co., Hanna
Building.

Butler, Wick Adds

all

(Special to The Financial

to see.

closing, I want to

about

rash of uranium stock issues. How

of

ways

combined

there

has

been

Ohio—Fred

added

Westheimer

and

to

the

Riley

staff

Company,
National Bank Building.

of

Chronicle)

Ohio—Arthur
I. Waldman has been added to the
staff of Butler, Wick & Co., Union
YOUNGSTOWN,

Then

(Special to The Financial Chronicle)

word

risk money begin to get into the
act. Several years ago we had a

allotments to preferred clients, all
the while carefully and scrupu¬

Westheimer Adds to Staff

Before

Invest in Values

to

& Company, 25 Ade¬
laide Street, West, Toronto, mem¬
overcoming lously avoiding anything that may
the
slightest
tinge
of bers of the Toronto and Canadian
these difficulties, at least in part, indicate
Stock
Ex¬
I believe we cannot hope for com¬ favoritism to anyone in a position
to favor them with business from
changes, about
plete
success
in
this
regard.
institutions, insurance companies,
August 17 will
Monetary policy is bound to fall
banks and other such buyers. It is
open a U.
S.
considerably short of the perfect
Department
instrument of economic stabiliza¬ all very nice. The customers are
under
the
happy with their quick capital
tion.
gains, the salesmen with their
management
This suggests that efforts to re¬
commissions,
and
last
but
not
of James A.
suscitate monetary policy should
Traviss.
least, the underwriters with their
The

felt.

selves

tion is deserves.

Concluding Comments
7 Thomas Mayer, "The Inflexibility of
Monetary Policy," Review of Economics
and Statistics, XL, November, 1958, pp.

thus

and

Reserve

the

problem may not be as seri¬
it is
ous as recent studies seem to
sug¬
perfectly possible for monetary
But I do not think it is a
policy to do more harm than good gest.
matter
that
can
properly
be
—that is, due to the lags involved,
brushed aside and wished out of
a
policy ostensibly designed to
stabilize the economy might ac¬ existence, and I urge all who are
interested in monetary policy give
tually accentuate instability. I do
it the respectful study and atten¬
not believe the situation is actu¬

in

Federal

nature, there is something lags in the mechanism by which
to be said for placing most of our
monetary
controls make them¬

reliance on automatic
stabilizers,
availability and the ef¬
fects
on
income-generating ex¬ together with an effort to create
inelastic expectations so that the
penditures.
For example, for a
construction project financed by automatic reactions of the private
sector would help to maintain sta¬
borrowing, it would consist of the
This approach already has
time elapsing between the rais¬ bility.
ing of the funds and the initia¬ important support, including Pro¬
tion of the project plus the aver¬ fessor Friedman, the Committee
for
Economic
Development to
age
time elapsing between the
initiation of the project and the some extent at least, and now,
actual expenditures.
This lag un¬ apparently, Professor Edward S.
Shaw.
We could give up discre¬
doubtedly
varies
a
great
deal
from one type of expenditure to tionary monetary policy entirely,
another and, in general, depends as Friedman and Shaw suggest,
and simply establish some arbi¬
upon
the circumstances existing
at the time.
A recent study by trary rule, such as that the money
Professor Thomas Mayer suggests supply should be increased by x%
I think it is too early
that this lag is perhaps roughly per year.
six months for residential con¬ to say that all is lost as far as
struction, something over a year discretionary monetary policy is
concerned and go over to such an
for other types
of construction,
about six months for manufactur¬

resist

tible in

and credit

23

Come

the

By this time all

Promotions

the little fel¬

lows with big ideas, a hole in the

First pocket and
tain

some

a

of

strong urge to ob¬
the other's

fellow's

National Bank Building,
of

the

New

York

Stock Exchanges.

and

members
Midwest

\

Energy
Aifect World's Oil Industry
•

of

that

the

l
United

states.
States.

dramatic,

per

in-

discussing nuclear power, I
shall,
for
the
present,
discuss
pbwer from the fission of heavy
jn

in

made

been

Ai

to that range within the

l

n

t two aecaaes.

aps

steady

tne

is
nas

wnicn

-Au-

„

m
tact,

tnira

a

tnougn

important,

less

ii

especially

energy,

be

might

to

appear

surprising in view of the

var-

by 196*3. They mvolve total

our engines and

atoms

jf^*

°c

&%

roniaiJISi

F
™

uranium

as

power

—

f, n£i i **n!t„

°

I

will find that not

uranium in reactors is in essence
a
method of concentrating the
cheap fuel energy of the Ohio and
Tennessee valleys into a form
which can be shipped economi-

fuel is which will come along in the nick
of time to help fossil fuels carry

plant, the Government has quite cally into areas where

atomic

from

power

fuels.

How-

ever> 1 think it is fair to say that
this research has uncovered as
many new problems, unsuspected
in the early days of rosy optimism,

nf ^rnw h of
H
w S as u has fully solved of the Proband thSk what RwonldIn to lems then recognized. That is not
nn? Ironomv if fhTc inrSaJ? fS surprising, because the military
I I

you

you

ohliit problems involved in producing

offininnktfht
eniciency, orougnt aooui

i^
in

menis

such

atomic

of

aspects

A

u-

have

energy

the process of converting heavy
fuel oil to more valuable products,
In view of the burgeoning demand for electric power, which
shows no signs of declining, and
which can no longer be cushioned
by great improvements in effir
ciency, I regard atomic energy not
as a competitor, but as something

coal consumption, is now used by

justifiably paid over half the cap- more expensive.
ernment, university, and indus- ital costs; in others, a substanIn view of this situation,
trial laboratories on the many tial part of the cost is being would seem desirable for us

J™l

^1

•»yw>n+c

If

I yield to no one in my admiration for the research done in gov-

et t iciencyot

tne

indeed, we may well lose much of
it to coal before we do to atomic

expenditures by utility companies the atomic industry, mainly in
of about $600,000,000 and nearly separating U235 from natural ura$300,000,000 by the Government, nium. The use of such enriched

check into them, however,
one of them
otner
metnoos
oi
utilizing
our from fusion of light atoms is much
qualifies under my definition of
tueis, wnicn in tne united states more distant, as will be pointed an unsubsidized commercial plant.
averages about tnreejoia since tne
out later.
For the first, the Shippingport, Pa.,

crease

it the burden.

^

cimni,,

as

.

„

A,

#

in the United States are, of course,
gasoline and heating oils, and they
seem well protected against nuclear competition. _ Atomic automobiles, trucks, and tractors seem

vears

J he

especially striking when
consider how little change

that

you

turned

Atomic

our

to

over

charges

who

Anyone

program.

energy is

Act

Energy

industry

private

Kieth Glennan, former President
of Case Institute of Technology,
and a former AEC commissioner,

SS 7oZ
^bllfandtn assured °P» economicallyco^eX^tb toe
solved" technica1f0™d°^ec(momic

preceding

last

the

one, In

1850

*or,, man7 centuries prior either arrant not know the Anv nri average best their csDitsl cost
does
facts or plants 99 At conventional thermal
thereto, the principal use for fuel jc
op

for

was

heating

the

In

homes.

invSment^n

vate

United States, coal was replacing
wood in some of the eastern cities;

commercial

A

H

m e

c a n

gtn^ration

power

in

years.

are economically harder products
to reThe
place. large-VOlume Oil products
The large-volume oil

.

e

_

;

course

we

a

'

to Ships likewise use residual fuel.
charged to research or shared by concentrate most of the research ^Atomic power is further from bea number of interested companies, and development work in this ing competitive in non-military
In others, the principal subsidy country on various possible meth- ship propulsion than it is in cenappears to be in the form of an ods of ultimately getting .nuclear tral stations today, but it will be
understanding with the state pub- Power at low cost, rather than to no great loss if we lose a moderlie utility commissions that, in the engage in a race to install kilo- in the
ate proportion the their 25
of of
next business
interest of Promoting progress, the watt capacity regardless of cost- Oil products will increasingly be
utility company will be permitted though many in Congress seem to
to. charge rates high enough to think that we should build more used for purposes where they will
insure a fair return on the heavy commercial plants, regardless of command a premium because they

a^ result
SS necessarily had priority
priority^during investment required. Some of the cost,consumers thp stnnHnnint or
and have the taxpayers nf
SSrJ«"If8"1most of the hectic years since the plants also have indirect subsidies Wnwpvpr from pay the difference
three times
much fuel to supply
a^a^the^research Achieve- in"the priceThey pav for uranFum However, from the standpoint of
the energy we use today. It would
m'ts in tbat
h
b
t
^
0r other fuels
in arrangements national prestige and aiding our
certainly relieve all unemploy- amazing
Until
about six
for processing
friends in Europe, we cannot nement among the coal miners and
^ntil ,a^ six years i^prcDcessmjg tne spent tuel for
research on types of reactors
quiet all concern about world oil
™n»ZY- surance
aisP°sa1' or ior » which might at home. interest
be of more
abroad than
SUI^uses*,
dental by-product of this military
Confirming this viewpoint,
growth in the use of fuel
The Effect of Atomic Energy
and

of our central station

total energy. We will merely continue

Pleted by 1960 and six or eight about 5% of this country's
mc,re

Thursday, July 30, 1959

.

power.
Certainly the oil industry is not
going to be disturbed if it should
lose all of this utility business in
the course of the next decade-

It is also interesting to note that
for a long time $6 come atomic
ious announcements of so-called energy will in this country be a
commercial plants, at least six of net consumer of conventional fuel,
which are supposed to be com- Some 20,000,000 tons per year, or
This statement

How Will Atomic

.

.

only 6.4%

keep
down
the
heavy
capital construction in the future of hycharges of the more expensive dro and conventional steam power
atomic plants.
■
plants."

Continued from first page

also

Chronicle

The Commercial and Financial

(436)

24

tLn

will be more
twice as much
as conventional plants and they
will show no saving in fuel costs

On the

this

With

entirely

Oil Industry

background,

engines

of

and

necessary

can

we

the question behigh cost of the
the heavy shielding

out

of the very

cause

to protect users against

iiS da^^i
"o^SonVe
°!0'af/y;nn" ™yf energy iro bSomf popular •
p
^ oource of 'n"rav will
Pb

VCTy
°n th6
Atomic airplanes for military
velopment of the domestic oil use are a possibility, but largely
business in the next 25 years. This because their unlimited range

ttepast
^^3? fXre will
^ w^d remained the principal ^^^^r^mo^S^ At Shippingport, & mere cost ™yt ^Ive^
Sme^cial "rplanefcostis much
country for seve'raf morTde°cades" ran?e bopes and public service of fabrication of the fuel elements, probable development of nuclear more important. I do not foresee
Life onthefa?mwas
much mouvfs,.than by any reasonable a" item sometimes overlooked
is ^ower over the latter half of that atomic airlines,
different from what it had been
profit
substantlal early ^p°!rted nl?nH much as the period, for the domestic some sta- transportation devices, the various
be^as
but let's look at industry, In connection with people tend
In Moses' time. The farmer had ncT1
'
cost steam
tistics
substantial
helo
from
anvthin^
!
pxanLs.
The principal oil market which to forget the relatively minor cost
except animal
Some 94%
Commercial Use Defined
I want to make clear that I am might be threatened by atomic of the fuel. The American Autoof the work of the world
done
In discussing the probable rate n°t objecting to the Government, power in the next two or three mobile Association recently reby the muscles of
and anidevel°Pment of the commercial the public utility commissions, or decades appears to be that of fuel leased figures showing that gasomals,
compared with less than use of atomic energy, I should de- the companies making these ar- for central generating stations, for Hoe and oil, combined, account
5% today.
Railroads and steam- fine what 1 m8an by commercial rangements to speed up this im- which heavy or residual fuel oil for less than a quarter of the cost
ships
barely getting started
use- Basically, I mean production portant development—it is a real is practically the only oil product of driving a car in the United
and
their
energy
consumption
P°wer at costs (including de- tribute to the progressive drive of involved.
States.
couldn't be found
Acthe chart
Preciation) that are competitive America; but I do think many of
The yield of residual fuel oil
In the case of airplanes, the picfrom
conventional the general public have been mis- obtained from the crude
or

not

,

,

■

n

-

,

^

..

,

power

was

men

as

were

--

-

on

.uuuu

The

.

with

first

electric

generating sta-

DOwer

run

ture

is

even

more

favorable.

in

cording to lhe 1957 financial reied into thinking that these pio- u.
S.
refineries
has;
declined
did not appear until the
port 0f united Air Lines, gasoline
subsidv
t use this criterion be- posed plants are expected to be steadily from 25% in 1946 to 13%
1880's.
and od acc0Unt for less than 15%
cause it is
to appraise commercially c o m pet 111 v e or in 1958. This is what might have
»
As these new devices came into
company's costs.
comnlicateri^ economic factors nearly so. However, I do consider been expected, given two facts. 0j
*Atomic locomotives are a possiwider use they created a tremenwUl affect th^rate of develop- »
unsound to build more such (l) that heavy fuel oil is our only bjut
but harci)y a probability.
dous market for coal At the turn mcnt^
without trvine to take into subsidized plants of similar design product which generally sells for
i£ th
couU be made the0tions

f

*s and without direct

or

indirect

harLnough

Sat

"he^cenfury°

of

best esUmates

are

that the burning of coal nrovided
about 70% of the
energy supply
of the United States.
However, as
the
century moved

along, that
percentage began to drop rapidly.
-.
*
•

/Ml
i

,4

•*
,

-

,

-

TcounT tL
nqi

Qnrl

lead

LStabL pohtf-

nthor

to

all

cealed

factors

sorts of

subsidies.

that

open

Most

miaht

or

of

con-

those

until we have learned what we less than the cost
can

from operating the ones

now

of the

and

new

is

o
technical

a

better de-

Ih^vield
the

of

cmde^ and
inaus

which

safe

y

yie

^he^more0 valuable

.

individuals, either in government velopments
0r ill niLiustiv,
in industry, who predict Uny
VL
wxiu yrcuiCT/ early
—
come.

th

sure

aie

^abjable
vaiudu

vaiuaui^,
.

-

larfjp^

ours

town

any

being built and can
tage

(2)

_e

of the less

The ucvriinc in yield
decline xii jAtiu
iDc

has
xiao

imagine

you

city being willing to

or

risk the wreck of an atomic locowoUwwthinitelimits.^

To summarize' trpmpnHmw
xt appea
xxrill

Ho

anrl

o

gas supplied a commercial development by pri-

(2) Sometime between 1968 and more than offset the rapid growth growing demand for liquid fuels
the
tt
q
JS proportion of vate enterprise are tacitly as- 1980 (the timing depending partly
domestic refinery runs during
^ various types for a long \
cnmhiAeH*
until the two suming such subsidies in one form on technological developments in the same period, so even the
come
and
that atomic
Water nnweJ
n0W i nea.increased, Qr another. I.am not implying that nuclear power and partly on the absolute quantity, of heavy fuel energ
y
A'
does
not constitute
any
Water power use also
some subsidies are net inctifiorl ir»
roln-Hno mvinn
lo
nil nrnducerl in nnr refineries has
y
Now all nresent
some subsidies are not justified in relative nrice trends of competi- oil produced in our refineries has
iul (-'u"SLll"L8
but I
ir}e V'/5;
fa/-o
ciiu
this important new field, but they tive fuels) a moderate, T x in- declined about 20% \xrViiln every 103.1 tlir6St tO tll6 U» S» 011 maas"
-frt/nlrt \ —.
dKnnf Ofl(%. while nxrnnr !eai
face
still
anH

™

another

atomic

Oil lllClUS""

competitor-

nevertheless
vertheless

nuclear energy. The big
question is: will it do to oil and
coal what oil has done to coal in
the last

How

Ip

half-century?

considering

matters
United

the

it

energy,
to

discuss

States

will
it

use

of

erable

to

I

know

discuss

it

in

detail

for

country before considering it

ditoent
For

nower

backfou"d of widely
countries °ther C°StS ™

larffe

rlw
ranefpe

vtxSr ^
1.

mnvpnfinnai

nlfntJ ?

ctffo

i

to

arrange

make

S?

rafes

financing
all

my

reasonable

at

taxes

nrofit

on

uidigiiig

rates
for

a

its

higher

no

a

modern

than

plant

necessary

using

con-

simplify ventional fuel. It would also have
under to take the customary safety
preThis is cautions, which are quite expenit better, sive, pay going prices for uranium
subject is or other fissionable material, and

partly because the
complicated that it seems pref-

f

t

value

its

the

011

by-product

basis

of

rather than for

its
use

plutonium
fuel

in

Defining unsubsidized

/t

i

S

value,

weapons.
eommer-

agree that.

steam
(iy There will be few, if any,
2
1? fuel-rich unsubsidized atomic power plants
auy' the cYst^1"" completed in the United States for
charges of 14%, purely commercial purposes beabout 9 mllls fore 1968- These <<few' if any"

depending

r

on size

and

Digitized for .*.ls nuelea:r energy from
FRASER
osidized plants
likely to get


u

mi/1.1

t

first

and

?

and

probable

other product has been increasing.
_

1—;

develoDment would

without subsidy in the higher cost heavy foreign elude, w
y
areas to utilize atomic fuels. How- more fuel oil. —
ever, no existing plants of reasonHowever, a mnre important facable efficiency would be shut tor working to-cushion this de^

J

■"■."7
co*It,ette4

-V'TTT-

would

of

y

^

^ bSirfor ^nu
^bmltfor many
ablAe areas*
.

+

will

Zill

rnns

iTfavor-

uears

years in javor

to

^

.

,

.

have

__

was pointed out by Mr.
Whelchel, of Pacific Gas and Elec-

£-s

tit^ beav^fuel
have

,

9 „

nprind
nlnnu

J

f

6 5%

In

oil

d
over

absolute
imports

fncreasld about fou?fold
1^fire!ben,iebaDtbeV
" de_
somewhat this year ^
m

But how much of this produc-

In lre distantsupply all the
tuture, when
not able to
d" andu Wc will xiiciiAe iiljuili
makp
liollid
we
win
uemdllQ,
Will maKc
liquid

oil

.

is

utaiicuiu,

wp

fue,s from coal>

ojl shai6j and tar

sands.

Seriously, I believe the greatest
of nUclear power on
the

effect

n

quiet the

industry win be to
of the rabid

demands

Zionists that

we

must

conserva-

conserve our

.

oil supplies because they are irreplaceable, irreplaceable as crude
oil, probably yes; but the world is,
for the first time' assured of the
adequacy of its liquid fuel supplies for the indefinite future.
To complete the picture for the
industry,

it

should

added
supplies

be

natUral gas currently

*

^ Srince' "53
he" "LeraUon Jf "nower' The abou? thr^ Hmes as much fSel to
Sf^utoe? "w/do not^K ^reeftale^so"
varie! central power stations; as doesml.
clear power to supplant power from 11 to 16% ^nd in 1958 was or about
18^j.
^
generated by hydro and conven14%.
Even the absolute amount equivalent.
Most of
,

tional steam stations.

con-

trary, when and as nuclear power
becomes economical, we believe it
will fit into

the

.

•

tb_at is

On the

nation's growing

be only at
points distant integrated power systems without
conventional, fuel supplies, displacing then-existing generatand wTith high load factors to
help ing facilities or preventing the

from

cline in yield has'been the grow-

and the principal effect on the ing imports
utility industry will be mainly
o
i]?%ernC£?*+ J* Sft

conditions.

partiy because

r

creasing, proportion of the larger

I consider that to commercial power plants in the The decline would'have been even
TTmH-n/J
Cf/ifoo
™..^.7J
u-.174.
cfreater harl xxre rtnf Twnnrtorl mnro
unsubsidTzed" a'Tom- United States may well be built greater tad we not imported more

—

aS

nower

commercial

Substitutable Is Atomic
Energy

atomic

one

subsidies.

Specifically,
."Hi!..

aualifv
mercial

have

timing of the growth in the

so

are
a\

or

natural gas is very
The important tfcing is that only cheap or where dump gas
isjavail14% of 19.5% (domestic yield plus able at low pnees durio^g.the sum
imports), or about 2.5% of our mer months to keep the Pipelines
total refinery crude runs, is used running full. The percentag
has

tended

to

decline since

1949.

for power generation in central
stations. In 1958 this generated

areas

where

used will tend to decline in tne
future, regardless of atomic en-

_

Volume

ergy,

190

Number 5868

field

as

prices

of

.

.

.

The Commercial and Financial Chronicle

tend

gas

to advance and underground stor¬

becomes

age

able for
of

the

The

more

generally avail¬

summer use

the ends

near

pipelines.

Picture in Other Countries

As to the effect on the foreign
oil industry, that depends
greatly
on the rate of
development of the
use of nuclear
power abroad, so I
of

first

proceed

to

discussion

a

those

problems, which 'greatly
increase the complexity of an al¬
ready complex, subject. There are,
however, a few important gener¬
alizations which
some

be

can

popular

made, and

misconceptions

which should be challenged.

Possibly
the
most
important
popular misconception is that nu¬
clear power offers great
promise
to

lift

tries

the

underdeveloped

result

tries

in

oil,

well

from

supply.

power

differences
of

coun¬

quickly out of the difficulties

which

the

inadequate

an

While

between
cost

and

gas,

there

these

and

are

coun¬

availablity

water

power,

as

in other

as

factors, in general
underdeveloped countries will

the

be

the

among

last

to

be

able

to

employ nuclear power to good ad¬
vantage. This is due to a com¬
bination of

reasons.

In the first

to

with

to

being

power,

competi¬

conventional

power,

needs to be installed in large units,
with high load factors and with¬
out

having

to

enough

of their pros¬

care

pective demand. In the last third
cf

century they have gone from
a major coal exporter to a

a

substantial
are

importer, though they

still

producing plenty of steam
Heavy fuei oil is being in¬

coal.

creasingly
costs*,

used,

little

a

incur

but

it

usually
involves

and

more

foreign exchange problems,
so
they have felt it necessary to
get
an
early
start
on
atomic
some

energy.

England

has

also

a
relatively
grid, so that
they can readily fit in large blocks
(100,000 KW or more) at various
strategic locations between large

high-density

power

cities.

They are also developing
capable suppliers of equipment,
parts, and fuel elements for these

plants,
and

well

as

waste

Geneva

fuel reprocessing
facilities. At

as

disposal

last

mated that

between

summer
they esti¬
they will build stations

and

now

1965

of close to

In

the

rest

expect

the

then-in¬

In

addition, England has

a

sub¬

stantial nuclear weapons program
for which they wanted to produce

United

States.

such

the

as

foreign exchange situ¬

To

appraise the effect

the oil

on

all

of that

the

in

to

seem

foreign
much

decline

last

oil

six

mean

This

that the free

industry

might

vulnerable

more

taken

has

years.

be

atomic

to

pdrcent

about

that

twice

of modern

coal-

energy

oil, and about the same
by natural gas. About

40% is generated by falling water
and over half by codl.

the

It therefore appears that even
heavy fired plants, but they figure that,
long-distance with the high burn-up of nuclear if atomic power becomes competi¬
transmission. This is, of course, fuel they now
confidently expect, tive somewhat more rapidly in
due to the high capital investment their cost
of fuel
will
actually most European countries than in
costs

and

losses

involved

in

of

nuclear

plants,

and

the fact that this cost per unit

output drops

rather

increasing size. A
England, which has
oped, high density
mission

grid,

of

rapidly with
like

country

well-devel¬

a

base

with

load,

load

a

and

factor

of

75

80%.

or

underdeveloped coun¬
other hand, really
need
power
plants of relatively
modest size at scattered locations,
and can scarcely expect to have
a high load factor for many
years.

Furthermore,
power

were

petitive

if

even

close

under

to

the

nuclear

being

com¬

circumstances

prevailing in these countries, the
high
investment cost
at
least
—

twice

that

of conventional

plants

of similar size—means that under¬

developed
better
in

use

other

countries

would

for their limited

fields

and

have

capital

would

prefer
slightly higher direct oper¬
ating costs. They could not justify,
to pay

even

for government-owned facil¬

ities,

as

tal

low total charges for capi¬
the

as

9%

which

England

currently figures for interest plus
depreciation—apparently they in¬
clude nothing for local taxes or
insurance.

domestic

facture

for

cost

and

plants for the
maintenance

manu¬

of

the

large amount of special equipment
and supplies needed by nuclear
plants, and of facilities for re¬
working

Most
trial

of

not

Their

would

be

not

for

of

needs

Europe
are
on the prob¬

are

in

general

good,

as

they will

so

general lag behind England
five

to

years.

eight

in

some

Since

atomic

energy
will,
as
in
the
States, mainly be used to
care of the growth and will
probably not shut down any rea¬

sonably efficient existing plants,
though it may tend to cut down
their

load factors.

Except for Canada, whose situa¬
tion

recent

of

of the

action

SENN

companies

power

in

Italy, at the instigation, and with
the help, of the World Bank, has
been particularly gratifying, and
might well serve as a model for
future

projects in European

the

the

In

first

contract

on

coun¬

place, they

the

basis

of

let
real

international

competitive
b i d s.
These were analyzed very care¬
fully by a study group, which was

is

as

and

much

like

that

the

of

of

cause

the

the

existence

of

been

as

not

for

look

generation

would

be

not

KW

that the
far

too

it

—-

was

project

from

eco¬

important
precedent that there

and
as

150,000
so

a

was.

it may seem,

as

this

Net

the

in

very

tional

and

in

at

power

see

many

difficult

One

plant

For

ties,

one

year

in

a

New

ended March

Upon completion of the current
sale

of

the

common

shares, out¬

capitalization

standing

consist

im¬

company

will

our

shares of

common

portant point, and that is that

on

Vernon,

$645,581 and net profit of $66,641.

from fusion,

to emphasize

Mount
the

principal

carried

sidiaries had consolidated sales of

others of the possibili¬

serves

microwave

of

31, 1959 the company and its sub¬

The existence of the possibility

like many

field

company's

are

in

York.

and

energy

The

operations

possibility.

controlled

Microwave Co., Inc. te

the

in

energy.

economic problems in this, but at
least it is something that a mere

of

capital

expansion.

ment

can

technical

used

equipment and machinery,
certain loans, for plant

Douglas

of

generation.

be

engaged in designing, manufac-'
turing
and
selling
microwave
components and test equipment,
as well as
research and develop¬

generating steam
high pressures and using this

for

the sale of

will

additions and for working

power

large underground cav¬
in salt domes or beds—

means

a

from

shares

retire

to

erns—say
as

proceeds

common

by the company for various cor¬
porate
purposes,
including
re¬
search
and
development,
addi¬

the explosion of fusion bombs

use

The offering has been,

completed.

did

source

July

share.

per

a

or

of

of

the

315,000

stock.

countries
due

Let Us Follow Where

near

oil

in

involved,

in

The Swiss Lead!

some

their inability to

to

"It may

small
care

diesel
of

installations

their

immediate

to

of

at

this

lower

costs, and avoid the heavy
expense and technical difficulties
of

on nuclear power at
of its developments

stage

the

the

much

in

as

is

the

nothing

fuel,

or

light

heating

though not

as

where

much

far

oils.

lighter.

crude

averages

nu¬

—

What

primarily

be

unions,

remarkable un¬
needs of the economy as a
small inflation Switzerland has had,

of higher-priced import
world-wide softening of the will to
resist, of a tendency to work less and earn more.
"We must make up our mind: Sound money and
full employment and ever-increasing wages cannot
go together. We can count on and must encourage
a conservative and courageous policy of the central
banks, free of all political pressures. We must ac¬
cept eventually a period of higher interest rates—
dictated by the market—and we must insist on a
balanced government budget. But most of all should
we
frankly and categorically resist any further
automatic wage increases, and abolish any shortterm escalator clauses. Higher productivity then
will be able to keep prices down and money sound,
provided that management will finally feel the
moral responsibility to pass technical progress on
to the consumer in the form of lower prices."—Dr.
Alfred Schaeffer, Chief General Manager of the
goods and of

in the United

as

the

must

the part of labor

has been the consequence

siderably further in that direction,
States

on

of whose leaders—and sometimes even rank-

whole.

sight

to indicate that atomic energy can
cut into the market for gasoline,
diesel

development

derstanding for the

United

in

her economy to price devel¬

and-file members—often possess a

of our
abroad is

picture

same

States—there

exposes

favorable

many

As to the other products

industry,

strongly

ascribed to moderation

working

this

be of interest to raise the question why
Switzerland, whose large foreign

nations

opments abroad, in her cost-of-living index got
away
with a
relatively modest rise to
106
(1953=100), while this index now stands at 108 in
the USA, 110 in Germany, 121 in England, and
128 in France. It is practically beyond doubt that

take

needs

all

trade

economics
that

economical

from

he

York

New

28 offered 100,000
shares of Douglas Microwave Co.,
Inc. common stock at a price of $3

amount

that

of

Co.

&

Simmons

Chyvon

only thing which
nonphysicist, can conceive
of as ever solving the tremendous
problems, would be to actually
1,

higher yields of light products to
continue, and they could go con¬

—

Geneva

the

Douglas Microwave Go.
Stock Offer Completed

this century. The

I look for the recent trend toward

enough

has

anything like a break¬
through having been achieved. I
agree with Dr. Edward
Teller's
statement

of

was

without

very

of

deposits

selected by
the
project

large

tremendous

a

any

bar¬

which *
now

and research effort have
expended on the problem

States, nuclear power in
most other parts of the world will
in
general develop
much more
slowly. In some cases this is be¬

largely Italian, and an interna¬
tional panel of nuclear experts

the Bank. The size of

it

as

of money

fit
large blocks of power into their
improvements in
picture, and in some cases to an
design and should in general fin¬
overall shortage of capital.
Some
ish up with plants of higher aver¬
of the underdeveloped
countries
age efficiency, and quite possibly
already have ambitious projects
they will build largely reactors of
for power installations in the near
the breeder type, still to be per¬
future, whereas they might better
fected, which will still further re¬ concentrate
their efforts on the
duce their import requirements.
development of water power or
The

along, it

something

in

not

many

so

ground, or so
coal, or even the
nuclei
of
so
many
fissionable
atoms.
Instead, it is science and
technology. If we have alert sci¬
entists and engineers, and have
freedom for them to explore and
develop, and if we maintain the
incentives
for
industry to put
them to work, there will be no
continuing shortage of anything
that people really want and need.

been. Fission bombs

prospective

group

came

as

might be controlled,

were

would therefore indicate

fission

oil

is

25

United

many competent bidders.
I
Light Atoms
happen to know that some of them,
at least, really got out their sharp
So far, I have discussed
only
clear power will probably make pencils and were willing to take about
power from the fission of
much more rapid progress in in¬
chances on actually losing money heavy
atoms.
What
about
the
dustrialized
countries
with
high on account of the prestige in¬ widely-touted
power
from
the
power requirements, and would of volved. Americans were glad to fusion of light atoms, and particu¬
itself tend to widen the gap be¬ note that the competition was won larly from deuterium, of which
tween countries, rather than serve by an American company'(G. E.)
there are almost unlimited quan¬
as
the
"great equalizer" which and that the reactor type chosen tities in the oceans? It has many
some have hoped.
features
was
a
relatively
boiling-water
enriched- attractive
Of the European countries, it uranium
developed in this country. low-cost raw material, no radio¬
is not surprising that England has
In general, it would seem likely active wastes, etc., and we know
made the most progress in install¬ that in
England and possibly one that it has long been used on a
but at least
ing nuclear power. They have a or two other countries of Western tremendous scale
small proportion of water power
Europe atomic power plants will 93,000,000 miles away—in the sun!
in a highly industrialized country become
competitive
some
five
Many laymen think that the

Sad

When

resource

It is not

tons

of

many

well

as a

cases

by

became

chemical engineer can conceive of

before taking a major plunge into
nuclear
power,
they will profit

little

a

rels

quarter-cen¬

it

take

large

wait

to

over a

since

United

they
longer

afford

can

enough

necessary

large indus¬

pressing and their capabili¬

so

ties

trained

personnel

other

countries

lem.

nomic,

operation.

the

working aggressively

spent fuel elements,
handling waste disposal, etc. Still
another would be
the difficulty
in many countries of getting the
safe

uranium

raw

product.

tries.

Another difficulty facing under¬
developed countries is the absence
of

any

coal—still less if they allow credit
for the plutonium made as a by¬

them

States, it cannot have
serious effect on the Euro¬
oil industry, especially since

pean

will still be higher. Fur¬
thermore, their foreign exchange

more

operate

United

of power

much

can

the

they admit that their overall cost

only 18% of the cost of imported

the

on

though

trans¬

Most of the

tries,

slightly less,

be

power

readily integrate into their system
a number of large units to handle
the

to

prove

for

did, however,
make it possible to
get, for a tiny
foreign fuel oil shows that the
fraction of a second, at the heart
yield of heavy fuel oil in the free
of an atomic explosion, the tem¬
world outside the United States
is much higher than that in the perature required to start fusion.
United States. Whereas the latter Controlling and containing it for
generation
is,
however,
has steadily declined from 25% to power
quite another thing. Many com¬
13% in the last 12 years, that of
the free foreign world has gone plicated schemes of containment
by a magnetic field have been
from about. 46%
to about 41%,
tried

industry, the statistical picture of

fueled by

they are building large nu¬
plants with gas-cooled i^eof
improved design at a
capital investment per KW just

on

ever

welcomed

ation.

actors

stone. At pres¬

one

worked

future

substance.

this occurred,

once

clear

they decided to kill

real

of atomic power would

use

ent

so

fact, however, the basic

the established that the sun and stars
prob¬ derived their heat from such a
ably develop more rapidly than process. The tremendous difficul¬
in the United States, where there ties of heating
anything to a tem¬
is such a wide range in competi¬ perature
around
100,000,000 de¬
tive fuel costs in different areas. grees necessary to start the fusion
Also, European power plants reaction, or of containing it at
would be much more subject to those
temperatures,
seemed
to
considerations of national policy, interpose
insuperable
obstacles.

However,

than the United States.
However, the surprising fact is
that only about 3% of the free
European electricity generation is

plutonium,

matter of

idea of making power from fusion
been thought about
and

tury,

the

in

areas

would

stalled electrical capacity.

power

cost

and

their

of

when

has

place

25%

would

I

Europe,

time

becomS competitive would
be similar to that for the higher-

20

and!

of
*

would

5,000,000 KWH capacity—between

two birds with

place, nuclear

close

come

tive

coal"nor

cheap

being

.

will

enough

miners to take

(437)

-

Union

a

Bank of Switzerland.

—

and their domestic

their

has

industry

had

depleted,

its
so

coal,

on

largely

which

built,
seriously
that they have neither
was

best

seams




years

States,
then

earlier
but
not

than

that

in

they

the

United

will

even

replace
any
existing
plants of reasonable size and age.

idea

of

newer

power

than

from

that

of

fusion
is
from

power

fission because fusion bombs

came

later

As

than

fission

bombs.

a

If

not

"moral

responsibility"

would make it certain that

then

competition

the consumer will get

the fruits of technical progress.
If

only these simple

understood!

truths were more wridely
3

26

The Commercial and Financial Chronicle

(438)

Continued jrom

first

central banking authorities are not warranted in sub-,
stituting funds of their own creation for savings which
are absent or insufficient for the demands of the day. How
one can possibly doubt the essential truth of this
simple
rule, we are at a loss to understand.
Yet this is precisely what all too many, including
some members of Congress, would have the Federal Re¬

page

I As We See It
of banking and
monetary system it deems best, the limits being only the
the

of

President,

create

can

of the

Constitution

sort

any

It

States.

United

can,

if the Presi¬

authorities do. The fact that it has not been

serve

doing
precisely the reason for the expression of the
"sense of Congress" in the proposed legislation which is
now
in dispute. When the Federal Reserve authorities
cease to be at least
partly immune to such a "sense of
Congress," we shall have come upon evil days. Let no one
doubt that for a single moment.

dent agrees—and even if the President does not agree,
assuming sufficient majorities—abolish the Federal Re¬

it of late is

System, and set up some other agency which will
Congress" as desired. Such

serve

be

obedient to the "sense of

as

new agency could be given a mandate to
all varieties of Treasury obligations under
a

buy

and

any

conditions to

be set by Congress. So much for the notion of an "in¬
dependent" Federal Reserve system if and when Congress
wills otherwise and has the courage to proceed with its

Congress has as yet done no such thing, and we
most earnestly hope that we shall not live to see the day
when it does. What it has done or purported to do is to
create a
Federal Reserve System and place it under
mandate to perform the normal functions—whatever they
are under
present conditions and present day thinking on
such matters—of a central bank. It has provided for the
selection of mien of experience and judgment to manage
that system. There is nothing in the law and nothing in
the concept of a central banking system so conceived and
so organized that would
require or even suggest that the
specialists chosen to operate the system go to Congress
or
any group in Congress for assistance or guidance in the
performance of their highly technical duties. It is very
difficult for

to believe that all this is not well known

us

and understood

by Mr. Rayburn.

Of course, this is a real world in which we live, and
'

it would be naive indeed to suppose that members
Board of Governors of the Federal Reserve System

of the
do not

-—along with members of the Supreme Court—read the
daily newspapers or are not aware of the general political
trends of the times as reflected in Congress. They are
naturally well aware of the power of Congress to alter
their system and their powers at
any time. They must
almost perforce keep alert to these things and doubtless,
as

unfortunate

as

it

is,

the

of

awareness

it

all

has

its

influence upon policy. There is, however, no need what¬
ever for Mr.
Rayburn or anyone else to make their road

rougher and
the

more

better^off if

stony, and the country would be much

no

such

members of the national

Continued

"sense

of

behavior

were

from

this

case.

have

indulged in by

What Can Be Done to

The

political

nonsense

or

worse,

as

it

that be and two world

powers

any

was

in

wars

over.

Time

was

when the central

banking theory

was;

relatively simple and in certain quarters well understood
and

expertly practiced. World War I badly \upset the
apple cart both as respects conditions in the various coun¬
tries of the world and the

thinking that had governed and
guided central banking. The New Deal abolished the gold
standard which was one of the
key forces in the manage¬
ment

of credit in

days gone by. World War II increased

the national debt to astronomical

largely in short-term form and in the hands
banks, especially the Federal Reserve banks.
Here

of the

situation trying
enough in all conscience,
things had meanwhile happened to popular thought—
and for that matter to technical
thought — that have
tended not only to continue these conditions but to threat¬
was

a

but

to make them

of

memories of

permanent. So

morbidly fearful were we
depression, and so vivid were
the depression of the
'Thirties, that all sorts

horrible

a

postwar

of so-called built-in stabilizers
(often called that in order
to cloak their real nature) were
created at enormous

pub¬
adjustments of a
began to rise and is

lic expense. After certain
early postwar
technical nature, the national debt
now

the

higher than it has

ever

been. Thus the problems of
the demands of those who

Treasury tend to reinforce

would

have the Federal Reserve

The

.

well

the

to

as

public

interest

in

well-functioning market econ¬
The job to be done first of
all is the matching
up
of pur¬
chases and sales by investors and
a

omy.

traders.

Treasury
rities

also

it

But

issuer

as

the

and

involves

of

new

Federal

the

secu¬

Reserve

reformers have

cumulated

wisdom

and

eternally expand.
thrown practically all the ac¬
experience in central banking

overboard. The tasks of the central banker
more difficult
today than in

are

infinitely

pre-World War I. No one has
seriously attempted to formulate a well-rounded coherent
central
banking theory under conditions such as those
that exist today, but
despite all the changes and notwith¬
standing all the newness of conditions existing today,
some
elementary truths are more or less self evident. One
of them is that in times such

should be tempted to




say

as

those

now

existing—we

under any conditions

effects

undue delays in execu¬

or

tion of orders.

specialized dealer market
provides a number of other serv¬
that

institutional

consider to

of

in

transaction

a

small

customers

valuable.

be

this

because

The cost
market

of

is

the

large
through the execution of its mon¬ volume of business, because of
etary policies. It is the conclusion keen competition among'dealers,
of our joint study
to date that and because dealer profits do not
both the broad public interest and depend solely on trading margins.
the special interests of the Treas¬ A
significant
part
of
dealers'
ury and the
Federal Reserve — earnings is derived from manag¬
which
are,
of course, designed ing their own portfolios and from
only to serve the public interest— supplying,
through
repurchase
are
being
effectively
served agreements,
investment
instru¬
ments which have the exact ma¬
through the present market. Those
who participated in our study, in¬
turity date needed by customers.
cluding
tors

broad

a

well

as

of

range

dealers

as

inves¬

and

bro¬

very

Such

in

is pref¬

government securities

erable

to

exchange,

an

type market.

auction-

Even if confined to

bonds,
and therefore excluding
bills, certificates and notes, the
exchange-type Jmarket
was
re¬
garded

unsatisfactory alter¬

as an

native.

Probably

the

most

important
standard of performance required
of the government securities mar¬
ket in serving existing interests is
its ability to handle without dis¬
ruptive price effects the typically
large transactions that arise as
large institutional holders adjust
their

liquidity and investment

sitions.

These

individual

also,

of

course,

involve risk of loss.

kers, were virtually unanimous in
the view that the present type of
Over-the-counter
dealer
market

operations

corporations, several
commercial banks who
submit orders both for their own
financial

thousand

—

the

customers,

and for

account

to

throughout
though
its
formal.

serve

effectively
customers

the
country
organization
is

Transactions

are

funds, and savings and loan asso¬
ciations throughout the country,
the

special funds of State and
governments, personal trust

even

in¬
com¬

Reserve, and the money market
operate generally, dealers provide
market
advice
that
value.
The
primary

of

Treasury issues.

provide
contact

trans¬

They
point

convenient

a

for

Federal

Reserve

market operations in short-

term

unable to. pur¬

in

such

large amounts, their interest
Treasury issues would decline.

in

The dealers in government se¬
curities appear to have developed
better facilities and techniques for

handling large transactions
promptly and without excessive
price effects than would be pos¬
in an organized exchange.
They do this by purchasing and
selling for their own account; by
maintaining " substantial
inven¬
sible

tories

of

securities

in

maturity categories; by
transactions

with

other

different
a

chain of

dealers—

purchases, sales, and exchanges or
swaps; and by keeping themselves
informed, through their nation¬
wide organizations or correspond¬
ent networks, of major sources of
supply and demand for govern¬
ment

securities

country.

In

its

throughout
operations,

dealer market acts

as

a

the

the

buffer

to

government securities.

Answers Three Criticisms

The major

defects attributed by

critics to

that might
abrupt price

business,

ers

services

his custom¬

must stand the test of time.

the

of

broad

because
tial

are

firms

Another

market.

information

to

qualified

is that the
and experi¬

personnel available to staff
is relatively small.

enced
new

for

in this study,
of

number

dealer

more

according

received

business

of

operations.
This
is
major reason why

the

in

reason,

is essen¬
a suf¬

coverage

volume

ficient

another,
the country
or

maintenance of

the

to

dealers,

primary

through one means
operates throughout

firms

No Formal

Rules

the

dealer market
re¬

of

market makes available to

public practically no informa¬
tion on its operations other than
market bid and offer quotations.
There is no requirement for mak¬
ing available either to the public
or to a duly constituted authority
the records of dealer net positions
in securities or amounts borrowed,
such

required of members

are

as

of the New York Stock Exchange.

The lack of formal rules, super¬

vision, and adequate information

that in instances dealers'

without

about

its

supervision

operations,
or

formal

sion

the

market

open

on

occa¬

suspicion that it may not

to

always be operating in the public
interest.

It

has

been

suggested
interests

conflict with those of cus¬
rules governing its practices, de¬
tomers,
that
dealer operations
spite its special public interest; may unduly accentuate swings in
and
third,
the
market
is
not securities prices, and that dealer
geared to handling small and odd- advice may not be entirely accu¬
lot transactions
nor
is it
espe¬
rate.
There was, however, little
cially
interested in them.
or
no
evidence gathered in the
As to competition, there is no study
that
such
problems are
question that the primary dealer common in the dealer market. Ail
market is very highly competi¬
of the market customers consulted
tive, even though it comprises in the present study expressed
only 12 nonbank firms and five their full confidence in the gov¬
bank dealers, most of whom have
ernment
securities dealers, indi¬
central offices in New York City. vidually and as a group, and tes¬
There is necessarily spirited com¬ tified to their high standards of
petition between the dealers for integrity and business practice.
the

volume of trading
Any offers to sell at a
price
even
slightly below
the
market usually are quickly taken

may

available

business.

Small-

and

Odd-Lot Transactions

Concerning
in

small

transactions

the

market, consultants to the
have indicated that they
generally go through other brok¬
ers
and dealers and commercial

advantage of, as are offers to buy
at anything above whatever the
price may be at the moment. In

study

volume, the government securities

banks, and that when they reach
the
market
they
are
handled
promptly by dealers at a rela¬
tively low cost that is in part sub¬
sidized by the large transaction.

of

in

the dealer renders

as

if

Moreover,'

future

formation

dividual

result

obtain

to

leaves

market

transactions

is

primary dealers
not be as com¬
petitive as an organized exchange
market; second, there is little in¬
group

equalize hourly and daily move¬
ments in supply and demand, and
to absorb the impact of large in¬
otherwise

standards.

ethical
he

such investment advisory

the

new

and therefore may

readily

promptly and ef¬

varied investors

ficiently and the business must be
handled in accordance with high

dealer

also

small

were

sell orders of these numerous and

tion of

portfolio

sell

of highly competi¬

market, the dealer who suc¬
must execute
the buy or

ceeds

dealers further provide important

stitutional

and

this type

In

tive

services in the secondary distribu¬

flect three features: first, the mar¬
ket is concentrated in a relatively

chase

tact.

Regarding the criticism of mar¬
ket mechanics, it is true that the

in U. S. Government securities

these holders

larly use the services of several
dealers, is constantly comparing
the relative performance of the
dealers with whom he is in con¬

not

around dividend and tax

larly

opportunities; and each
who regu¬

of the larger investors,

active

open

in
investors
making
changes—often run to
millions of dollars, particu¬
in short-term issues.
If

in government securities; each is
continuously comparing these re¬
turns with those on alternative in¬

a

some

or

generally themselves expertly in¬
formed and experienced in invest¬
seeking the
best return on the funds he places

there

Moreover, through
their intimate experience with the
highly technical aspects of each
Treasury issue as well as the ways
in which the Treasury, the Federal

actions—by commercial banks in
adjusting their reserve and port¬
folio
positions,
by
corporations
adjusting to their cash flow needs
by savings institutions

who

sell are

the market to buy or

execution.

po¬

dates, or
other in¬

means.

traders

and

investors

profitable
probably

customers

individual in¬

substantial

of

pleted promptly by telephone and
customers know the price or price
range when the order is placed for

specialized

other

security brokers and dealers han¬
dling transactions for customers,
hundreds of insurance companies,
mutual
savings
banks,
pension

Each

The dealer market is

organized

principally

customers
hundred non-

their

several

of

consist

are

and

wholesalers

vestment

The

ices

bonds on the

ment matters; each is

many

proportions and left it

all too

Improve

Government Securities Market?

Transactions

vastly complicated the tasks of central bankers the

world

dealers

The

vestors

3

page

legislature.

Cbngress" in such matters is, in

event, very likely to be

4

vol¬

as

transactmns in all corpo¬

York Stock Exchange.

New

use

"Sense" and Nonsense

;

en

the dollar

much

as

of

stocks as well as

rate

local

No Trouble With Large

The

times
ume

These

But

;

1959

accounts, and some

madness.

•

Thursday, July 30,

.

.

.

i*

-a

is

by

far

the

largest

fi¬

nancial market in the country. It
handles each year a dollar volume

$200

transactions

billion,

or

approximating
than five

more

Ac

the*

Hpalprc

arp

nrcranized

nri-

Volume

190

Number

5868

.

.

The Commercial and Financial Chronicle

.

(439)
marily to handle large transactions,it is understandable that they
view the small deals

as

an

accom-

New York Stock

Exchange should

be encouraged to develop further
the auction facilities it now
pro-

statement by bank supervisors to
each lending institution within its
jurisdiction indicating minimum

modation, and do not actively encourage them.
It seems clear that

vides for

if

cannot be harmed and may indeed

that each investor

be

the

facilities designed

icahy to

small investors' in-

serve

terests

in

to

established,

be

marketable

have to be

specif-

more

bonds

there

are

would

additional incen-

some

ment

transactions

bonds.

in

govern-

total

The„

market

improved by more active competition
between
the
Exchange
market
bond

and

trading.

tive provided.
Areas

NYSE Looked Into the Matter

Exchange,
study, reviewed

our

the potentialities for re-establishing

a

ket

in

auction-type

vigorous

government

mar-

securities

on

tne

Exchange.
After
extended
consideration of the matter, how-

Exchange officials concluded
though such a developwas
theoretically possible,

ever,

that,

improving

Mechanisms

The New York Stock

prompted by

for

even

and

Our
study
was
launched, as
stated earlier, in the hope that the

suggestions

advanced and problems revealed might indicate cer-

tain improvements in the way the
government securities market op-

erates, with particular emphases
the prevention of future spec-

on

problems raised by the suggestion
would

review

be

insurmountable

unless

both the government and the Ex-

change shifted
menta.

a

number of funda-

policies.

One

solved

isting

be

re-

ex-

conditions

Exchange

to

difficulty under

is the

of

to

take

the

financial risk of making a market
in government securities. The
specialists would be in competition
with

established

government

might

on

build

up

many

In

se-

need

to

very

quotations

maturities

on

throughout the list tend to move
together much more so than in the
market

for

specific

S„Mt°nr,
Public
tions

at

make

for

an
an

on

the

adenuate
aaequace

of

incentive
incentive

government

secu-

Exchange through

-

-~o

prevailing

ket
we

nrocesses and

change

for

under

~0.-

a

-

A

in

effective

an

its

isrtfpr

n

auction

auspices

a.nnlv
aujjpiy

idigfi

oovprnmpnt

^

would

of

inn*,

ux

hondc

xuiig

in

thp

i;

T-.

first

of

area

to

individual

investors

by

,

d sellers

°f ^J^ctrve
.lo,
,

informed
ran^e

a oroaa

ran^e

that

was
agreed to by
study consultants.
a

in

governments

other

than

The

change

placing

of

Ml

the

on

Federal

Ex-

Reserve

transactions in bonds

^nluc

offMM

pos-

of

«nnnort

the

of

many

a

.1.1

that ought to

be reg-

,*7

"off

toe

in

special

(d)

Some protection of the po¬
sition of member firms who are
government

security

dealers.
e
The

Fvrhanpp

that

able

fopiiitipc

did

bills, certificates of
or

rotes

more

bp

adant-

outstanding

debt

and

are

also the issues in which

the

whelming

market

volume

transactions
These
to

us

takes

of

make

that it would be

develop

an

over-

place.

conditions

it

clear

difficult to

auction-tvne

market

for

government
securities
on
a
broad scale under the
existing or-

ganized

exchange

mechanism.

The alternative anproach of im-

proving the mechanism

and

insti-

tutions of the present
government
securities
market,
by

carefully
studying and remedying defects in
the dealer market as
they come
to

light,

results

appears

that

interest.

At

will

the

to

Three

Approaches
Credit

A second

is

area

the

government

to

Sounder

Standards

of supplementary

credit

financing

securities

of

trans-

acti°ns. Last year's market exindebtedness, perience has clearly indicated that

which together constitute

Federal

us

serve
same




train-miles were
13.9%
from the

ger

reduced

preceding

additional

is

progress

wear

antic-

In the first four

year.

this

they have not yet been fully
either
Treasury
Reserve

other

alternatives

0ped

in

the

officials

or

and

be devel-

may

light

ap-

of

additional

study.

fuini^s wou^ comfortably cover 900,000 of 1958 which was
50-cent quarterly dividend substantially from the $9 200

rate-

of the

The road has benefitted from
the industrialization of the territory, served, although competition
from other railroads and forms of

use

0f

Repurchase

third

Agreements

for

special study
repurchase arcredit financing of

area

transportation

have

tended

to

slow the rise in grossrevenues.lt

of the

ml§ht be noted that Gulf

in

e™e ber

s

rev-

J™lity 'and adaptabilityhas
much

popular
in
Government securi-

*ies

more

ma'ket

activity
lieht

tn

rprtain

repurchases that
b ,•

intprpc?t

last

whpn

u«;p«;

...rh

.

,

finanP_

however,
that
this
year's budget might be increased
if the road receives a $4 000 000
tax refund claim which
is pending,
Meetings are scheduled to be held

with the Internal Revenue
and it is possible that a

ti

adequate

up

taken into the income

whieh

1'HVH.nn.nir
Developing

might

he

an-

ap-

Gulf's

financial

tinues to be strong
equivalents

.C*""

„

tions

market

Manufactures and miscel-

enuesi

traffic

account

for

norfnPm

+n

participants

might

association

an

imnrnvp

fhp

m«rket'<5

perform to improve the maikets
functioning were indicated
in-

small

May 31 amounted

000 compared with $14,968,000 o'n

th

lik

ig58

d

*

.

si7eahlP
»38_aate, a sizeable

im

im-

transactions;

sinking
ohmit

fund

reauirements

hv

onnnnnaa-men}s
addmcr
to

«ci

about

A£y
tho

$1,800,000.

cashflow

ayOT?5e„?f.ibJoui4J9%.-.With Auchincloss, Parker
of paperboard and wallboar^.
piants

in

added

to

years

Construction

the

service

have

POTTSTOWN,Pa.—Auchincloss,

recent

Parker & Redpath, members of
the New York Stock Exchange
and other leading exchanges, an-

area

carloadings

in

of

two

large

paper
mills along the line was
recently started.
The latter, together with further industrializa-

lander

tion,

them

should

vnnsl'r.

add

4v..-.-P4?4^

road's

traffic

further

potential in

to

the

z.^I,v

coming

through cooperative
primary dealers them-

that

rnn

Cash and cash

™

modenUz^tTon'23"0" 3nd pr0perty
modernization.

strengthened
of

nositinn

revenues, higher than the industry.

uemers
Dealers'

a

A fourth area of special study
of the existing mechanism of the

of

on

to $22,294,000, while current liabilities were $20,263,000.
Net
improved efficiency working capital totaled t;iQni7
f f7711 1

taneous
trail ic
account
tor
approximately 55% of total freight

Organization

number

account and

the balance into surplus,

mar-

wnicn mignt oe
plied to prevent future abuse.
p

a

settle-

by the end

n0 single commodity produc- this year are excepted to exceed
discusses various mg more than 5% of freight rev- equipment trust maturities and

putting

alternatives

Service

of the year. Indications are that
$1,500,000 in interest would be

'

Jlt

000

It has been

year.

hl Lenrred i^the

^

of

the

^
and

wage

.

year

not in

were

v.

preceding

-

off

indicated,

1t°n;mile was onlJ ^ ment might be reached

government securities. This is not f,nRts in+
compared with
a new method of credit financing, *^6 cents f01 the Class I rail averbut
method
ea
age The profit margin of the road
■
,y
government
securities reflects the high degree of comtransaction5 and because of its Petition. with the carrier unable

(b)

the

that

nounce

is
as

+^+4..^

William

now

bv

the

Treas-

etioits undertaken by the ireas
Ufy and

'

Federal Reserve System,

a]rpadv cPf

^nredation
SSs

on

of

in

nroress

a

fuller

J* ™5 find that desired improve-

with

represen-

4-t

x-.

T

:

«

—

Tri-County Planning

VALLEY

STREAM,

pnnn+v

N.

Y-

piannir,rt

,lri_Coanty

Planning

Corp. has
&ee? formed Wlth offices at 101
Rockaway Avenue to engage in a

tL na?rof market
thf unSable
rnrkrt DrStiMs
desired Lnrove
Albert

AertMn

Ober-

tative in their Pottstown, Pa. of*•-—«■
«««
"•
fice at 620 High Street.

Form
undertaken

R.

associated

registered

a

-

bl}siness- Officers are
V. Bianco, president and

seCretary;

M 3»^WHo^

to

promise

the

public

time,

the

at times an undue amount of
speculation
financed
on
thinly
margined credit can be detrimental to" the market and that
competition of lenders in extendinS credit to prospective holders
may result in deterioration in appropriate equity margin standards.
This experience raises the ques*ion of the need for some action

to assure that sound credit standards will be consistently maintamed by lenders in credit
extension backed by government
securities and also to keep the
total volume of such credit from
expanding unduly at times.
Our

study

It

and

Theodore

P.

Al-

was

also suggested that a dealers'
could
be
useful
in

adaptation to changing needs,

has

indicated

that

sive

identifying
primary
dealers
in
government
securities
both
to
improve
dealer
service
and
to
apply any market
rules
which
may
be adjudged in the public
interest.
Since
the
possible
advantages of such an organization

From the standpoint of the public
interest, study of these adaptations
is
never-ending.
Study
efforts may be intensified from
time to time, as in the case of the

as

well as its possible disadvanobviously require
careful

tages

and detailed examination, the task
of

this

been

supplementary study has
make this much-needed

to

A

question that naturally arises
point is whether in the

this

the present study there
will be any occasion later for speciai legislative requests pertaining

light

to

0f

tbe

operation

of

the

govern-

ment securities market. This ques-

tjon

be

cannot

Before

it

determine

piished

is,

we

what

in

answered

must

can

be

improving

yet.

try

to

these

enough.

The

itself,

together

of

with

the

tary-treasurer.

James

D.

Van

Gundy is also associated with the

^,„C°ptinumg^ observation firm,
Shuman, Agnew Adds

which both the Treasury and the
Federal Reserve recognize,
conclusion,

we

repeat

that

improvement in the processes and
mechanisms of the government
securities market will in no way
solve our problems of fiscal imbalance. Nor can they correct our
problems of too much short-term
public debt; of our need for continuous flexibility in our approach
to monetary policies; of attaining
volume

of

savings

which

will

(Special to The Financial Chronicle)

SAN
_

FRANCISCO, Calif.—Park

V.^incg,w

has become connected

witft bnuman, Agnew & Lo., 100

^Tanso^ie1 blr®eJ' n?f.maers ,°i.tn®

wew York ana Racitic Loast btock

Exchanges.

With

Henry Swift

(Special to The Financial Chronicle)

SAN

FRANCISCO, Calif.—Den-

a

Expanding investment ms George nas Decome associaiea
or of the cyclical instability with Henry *. bwm & co.,
^yo
of our financial markets. These California
^m^Dersoiine
are basic problems. We must all Bac
c
rrant'
work toward their ultimate solu- He
was
tormeny wira
uram,
tion in the public interest.
Fontaine & to.

improvements
fact

conduct a securities business. Officers are Louis H. Wayne, president; Rydar J. Olsen, vice president; and Sylvan Lipshutz, secre-

market

and mechanisms without
legislative action and then
ask
whether

.

accom-

processes

dealing with this problem: first,

Waynco, Inc.

CHICAGO, 111. — Waynco, Inc.
has been formed with offices at
548 North Lake Shore Drive to

and study of the government securities market is a responsibility

In

there are three approaches which
the government might consider in
a

present Treasury-Federal Reserve
study, but they are basically con-

evaluation.

at

Form

(Special to The Financial Chronicle)

Markets

are, dynamic economic
institutions. They require succes.

association

in Trea-urv

than half of the

marketable

distant future

study

not

rould

all to trading

at

from

and

in

was

$1,811,000 last year from
$2,561,000 in 1957. In 1958 passen-

type of credit regulation

view

experience

direct cost basis

on a

to

specifically efxempts

securities

government

eluding: (a) the adoption of standard rules to assure fair treatment
of buyers and sellers in both large

market

cut

tain the earlier pace and for the months of this year, passenger
ful1 year the carrier will show a train-mileage was further cut by
It must net income of around $3 a com- 37.5% from the like 1958
period
be re-emphasized here that these mon share as compared with $2.32
Capital expenditures this vear
are
merely possible approaches; rePorteo m 1958. Such projected are expected to be
below the $2
law

present

ularlv available. We were encoura§ed in this by the excellent cooperation received from dealers
and other market participants in
supplying information for our reof

passenger

deficit,

treasurer.

ri^nmS^nrAf
as

will main-

year

the

10 years the number of pas-

ipated this

action

bindsonlLfErcLrgeTxecenpTfor ^"adeq^atffnSattfprogr^m
floor'''tr?de4
^neeial
^tive operation in the not
acting

time, opkept under

same

cut

In

carried has dropped 45%
while passenger train-mileage has
been reduced 53%. The

sec°nd half of the

our study group unselves, working through a dealers'
thorough analysis of the association. Various specific func-

information

to

sengers

quire

the° execution "of a4?Utr^M»ctions
some

At the

expenses were

past

and

Jd

Exchange market;

erating

result,

u.uounai

savings bonds

pres-

over

improved operating efficiency." It
is anticipated that revenues in the

The
latter
type
of
would, of course, reCongressional action since

.

In this light the

shown marked improvement

regulation

n

in-

only limited

Board

ent flow.of information relating to and observers suggested that the
tho markpt ic inaHoniinto
oninf
markpt
the market is inadequate, a point market midht hp imnrnvpd and
might be improved and

vestors

find

Reserve

and the Federal Reserve as it par- government securities market reticipates in the market in regulat- lates to its piesent lack of formal
inS overall credit and monetary .organization. In our consultations,

As

now

applicable

now

Federal

for

securities.

hroneht

A broad

ouyers ana seneis.

dertook

tnese

that

offered

control and actually declined 1.8%
Respite the higher gross, reflecting

that

competitive ana
are
characterized

issues

Regulations T and U to the purchasing or carrying of corporate

'oDenlv rower
detha; ocerylnom
zing openly
eiricient markets

recognized

in

since

to

under the

recent years.

supplementarv
+u

sD«ckflh featur^^ince11 these^ hileatures
special

a^en-v

pur-

Bettel. objective Information

our

tractive

(bA

constructive

a

far

as

subscrip-

on

year ago.

its 'hew

become

conditions.

tere^t

inquiry

be available to serve effectively
narrow
the interests of all market particithe dealer Pants, including the Treasury as

be-

fprm

our

Gulf, Mobile & Ohio

Earnings and traffic of the Gulf,
Steps have been taken
the continuing
the Treasury of Mobile & Ohio this year have losing passenger business.
w

similar

would

Other conditions set by the Ex-

ci;

mechaniand

Processes; and1 mechanisms and
naturally intend to pursue

this phase of
asw.ll serve

participating in

those of 1958. Gross revenues in
the first five months of the year
registered a gain of 5.3% over a

to

use
rangement

issuer of securities for the market

market

tion

is the

m

^wl re-exfmhie

non-member

market.

v

'

Railroad Securities

as

cash); and third, the introduction
0f
special
margin
regulation,

taon relating to the dealer market

commission schedule that
be
competitive
with

spreads

Th

to

requirement

a

by
appropriate deposits

A

^r0vmnent

unduly exposed

other the problem
large traders.
also

is

handling

rities

treasury and Federal Reserve offacials. As their preparation has
Just heen completed 111 preiimin^ry form, they have not yet been
reviewed. Hence\ they cannot be

Qn]

rll"
There

m

^sfatisttoiln^othlr Infwmastatistical ana otnei intorma-

possible raids by

developing
ae. eioping

lm-

continuous

and

markets would be

to

to

of

corporate

trading posts,
positions
to

taking

orderly

studies

means

adhered

exchange of maturing Treas-

the nature of work- praised by
PaPers for consideration by Federal

nature

Exchange

specialists

ex-

Proving the market s functioning,

These are

Finally transacbecause
of

w

°£the

possible

be

second,

ury

addition, they

occasions

large positions in
government securities, since this
is
a
heavy volume market and,
wnen sharp price movements occur,

supplementary

encouraging

specialists

curities dealers.

four

1957-58 market

study group initiated

our

evaluate

.

specific problem

of the

perience,

to

standard;

standards <Plus
requirement

Market

Functioning

ulative excesses in the market. In
the light of consultants' suggestions and of findings of our factual

ment

margins

issues for new issues state his
in, equity position in those securities
in
compliance
with
Treasury

the dealer market

27

are

study

educational

match
needs;

.

,

,

.

our

,

.

,

,

,

The Commercial and Financial Chronicle
28

.

.

Thursday, July 30, 1959

.

(440)

costs

tion

Continued from

first page

Why Profits Cannot Finance
Wage Increases or Price-Cuts
control under

they opposed profit

requiring

when

lightly

treaded

Government

The

control.

price

under

absorption by business

cost

its,

controlling prof¬

labor

organized

tread,

to

Government

the

where

Yet,

that it was

repeatedly

not interested in

feared

Government

The

control.

price

reiterated

Competitively

Are

Prices

Set

First,

that

supply and demand still set prices.
The suppliers cannot control what
consumers are willing to pay and
what amounts consumers are

will¬

prices.

ing to take at those

Second, we must recognize that
industry vary in size
and in efficiency for any number

firms in any

which have
little to do with the efficiency of
management or workers.
of

of

some

reasons,

must realize that to
wages to profits will re¬

Third,
relate

we

wage rates
different companies for
work. Otherwise, prices

different

that

quire
exist

in

the same

goods produced by dif¬
firms will have to vary.

of similar
ferent

unions in effect

The

would be in

price-control business.
The
goods of the efficient companies
would be lower priced than those
of the other firms.
There would
be
black markets and marginal
the

wall.

there are dif¬
then a new in¬

differential pricing
ferential

wages,

dustry-wide wage structure would
have to be established providing

enough

hardly

is

This

1.7%.

to
to

hourly earnings

in

increase

An

10 cents per hour or some¬
under
4%
would clearly

of say
what

place these companies in deficit
positions. Employment, which has
declined slightly over the period

out en¬

covered, would be wiped
tirely.
should

There

that

fact

the

about

be

question
profits must
no

there¬

pay for use of capital and

economic rate
of interest rather than profits on
stockholders equity.
Moreover,
constitute

fore

they

since

insufficient

based

are

acquisition rather than on re¬
placement costs.
Finally, profits
must attract new monies for in¬
vestment
in new equipment,
if

on

progressive firms are to keep
being marginal firms.

from

Fallacious Reasoning
for the average or

above-

firm the wage encroach¬
profits is based on falla¬
cious
reasoning.
It is incorrect
to
assume
that non-wage costs,
constituting more than 60% of the
value of sales, have not gone up at
the same time as steel wages have

gone

of

exasperation would become op¬
erative to thwart and destroy the

will

cepted

motivations of all other factors of

materials increase, so do

production.

of

tain

difficulty
answer

forces

pricing
where

place

take

a

illustrated

the

case

rather

either is

This

can

be

dramatically in

of virtually every indus¬

However, because the steel
industry is currently engaged in
try.

profits contro¬
versy, it might prove to be more
interesting to draw some exam¬
ples from this industry.

a

wages

versus

-

Select

-

steel

three

companies,
Steel, Colorado
Iron, and Sharon Steel.

say,

and

Their

combined

come

over

1955-1958,
3%

after-tax

the

four

past

inclusive,

was

net

in¬

years,

slightly

sales, about one-half
Does such a
profit rate permit any wage pay¬

over

The

out

rate

of
is

it?

Absolutely not!

not

even

enough

to

adequately perform the function
expansion and cost reduction.

of

Actually, this rate would be
duced

in

made

for

in

excess

half

if

allowances

necessary

re¬
are

depreciation

of tax-permitted allow¬

Also, this does not include
for contingencies,
T h e
steel industry just as any capital
goods industry, is characterized
by an inherent instability often
called "prince and pauper."
ances.

reserves

Thus, out of the true earnings
about
lVz%
on
sales, these
companies
must
either
finance
their capital expenditures or at¬

of

tract

capital

from

the

it

outside.

the prices of raw
the prices
goods.
Then
why
assumed that

be

not

rise,

as

will the prices of

so

goods?
had

labor

if

Even

is commonly ac¬

It

as

the finished

the

power,

through government regulation, to
prevent other contributors to the
production process from receiv¬

ing what consumers have voted
through their purchases to allo¬
cate to them, the result would be
relative stagnation of production
and investment at a time when
the

growing labor force requires

the

economic

in

utmost

oppor¬

tunities.
Benefits of Labor Restraint

to

Labor, however, has the power
abstain from wage increases

which merely result in a
ation

on

the industry average.
ment

that

finished

Pittsburgh

Fuel

rise.

not

wages

operating,

whole company

increase, these other costs

wage

The

first?

are

is not in business.

or

a

should

is at the margin where the

addition, it is falla¬
without

In

up.

cious to assume that even

and

Where will all this damage

continu¬
inflationary spiral.

the

of

exercise

The

of

such

restraint

would result in innumerable ben¬
efits.

be comparable

It would

the

betterment

deavor

reform

of social

achievement

and

through

to

the

en¬

by each individual to

be¬
come
a
better person.
Self-im¬
provement in this manner is the
most
assured
way
of achieving
social improvement.

than

ter

control

wishes
?

It is far bet¬
by some to
to impose their

the attempt

others
on

or

others.

Price-Cut Agitation

Along these lines of self-right¬
eousness, it would be prudent for
some organs of the press to cease
beating the drums for a cut in
steel
prices, because it implies
that
of

this

too

can

be

financed

out

Most of this capital is in the form
of stockholders equity rather than

long-term debt.

their advantage.

During the four-




eliminated
the same

which
have

cut

would

profits.

Of course, as

provements

technological im¬
and mechanization

continue, the reduction of produc¬

investment and

on

absorbed

further production as an

With the country
capital, curtailed largely

spending and
the resulting

by heavy military
foreign assistance,

further curtailment of capital for¬

would

mation
this

For

be

the

serious.

of the

some

reason

in

most

best

have
accepted the need for moderate
inflation, resulting in forced sav¬
ings and higher profits than would
otherwise obtain, to finance the
necessary investment for our ex¬
pansion. Other economists, never¬
theless, have argued that volun¬
tary ■ savings
without
inflation
could

finance

with

ment

country

less

invest¬

needed

the

risk

the

to

econ¬

by
high interest rates in
for
the
use
of
savings.

discounting future inflation

demanding
return

However,

this

the

of

costs

costs

increase

to

tends

investment

all

and

generally, resulting in a fur¬
discounting or
adjustment
in the light of infla¬

ther

demands

tionary expectations. The process
is cumulative and demoralizing. It

patient but it can
kill the patient if used too

help

the

much.

not

are

role

their

indeed, that
fully aware of

unfortunate,

workers

one

officials

military

in
also

of

increasing
example,
well be amazed at the tre¬

real

may

in

profits

For

incomes.

in
employee
relative to profits
during the past 10 years.
Corpo¬
rate
compensation including
fringe benefits paid to employees
was
$90 billion in 1948 and in¬
increase

mendous

compensation

creased

to

billion

in 1958.
profits, how¬
ever, was $20 billion in 1948 and
$18 billion in 1958.
$158

Corporate after-tax

en¬

amazing increase in the
to employees, espe¬
cially relative to the share going
to

profits, could not have resulted
£rom a wage-price squeeze on
profits.
The substantial increase
in labor purchasing power could
not have resulted from a confisca¬

Yet, arguments

are

currently being given to increase

purchasing
of
profits.

were

function

of

duction

civilian

inefficient

as

of

military

bursement

restriction

The

of

increase

purchasing
power.
The best precaution is to
avoid any method which results
in
a
cost-price squeeze, which
Surveys

a

profit

squeeze.

constantly made of
investment plans.
These surveys
show

are

profits

the

plans

call for

in¬

in investment when prof¬

creases

its

are

that

up
are

and decreases when
down. The experience

of the recent recession and

bears

this

out.

One

recov¬

way

of

getting another recession is to
discourage the investment which
is getting us out of the recent re¬
cession.
Even

Such

ices.

in

sult

England

have

these basic
economics.

become

officials
aware

situation

a

would

re¬

a

The standard of liv¬
population.
ing per person would deteriorate.
The. hopes
and
aspirations
of
Americans for

better life would

a

shattered.

be

the first

One of
tries

to

civilian

would

suffer

Savings are already
many homeowners

high as
mortgages.

further

ings

by

be

indus¬

housing.

so scarce

that

having to
interest on

are

7%
To reduce

as

their

sav¬

reducing

profits
would make
borrowing for the
purchase of homes almost pro¬
hibitive.
The government would
be called upon to coerce the peo¬
ple to save through taxation used
to
finance
subsidized
housing,
which in the final analysis is no
subsidy at all, since the amounts
by which the interest payments
are
reduced
would
equal
the
amounts by which taxes are in¬
creased.
Gold

Other

of

Not

goods

creased.

investment.

the United States

of

seasonal

perhaps^ part

is

it

cyclical representing a
recovery from recession; and, the
balance, if any, should be secular,
reflecting changing technology in
the
form
of
increased
capital
more
<

of

unit

per

to

due

labor,

better machines.

and

*

addition, many persons who
particular profit ratios for
concluding that profits are too
In

relative to
The

as

demand

greatest

financed

be

to

de¬

weapon

fiat

money,

the

political system.

economic

A return to

the gold standard would be a most
welcome

step. However, and most
unfortunately, the "man on horse¬
back" will have become

a

reality.

These

frightening and ugly re¬
occurred in
history
and will occur again.
They start
from
rather
innocent-appearing
beginnings.
Often,
the
persons
contributing to the catastrophic
deluge are well-meaning, not real¬
izing that they are taking cues
alities

have

the

from

sinister

more

or

the

cynical.

more

was

Congress, an in¬
creasing awareness is developing
that a complete tax overhaul to
encourage
investment
is
long
overdue.
A comprehensive oper¬

of

breakdown

a

of

Also in

of

declining purchas¬
The road would lead

power.

and

out

For example, how
workers realize that Karl

stated

that

since

all

value

lack

of

While

profits

success

of

may
suggest the
specific company dur¬
ing one period as compared with
another period, such inferences are
not valid when making compari¬
sons among firms and industries.
a

Numerous factors have to be con¬

sidered, such

the capital struc¬

as

ture, capital turnover, type of
product, nature of market, and
competition, etc. Profits are dif¬
ficult to interpret and dangerous
to

grab at.
Workers pay

5-6% commissions

sales of homes and much more

on

other

for

It

services.

seems

un¬

reasonable to oppose a

similar re¬
turn in the form of profits for the
tools that make their jobs possible
in the first place.
The fact that
workers
no
longer have control
their

of

is

union

no

excuse,

cer¬

tainly not when strikes ensue and
business has to fight for its very
existence as well as independence.
case

of the steel industry,

the appearance of high profits
the first few months of 1959

for
on

the part

of a few companies is no
guarantee that these companies
can
pay
current wage demands
out of the; profits realized next
year and the year after, etc. Also,
the below average steel producer,
mostly the non-integrated firms,

increase out
earned profits.
The below average firm cannot

cannot

of

pay

wage

a

currently

even

a
wage increase without
a
price increase except to the ex¬
tent that cost-absorption is car¬
ried out by labor itself through

pay

the elimination of featherbedding
restrictions.

Finally,

above

the

firm will continue to re¬

average

place labor with further mechan¬
ization at a cost of between $50,and

000

which

cific

the

far

cost

of

spe¬

any

is

quite

the

below

over

employee,

per

life

existing

mechanization

clearly
labor

$75,000

over

the

period.

same

Two With Richard Harrison
(Special to The Financial Chronicle)

SACRAMENTO,

Calif.—Gerard

Dunkly and Donald K. Thomp¬
have become associated with

P.

son

Richard

A.

Harrison

Inc.,

2200

Sixteenth Street. Mr. Dunkly was

with

formerly

A.

J.

Taranto

&

Company.

created

by labor, then prof¬
only arise by paying labor
it produces?
Yet, the
implicit rationale for profit en¬
croachment is precisely this type
of fallacious philosophy which has
brought irreparable harm to the
world
already.
Similarly, how
its

fail to recognize the utter
comparability that exists
companies.

high

between industries and

In the

experi¬
the supply

against inflation, namely, in¬
creased
production,
would
be
lacking. Even with price controls
(including wage controls) the ef¬
fective prices would exceed ceil¬
ing prices as consumers bid up
prices and diverted supplies into
the illegal free markets.
And as
labor
petitioned
government
to
permit wage increases (and price
increases), these increases would

Marx

principles of practical
They have recently

encourage

is

crease

Fiat Money

industries would

price increases

ence

in

offered substantial tax concessions

to

coinci¬

increase in sales

temporary

usage

"sell¬

industry.
in

increase

merely

is

the

with

to

steel

recent

inventory ac¬
cumulations; part of the profit in¬

on

declining level of real
output relative to the increasing

many

statist-minded

due

the

in

the

profits

dental

products,

ing of costs" rather than the sell¬
ing of productive goods and serv¬

ing

altars of fallacious ideas of

precisely

these

pro¬

profits

is

of

Part

operations would go bankrupt.

at the

means

increase

products
the

as

with constantly

power

to

Finally, it is dangerous indeed
for the public to accept statistics
showing short-run increases in
profits as indicative of excessive
profits. An example of such an

of

those
on
cost-reim¬
contracts, the civilian

especially

at the expense
This
is
impossible
since the beginning of a wageprice squeeze means the beginning
of excessive unemployment. Thus,
the greatest caution must be ex¬
ercised against sacrificing produc¬
tion, employment and investment
ways

Fallacy of Short-Run Data ~

aware

economic

production

going

tion of profits.

of living will see,quite
clearly the fallacies of Marx and
Keynes regarding profits and sav¬
ings.
rV;

profits in cost reduction.
It is
actually penny-wise and poundfoolish to restrict profits at the
price of greatly inflated costs. The
savings
realized
in
a
profit
squeeze is a fraction of the un¬
necessary
costs that result from
such a squeeze.
This situation has
prompted
many
executives
in
industry to comment that if the

The

share

standard

procurement
of the

become

important

pay

is

It

the

States

United

The

gaged

and

development

capital

our

de¬

In addition,

write-offs are permitted
capital formation.

tax
new

have

allowable

the above. However, a person
who observes the amazing state of

as

use

This risk stems from the process

of

fast

determine

account would result in the

Inflation Can Kill Growth

of

to

used

fully the
profits.
Replacement
acquisition costs are

private account as on government

omy.

ery

Such implications pro¬
vide
precisely
the
assistance
which
labor
strategists
use
to

year period, the former consisted
of four dollars for every dollar of
the latter.

price

profits

average

higher wages for those in "cer¬
plants.
Union
restrictions
would police this vast wage struc¬
ture just as it polices seniority and
other restrictions. A new element
for

industrial
recovery
in
of all industrialized

for

A

also

on

purchases for the creation of
jobs? Naturally, persons with a
perverted envy and anti-capitalist
mentality will use fallacies such
ital

years

duced.

can

ment

greatest
recent

invested in cap¬

cash rather than

preciation set-asides.

an

profits must finance the extent to
which depreciation allowances are

Keynes, assumes that too much
savings were not invested at all
but only hoarded in the form of

Germany has experienced the

payments to these factors, all out
of
reduced costs per
unit pro¬

economists

attract investors today.

Even

hand, if instead of

this to 3.3%.

this figure

reduce

strategy of labor places this

of

increase.

adjusting the net worth
value to current dol¬

re¬

jeopardy.

than

or

book

way

The

rather

of

would

in

under

objective.

role

wage

from

cent

already
this

towards

capital and raw mate¬
rials will make possible increased

short

,

On the other

to

response

more

depreciation set-asides was 6.5%.
Adjusting for insufficient depre¬

the

producers would be forced to

in

is

ation

countries by recognizing

harmful effects

lars

must understand

we

depreciation

allowable

perhaps

aggregate net income.
The
net income as a per cent of net
worth unadjusted for inadequate
their

Furtner
States

these

companies have been able to make
capital expenditures amounting to
about
75%
in excess of either
their

be

owners

changes in price, the resulting in¬
creased
demand for
more
labor
and

that

amazing

seems

ciation would reduce

heedlessly.

enters

It

the

by

creases,

Struggle

Tough

A

should

and

can

of capital,
by labor and by consumers. How¬
ever, the allocation of such shares
can
be determined only by the
consumer.
As
his
demand in¬

shared

With Leo MacLaughlin

can

less

than

many
more

workers
recent

realize

English

that

the

economist,

(Special to The Financial Chronicle)

PASADENA,
L.

Domer

Leo

G.

is

Calif.

now

—

Chester

affiliated with

MacLaughlin

Securities

Company, 65 South Euclid Ave.
He was formerly with Reynolds &
Cn

anri

"Walston

Rr

Co.. Inc.

[Volume 190

Number 5868

.

The Commercial and
Financial Chronicle

.

.

(441)

count

or

a

of all accounts.

census

The chances

mates that have

19 in 20 that the

are

time

to

time

been made from

in

the

past on the
data. More¬

estimate of $49.7 billion is within

basis of fragmentary

$2

over, the sampling precision of
the survey results is known and

billion

would
such

of

have

the

been

which

obtained

trust

personal

been

value

if

enumerated

by

the

all

had

accounts

is of such magnitude that the user
of the data can be confident of

same

procedures."

By

technique,
counts

complex

a

anonymity

reported

the

Committee

ac¬

Other

pre¬

served.

besides

Reserve

Bank

of

New

Puerto Rico Bonds

on

available
sition

A

banking group headed by the Chase Manhattan Bank, Mor¬
Guaranty Trust Co., and Ira Haupt & Co., Co-Managers, was

gan

successful

bidder

Tuesday,

Commonwealth of Puerto
Left

Haupt

to

&

Puerto

right

Co.,

Rico

Manhattan

Jose

R.

The

has

been

regarding

of

the

"Thus

far

the

current

Banco

Credito

Sheridan

J.

Thorup,

Senior

Second

in

Personal

State Street Trust

are

esti¬

Trust

Common stock in $50 billion bank-held personal trusts
first

survey

about $30.7 billion.

or

conducted

ever

on

This is revealed in the

Type

Assets totaling nearly $50 billion
"were
held in personal trust sfccounts in banks and trust (?o&-

the

of

United

according

to

Stated

of

results

in

a

survey made public this week by
the Trust Division of the ABA.

This
ever

the

was

conducted

first
and

such

nationwide basis.

a

It

>

was

survey

the first time

the

trust

accounts

whether they had
it

with

others.

personal

responsibility,

holdings

basis

had

ors^a

ever

covered

survey

for

reported,

none

Of

which

or

shared

or

the

$21,324,had sole

they

$12,030,000,000,

or

been

persohal

institution

ment

tr«s€!

with

responsibility or shared it
others,
the
picture
was

investment advisory and man&gef

and

agencies, unfunded insurance
trusts, and the insurance portion
of funded insurance trusts.

By far the greatest percentage
of
personal
trust
holdings was
invested

in

common

revealed.

survey

300,000

in

these

stocks, the
Of the $49,680,-

In the

somewhat

accounts

for which

had

different.

stocks accounted

no

the

in vest-

Common

for $18,634,500,-

000, or 65.7%; state and municipal securities, $4,651,000,000, or
16.4%; corporate bonds and de-

bentures, $1,229,000,000, or 4.3%;
U. S. Government securities, $1,-

1,290.9

or

61.7%,

common

—

securities;
$2,33S>y-*'-A
Committee Chaired by
4.7%,
in corporate^
Robert A. Jones
debentures; and the
The A.B.A. survey, conducted
balance, 12.8%, in participations under the supervision of the Trust
in common trust funds,
preferxei^ilivision's Committee on Statis300,000,

or

and

stock, mortgages, and other

assets'^ Jics, whose chairman is Robert A.

(Breakdown shown in Table'f,) J^Jones, Vice-President of the MorComparing the $49,680,300^00(1 vgan
Guaranty Trust
Company,
of holdings in
bank-administered^ew York, was made in collaborapersonal trust accounts with variation with Alfred Politz Research,
ous

other

viduals'

classifications

investments,

of

Mr.

indi-

Wolfe

commented that funds invested in
stocks

Stock

listed

on

the

New

York|
amounted Viq

Exchange
$276,700,000,000 at the end of 19£8J
funds in life insurance

companid^,

Inc., of New York,
Using a sampling method deveiaped by the Politz company,
the Trust Division obtained reports from 121 representative trust
institutions on 4,229 personal trust

accounts.

By

the

scientific

sam-

$86,400,000,000; funds in corame^ pling procedures used, the Politz
cial bank savings accounts,
$5fe?company said: "It is possible to
600,000,000; funds in shares.'" of determine the amount of differsavings and loan associations,
ence to be expected between esti900,000,000; funds on deposit jn mates derived from the sample
mutual
savings banks,. $34;00Q > and estimates that would have


000,000; and funds in shares


the

South La Salle

Street.

4.3

0.8

$49,680.3

r

in

1.3

384.6

Assets

Personal

100.0%

n
Trust

Accounts

By Type of Investment Responsibility

(In Millions of Dollars)
Sole Responsibility

Type of Asset—

Common

or

None

%

$

12,030.0

56.4

18,634.5

65.7

3,140.2
1,594.4
1,307.7
1,106.2

Stock

14.7

4,651.0

16.4

7.5

528.3

6.1

1.205.4

4.3

1,229.0

4.3

U. S. Government Securities

Corporate Bonds and Debentures
All Other Assets
Preferred

Shared

$

State and Municipal Securities
Participation in Common Trust Funds

5.2

%

1.9

990.7

4.7

916.1

3.2

594.6

.___

Stock

2.8

696.3

2.5

Mortgages

407.1

1.9

264.0

0.9

Cash

153.8

0.7

230.9

0.8

21,324.7

100.0

28,355.5

100.0

Total

_

TABLE

Assets in

Personal

of-been

obtained

from

a

complete

IH

Trust

Accounts

By Type of Investment Responsibility—By Type of Asset

(In Millions of Dollars)
Total

Type of Asset—
Common

and

U.

Government

S.

Sole

Shared

or None

$

Municipal

%

S

%

$

%

30,664.5

100.0

12.020.0

39.2

18,634.5

60.3

7.791.2

Stock

State

100.0

3 140.2

40.3

4,651.0

5S.7

Securities

Securities

2,513.1

100.0

1,307.7

52.0

1,205.4

48.0

Debentures-..-.

2,335.3

100.0

1,106.2

47.4

1,229.0

52.6

Participation in Common Trust Funds

2.122.8

100.0

1,594.4

75.1

528.3

24.9

All

1,906.9

100.0

990.7

52.0

916.1

48.0

1,290.9

100.0

594.6

46.1

696.3

53.9

671.0

100.0

407.1

60.7

264.0

39.3

384.6

100.0

153.8

40.0

230.9

60.0

49,680.3

100.0

21,324.7

42.9

28,355.5

57.1

Corporate
Other

Preferred

Bonds

and

.

Assets

Stock_-_._._

Mortgages

__

Cash

Total

NOTE—Figures may not necessarily add to totals because

TABLE

Investments

Individuals

of

in

of rounding.

IV

Bank-Administered

Personal

Trusts, Saving's Accounts, Mutual Funds, Life Insurance
Reserves, and Common
York

Stock

Stock

Listed

on

the

New

Exchange—1958
Dollar Amount

Government

bonds

to

5.1

671.0
—

$30,invest-

stocks.

was

added

2.6

Stock

accounts,

205,400,000, or 4.3%; and the balance
in preferred
stock, mortgages, participations in
common
A
total
of
$7,791,200,000,
or trust funds, cash, and other assets.
15.7%, was invested in state and The complete picture for this is
municipal securities; $2,513,lQQ^«et out in Table II.
000, or 5.1%, in United Static-

664,500,000,

ed in

been

ernment

trust

corporate

has

Goldman, Sachs & Co., 135

4.7

Total

custody and safekeeping aceojlttijs,
pension and profit-sharing tr£*Hf,
accounts,

staff of

Type of Investment—
1

Personal

2

New York Stock

3

(Billions)

Reserves of Life

Trust

Accounts

Exchange Common Stock

Commercial

5

86.4

Trust Division

York

Stock

plus

dividends

SOURCE:
4 Time

SOURCE:

left

S.

to

Institute

deposits

5 Investments

U.

of

December

legal

reserve

accumulate,

of

Life

individuals,

Federal

6.0

2.3

$567.5

100.0

Survey of Personal Trust Accounts, 1958.

Exchange,

in

8.5

13.2

Open-End Companies___.

3 Accumulations

10.5

34.0

___

Total

15.2

59.6

._

7Mutual Funds Held by

1 A.B.A.

48.7

47.9

Savings & Lean Associations
Mutual Savings Banks

2 New

8.8

276.7

Insurance Companies
Banks

4

6

PerCent

$49.7

Deposit

30,

11658.

life insurance companies include reserves
minus

premium

notes

and

policy

loans.

Insurance.(P)
partnerships

corporations.
Insurance Corporation.!P)
and

in

savings and loan associations, including savings accounts,
deposits and investment certificates. DOES NOT include shares pledged against
mortgage

loans

SOURCE:
6 Time

investments

Federal

deposits.

7 National

or

Association

(P) Preliminary

Home

SOURCE:

gift to "CANCER"

in care of your

local post office

S. Government.
Bank Board.(P)

Loan

of Investment Companies.

estimates.

Send your

by U-

Federal Deposit Insurance Corpomtion.(P)

AMERICAN CANCER SOCIET?
•

'<

N„

3.8

Assets

Cash

securities; and the retrusts only — reflecting
current mainder, or 15.3%, in corporate
values of living trusts, testamen- bonds and
debentures, preferred
tary
trusts,
guardian
accounts, stock, mortgages, cash, and all
and funds of incompetents. 1other assets. Table II shows the
eluded estates, personal
agents, distribution of these investments,

ment

Ettelbrick

.

111.—Robert

15.7

2,122.8
1,906.9

Other

Mortgages

56.4%, was invested in common
compiled, Joseph H. Wolfe, ABA stocks; $3,140,200,000, or 14.7%, in
Deputy Manager and Secretary state and municipal securities; $1,of the Trust Division, said.
Sijpi- 594,400,000, or 7.5%, in participalar surveys will be made annually tions in common trust
funds; $1,in the future, he added.
g'J 307,700,000, or 6.1%, in U. S. GovThe

(Special to The Financial Chronicle)

CHICAGO,

61.7%

2,335.3

TABLE

700,000

trust

Goldman, Sachs Adds

Asset

$30,664.5
7,791.2

Municipal Securities

Preferred

mutual investment concerns, $13,200,000,000.
The 121 trust institutions which
participated in the survey designated
also
whether
they
had
sole investment responsibility for

that figures on bank-administered
nationwide

South.

Total

Research of New York.

1958,

of

2,513.1

All

by
Robert A. Jones, Vice-President of the Morgan Guaranty Trust
Company of New York, and in collaboration with Alfred Politz

panies

135

Salle Street."

I

Accounts—By

Corporate Bonds and Debentures
Participation in Common Trust Funds

made under the supervision of the American Bankers Association's Trust Division's Committee on Statistics, chaired

*

Michigan Corporation,

Company, Bos¬

U. S. Government Securities

comes

■

CHICAGO, 111.—Glenn W. Evan*

ton.

Stock

State and

Equity Heavy in Banks' Personal Trusts
61%,

Michigan

(Special to The Financial Chronicle)

(In Millions of Dollars)
Common

over

With First of
.

Bank-

Type of Asset—

to

Statistics,
Jones,
are:

on

G.

Vice-President,

TABLE

Assets

Ahorro

y

Ponceno and Banco de Ponce.

'

Trust

Trust

and

per¬

than

Street, members of
Exchange. He
formerly
with
Dempsey-

Tegeler & Co.

the

King, Vice-President
Officer, Wells Fargo
Bank, San Francisco; Robert M.
Lovell, Senior Vice-President,
The Hanover Bank, New York;

compo¬

findings

dependable

more

Co., 1

La

and

made

bank-administered

the

to

G.

included

group

that

added

Dawson &

is now affiliated with the First of

sonal trust funds," Mr. Wolfe said.

Carrington, Jr., partner of Ira
Noguerra, Secretary of the Treasury of
de Milhau, Vice-President of the Chase

John

Bank.

28, on an issue of $15,200,000
bonds, due 1960 to 1979.

William

are:

and

July

Rico

of

Chairman

Harold

results of the survey con¬
the
most
comprehensive

information

been
A.

North La Salle

Vice-President and Secretary, The
First National Bank of Chicago;

assembled.
"The

has

'»

N.

Philadelphia; Joseph T. Keckeisen,

by the Politz organi¬
and projected the figures

stitute

Mueller

staff of John

••

111.—Michael

dent,
The
First
Pennsylvania
Banking
and
Trust
Company,

established

zation,

CHICAGO,

John M. Cookenbach, Vice-Presi¬

York, which compiled the figures,
applied the estimating procedures

Successful Bidders

Members

members

Division's Committee

The data collected by the Trust
were turned
over to the

Division
Federal

(Special to The Financial Chronicle)

...

.

was

coding

of

strictly

was

John Dawson Adds
•i

the Midwest' Stock

their reliability."

of

use

29-

9

30

The Commercial and Financial Chronicle

(442)

Continued

American-Saint Gobain

Arranges $53,500,000
Gobain

Corp.

"they all lead to the basic
the determining factor in prices."

are

today (July 30) a financing
program to raise funds to build
a
new
$50,000,000
plate
glass
manufacturing plant at Greenland,
Hawkins County near Kingsport,
Tenn. The company has entered
into an agreement negotiated by
Eberstadt & Co. for the sale to

F.

Prudential

The

America

of

of

$23.50

1963

and

The

prior

warrants

tain

their exercise
The

th

authorized
a

of

with

cer¬

sale.

is offering to its

debentures

29,
an

permit
face

value

amount

to

for

of

permit
share

of

at

share

one

This

will

of the

for

each

parent

com¬

shares

of

stock

common

to

be

The

vertible

into

and

until

Nov.

1,

company's parent is
pagnie de Saint-Gobain of
France, the oldest and one
largest glass manufacturers
It

and

a

its

Com¬

Paris,
of the
in the

affiliates

substantial

also

volume

of

chemicals, including petro-chemicals, fertilizers, petroleum pro¬
ducts and plastics.

American-Saint
formed

was

Gobain
Corp.
Compagnie de

by

Saint-Gobain in 1956 and

acquired

through

American
and

Blue

ecutive

in

1958

the

merger

Window
Glass
Corp.
Ridge Glass Corp. Ex¬

offices

are

in

New

settlement of the strike

York

and Okmul¬

gee, Okla.

Eberstadt

of

group

firms

&

Co.

heads

there

investment

listed

below

banking

which

is

un¬

derwriting the company's offering
oi

the

stock.

debentures
Other

Morgan

Dillon,

and

common

underwriters

Stanley
Union

Harriman

&

Co.;

Third

&

Co.;

Co.,

&

Co.; Lehman

Inc.;

Brothers; White,

Weld & Co.; H. M.
Byllesby & Co.

(Inc.); Hornblower
M.

&

roeder,
&

Arnhold

Inc.;

and

&

S.

Istel,

Co., Inc.




Bleich-

Lepercq

Up 71%

machinery
equipment

switch

in

users

strike

Steel

the

their

contracts.

averted

Tonnages

policy

consumer

be

are

._

Railroad
The

delays occasioned

by

steel capacity told "Steel" they would order 43% more
equipment in the last half. Most of these companies said that even
a long strike would not cause them to materially alter their plans
—except to revise delivery schedules.
Another survey by "Steel" reveals that managers of metalworking plants believe price competition is their No. 1 problem.
Pressure for wage increases is listed as No., 2.
Scrap prices leveled off last week because of limited buying

by the mills that were operating. This held "Steel's" scrap price
composite to the preceding week's level of $38.67 a gross ton.

Steel Output Based on

The American Iron and Steel Institute announced that the op¬

industry began Wednesday, July 15.]
output for the week beginning July 20, 1959

Actual

equal
to 12.9% of the utilization of the Jan.
1, 1959 annual canacity of
"147,633,670 net tons. Estimated percentage for this week's fore¬
12.8%.

the

was

actual

the operating rate (base don 1947-49 weekly pro¬
and production 2,215,000 tons. A year ago
production

was

placed

at

1,561,000

tons,,

or

'
production

is based

on

average

weekly

production

for 1947-49.

Forecasts 7,500,000

Industry Wages in May at Record High
of

hourly

Up 69%

Up 41%
Up 46%
Up 32%

and

salaried

employees in the iron
industry in May 1959 was 634,668, exceeding the total
for any month since April
1957, and up 134,299 or 26.8% as com¬
pared to May 1958. The gain from April 1959 was 14,067, ac¬
cording to the monthly report of American Iron and Steel Institute.

Yearly Car Sales

concern
is considered the nation's largest in¬
finance company, speaking before the annual
convention of the Michigan Autombile Dealers Association is re¬

whose

dependent

auto

ported to have stated
"We

be

can

lives

business

that:

confident

that

ahead,"

just

there

potential,

the

best

years

of

our

asserted.
"With such a
to be built and enormous

Rude

businesses

great

are

have

we

Mr.

profits to be made."
explained that in spite of the fact periodic business
occur but by the end
of the 1960s there will be
million auto cars on the road and that one family in every
Mr. Rude

downturns
90

will

own

two

total 7,500,000

new

five

will

Car

Average yearly

cars.

more

sales should then

and 15,000,000 used cars

Output Off

as

Model-Year Shutdowns Accelerate

Model-year shutdowns and

a

tion in the week ended. July 25

general leveling off in produc¬

lowered U. S. car output to a pro¬

grammed 125,962 Units—a 1.2% slip from the previous week's
of

127,502 cars, Ward's Automotive Reports

Joining
runs

total

said.

the r$nks of automakers who have closed out their
was
Stuclebaker-Packard, whose South Bend, Ind.,

plant wound'up

1959 activity

on

Wednesday, July 22.

Chrysler,

Dodge, DeSoto and. Imperial have already completed work on 1959

Plymouth's expected to finish up by the end of the cur¬

models.

*

rent week.

The

'C

.

will be from the end of
middle of September, when 1906 model production

indiistry'l?slack period this

August to the
will get

year

underway.

According tofWard's, five-day scheduling was in effect in the
ended

week

Jul$25 at most U. S.

car

and truck plants.

The ex¬

Chevrolet passenger car lines at Flint, Janesville,
'Kansjus City, six days; American Motors at Kenosha,
days. ;J;%;:

ceptions were

and

Wis., six

Mercu'ry^lant

A

for

week

at Metuchen, N. J. was idle all during the

sumr^er vacation, Studebaker-Packard's South Bend,.

Worked only three days, Chevrolet truck at St. Louis
Thursday July 23 and Friday, July 24 for inventory adjust¬
a
Bufck-Olds-Pontiac assembly site at Wilmington, Del.,

Ind., plant
ments and
was

Employment

and

___'—

Rude, President'of the Universal C.I.T. Credit Cor¬

G.

down oh

,f$e latter day.

U. S.

Steel

—

Cleaning & finishing equipment
treating equipment.
Joining & assembly equipment--——

closed
of

Up 43%
Up 39%
Up 28%

equipment

Heat

Wis.,

97.2%.
-Index

Up 24%
Up 11%

—

Testing & inspection equipment

^

*137.9%

weekly

2nd half vs. 1st half

Foundry equipment
Material handling equipment

was

•

A month ago

duction)

4%

Up 30%

----->—

-

—

Steelmaking

steel

castings (based on average weekly produstion of 1947-49) as compared with an actual rate of *22.7%
of capacity and 365,000 tons a week ago.
[Ed. Note: A strike in

cast is

equipment

equipment they will buy—

Presses

model

22.5% of Capacity

erating rate of the steel companies will average *22.5% of steel
capacity for the week beginning July 27, equivalent to 362,000

steel

_.

Machine tools

poration,

nation's

the

Up 31%
Down 32%
Up 26%

machinery

Up 26%

are

involved

strike.

and

industry

Up

Alan

significant, "Steel"

is

accepting orders subject to

ingot

Up 71%

Nonferrous,

now

Looking beyond the strike, steel companies are planning to
buy more nqw equipment in the second half of this year than
they did in the first half. Companies representing 60% of the

of

—.

Metalworking machinery

who had canceled orders

would

are closed, al¬
could handle additional tonnage for the period if the
ended quickly. For deliveries of steel beyond Septem¬

are

Up 79%
Up 77%

equipment.—

&

despite the strike and comfortable

Some

the

Up 91%

___

General industrial machinery

contracts,

quarter order books of most producers

were

mills

Loeb, Rhoades & Co.; Shields &

Peck;

2nd half vs. 1st half

_____

Iron & steel foundries..

Weeks; Carl

Co.; Swiss American Corp.; Adams
&

rumors

of a record.

billion was spent in 1959's first half
spending (by industries) in the next

$2.06

Electrical

is an early

further extensions of present

'

.

these plans for

Farm

some

ber,

Eastman

Securities

Ripley

are:

Kuhn, Loeb & Co.; Lazard Freres
&

or

consumers.

were

the

but

though

tons
a

/.

previous six month period, except

any

It's only $30 million short

Industry—

"Steel" said.

operating offices
in
Pitts¬
burgh. Present plants are at Ar¬
nold, Jeannette and Ellwood City,

F.

than in
1957.

reported

Aircraft

ingot production since the strike began total
tons.

Steel production may shrink further unless there

and

Pa.\ Kingsport, Tenn.

more

six months:

,

commented.

at

1971

The

produce

steel

the metalworking

"Steel" magazine,

1959,

prediction is based on a first of its kind survey by the
magazine. It went to companies representing nearly one-third of
metalworking's total outlay for capital equipment. The survey
was limited to equipment
(it excludes spending for plant) to get
a more accurate indicator of the short-term businese outlook.

Steelmaking operations in mills not affected by the strike
yielded 382,000 net tons of ingots in the week ended July 26. That
is equivalent to 13.5% of the nation's capacity.

strike

world.

in

around 3,680,300 net

small,

share.

per

of

The

construction projects are halted by picket
lines at mill gates. About $200 million worth olj work is halted
in the Chicago-Calumet-Gary area alone.

seeking reinstatement of

per
share until Nov.
1,
1964, thereafter and until Nov. 1,
1968 at $25 per share and there¬

$30

is

That

Several steel plant

when

at

$22.50

after

half

the latter half of

con¬

stock

common

-

$2.79 Billion for-

Will Spend

weekly, predicted on July 10.

the

losses,

only

Demand for steel is strong
are

second

tiie

Special

iventories of most

debentures

new

was

spend $2.79 billion lor capital equipment

Metalworking will
in

addition, there are almost incalculable losses to railroads,
truck lines, utilities companies, and other suppliers of services
and goods to the steel industry, "Steel" pointed out.

outstanding.

included)

Equipment in Second Half of 1959

Automotive

the

not

are

Losses

employees

salaried

and

Industry

Metalworking

In

stock.

May

the

(hourly

industry

metalworking weekly
pointed out. It cost the companies $20 million to shut down for
the strike. It will cost them another $20 million to start up. An¬
other cost to the companies is $72 million in overhead, deprecia¬
tion, and salaries of their nonproduction workers through July 27.
Those

per

common

that

estimated

steel

operations.

reports from those companies, it
1959 payroll for the entire iron and.

On the basis of the

NOTE:
is

of steel, and

marketing

and

and revealed

have cost steelworkcompanies $378,000,-

By Monday July 27, the steel strike will

$135,200,000 in lost wages and the steel
000 in lost sales "Steel" magazine reported.
ers

pany's holdings equal to approxi¬
mately 57% of the debentures to
be
outstanding and its 665,000
shares will be equal to approxi¬
mately 57% of the total number
of

Employees and Companies

each

for

$17.30

the

make

engaged in the produc¬
exclude mining and non-steel-

The above data cover only employees

"Steel"

at

Compagnie de Saint-Gobain is
purchasing 275,000 shares of com¬
mon
stock
at
$17.30 per share
under an option contract. It will
also exercise all of its subscrip¬
tion rights by subscribing to $6,400,000 of the debentures and 153,shares

experts.

Steel Strike's Costs to

shares held. Both rights expire at
3:30 p.m. (EDT) on Aug. 12, 1959.

600

distribution

mill

for

transferable and

purchase

call

to

principal

$100

are

preceding month and

May 1959, against 40.7 hours a week in the
34.2 hours a week in May 1958.
' "

and

subscribe

debentures

stock

Age" said the settlement,, when it comes, probably will
for a wage boost of less than 10 cents " an hour—

"Iron

have

competition among the mills to maintain pre-strike customer
relationships. Who gets delivery when will pose ticklish questions

eight shares of common stock held.
The
subscription rights for the
common

of 39.9 hours a week in

average

an

,

$412,165,000, while the employment during that month was 663,900.

possible.

Depending on length of the strike, the mills will face serious
delivery problems when the walkout ends. There will be strong

1983

non-transferable

holders

strikes since the war.

plant efficiency.

sub¬

due

until Nov. 1, 1971)
268,141 shares of author¬

are

worked

earners

combined

in April 1959,

.

^

plant operations.
The mills have offered to. consider modest
fringe and wage concessions in return lor more latitude in raising

ized,
unissued
common
stock.
Subscription rights for the deben¬
tures

considerations:

Wage

will

perhaps closer to 5 cents—if it is to be conveniently called "Noninflationary." In this connection, the steel mills have not been
able as yet to translate into cents per hour what it would be
worth to have more freedom to effect money-saving changes in

to

respect

$11,172,600 of 5Vz%

for

these

around

made

1,
1971.

(convertible
and

costs

(2) Either that, or the companies would have to abandon the
principle that to protect their profit position higher wages must
be offset by higher prices unless compensating economies
are

and
price

opening of business July
rights to subscribe for

issue

of whether steel

thre"~T}uestion

$396,914,755 in May 1959, against $385,488,363
and $257,965,765 in May 1958.

was

making employees in companies having such other

1959

ordinated

said

magazine

part of the price of the inevitable strike settlement revolves

as

costs.

been able to accomplish despite five previous

stockholders of record at

common

The

rise

direct payroll

payroll for hourly and salaried workers

total

The

of

to Nov. 1,
subject to

or

company

one

addition to the

in

1958

Age" continued: "That's why this strike will be such a
to settle. And whether it can be settled without a steel

tion

are

restrictions

costs

price boost remains to be seen."

share after Nov.

per

And

(1) If the companies are to avoid employment cost increases,
they would have to stop the union cold, something they have not

stock at

common

costs.

$33,000,000

to

shares of

200,000

Industry

of

of

6% first mortgage bonds due 1982
with warrants for the purchase of
unissued

hard

issue

Co.

Insurance

up

"Iron

the average
payroll in dollars.
The record average hourly payroll cost for wage earners dur¬
ing May 1959 was $3,346, against $3,340 in April 1959 and $3,095
in May 1958.
Not included in these figures are costs of pensions,
supplemental unemployment benefits, social security and insur¬
ance
which amounted to an average of 33.2 cents per hour in
hourly payroll cost of wage earners and the total

asserted,

starts

1959

Thursday, July 30,

Meanwhile, all-time monthly records were set in

4

page

The State of Trade and

Financing Program
American-Saint

jrom

.

.

.

decline
units

steel

trttc|Tproduction
from
ftije

were

was

the

activity.

An

estimated 26,508

compared to 27,111 the week before.

car-truck

scheduled for

previous week
At

previous week's

programmed

Combined

i

for week ended July 25 also showed a

.

for the week under review
units—off 1.4% from the total of the

production

152,470

(154.613).

end of the week, domestic

car

production will reach

\

Volume

190

Number 5868

.

.

The Commercial and Financial
Chronicle

.

(443)
estimated 3,721,339
units, a
period (2,512,829).
Truck production this
year
an

last year's turnout of
499,606.

48%

boost

over

the

1958

same

textiles, apparel, printing, and publishing. Among retailers, im¬
provement in furniture, housefurnishings, and
drug stores was
offset by increases in the
food, general merchandise, and apparel
lines., Personal and business service concerns and building sub¬

■

(749,492

units)

is

50%

up

from
■

contractors

Electric Output 10.2% Above 1958 Week
The amount of electric
energy distributed by the electric light
power industry for the week ended
Saturady, July

and

25,

estimated at

For the week

above

ended July 25 outnut increased
by
the previous week's total of

that

of

kwhf and showed

or

of the comparable 1958 week.

10.2% above that

was

increase of 2,826

an

21.3%

week
the

below

cars

1958,

or

but

a

Highest June Record for

the week

in

of

July

18

were

the

on

cars,

preceding week reflecting the resumption of work by
the coal miners alter their annual
vacation. However, the increase
in coal loadings was
substantially offset by the loss of traffic as
a result of the strike in
the steel
industry, which became effective
July 15.

Trucking

Associations, Inc.. announced. Truck tonnage was one-half of 1%
ahead of that of the
previous week of this year.
These findings are based on the
weekly survey of 34 metro¬
politan areas conducted by the ATA Research
Department. The
report reflects tonnage handled at over 400 truck
terminals of
common carriers of
general freight

the 11,991

was

new

103,000,

was

of

a

year ago,

debentures due 1979 on
the basis of $100 principal amount
debentures for each 14 shares
of capital stock held of record on

July 29. The subscription price is
100%. The right to subscribe will
expire on Aug. 12, 1959. The of¬
fering has been underwritten by
a
group of
investment bankers
headed by Lehman Brothers and

Incorporations

Hornblower &

listed

for

the

first

six

ate

months

consensus

in

it

or

be

opinion is that much of the sharp increase
begun last Fall was due to the approval on

difficult to

from

this

estimate

what

legislation and how much

was

due

to

from the recent recession.

and

The

Production for July 18 Week
Lumber shipments of 475 mills
reporting to the National Lum¬
were
0.2% below production for the week
ended July 18.
In the same week new orders of these mills were
9.9% above production. Unfilled orders of
reporting mills amounted
to 41% of stocks.
For
ber Trade Barometer

at

recovery

reporting softwood mills, unfilled orders,
days' production at the current rate, andgross stocks were equivalent to 40 days'
production.
For the year-to-date,
shipments of reporting identical mills
were

equivalent to

were

1.0%

above

19

production;

orders

new

1.9%

were

above

pro¬

duction.

Compared with the previous week ended July 11, production
reporting mills was 13.9% below; shipments were 21.1% above;

of

orders

new

week

in

1958,

shipments

17.6%

were

The

level, however,

264

of

the similar

228

of

1957.

week

There

noticeably below the
substantially from the

was

last

was

year, but up
decline of 16%

a

from

the

291

that

oc¬

curred in the comparable week of
prewar 1939.
Failures with liabilities of
$5;000 or more fell to 217 from the

previous week's 222 and

were

below the 223 of

a

20

week

Small

year ago.

casualties, those involving liabilities under $5,000 moved
from

to 28

up

earlier,

but were well below the 41 of the sim¬
ilar week last year.
Twenty of the failing concerns had liabilities
in excess of $100,000, the same as in the
prior year.
The week's slight increase was concentrated in
a

manufacturing,
to 51 from 42, in retailing, up to 112 from 110, and in construc¬
up to 32 from 29.
Among wholesalers, failures dipped to 28
from 37 and in commercial service
they were down to 22 from
up

tion

24.

Noticeable declines from

tion

offset

increases

in

a

year ago in

manufacturing,

retailing and construc¬
wholesaling, and com¬

mercial service.

Geographically, increases from the preceding week were re¬
ported in New England, up to 10 from eight, in the West North
central, up to nine from three. In the West South Central, up to
18 from

cific

12, in the Mountain, up to four from one, and in the Pa¬
up to 76 from 57.
Failures dipped in three regions,

States,

including the Middle Atlantic, down to 67 from 79, in the East
North Central, down to 43 from 49, and in the South
Atlantic, down,
to

from

10

25.

Casualties

in

the

East

South

Central

numbered

eight, the same as the prior week. While the level rose over
ago in the East North Central. East South
Central, West

a

year

South

Central, and Pacific regions, it was lower in the New England,
Middle Atlantic, West North Central, and South Atlantic States.
There was no year-to-year change in the Mountain States.
Canadian failures remained at 23, for the third week in
and below the 26 in the comparable

Failures

Rise

in

June

week

a

year

a

row

ago.

but Liabilities

Are

Off

Business

failures, contrary to a usual seasonal dip in June,
10% to 1,244. Although tfye increase prevailed in all
opera¬

rose

tions

except

$100,000,

construction

casualties

did

and

in

reach

not

all

liability size

the

toll

groups

showed

steers

a

year

ago.

'

-

May occurred in wholesaling, where
tolls climbed noticeably in the
building materials and food trades.
In

manufacturing, steel industry casualties

and

in

since

retailing

March

more

1958.

restaurants

General

took

succumbed

builders

a

marked

than

accounted

for

upturn,
in any month
construction's

contrasting decline.
Except for a 14% decline from year
ago levels in manufac¬
turing FRASER
Digitized for failures, tolls held close or exceeded those in June 1958.
Manufacturers

in several industries


had

fewer

casualties—food,

by

The

Dun

&

Bradstreet,

Inc.,

a

close to the

moderate dip in corn

they

X

i.

For

the

fourth

consecutive

week

the

Wholesale

Food

Price

Index, complied by Dun & Bradstreet, Inc., declined from the
prior week. On July 21 the index stood at $5.98, the lowest level
so far this year and
the lowest since Nov. 6, 1956 when it stood
at $5.95.
The current index was 0.3% below the prior week's
$6.00 and down 9.7% from the $6.62 of the corresponding date
a

year

ago.

Higher in wholesale price this week were corn, barley, lard,
butter, milk, and cocoa. Lower were flour, wheat, rye, beef, hams,
bellies, coffee, cottonseed oil, potatoes, and hogs.
The Dun & Bradstreet, Inc., Wholesale Food Price Index rep¬
resents the sum total of the price per pound of 31 raw foodstuffs
and meats in general use; It is not a cost-of-living index. Its

Continued,

on

page

32

mandatory
which

required to

the"
re¬

additional

an

$2,800,-

For

sinking fund

pur¬

at

prices
to

ranging

from

100%.

issuance

of

the

deben¬

comprise

Now

Corporation

DETROIT, Mich.—C. N. David¬
&

son

Co., Penobscot Building, is
its
investment
business as a corporation. Officers
now

are

conducting

Richard L. Coskey, President;

Samuel I.
Arnold

Shuman, treasurer; an<J

M.

Gold.

French & Co. Opens
AUSTIN,

Tex.—French & Co.,
Inc. has been formed with offices
at 704 Colorado to engage in a
securities

Thomas

slight dip in sugar volume during the week, but
prices moved fractionally higher. Although coffee prices picked
up at the end of the week, they finished moderately below a week
earlier, trading was steady. Cocoa prices moved somewhat higher,
reflecting a gain in trading.

"...

under

of $964,000 and 6,575,948 shares of
stock.

a

1

share.

common

was sluggish this week and prices were some¬
Except for a few small sales to European and South
American importers, export
trading in flour was limited.
With
many buyers anticipating lower prices when the new crop reaches
the market, rice trading
lagged and prices remained unchanged.

Wholesale Food Price Index Down Again to New Low
For the Year

a

outstanding
capitalization
long term debt of
$220,171,000; sundry indebtedness

purchases, but prices remained

week.
Exports of cotton in the week ended last Tuesday were
estimated at 49,000 bales, compared with
39,000 in the prior week
and 94,000 in the comparable period a
year ago. Shipments through
July 21 were estimated at 2,705,000 bales, compared with 5,523,000
in the corresponding period last season.

a

of

tures

will

Commodity Price
dipped to 275.51

Cotton prices on the New York Cotton
Exchange held within
narrow range, but finished
slightly below those of the preceding

of the company

general redemption purposes
may
be redeemed at
any

Upon

Flour volume

..V

to

104%%

what lower.

a

fund

up

For

Dips Again

Hog receipts in Chicago edged up somewhat in the latest
we<^k, but trading was limited and prices were moderately lower.
There was a slight dip in the salable
supply of cattle and trans¬
actions dipped resutling in a price decline on steers.
Although
lamb prices rose fractionally, purchases
sagged and receipts were
light. Following the dip in hog prices, prices on lard were appre¬
ciably lower.

convertible

the debentures will be re¬
deemable at the principal amount.

preceding week.

was

are

poses

Supplies of oats expanded moderately during the week and
buying picked up; oats prices were substantially higher.
There
was an
appreciable rise in soybean trading which helped boost
prices moderately over the prior week.

There

benefit

inclusive.

Although trading in wheat for both domestic and export use
limited this week, offerings were
light and prices moved up
Although volume in the rye market was dull, prices ad¬
vanced fractionally. Better weather conditions in
growing areas
resulted in

ground

both.

optionally retire up to $2,800,000 during the years 1964-1968,

general commodity price
lower prices on lard, coffee,

Daily Wholesale

ac¬

aircraft

may

slightly.

below

sharpest rise from

reflecting

cotton.

or

and

annually during the manda¬
tory sinking fund period, and also

consecutive week the

decline,

compiled

Index

powered

flight

re¬

000

was

an

The

a

and

Price

as

capital,

debentures

tire

the

group,

(1930-32=r) on July 27 from the prior week's 276.14 and re¬
mained well below the 277.87 of the
corresponding date a year ago.

Furthermore, their dollar liabilities

10,000 in June

Commodity

For the third

level

the

time

Wholesale

of

1,260 a year ago.
continued down to $49 million,
8-month low and 20% short of last
year's volume.
Concerns were failing at an
apparent annual rate of 53 per
.10,000 listed enterprises. While this rate moved higher than in
earlier months this
year,
it was less severe than the 57 per

of

the

either

principal amount
annually.
Pan
American, at its option, may re¬

imprint. Write: Secretary, Henry J. Fink, Commodity Exchange,
Inc., 81 Broad St., New York 4.

Index,

Up Fractionally

Commercial and industrial failures rose
fractionally to 245 in
the week ended July 23 from 242 in the
prior week, reported Dun
& Bradstreet, Inc.
The

the hide

used

time at $30

any

of

Member firms may obtain bulk
copies for use with their house

hogs,

were

Business Failures Edge

and

jet

debentures

sinking

publication, developed under the direction

anticipated

working

company will be
tire $2,800,000

delineates clearly
the current hide contract and
gives a full explanation of how hide
futures are traded on Comex. Specific
examples showing how
the tanner, producer and dealer can make
use of the Exchange's
hedging facilities are included.

above.

Compared with the corresponding
production of reporting mills was 0.5%
above;
0.5% above; and new orders were 0.1% above.

new

of

sale

Beginning in 1969 the issue will

Commodity Exchange, Inc., announced publication of a new
booklet, "The Hide Futures Market," as part of its continuing
public relations and educational program.
public relations committee

to

into capital stock

re¬

Hide Futures Market

on

is

be

related

have

Comex Publishes New Booklet

Shipments Were 0.2% Below

of

equipment,

throughout the country.

Lumber

the

as

quisition

Of course,

proportion of the rise

from

a
portion of the funds
quired in connection with the

of

proprietorships and partnerships to incorporate.

would

sulted

It

will

addition

an

incorporations
Sept. 2, 1958 of the Technical Amendments Act which
provided
for tax
advantages for small corporations and encouraged many
small

funds.

proceeds

a

year ago.
The

proceeds
debentures

will initially be
added to Pan American's corpor*

peak for any first six months period. There
increase of 46.1% over the
70,479 of the comparable period

an

Weeks.

Net

the

•

concerns

Airways,

of

and 28.2% over the prior

12,605 set in 1955.

The number of
of 1959

a

week ended July 18, was 12.9%
ahead of the corresponding week of
1958, the American

over

June record of

Like Week in 1958

Intercity truck tonnage in the

34.7%

up

World

dinated

record, reports Dun & Bradstreet, Inc.
This was the 12th
a row that a
monthly record was set. The number came
16,157 in June, down 3.0% from the prior month's
16,660, but

to

5.5%

or

American

Inc. is offering to its stockholders
the right to subscribe for $46,971,000
of 4%%
convertible subor-

month in

30,644

Intercity Truck Tonnage 12.9% Ahead of

New Business

Rights Basis

a

Pan

Although the number of new business
incorporations in June
dipped slightly from May, the level was the
highest for any June

five-tenths of 1% above the
decrease of 158,289 cars or

corresponding week in 1957.

Loadings
above

in

On

reported

Illinois, California, and Colorado.

Loadings 0.5% Above Corresponding 1958 Week

corresponding

Atlantic States

in California to a 9-month
high. From June a year
South Atlantic casualties were down
28%, reflecting a sharp
drop in Florida. However, five regions suffered more failures
than in the previous June. The most
noticeable increases centered

Loading of revenue freight for the week ended
July 18 totaled
585,070 cars, the Association of American Railroads
announced.

This

Middle

ago,

in

Car

Central and

Debs, to Stockholders

1958.

increase

an

162 million

13,415,000,000

gain of 1,258,000,000 kwh.

a

East North

above

Pan American Offers

marked upturns from
May, with casualties running heavier in
large cities, particularly Chicago, Cleveland, and Pittsburgh: The
only declines from the preceding month occurred in the South
Central and Pacific
States; the latter area's total fell off despite

^

was

13,577,000,000 kwh., according to the Edison. Electric

Institute.

kwh.

The

pushed mortality in their divisions

31

business.

M.

Officers

are

French,

and Thomas M.

president;
French, Jr., secre¬

tary-treasurer.

Form ESA Distributors
WASHINGTON, D. C. — ESA
Distributors, Inc. is conducting a
'

securities business from offices at
1329 E Street, N. W. Officers are

Joseph Amann, president; William
L.
Bencan, vice president; and
Albert

A.

treasurer.

Orth,

Jr.,

secretary-

The Commercial

32

Continued jrorn page

Industry

general trend of food prices at the

is to show the

chief function

Now Nationwide

noticeable

A

sales

in

rise

women's

of

Fall

apparel

helped

trade appreciably over a year ago in the
July 22, offsetting the effects of the steel

retail

over-all

boost

week ended Wednesday,

in

strike

volume

on
retail trade.
Year-to-year gains .also
apparel, furniture, and floor coverings, but
down somewhat in air conditioners and fans. Scat¬
areas

some

men's

in

occurred

was

reports indicate that sales of new passenger cars slipped,
from the prior week, but remained well above a year ago.
The total dollar volume of retail trade in the week ended this
tered

Wednesday was 4 to 8% higher than a year ago, according to spot
estimates collected by Dun & Bradstreet, Inc. Regional estimates
varied

the

from

1958 levels

comparable

by the following per¬
to +11; East North
South Atlantic +4 to

centages: Mountain and Pacific Coast +7
Central and West Norlh Central +5 to +9;

+ 8; Middle Atlantic +3 to -f-7; East South Central +2
West South Central +1 to +5; New England —3 to +1.

to + 6;

their buying of Fall
extensive clearance sales promotions
held volume in Summer sportswear and budget cotton dresses
at a high level. The buying of men's apparel moderately exceeded
that of last year, as here again shoppers were attracted by sales
promotions. Interest centered on tropical suits and straw hats,
while the call for furnishings was sluggish.
Marked increases in sales of furniture, floor coverings, and
shoppers noticeably stepped up

Women

suits and coats this week and

good part of the year-to-year rise in
goods this week. Best-sellers in
furniture
were
lawn tables and chairs, occasional tables and
upholstered chairs. Although purchases of air conditioners and
fans lagged
moderately behind a year ago due tq rainy cool
weather in some areas, year-to-year gains occurred in refrigera¬
tors, laundry equipment, and dishwashers. Retailers reported a
slight rise over a year ago in sales of linens.
Total food sales matched those of the prior week.
Increased
buying of picnic food specialties offset declines in fresh meat,
poultry, and baked goods.
Despite a short supply of canned corn, packers have reduced
prices of carryover corn to bring them in line with anticipated
new pack prices.
New packs of peas, beans, and peas and carrots
opened at slightly lower prices than a year ago.
There was a decline of 4% last week from the prior week
in butter processing, and it was down 9% from the similar 1958
period. Meat production was up 7% from last year, while cheese

debt-trends includes

Act

Minors

to

tion arising

over-all

output

volume

excessive

became law

down

was

8%.

Nationwide Department Store Sales Up
7% for July 18 Week

;
;

%increase was noted.
According to the Federal Reserve System department store
sales in New York City for the week ended July 18 showed an in¬
crease
of 7% from that of the like period last year.
In the
to

July 18

preceding
was

an

8

week,
while

down

ended July

18

a

11,

July

27

June

2%

July 18 showed a 4%

a

1%

increase was reported.

showed

a

1%

increase.

Four

benefit of

the

minor by trans¬

a

into

the

of "'A' as custodian for

(the

property

such

ferring
name

minor) under the Illinois Uniform
Gifts to Minors Act". Any adult,
trust company can

or

be named as

custodian.
Act

The

Association. The Illinois

Bar

Commission
is

Jr.

State

Uniform

on

Albert E. Jenner,

which

of

Laws

Uniform State

on

approved by the Ameri¬

Laws and
can

Of

Conference

National

the

by

initially prepared

was

Commissioners

chairman,

successive year. A survey

1 to

for both gross

ures

debt, and net
duplica-

eliminating

after

debt

At the end of 1958 net

tions.

billion a year earlier. The
is more than four times
large as the $190 billion at the
close of prewar 1940.
However,
the
growth of national income

$736

1958 figure
as

.,

.

,,

has

then

since

than

more

pace

with that of debt.
there

was

\
»

to express the values of goods and services,
form of 'inflation' has been a recurring theme.

.

West Jackson

the

of

once

more.

The

version is called

new

by the creeping inflation¬
ists do not appear to be any different in
significance
for the current generation from the kinds of issues
visualized by the popular economics of 'secular
stagnation' in the 1930s, or perhaps of 'bimetallism'
and others

even

further back.

causes

wages,

j

futility in reaching

any

for concern, such as administered

and

53.0

189.9

1946

229.7

13.6

93.5

60.6

397.4

1958

232.7

50 9

246.9

239.7

770.2

+$3.3

—$13.3
+ 17.9
+153.4

the

clearly

harmful

+$28.3
+184.9
+

2.9
+37.3

—

3.0

'

$19.3
7.6
+179.1

—

$1.0
+207.5
+372.8

—

+

enterprises.

noncorporate

has

cilities. When the borrowed money
is

opened

a

branch office

Central

North

425

at

inflation in the future, we
should avoid an excessive rise in
the Federal debt through continual
heavy budget deficits."

useful purposes such as new homes
and new or enlarged industrial fa-

PHOENIX, Ariz.—A. G. Edwards
& Sons has

Avenue

under the management of

Carlyle

Detjen.

represents income to
Over a long period
of years, the amount of outstanding debt has increased along with
spent,

it

the recipients.

the

volume

Future

business.

of

.

will

wealth

further expan-

mean

sion of debt.

B.

(Special to the financial chronicle)

Cassell has joined
Dean

to"nmuSUor whenVtacomeTs
reduced,

Joins Lamson Bros.

Bros.

with

connected

&

Co.,

North

120

he

Unless

BLOOMINGTON, 111.—Philip W.

Center Street.

or

when he is hit by some
unforeseen

and

sudden

(Special to The Financial Chronicle)

now

witter

&

the staff of

Co.,

expense.

savings

sufficient

has

to carry him through, he
to reduce his everyday

is forced

spending
meet his debt payments.

to

"Then

South

632

Spring Street.
..

—

Street.

is

n/-..

^

LOS ANGELES, Calif.—William

"This does not imply that all
Sheldon
Haas will represent Ira Haupt additions to debt are automatically
Co. from offices at 16421 Sun¬ beneficial. For an individual, debt

Calif.

SEPULVEDA,

.

Joins Dean Witter

growth of the nation s income and

New Haupt Office

too,

what

seems

like

a

Lloyd Arnold Adds
(Speclal t0 TKt PlNANCIAt c„R0NIClEl

BEVERLY HILLS, CaliL-Albert
^hei, J° ^
? a
Se ? ?.!
?rJJs ^
eAen
? %
? oS?
Jfloyd Arnold & Company, 364
North Camden Drive.

^

,

,

^

^

,

.

w- ,

iyittur

~

VYltn L?ean YYllrer

(special to the financial chronicle)
Now Robt. C. Conolly Co.
SAN FRANCISCO, Calif.—Kenneth L. Brown is now affiliated
(Special to The Financial Chronicle)
illustration is the serious decline with Dean Witter & Co., 45 MontWAUKEGAN, 111. —Robert C.
in farm income during the 1921
gomery Street, members
of the
Conolly and John H. Conolly
depression, which led to a wave New York and Pacific Coast Stock
have formed a
reasonable level of personal debt
in good times can become very
burdensome in bad times.
One

partnership, Robert

C.

Conolly

tinue

the

Robert
ton

&

Company,

investment

C.

to

con¬

business

of

Conolly, 223 Washing¬

Street.

of foreclosures on mortgaged farm

Another is the drastic
slump in total personal income
during the 1930-1933 depression,
amounting to 45% in four years.

has

Mich. —Arthur

been

admitted

G.

to

part¬
nership in W. B. Wolf & Company,
Penobscot Building.

Forms Marshall Assoc.

the

111.

Wilfred

—

business

from

at

75

East Wacker Drive under the firm
name

of Marshall

and

Associates.

Monthly Review.

members

72

he Government,

name

Stock

Exchange
will
be
changed
Warburton, Greiner & Co.

to

therefore, had to
These were fi-

borrow vast sums
nanced
of

only

in

part by the savings

investors, and the remainder by

what amounted in effect to print-

Consequently the
supply outran the supply

money.

goods, which generated a sharp

^"Even'In
duction

(Special to the financial chronicle)

Yates has become connected with
Dean Witter & Co., 34 North First
street,
_

.

tends

the

limits

of

ca-

,

Capital Planning Opens
NASHVILLE,
pjanning

a

Tenn,

is

con-

securities business from

Third National Bank

Pryor
Marshall

Bullding. officers
c
b
president;

are

*

tw^'Apm-v

BSurlr

Capital

—

Inc.

Services,

III

E.
E.

vice president and

and P

A

Todd

secre-

!^asur^r.'
^ fAr^eHv
tary. Mi. Cosby wa^ f
y

President of Cosby and Co. of

Clearwater, ria.

New Branch
CLIFTON, N. J.

—

Edwards &

supply, further Hanly has opened a branch office
priming by the Government at 955 Allwood Road under the
to promote inflation by en- direction of James Vanderbeck.

pacity and
pump

peacetime, when pro-

reaches

'

a

amples, of which World War II is
the great inflations stemming frorn the steep ascent of Federal debt during wartime. In each

of

Warburton, Barnett & Greiner,
Wall Street, New York City,
of the New York

whole,

one, are

money

Warburton, Greiner Co.
1 the firm

a

rapid expansion of debt beyond
the growth of production can
cause
inflation.
The classic ex-

ing

Effective Aug.

as

0ff|ces jn

G.

a secu¬

offices

nation

Jcjns Witter Staff

?^ oar to meet wars> to* receipts ^lacting
ma3°r expenditures and
failed

(Special to The Financial Chronicle)

CHICAGO,

Exchanges,

properties.

"For

W. B. Wolf Admits

conse-

Let's not accept it.

1929-1940
1940-1946

A. G. Edwards Branch

prices"and

further

Change:

♦Includes

of

Definitely unacceptable!
Digitized L£LFRASER
for


formerly
Co. and

Need Not Cause Misgiving
larging the money supply in relabeen formed
with offices at 13 H Street, N. W.
"In a growing economy such as Hon t° the supply of goods.
True
to engage in a securities business.
ours, a rising trend of debt is not
prosperity does not come from re¬
Officers are Taylor Bynum, Presi¬ in itself a cause for misgiving. The peated doses of inflation via defident;
Robert
S.
Miller,
Vice- borrowing of money is a means of ck financing by the Government,
President; and Mary Lloyd, Sec¬ putting funds to work for many H we wish to forestall that kind

Inc.

Securities,

quences that it would also produce, make creeping

r

75.6

Boulevard, members
York and
Midwest

Form Potomac Sees.

inflation unacceptable as a basis for
public policy."
—Federal Reserve Bank of New York, June

J

$88.9

16.5

Marshall, Jr. is conducting

of the underlying

,

WASHINGTON, D. Q.—Potomac

rities

"Its

19291

'

••

Total
$190.9

^Individual
$72.3

Corporate

1946-1958

Wolf

"The issues confronted

-

Private-

State & Local

$13.2

Spencer Trask &
Francis I. du Pont & Co.

'creep¬

*

Outstanding

Federal

End of:

are

given in the table below:

44.8

DETROIT,
*

*

Data for the three periods

$16.5

with

ing inflation.'
*

Thus in

1940

Stock Exchanges. He was

Lamson

work

«

New

Tiemann

though the actual inflations of past genera¬
tions have, as a rule, either had to be stopped by
drastic action or ultimately have destroyed them¬
selves, often with intense human suffering and
severe economic loss, there seems to be a
tantalizing
fascination in the illusion of greater wealth created
by rising prices. That lure has led time and again
to a search for a new and more promising form of
inflationary solution to pressing economic problems.
Today, in the United States, the alchemists are at

in the debt of State and
governments."
-

141

Daniel F. Rice and Company,

money
Even

local

Governmental

111.—Howard W.
Seibert has become associated with

some

•

kept

$2.14 of net debt

(Special to The Financial Chronicle)

&

"Throughout history, wherever people have used

individual, as well as a substantial
increase

,

.

Net Debt

CHICAGO,

"Creeping" Ruin!
J

debt

$770 billion, as compared with

was

ment during the depression of the
1930s. Private debt (corporate and
individual) declined in most of
those years. The second, from 1941
through 1946, covers World War II
and the immediate postwar period,
Here the Federal debt skyrocketed^
because of the huge volume of
war financing. The third or postwar era brought a steep climb in
private debt, both corporate and

(In Billions of Dollars)

burst

!

recently

by the Department of
Commerce furnishes detailed fig-

With Daniel F. Rice

weeks

increase.

It is simply to avoid an
through continual heavy

debt

published

1958

the leading

was

of this legislation.

sponsor

July 4

gain over 1958 was recorded and Jan.

Federal

the

in

rise

.

retary-Treasurer.

week, for July 18, an increase of 9% was reported. For the four
July 18, a gain of 8% was registered and for Jan. 1

as

July

Illinois,

Department store sales on a country-wide basis as taken from
the Federal Reserve Board's Index for the week ended July 18,
increased 7% above the like period last year.
In the preceding
weeks ended

suggestion

a

makes this type

household

in

Assayed

of beneficial and harmful
to how to forestall infla¬

from deficit financing.

draperies accounted for a

-

Thursday, July 30, 1959

.

22. This action
budget deficits. The Bank's tabulation shows per capita debt
of Act completely
has declined from $2.33 in 1940 to $2.14 in 1958.
national in scope, having been en¬
acted in every State
including
The July Business Bulletin, pubper dollar of inc'ome, as against
Alaska and Hawaii, as well as the
lished monthly by the Cleveland $2.33 in 1940.
District of Columbia.
Trust
Company offers a timely
"Three distinct periods are apThe new law provides a simple,
reminder about debt.
parent. The first, from 1929
effective means of making gifts
The Bulletin states that, "total
through 1940, shows a marked rise
of securities or cash to minors. It
outstanding debt in this country *n the Federal debt, resulting from
permits the making of a gift for
moved up in 1958 for the 12th deficit financing by the Governin

Apparel Sales Feature Retail Trade

Women's Fall

Cleveland Trust Company's analysis

By signature of Governor Wil¬
liam
G.
Stratton,
the
Uniform
Gifts

wholesale level.

■

.

.

12-Year Continuous Rise in Total Debt

Gifts io Minors Ad

31

The State of Trade and
.

and Financial Chronicle

(444)

labor

Volume 190

Number 5868

.

.

The Commercial and Financial Chronicle

,

(445)

Indications of Current

Business Activity
IRON

AND

STEEL

Indicated Steel operations
Equivalent to—•
Steel ingots and castings

\

(net

42

—

oil

and

condensate

Aug.

to stills—daily average
output
(bbls.)

month available.

month ended

or

Previous

Month

Week

Ago

on

(bbls.)_

57.8

l

§362,000

*365,000

2,215,000

1,561,000

6,858,275
117,946,000

6,802,425

1,644,000

1,864,000

July 17

11,457,000

12,731,000

6,466,000

6,310,000

6,891,000

(bbls.)

-Residual fuel oil

ASSOCIATION
Revenue

7,450,000
27,509,000

OF

ENGINEERING

28,232,000

28,494,000

129,352,000

125,818,000

111,930,000

54,269,000

54,349,000

54,439,000

July 18

585,070

554,426

of cars)—July 18

723,738

469,892

582,244

457,519

592-;001

450,902

July 23

$•351,700,000

$446,600,000

$491,900,000

237,300,000
414,400,000

$455,420,000
152,643,000

July 23

241,200,000
201,800,000

302,777,000

224,914,000

As

79,400,000

39,400,000

July 18

7,120,000

'1,520,000

9,335,000

July 18

7,535,000

354,000

44,000

400,000

458,000

COAL

of

cars)

from connections

CONSTRUCTION

—

(no.

U. S.

Private
Public

..

I——

:

construction.
construction

State and

municipal.;

Federal
COAL OUTPUT

(U.

Bituminous coal

S. BUREAU

Pennsylvania anthracite (tons)
SYSTEM—1947-49
ELECTRIC

Electric

output

FAILURES

.—

INDEX—FEDERAL

AVERAGE

=

July 25
INDUSTRIAL)

AND

DUN

—

BRADSTREET, INC
IRON

Finished

steel

(per lb.)

Electrolytic

(E.

M.

&

J.

Lead

(St.

Straits
MOODY'S
U.

L3,415,000

13,749,000

245

242

256

2.64

6.196c

6.196c

6.196c

$66.41

$66.41

$39.17

$38.17

$38.17

:

12.000c

Group

24.700c

24.700c

24.000c

Hay,
Hay,
Hay,

all

102.250c

102.250c

103.875c

95.125C

83.46

92.75

——July28

83.56

83.89

85.85

85.85

85.98

89.37

89.23

100.81

87.59

87.72

87.59

98.41

85.46

85.46

85.96

95.16

81.29

81.66

88.13

84.81

85.07

85.20

84.94

85.07

87.59

87.99

4.14

Potatoes

Utilities

Public

Industrials

4.71

Early

4.04

4.59

4.58

4.75

4.75

4.46

4.47

NATIONAL

5.05

4,55

4.77

4.33

—

r

INDEX

4.78

3.97

4.59

4.56

385.5

400.3

(tons)

JuJy J8

—

255,670

295,404
327,830

255,44ft

56

98

83

AVERAGE

=

July 18

565,951

567,234

495,750

110.80

110.91

109.85

OF

ACCOUNT

FOR

Other

sales

2,475
3,874

4,971

3,311

3,311

4,703

22,657

13,614

summer

13,931

24,152
14,659

33,206

34,308

IIIIII

182,936

265,729

(hundredweight)

(pounds)

17,598
3,783,199

17,434

v.

seed

(tons)

1,736,204

8,048

6,681

15,918

STRUCTURAL
OF

STEEL

STEEL

15,183

51,492

—

INSTITUTE

ERNORS

OF

48,407

(AMERI¬

CONSTRUC¬

of June:

THE

FEDERAL

290,911

241,612

286,798

-365,434

294'. 127

329,240

RESERVE

Seasonally adjusted
Unadjusted
INTERSTATE
Index

July

sales

6,017
18,981

22,553

™

_III

155

2,009,000
,

2,346,590

2,213,060

1,322,770

321,470

335,610

377,580

1,944,660

1,898,780

1,001,640

131

04.2

63.4

£43,775,000

£39,365,000

$382.9

*$381.3

Not avail.

261.1

*259.8

110.4

*109.8

87.2

*86.7

67.8

*67.5

COMMERCE COMMISSION—

of

Railway Employment
(1947-49=100)——

at

middle

of

277,720

1,841,450

July

—

132

153

£20,703,000

__

153

165

_

MEM¬

purchases

Short

24,441

18,434

INDUSTRIAL PRODUCTION—BOARD OF GOV¬

110.31

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered—
Total

10,481
67,134

SYSTEM—1947-49=160—Month of June:

100

TRANSACTIONS

ROUND-LOT

8,556

61,797
21,785
4,581

Contracts closed (tonnage)—estimated—
Shipments (tonnage)—estimated

451,865

July 24

at end of period

47,015

121,924

IIIIII

TION)—Month

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

39,543

52,166

3,874

CAN

262,002

180,359

84

Ju]y

activity

Unfilled orders

278,12.4
274,741

32,485

27,556

109,554

(hundredweight)—

FABRICATED

ASSOCIATION:

,y 7?

21,437

bags)I_I

summer

Hops

3.83

381.1

(tons)—

(tons)

Percentage of

4.79

4.57
380.3

,

Production

4.77

July 28

July 28

——

PAPERBOARD

Orders received

5.08
4.78

414,355

4,045

Tobacco (pounds)
Sugarcane for sugar and
Sugar beets (tons)

3.85

4.06

5.07

-

(bags),

Sweetpotatoes

3.70

4:59
4.71

22,077

260,217

1,422,164
470,449

Total

~

4.80

July 28"

Group

Group

COMMODITY

field

__

spring
spring

Late

3.14

4.72

July 28

MOODY'S

(tons)

240,360

19,913

I
III
I
I

(tons)

Fall

4.09

4.72

July 28

i

:

(tons)

dry

Early

98.73

4,12

4.46

IIIIII
IIIII
HH
I_

941,236

202,341
1,009,625

______

.

3,799,844
1,462,218
1,179,924
282,294

1,181,596

932,878

222,254

Winter

96.54

87.86

bags)

alfalfa

Peas,

91.19

85.2,0

July 28
July 28
July 28

Baa

245,450

1,155,132

II
IIIII

;

(bushels)

wild

Late

—

100,796

86,132

4,224,450

.

Hay, clover and timothy (tons)
Hay, lespedeza (tons).
„■
Beans, dry edible (cleaned—100-lb.

95.47

89.37

July 28
July 28

.

*135,135

64,756

—

24.700c

■

Group

-

July 22
July 22

July 28

Aa

Railroad

(bushels)

(100-lb.

July 28

.

——

107,918

150,593 '

IIIIII_I
——.II
IIIII

Rice.

11.800c

July 28

corporate

82,072

*135,031

(tons

;

—

(bushels)
spring (bushels)

Flaxseed

Government Bonds

*114,169

1

Other

MOODY'S BOND YIELD DAILY AVERAGES:
U. S.

$966,000

June:

thousands):

10.500c

—

$791,000

138,403

(bushels)

10.000c

—

$729,000

of

REPORTING
AGRICULTURE—

OF

10.800c

11.800c

July 28

-

Group

36,439

886,162

A.—

Oats

11.000c

-July 28

Utilities

all

DEPT.

11.500c

12.000c

—July 28

Average

of July l (in
(bushels)—

as

all

S.

11.000c

Railroad~Grou~p~III~I————————I—

1152,272
3,422,876

CROP

—

U.

11.500c

-

3, 862,390

140,004

3,150,104

A.

11.000c

11.800c

12.000c

July 28

A

6,074,002

6,244,122
■

tons)

fabricators—

11.500c

———

3, 898,829

YORK—

Winter

AVERAGES:

DAILY

1, 963,000

*6,226,274

34, 155,000

HO,209

NEW

month

S.

11.000c

corporate

Industrials

For

—

—-July 22

July 22
July 22

j

Public

OF

spring (bushels)
(bushels)———_
Barley (bushels)
Rye (bushels)

—

1,388,000

OUTSTANDING—FED¬

BANK

——July 22

PRICES

;___IIIIIII
month' (net

(000's omitted)—

PRODUCTION

Corn,

24.825c

-

Aa

S.

Wheat,

26.100c

27.600C

81.46

Aaa

to

34,920,000

6,384,126

(tons of 2,000 pounds)—
(tons of 2,000 pounds)

Durum

31.050c

26.375c

at-

247,806,000

20,043,000

May:

.—_I_IIIIIH

of

Crop

$66.49

$39.50

29.550c

__

pig. 99.5% )
(New York) at

BOND

30

INSTITUTE

U.

CROP

5.967c

$66.41

26.975c

at

255,904,000

■

29.600c

...

of

(tons of 2,000 pounds)Refined copper stocks at end of
period
of 2,000 pounds)

12,319,000

————.—.July 22

.

Government Bonds

S.

Average

13,577,000

July 22

(primary

tin

In

All

————

at

Louis)

Aluminum

110

copper—

(delivered) at
(East St. Louis)

June

Crude

QUOTATIONS):

Domestic refinery at
Export refinery at
(New York) at

Zinc

143

July 21
July 21

Lead

tZinc

PAPER

RESERVE

of

Deliveries

July 21

——

PRICES

126

121,327,000

1,708,000

tons)

tons)

end

at

BOARD

(per gross ton)_
Scrap steel (per gross ton)—*
METAL

(net

Copper production in U.

PRICES:

Pig iron

coke

coke stock

COMMERCIAL

&

—July 23

COMPOSITE

AGE

118

102,892,000

36,470,000
(net

MINES)—Month

Refined

July 18

(in 000 kwh.)

OF

(net tons)
Oven coke (net tons)-

INSTITUTE:

(COMMERCIAL

111,350,000

MINES)—Month

Production

RESERVE

100

305,266,000

$282,076,000

shipped between

(BUREAU OF

(BUREAU

COPPER
_

374,988,000

14,818,000
28,599,000

255,849,000

and

350,432,000

13,725,000
19,498,000

IIIIII
IIIIIIII

credits

$285,603,000

327,084,000

—III—III

Pennsylvania anthracite

Oven

OF

MINES):
(tons)-

and lignite

DEPARTMENT STORE SALES

EDISON

OUTPUT

COKE

ENGINEERING

.

$255,568,000

'II—
__

$983,074,000 $1,038,248,000 $1,351,506,000

Beehive

construction

Ago

of June:

NEWS-RECORD:
Total

Year

Month

BANK

77,863,000

179,556,000
25,631,000
113,483,000
67,199,000

RAILROADS:

(number

RESERVE

L

warehouse

ERAL

383,400,000
31,000,000

228,100,000
218,500,000
139,100,000

250,700,000

July 23

AMERICAN

freight loaded

of that date:]

Previous

June 30:

Total

July 17

._

are as

OUT¬

—

exchange
Based t>n goods stored
foreign countries

July 17
July 17

__

i

of

Dollar

200,624,000
26,600,000

at

(bbls.) at

Revenue freight received
CIVIL

192,752,000

8,000,000

28,584,000

July 23

Residual fuel oil

<

189,859,000

7,836,000
28,434,000

July 23

Kerosene (bbls.) at—.
(bbls.)

Distillate fuel oil
'

NEW YORK—As

Domestic

11,266,000

6,563,000

.—

output

ACCEPTANCES

Domestic shipments

1,804,000

12,'701,000

output (bbls.)
July 17
Stocks at refineries, bulk
terminals, in transit, in pipe line
Finished and unfinished gasoline (bbls.) at
July 17

output. (bbls.)

.Distillate fuel oil

.

OF

6,528,385

1,598,000

Kerosene

DOLLAR

Exports

28,419,000

Gasoline
:

BANKERS'

STANDING—FEDERAL

7,016,825

either for tluf

are

Month

Ago

87.2

July 17
-July 17
July 17

;

of quotations,

cases

Latest

ol

.

_

in

or,

Year

*12.9

Aug.

(bbls.

average

production and other figures for thai

cover

Dates shown in first column

that date,

Imports

output—daily

runs

1

or

.§12.8

a

gallons each)

Crude

latest week

—July 17

tons)

P4ERICAN PETROLEUM INSTITUTE:
Crude

Week

INSTITUTE:

(per cent capacity)

following statistical tabulations

week
Latest

AMERICAN

The

June

64.4
—

•

Other transactions
Total

i——July
July

2,162,920

2,280,270

2,276,360

1,279',360

July

sales

Total

318,670

407,240

389,850

265,500

sales

Other

CAPITAL

MIDLAND

ISSUES
BANK

IN

sales

July

25,400

PERSONAL INCOME
(DEPARTMENT

IN

THE

OF

458,220

278,770

500,420

299,070

635,090

729,618

654,933

419,094

81,960

115,890

107,180

132,430

producing
Manufacturing only

713,250

843,416

478,576

BRITAIN
of

June

746,206

829,140

611,006

Service

June

(in

Wage and

~jUjy

sales

UNITED

-July

—

950,596

COMMERCE)— Month

billions):

income—;-

—

salary receipts,

Commodity

total-

____

industries

_

*

industries
industries —

_

37.2

account of members—

round-lot transactions for

45.7,

"

Total purchases——

sales

Other

sales

3,483,448

3,257,843

2,007,364

496,800

526,960

430,450

2,829,866

3,013,510

3,200,416

1,758,986

Farm

3,258,696

3,510,310

2,189,436

Rental

3,727,376

Number

1,571,175

1,653,714

1,842,689

$86,848,352

90,089,963

$106,482,864

979,005
$45,019,661

Odd-lot purchases by dealers
Number

of

Customers'

short sales

July

value

1,317,297

July
—•—July
— July

.

Customers' other salesDollar

$67,845,349

sales by dealers—
Number of shares—Total sales

1,537,468

1,540,429

902,816

5,432

7,682

12,170

6,599

1,311,865

1,529,786
77,071,580

1,528,259
$83,459,923

$38,883,018

896,217

Round-lot
Short

.July

sales

347,730

JuJy

—

Round-lot purchases by
TOTAL

436,710

400,520

294,410

347/730

dealers— Number of shares

4~36~710

400~520

294~410

590,290

8

July

STOCK SALES ON THE N. Y. STOCK
STOCK TRANSACTIONS
ACCOUNT OF MEMBERS (SHARES):

3

564,070

670,280

331,030

ROUND-LOT

FOR

round-lot

Short

sales—

-

,

3

494,010

636,980

617,440

13,181,710

14,804.890

15,144,600

10,237,690

13,675,720

15,387,840

15,781,580

10,855,130

July
July

—

—

3

Month

of

Production
Stocks

Monthly

1,

_

in-

a

tt

H

*12.0
*13.0

22.2

*22.0

*26.4

44
4i

J

*365.3

if

*8.3

366.9

t.

•

M

33,428,000

30,525,000

33,673,000

83

92

$79,139,549

Capacity used (per cent)

30,135,000

*36,378,000

96

(barrels)

29,053,000

32,992,000
36,528,000

(barrels)

of month

SELECTED
RYS.

INCOME

$39,753,696

$44,165,964

20,344,796

20,731,684
64,897,648

29,274,000-

figure.

119.2

*119.4

119.6

119.3

88.1

*88.6

90.7

94 1

107.0

^

-July 21

Ii.2.4

*107.5

108.0

98.4

99.8

103.9-

113.9

128.1

Jujy **

Ulncludes

1,085,000 barrels of foreign crude

128.2

127.9

Plan
pound.

tPrime




Western

Zinc

sold

on

U.

S.

CLASS

I

of

March:

railway operating incomes—
income

)
deductions

Income available

Income
Other

after

for

from

fixed

fixed

income-

4,725,135

charges—

4,442,453

4,608,644

93,851,745

—

—

—

'

taxes

55,696,039

60,289,004

24,271,958

28,681,115

4,271,268

4,285,805

3,977,343

58,038,169

(way & structure & equipment)

income

60,138,492

62,309,437

charges-

deductions

Dividend

On

19,437,331
98,576,880'

income

19,986,153

24,703,772

50,273,507

50,670,204.

50,181,644

34,303,989

15,294,773

15,035,391

45,664,700

28,640,569

24,586,576

824,005

—

8,231,205

1,818,626

2.98

1.77

1.91

$9,869,500

$53,131,900

appropriations:

common

stock

126.0

§Based on new annual capacity of 147,633,670 tons
tNumber of orders not reported since introduction of

runs.

1959. as against Jan. 1, 1958 basis of 140,742,570 tons.

investment

OF

(Interstate Commerce Commission)—

Month

Federal

July

than farm and foods

ITEMS

Net income

——-July zi

foods.

one-half cent a

social

May:
(barrels)

at end

On

Ratio

preferred stock
of

RECT

♦Revised

—

for

id
' )

(BUREAU OF MINES)—

Shipments from mills

income

TREASURY

of Jan.

CEMENT

Depreciation

products

Allxommoditles'other

582,950

U. S. DEPT. OF

Commodity Group—
All commodities

as

.

26.2

income—

'f

*12.0

13.1

contribution

««

M

'

*34.5

12.0

nonagricultural income..

Total

Jujy 8

*

WHOLESALE PRICES, NEW SERIES
LABOR — (1947-49 = 100):

Processed

interest

Miscellaneous

sales

Total sales

Farm

persons

___—

"

*9.9

34.6

8.4

Total

Other

/

sales

Other

of

employees'

PORTLAND

Net

EXCHANGE AND ROUND-LOT

Total

—

__

income

*45.4

12.1

—;

..

"

July

sales

Other

_

"

*37.1
,

10.0

professional
_

Transfer payments

——July

—

(customers sales)—
orders—Customers' total sales

income

and
—

_

Personal

Less

—-—-————July

shares

of

value

Business

Dividends

ODDLOT
DEALERS AND SPECIALISTS ON N. Y. STOCK
EXCHANGE — SECURITIES EXCHANGE COMMISSION
Odd-lot sales by dealers (customers' purchases)—t
■
Dollar

labor

428,830

July

—-—

ETOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF

,

Other

July

——

——

—

sales

Total

2,962,760

July

—

—.

July

Short

.

STATES

Distributing

of

Total personal

the floor—

on

purchases

Total

Total

20,300

355,600

400,900

664,246

Total

42,200

324,170
349,570

—

—

—

transactions initiated

Other

45,300

July

—•—July

—

—

sales

Total

GREAT

LTD.—Month

initiated off the floor—

purchases—

Short

NEW

delivered basis at centers where freight from

East St. Louis exceeds

OF

U.

to

MARKET

AND

S.

fixed

charges.,

TRANSACTIONS

GUARANTEED

A.—Month

of

m

IN

-—

DI¬

SECURITIES

June:

Net sales
Net

purchases

•Estimated.

$73,296,450

33

'i
The Commercial and Financial Chronicle

.

.

.

(446)v

34

Thursday, July 30, 1959

* I N DICATES

Now in Registration

Securities
Missiles

* Acme

•

(8 27)

& Construction Corp.

July 24 filed 200,000 shares of common stock, of which
150 000 shares will be offered for public sale for the

and 50,000 shares will be of¬
the accounts of the present holders thereof.

account of the
fered

for

company,

Proceeds—For general corporate
purposes, including additional personnel, office space,
equipment,' and the provision of funds necessary to
compete "for certain contracts. Office—2949 Long Beach
Road, Oceanside, L. I., N. Y.
Underwriter — Myron A.
Lomasney & Co., New York.
$6

Price

share.

per

^ Acorn Industries, Inc.
July 22 (letter of notification)
(par

capital stock, of
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 (17 cents per share on July 24). 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¬

200,000 shares of com¬

one

equipment and for leasing of a plant in Plainview, L. I.,
N. Y.
Office—930 Newark Avenue, Jersey City 6, N. J.
Underwriter—Lawrence Securities, Inc., 32 Broadway,

ment effective June 1.

June

company

and medical gas operations. Office—Allentown, Pa. Un¬
derwriters—Kuhn, Loeb & Co. and Reynolds & Co. of

Gas Corp.

Alabama

(8/6)

July 8 filed 30,843 series A

cumulative preferred stock,

$100 (with attached warrants) to be offered to stock¬
6, 1959, on the basis of one new

holders of record Aug.

preferred stock for each 30 shares of common
Rights expire Aug. 26, 1959. Warrant,
not exercisable before Jan. 20, 1960, will entitle holder
share of

stock

to

then held.

Price—To be

stock.

of common

shares

3

purchase

supplied by amendment. Proceeds—To pay construction
costs. Underwriters—White, Weld & Co., New York; and
Sterne, Agee & Leach,
•

Alabama Gas Corp.

Birmingham, Alabama.

competitive bidding. Probable bidders: Halsey,
White Weld & Co., Stone & Webster
Securities Corp. and Kidder, Peabody & Co. (jointly);
Salomon Bros. & Hutzler and Equitable Securities Corp.
(jointly). Bids—Expected to be received until 11:30 a.m.
(EDT) on Aug. 18, at the offices of Shearman & Sterling
& Wright, 20 Exchange Place, New York City.
& Co. Inc.;

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
holders 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
rate of

or

one

for the 6%

debentures of the parent at the

for each five shares purchased. Price—$1.25

share. Proceeds—For general corporate purposes and
working capital. Office—423 Fourth Ave., Anchorage,
Alaska. Underwriter—To be named by amendment
per

Aldens, Inc.
July 21 filed $4,550,600 of convertible subordinated de¬

bentures,

Aug.

1979, to be offered to common
stockholders of record Aug. 14, 1959 on the basis of $100
due

1,

of debentures for each 16

fice—Chicago, HI. Price—To be supplied by amendment.
—Lehman

general corporate
Brothers, New York.

Ail-State

purposes.

Underwriter

Properties, Inc.
outstanding shares of capital stock

June 26 filed 38,697

(par $1). Proceeds—To selling stockholders.
be

offered

market

from

time

to

time

the

in

Price—To

over-the-counter

(if the shares are listed) on the American
Exchange at the then prevailing market price.
Office—30 Verbena Ave., Floral Park, N. Y. Underwriter
or

Stock

•—None.
/ Allied Colorado Enterprises Co.
July 13 filed 5,899,618 shares of class A common stock
and 551,140 shares of class A-l common stock for issu¬
ance
under outstanding subscription agreements at 75
cents per share and 6,576,200 shares of class A common
stock for issuance under outstanding option
agreements
at 25 cents per share.
These securities will not be is¬
sued if the options and subscription agreements are not
exercised.
Proceeds—For working capital and
surplus

of subsidiaries

and for general corporate purposes.
derwriters—Allen Investment Co.,

Boulder, Colo.,
Mountain States Securities Corp., Denver, Colo.
Allied

Un¬

and

Colorado

Enterprises Co.
July 13 filed 3,000,000 class A cohimon stock (par 25
cents). Price—90 cents per share. Proceeds—For gen¬
eral corporate purposes.
OfficC^Boulder, Colo. Under.

writer—Allen Investment Co., Boulder, Colo.
Allied

to

(9/9)
class A

funds.

common

stock

Proceeds—To

be

Office—Overbrook Hills, Pa.
Underwriter—Philadelphia Securities Co., Inc., Phila¬
delphia, Pa.
..
company




Underwriter—None.

capital

of

stock

a

of

group

Office—118 N. 11th

"Golden

Age"

stbck.

Foreign Power Co., Inc.
$22,500,000 of convertible junior deben¬
tures, due 1982. Price—To be supplied by amendment.
Proceeds—To be applied in part to the repayment of
outstanding bank loans, and the balance will be used
30

filed

for

general corporate purposes, including investments
in subsidiary companies, to aid in their construction pro¬

Underwriter—The First Boston Corp. and Lazard
Co., New York. Offering—Late this summer.

American
June

25

Investors

filed

Syndicate,

600,000 shares of

Inc.

common

stock

(par

10

cents), and 200,000 shares of 6% preferred stock (no par
value, $9 stated value), to be offered in units consisting
of 3 shares of common ($1 each) and 1 share of pre¬
ferred

Price—$12

($9).

unit.
Proceeds—For con¬
struction and related expenditures.
Office—513 Inter¬
national Trade Mart, New Orleans, La.
Underwriter—
Lindsay Securities Corp., New Orleans, La.
American-Saint

per

Gobain

Corp.
of subordinated' convertible
debentures, due 1983, and 544,314 shares of common
stock.
The
debentures
are
being offered to common
stockholders on the basis of $100 principal amount of
debentures for each eight shares of common stock held
on July 28,
1959; rights to expire on Aug. 12, 1959. The
common shares are being offered to present stockholders
June

26

filed

$11,221,500

the basis of

on

one

new

share for

each

3%

shares held

July 28, 1959; rights to expire on Aug. 12, 1959. Price
—To be supplied by amendment. Proceeds—For payment
of long-term debt and, in part, for plant construction.
on

Underwriter—F.

American &

Eberstadt
St.

&

Co., New York.

Lawrence

Seaway Land Co., Inc.
July 8 filed 500,000 shares of common stock to be of¬
fered publicly. Price—$3 per share. Proceeds—To pay
off mortgages and for general corporate purposes.
Of¬
fice—60
A.

J.

East

42nd

Street, New York.
Gabriel & Co., Inc., New York.

Bankers Preferred Life Insurance Co.

incidental to operation of an insurance com¬
Office—Suite 619, E. & C. Bldg., Denver, Col?.
Underwriter—Ringsby Underwriters, Inc., Denver 2*

expenses
pany.

'

Barton

Petroleum

&

Natural

Gas

Underwriter—

cured

by whiskey warehouse receipts for not less than

2,500,000 original proof gallons of Kentucky bourbon
whiskey produced by the company not earlier than Jan.
1, 1959. Price—To be supplied by amendment. Proceeds
—To finance whiskey during its aging period. Under¬
writer—Fulton Reid

Price—30 cents per share.

Proceeds—For explora¬
development program.
Office — 2100 Scarth
Street, Regina, Saskatchewan, Canada.
Underwriter—
Cumberland Securities, Ltd., Regina, Canada.
tion

&

Co., Inc., Cleveland, Ohio.

Offer¬

ing—Late in August.
Basic

Materials, Inc.
(letter of notification) 1,200,000 shares of com¬
mon
stock (par 10 cents).
Price—25 cents per share.
Proceeds—For mining expenses. Office—c/o Harold A.
Roberts, President, Arroyo Hondo, Santa Fe, N. Mex.
April 9

Underwriter

—

Rosenthal

Hyder,

Co.,

&

Albuquerque,

Mex.

N.

Baton

Rouge Water Works Co.

(letter of notification) 26,643 shares of common
Rights

expire July 29. Price—$11 per share.
enlarge the distribution system. Office—

Proceeds—To
131

to be offered for subscription by stock¬

(no par)

holders.

Lafayette St., Baton Rouge, La. Underwriter—None.

Beverages Bottling Corp.

July 6 filed 300,000 shares of common stock (par 100).
Price—$1.
Proceeds—For general corporate purposes.
Underwriter

Financial

—

Management, Inc., 11

Broad¬

New York.

way,

ic Beverages Bottling Corp.
July 6 (letter of notification) 300,000 shares of common
stock

the

Price—$1 per share.
Proceeds—
purchase of additional facilities for

(par 10 cents).

construction

For

or

manufacture, warehousing and distribution of bever¬

derwriter—Financial
New

Un¬
Broadway,

Office—800 St. Anns Avenue, Bronx, N. Y.

ages.

York, N.

Inc.,

Management,

Y.

(8/10)

Big Apple Supermarkets, Inc.
June

filed

24

11

425,000 shares

cents).

Price—$2
working capital.

of

common

(par 10

stock

share.
Proceeds—Expansion and
Underwriter—Simmons & Co., New

per

York.

it Biuegrass Oil & Gas Corp.
July 15 filed 3,000 shares of common stock

(par value
per share. Proceeds—For expenses in¬
exploring for oil and gas. Office—310 West
Liberty St., Louisville, Ky. Underwriter—None.

$50).

Price—$50

cidental

•

to

Bostic Concrete

June 19

Co., Inc. (8/19)
(letter of notification) $250,000 of 8% convertible
and 10,000 shares of class A
be offered in units of one

debentures due July 1, 1969
common
stock (par $1) to

$500 debenture and 20 shares of class A

Price—$600 per unit.
for

working capital.

stock.

common

Proceeds—To pay obligations and

Office

—

1205 Oil

Centre

Station,

Lafayette, La. Underwriter—Syle & Co., New York, N. Y.
Boston

Corp. Ltd.

March 23 filed 745,000 shares of capital stock (no
par),
of which 500,000 shares are to be sold for the account
of the company, and 245,000 shares by the holders there¬
of.

Distilling Co.

July 6 filed $2,000,000 of 6% secured notes due July 1,
1965.
These are direct obligations of the company se¬

Harbor Marina, Inc.
(letter of notification) 756 shares of common
(no par) and 1,512 shares of preferred stock (no
par) to be offered for subscription by stockholders of
record July 6, 1959 in units of one share of common and
two shares of preferred.
Price—To stockholders, $100
per unit; to the public, $125 per unit.
Proceeds — For
expenses for operating a boat marina.
Office—542 E.
Squanium Street, North Quincy, Mass.
Underwriter—

June

Atnican

Of¬

N. Y.

Jqn. 30 (letter of notiifcation) 100,000 shares of common
stock (par $1.60). Price—$3 per share.
Proceeds—For

stock

&

American

shares of common

Proceeds For investment.

Price—At market.

July 14

—None.

June

ISSUE

REVISED

fice—400 Benedict Avenue, Tarry town,

Underwriter

Street, Brooklyn, N. Y.

ITEMS

companies.

and

Apache Oil Corp.
May 25 filed 350 units of participation in the Apache
Oil Program 1960 and 70,000
rights for the purchase of
common stock (par
$1.25). The offering is being made
only to the stockholders of the company. Each subscrip¬
tion to a unit in Apache Oil
Program 1960, will entitle
the subscriber to subscribe also to 200
rights for the
purchase of one share per right of the company's $1.25
par value common stock. Warrants evidencing the rights
will be

nontransferable prior to Aug. 16, 1960, and will
expire at
2:00 p.m., (CST)
on
Jan. 31, 1962.
Unless
Apache Oil Program 1960 commences operations on or

29

stock

None.

Branson

July
of

Instruments,

10 filed

which

40,000 shares

10,000 shares

account and

will

Inc.
(8/5)
of common stock
be

sold

for

(par

$1),

the

company's
30,000 shares for selling stockholders. Pro¬

ceeds—Additional
eral

funds.

McDonnell &

inventory, working capital, and gen¬
Office—Stamford,
Conn.
UnderwriterCo., Inc., New York.

it Bridghampton Road Races Corp.
July 16 (letter of notification) 30,000 shares of commo
stock (par $1).
Price—$2.50 per share.
Proceeds—Fo
working capital and to pay expenses.
Address—P. O.

before June 30, 1960, all unexercised
rights will be void
as of 2:00 p.m.
(CST) on that

Box

price will

^ Broadway-Hale Stores, Inc. (8/25)
July 27 filed $10,000,000 of subordinated debentures, due
Aug. 1, 1979. Price—To be supplied by amendment. Pro

be

ceeds—For

Marquette

refunded.

general

Avenue,

date, and their purchase
Price—$12,000 per unit. Pro¬

corporate

purposes.

Minneapolis,

Minn.

Office —523

Underwriter—

APA, Inc., the corporation's subsidiary.
!
Appalachian National Life Insurance Co.
July 1 filed 966,667 shares of common stock, including
160,000 shares reserved for option to employees and di¬
rectors.

Petro-Chemrcals, Inc.

July 14 filed 100,000 shares of
(par 10 cents). Price—$4 per share.
added

Building, Houston, Tex.

American Beverage Corp.

shares then held. Of¬

common

Proceeds—For

Southwest

•

Alaska Mines & Metals Inc.
Feb. 25 filed 1,431,200

for cash

Mexico

Freres &

mined by

„

day estimated to cost $350,000;

per

ore

for additional gold and mineral properties both in
and the United States. Office — Bank of the

gram

grams.

(8/18)

July 8 filed $4,000,000 of series E first mortgage bonds,
due Aug. 1, 1984.
Proceeds—To pay construction costs,
and short-term^ bank loans.
Underwriter—To be deter¬
Stuart

gold

payment of about $15,000 of other obligations; to carry
on with the balance of the proceeds an exploration pro¬

July 16 filed 950,000 shares of common stock. Proceeds
—The stock is to be exchanged for all the outstanding

Drexel Si Co. of Philadelphia, Pa.

New York; and

$50,000; to construct and place in working oper¬

mine, mill and accessories capable of processing

a

tons of

100

stock. Price—To
be supplied by amendment. Proceeds—For general cor¬
porate ourposes including the construction of additional
gas producing plants and the expansion of industrial

par

share.

PREVIOUS

it Axe Houghton Fund A, Inc.
July 24 lilea an additional 1,000,000

Colo.

Inc.
150,000 shares of common stock. Price—

held by

,

ic Air Products, Inc. (8/19)
July 24 filed 115,000 shares of common

filed

29

per

•

Mines,

Proceeds—To assume and pay an option
its Mexican 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

$5

ation

New York.

of

shares

which

America

cent). Price—$1 per share.
Pro¬
ceeds—For working capital; purchase of machinery and
stock

mon

Ltd.

Alscope Explorations
26
filed
1,000,000

March

AD DITION 3

SINCE

Price—$3 per share. Proceeds—To be used for
the conduct of the company's insurance
business. Office
—1401 Bank of Knoxville
Bldg.,

Knoxville, Tenn. Under¬

writers—Abbott, Proctor & Paine, New York; Cumber¬
land Securities Corp.,
Nashville, Tenn.; Davidson & Co.,
Inc. and Investment Corp. of
Fidelity, both of Knoxville,
Tenn. Offering—Expected sometime
during August.

506,

Bridgehampton, L. I.,

None.

N.

Y.

Underwriter
:

*

ceeds—For

corporate

construction

of

new

Office—401

stores

and

for

general

South

Broadway, Lo:
Underwriter—Blyth & Co., Inc., Los An¬

purposes.-

Angeles, Calif.
geles and New York.
•

Brockton Taunton

June

29

filed

Gas

Co.

37,268 shares of

common stock,
subscription by common stockholders
July 29, 1959, on the basis of one new share
eight shares and five shares for each 11 shares

fered for

being of
of recorJ
for

eact

of cumu
lative preferred then held; rights to
expire on Aug. 13
1959. Price—$17 per share. Proceeds—For
repayment oJ

Volume

190

Number 5868

.

.

The

.

Commercial and Financial Chronicle

(447)
short-term
1956-1958

bank

loans

construction

Ave.,

Boston, Mass.
Corp., New York.
ir California

incurred

under
Office

program.

Underwriter

company's

178

—

Atlantic

The

First
.>-.vV"Vy

—

"

Metals

the

Boston

able,--and

July 27 filed 2,500,000 shares of common stock. Price—
20 cents
per
share.
Proceeds—For construction of a
eral

corporate

Salt

for assaying: and for gen¬
Office—3955 South State Street,

Lake

purposes.

^ Gary Chemicals, Inc. (8/17-21)
July 28 filed $3,500,000 of subordinated debentures due
Sept. 1, 1979 and 205,000 shares of common stock (par
cents)

in

each

to be offered in units.
unit

offering.

will

be

The

determined

Price—S500

unit.

per

number

prior

to

of

shares

the

public

Proceeds—For

general

corporate

purposes, including working capital.
Under¬
writers—Lee Higginson Corp. and P. W. Brooks &
Co.,
Inc., both of New York.
•

Casco

July
$1

per

(an

Chemical

Corp.

10 filed 300.000
share.

(8/3)

shares

of

Price—

Proceeds—For marketing of "Resistolox 20,"
and for general corporate purposes.
Bank

&

Trust

Bldg., Dallas, Tex.
Underwriter—Pearson, Murphy & Co., Inc., New York.
Central American Mineral

Resources, S. A.

May 27 filed 620,000 shares of
500,000 shares
,

be

to

are

stock,

common

offered

for

the

which

of

of

account

the

and 120,000 shares for the account of certain
selling stockholders. Price—$1 per share. Proceeds—To
company

finance

acquisitions

and

increase

to

working capital.
Office—161 East 42nd St., New York, N. Y. Underwriter
—None.
■>"'
•"
■

July

30

(Harrison

&

Co.)

(Birkenmayer

Hills

Electric

ID.

&

S300.000

^Certified Industries, Inc.,

' ;

,

nated

Del.

debentures

Co.,

Inc.)

exchanged.

May 21
stock

633

Common

&

(Carl

Edwards

Steel

Co.,

Gas
and

(Cruttenden,

Agee

Horizon Land

1,200,000

Co.)

&

$700,0001V

Co.)

&

&

Co.,

Micronaire

Accident

Securities

Common

Electro

330.000

(Milton

$o,500.000~

Corp.)

—Common

&

Co

Co..

Inc.)

_

Weld & Co.

and

Watling,

& Co.)-$1,000,000

Lerchen

Dodge

Nicolaus

Inc.

Co.,

&

and

Walston

'

Fenner

Nitrogen Co.,

(Harriman

Ripley

Inc.—*

&

&

Co.

(Adams

Peck)

&

August 4
Hexcel

Products,

Lane,

(Bids

Co.)

280,000

McDowell)

Creek

Co.)

Electric
11

$300,000

to

Hofman

Common

International

50,000 shores

invited)

Precision

Common

Corp.__.__

1.550.000 shares).,

Weld & Co.). 206,500

H.

(McDonnell

Community
r

"•

->

Coral

Co.)

229,585. shares

&

Credit

Co.;

40,000

Inc.)

Ridge

Co.

.

R.

Beane)

Preferred

Williston

&

Beane)

(Charles Plohn &

Co.

Co..

Common

Netherlands

Securities

Co.,

(Prescott,

Higginson Corp.

&

&

&

Rhoades

Jefferson

Wire

(Charles Plohn

&

&

Co.,
&

Co.)

Cable

Co.

Inc.

and

Co.)

&

Co.)

Reid

Research

&

Consumers

Co..

Inc.)

$375,000

National

Packaging
(Firsi

Securities

Northwest Defense

500.000

Minerals, Inc

..Common

Power & Light
(Bids

to

be

$300,000

Co

invited)




Union

to

and

$500,000

&

Co.)

$500,000

Debentures

Inc.)

$10,000,000

be

Bonds

invited)

$65,000,000

Common

stockholders—underwritten

by

Hayden,

Common
&

Co.,

Inc.)

$1,000,000

Matronics, Inc.

Common
Brothers)

$750,000

Pittsburgh & Lake Erie RR
Sea View

Stone

Winslow, Cohu & Stetson, Inc.) 356,125 shares

to

be

Equip. Tr. Ctfs.

Invited)

$3,200,000

Industries, Inc

Acme

Missiles

Kletz

__-Debs.

<fc

Co.,

Inc.)

Common

&

$714,000

(Thursday)

(Myron

A.

Lomasney

Corp

Co.)

&

-Common

$1,200,000

August 28

Inc.)

C

&

Co.)

Co

500,000

Common
shares

Inc

Common

$100,000

&

Purvis

and

Amos

Sudler & Co.)

C.

$1,500,000

Common

September 1
Foto-Video

(Monday)
Brooks

(Friday)

Insurance

(Offering to stockholders—underwritten by G. J. Mitchell Jr. Co.

(Purvis & Co.

Corp.-:

W.

(Thursday)

& Construction

and

Co..

Inc.)

(Tuesday)

Laboratories,
(Arnold

&

105,000

Co.)

Inc.

Malkan

Co.)

Common
$300,000

Speedry Chemical Products Co., Inc

$3,500,000

(S. D. Fuller & Co.)

shares

Common

&

Co.,

Co.)

Inc.)

D

Lynch,

Common

218,333 shares

250,000

(Bids

shares

Petrosur

and

invited)

$3,000,000

Oil

$4,000,000

(Tuesday)

Corp

-—Common
and

Michael

Horowitz)

West Florida Natural Gas Co
(Beil

&

Hough

Inc.)

$620,000

Notes &

Common

$1,750,000

$35,000,000

&

Co.)

&

Cyrus J.

Common

$4,505,600

Smith,

Inc.)

Lawrence

188,500 shares

....Common
&

Georgia Power Co
(Bids

Common

Fenner &

Sons)

(Thursday)

September 17

& Development Corp.
Fuller

be

--Preferred

Bonds

received)

Bag-Camp Paper Corp

(Blyth & Co., Inc.

to

September 15

(Tuesday)
EDT)

Common
$400,000

Community Public Service Co

(Simmons & Co.
a.m.

(Wednesday)
Inc.

(Philadelphia Securities Co., Inc.)

Common

Bonds

be

Pierce,

Petro-Chemicals,

$2,500,000

Corp

Co

to

September 9
Allied

shares

Eagle Food Centers, Inc
(Merrill

—Debentures
$10,996,000

Co.

$1,402,500

Debentures
(S.

Common

Co.)

Class A Common

Co.,

Great Western Life

shares

Corp

Debentures

&

11:30

Power
(Bids

$164,000

&

August 26 (Wednesday)

(Offering

Common

Corp

Common
Corp.)

(Caldwell Co.)

Pacific

Gas

Dilbert's Leasing

Corp

Preferred

Podesta

August 27

Debentures

August 18
Alabama

$4,440,000

140,000 shares

Engineering

(Shields

Loeb,

jjrivited)

.Common

Bids

...

Securities

(Monday)
& Texas Pacific Ry.
Equip. Trust Ctfs.

Electronics, Inc

$300,000

$175,000

Co

Common

M.

5

Cohu

Common
)

Co.)

P.

to

(Michael G.

Corp

Co.,

Ston?

Tower

$2,500,000

Corp

Netherlands

and

Carl

and

Com.

$500,000

Co

(Blyth &

(Bids

Common

(William H.), Inc.

Inc.)

& Co.)

Broadway-Hale Stores, Inc.-

shares

Inc

(Fulton

Tool

be

(Vermilye

(Kidder, Peabody & Co. and Schmidt, Roberts & Parke)

Terminal

Bonds

$25,000,000

Superior Window Co

$2,500,000

86,000

Cubic Corp.

-.—Debentures
Shepard

EDT)

Common

Superior Window

$500,000

$1,320,000

Co.

Gabriel

noon

to

(Alkow

Common
&

Petroleum

Chemicals,

Rorer

shares

Common

Inc

155,269

Corp

and

(Lee

100,000

Entron, Inc.

Co

August 17
Cary

units

Inc.)

(Shearson, Hammill <fc Co.) 136,000 shares

&

Corp

(Barnett

f

and Camp & Co.) $170,000

Inc.

Electronics

$250,000

Co.,

Inc.

(Bids

-Debentures

Lomasney

<Sc

shares

Electronic Data Processing Center, Inc.-.-Common
(Zilka, Smither & Co.,

Central

Co.)

...Common

Redpath)

Stone & Co.)

"Hayden.
—

J.

&

(Bids

Executone

I

Common

Williston

&

August 24

$30,000,000

Inc.)

August 13

Common

and

450,000

Fa^dvne

(Blair

,

$300,000

Properties, Inc
&

$412,500

Debentures

Invited)

Carter

(Weil

Preferred
Corp.)

& Co. and J. R.
450,000 shares

(Cruttenden,-.Podesta

be

International

shares'1-

Co

(Wachob-Bender

Podesta

&

Raub Electronics Research

Trans

Ridge Properties, Inc

(Crutenden,

Coral

&

&

Pacific Gas & Electric Co

Magnuson Properties, Inc

•

Drexel

(August 25 Tuesday)

Common
Co.)

.—Common

Walker

August 5 (Wednesday)
Instruments, Inc.——

Branson

A.

Tuna

shares

Zapata Off-Shore Co
(G.

Plan

and

Photocopy & Business Equipm't Corp,

shares

Equip. Trust Ctfs.

Hough,

(Hayden,

Television Shares Management Corp.——..Common
(White,

300,000

(Wednesday)

Parker

(Gates.

Lease

Co.;

Common

Shepard

(Cruttenden, Podesta

Corp. and Robinson-Humphrey
Inc.) $8,325,000

be

to

&

(Myron

—Bond*

&

Com. and Debs.

Co.)

(Cruttenden,

Laboratories, Inc

$15,000,000

(Maltz, Greenwald & Co.)

v

(Bids

(Bell

$152,500

EDTi

and

(Tuesday)

Florida Water & Utilities

Co

a.m.

&

(Bids

Nord

shares

Charge Service, Inc

'■

—

(Bids

Smith

Securities

Chesapeake & Ohio Ry

Common

(Lee

Silver

Co..i—-Common

Inc

Inc.

Pennsylvania

Central

36

shares

Houston Lighting & Power Co

Space

(Auchincloss,

(Tuesday)

(F. S. Smithers & Co.)

Microsomes,

&

..Common

Netherlands

and

August 12

jiCommon

page

Common

Blosser

&

(Johnson,

136,400 shares

Co.; Inc.)

&

Aircraft- Equipment

(Prescott,

191,703 shares

Corp.)

Michigan Bell Telephone Co.:

shares

30,000

Standard

$850,000

Common

August 11

'

Southern

Common

Co.)

Int. Life Insurance Co

Georgia

Co.,' Inc.)

&

Reynolds

Industries, Inc

shares

Tape Cable Electronics Co., Inc.___Plohn

on

Common

Co.;

(Monday)

&

St. Clair Specialty Manufacturing Co., Inc. Common
(Stifel.

Curtis

Common

;
300,000

Pierce,

Co.,

.Debentures

&

(Myron A. Lomasney

Supercrete Ltd.

shares

50,000

_

Loeb

(Friday)

Co.)

Higginson

(Clark,

unit

421, 901

(Wednesday)

Bostic Concrete Co., Inc

Inc.)

Common

America

Lynch,

Lee

(Charles

'

(White,

of

(Straus,

shares

Corp.

Blauner

D.

Finance

Pioneer

Co.

Com. and War.

-

Investing

Microwave

Narda

Inc.)

(Kuhn,

(Syle

Co.,

1,000,000 shares

Medical Products

Corp.
(General

Co.)

Long (Hugh W.) & Co., Inc

'

Co..—Common

Insur.

Corp.)

Controls

(Merrill

,

&

shares

Winston &

Big Apple Supermarkets, Inc

—Common

$300,000

Inc.)

$1 000.000

(Equitable

&

per

Office—Suite

Inc

Cincinnati, New Orleans

$525,000

Co.)

—

Lyon

(Shields

(Simmons

Co., Inc. and Netherlands Securities Co.,

Interstate Life

&

August 10

>

Common

-

250,000

A.

Owens Yacht Co., Inc

shares

Common

Plohn

Corp

Winston &

Rhoades

Products,

115,000

-Common

Co.)

and J.

Air

Co.,

$3,084,300

Capital Fund of Canada Ltd

shares

200,000

Hudson Radio & Television Corp
(J. A.

&

:—_—Common

Co.)

&

Greenwald

(Ross,

Weld

$300,000

Common

&

Corp.

(Maltz,

&

August 7

Corp

Extrudo-Film

Leach)

&

Co., Inc.

Loeb,

Price —$205

Continued

August 19

by White,

Common

M.

stock.

capital.

,

(Thursday)

Podesta

v

(Netherlands Securities

(Carl

Inc.-—
Witter

Dean

Rhoades

(Charles

Fi¬

Preferred

Sterne,

of

working

CALENDAR

Corp

$300,000

Inc.)

Publishing Co

Loeb,

M.

&

Shares,
and

Co.

ex¬

&

Common

Murphy

Energy

Weld

(White,

Crowell-Collier

common

share-for-share

a

Milwaukee Loan

of

ISSUE

New York

(Pearson,

on

Milwaukee, Wis. Underwriter—None

Alabama

share

one

Dec. 16,1957 filed
$25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,00 of subordinated debentures
due
Dct. 1, 1968 and 3,000,000 shares of
common stock to be
jffered in units as follows:
$1,000 of bonds and 48 shares
>t stock and $100 of
debentures
nine shares oi stock.
Price—To be supplied by amendment.
Proceeds — To

Offer expires on or before
Aug. 1, 1959. Office
Water St.,

(Monday)

Chemical Corp

Colonial

11,116 snares of

being offered

Lieco, Inc.

$300,030

Corp.
August 3

Office—Georgetown,

Co.

N.

and

Proceeds—For

Commerce Oil Refining Corp.

change basis to stockholders
nance

New

Street, Boston, Mass.

tures

<

(letter of notification)

(par $2)

Office—

Sherman Street,
Denver, Colo.

Underwriter—None.

Civic Finance Corp.

.l..Tommon
&

not

(par $1).

Colorado Water & Power Co.
Feb. 25 (letter of
notification; $220,000 of 6% unsecured
debentures due April 1, 1964 and
1,100 shares of common
rtock (par $1) to be offered in units
of $200 of deben¬

short-term notes due within one
year.
Part of the pro¬
ceeds may also be used to retire
outstanding subordi¬

Buckingham Transportation Inc

:

eral

exchange

Proceeds—
maintain the working capital of the com¬
be initially applied to the reduction of

or

will

Common
$285,000

Co.)

this

one

• Colonial Fund, Inc.
July 27 filed 1,000,000 shares of common stock. Price—
At market. Proceeds—For
investment. Office—75 Fed¬

Price—100% of principal amount.

but

pany

for

of

Boston, Mass. Underwriters—White, Weld & Co.
York, and Dean Witter & Co., Los
Angeles, Calif.

company's subordinated debentures in
exchange,
value, on the maturity dates of those securities
long as there are bonds remaining unsold in this
reserved

(par $1)

basis

a

Proceeds—For, investment.

*

face

be

on

•

of the

No bonds will

stockholders

Colonial Energy
Shares, Inc. (8/3)
May 5 filed 1,200,000 shares or common stock
Price—At market.

I.'.

to

every

Inc., both of New York.

Acceptance Corp.
June 29 filed $600,000 of series F
6% five-year subor¬
dinated debentures, to be offered to the
present holders

offering.
offering.

for

Hayden, Stone & Co., and Winslow, Cohu and
Stetson,

Dover, Del.

Citizens'

so

(8/26)
356,125 shares of common stock

made available

three held as of the record date. Price
—To be supplied
by amendment. Proceeds—To reduce
outstanding indebtedness, for expansion, and for work¬
ing capital.
Office—San Diego, Calif.
Underwriters—

writer—None.

at

Electronics, Inc.

20 filed

be

share

(letter of notification) 66,500 shares of class A
(par $1). Price—$4.50 per share.
Proceeds—For
equipment and expansion of plant facilities.
Under¬

(Blyth & Co., Inc. and Schwabacher & Co.) $1,125,000

Casco

Office—

to

stock

(Offering to stockholders—underwritten

Co

Bernheimer

F.

indebtedness.

Cohu

July

July 13

August 6
Common

Hickerson Bros. Truck Co., Inc

Raythern

short-term

Washington, D. C. Underwriter—
Auchincloss, Parker & Redpath, New York.

(Thursday)

Instruments, Inc.__

North

•

620 —11th St., N.
W.,

NEW
Elion

(8/12)

working capital, buy accounts receiv¬

reduce

To increase
stock.

common

anti-oxidant)

Office—207 American

Inc.

ore;

City, Utah. Underwriter—Cromer Brokerage
Co., Inc., Salt Lake City.

10

Charge Service,

filed $500,000 of 5V2% convertible
capital de¬
bentures.- Price—At 100% of
principal amount.
Pro¬

ceeds—To add to

Corp.

pilot plant; for measuring

Central

July 17

35

327,042 shs.

to

Bend#
be

tnvttedi

December 1

H8.OO0 uoo

(Tuesday)

Consolidated Edison Co. of New York, Inc.—Bonds
(Bids to be

invited)

$50,000,000

^

The Commercial and Financial Chronicle

36

35

'

\

Offering—Indefinite.

York.

Investors Corp.

Commercial

,

(letter of notification) 900,000 shares of com¬
mon
stock.
Price-At par (10 cents per share;
Pro-\
ceeds—For investment.
Office—450 So. Mam St., Salt
28

City, Utah. Underwriter—Earl J. Knudson & Co.,
Salt Lake City, Utah.
Offering—Expected in August.

Lake

(8/5)

Community Credit Co.

(letter of notification) 12,000 shares of 6.12%
senior cumulative sinking fund preferred stock, series A.
22

June

Price—At

($25

par

per

share). Proceeds—To

retire the

presently outstanding preferred stock. Office—3023 Farriam
St., Omaha, Neb. Underwriter — Wachoo-Bender
Corp., Omaha, Neb.

Industries, inc.
(letter of notification) 80,000 shares of

.

.

Thursday, July 30, 1959

6%. con¬

stock (par $3.50) and 80,000 shares of
common stock (par
10 cents) to be offered in units of
one share of 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
vertible preferred

development of gas

—For

properties. Office—908 Alamo

Building, San Antonio, Texas.
Under¬
writer—Frank Lerner Co., New York, N. Y. Offering—
Bank

National

Temporarily suspended by the SEC and a hearing had
July 14 whether to make this order

been scheduled for

permanent.
24 filed $35,000,000 of first mortgage bonds, due
1989.
Proceeds—For construction, and to repay bank

July

construction purposes.
Office—212
West Michigan Avenue, Jackson, Mich.
Underwriter—
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; White, Weld & Co., and
Shields & Co. (jointly); Morgan Stanley & Co.; Harriman, Ripley & Co. and The First Boston Corp. (jointly).
Bids—Expected to be received on or about Aug. 18.
for

incurred

loans

Controls

(8/10)

Co. of America

July 8 filed 191,703 shares of common stock (par $5).,-.
offering will be made after a 50% common stock
distribution to stockholders of record July 24.
Of the
The

be sold for the account of the
company and 141,703 shares for the accourit of a group
of selling stockholders. Price—To be supplied by amend¬
ment.
Proceeds—To be added to the general funds of
total, 50,000 shares will

the company,

with approximately $750,000 earmarked for

of a Canadian plant for the production of
and solenoids, construction of an addition to a

acquisition
motors

plant at Folcroft, Pa., and acquisition of property and
equipment in Arizona for production of rectifiers and
other semi-conductor products.
Approximately $170,000
•will be used to retire notes and $250,000 will be invested
in or advanced to a Swiss subsidiary. Underwriters —
Merrill

Lynch, Pierce, Fenner & Smith,
Higginson Corp., both of New York.
Coral Ridge Properties,

Inc.

Inc. and Lee

(8/5)

July 8 filed 450,000 shares of $0.60 cumulative converti¬
ble preferred stock (no par) and 450,000 shares of class
A common stock
(no par). The no par preferred is
convertible into Class A common on a one for two basis,
without additional payment.

The $1 par preference stock
is convertible into class A common on a l-for-15 basis,

payment of $3.33
Price—To
be supplied
upon

per

share of class A

by

amendment.

common.

Proceeds—To

mortgage and for general corporate purposes.
North Federal Highway, Fort Lauderdale,
Underwriters—Cruttenden, Podesta & Co., Chicago,

repay

a

Office—716

Fla.

111., and J. R. Williston & Beane, New York.
Crescent Petroleum Corp., Tulsa, Okla.
May 26 filed 48.460 shares of 5% convertible pfd. stock
($25 par) and 12,559 shares of common ($1 par), 34,460
shares of the preferred and 9,059 shares of common are
issuable upon the exercise of stock options granted when
the assets of Norbute Corp. were acquired on Aug. 6,
1958.

Underwriter—None.

Crowell-Collier

Publishing Co.' (8/3-7)
July 2 filed 200,000 outstanding shares of common stock
(par $1). Price—To be supplied by amendment. Proceeds
—To

selling stockholders.

Rhoades

& Co.,

Underwriter—Carl

M.

Loeb,

New York.

Underwriter—None.

Co., Inc.
(letter of notification) 1,Q0Q shares of

3

common

be

supplied by amendment.

stockholders.

selling

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
received by DC A common stockholders in connection
with

the

recently consummated

merger

of Real Estate

Equities, Inc., into DCA and. the plan of reorganization
in connection therewith.
Underwriter—

None.

Development Corp. off America'
29 Registered issue.
(See Equity

June

General

Corp.

below.)

& Development Corp.

(par one cent) to be offered in units Corisis*,-

stock

ing of $50 principal amount of debentures and 12 shares
of common stock. Price—$51.20 per unit. Proceeds—For

for working capital.
Name Changed —
formerly known as Gilbert's Properties, Inc.
Office—93-02 151st Street, Jamaica, N. Y. Underwriter—

oontracts

Fuller &

Co., New York.

Diversir««d Inc., Amarillo,

filed

shares

300,000

Drexelbrook

of

Associates

22

+ Eagle Food Centers, Inc. (8/18)
July 23 filed 188,500 shares of common stock (par $2.50),
of which 20,000 shares are being offered initially by the
to employees.
Any of such shares not pur¬
chased by employees and the remaining 168,500 shares
are
being purchased by the underwriters, 28,500 from
stockholders and 160,000 shares from the company. Price

company

Proceeds—To redeem \
preferred stock .of a subsidiary, to pay off out¬
standing -6% subordinated notes, to purchase equipment
in four stores leased from G. & W. Realty, Inc., to pay
off chattel mortgages on equipment in five other stores,
and for additional working capital.
Office—Milan, 111.
Underwriter—Merrill Lynch, Pierce, Fenner & Smith
be

supplied by amendment.

all of the

Edwards Steel Corp,.,

Miami, Fla. (8/3-7)
filed 140,000 shares of common stock (par 10
cents). Price—$5 per share. Proceeds—To repay loans,
to acquire property and equipment, and for working
capital. Underwriter—Charles Plohn & Co., New York.
8

common

Unsubscribed shares will be offered to the
public.
$*50 per share. Proceeds—For working capital.

City, Kan. Under¬

Electronic

Service

Co., Denver, Colo.

(8/5)
(letter of notification) 17,000 shares of common
stock. Price—At par ($10 per shore). Proceeds—To pay
eight-year lease of electronic machines, installation
charges
and
working capital.
Underwriters — Zilka,
Smither & Co., Inc. and Camp & Co., both of Portland,
Oregon.

an

Elion

Instruments,

Inc.

(7/30)

June 26

(letter of notification) 100,000 shares of common
stock (par 50 cents). Price—$3 per share. Proceeds—To
purchase equipment and for working capital. Office-

Bristol, Pa. Underwriter—Harrison & Co., Philadelphia,
"

Jan. 19

(letter of notification) 250,000 shares of series 3
stock (no par) to be offered for subscription
by stockholders on the basis of one share of series 3

common

stock for each
common

three

shares of series 1 and/or series 2

stock held; unsubscribed shares to other stock¬

holders.

Price—$1

Rights expire 30 days from offering date
per
share.
Proceeds—For working capital

*/roCr?c^Me!i

—None.

A

snares will be offered on

il.

writer

one-for-one basis to

shares
on

a

The remaining

will be offered publicly by the under¬
"best efforts" basis. Price—To be
supplied

by amendment.
for

a

i?rs of Fiecord Ma^ 15' 1959Proceeds—For

repayment

working capital. Underwriter

—

To

be

of notes

and

supplied by

'

Jackson, Miss. Underwriter

Industries, Inc.
filed $6,103,700 of 4%%

Emery

May

21

convertible

subordi¬

nated debentures due July 1, 1979, being offered for sub¬

of capital stock.
Price—
Proceeds—95.2% of the
by the company to repay bank

supplied by amendment.
are

to be

loans, acquire

used

inventories, including electronic




test and

the

on

a

one-for-one basis. The Board
authorized the issu¬

of

maximum of 149,478 shares of Equity

a

July 31.

Price—At par. Proceeds—To repay outstanding
Cincinnati, Ohio. Underwriter.—None.

Entron, line. -(8/26)

July 13 filed 200,000 shares of common stock. Price—
$5 per share. Proceeds—For purchase of machinery and

equipment and for

General

preferred stock in exchange for shares of preferred stock
Development Corp., on the basis of one share of
Equity General preferred for two shares of Development

Office—103 Park Ave., New York City.

Corp. preferred.

Executone, Inc. (8/24-28)
July 15 filed 136,000 shares of common stock. Price—To
be supplied
by amendment.
Proceeds — For general
corporate purposes, including additional working capital
and the reduction of outstanding indebtedness.
Office—
415
Lexington Avenue, New York.
Underwriter —■

Co., New York.
'

&

Extrudo-Film

Corp. (8/3-4)
175,000 shares of common

"

July 2 filed
stock (par 10
cents). Price—$3 per share.
Proceeds—For purchase of
machinery and equipment for the Pottsville plant, to
pay the principal on a 5% note due Sept. 1, 1960, and
the balance will be added to the company's general funds
and will be available for general corporate purposes.
Office—36-35

36th Street, Long Island City, N. Y.
derwriter—Maltz, Greenward & Co., New York.

Un¬

Faradyne Electronics Corp., Newark, N. J.
(8/5)
,

June 23 filed

220,000 shares of common stock (par five
Price—$6 per share. Proceeds—To be used for

cents).

purchase and construction of machinery and equipment.
Underwriters—Charles Plohn & Co. and Netherlands Se¬
curities

Co., Inc., both of New York.,

.

Federated

Investors, Inc.
July 16 filed 42,000 shares of class B common stock
(par value 5c) to be $old for the account of the issuing
company, and 21,000 shares of the same stock to be sold
for the account of Federated Plans,
Inc. Price—$4.75
per share. Proceeds—For advertising, training, printing,
and working capital.
Office—719 Liberty Ave., Pitts¬
burgh, Pa. Underwriter—Hecker & Co., Phila., Pa.

Fidelity Investment Corp., Phoenix, Ariz.
1,799,186 shares of class A common stock,

June 29 filed

which 1,700,000 shares are to be offered publicly,
the remaining 99,186 shares have been subscribed

of

in

consideration for services

and
for
organizing the

rendered in

incentive to management. The company
has agreed to issue to the organizers 200,000 shares of
class B common stock; and 100,000 class B shares have
been set aside for issuance to keep personnel other than,
the organizers. Price—To public, $3 per share. Proceeds
—To be applied to pay interest due on properties and to
an

company

as

new

properties and for working capital. Under¬

Financial

Industrial Income

July 22 filed 1,000,000
Price—At

market.

shares of

Fund, Inc.
common capital stock.

Proceeds—For

investment.

interim financing of coaxial cable

Office—

950

Broadway, Denver, Colo. General Distributor—FIF
Management Corp., Denver, Colo.

★ Flame Heat Treating, Inc.
\
July 21 (letter of notification) 3,965 shares of common
stock to be offered for subscription by stockholders of
record July 24, 1959.
Stockholders other than directors
and officers are given the right to purchase 1.3 addi¬
tional shares for each share owned prior to August, 1959.
Price—At par ($10 per share).
Proceeds—For equip¬
ment and working capital. Office—3625 Hampshire Ave¬
nue, South, St. Louis Park, Minn.
Underwriter—None.
Florida Water & Utilities Co., Miami, Fla. (8/12)1
July 8 filed 86,000 shares of common stock, of which
65,000 shares are to be offered for public sale for the
account

of

the

company and 21,000 shares for the ac¬
selling stockholders. Price—To be supplied
by amendment. Proceeds—To be used to reduce indebt¬

count of two

edness and
&

increase working capital. Underwriter—Beil
Hough, Inc., St. Petersburg, Fla.

Fortuna Corp.
July 21 filed 1,000,000 shares of common stock. Price—
$1.50 per share. Proceeds—To complete race plant and
for general corporate purposes. Office — Albuquerque,

N. M.

Carew Tower,

be

to

of

N.

by common stockholders .of record June 5,
the rate of $100 of debentures for each eight
shares of common stock then held; rights to expire on
bank loans and for general corporate purposes. Office—

lo

and proposes to offer 500,000 of such
holders of Equity General common in

common

share's

1959, at

Cubic Corp. (8/17)
July 17 filed 105,000 shares
proceeds

Corp.

scription

amendment.
.

The

Portland, Ore.

June 29

Office—333 S.,Farish Street,

£l°oCoan
658,387

Corp., 500,000 shares of common stock.
Equity Corp. is the owner of 5,343,2^0 shares of
Equity General common stock and proposes to offer
500,000 of such shares to the holders of Equity common
in exchange therefor, on a one-far-one basis.
Equity
General is the owner of 2,399,504 shares of Development

and Development

writer—None.

Data Processing Center, Inc.,

writer—None.

& Gas CorP-f Pass Christian, Miss.
^ filed 1,500,000 shares of common stock, of which

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;

pruchase

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¬
ceeds—For inventory, equipment, working capital, etc.
Office—901S. Lake Street, Farmington, N. Mex. Under¬
writer—Investment

C.

of

Inc., New York.
July

Washington, D.

Arfierica,

Streets, Philadelphia. Pa. Underwriter—None.

Chestnut

—To

W.,

*

Office—2480
Underwriter—

etc.

Equity General Corp.
29
filed
together with

common

filed $2,000,000 of partnership interests, to be
offered in units. Price—$10,000 per unit. Proceeds—To
be
used
for
various
acquisitions.
Office — Broad &
May

N.

Street,

Shearson, Hammill &

Texas

stock (par 50
scnts). Price—$3 per share. Proceeds—For acquisition
undeveloped real estate, for organization or acquisi¬
tion of consumer finance business, and balance
to be
used for working capital.
Underwriter — Investment
Service Co., Denver, Colo., on a best efforts basis.
6

Jan.

Emerite Corp.

(par $50 )to be offered for subscription by stock¬
holders of record April 30,
1959, on the basis of one new
share for each two shares held.
Rights expire Aug. 25,

Office—640 Minnesota Ave., Kansas

and

Company
S. D.

16th

investment,

None.

ance

of 20-year 5 ¥2% convertible de¬

bentures, due July 15, 1979 and 1,056,000 shares of com¬
mon

Proceeds—For

contracts.

of Directors of Equity General has

(8/18-20)
June 11 filed $4,400,000

•

Equity Annuity Life Insurance Co.
V'.o
April 21 filed $1,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual premium
contracts and no less than $1,500 for single premium

exchange therefor,

Dilbert's Leasing

*'////'/////.'/

t

"

June

Development Corp. of America

Pa.

stock

1959.

outstanding

of

Proceeds
Office—1130 E. 222rid St.,
Euclid, Ohio. Underwriter — Prescott, Shepard & Co.,
Inc., Cleveland, Ohio.
Price—To

—To

Crusader Life Insurance

June

(8/19)

shares

100,000

filed

17

stock.

•

Crowley's Milk Co., Inc.
26 filed 60,000 outstanding shares of common
stock (par $20). Price— To be supplied by amendment.
Proceeds—To selling stockholders. Office—145 Conklin
March

Ave., Binghamton, N. Y.

July

repayment of notes; to develop and construct shopping
centers and a
super-market under existing purchase

(8/18)

Power Co.

A- Consumers

Inc.

Office—4902 LawrencQ

Underwriter—Alkow- & Co., Inc.,

St., Bladensburg, Md.
New York.

Co., New* York.

Stone &

Curtis Industries,

transmission systems.

television

consummated

Consolidated Petroleum
April 30

corporate

V.
Werner, a company officer, selling stockholder.
Office
—5575 Kearny
Villa Road, San Diego, Calif. Under¬

writer—Hayden,

'

Nov

general

of the proceeds are to go to Robert

4.8%

purposes.

Underwriter—Lehman Brothers, Ne*

construct refinery.

for

and

equipment,

manufacturing

Continued from page

!

.

(448)

M.

Underwriter—Minor,

Mee

&

Co.,
.

Foto-Video

Albuquerque,
,

-

•

Laboratories, Inc. (9/1-4)
150,000 shares of class B common

;

stock
For
the repaying of
bank loans, the purchase of new equipment, and for
working capital. Office — 36 Commerce Road, Cedar
Grove, N. J.
Underwriter — Arnold Malkan & Co.,

July

15

filed

(par 10 cents). Price — $2
general corporate purposes,

New York.

share.
including

per

Proceeds

—

Volume 190

Number 5868

.

.

The

.

Commercial

and Financial
Chronicle

37

(449)
Foundation
June

18 filed

Price—At

Balanced

Inc.

•

stock (par $1).
investment. Office—
Tenn. Investment Adviser—J.

St., Nashville,
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—
418 Union St.,
Nashville, Tenn. Investment Adviser— J.

C. Bradford &
Co.; Nashville, Tenn. Distributor—Capital
Planning Services, Inc.
•

Futterman-Dupont

Hotel

Government Employees
Insurance Co.

common

Proceeds—For

Union

418

Fund,

100,000 shares of

market.

(3) to holders of

May 22 filed $1,706,900 of Limited
Partnership Interests,

Hemisphere Gas & Oil Corp.
(letter of notification) 300,000 shares of com¬
stock.' Price—At par ($1
per share).
Proceeds-^
For development oi oil and
gas properties.
Office—702
April 27
mon

American Bank
—D.

.

stock

on

to be offered in units.
--To repay monies

converted

and

Dumont

paying
Plaza

Price—$25,000 per unit. Proceeds
borrowed for the purpose of
closing
incidental expenses in
acquiring the

Hotel

in

Fifth

Washington, D. C.

Office—580
Underwriter
None.

Avenue, New York, N. Y.
Statement effective July 16.
Gabriel Co.

July

8

debentures,

$2,500,000 of subordinated sinking fund
due June 30, 1974, with warrants for the
common

Price—100%

shares for each $1,000 of deben¬

of

principal amount of the deben¬
tures. Interest Rate—To be
determined by amendment.
Proceeds—For capital investment.
Office—1148 Euclid

Avenue, Cleveland, Ohio.
Underwriters—Prescott, Shepard & Co.,
Inc., Cleveland, and Carl M. Loeb, Rhoades
&

Co., New York.

mort¬

par (in
each).
Proceeds —For loans,
equipment and working capital. Office—245—4th
Street
Building, Room 409, Bremerton, Wash. Underwriter—

of

$500

None.

would be outstanding.

San

For

expansion of plant
Office—331 Main

facilities

and

working caiptal.

General
Merchandising Corp., Memphis, Tenn.
Feb. 18 filed 250,000 shares of
class "A" common stock
(par one cent).
Price—$10 per share. Proceeds—For
working capital and general corporate
purposes. Under¬
writer— Union
Securities
Investment Co.,
Memphis,
Terin. Statement effective
April 24.
•

General Time Corp.
July 8 filed $6,260,700 of convertible subordinated
deben¬
tures due 1979 to be offered for
subscription by common
stockholders at the rate of $100 of debentures
for each
eight shares of stock held. Record date
about Aug. 6,
1959; rights to expire Aug. 24, 1959. Price—To be
sup¬
plied by amendment. Proceeds—To be added to
the
gen¬

eral funds of the
company and be used
nance electric transactor
system

primarily to fi¬
developed by its Strom-

Underwriter

—

Kidder, Peabody & Co.,

General Underwriters Inc.

April 6

(letter of notification) 225,000 shares of com¬
capital stock (par 25 cents).
Of the total, 195,000

to be offered for the account of the
company

30,000 shares for

selling s£pckholder. Price—$1 per
share. Proceeds—For furniture
inventory and improved
merchandising methods, to finance the real estate depart¬
ment and insurance
policy loans. Office—211-215 Pine
St., Pine Bluff, Ark. Underwriter—Lovan Securities
Co.,
Inc., Pine Bluff, Ark.
a

it Georgia-Bonded Fibers, Inc.
July 10 (letter of notification) 100,000 shares of class A
common stock (par 10
cents). Price—$3 per share. Pro¬
ceeds—For general corporate
purposes. Office—15 Nuttman St.,
Newark, N. J. and Buena Vista, Va. Under¬
writer— Sandkuhl &
Co., Inc.

Georgia International Life Insurance Co.

(8/11)
June 30 filed 1,665,000 shares of common
stock
(par
$2.50). Price—$5 per share. Proceeds—To increase
capi¬
tal and surplus. Underwriters—The
Robinson-Humphrey
Co., Inc., Atlanta, Ga., and The Johnson Lane, Space

Corp., Atlanta, Ga.
★ Gestetner Ltd. of England
July 27 filed American depositary

receipts

for

* Gibbs & Hill, Inc.
(letter of notification) 3,500 shares of common
(par $5).
Price—$39.20 per share. Proceeds—For

working

capital.
Office—Pennsylvania
1, N. Y.
Underwriter—None.

Station,

New

it Glens Falls Insurance Co.
29 (letter of
notification)

Broadway, New York, N. Y. Underwriter
Securities Corp., 95 Broad St., New
York, N. Y.

8,955 shares of capitall
stock to be offered for
subscription by stockholders pur¬
to its Employee Stock Purchase Plan.
Office—
291 Glen Street, Glens

equipment
plant improvement; to be used for
inventory and
production requirements of the
Hazleton, Pa., plant and
the increased production of the
Edgerton, Wis.,

Underwriter—None.

Packing Corp.

June 18 filed 572,500 shares of common stock
(par one
cent), and 50,000 common stock purchase warrants. Of
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 shaues are pur¬
chasable upon exercise of the warrants.
Price—$1.25

per

Proceeds—For

purposes.

repayment

facilities

Office—614

and

Broad

of

other

St.,

debt; purchase
general

of

corporate

Utica, N. Y. Under¬
writer—Mortimer B. Burnside &
Co., New York. Name
Change—Formerly Eastern Packing Corp.




plant;

and for

discharge of bank loan and other corporate pur¬
Office—250 Park Ave., New
York, N. Y. Agente
—Van Alstyne, Noel &
Co., of New York.

poses.

—

retire

•

offered

in

units,

stock and

an

eral

loan

to

the

subsidiary

4

filed

cents).

(Great

shares

market.

of

common

(par 10
investment.

Advisor

ic Hamilton
July 22

—

Funds,

Series

and

$200,000,000

•

Fund

Office—Denver, Colo.

Hancock

(J.

W.)

stock

Houston

Inc.

$2) and 100,000 shares of com¬
(par 10 cents). The company proposes to offer

common

stock

share for each 50c

are

to be

offered to holders of
at

face amount of such

surrendered for cancellation.

the

rate

of

debentures

Proceeds—To be used for

working capital and general corporate purposes. Under¬
writers—Kenneth Kass, Nassau Securities Service and
David Barnes & Co., Inc., all of New
York; and Palin
Securities, West Orange, N. J.

Hathaway Industries, Inc.
(53.43%)

Seaboard Allied

Milling Corp.

Seaboard plans

100,000 shares for sale to the business associate*

and

employees of 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¬
In

at

the

time

of

such

sales.

Proceeds—To

selling

stockholder, Seaboard Allied Milling Corp. Office—
Hathaway St., Syracuse, N. Y. Underwriter—None.
Heartland Development Corp.
June 24 filed 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.
Underwriter—None.

Heliogen Products,
Oct.

22,

common

1958

(letter

stock (par

Inc.

of

$1).

notification) 28,800 shares of
Price—$5 per share. Proceeds—

For payment of past due accounts and loans and
general
working capital.
Office—35-10 Astoria Blvd., L. I. C.
3, N. Y. Underwriter—Albion Securities Co., 11 Broad¬
way, New York 4, N. Y. Offering—Expected in Septem¬
ber.

Lighting & Power Co.

(8/19)

.

23

Proceeds—To repay the major portion of the cora-

filed

$25,000,000

of

first

mortgage

bonds

due

pany's outstanding short-term bank loans, which were
company's construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman
Brothers, Eastman Dillon, Union Securities & Co. and
Salomon Brothers & Hutzler (jointly); Blyth & Co., Inc.;
Lazard Freres & Co. and The First Boston Corp. (joint¬
ly); Kidder, Peabody & Co. and Equitable Securities
Corp. (jointly). Bids—Expected to be received up to
noon
(EDT) on Aug. 19.
incurred to finance the

Hudson

June

8

Radio & Television

filed

are

Corp.
capital

(8/3-7)
stock, of

which

to be offered for the account

of the

200,000

125,000 shares
company

June 9 filed 300,000 outstanding shares of common stock.
These shares are part of the 672,990 shares

by

Under¬

1989.

cumulative convert¬

outstanding 4% subordinated debentures
one

Arizona.

July

200,000 preferred shares and 50,000 shares of the common
in units consisting of 4 shares of
preferred and one share
of common. Price—$8.50
per unit. The remaining 50,000
shares of

Tucson,

properties and for general corporate purposes. Office—
11 South La Salle
St., Chicago, 111. Underwriter—None.

Proceeds—For invest¬

June 25 filed 200,000 shares of 6%
ible preferred stock (par
mon

Hamilton

Bldg.,

Corp. of Israel
July 13 filed 39,000 shares of common stock (par $5)
and $1,560,000 of 6% subordinated
debentures, due Aug.
1, 1974. Price—$1,500 per unit, consisting of 30 common
shares at $10 per share and
$1,200 of debentures at par.
Proceeds—To purchase, complete, and furnish various

Inc.

shares

Title

Hotel

filed additional

Periodic Investment Certificates.
ment.

Land

writer—Ross, Lyon & Co., Inc., New York.

Investment

securities as follows: 4,000,000
Hamilton Fund Shares, Series H-C7 and a like number of
H-DA

genr

April

—Arizona

Avenue,

Washington, D. C.
Advisory
Service,
Washington, D. C. Underwriter—Investment Manage¬
ment Associates,
Inc., Washington, D. C.
Investment

and for

Evans

Horizon Land Corp. (8/3-7)
July 1 filed 300,000 shares of common stock (par 10).
Price—$1 per share. Proceeds—For land
acquisitions,
working capital, and general corporate purposes. Office

stock

Proceeds—For

Connecticut

5

Underwriter—None.

America, Inc.

250,000

Price—At

Office —1825

—

on the basis of one new share for each five
shares then held. Rights to expire on or about
July 36.
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.

Co., Denver, Colo.

Growth Fund of
Feb.

Office

30, 1959,

City, Okla. Under¬
writers—G. J. Mitchell, Jr.
Co., Washington, D. C.; and
&

purposes.

Honolulu Construction &
Draying Co., Ltd.
16 filed 25,000 shares of common
stock, to be of¬
fered for subscription
by stockholders of record

Western Building & Loan
Corp.); and the balance will
be used to increase
capital and surplus. Office—101111 N.
W. Second
St., Oklahoma
Purvis

loan from Hillside National Bank

a

corporate

June

outstanding shares owned by Great Western
Building & Loan Corp. Price—To be supplied by amend¬
Proceeds—For

Laboratories, Inc. (8/12)
notification) 50,000 shares of common
(par 25 cents). Price—$6 per share. Proceeds—To

Terminal,
Hillside, N. J. Underwriter—Myron A. Lomasney & Co..
New York, N. Y.

200,000
ment.

Hofman

stock

outstanding
each consisting of five
option to purchase two

suant

Falls, N. Y.

share for each two shares held
(with an
privilege). Price—To be supplied by
Proceeds—To be used for new

and

of

rent

June

and

1,105,294 shares of common stock to be
subscription by present stockholders at the

June 12 (letter of

to offer

June 23

share.

(7/30)

filed

Great Western Life Insurance
Co. (8/28)
June 29 filed 500,000 shares of common
stock and op¬
tions to purchase 200,000 additional shares

held

equipment

Co., Inc.

oversubscription

and
television programs and
manufacture; dis¬
tribution and promotion of Greek
language records. Of¬
fice
401

80,000

shares of ordinary registered stock.
Depositary—Guar¬
anty Trust Co. of New York, 140 Broadway, New
York,
New York.

the

9

amendment.

additional shares, the units to be offered for
subscription
by holders of the 1,506,000
outstanding common shares
at the rate of one unit for
each 15 shares held on or
about Aug. 28,
1959; rights to expire on or about Sept.
28, 1959. The options evidence ttie right to
purchase the

Medal

Truck

notification) 285,000 shares of com¬
Price—At par ($1 per
share). Proceeds—T©

offered for

radio

Rogers Co., New York, N. Y.

Gold

Co.,

Highway Trailer Industries, Inc.

• Greek Voice of America, Inc.
July 9 (letter of notification)
300,000 shares of class B
capital stock (par one cent).
Price—$1 per share. Pro¬
ceeds—For production and
publicity of Greek language

be

York

be

stocfk.

June

None.

common

stock

;i<;.

(8/4)

existing liabilities; for additional equipment; an£
working capital.
Office—East Tenth Street, P. (X.
68, Great Bend, Kan. Underwriter—Birkenmaye*
& Co., Denver, Colo.

6,944 shares of class A
stock (par $5).
Price—$7.20 per share. Proceeds—For
working capital and general corporate purposes. Office
—189 Van Rensselaer
St., Buffalo, N. Y. Underwriter—

stock, to

•

Office

•;'

Box

shares of

St., Belleville, N. J. Underwriters—
Co., Inc., Miami, Fla. and Casper

and

1

pay

in October.

Robert L. Ferman &

are

■;/£'■

/•

for

Karen

Magnaplate Corp. (8/20)
July 9 (letter of notification)
75,000 shares of common
stock (par 50
cents). Price—$4 per share. Proceeds—

mon

v.:.

Francisco and New York.

mon

ic Graphic Controls Corp.
July 2 (letter of notification)

ic General

shares

'

filed

Hickerson Bros.
March 11 (letter of

Washington, D. C.; Eastman Dillon, Union Securities &
Co., New York; and Abacus
Fund, Boston, Mass: Offer¬

—

berg division.
New York.

:

50,000 shares of capital stock (par $1).
supplied by amendment.
Proceeds—For
working capital and general corporate purposes. Office
—Berkeley, Calif. Underwriter—F. S. Smithers &

Price—$3 per share. Proceeds—For capital and
surplus.
Office—Government Employees Insurance
Bldg., Wash¬
ington, D. C. Underwriters
Johnston, Lemon & Co.,
ing—Expected

26

•

Products, Inc.

Price—To

prior to the record date,

common shares

■

rate of one new

★ General Aquamatics Corp.
July 20 (letter of notification) $100,000 of
6% first
gage six-year convertible debentures.
Price—At
denominations

164,733

June

—

(8/5)

filed

purchase of 20
tures.

—

total of

a

stock

common

be purchased pursuant thereto

may

Alto, Calif.

Hexcei

ital

into

which

—Palo

outstanding and $589,640 of 5% convertible cap¬
debentures due 1967, convertible into shares of com¬
mon at
$28.0374 per share. If all these debentures were

title

'-

'

Hewlett-Packard Co.
July 21 filed $1,000,000 of Interests In Employee Stock
Purchase Plans, together with
25,000 shares of capital

stock (par $5) of Government
the basis of xk warrant per share of
(as of Dec. 31, 1958 there were 143,703 shares

of stock

Building, Portland 5, Ore. Underwriter
Hensley Co., Inc., 4444 California Avenue^.

Earle

Seattle, Wash.

common

Employees Corp.,
stock held

Co.

Variable Annuity, Life

Nov. 13 filed
2,500,000 shares of common stock (par $1)
to be offered
by company viz: (1) to holders of common
stock (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 Vz warrants per share
of stock held
(216,429 shares are now outstanding); and

shares

of

and 75,000 shares for the account of a selling
Price—$5 per share. Proceeds—To be util¬

stockholder.
ized

in

reduction

of obligations, the acquisition and/or
development of additional inventory lines, warehousing
facilities and sales outlets; the adoption of various sales
promotional programs, and as additional working capi¬
tal. Office—37 West 65th St., New York, N. Y. Under¬
writer—J. A. Winston & Co., Inc. and Netherlands Se¬
curities Co., Inc.
i'
■

Hugh W. Long & Co., Inc. (8/10-14)
July 15 filed 280,000 shares of outstanding class B com¬
mon
stock (par 50 cents).
Price — To be supplied by
amendment.

Proceeds—To

—Elizabeth, N. J.

selling stockholders. Office
—
Clark, Dodge & Co.,

Underwriter

New York.
I C Inc.

June

29

(8/28)

filed

600,000 shares of common stock. Price—
$2.50 per share. Proceeds—To further the corporate pur¬

the preparation of the concentrate and
of bottlers, the local and national pro¬
advertising of its beverages, and where
necessary to make loans to such bottlers, etc. Office—
704 Equitable Bldg., Denver, Colo. Underwriters— Pur¬
vis & Co. and Amos C. Sudler & Co., both of Denver.
poses and in
enfranchising

motion

and

Colo.
0_

Continued

on

page

38

i

Chronicle

The Commercial and Financial

38

.

.

.

Thursday, July

30, 1959

<450)

tories Co.

37

Continued from page

Independent Telephone Corp,
June 29 filed 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¬
50,000

of

chase

shares.

common

According

to

the

(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

Underwriter—None.

Price—$4

Laure

La

Inc., Pitts¬

will

use

(letter of notification) 82,626 shares of com¬
(par $1) being offered for subscription by
one new share for each

21

Office—New York City. Underwriter—Auchin-

purposes.

closs, Parker & Redpath, New York.

1959. Rights expire on Aug.
:

Underwriter—None.

(8/12)
April 3 (letter of notification) 175,000 shares of clasi
A common stock (par 50 cents).
Price — $1 per share
Proceeds—For equipment and working capital.
Offiot
—Pascagoula, Miss. Underwriter—Gates, Carter & Co*
Gulfport, Miss.
\
ir Inter-State Acceptance Corp.
July 22 (letter of notification) 100,000 shares of common
stock (par $1). Price—$3 per share.
Proceeds—For ad¬
vertising, equipment and working capital. Office—799

Underwriter—None.

(letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$3 per share. Proceeds—
For machinery and laboratory equipment; for consolida¬
tion of operations in one plant; for retirement of cor¬

porate debts and for working capital. Office—47 Bergen
St., Brooklyn, N. Y. Underwriter—Netherlands Securi¬
ties Co., Inc., and J. A. Winston & Co., Inc., New York,
Y.

N.

filed

350,000 outstanding shares of common
$1). Price—To be supplied by amendment.
Proceeds—To selling stockholders. Office—540 McCallie
Ave., Chattanooga, Tenn. Underwriter—Equitable Secu¬
rities Corp., Nashville and New York.
Investors

Funding Corp. of New York
10% subordinated debenture!
due July 31, 1964, to be offered in units of $1,000. Pri<*
—At 100% of principal amount.
Proceeds—For invest¬
filed $500,000 of

Irando Oil &

Exploration, Ltd.
April 24 filed 225,000 shares of common stock. Price-—90
cents per share. Proceeds—To defray the costs of explo¬
ration and development of properties and for the ac¬
quisition of other properties; also for other corporate

Office—1950 Broad St., Regina, Sask., Can.

Underwriter

—

Laird

&

Rumball, Regina,

Sask.,

Can.

Jamaica

Development Co., Inc.
105,000 shares of common stock (par $1).
Price—$10 per share. Proceeds—To be used for the pur¬
chase of land, cattle, machinery and equipment, fishing
lodge, and development expense. Office
1841 North
Meridian St., Indianapolis, Ind. Underwriter—None.
June

15

filed

—

Jefferson

Wire

& Cable

Corp. (8/5)
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 machinery, equipment and
raw materials, for plant
facilities, for sales promotion,
and

for

working capital.

writers—Charles Plohn

&

Office—Sutton, Mass. Under¬
Co.

and

Netherlands

Securi¬

ties Co., Inc., both of New York.
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 33 V3 cents) issued in
exchange for the outstanding stock of Mexico Refrac¬




Pa.

(letter of notification) 150,000 shares of common

June 1

(par 10 cents). Price—$2 per share. Proceeds—
purchase of machinery and equipment; advertising
and working
capital.
Underwriter—First Washington

stock
For

For

San

July 21 filed $30,000,000 of

(8/11)

35-year debentures, due

Aug.

1, 1994, to be offered for public sale at competitive bid¬
ding. Price—To be supplied by amendment. Office-

Detroit, Mich. Proceeds—It is expected that about $25,000,000 of the proceeds will be used to repay advances
from the American Telephone and Telegraph Co., and
that the remainder will be used for general corporate

including

Halsey, Stuart & Co.
both of New York.

r

construction.
Probable bidders—
Inc., and Morgan Stanley & Co.,
■

.

Medical Products Corp.

Micronaire Electro

(8/3-7)

x

shares (par 10 cents) and
warrants for the purchase of common 1
stock, to be offered for public sale in units ol 100 shares
of common stock and 25 warrants. The registration also
1

June

filed 200,000 common

one-year

includes

an

additional 200,000 three-year

warrants, exer¬

issued to cer- Price—$275 per unit.
Proceeds—To discharge indebtedness; for expansion ofsales efforts; and for working capital. Office—79 Madi¬
son Ave., New York.
Underwriter— General Investing
150,000 have been

cisable at $3, of which
tain

and employees.

stockholders

to be of¬

through Loomis, Sayles &

Co., Inc., to clients, officers, directors and employees of
the latter. The shares also are to be offered to share¬
holders of Loomis-Sayles Mutual Fund, Inc., of record

After July 31, 1959, the offering price will
After Sept. 15, 1959, shares will be
shareholders of Loomis, Sayles & Co.,
Inc., and its affiliated companies. Proceeds—For invest¬

July 15, 1959.

net asset value.

offered

•

(8/4)

Inc.

Microsonics,

(letter of notification) 61,000 shares of common >
stock (no par).
Price—$2.50 per share. Proceeds—For
additional test equipment, inventory and working capi- 1
tal. Office—Hingham Industrial Center, Hingham, Mass.
Underwriter—Lee Co., New York, N. Y.
, .......
:
July 9

Microwave

July 6 filed 800,000 shares of common stock,

be

Calif.

Bell Telephone Co.

.

fered initially at $25 per share

only to

ment.

Electronics

Corp.

July 2 filed $500,000 of 10-year 5% subordinated deben¬
tures due July 1, 1969 together with 250,000 shares of •
common

stock

(par

to be offered in

10 cents)

units of'

$10,000 principal amount of debentures and 5,000 com¬
mon shares.
An additional 138,000 shares may be issued
in connection with the company's restricted stock option
plan. Price—$10,500 per unit.
Proceeds—To purchase
machinery, equipment and other fixed assets, for operat- .
ing expenses, and the remainder for working capital.
Office—4061 Transport St., Palo Alto, Calif. Underwriter.
—None.

Under¬

writer—None.

purposes.^

Pools Equipment Corp., Renovo,

Loomis-Sayles Fund of Canada Ltd.

(par

Ave., New York, N. Y.

California
$80,000 of 12-year 5l/z% .
face amount. Proceeds—
working capital.
Office — 333 Montgomery Street,
Francisco, Calif. Underwriter—Guardian Securities ;
Corp. of

Acceptance

(letter of notification)
capital debentures. Price—At

Corp., New York.

-

Corp., Pittsburgh, Pa.

(8/3-17)

Office—511 Fifth

(8/6)

Inc.

Lieco

•

Interstate Life & Accident Insurance Co.

ment.

(par $1).

May 15

50,000

June 12

Lifetime

17

(letter of

purposes,

filed 262,500 shares of class A common stock
(par $1). Price—To be supplied by amendment. Pro¬
ceeds—To reduce indebtedness and for general corporate

International Tuna Corp.

Feb.

24

stock

Michigan

(8/12)

Leeds Travelwear, Inc.

•

stockholders at rate of

26

International Corp.

its share of the proceeds to increase work¬
ing capital. Office— 7 Central Park West, New York.
Underwriter—Hayden, Stone & Co., New York.

pany

stock

Street, Miami, Fla.

St.^ Philadelphia, Pa. Under¬

July 10 filed 140,000 shares of common stock (par $1),
of which 70,000 shares will be sold for the company's
account and 70,000 shares for selling stockholders. Price
—To be supplied by amendment.
Proceeds—The com¬

Railroads Weighing Corp.

Spruce St., Hammond, Ind.

Meg Products Co.,

Corp., San Francisco,

Lease Plan

July

1959. Price—$3 per share. Proceeds^For research
and development costs and working capital. Office—415

2,000

writer—None.

postponed.

14,

Inc.
notification) 120,000 shares of com¬
Price—$2.50 per share. Proceeds—
For inventories, machinery and equipment, retire exist¬
ing loan and promissory notes and additional working
caoital. Office — 3340 W. El Segundo Blvd., Hawthorne,
Calif.
Underwriter—First Angeles Corp., Beverly Hills,
California. Statement has been withdrawn.
•

June

Mercantile

Publishing Co.
of notification)

(letter

Office—1831 Wallace

Voz."

3% per unit; series C, $1,000,000, four-year 4% p«
unit; and series D, $3,500,000, 6-year, 5% per unit). Prlw
—100% of principal amount.
Proceeds — For workini
capital. Underwriter—Johnston, Lemon & Co., Wash¬

four shares held on June 1,

filed 200,000 shares of common stock (par 20
Price—$3.75 per share.
Proceeds—For general
corporate purposes. Office — 42 Broadway, New York,
N. Y. Underwriter—Amos Treat & Co., Inc., New York.
14

cents).

shares of class A
common stock.
Price—At par.
Proceeds—For expenses
for promotion and publication
of the newspaper "La

Bank, Washington, D. C.
$5,000,000 of notes (series B, $500,000, two-

ington, D. C. Offering—Indefinitely

Voz
16

June

year,

stock

Inc., Arnett, Okla.

Underwriter—None.

International

June

Co.,

April 30 filed (by amendment) 2,000,000 shares of com¬
mon stock
(par $1). Price—$2 per share. Proceeds—Foi
machinery and equipment and exploration purposes

—Expected in two or three weeks.

N. W. 62nd

Proceeds—For inventory and for
Fla. Underwriter

Exploration

,

»

Medearis Industries, Inc.

May

mon

if Infrared Industries, Inc.
July 30 filed 100,000 snares of common stock. Price—
To be supplied by amendment. Proceeds—For expansion
and working capital. Office—Waltham, Mass. Under¬
writer—Lehman Brothers, New York.

common

share.

per

working capital. Office—Jacksonville,

—Plymouth Bond & Share Corp., Miami, Fla.

Weis & Co., and J. A. Winston

Co., Inc., all of New York; Bruno-Lenchner

mon

& R.

Underwriter—

Okla.

Norman,

755,

Box

O.

.

if McKesson & Robbins, Inc.
July 24 filed $3,000,000 of participations in its Employees
Stock Purchase Plan, together with 75,000 shares of com¬
mon
stock which may be purchased pursuant thereto.
Office—155 East 44th Street, New York.

if Lenahan Aluminum Window Corp.
July 28 filed 157,494 shares of common stock, to be
offered initially to stockholders on the basis of one
new share for each two shares owned as
of the record
date. Unsubscribed shares will be offered to the public.

burgh, Pa.; Netherlands Securities Co., Inc., New York:
and Plymouth Bond & Share Corp., Miami, Fla. Offering

April 16

Office—54 Mill

St., Laconia, N. H. Underwriter—Tucker, Anthony
Boston, Mass. Issue was placed privately.

share, expiring June 30, 1961. Price — $10 per
Proceeds—Toward reduction of short-term bank

International

capital.

L. Day,

per

Dec. 29 filed

dress—P.
None.

working

"/-.i

convertible

$250,000 of 6%

July 1, 1964, and converti¬
ble into units of common stock which consist of one
share of class 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¬

subordinated

Proceeds—For

share.

loans; to liquidate long-term debt; and the balance for
additional working capital.
Underwriters — Standard
&

Inc.

of notification) $200,000 of 6%% con¬
debentures due April 1, 1974.
Price—At face amount.
Each $1,000 debenture convert¬
ible into 700 shares of common stock at $1,42 6/7 per

Farmers
to offer

Co.

(letter of notification)

(letter

16

vertible

(for each two "A" warrants) at $12 per share, expiring
June 30, 1961; and for each two "B" warrants held at

Securities Corp., Irving

Manufacturing Co.,

Kinsman

•

July

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

share.

properties. Office—2306 Bank of the South¬
Bldg., Houston Texas. Underwriter—None.

west

Industrial

$14

Proceeds—Acquisition of undeveloped

Maturizer
June 1

subordinated debentures due

oil and gas

96,604 common shares to holders of its outstanding stock
of record June 30, 1959, for subscription at $6.25 per
share on the basis of one new share for each two shares
then
held.
Proceeds—For working capital.
Office—
St., Dryden, N. Y.

filed

8

$25,000 or more.

New Jersey corporation, on the
basis of 40 shares of preferred and 25 shares of common

South

prepayment of notes and other purposes. Office .
St., Westbury, L. I., N. Y.
Underwriter—
Vermilye Brothers, New York.
Main

—558

Kilroy

8,175 common shares are to be offered in exchange for
327 shares of common stock of Farmers

•

stock (par 100). .
sales promotion, i
production test equipment, research and development, »
demonstrators for special systems, receivables,
29 filed

tories,

June

Union Telephone Co., a

25

Inc. (8/26)
200,000 shares of capital
Price—$3.75 per share. Proceeds—For
Matronics,

June

Calif.

the outstanding

each share of common capital stock of
Union.
The issuing company further proposes

Proceeds—To selling stock¬
effective June 5.

ir Kerr Income Fund, Inc.
July 24 filed 200,000 shares of capital stock. Price—At
market. Proceeds—For investment. Office—Los Angeles,

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

£or

through merger.

Underwriter—None. Statement

holders.

Lumberman's

Acceptance

Co.

July 13 (letter of notification) 2,000 shares of $7.20 pre¬
ferred cumulative series A common stock.
Price — At
par

Proceeds — For working capital.
Mendocino Ave., Santa Rosa, Calif. Under¬

($100 per share).

Office—306

writer—None.
•

Magnuson

June

26

filed

Properties,
500,000

Inc.

'(8/12)

shares of class A common stock.

supplied by amendment. Proceeds—$443,071 is to be expended during the period ending Aug. 31,

Price—To

be

1960, for mortgage payments and releases; $465,000 will
paid on notes acquired by members of the Magnuson
family in the transfers of subsidiaries and properties to

be

exist¬
ing loan secured by a mortgage on, the Florida Shores
properties in Edgewater, Fla., and an assignment of a lot
contract receivable; about $150,000 for the construction
the company; $350,000 will be used to pay

of the first four stories of the

off

an

company's proposed office

estimated at $lq0,000
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 York.

building

in

Miami

(the

balance

Mid-America
June 22

Minerals, Inc.

filed $921,852 of

Working Interests and

Over—

riding Royalty Interests in 26 oil and gas leases covering t
in Green and Taylor Counties, Kentucky, some'

lands

of the interest

interests and some non- *.

being producing

producing. The offering is to be made initially to Par¬
ticipants in the Mid-America Minerals, Inc., 1959 Fund.
Price—$2,221.33 per smallest unit. Proceeds—For invest¬
ment in oil and gas lands.
Office—Mid-America Bank
Bldg., Oklahoma City, Okla.

Underwriter—None.

if Military Management Corp.
July 10 filed 25,000 shares of class

(par $2). Price—$2 oer share.
capital. Office—1424St., N.
Underwriter—None.
/
M.

&

S.

Oils

per

ment and

toon,

shares of capital

stock. Price—€0

share.
Proceeds — For exploration, develop¬
acquisitions. Office—5 Cobbold Block, Saska¬

Canada.

Saskatchewan,

land Securities Ltd.,
Narda

.^

Ltd.

May 11 filed 390,000
cents

A common stock,

Proceeds—For working
W., Washington, D. C.

Underwriter

Regina, Saskatchewan,

Microwave

Corp.

—

Cumber-,

Canada.

(8/3-7)

shares of common stock (par 10
cents) and 50,000 warrants to be offered in units, con¬
sisting of one share of common stock with attached
warrant entitling the holder to purchase one additional
share.
The statement also includes an additional 10,000;
shares of common stock reserved for issuance to key

June

16

filed

50,000

Volume

190

Number

5868

.

The

.

.

Commercial

and

Financial Chronicle

(451)
employees pursuant to options. Price—To be
supplied
by amendment. Proceeds
To be used to retire bank

Park, L. I., N. Y.
New York, N. Y.

—

loans. Underwriter—Milton D. Blauner &
Co.. Inc.
York.
"
' '

New

•

*

National Citrus

April 20
For

(letter of notification) 150,000 snares of com¬
Price—At par ($2 per
shareProceeds—

new

equipment, inventory and working capital. Ad¬
dress—P. O. Box
1658, Lakeland, Fla.
Underwriter—
R. F. Campeau Co.,
Inc., Detroit, Mich. Offering—Ex¬
pected in August.

it Oak Valley Water Co.
June 30 (letter of
notification) $145,000 of 5y2% first
mortgage bonds series of 1958. Price—At par. Proceeds

National Packaging
Corp. (8/5);
July 10 (letter of notification) 32,800 shares of common
stock (par $1).-Price—$5 per share.
Proceeds—To pur¬

Ind.

—To

—

>

shares

of

lative voting and non-assessable

To be designated.

capital

Investing
stock

common

stock.

Offering—Expected in about
&

Oils

Price—

'

current

market

on

Oreclone

offered

the

on

basis

of

$100

principal

writer

To

—

Probable

be

determined

by

on

amount

stock

common

Aug. 5, 1959; rights to expire
25, 1959.
Proceeds—For construction

or

held

about

•

Pall

Canada, Ltd.,
(par 34

general corporate

purposes.

Office—New

Underwriter—Myron A.

bidding.

of 6% 10-year
debentures to be offered for
subscription
by stockholders in denominations of $100, $500 and
$1,000 each. Rights will expire July 31, 1959. Price—At
par.
Proceeds—For working capital. Office—Suite
487,
795 Peach tree Street, N. E.,
Atlanta, Ga. Underwriter—
None.
North

Co., Inc. (7/30)
"1
July 1 (letter of notification) 150,000 shares of common
stock (par one cent) to be offered on an all or none
basis.
Price—$2 per share. Proceeds—To pay bank loan$* re¬
Hills

Electric

deem

outstanding preferred stock, purchase additional
equipment, build inventories and add to working capital.
Office—402 Sagamore Ave., Mineola, L.
I., N. Y. Under¬
Bernheimer & Co., Inc., New York.
■<

writer—D. F.

Northern States Power Co.

June 9 filed 952,033 shares of common stock
beings of¬
fered for subscription by common stockholders of record

July 23 on the basis of one new share for each 15 shares
held; rights to expire on Aug. 11, 1959. Price—$22T per
Proceeds

—

For

construction

tures, including the payment of

program

expendi¬

then existing bank
Underwriter—Merrill
Lynch, Pierce, Fenner & Smith, Inc.
(estimated

at

any

$14,000,000).

it Northfield Precision Instrument Corp.
July 10 (letter of notification) 150,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For working capital.
Office—4400 Austin Blvd., Island




Phototronics Corp., College
Point, L. I., N. Y.
200,000 shares of common

Price—$1.50 per share. Proceeds—
and installation of
machinery; electronic and
optical test equipment; purchase and installation of
fix¬

tures

and

for

Sommerfield
N.

Y.

N.

„

working capital. Office
c/o McNabb,
James, 40 Exchange Place, New York,
—

&

Underwriter—M.

H.

Y.

Pioneer Finance Co.

Woodhill,

Inc.,

New

York,

(8/3-7)

tures due Aug. 1, 1971
(with warrants to purchase 75,000
shares of
common
stock).
The securities are to be
offered for public sale in

units, each consisting of $1,000
principal amount of debentures and a warrant
entitling
the holder to buy 75 shares of common
stock. Price—To
be supplied
by amendment. Proceeds—For general cor¬
porate purposes.

Detroit,

Mich.

New York,

Office—1400

National

Bank Building,
White, Weld & Co.,
Lerchen & Co., Detroit.

Underwriters

and Watling,

—

Prairie Petroleum, Inc.
July 14 (letter of notification) 1,197,200 shares of com¬
mon stock. Price—At
par (25 cents per share). Proceeds
—For expenses of
exploring and developing of oil and
gas properties. Office—Patterson
Bldg., Denver, Colo,

Underwriter—None.
Producers Fire & Casualty Co.,
Mesa, Ariz.
31 filed 400,000 shares of common stock to

March

$750,000 of 5V2% subordinated convertible

due

July

1,

1974,

and

40,000

outstanding

Price

—

To

be

supplied

by

amendment.

Paine, Webber^
Curtis, and Hayden, Stone & Co., all of New
—

1

Jackson

&

York.
Pan American World
29

filed

ordinated

holders

Airways, Inc. (7/29)
$46,962,100 of 4%% convertible

debentures due

on

shares

of

exipre

basis

a

of

sub¬

1979, being offered to stock¬

$100

of

debentures

for

each

14

on

capital stock held

July 29, 1959; rights to
Aug. 12. Price—100% of principal amount.
Proceeds—To be used as an addition to working
capital,
or as a portion of the funds
required in connection with
the acquisition of jet-powered aircraft,, including all
cargo aircraft and related flight and ground equipment,

or

both.

Underwriters

blower &

—

on

Lehman

Brothers

and

Horn-

for subscription by holders of stock
purchase
rights acquired in connection with life insurance policies
issued by Dependable Life Insurance Co. and to certain

For

—

investment."

Fayetteville, Ark.

Office

—

Hathcock

Building,

Underwriter—None.

Peckman Plan

Fund, Inc., Pasadena, CalH.
May 19 filed 20,000 shares of common stock (par $1)
Price—At

market.
Proceeds—For investment.
Under¬
writer—Investors Investments Corp., Pasadena, Calif.

Pennsylvania Electric Co.
June

15

filed

Aug. 1, 1989.

(8/4)
$15,000,000 of first mortgage bonds due
Proceeds — Will be applied to repayment

of short-term bank loans
poses,

and

brokers

of

share.

per

Producers

for

1959

incurred for construction pur¬

construction

expenditures.' Under¬

writer—To be determined by competitive

bidding. Prob-

ableibidders: Halsey, Stuart & Co. Inc.; Equitable Secu¬
Corp.; Kidder, Peabody & Co.; Eastman Dillon,
Co., Merrill Lynch, Pierce, Fenner &
Smith, Inc. and White, Weld & Co. (jointly); The First

rities

Union Securities &

Fire

Proceeds—For

&

Casualty Co.
capital.

working

Underwriter—None.
Provident Security Life Insurance Co.
June 30

stock

(letter of notification) 50,000 shares of common
(par $1) to be offered to the policyholders of this
and of the Provident Security Insurance Co.

company

Price—$6 per share. Proceeds—To increase capital and
surplus.
Office—40 E. Thomas Road, Phoenix, Ariz.
Underwriter—None.

common

stock

Each purchaser of stock is entitled to receive

(par $1).
one

stock

purchase warrant for each five shares of stock acquired.
The warrants will entitle the holder to acquire one share
of

common

—$2

per

2000

W.

for each five shares of stock acquired.

share.
Colfax

Price
Proceeds—For working capital. Office—
Ave., Denver, Colo. Underwriters —

Amos C. Sudler &

Co., and Purvis & Co., both of Denver,

Colo. Offering—Expected in August.

Rad-O-Lite, Inc.
July 8 filed 300,000 shares of common stock (par 250).
Price —$1.50 per share.
Proceeds — For general corpo¬
rate purposes. Office—1202 Myrtle St., Erie, Pa. Under¬
writer—John G. Cravin & Co., New York.
OfferingExpected in September.
Raub Electronics Research Corp.
(8/12)
July 15 filed 165,000 shares of common stock of which
150,000 shares will be offered to the public. Price—$8.50
per share.
Proceeds—For general corporate purposes.
Office—1029 Vermont Avenue, N. W.,
Washington, D. C.
Underwriter—Weil & Co., Washington, D. C.
•

Raytherm Corp.

(7/30)

June 29 filed 150,000 shares of common

118,000 shares
count and

for

are

stock, of which

to be offered for the

company's

ac¬

the remaining 32,000 shares are to be offered
of certain selling stockholders. Price—

the account

$7.50

Weeks, both of New York.

Participating Annuity Life Insurance Co.
June 4 filed $2,000,000 of variable
annuity policies. Pro¬
ceeds

be

offered

Radinsky Investment Co.
1 filed 100,000 shares of

owing to principal stockholders on open account; chattel
mortgages 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.,

June

subordinated

shares held.

June 9 (letter of
notification)
stock (par 10
cents).

Under¬

program.

competitive

Proceeds—To liquidate short-term bank
loans; to retire
$115,000 of 7V2% debenture bonds and $15,000 of 8%
debenture bonds; to be applied to repayment of loans

•

North American Acceptance
Corp.
April 29 (letter of notification) $300,000

each two

2,

June

stockholders.

100,000 shares of common stock (par 10
Price—$5 per share. Proceeds—To reduce bank
for

June

1959; right expire July 31, 1959.
Price—1% cents per share. Proceeds—For
working cap¬
ital.
Office—Soriano Building, Plaza
Cervantes, Manila
(P. I.). Underwriter—None.

Price—$5

shares of class A stock. The 40,000 shares of class A stock
($1 par) will be sold for the account of certain selling

Photocopy & Business Equipment Corp.

Hyde Park, L. I., New York.
Lomasney & Co., New York.

of one new share for

date

agents and

Corp.

June 25 filed

(8/19)
July 21 filed
debts and

at the rate

Record

Aug. 5.

cents).
Price—At net asset value, plus
underwriting
discounts and commissions.
Proceeds—For investment.
Underwriter—Carl M. Loeb, Rhoades &
Co., New York.
Nord

Inc.
April 10 filed 221,883,614 shares of
capital stock, being
offered for subscription
by holders of outstanding stock

of

Aug.

bidders:

debentures,

stock

42nd Street, New York.
Underwriters—Sim¬
Co., and Michael Horowitz, both of New York.

of

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

Price—Related to
the American Stock

common

E.

&

July 13 filed $1,000,000 of subordinated capital deben¬

debentures for each 40 shares of

repay

1,000,000 shares of

working interests in oil

Philippine Oil Development Co.,

•

-

June 30 filed

for

—

Concentrating Corp., New York, N. Y.
May 20 filed 200,000 shares of common stock
(par 10
cents).-Price—$3 per share. Proceeds
For repayment
of
outstanding obligations and for working capital. Underwriter^-Investment Bankers of America,
Inc., Wash¬
ington, D. C. Offering—Expected any day.

be

of

New York Capital Fund of
Toronto (8/6)

to Petrosur

Purchase

record

Ltd.

price

stock

leases; from the sale of the preferred stock to
Creole
Explorations, Inc., the selling stockholder. Office
gas

—

30 days.

—None.

loans

in August.

—

bank loans, for develop¬
properties, and for general corporate purposes.
Office—145 Yonge Street,
Toronto, Canada. Underwriter

share.

the

of

Owens Yacht Co., Inc. (8/7)
July 2 filed 300,000 shares of common stock
(par $1).
Price
To be supplied by amendment.
Proceeds
To
selling stockholders. Office—Stansbury Road,
Dundalk,
Baltimore, Md. Underwriter—Shields & Co., New York.
Pacific Power & Light Co. (8/5)
July 7 filed $10,996,000 of covertible debentures, to

1,265,000 shares of

Exchange. Proceeds—To

and

—

cumu¬

compensation to brokers and dealers.

■

of

the cost of

pay

tional Trade
Mart, New Orleans, La. Underwriter
Lindsay Securities Corp., New Orleans, La.

•

common stock, of which
1,000,000 shares will be offered for the account of the
company; 100,000 shares will be offered for the account
of a selling stockholder
(Albert Mining Corp. Ltd.);
and the
remaining 165,000 will be paid as additional

cents).

cost

—

Co.

New Pacific Coal

•

the

Olson Construction Co.

share).

Nedow Oil Tool

ment

of

July 29 (letter of notification) $300,000 of 6% subordi¬
nated coupon debentures due
July 1, 1964 to be offered
in denominations of
$1,000 each. Price—At face amount.
Proceeds
For working
capital.
Office—410 S. 7th
Street, Lincoln, Neb. Underwriter
Ellis, Holyoke &
Co., Lincoln, Neb.

May 5 (letter of notification) 150,000 shares of common
stock (par 50 cents).
Price—$2 per share. Proceeds—To
acquire fishing tools for leasing; and for
working capital.
Address—P. O. Box 672. Odessa. Texas. Underwriters—

then

portion

a

Interna¬

-

Proceeds—For organizational ex¬
penses and first three months' operational
expenses. Of¬
fice—1250 Wilshire
Blvd., Los Angeles 17, Calif, Under
writer—Waldron & Co., San Francisco
4, Calif., has
withdrawn as proposed underwriter.

the

Inc.

—

500,000

Naylor Engineering & Research Corp.
Sept. 29 (letter of notification) 300,000 shares of

June 11 filed

&

Oil, Gas & Minerals, Inc.
April 2 filed 260,000 shares of common stock
(par 35
cents.
Price—$2 per share. Proceeds—To retire bank
loans and for investment purposes. Office—513

—

•

Valley,

Offering—Expected

(par 50
cents). Price — $1 per share. Proceeds
For working
capital and investments.
Office—Hartsdale, N. Y. Un¬
derwriter—None.

At par ($1 per

Office

—

latter part of August.

Capital

financing.

water supply and distribution
sys¬
a
new 12 inch well to
increase
the company's supply of
water; and to pay the costs and
expenses of financing.
Office—330 Main St.,
Mantua,
N. J.
Underwriter
Bache & Co., New
York, N. Y.

tem; to

Investing Corp., New York.

Business

Oak

repay

construction

•^ Nationwide Auto Leasing System, Inc.
July 16 (letter of notification) 142,500 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For financing of leased cars and for
general corporate
purposes. Underwriter—Investment Bankers of
America,
Inc., Washington, D. C. Offering—Expected during the
Small

of

expenses

• Oak Valley Water Co.
June 30 (letter of
notification) $125,000 of 5V^/o first
mortgage bonds series of 1958. Price—At
par. Proceeds

Centers, Inc.

payment of certain bowling alley and other
properties,
and the balance will be added to the
company's general
funds available for development of
properties and the
acquisition and development of additional
bowling prop¬
erties. Office—55
Broadway, New York. Underwriter—

Corp.
April 24 filed

common

mons

disposal system

the costs and

pay

Main

St., Mantua, N. J. Underwriter—Bache
Co., New York, N. Y. Offering—Expected in
August.

July 2 filed $1,000,000 of 6% convertible income deben¬
tures cumulative due
1969, series C, and 1.00,000 common
stock purchase warrants. Price
100%
of principal
amount. Proceeds—To be used for
completion of and/or

Nationwide

Corp. (9/15)
15 filed 100,000 shares of common stock
(par 10
cents) and 100,000 shares of 6% cumulative convertible
preferred stock (par $5). Price—$6.20
per unit, each unit
consisting of one share of common at $5 and one share
of preferred at
$1.20. Proceeds—From the sale of the

—161

to

—330

—

General

Petrosur Oil

July

and

machinery and equipment, raw materials, inven¬
tory and for working capital. Office
3002 Brooklyn
Ave., Fort Wayne, Ind.
Underwriter—First Securities
National Sports

Boston Corp.; Harriman
Ripley & Co. Inc. and Blyth &
Co., Inc. (jointly). Bids—Expected to be received
up to
lLa.m, (EDT) on Aug. 4 at the offices of
General Public
Utilities Corp., 67 Broad St., New York
4, N. Y.

—To repay to Oak
Valley, Inc. a portion of the cost of
construction of sewerage collection and

chase

Corp., 510 Lincoln Tower, Fort
Wayne,

Northwest Defense

Minerals, Inc., Keystone.
<
S. Dak. .(8/5)
May 4 (letter Of notification) 300,000 shares of common
stock (par 1Q Icents).
Price—$1 per share. Proceeds—
For exploring and
recovering strategic metals and pro¬
ducing same. Underwriter—Caldwell Co., 26
Broadway,
New York, N. Y.

Corp.

stock.

mon

Underwriter—Robert Edelstein Co.,

39

per share.
Proceeds—To retire bank loans, to ex¬
pand plant capacity and research facilities through pur¬
chase of machinery and equipment and through lease¬

hold

improvements; and the balance for working capital.
Oakside at Northside, Redwood City, Calif.
Underwriters—Blyth & Co., Inc., San Francisco and
New York; and Schwabacher & Co., San Francisco, Calif.

Office

—

^ Rj&dInc.
July 28 filed 200,000 shares of class A stock. Priced— $3
per
share.
Proceeds—To pay off mortgages and for
working capital. Office—Jamaica, L. I., N. Y. Under¬
writer—Robert L. Ferman & Co., Miami, Fla.
Republic Resources & Development Corp.
June 29 filed 1,250,000 unit shares of capital stock.

Price

—$2 per share. Proceeds—To be used in the _company s
oil exploration program for the purchase of oil explora¬
tion

and

drilling equipment, supplies and materials; to
geophysical contractors for technical

contract with U. S.

Continued

on

page

40

*

The Commercial and Financial Chronicle

40

..

1959

Thursday, July 30,

.

(452)

for

(P. J.)

10

the

shares for

of selling

30

Canadian).

statement,

Ga.

^ Rorer (William H.) Inc. (8/17)
July 22 filed 155,269 outstanding shares of capital stock.
Price—To
be supplied
by amendment.
Proceeds—To
selling stockholder.
Office—4865 Stenton Ave., Phila¬
delphia, Pa. Underwriters — Kidder, Peabody & Co.,
New York, and Schmidt, Roberts & Parke, Philadelphia,
pa.

nominal value).
has been made
by Royal Dutch and Shell Transport to Canadian Eagle :
Oil Company Limited, for the whole of its assets and
business. Pursuant to the offer, there would be allotted

port filed 1,191,304 ordinary shares (£
According to the prospectus, an offer

Eagle, for distribution in kind to its share¬
holders, 3,971,012 fully paid shares of Royal Dutch and
5,956,518 fully paid ordinary shares of Shell Transport.
Bataafse Petroleum Maatschappij, N.V., a company of
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 held. The offer is to be voted upon
by Canadian Eagle shareholders at a meeting to be held
July 21, 1959. After the shares of Royal Dutch and Shell
Transport have been distributed to Canadian Eagle
to Canadian

shareholders, Canadian Eagle is to be dissolved. State¬
ment effective June 17.

-

J

'

\

.

capital. Office — New
Underwriters—Hirsch & Co., and Lee HigginCorp., both of New York.
City.

Underwriter—None.

Southwestern

Drug Corp.
July 22, 1959 filed 87,818 shares of common stock. Price
—To be supplied by amendment. Proceeds—For general

including working capital. Office—
Dallas, Texas. Underwriter—First Southwest Co., Dallas.

corporate purposes,

^ Speedry Chemical Products Co.,

(9/1-4)

Inc.

July 30 filing expected of 218,333 shares of class A stock
(par 50 cents), of which 51,667 shares are to be offered
of

account

stockholders.

company

and

166,666 shares for selling

Price—To be supplied by amendment. Pro¬

Office—Richmond Hill,
Underwriter—S. D. Fuller & Co., New York.

★ Standard Aircraft Equipment Co., Inc. (8/3)
July 12 (letter of notification) 75,000 shares of common
stock

(par five cents). Price—$4 per share. Proceeds—
general corporate purposes. Underwriter—Adams &

Peck, New York.

St. Clair

Speciality Manufacturing Co., Inc. (8/3)
June 29 filed 30,000 shares of common stock.
Price—
To be supplied by amendment.
Proceeds — To be ap¬
plied in partial payment of 5% note due April 1, 1961.
Office
120 Twenty-fifth Ave., Bellwood, 111.
Under¬
writers—Stifel, Nicolaus & Co. Inc., St. Louis, Mo.; and
Walston & Co., Inc., New York.
—

St.

June 26

filed 30,000

shares of common stock (par $5).
company proposes to offer this stock in exchange
for outstanding shares of common stock of Lone Star
Bag and Bagging Co. on the basis of 0.6782 of a share of
St. Regis common for each share of Lone Star common.

The

St.

Regis will declare the exchange offer
95% of the outstanding shares of Lone Star
deposited for exchange, and may elect to do
but

percent,

less

not

than

80%, of all

effective
common
so

the

if

a

if

are

lesser

Lone

Star

will enable it to control the business
operations
and policies of Lone Star.
common

St.

June 8

(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. Office—305 Morgan St., Tampa 2, Fla. Under¬
writer—Stanford Corp., Washington, D. C.
Strategic Materials Corp.

Regis Paper Co.

June 24 filed 20,000 shares of common
stock

(par $5) to

°ffered by the company to the holders of the common
^ Chemical Packaging Corp. on the basis of one
snare of St.

for

rate of

stock, to be of¬
at the

subscription by common stockholders

one

share for each

new

five shares

about

July 20, 1959; rights to expire

1959.

held

on

or

Price—To be supplied

about Aug. 12,

on or

by amendment. Proceeds—
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., Strategic's principal
subsidiary, and by its other direct subsidiary, StrategicUdy Processes, Inc., which owns and operates a labora¬
tory at Niagara Falls, N. Y.; as working capital for a
mining subsidiary; for payment of a mortgage; and as
working capital for another subsidiary. Underwriters—
S. D. Lunt & Co., Buffalo, N.
Y.; and Allen & Co.,

For payment of bank loans;

New York.

i

Regis

shares of
42nd

common

common

St., New York.

Samson

for each five

Convertible

Securities

ky amendment.
Distributor—Samson
View
filed

Fund,

common

150 East

stock.

Inc.
Price—To

Manor, N. Y. Gen¬

Associates, Inc.

par

$420,000

Price—$340

of 7%

(8/26)
convertible

subordinated

common

stock

at

$3.50

per

share.

Proceeds—To retire loans; for
machinery and equipmentand to add

to working capital. Office—3975 N. W. 25th
Miami, Fla. Underwriter—Michael G. Kletz &
Co., Inc., New York City.

Street,

•

f'tjrt.

Studebaker-Packard Corp.
July 1 filed 165,000 shares of $5 convertible preferred
stock (par $100) and 5,500,000 shares of common stock
(par $1). The 5,500,000 shares are reserved for issuance
Jan.

common stock (par 10
of two debentures at $100

unit

per

and 40 shares of

■r

supplied by amendment.
Underwriter

upon

Industries, Inc.

debentures^ and 84,000 shares of
cents).

Stuart Hall Co., Kansas City, Mo.
8 (letter of notification) 23,169 shares of common
stock (par $1).
Price—To be

June

Proceeds—For general corporate purposes.
—White & Co., St. Louis, Mo.

Proceeds—For investment.

Office—23 Hazelton Circle, Briarcliff

Sea

—

one-half

Underwriter—None.

July 15 filed 200,000 shares of

eral

and

stock of Chemical. Office

...

..I

')>




■■

.

it

»

■

• •

ft

.

'

conversion

of

the

preferred

stock

and

on

after

1,

1961, at the conversion price of $3 per share,
(taking the preferred at $100 per share). The preferred
stoqk was originally issued by the company in October
1958, to 20 banks and three insurance companies pur¬
suant

to

stock, $4

stock, $10 per share; and for common

share. Proceeds—To purchase

and New York.

Tape Cable Electronics Co., Inc.. (8/10-14)
8 filed 110,000 shares of common stock (par one
cent). Price—$3.75 per share. Proceeds—For the pur¬
•

June

chase

and

of

construction

machinery

necessary

and

Cable, and

equipment, the promotion and sale of Tape

Office—790 Linden Ave., Rochester,
N. Y. Underwriters—Charles Plohn & Co. and Nether¬
lands Securities Co., Inc., both of New York.

for working capital.

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

Co., Inc. stock, represented by 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 Associates, Inc., Washington, District of Columbia.
•

Television Shares Management Corp.

(8/4)

July 1 filed 206,500 outstanding shares of common

stock

To be supplied by amendment.
stockholders. Office—135 South
LaSalle St., Chicago, 111. Underwriter— White, Weld &
Co., Chicago and New York.
(par one cent). Price
Proceeds—To
selling

Keys,

—

Inc., Providence, R.

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.
Co., Providence, R. I.

—E. R. Davenport &
Ten

Pin

stock.

Bowl

Inc.

Price

purchase land, building and
King Street, Alexandria, Va.
•

Distributor

_

(letter of notification) 29,000 shares of common
— At
par ($10 per share).
Proceeds — To

July 7

June 29 filed 368,571 shares of common
fered

Regis Paper Co.

per

Ten

Stelling Development Corp.
•

•
Superior Window Co. (8/24)
May 15 filed 50,000 shares of 70-cent cumulative con¬
vertible preferred stock (par $8) and 125,000 shares of
class A common stock (par 10 cents). Price—For pre¬

working capital, etc.

I., N. Y.

For

New

the assets of Superior
Trucking Co.; for repayment of notes; and for general
corporate purposes. Office—625 E. 10th Ave., Hialeah,
Fla.
Underwriter—Cruttenden, Podesta & Co., Chicago

it Southland Oil Ventures, Inc.
July 22 filed $1,000,000 of participating interests in the
company's 1959 Oil and Gas Exploration Program, to be
offered in units.
Price—$5,000. per unit, with a mini¬
mum commitment of $10,000.
Proceeds—For oil and gas
exploration program. Office—2802 Lexington, Houston,

L.

Israel.

ferred

loans and notes and for working

ceeds—For

79 Ben Yehuda St., Tel Aviv,

(par $1).
supplied by amendment. Proceeds—To pay

Price—To be

for

—

Statement effective June 24.

York, N. Y.

July 21 filed 300,000 shares of common stock

Texas.

per

Realty & Utilities Corp.

Southern

York

pounds—equivalent to $11

S.

Underwriter—American Israel Basic Economy Co.,

New

Inc.,

U.

Office

gram.

Co.

&

shares of common stock. Price—

Israeli

(19,800

funds), payable up to 90% in State of
Independence Issue and Development Issue Bonds,
and the balance in cash. Proceeds—For expansion pro¬

(8/3-7)

Ripley

Manitoba, Canada. 'Un¬
McDowell, Chicago and
I

Israel

Business—The com¬
nitrogen plant at Savannah,

York.

son

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¬

At par
«hare in

Office—8 MidUnderwriter—

cents).
selling stockholders.

owns and operates a
Underwriter—Harriman

pany

and for working

Super-Sol Ltd.
March 25 filed 250,000

stock
Price—To be supplied by amendment.

10

(par

amendment.

by

supplied

be

New York.

July 8 filed 136,400 shares of outstanding common
Proceeds—To

To

—

capital.
Office—St. Boniface,
derwriter—Straus, Blosser &

None.

Inc.

Price

Proceeds—For reduction of bank loans

payment of installment notes with interest; payment of a
bank indebtedness; payment and interest on notes pay¬

Co,,

Underwriter—None.

days.

Supercrete Ltd. (8/10-14)
July 2 filed 300,000 shares of common stock, of which
100,000 shares will be offered for the account of certain
selling stockholders, and the remaining 200,000 shares
will be sold for the company's account
(par 25 cent3

Rights expire July 29,1959. Price
—$14 per share. Proceeds—To be applied for costs in¬
curred and to be incurred in connection with the in¬
troduction of a new line of office dictating equipment;

Nitrogen

The offer is conditional upon

•

Record date July 2,1959;

Southern

stock of Suntide Refining
Sunray for each three

share of

one

the de¬
of Suntide so
that Sunray will own at least 90% of the outstanding
Suntide shares. Offering may be extended for additional

offered for

able; and for general corporate purposes.
dletown Avenue, North Haven, Conn.

of

posit by Aug. 7, 1959 of sufficient shares

Soundscriber Corp.

J.

the ratio

shares of Suntide.

May 13 filed 126,254 shares of common stock (par $4)
being offered for subscription by common stockholders
at the rate of one new share for each three shares held.

preferred stock, non-cumu¬
lative, voting, (par $100) and 60,018 shares of common
stock (no par) to be offered to the holders of preferred
and common stock of Brooks Foods, Inc., at the rate
of one share of Ritter preferred stock for each share of
preferred stock of Brooks and two shares of common
stock of Ritter for each share of common stock of
3rooks. 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 approxi¬
mately 62.5% of such stock, and who have agreed to
accept the exchange offer upon effectiveness of the reg¬

in

Co.

(8/4)

cents), of which 200,000 shares are to be
account of the company, and 1,350,000

■

stock to be of¬

May 19 filed 525,000 shares of common
fered in. exchange for common

stock (par

filed

"-/////';,

'

Sunray Mad-Continent Oil Co.

stockholders. Price—To be supplied
by amendment. Proceeds—For working capital. Office—
Central Ave. and Mechanic St., Silver Creek, N. Y. Un¬
derwriter—Maltz, Greenwald & Co., New York.

June 18 filed 4,827 shares of

istration

Corp.

1,550,000 shares of common

30

account

Canada.

Co., Bridgeton, N.

of

Silver Creek Precision

March

&

ment.

principal amount. Proceeds—To retire out¬
standing notes and for general corporate purposes, in¬
cluding additional working capital. Underwriter—White,
Weld & Co., New York.

Canada
June 26, 1958 filed 1,998,718 shares of common stock
(par $1). Of this stock, 1,174,716 shares are to be sold
on
behalf of the company and 824,000 shares for the
account of certain selling stockholders.
The company
proposes to offer the 1,174,716 shares for subscription
by its shareholders at the rate of one new share for
each three shares held (with an oversubscription privi¬
lege),. The subscription period will be for 30 days fol¬
lowing issuance of subscription rights.
Price—To be
supplied by amendment. Proceeds—To pay off demand
bote, to pay other indebtedness, and the balance if any
will be added to working capital. Underwriter—Pacific
Ritter

stockholders at the rate of

subscription by common

—100%

Ltd., Alberta,

Securities Ltd., Vancouver,

Stearns

$5,135,000 of 20-year 5y4% convertible sub¬
debentures, due Aug. 1, 1979, being offered

$100 principal amount of debentures for each 23 shares.
Record date July 21, 1959; rights expire on Aug. 4. Price

Underwriter—John G. Cravin & Co.,
Offering—Expected in September.

Petroleum

shares

ordinated

Manila, Philippines.

Richwell

of

June 19 filed

services; and to pay its pro rata shares of the dollar
exploration expenses under its agreement with three
other companies for joint exploration of concessions held
in the Philippines. Office — 410 Rosario St.. Binondo.
Inc., New York.

shareholders who may wish to offer or sell
the preferred and/or common stock.
Bear,
Co., one of the preferred stockholders, will
initially offer for public sale 550 shares of preferred
stock owned by it, at a price to be supplied by amend¬
preferred

See-burg Corp.

39

Continued from page

Terminal

Tower

Co.

equipment.
Office — 506
Underwriter—None.

(8/17)

July 21 filed $2,500,000 7% 10-year

sinking fund deben¬

tures, due Aug. 1, 1969, with warrants, each warrant en¬
titling the holder to buy 40 shares of common stock ($1
par) until Aug. 1, 1962 at $10 per share. Price—To be
offered at 100% of principal amount. Proceeds—To re¬
pay

bank indebtedness. Underwriter—Fulton

Reid & Co.,

Inc., Cleveland, O.
Tip Top Products Co.
May 29 filed $850,000 of 6% first mortgage sinking fund
bonds, series A (with warrants for 17,000 shares of class
A common stock), and 100,000 shares of class A common
stock. Price — For stock, $10 per share; for bonds, at
100% of Drincipal amount. Proceeds—To retire the pres¬
ent mortgage debt of the company, to pay off shortterm bank borrowings, and for working capital. Office—
1515 Cuming St., Omaha, Neb. Underwriters — J. Cliff
Rahel & Co., Omaha, Neb.; and The First Trust Co. of
Lincoln, Neb.
•

Tool

Research

&

Engineering

Corp.

July 14 filed 250,000 shares of common
Price—To be supplied by amendment.

working capital; to repay loans; and
equipment. Office — Compton, Calif.
Shields & Co., New York.
Trans-Central

Petroleum

Corp.

(8/17-21);

stock (par $1).

Proceeds—For
for additional
Underwriter —

(8/13)

corporate reorganization. The largest blocks
of preferred stock are now held by two insurance com¬

July 6 (letter of notification) 1,000,000 shares of common

panies—-the

—For expenses

a

Prudential

made

in

Metropolitan
Insurance

order

to

Co.

provide

Life
of
a

Insurance

America.

Co.

The

prospectus for

and

filing
use

by

the
was

the

cent). Price—10 cents per share. Proceeds
to explore for gas and oil and develop¬
New York 16, N. Y. Un¬
derwriter—Barnett & Co., Inc., New York, N. Y.

stock (par one
ment.

Office—Two Park Ave.,

Volume

190

Number

5868

.

.

The Commercial and
Financial Chronicle

.

(453)
Transcon

Petroleum & Development
Corp.,

standing

(letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1
per snare). Proceeds—
For development of oil
properties. Underwriter—First

June 4 filed

1,900,000 shares of common Stock (par
Price—$1 per share. Proceeds—For salvage

cent).

erations.

Office—1500

Massachusetts

Avenue,

Washington, D. C. Underwriter—None.

N.

Price

one

for all the

op¬

Tungsten Mountain Mining Co.

C.

June

Under¬

in

3

filed

Price —$5

cents.

(8/18)

Foundation, selling stockholders. Office—
233 Broadway, New York.
Underwriters—Blyth & Co.,
Inc., and Cyrus J. Lawrence & Sons, both of New York.

common

stock.

Price—

$3.50 per share. Proceeds—For general corporate
poses and to reduce indebtedness.
Office
222
—

—

pur¬

34th

Street, Newport News, Va. Underwriter—Willis, Kenny
& Ayres, Inc.,
Richmond, Va.
Insurance

Co.

April 16 filed 2,000,000 shares of common stock (par $5)
Price — $10 per share. Proceeds
For acquisition oJ
operating properties, real and/or personal, includinf
office furniture, fixtures, equipment and office
space, bj
lease or purchase.
Office — Wilmington, Del. Under
—

McKee

of

Portland,

Ore.,

240,000

Price—$6

shares

per

of

stock

common

June

29

tions

filed

of

stock

to

July 23 filed 500,000 shares of common stock (par $1).
Price—$3,50 per share. Proceeds—For general corporate
purposes.
Underwriter—Willis, Kenny & Ayres, Inc.,
Richmond, Va. Offering — Expected sometime during
August.

None.

11 filed 71,080 shares of common stock
(par 50
cents), of which 56,080 shares are being offered for sub¬
scription by stockholders at the rate of one new share
six

shares held of record June
30, 1959, at a
price of $19.50 per share. Rights expire July 31, 1959.
remaining 15,000 shares are being sold by certain
selling stockholders. Price — $21.50 on publicly offered

The

Proceeds—To

the

company

ing

a

and

$250,000

be

used

added

to

the

for corporate

expenditure

the

for

general funds

includ¬

purposes,

purchase

of

and

in¬

stallation
of
new
processing
equipment,
consisting
principally of two additional treaters for its Santa Ana
(Calif.) plant.
Underwriter — Dominick & Dominick,

New

Finance Corp.

Portland,

Ore.,

is

Pre»-

Ident.
Variable Annuity Life Insurance Co. of America

Washington, D. C. Underwriter—None.

Victoria

Raceway
May 25 filed 1,000,000 shares of
in Canadian funds). Price—$4.50

,

common

per

stock

share.

(par $2

Proceeds—

plant; and for work¬

ing capital and other corporate purposes. Office—Notre
King Street, Winnipeg, Canada. Under¬
writer—Original underwriter has withdrawn.

Dame Avenue at

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

issuable

upon

Plan.

The

the exercise of options granted key em¬
the company's Employees Stock Option

remaining 110,000 shares

stockholders

are

to be

issued

to

of

Greystone Granite Quarries, Inc., and
Pioneer Quarries Co., both North Carolina
corporations,


and to certain other parties in


a

title insur¬

writer—None.

Zapata

Off-Shore

Co.

(8/4)

July 13 filed 229,585 of common stock (par 50
cents).
Price
To be supplied by amendment.
Proceeds
To
Zapata Petroleum Corp., the selling stockholder. Office
—2218 First City National Bank
Bldg., Houston, Texas.
Underwriter—G. H. Walker & Co., New York.

Prospective Offerings
Albertson's Inc.
June 23 it

reported that the company contemplates
financing, probably in the form of com¬
mon stock.
Business—Food stores concern. Underwriter
—J. A. Hogle& Co., Salt Lake
City, Utah. Offering—
some

was

additional

will be

per

share.

New

Name—The

company's

changed to Buckingham Freight Lines.

Central! &

Southwest Corp.
May 19 it was announced that the
company in view o£
generally favorable market
conditions, is now consider¬
ing the sale of 350,000 or
400,000 shares of common

stopk.

Offering—Expected

writers

—

To

Freres

be

sometime this Fall.

Under¬

determined

by competitive bidding.
Co., Inc. and Harriman Rip¬

&

Co.

(jointly); The First Boston Corp. and
Merrill Lynch, Pierce, Fenner & Smith
Inc. jointly,,
Chesapeake &, Ohio Railway
July 15 it

was

(8/2L2)

reported that the road plans the sale

Co., Inc., and Salomon Bros.
if Cincinnati,
(8/24)
July 27 it

of

& Hutzler.

New Orleans & Texas

Pacific

Ry.

was

reported that the company plans to re¬
ceive bids on
Aug. 2,4 for the purchase from it of
$4,440,000 of equipment trust certificates.
Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; Salomon Eros. & Hutz"ler, both of New York.
Citizens National
Bank, Los Angeles, Calif.
July 8 the bank offered 210,000 additional
shares of com¬
stock (par
$10) to its stockholders of record June
30, 1959, on the basis of one new share for five
shares

mon

than held

(after a 50% stock
dividend); rights to expire
on Aug. 3.
Price—$37.50 per share. Proceeds—To increase
capital and surplus.
Underwriter—Blyth & Co., Inc., Los

Angeles, Calif.

exchange for all the out¬

Community Public Service Co.

reported that the company will register
debt and equity securities later this
year. Proceeds—For

(par $100). Underwriter—To be determined
by compe¬
titive bidding. Probable bidders:
Kidder, Peabody & Co.
and White, Weld & Co.
(jointly); Eastman Dillon, Union
Securities & Co.; Stone & Webster
Securities Corp. Bids
—Expected to be received on Sept. 9.

if Consolidated Edison Co. of New York Inc.
(12/21.)'
July 30 it was reported that the company plans the is¬
and sale of $50,000,000 first and
refunding mort¬
bonds. Proceeds
For construction
expenditures.
Underwriter—To be determined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; The First Boston Corp. Bids—Expected
suance

gage

—

on

Dec. 1.
1

was

construction

of

a

gypsum products plant in Albuquer¬
New Mexico, and for working capital. Office—Al¬
buquerque, N. M.
Underwriters—Jack M Bass & Co.,
Nashville, Tenn., and Quinn & Co., Albuquerque, N. M.

if Aurora Plasties Corp.
July 30 it was reported that the company plans early
registration of 225,000 shares of common stock (part for
selling stockholders). Business — Manufactures plastic
airplane models.
Underwriter
Burnham 6c

Co., New

—

York.

(9/9)

July 7 it was reported that the
company contemplates
the issuance and sale of
30,000 shares of preferred stock

to be received

American Gypsum Co.

July 15 it

que,

To construct and operate a racing

ployees under

$500,000 for capitalization of

company; $500,000 for additional
Great Plains Development

to

Expected sometime this fall.

April 21 filed $4,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual premium
contracts and no less than $1,500 for
single premium
conh
cts.
Proceeds—For investment, etc.
Office—1832
M Street, N. W.,

company;

Price—$10

name

—

be suDDlied by amendment (ex¬
share). Proceeds—For exploration
Underwriter—To be named by amendment.
of

Of these

capital contribu¬
Cc.; and $300,000 as
an additional
capital contribution to Great Plains Mort¬
gage Co.
Office—319 E. "A" St.,
Casper, Wyo. Undertion

per

Griswold

stock.

share.

ance

Price—To

purposes.
Graham Albert

common

Proceeds—$300,000 will be used for payments
contract to purchase shares of
International Fidelity
Insurance Co.; $325,000 for capitalization of
a fire insur¬

~

cents).

$1).
111.

the

of

$2,500,000 of equipment trust certificates on
either
Aug. 12 or Aug. 19. Probable bidders:
Halsey, Stuart &

on

ance

(8/6)
company sought ICC approval for the
is¬
250,000 shares of class A common
stock (oar
Underwriter—Cruttenden, Podesta & Co., Chica'go,
17

ley & Co., Inc. (jointly); Lehman
Brothers and Lazard

holders of record Nov. 1,
1958, in the ratio of one new
share for each 2.33 shares held on that
date. Price—$4
per

meeting to be held Sept.

Buckingham Transportation, line.

suance

(par $10)

1,199,307 are subject to partially completed sub¬
scriptions at $2, $3.33 and $4 per share; and the addi¬
tional 250,000 shares are to be offered
initially to share¬

Uranium Corp. of America,
Portland, Ora.
April 30,1957 filed 1,250,000 shares of common stoek(pai
16

op¬

—

July 13 (letter of notification) 10,000 shares of common
stock (par 15 cents). Price—$5
per share. Proceeds—
For general operating funds. Office—700 Gibralter Life
Bldg., Dallas, Tex. Underwriter—Texas National Corp.,
San Antonio, Tex.

pected to be $1

•

■

.

Nov. 17 filed 1,449,307 shares of

York.

Universal

and

a

offering was underwritten by The
Corp., New York.

about

shares

Polymeric Chemicals, Inc.

June

stock.

First Boston

■„
,

a

issuing 271,553 shares of
stock, to be offered to
stockholders on the basis
of one new share for
each 10 shares held
as of the record
date. The last
rights

par.

Wyoming Corp.

Pro¬

common

Probable bidders:
Blyth &
stock

contem¬

stock.

first

July 23 it was reported that at
2 stockholders
will consider

40,000 shares of preferred stock (par
$25). Price —
Proceeds—For construction and
equipment of
company's plant and for working capital.
Office—3^00
Montgomery St., San Francisco, Calif. Underwrite*—

At

each

75

Western Wood Fiber Co.

if United Discount Corp.

for

(par

thereof.
options permit purchase of the
underlying shares
per share.
Proceeds—For general corporate
pur¬
poses. Office—2801 East Colfax
Ave., Denver, Colo. Un¬
derwriter—None.

common

company

common

White, Weld & Co.

$1

March 5 filed 100,000 shares of

the

if Boston Edison Co.

The

and

that

meeting to be held
issuing not more than
mortgage bonds. Proceeds—To retire
short-term bank loans.
Underwriter—To be determined
by competitive bidding.
Probable bidders:
Halsey, Stuart
& Co.,
Inc.; The First Boston
Corp.; Harriman Ripley &
Co. Inc.; Lehman
Brothers; and

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

at

announced

offering of $4,500,000 of

—

$15,000,000 of

July

common

an

Manufacturing Co., Kansas City, Mo.
was

if Boston Edison Co.

share.

212,000 shares

it

Underwriter

Co., N. Y. C.

July 23 it was reported that
at
Sept. 2 stockholders will consider

—

i#

President.

U. S.

stock.

Western Empire Life Insurance
Co.

500,000 shares of

L.

common

working capital.
Washington, D. C. Under¬

a

if United Discount Corp.

Myrl

A

For

Proceeds—For repayment
bank note; to complete the
automation of the etched
foil production
plant at Englewood, N. J.; for manu¬
facture of machines to be
leased to capacitor manufac¬
turers; and for working capital. Office
Englewood.
N. J. Underwriter—Firm
originally indicated has with¬
drawn. Statement effective
July 8.
of

Louis Calder

writer—None.

class
—

Wellington Electronics, Inc.

July 24 filed 327,042 shares of outstanding capital stock.
Price—To be supplied by amendment. Proceeds—To the

Employees

of

Proceeds

Underwriter—Mitchum, Jones & Templeton and Schwabacher &
Co., Los Angeles, Calif.
May 6 filed

United

shares

share.

reportedly
selling stock¬

For expansion program and
additional working
capital. Business—The
company is engaged in the manu¬
facture of aircraft and
missile parts, aluminum
containers
and beer
barrels, aluminum curtain wall sections
for the
building industry and other
proprietary products. Un¬
derwriter—S. D. Fuller &
Co., New York.

—

equipment and working capital.
Office—511 Securities Building, Seattle
1, Wash. Under¬

filed

plates

July 20.

100,000

per

10

ceeds

—

Price—100%

construction, instal¬

writer—H. P. Pratt & Co., Seattle
4, Wash.

July 23

Benson

June

cor¬

if Wayne Manufacturing Co.
~
July 27 filed 90,000 outstanding shares of
capital stock.
Price
To be supplied
by amendment.
Proceeds
To
selling stockholders. Office—1201 East
Lexington Street,
Pomona, Calif.

^

denominations of $500 and $1,000 each.

^ Union Bag-Camp Paper Corp.

on

Office—1507 M
Street, N. W.
writer—None.
v

May 21 (letter of notification) $100,000 principal amount
of 7% first mortgage convertible
bonds, to be offered
of principal amount. Proceeds—For
lation of machinery and

three

Washington Land Developers, Inc.

—

S.

of these

was

In part to

purposes.

—D. H. Blair &

Constructors, Inc., in exchange

became effective

shares of capital stock (par $1).
share.
Proceeds
For investment.

$10.75 per
Office—South Main Street,
Greenville,
writer—To be supplied by amendment.

cumulative preferred

outstanding capital stock

—

holders, and, in part, to the
company, for the expansion
of production
facilities, for the organization of additional
outlets, and for general corporate

porations, and to the owner of Sherman Concrete
Pipe
Co., Chattanooga, Tenn., for the business and
assets of
that company.
Office—Mountain Brook, Ala. Statement

W.,

filed 235,000

—

Proceeds

560,000 shares of common
stock, to be offered
to the stockholders of
Ralph E. Mills Co., Talbott Con¬
struction Corp. and Talco

Trinity Small Business Investment Co.
April 17

volume in the fiscal
year ended June 30
about $10,000,000.

Vulcan Materials
Co., Inc.
June 29 filed
10,000 shares of 6*4%
stock and

Inc.

41

of

by Pioneer.

Planning Co., Washington, D. C.

Treasure Hunters,

stock

Greystone and Pioneer and
certain real and personal
properties operated under lease

Mangum, Okla.
March 20

Investment

capital

Consolidated Natural Gas Co.

May

James Comerford, President, announced that
plans later in year to issue and sell
$20,000,000
of debenture
bonds, if market conditions axe favorable.
Proceeds—For investments,
improvements, etc. Under¬
writer—To be determined
by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley
19,

company

& Co. and The First Boston
Corp.
Co. and Paine,

&

(jointly); White, Weld

Webber, Jackson & Curtis (jointly).

Construction Products Corp.,
Miami, Fla.
26 it was reported that this
company plans
offering of about 250,000 shares of class A common

June

an

stock,
200,000 shares will be sold for the account of
certain selling
stockholders, and 50,000 shares will be
sold for the company's account.
Proceeds
Working
capital. Underwriter — Clayton Securities Corp.,
Boston,
Mass.
Offering—Expected in the middle part of Sept.
of which

Barton's

July 15 it
an

issue of

Candy Corp.

was

reported

common

that

stock.

the company
Business
The
—

is planning
19-year-old

operates 67 retail candy stores in the Greater
New York area, and 45 other outlets ::i the area north
of Atlanta, Ga., and east of
Chicago, 111. Gross sales
company

—

Continued

on

page

42

and Financial Chronicle

The Commercial

.

.

Thursday, July 30, 1959

.

(454)

42

construction

For

Continued jrom page

41

Corp.
July 15 it was reported that approximately 1,000,000
shares of a secondary issue common stock will be reg¬

Underwriter—Merrill Lynch, Pierce,

istered in the Fall.
Fenner

New York.

& Smith Inc.,

El Paso

Natural Gas Co.

April 28 to increase

Stockholders voted

1,000,000 shares from 472,229 shares,
shares from 20,300,000 shares.
expansion program.
Underwriter—White, Weld & Co., New York.
stock to 25,300,000
Proceeds — For major

and the common

Essex

Trust Co.

Directors approved

ister

the offering of 108,904 shares of
new capital stock to stockholders of record Aug. 7, 1959;
rights to expire on Aug. 28, 1959. Price—$30 per share.
Proceeds—To increase capital and surplus. Underwriter

June

record July 15 were offered an
the basis of
each 6
shares held. The subscrip¬

Boston

July 30

will make an

offering. Proceeds—To buy

1 it was

Dec.

.

the

tion

plans to issue

Blyth & Co., Inc.. Kidder. Pea-

Shields & Co. (jointly); Lehman Broth¬
ers;
The First Boston Corp.; Morgan Stanley & Co.;
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly); Harriman Ripley & Co. Inc.
Registration—Planned for Aug. 21.
Bids—Expected to
body & Co. and

proximately

plans to issue

Bros.

Proceeds—

continues

vestors

monies.

selling

&

Jones

market, it appears from the favor¬
able behavior of high-rated cor-

porated issues.

it

13

was

tinues to put

its best foot forward

strength showing in
that direction with the Govern¬
ment's recent new issues meeting
quiet

steady demand.
the

Not

market

investment
of

dearth

volume.

new

force

is

of
the

emissions

Industry

in

any

is financing

its

expansion plans in a larger meas¬
ure these days but currently the
market is in the throes of the
usual
;

summer

corporate issues.

this

point there is nothing to

in¬

substantial outpouring.

dicate any

preferred stock to market.

new

The debentures

carrying

a

Discount Issues

5Vs%

5.15%,

coupon

and priced to yield

with

plans

company

Inc., St. Petersburg, Fla.

R.

offices

New York

at

Broad

15

Street,

City. He was formerly
White,

with Lehman Brothers and

to

Under¬

register $1,750,000 of notes and common stock.
-

Pagel Opens

BURBANK, Calif.—Raoul Pagel
is engaging in a securities business
offices

from
Street

at

Raoul

1036

the

under

North

firm

Avon

Pagel & Associates.

Joins J. B.

of

name
.

Hanauer

(Special to The Financial Chronicle)

Charles W.
to

the

■

Calif. ;
Targett has been added

BEVERLY

HILLS,

of

staff

J.

Hanauer

B.

&

Co., 140 South Beverly Driven

maturity of 21 years, was

a

reported to have been

Weld & Co.

snapped up

Now With J. A. Hogle

With Stewart, Eubanks

/ Cyiooiol

(Special to The Financial Chronicle)

' I'tr*r

nn,

Calif.—John A.
Richards
has become
affiliate
with J. A. Hogle & Co. 147.Ea
LONG BEACH,

SAN'FRANCISCO, Calif.

books.

f/\

(Special to The Financial Chronicle)

'

of the

quickly upon the opening

in

down

the

in¬

on

invest is

people

indicated

$5.60

cumulative dividend

ing

a

was

reported to have met equally

impressive demand.

H.

Sanford

has

DuBois

associated with Stewart,

—

become

Eubanks,

Meyerson & Co., 216 Montgomery
Street, members of the New York
& Pacific Coast Stock Exchanges.

First

period of months. Those carrying
2%%
and ZVz%
interest rates
have been more or less without

The

is

week

of
is

new

roster

cause

for any raising

eyebrows. Once more the

substantial

Weston Security

for next

issue

anemic and void

day's

friends.

no

Mon¬

undertakings.

feature

is

list

of any really

Crowell-Collier

FRANCISCO,

SAN
T.

Weston

of

the picture shows

changing.

indicative of

more

he

basic

investor thinking. It may

shift in

indicate that
the

some

current

are

convinced

rising

cycle

in

rates is at or near its zenith.

Naturally there
who

even

an

could

this

And

signs

see

are

always those

the opportunity

for capi¬

Corp's 200,000 shares of common
stock.
On

tric

Tuesday Pennsylvania Elec¬
will

Co.

open

million of mortgage
And

on

Power &

for

$15

235 Montgomery

firm

name

Sales.

Calif.—Lee

from

of

offices

at

Street under the
Weston Security

SAN

Wednesday

Pacific

bids

debentures.

on

$10,996,000 of
^

was

form

Kidder Peabody

come

body

FRANCISCO, -Calif.

-

has be¬
connected with Kidder, Pea

Charles

&

W.

Derryberry

Co., 140 Montgomery St

William

(Special to The Financial Chronicle)

FRANCISCO,

added

to

Fay,

221

the

staff

of

(Special to The Financial Chronicle)

SAN

With Hooker & Fay
SAN

Richards

Reynolds Adds to Staff

.

ated

Calif.

—

Robert H. Van der Leith has been

bonds.

Light Co. will be in the

market for
new

bids

Mr.

(Special to The Financial Chronicle) ■ -

III is conducting a se¬

business

curities

Sales

.

now

St.

erly with E. F. Hutton & Co. an
Paine, Webber, Jackson & Curtis

Joins

Light Calendar

high-coupon

present

phase of the market, prospective
buyers have been shying away
from
low-coupon
issues
for a

strike.

hands of institutional
in the


to

preferred stock, carry¬

And the

shown

that

of funds

corporate offerings

by the growing interest being
in "discount" bonds.

also

money

the accumulation

new

funds

with

velop in the steel industry which
some 87% idle because of the

is

almost complete slow

is putting the pressure

letdown.

presumably some people
with plans for raising new capital
in mind may be disposed to wait
a
while and see how things de¬

the

That

But

And

But

Certainly at

new

In

important

least

behind the improved behavior
the

happens it now appears that Aug¬
ust will be a really dull month in

(9/15)

the

that

reported

C. B. Demarest Opens

from

and

Calif.;

Angeles,

Los

West Florida Natural Gas Co.

July

its

of

another

stock.

_

Meantime the Treasury list con¬

with

not

has

Calif.

San Francisco, Calif.

The underwriting

unforeseen

something

Unless

Mounting
pressure
of
funds
seeking investment is making it¬
self felt in the top-quality bond

market

seasoned

The

the

Underwriters—Mit-

stockholders.

Templeton,

ORADELL,
N. J.—C.
Brooks
Demarest is conducting a securi¬

Out-the-Window

and

Co.,

reported that this company plans a sec¬

fraternity had ties business from offices at 433
"out-the-window" Prospect Avenue.
this
week
when
indicated anything in the way of operations
boisterous strength but it has been bankers brought Transcontinental
Opens Inv. Office
quietly reflecting the presence of Gas Pipe Line Corp.'s $20 million
Harry C. Hagerty, Jr. is en¬
steady and persistent demand at
of debentures and $15 million of gaging
in a securities business
a price level.
finding outlets for such

Probable

&

(jointly); Merrill Lynch, Pierce, Fenner

Schwabacher & Co.,

the discount

Weld

White,

Brothers;

writer—Beil & Hough

of

task

the

was

Proceeds—To

the company plans to re¬
from it of ap¬

in

Underwriter

competitive bidding.

ondary offering of about 90,000 shares of common

(8/26)

area.

10, 1959, on

shares then

100

Wayne Manufacturing Co.. Los Angeles,

Halsey,

appreciation

tal

less

problems for

each

for

quarter of 1959.

May 26 it

& Hutzler.

or

more

steadily, posing real
those
charged with

third

of equipment trust certificates.
Stuart & Co. Inc.; Salomon

$3,200,000

bidders:

Probable

share

Smith, Inc. Offering—Expected toward the end of

&

Aug. 26 for the purchase

on

Co.

&

chtsm,

Light Co.

of first mortgage bonds.

Shields

1,036,602 shares

For expansion program.

—

Lehman

bidders:

bank loans, and the

ceive bids

new

one

Proceeds

held.

refunding mortgage
be applied in part, to retire tem¬

July 7 it was reported that

of

basis

—May be determined by

and

first

of

$65,000,000

Pittsburgh & Lake Erie RR.

17.

reported that the company

(8/25)

balance to finance the com¬
pany's continuing program of expansion for the re¬
mainder of the year. Underwriter—To be determined by
competitive bidding. Probable bidders: The First Boston
Corp. and Halsey, Stuart & Co. Inc. (jointly); Blyth &
Co., Inc. Bids to be received on Aug. 25.
~

$18,000,000 of 30-year first mortgage bonds. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding.
Probable bidders

and sell $20,000,000

(Mo.)

stock to holders of record Sept.

common

the

that the only financing opera¬
will conduct this year will take the

Proceeds—To

porary

and Sell

Dec. 29 it was

Electric Co.

company

of

form

(9/17)

Power &

of

I

.

,

Pacific Gas &

bonds.

City

Electric Co.

Union

July 17 directors authorized issuance of

July 1 it was announced

Co.,
Va.;
Orleans, La.

Kansas

Underwriter—Simmons & Co., New York.

N. Y.

of¬

Associates, Cincinnati, Ohio

derwriter—John M. Tait &

Business—Manufacturer of stretch
Underwriters—H. M. Byllesby &
Inc., Chicago, 111.; Mason-Hagan, Inc., Richmond,
Howard, Weil, Labouisse, Friedrichs & Co., New

be received on Sept.

Office—Maspeth,

Proceeds—For working capital.

L. I.,

of capital stock. Price — $10 pei
Proceeds—To increase capital and surplus. Un¬

share.

first public financing.
wool panel flooring.

Halsey, Stuart & Co. Inc.;

manufactures electronics

company

fering of 950,000 shares

Flooring Corp.
July 30 it was reported that the company plans early
registration of $1,500,000 of 15-year bonds and common
stock, to be offered in units. This will be the company's

announced that the company

less than $300,000, in the

stock, amounting to

equipment, including simulators, trainers, and radar de¬
vices.

announced that the company plans an

will issue

reported July 29 that this corporation

Business—The

Fall.

Equitable Life Assurance Co.

North American

it General

Dec. 10 it was

financ¬

Expected in August or September.,

13.

Georgia Power Co.

was

.

Corp.

★ Transdyne
It

of Chicago

reported that company plans some

for cur¬

Previous issues have been

program.

placed privately.

Business—Distributor of electronic parts. Offering-

ing.

planes
and for general corporate purposes.
Underwriter—May
be Dunne & Co., New York. Registration—Planned for
the week of Aug.

construction

common

June 2 it was

$8,000,000 of bonds in December,

Proceeds—To repay bank loans incurred

rent

Proceeds—To increase capital and

derwriter—First

Gas Co.

&

McMeekin, President, announced plans

S. C.

22,

1959.

rights expire on Aug. 4,
surplus. Un¬
Corp., New York City.

Electric

Carolina

sell approximately

to

shares of capital stock on

Newark Electric Co.

initial common stock

> V"

So.

—None.

Airlines, Inc. (8/13)
it was reported that the company

Proceeds—

Underwriter—Kidder, Peabody & Co.; New

New York.

price is $43 per share and

1959.

it Gateway

public

any

general corporate purposes. Office—330 5th Avenue,

For

National Bank, Boston, Mass.

share for

new

tion

done

before

never

&

Merchants

one

has

York.

additional 72,500

approved on July 14,

which

plans to, reg¬
The

stock in August.

common

financing, manufactures shirts in Tennessee.

July 16 stockholders of

and the stockholders

of

100,000 shares

company,

share will be available during
Proceeds—For capital expendi¬

of August.

Inc.

July 15 it was reported that this company

tures.

•

the

30

June

common

the latter part

New York.

Federation Bank &

and

Salant

&

Salant

has decided
capital required by
stock to be offered to both pre¬
stockholders. It is expected that

rights to purchase these

next
few months expects the issuance and sale of about $2,000,000 of debentures. Underwriter—D. H. Blair & Co.,

Securities
& Co.

Corp.; The First Boston Corp. and Smith, Barney

announced that the company

of common

issue

ferred

that the company in the

by com¬

Pierce, Fenner & Smith, Inc.; Stone & Webster

substantial portion of the

to raise a

Universal Corp.

it was reported

15

June

be determined

Underwriter—To

year.

bidding. Probable bidders: Halsey, Stuart & Co.
and
Lehman Brothers
(joihtly); Merrill Lynch,

Inc.

Co., Ltd.

& Telephone

Telegraph

June 4 it was

an

the

in

petitive

(jointly).

Maritime

preferred stdck to

plans to issue and sell first mortgage bonds

pany

year.

the authorized

announced com¬
later

May 15, Frank McLaughlin, President,

bidders: Halsey,
Stuart & Co. Inc.; The First Boston Corp. and Blyth &
Co., Inc. (jointly); Equitable Securities Corp.; White,
Weld & Co. and Shields & Co. (jointly); Kuhn, Loeb &
Co., Salomon Bros. & Hutzler and Eastman, Dillon, Union
Securities & Co. (jointly); Lehman Brothers and Bear.
Stearns & Co.
(jointly).
Bids—Expected later in the

Cyprus Mines

& Light Co.

Power

Puget Sound

Underwriter—To be deter¬

program.

competitive .bidding. Probable

mined by

Hooker

&

Calif.

FRANCISCO,
R.

with

-

Morgan is now affili
Reynolds & Co., 421

Montgomery Street.

'

" '

With J. H. Ayres
(Special to The Financial Chronicle)

members
Pacific

Montgomery
of

the

New

Coast Stock

Street,

York

and

Exchanges.

COLORADO SPRINGS,
Harold

E. Anderson

Colo.

-

is with J. H

Ayres & Co., 920 East Williamette

Volume

190

Number 5868

,

.

The Commercial and Financial Chronicle

.

(455)

Richard L. Coward With

Brokerage Acctg.
Courses Offered
Graduate
age

in

courses

Richard
appointed

Baruch

School, it

was

north

an¬

Mr.

Cohen,

Assistant Dean in charge of gradu¬
ate studies. The classes will ex¬
amine the accounting

years

and

terminology

and

The

pro¬

doperation

of

a

had

bro¬

putation
ness

of

and

designed

with

to

students

with

systems, handling
and recording securities, internal
audit, and depositors' and bor¬
Both

classes

will

beginning

meet

September

tration will be held

24.

5:30-8:30

School,
tact

p.m.

17

the

at

Lexington
Graduate

ORegon 3-7700, ext.
registration

and

California

with

now

B.

Irving Lund¬

borg: & Co., 1134 Chestnut Street.
DIVIDEND

form¬

was

DIVIDEND

NOTICES

G. Rutner is
Hill

Singer Manufacturing

&

Co.,

621

with

South

First

to

Co.

and

formed
National

in

engage

Officers

Exchange.

He
R.

prior thereto

Investment

been

business.

Stock

of

Board

record

of

10

at

Directors

the

close

of

has

declared

business

on

August

1959

24,

H.

ALEXANDER, Secretary

1959.

at

Con¬

from
ware

19

L.

20, for

informa¬

offices
Street.

2802

as¬

& Co.

On

NOTICES

vice president;

transfer

cents

the

(90c)

COMPANY, Inc.

jfjjll

the

at

1959

Aug. 5,1959.

cents

to

stockholders of record

at

the close of business July 31,1959.

HENGST, Secretary

JOHN F. SHANKLIN

Manufacturing plants in 18

J

Ninety

(901) per share on the outstanding
capital stock of this Corporation
has been declared, payable Sept. 1,

cities, located in six states,

Secretary and Treasurer

Canada and Brazil.

UNION

CARBIDE CORPORATION

A regular quarterly dividend of Forty-

l\ two cents ($.42) per share on the
Common Capital Stock of the Company,
issued and outstanding in the hands of the

NOTICES

A cash dividend of

Common Stock

on

_

of

share

per

shareholders of record

//

and M.

open.

UNION

Company, payable Aug. 25, 1959,

198th Consecutive Cash Dividend

E.

remain

Foundry Company

CARBIDE

shares of the

common

R. G.

POWER

will

and

dividend of

a

close of business

Dela¬

books

United States Pipe

COMPANY

July 24,1959, the Board

ninety

F. Dell, secretary-treasurer.

DIVIDEND

stockholders of record

10, OHIO

Directors declared

David

Gilbert

to

DIVIDEND No. 156

a

David

are

share on the outstanding Common Stock,
Company, payable September 15,1959,
on August 31, 1959.

of this

MANUFACTURING

EATON

business

North

Officers

Johnson, president;

McQuinn,

tion.

securities

1959

Staats

was

CLEVELAND

DIVIDEND

24,

JOHN W. BRENNAN, Secretary & Treasurer

sistant sales manager for
Morgan

are

July

was

to

a

per

The
D.

July

L. Johnson and Associates, Inc. is

engaging in

a

York, N.

The Board of Directors this day declared
quarterly dividend of thirty cents (30£)

a

quarterly dividend of fifty-five cents per share
payable on September 11, 1959 to
stockholders

AMERICAN ELECTRIC

—

New

Company
The

Calif.—John

associated

now

Richards

NOTICES

United States Pipe and Foundry Company
The

(Special to The Financial Chronicle)

ANGELES,

& Co., 734 Seventeenth St.

mayer

Investors.

With Hill Richards Co.
LOS

DENVER, Colo.—Max D. Stern
has become affiliated with Birken¬

Stock

John G. Rutner Now

In Inv. Business

Division,

course

—

INDIANAPOLIS, Ind.

Baruch

or

Coast

on

Regis¬

Ave.

with

is

Birkenmayer Staff

(Special to The Financial Chronicle)

MENLO.PARK, Calif.—John
Licata

p.m.

18 from

the

the

Building,

securities

Thursday and

Friday, September 17 and

added

T. H. Ruth, president; and Francis
A. Wilder, secretary-treasurer.

Thurs¬

6:50-8:30

offices in

Bank

transactions.

day evenings from

Pacific

Exchange. Mr. Harrison

&

banking

rowers'

the

formerly with William

(Special to The Financial Chronicle)

DENVER, Colo,
Bankers, Inc. has

Accounting"

acquaint

of

Coast

Form Inv. Bankers Inc.

com¬
indebted¬

capital.

"Commercial Bank
is

been

Joins

Spring St., members of the Pacific

th^

aggregate

available

bers

office.

kerage firm, margin requirements,
customer's accounts and

has

of

Crowell, Weedon
Co., 650 South Spring St., mem¬

as¬

McDowell; Dimond
Providence, and re¬

Co., Inc.,
cently with Weedon & Co.'s Bos¬
ton

Harrison
staff

Lundborg

(Special to The Financial Chronicle)

Bur-

—

six

retail

formerly

was

R.

the

experience

He

ANGELES, Calif.

se¬

past

broad

&

with

&

"Brokerage Ac¬
study the organ¬

will

an

accounts.

er

sociated

in

course

ization

the

for

has

to

with
individual, institutional and deal¬

cedures applicable to these special
fields.
v
:

counting"

business

and

dett

erly

poward has been in the

wholesale

LOS

been

df the New York City line.

curities

techniques;

industry

has

tive for

the fall semester at
City Col¬

nounced by Dr. Jerome B.

Coward

With Irving

(Special to The Financial Chronicle)

a
regional representa¬
Hugh W. Long & Co., Inc.
He will represent the Long com¬
pany throughout New York State

"Broker¬

Accounting" and "Commercial

lege's

L.

,

'■j Bank Accounting" will be offered
for

; (Well, Weedon Adds

Hugh W. Long & Co.

43

O'okiep Copper Gompany
Limited

public, has been declared payable Sep¬
tember 10, 1959, to the holders of record
at the close of business August 10, 1959.

Dividend

The
W. J. ROSE, Secretary

July 29, 1959.

No. 51

TCMNESSEf CORPOHATIO*

Directors today declared

a

ten

shillings per share on the
Ordinary Shares of the Company payable
September 1, 1959.
The

AMERICAN

of

Board

dividend of

Directors

authorized

tion of the said dividend

the

TENNESSEE
CORPORATION

distribu¬

September 11,

on

July 21, 1959

1959 to the holders of record at the close
business
on
September 4,
1959 of

of

BANK NOTE

American

shares

issued under

the

of the

Preferred Dividend No. 214

(5-

Cents

Five

Common Dividend No. 204

St

Common

hgg

Preferred

(llA%)

on

1,

de-

1^59

record Sep-

{

stockholders^
telTlber
yl B. LOEB, President
to

the

Stock for the

1959 and

share

been

QCtober

clared, pay»
per

The

dividend

will

a

quarter ending September 30,
dividend of 30^ per share on the Common
Stock have been declared. Both dividends are
payable
October 1, 1959 to holders of record

N.

Brooklyn,

dividend

(55c)

ap¬

of

fiftyfive
share was
payable September

cents

declared

per

24, 1959, to stockholders of
record

of South Africa non-resident shareholders
tax at the rate of 6.45% will be deducted.

ness

By Order of the Board of Directors,
F. A. SCHECK, Secretary.

at

the close of busi'

September 10, 1959.

John G. Greenburgh
Broadway
Treasurer.

61

New York, New York, July 29, 1959.

New York 6, N. Y.

^

September 4, 1959.

Southern

The stock transfer books will remain
open.

Louis T. Hindenlang

July 22,1959

to

amount

proximately $1.40 per share, subject, how¬
ever, to any change which may occur in
the
rate
of exchange for South Africa
funds prior to September 1, 1959. Union

COMPANY

quarterly dividend of 75<f

Deposit Agreement dated June 24,

1946.

A

A

terms

Sinclair)

Railway

Secretary and Treasurer

j*/

Company
DIVIDEND

DIVERSIFIED FOREST PRODUCTS
Nibroc

Towels

ond

Wipers,

Bermico

Engineered Pulps—and Papers, Veneer, Ply¬
wood, Lumber, Onco Innersoles for Shoes,
Chemicals

A

COMMON

NOTICE

DIVIDEND

New York. July 28th, 1959.

Pipe,

A dividend of Seventy cents

share

on

(70*)

per

Railway Company has

today been declared out of the surplus

quarterly dividend of 15^ per*

share

on

the Common Stock of this

Company has been declared pay¬
able Sept. 1, 1959, to stockholders
of record

profits

net

of

ended

year

the Company
December

September

for

31,

on

the

the

on

Com¬

business

on

of

Stock, payable Septem¬

of record at the close of busi¬

record

the

at

mon

ber 15, 1959 to stockholders

August T4, 1959.

August 7, 1959.

ness on

S.W. SKOWBO
Senior Vice President and Treasurer

Berlin, N.H.

Corporation's

to

close

of

stockholders

15,

1958,

1959,

J. J. MAHER, Secretary.

payable

close of business

the

at

of

fiscal

115

On July 22, 1959 a regular
quarterly dividend of 75"
cents per share was declared

the Common Slock without par

value of Southern

STOCK
No.

August 15, 1959.

SINCLAIR

July 27, 1959

OIL

National

CORPORATION

600 Fifth Avenue

New York

20,N.Y.

Distillers
and

Chemical

AM ERICAN
METER

COMPANY

SOUTHERN

{NATURAL GAS

Corporation

t

INCORPORATED

ctioitiencC
A

regular

dividend of One Dollar ($1.00)

been declared upon

per

share has

stockholders of record

at

September 1, 1959, to

the close of business August

10,

July 28, 1959
©

»

of

1959

($.50)

per

Directors,

declared

dividend

of

share

stock of the

on

Vice President and Treasurer

A. T. Co.

a

fifty

£ "'5

tiff/4'''''V''"'

Board

on

on

rate

payable

1959 to stock¬

business August 31, 1959.

W. B. ASHBY, Secretary

on

has

has

in-

the Common Stock from

25 cents to 30 cents
first dividend at the

been

a

share. The

new

30 cent

declared payable

September 1, 1959

holders of record

A regular quarterly divi\ dend of 50 cents
per share
has been declared on the

on

to

stock¬

August 11,

1959. The transfer books will not

■

■

Common

Stock

of Southern

f Natural Gas Company, payable
September 14, 1959 to

■

S stockholders of record at the
5 close of business on August
5 31, 1959.
H. D. McHENRY,

close.

Executive Vice

PAUL C. JAMESON

July 23, 1959

i

Directors

quar¬

the capital

company,

dend

of

regular quarterly divi¬

cents

13300 Philmont Ave., Phila. 16, Pa.




:

| Common Stock Dividend No. 82
■

holders of record at the close of

Harry L. Hilyard
,

Board

July 23,
terly

September 15,

1959. Checks will be mailed.

_

The

Birmingham, Alabama
8

STOCK

DIVIDEND
The

creased the

the Common Stock of The American

Tobacco Company, payable in cash on

COMMON

notice,

216TH COMMON DIVIDEND

COMPANY

:

INCREASED

■

■

Treasurer

Dated: July 25, 1959.

President

The Commercial and

Financial Chronicle

1959

Thursday, July 30,

...

(456)

44

BUSINESS BUZZ

EVENTS

on.

•

•

Investment

In

from tbe Nation's

Field

n

You

Interpretations
Capital

Behind -the-Scene

COMING

6-7,

Aug.

Bond

Colo.)

(Denver,

1959

Club

25th an¬

Denver

of

niversary dinner and field day
be held jointly with Denver

to

C.

D.

WASHINGTON,

expanding number of corporate
pension funds, with no obliga¬
tions payable on demand, are
side-stepping the state and local

government bond markets and
centering their investment in¬
terest on common stocks. They
this

doing

are

a

as

Relatively
stale-valued
mainstay of pen¬

The

—

hedge

ment
have

portfolios, because invest¬
managers
on
the whole
concluded that asset values

bonds are,

ment

Department
of Labor, traces the growth of
the pension tru^t funds and the
economic ramifications sur¬
rounding them in an article in

out by

United States

"Monthly

of

issue

current

the

Labor Review."

from

1951.

since

been

has

There

switch

a

marked

bonds
to
stocks
Both
government

and corporate bonds
combined declined from 77% of

securities

held

assets

all

the

by

pension

in 1958.
In the
same
period, the percentage of
common stocks rose from about
62%

to

funds

12% to 27% of assets.
the Department

While

published

bor

of La¬

article

this

by

Assistant
Professor of Finance, School of
Industrial Management, Massa¬
chusetts Institute of Technology,
labor and labor legislation were
in the news. For instance a new
conservative
labor-reform bill
has been unveiled in the House.
It is expected to have the sup¬
port of Southern conservatives
Republican conservatives.
Meantime, the House Labor
Committee has voted out a bill
different than the one passed by
the Senate in April.

and

Roscoe

Still

others

with

a

Pound's Tract

front in the
Congress and
have
been
presented
new
booklet declaring
Capital,

that labor unions

should be sub¬

to duties and

ject

responsibili-

ties^under law the same as

other

monopolies enjoying franchises
and privileges. The recommen¬
dation by Roscoe Pound, Dean

of

JEmeritus

the

Harvard Law

School, was published in a 61page booklet by the American
Enterprise
Association, with
headquarters in Washington.
From

still another quarter

a

"spokesman for the Chamber of
Commerce of the United States
described
the
House
Labor
Committee bill, with some jus¬
tification, this way:

Committee
has offered the American peo¬
ple a bean-shooter with which
to defend themselves against a
"The House Labor

predatory wolves, and
like Uncle Remus'
Tar Baby, are crying: 'Oh, no!
Don't turn that terribly weapon
the

of

wolves,

against us.'"

terest

spokesman,

legislation

that

will

face

this

Congress.

Unattractive

But back to the meaty

invest¬

which the Depart¬
printed: Assist¬
ant Professor Andrews of MIT
said the shifting from bonds to
common
stocks by trustees of

ment article,
ment

of

Labor

pension funds, was designed to
preserve
-funds in

have

the health of pension
a rapidly shifting fi¬


nancial environment.


yield

Club.

government

local

and

"And I

stocks

to

There is no

permit seg¬
regation of pension fund money
from general assets, presumably

York legislatures to

cash. Some
pertinent
observations
growing out of the research by

pected demand for

include these:

Mr. Andrews

ance

Pension trusts, unlike most

Impact on Security Markets

fi¬

(except in¬

institutions

companies)

portion

substantial

pension assets
by
trustees

law in effect

invest

up

assets

in

to

of

35%

is taken to
mean that up to 35% of a dis¬
cretionary trust may be allo¬
cated

generally

to

fund

be
in

traded

and

lifted

sbroad will ques¬
ability of the American
government to properly manage
our
fiscal affairs
without re¬
sorting to the printing press.

investing

[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.]

000,000 in a single quarter. Thus,

Increased

in

have

costs

are

employee

ties to change more

almost sure to
or
later
for

pressure

than $100,-

ex¬

panded pension benefits. There¬

With Shearson,
(Special to The Financial

Corporate

increased

more

of the pension portfolio to

which

stock,

common

in

rise

will

pension

Professor

says

on

portfolio

will,

40

over

raise benefits by

corporate

the

one

of the power of in¬
creased earnings is that an in¬
crease of 1% in the return on a
example

decrease costs by

funds

is

the

of the funds and

commodity prices increase.
MIT

bond

Nevertheless,

is as¬
value as
it

rate

of

under

Hammill

10%.

previously

made

their bond acquisi¬

tions second only to that of

Stock

York

their emphasis

has

&

Co.,

of the New

Exchange.

He

was

Lynch,
& Smith, Incorpo¬

with

Pierce, Fenner

La

South

208

Salle Street, members

rapid growth

bonds

Merrill

Hotel.
Oct. 22, 1959
Ohio

meeting.

.

'

Oct.

1959

25-28,

f

4

(Miami Beach,

"

Fla.)

■

Bankers

American

Association;
;1

Annual Convention.

National Security Traders

Asso¬
of

Convention

Annual

ciation

Fla.)5

(Boca Raton,

Nov. 1-5, 1959

the Boca Raton Club.
Nov. 29-Dec.

4,1959 (Bal Harbour,,

Investment Bankers

Association

Convention

Annual

at

the

Americana Hotel.

April 6t7-8, 1960 (Dallas, Tex.)
Texas

Group

of

Investment

Bankers Association of America
25th

annual

meeting

at

the

Sheraton Dallas.

Attention

Brokers and Dealers:

TRADING MARKETS

T

or

Botany Industries
Mills

about 25%. He

Indian Head

labor unions exercise
investing influence when

Official Films
Southeastern Pub. Serv.

hand, unions rarely par¬
Our New

in

ticipate
in

the

choice of trus¬
funds.

bank-trusteed

Employers almost exclusively
choice

the

control

of

FOREIGN
20 BROAD

said

shown up in

the

for

STREET

pension

tempts by life insurance compa-

NEW YORK 5, N. Y.

•

%

TELETYPE NY 1-971

LERNER & CO.
Investment Securities

10 Post Office

article, has

recent years in at¬

York telephone number is

CAnal 6-3840

SECURITIES SPECIALISTS

TEL: HANOVER 2-0050

tug-of-war

business,

Carl Marks & Co Inc.

bank

trustees.
The

(Cincinnati, Ohio)

Group of Investment!

Bankers Association annual fall

_

they have a choice in selecting
trustees for their funds. On the

tees

Super¬

annual
Diplomat

The

at

rated.

life

says

some

of

Banks

State

Chronicle)

affiliated with Shearson,

become

by

holdings

years,

about 20%,

Hammill

CHICAGO, 111.—John F. Fox has

appreciably.

benefits can be
financed in part by earmarking

fore,

Association

of

Fla.)

quantitative terms, it is un¬
likely that pension funds are
large
enough
to
affect
the
Government
securities market

sooner

visors

tion the

stocks.

manifested

also

many

at home and

inflationary

managers

(Hollywood-by-

1959

20-23,

„

ceiling is
thoughtful people

Board, said unless the

holdings of Government securi¬

common

The

Means

Committee, Mr. Martin, Chair¬
man
of
the
Federal Reserve

that the
securi¬
by cor¬

pension
hedged

why

reasons

against
living

There

stock.

common

two

are

held

Government

porate pension funds is small
compared with the Government
outstanding debt. Such holdings
were
slightly in excess of $2.5
billion at the peak in 1955. Since
then they have fallen by about
$0.6 billion. Moreover, it has
been unusual for pension funds'

legal list.
This

of

and

Ways

House

the

the-Sea, Fla.)

the

the interest ceiling.

scrap

at

Hotel.

In a
thought-provoking letter to
Representative Richard
M.
Simpson, ranking Republican on

purchases in the securi¬
market because of the great

ties

the

on

Oct.

to the request of

not yield

convention

annual

convention

The author points out

trust's

a

not

39th

Warwick

National

volume

permits trustees to

securities

maintaining that they

are

Consumers Bankers Association

grade securities.

1950

A

funds.

trust

these

will

Pa.)

Treasury Secretary Anderson and
William McChesney Martin and

ties

of

domiciled
there, New York has the most
important State fiduciary laws
on

growth

of their

gov¬

are

fast

Exchange J

(Philadelphia,

14-17, 1959

Oct.

magnitude of these purchases
and their concentration on high

not

are

House

of pension
funds
has
led
to
widespread
concern
over
the ramifications
The

subject
to
regulations which
severely limit or prohibit in¬
vestment in common stock. Be¬
total

and
a
segment
of the Democrats
over
the lifting of the 414%
ceiling on United States Treas¬
ury
bonds. Democrats in the

portfolios.

Stock

ing at the Royal York Hotel.

Eisenhower Administration

Investments

No Curb on Equity

erned

Meantime, on Capitol Hill the
continues
between
the

battle

modes more
suited
to
pension
objectives
than are customary life insur¬

t
r

of

First Board of Governors meet®

Martin's Warning

in

investing

for

other

(Toronto,

1959

Canada)
Association

fessor Andrews.

New

and

Massachusetts

the

companies, said Pro¬

Schroeder.

Hotel

the

Sept. 28-29,
insurance

concessions from

to obtain

nies

against infla¬
danger of hav¬

hedge

Bank

of

Association

National

My Wife!"

at

ing to sell a stock at depressed
market
levels to meet a ex¬

a

—

Women 37th annual convention

shift to common

of the

cause

Know Who Did It

This is a primary

predictable.
reason

vestment

Sept. 23-25, 1959 (Milwaukee,

AU.CN.J*., 19V*

Wis.)

payments are the only

significant outflow of cash, and
they are tied to employee re¬
tirements, which are actuarially

tion.

^

.

Benefit

Thurs¬

day at Queen City Club; field
day, Friday, Kenwood Country

incentive to ac¬

no

lower before-tax

state

of

cocktail and dinner party

investment income is tax

cept the

Ohio£

Municipal Bond Dealers Group
of Cincinnati annual outing —

funds,

bonds. Therefore, pension

free,

,

Sept. 17-18,1959 (Cincinnati,

than that on fully
taxable corporate and Treasury

other

Tax-Exempts

their
investors

Country

Waionda

the

Day at
Club,

higher

whose

Field

Iowa Investment Bankers

and

tax,

income

Federal

after tax yield to these
is

(Des Moines,

Iowa)

is exempt from

them

on

Mich.

19-20, 1959

Aug.

States

sumed

William B.
Barton, the Chamber's General
Counsel, went on to warn that
the House committee-approved
measure
would
not
disturb
union racketeers, nor would it
help the working man from
gangster-type union bosses that
are getting more powerful. Cer¬
tainly labor legislation is one
of the most important pieces of
The

Clair,

corporate
and
Government se¬
curities.
They attract investors
with high tax rates because in¬
United

St,

Clair Inn and Country Club,

quality

than

on

pack

pension

the tax status of

funds.
This
type
of
bonds
ordinarily yields less before tax

nancial

another

on

Nation's

Aug. 14-15, 1959 (Detroit, Mich.)
Basis Club summer outing at St.

bonds.

Andrews,

L.

Victor

University of Virginia.

and local govin effect, ruled

state

that

1

main¬

author

the

However,

tains

9-21, 1959 (Charlottesville,
Va.)
f
School of Consumer Banking,

Aug.

lia-

fixed

parallel the
bility of the fund.

should

against inflation.
The

Group (dinner Aug. 6 at Petro¬
leum Club; field day Aug. 7 at
Columbine Country Club).

bonds are the
sion

Bankers Association

Investment

I

,

-

\"

Square, Boston 9, Mass.

Telephone

Teletype

HUbbard 2-1990

»S 69