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ESTABLISHED
IS39
^
W f
i
,V
l
,•»
;
op
1
I50O
'
,>i,iNts^PM,f^'STRATj
Reg. U. S. Pat. Office
Volume 188
Number 5764
New York 7, N. Y.,
Thursday, July 31, 1958
Price 50 Cents
Copy
a
EDITORIAL
The Business Outlook
As
r..
"No
When
with
the
is
takes
one
tenor
look
a
their almost
See Effect Upon
Us
Economy
gain"—or
It
great loss without
least that
at
Fe
small
some
of
at
Lamont
the headlines
today
The
complete occupation with the
there may
be
some
is inclined to believe that
truth in the old saying. How
often of late has there been
of the demand for
name
the
of the full
sweeping tax reductions in the
employment act? There is about
the
the central
grave
But before
gratulation,
at what is
we
we
all
may
indulge in
a
The
be duly thankful.
should be wise to look about
we
different from what
a
good
many were
us
very
advocat¬
conspicuous
of
the
a
net
expansion in the
clares
as a cure
for the recession. There is, first of
dictions
or
more
the
is
being mentioned frequently, and
now
Administration
is
urgently asking for a
/'permanent" increase in the debt limit of some
such amount, and it is being predicted that it will
be back again for a still greater limit. The size of
the deficit that is building up is in part, of course,
a result of reduced revenues stemming from the
recession itself. It has often appeared that the
powers
Sumner
wage costs as
with greater
There is
action.
♦An
page
22
stances
government's role in
is
economy
a
fiscal spending.
widespread—but not universal—agreement
ago—in July 1957. If it is true that recovery
its way, this will have been a short and rela-
a year
now
on
afforded
are
sode.
For
example, we find that
goods production has de¬
clined, v but agriculture
has
been
relatively better off than the econ¬
durable
as a whole, and that is some¬
thing which has occurred only dur¬
ing
one
other
recession
in
this
omy
century.
winter,
is turning out
to be the low quarter of the reces¬
sion, personal consumption outlays
Were only 7/10ths of 1% below the
all-time high of the third quarter of
1958. And by the second quarter of
1958 personal consumption expendi¬
tures had risen to only a shade below
peak of the third quarter of last year.
.
In most recessions agriculhas been one of the first seg¬
ture
ments
of
the
feel
the
The present recession's limited
na¬
a
McDonnell
A.
after the recession of 1954, we experienced
durable
our
We
history.
boom
goods
consumer
in
had
consumer
a
one
of
the
eapital goods boom in
substantial housing boom, a
a boom in new
Continued
by
Dr. Slichter before
the Economics-in-Action
University of Wisconsin, July 1, 1958. In several in¬
1 have been substituted by the author.
*An
address
by
Mr.
STATE and MUNICIPAL
McDonnell
before
the
BONDS
GRINDLAYS
BANK
LIMITED
26 BISHOPSGATE, LONDON,
Public Housing Agency
Bonds and Notes
E.G2
1
BROKERS
•
SQUARE, S.W.1
54 PARLIAMENT STREET, S.W. 1
DEALERS
15 IROAD STREET, NEW
CABLE.
YORK 5, N.Y.
•
TANGANYIKA, ZANZIBAR, UGANDA,
014-1400
Bond Dept.
Teletype: NY 1-708
Net
Distributor
To
T.L.WATSON&CO.
ESTABLISHED 1832
Members
New York Stock
Stock
Exchange
Exchange
STREET
NEW YORK 4, N. Y.
FIRST
I
.
"
<SoilUw>€At COMPANY
Active
Dealers,
Markets
Banks
BANK
ADEN, SOMALILAND PROTECTORATE,
j
Maintained
and
Brokers
CANADIAN
CANADIAN
SECURITIES
Municipal Bonds
BONDS & STOCKS
4
for California's
"
' '
DALLAS
,
PERTH AMBOY
'
\
Expanding
Canadian Exchanges
CANADIAN
Economy
DEPARTMENT
MUNICIPAL BOND
DIRECT VIRES TO MONTREAL AND TORONTO
Goodbody
&
Co.
MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT
f
Chase Manhattan
Teletype NY 1-2270
25 BROAD
,
THE
Commission Orders Executed On All
-
American
-
NORTHERN AND SOUTHERN RHODESIA.
Dealer
4
i
■4D1A, PAKISTAN, CEYLON, BURMA, KENYA,
EXCHANGES
TELETYPE NY t-ZUX
COBVRNHAM
.
UGANDA, ZANZIBAR A SOMALILAND PROTECTORATE
Branches in:
OF NEW YORK
Burnham and Company
YORK ANO AMERICAN STOCK
;•
BOND DEPARTMENT
Bankers to the Government In: ADEN, KENYA,
THE FIRST NATIONAL CITY iank
MEMBERS NEW
i
London Branches:
13 ST. JAMES'S
BANK
• -
Credit
Head Office:
if.
UNDERWRITERS
CORN EXCHANGE
Underwriter
Farm
AND
•
CHEMICAL
f
Sixth
State, Municipal
Almaigamating National Bank of India Ltd,
and Grindlays Bank Ltd.
HAnover 2-3700
ST.,N.Y.
22
page
and
OVERSEAS
NATIONAL
Securities
30 BROAD
on
District, Production Credit Association, St. Louis, Mo., July 16, 1958.
"'Securities in Registration" Section, starting on page 30.
U5 BROADWAY
HEW YORK
I
NORTH LA SALLE ST
CHICAGO
Doxunox Securities
Grporatioti
40 Exchange
Place, New York 5, N. Y•
Teletype NY 1-702-3
WHitehall 4-8161
'
greatest private
and
durable goods and
complete picture of issues now registered with the SEC and poten¬
Municipal
department
<
ture and its mildness are particularly
significant in light of the fact that
W.
of
U. S. Government,
bond
to
economy
impact of hard times.
later data than July
tial undertakings in our
'
tively mild recession. But it has been
an extremely uneven economic
epi¬
in
telephone;
:
NOW IN REGISTRATION—Underwriters, dealers and investors in corporate
SECURITIES
State and
sum¬
address
Group at the
on
securities
DEALERS
spite
after the
have reached the bottom of the recession which
we
began
the steadiness of personal income and
personal consumption expenditures, many businessmen
Continued on page 26
In
that be had assumed that the boom and
Continued
H. Slichter
last
weighs
Singles out mounting
serious problem, fears dollar depreciation
during the recession has been the steadiness of personal
income. As a result of the stability
of personal income, the recession saw
scarcely any drop in the total volume
of
personal consumption expendi¬
tures—though there was an appre¬
ciable drop in the buying of many
kinds
of
consumer
durable
goods.
But in the first quarter of 1958,
which, in accordance with my pre¬
all, the budget situation. A deficit of $10 billion
economy
extensive revision of the
an
.
ing
States
doldrums have been torn off the calendar.
and, at the other
characteristic
United
agriculture is urgently required.
personal income's performance for saving us from
hardship by offsetting marked retrenchment reac¬
most
the
Referring
to agricultural sector, Mr. McDonnell attributes
part of
farm problem to past governmental mistakes and de¬
that
great deal of self-
actually going on—much of it not
should be
mer
1. Business and Government's Attitude Toward Recession
was
First National Bank in St. Louis
Commerce of
variegated economic trends and concludes that, with
most of the trends becoming favorable and
along with
anticipated increasing government expenditures, there
than
more
of
the
personal income's
extreme, the government's minimum policy of
figure has been pushed into the back¬
ground. For all this
in
wages
tion of businessmen to this recession
projects. Various other New Dealish
burlesque in which Mr. Goldfine
Finds the latter is
credits
proposals, too, have not been often heard of late.
Even
of
Chamber
St. Louis banker and nation's business spokesman
compensated by its
tendency to limit the drop in spending and employment
during a mild recession. The well-known labor economist
disappearance of demands for various
same
make-work
instrumental role
times.
further repetition
a
University Professor, Harvard University
stabilizing steadiness during the recession prompts Dr.
Slichter to examine and explain the American
wage sys¬
tem which, he
finds, causes rising wages in the face of
falling labor demand and creeping inflation in good
Middle East and their lack of attention to anti¬
recession programs, one
President,
By SUMNER H. SLICHTER*
old, old adage.
an
By WILLIAM A. McDONNELL*
Chairman of the Board,
DEPARTMENT
Battk of America
NATIONAL
SIVVnos ASSOCIATION
300 Montgomeiy St.,
San Francisca, Calif. •
■
*
2
The Commercial and Financial Chronicle
(402)
The
Brokers, Dealers only
For Banks,
it's
important
reach
to
broad
a
in
markets
active
to
(The articles contained in this forum
hurry,
a
nationwide private
wire
combined with com¬
plete OTC facilities, enables
you to get the best possible
coverage of the markets you
system,
want.
for favoring
reasons
they to be regarded,
are
as an
offer
.
,.
rf
American
ject
I
Exchange
BOSTON
Private
Wires
CHICAGO
•
PHILADELPHIA
SAN FRANCISCO
•
Principal Cities
to
I
.
who
have
to
fortunate
been
buy into
this
deemed).
years.
been
While these profits have
substantial, there remain a
under
and
lease
to
by
200 ()0
York
New
Stock
Stock
American
Exchange
Exchange
with
was
ment of
terest, approximately $567,000 re¬
mained
re-
debt
for
.
tion.
due
to its
high rate of
paid
being
off
in
the
structure
heart
of
the
is
in
situated
Grand
the well-known Hotel
Central
months.
year.
It might be worth
fund
reserve
write
Yamaichi
Securities
of
10 years or so
New
specula-
more
>:X i
Company
York,
in
Affiliate
interest
v e
has
developed
the
stock,
^ either in NZ
;;;•(ticker sym¬
bol) or in St.
Ino.
of
Yamaichi Securities Ce., Ltd.
y
Tokyo, Japan,
v
Brokers
&
Investment
Bankers
:
111 Broadway,N.Y.6 COrtlandtT-5689
Louis-San'
•
Francisco
Victor
H.
Mardtin
Frisco's
ownership
shares of the
be¬
common,
of
cause
of
the
Grand
the
NDur-Hauon
New
York
voii^orio
are
RnilrlinfT
^7.;
A few
rihi
the
1
of
ot
city's leading hotels, including
renowned Waldorf-Astoria. In
INVESTMENT TRUSTS
addition,
ern
of the city's modbuildings built during
many
office
the past decade are located
nearby
Avenuesf'T'he
!•
,
that
Z
famn
$5,000,000
and could
vears
the
in
and
of
the
' 500,258
shares
1,000,000
LAMBORN & CO., Inc.
89
of
WALL
STREET
NEW YORK 5, N. Y.
three in-New
Mex-
SUGAR
Raw
—
Refined
Liquid
—
Exports—Importe—Future$
5
f
°f
?
.
u
holders
j
^Mohave
aI*J
TracF'/ to
acres
aTrust
®. jjj ;Jfnni7L
™
.
£ 'wf
ot
4i
j
nn7, :
w^?ern P?os"
th
M,'P?r
land1 to.the Western1 Frog-
Th'e
balance of the $300,000 sale price
being payable in 10 annual instalments
beginning in
Sr D®ginnil\S ln.
at
1Q59
of
the
onlv
one
annual
renort
-j
(whose fame and-success
of
cost
about
share
based on current prices of about
$1 060 or a $1,000 second mortgage
a
$3
°to
per
for
third 'mort-
$1,000
a
himself
is
is
one
of
the most useful tools in
been
with
PresWen\-
Mex
is
an
So
it's
new
smart
customers.
to
place
almost
T. W
headauarteis
N
securing
accord-
due
entirely to "Patience").
bond with 20 shares of stock and
$i,090
Advertising
New Mexico and Arizona Land
issues
tt
S6C0?f an<J. th"-d mortgage units head of the Frisco System. One
^oald. bonds th?.fu" »)nnctlpal
0f theirr?ceiYe and hold the stock NZ director, is Roger W. Babson
at
DIgby 4-2727
since the end of 1957 the
Lsconveved 96 288
P?,
?S
annu?A icpon.
noiaers oi ine President Clark Hungerford is also
the
,v
.
th
yeais ano couia, at sucn
event
Imlicvof
rLhts
comDany
such
at
time, be economically refinanced.
the United Na-.Tn
Tnrtnr
./Rnckefell^
t^etooment and vhriiialfv7^?
aeveiopment anq virtually all
worirt
down
next two
a
^
writer, the
unortgage^debt. shouW be
to about
°P»nlon
ontrre
Ter-
Central
Haven lailioads.
blocks distant
tinns
Central
New
cash
not
$500,000,
paid off, is available in the event
refinancing.
Commodore,
't
d
men-
a
needed after the bonds have been
ZrfSmnS
of
some-
a
tioning at this point that
of
and
The additional income pos¬
or
0f2
^932°^
past
With earnings increasing
stands
COMPANIES
Call
7:
■
information
current
.
•
^nof
oc-
what larger percentage of the debt
should be paid off in the next 12
the
minal
INSURANCE
In the last
\
fll
regards the location of the
RH 83 & 84
PENSION FUNDS
•
,
.
the continued strong
VIRGINIA
Telephone Milton 3-2861
For
,
in the
m e
mortgage bonds aie outstanding.. .
annual-rpnorf
Over the past 12 months the sec- th 't th
COmpanv
owned in
ond mortgage bonds, ex stock, 71q 2fi4 aL nf inH snH
n
have been bought in for the sinkthl
retaining
ing fund at an average price of mineral
in land sold
the
about 75, thereby resulting in rights-to
g
d mineraYg in
more than $600,000 of total debt
District, one of the most valuable
and
important
office
building
areas in the city.
On each of the
adjacent 42nd Street corners are
CRAIGIE 8 CO.
t i
past.- ;
Arizona
demand for its space.
the
■F. W.-
Bell System Teletype:
,
_
that
MUNICIPAL BONDS
RICHMOND,
of
retirement
subject property it may be noted
CAROLINA
:,
which $311,762.50 was applied to NZ issued and outstanding. Roughthe reduction of the first mortgage
a purchaser of Frisco common
and the balance as a sinking fund acquires* one-quarter of a share
for the second mortgage bonds. No; 0f nz for each share of Frisco :
Generally, the earnings of dividends are payable on the capN
.
* _
Ar:7nna T anfl
property is not affected by ital stock so long as any of the
iand-W to •
As
NORTH and SOUTH
r
rent,
ground
STOCKS
tenants, of strong ficharacter—affords a high
degree of earnings stability and is
an
excellent hedge against infla-
cupancy and
:
JAPANESE
New
than at any
income > taxes,
and
offices
nancial
value
VIRGINIA—WEST VIRGINIA
y,':. %.■'
;
of
specula tiv e
possibilities
manage¬
for interest and retire¬
mortgage debt. After in-
$731,818
has, almost without exception, enjoyed a substantial appreciation in
Specialists in
..y'j
>
•
ended July 3l,
available after
charges,
estate
real
the frequent ups and downs of the
business cycle.
Moreover, in recent years this type of property
Since 1932
t
owner
in¬
or
branch
our
City
sponsible
such
TEL. RFctor 2-781S
v.;.'V/
by
..
120 BROADWAY, NEW YORK S
;
long-time
a
or rno e,
management
there
1957,
producing real es¬
particularly property that
maintained, is well
—
retired
are
identified
operating
Good income
located
;
1
As
In the fiscal year
has been well
IfCpONNELI&fb.
/;*•,"
ment.
quality which continue
to
offer opportunities for large
capital gain. One such situation,
in
my
opinion, is the Chanin
Building.
tate
Since 1917
bonds
shaies some
held
,
are
terests
investment
SCRIP
Mobile, Ala.
Direct wires to
Exchange
New Mexico & Arizona Land Co.
-
,
number of individual situations of
&
New Y ork
NY 1-1557
New Orleans, La.- Birmingham, Ala.
Stieglitz
Members New York Stock
fund
or
otherwise re¬
Of the remaining 268,-
sinking
of
class
the
when
securities during the past 10 to 15
RIGHTS
lUMver 2-0700
Halle. &
SSSfL"®*wl
aha^
those,
Members American Stock Exchange
$1,000 second mortgage bond are Mexic0 a d Arizona^Land ^Co
20 shares of 1he capital stock and ^ it is my considered
bpinion;
fmf.ir As thls stock 'today-offers brighter
.
York Stock Exchange
Members New
19 Rector St., New York 6, N. Y.
Attached to each publicly held
Like
Security
added'
Steiner, Rouse & Col
VICTOR H. MARDFIN
type of investment media gen- 32
erally overlooked by most inves- a!
■■
:
850 shares outstanding are pres¬
tors.
Nevertheless, these invest¬
ments have produced some of the ently physically attached to the
publicly held bonds (detachable
largest profits ever realized for
enough
Specialists in
and
moderate
indeed
are renewed or new tenants
sub-
...
a
5
Teletype NY 1-40
4-2300
my
as
_
Real estate securities have been
120 Broadway, New York
WOrth
buildings
"The
for
Best"
Member
Stock
office
Bought—Sold—Quoted [
'
.
Victor H. Mardfin, of Halle &
Stieglitz, New York City (Page
2)
-"v rr\yy.y-v
should improve asnatural
present leases
o^nIw Yol^ moSp"omi-
one
F.
renta,
years> k .sf^ms
,
f
m
^
long-term lease New Mexico & Arizona Land Co.
.
,
Louisiana Securities
Bonds
Allan
Levian, As¬
Secretary, Amott, Baker
Co., Inc., New York City.
&
Secretary, Amott, Baker & Co., Inc. ing is held under
at
a
present annual rental of
$300,000. The net rentable area of
the building is 635,000 square feet
which is presently rented at an
Chanin Building (N. Y« City)
Bonds and Stock
average rental of about $5.35 per
square foot.
Considering the high
A^one who lias
rental value of the street level and
the study and sale of real estate
tower space, the present average
,
(N. Y. City)
—
sistant
Members New York Stock Exchange
New York City
)■/'
,
Alabama &
The land under the build-
Asst.
nent
Established 1020
Associate
be, nor
sell the securities discussed.)
to
(P2)
T
Corporation
to
intended
not
are
bonds.
ALLAN LEVIAN
and real estate securities for more
New York Hanseatic
Chanin Bldgr.
particular security*
a
Participants and
Their Selections
and Stock
of
you'll find our large and ex¬
perienced trading department
can be a big help.
Our
participate and give their
you
range
Thursday, July 31, 1958
This Week's
Forum
A continuous forum in which, each week, a different group of experts
In the investment and advisory field from all sections of the country
Try "HANSEATIC"
When
Security I Like Best
....
Ca-
your
in Albu-
Nz'
advertisement in
Vice
onlu"salaried
and^
long
famous FUth Ave-
THE COMMERCIAL
sibilities through the sale of
Put
impoitant
post-war
construction
in the area has attracted
many
new and
prominent business firms
AND
Fn^h^immedtate'area "The'all" Th' Val)Ue
and
worthy
Call
Options
are
of investigation.
representative
of
A
firm
our
f
will be
subject
glad to explain the
to
those
who
are
interested.
imurtrta^
to the district and
developed sub-
stantially increased renting activity for the better buildings in the
.'Vicinity,
including
the
Chanin
Buildmg.
Present
capitalization
of
the
Chanin Building consists of a first
Ask for Booklet
on
Hon
to
Use
Stock Options
mortgage bond issue of $1,899,000
(held by Metropolitan Life), a sec-
Ul1,?™
068,600,
issue
Filer, Schmidts Co.
/
Members Put & Call Brokers <fc
Dealers Assn., Inc.
ISO Broadway, N. Y. 5
BArclay 7-6100
gagte ^on<t issue of $2,a
third
mortgage
original debt of $14,500,000 which comprised $6,500,000 of
publicly held first mortgage bonds,
$3,000,000 of publicly held second
an
mortgage bonds, and
publicly
held
retired.
held
Once
the
has
debt
capital
.'
been
oaid
?hares
considerably
should
off
be
than
more
market price.
investment
rent
publicly.
the
worth
the
cur-
Regardless of
which
is
selected
a
handsome profit seems inevitable
to the buyer of these bonds and/or
stock
years
over
the next
conceivably
100%' and
mo™ if
two
^
.
«
,
mortgage
planning
with
^
mnrh
as
are
thp
situated
units.
their
mnin
.
as
bought
s
-
somewhat less for the
conservatively
three
the thfid mort-
gage units or common
a
to
For
security
7r^ron^f??
^
continue^
"1S
r'
faith
•W^1+v1'
mortgage
CHRONICLE
the
m
^as apPeared in NZ annual
years, to wit.
7company s holdings, excePf. those in the Mohave Tract,
re^2,^s
are ln
the Physiographic
province
known as the Colorado Plateau.
?e°l°&ists assume that such holdings are
investors
which
yield
hydrocarbons
else-
look.
Place, New
York 7
N. Q. B.
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
19"Year Performance of
35 Industrial Stocks
where in said province, and that
geol°gic structures of techonic and
J5 erosional origin are present."
buying
fccent on caPltal
Park
underlain by sedimentary
more i>edS correlated to geologic strata
second
25
speculative possibilities (Prpbabil*tles' to°' fe. h?pe) of NZ stoc^
be™uusl ot 3Ust, ™.e Pai>agraPh
Another phase of President Hun-
gain' the securities of the Chanin gerford's remarks' in his annual
$5,000,000 of Building are well worth a second reports that - has ; impressed the.
third
FINANCIAL
.,
are
bond
of
$2,422,500
and
387,850
shares of capital stock. The existing debt of $6,390,100 compares
with
°f ?h°Ut $-(7 Pfr fharf;has a reputatioufor hfs ability to
The value of the equity stock will write tough—"SOB"—leases,
continue to build up as the bonds
Continued
POLDER
National Quotation Bureau
46 Front Street
on
page
16
ON REQUEST
NewYoot4,N.Y.
Volume 188
Number 5764
Selecting
.
.
Commercial and Financial The
Chronicle
.
(403)
index
Growth Company
a
By DR. ROBERT JACQUOT LEE*
Santa Barbara, Calif., and
A
stock trader
solely for his
(1)
defining the words, growth, and industry, in
the commonly used descriptive phrase, growth
industry; (2) the
essential ingredients of growth; and (3)
feasibility for indi¬
viduals and groups within a community to provide difficult
to get financing for smaller successful
companies which may
be the growth firms of tomorrow. Dr. Lee admonishes investors
American Wage
the difficulties of
not
aware
and
unless
invest
to
prepared to lose their
of risk hazards
groups
which not
can
only
mmmmm
and
money
—Sumner
Selecting
System: Its Effect Upon the Economy
H.
Slichter___
—Ira U.
Cobleigh
•
____i--
4
6
He criticizes investors who
on
a
are
obsessed
The 1958
by
E.
Bent
investment.
Truly growth firms
mobile, with supe¬
Crop Outlook—Roger W. Babson
What's Ahead in Life Insurance?—Carrol M. Shanks
We like
grow.
growth in many different ways.
We like physical growth: we want
w.
...
children
our
!
...
ii
to
grow
x
in
stature.
We like spirit-
ual growth:
;
want
we
■
our
spiritual
j
val-
f
t
churches
;
develop and
aid in enriching our lives
|
■
'[
and
of
the
R.
Jacquot
want to develop
Lee
our
enterprises to ex¬
want to ascend the pro¬
motional ladder within
busi¬
our
ness organizations.
We like civic
growth: we want the communities
in
;
:
which
live
we
to
and
grow
prosper.
j, ural desire for
The
is
it
one:
growth is a nat¬
embedded
,
within
rr
„
-x
the laws of nature, To grow is to
live; not to grow is to die. The
,
grass and the flowers,
and the trees around
the shrubs
us
clearly
-necessity for growth.
jFor as long as they continue to
grow they are fresh and vital; as
; growth Stops, life stops; the end of
growth is but the prelude to death.
(
Show
want
r
t
to
through our own
personality, and t h rough the
groups with which we work and
the community and area in which
we
live.
Instinctively, we know
„that business growth and corngrow
;
One
historian's defi¬
Investment
REEVES
Com¬
14
*•'
\
15
'*♦
t!«
'■<
»*,.
•
'
; CINERAMA
'!
<"/
James D. Marshall Forecasts Record
High Construction in 1958
hUl Jli
15
Firmer
Wo
ufanT ormutii
is
that
it
is
time.
Current
it
is
an
industry
better than
done
that
most
July
"Survey
of
Business"
J.F.Reilly&Co.,Inc.
18
in
Ralph Fordon Offers Tongue-in-Cheek Investment Glossary
(Letter to Editor)
1825 and 1958
Then
and
(Boxed)
Now!
Spokane Stock Exchange
21
1
commtmitiesHn which to live and
'•
work
and
play and raise our
children.
To - have
our
growth
the
of
29
Epsco
Regular Features
As We
Chemicals
ics—two
■■■',
.
r
•
communities
.
know
we
that
^ must have growth industries;
we
:
Witco Chemical
17
Pacific Uranium
40
6
8
Investment
Recommendations
Einzig: "Economics of Disarmament"
con-
versely, industries—to be growth
that
*Prospectus available
Chemicals
Indication of
Mutual
singer, bean
Business
Activity
&
HA 2-9000
of chemicals
Notes
News About Banks and Bankers
Direct Wires to
19
Wilfred
Governments
May
5
___—
Philadelphia
we
of'
us
prob-
have
industries—must
'
communities
in
which
growth
to
make
their homes.
»An
Our Reporter's Report
Public
35
Utility Securities
by
Dr. Lee before the
Development Con-
Usually
Railroad
pictured
we
23
______
United Western Minerals
Securities Now in
Prospective
Bunsen burner, with
gases
and vapors swirl-
Securities
Security
Offerings
Salesman's
but
even
a
professional
chemist WOUld have difficulty exContinued
ference, Jefferson City, Mo.
The Market..
on
page
The
and You—By
.
Wallace Streete
Industry
PREFERRED STOCKS
Published
Twice
1
'
Weekly
40
Reg.
25 BROAD ST., NEW YORK
25
_
_
_
B.
_
U. S.
DANA
.
25, 1942, at the post office at New
York, N. Y., under the Act of March 8,1871
ary
.
York 7, N. Y.
to
9576
_,A
.
t
.
„
SEIBERT, Editor & Publisher
SEIBERT, President
Subscriptions
pan-Amerlcan
i
Dominion
Thursday, July 31,
1958
-
Nashville
Chicago
Schenectady
,
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Glens Falls
Worcester
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corporation
and
Other
Chicago
city
news,
Offices:
3,
111.
♦
135
news,
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clearings
etc.).'
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and
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(Telephone STate
INCORPORATED
39
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Every Thursday (general news and advertising issue) and every Monday (complete statistical issue — market Quotation
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Prospectus
Remtettd M second-class matter Febru-
_
HERBERT D.
*
Company
Patent Office
Park Place, New
REctor
Yonkers Raceway Inc.
Copyright 1958 by William B. Dana
>
'
FINANCIAL CHRONICLE
-
Members New York Stock Exchange
Corp.*
4
Th« COMMERCIAL and
Spencer Trask & Co.
Witco Chemical
16
Sabre-Pinon
The State of Trade and
WILLIAM
Albany
Reeves Soundcraft '
27
2
20
'
specialized in
—
Security I Like Best——
Washington and You
have
33
:
Corner.
jng overhead.. Today we vaguely
Industrial
For many years we
Alaska Oil & Minerals
30
Registration
>
u
25
Securities
test tube of colored
recognize that this picture is dis-
torted,
address
State-Wide
«'
over a
nauseous
Dallas
Chicago
21
■
headed, bespectacled old man in
a
>
Los Angeles
San Francisco
Observations—A.
1-4844
Teletype NY 1-1825 &
16
Our Reporter on
f* ,tho"ght °f,
holding
inc.
40 Exchange Place, N.Y.
chemicals? A
few years ago when most
white coat.
mackie,
38
36
Current
Funds
NSTA
and
Electronics
What is meant by
12
Washington Ahead of the News—Carlisle Bargeron
em-
generati0n have changed
th
ld
*
Chemicals and
iiquid
Corp.
Thermo King
17
From
ine lace.ot.tne wona.
him
Pcrkin-Elmer
;
: •/■■■-
:■
Dealer-Broker
a
description.
thought
Cover
it-
Stocks
Coming Events in the Investment Field
electronics—two industries that in
,
Insurance
Business Man's Bookshelf
the
complex diversity of
activities and functions that they
jas't'
and
QuintaCorp.
(Editorial)
•;
Bank
electron¬
and
catchall words
brace such
defy
See It
'
fre ,^e chemicals and the elec¬
tronics.
HEnderson 4-8504
JCY 1160
Teletype:
23
25
(Boxed)
is
big growth indus¬
by any definition,
tries of today,
a
Exchange PL, Jersey City
DIgby 4-4970
in the future.
most
Two
Stock Exch.
Members Salt Lake City
do belter
to
it will continue
than
1h
in
$750 Billion Debt
past; it is doing better than most
jn pie present; it is thus assumed
that
Envisaged
Chase Manhattan Bank's "Business in Brief" Dissects Nation's
an
widely regarded by investors as
h a V i ng
growth characteristics.
Simply, a growth industry is one
that does better financially than
most other industries; at least it
has
Conditions
One stockbroker's definition
that
is
Business
'
;
PRODUCTIONS
14
$2.8 Billion Federal Deficit for Fiscal 1958
*
•
Srt/bT'hflvfe«n2tewf52S5
•
•
industry that is considered to have
an
excellent prospect to earn a
high return on repeated increments of new capital over and extended
or
indefinite
period of
the
So it is that we want growth.
We want to grow individually. We
.
the
a
omist's definition
Dr.
well
we
With
situations,"
3%
business
our
Relations
ALASKA OIL
13
Neo-Renaissance in Europe and Its Importance to Our Future
—Karl D. Pettit__L_____—_____
economy; that is,
that is growing
j f.^11 economic
intellectual powers. We
like
growth:
economic growth: we want
we
want
pand;
Corporate
!
SOUNDCRAFT
long-term growth in excess of
of the annual growth of our
it is an industry
faster than the
gross national product. One econ¬
We
we
Nightmare—Ray R. Eppert
munity—Sydney A. Hunt
age
where
educated;
Successful
growth industry is that
an industry where the earn¬
ings and dividends show an aver¬
children
be
"growth
tact.
ine
to
nition of
u a 1 growth:
we want good
will
Management's
growth industry" was unknown.
Only recently has the term been
recognized or defined.-Many man¬
agements refer to their organi¬
as
LITHIUM CORP.
r
it is
f t
our
12
Jameson, Jr.
expressed wish will be the father
to
intellec-
schools
Industry
sometimes with the hope that the
lives
others.
like
:
Defines Growth
What is a growth industry? Only
years
thirty
ag0
the
phras(?
zations
ues to expand;
we want our
n
PAPER
directing comprehensive research programs
leading toward intelligent, planned diversification.
,
FT. WAYNE
10
Trends in Social Welfare Expenditures and
Programs
^-Wilbur J. Coben—
;
'
CORRUGATED
shown to be
rior management*
to
Telephone: WHitehall 4-6551
9
The Demand for U. S. Crude Oil—Minor S.
are
Dept.
STREET, NEW YORK
8
Textiles and Apparel Industries for the Rest of 1958
—A. W. Zelomek.
;___
v
to their investments, wake up to
poor
in chemicals and electronics
want
Obsolete Securities
WALL
99
Loans—James
obsoletes!
>
5
Today's Housing
level stuff when
cash meets your
our
Compelling Reasons to Stop Passenger Deficits Problem
—James M. Symes
are
successful community sponsorship
benefit investors, but also the community
find themselves with
all
It's top
3
Smith, Kline & French Lab., Inc. for Stockholder
Tranquility
involved, and points out that individuals
growth and, in holding
We
THE SUMMIT
Cover
Growth Company—Robert J. Lee.
a
juw couf/jrr isMmmMm
Cover
pursue
may
and the nation.
Page
The Business Outlook—William A. McDonnell
into:
kmm
B.&
Articles and News
Eminence, Mo.
account delves
own
9
foreign
must
be
subscriptions and advertisements
made in New York funda.
.
Direct
PHILADELPHIA
Wires
fd
SALT LAKE CITY
V
4
The Commercial and Financial Chronicle
(404)
Smith, Kline & Fiench Lab., Inc.
For Stockholder
Tranquility
reduce
Enterprise Economist
While
many
viewers of,
participants in, the security
kets
are
ever
dazzling
kense
on
aiiu
a
performer—another LuLo-
or
rillard
months
and
larger
a
a
and
and
Dexamyl
—
all
later came along
Thorazine,
and
disorders
mental
lor
selling tranquilizer
hospital use. Com¬
pazine is a milder compound and
broadly
effective for lessening
is
durable and
,
.
today.
the
in
in¬
growing equi¬
ty, that, like
a fine brandy,
is good
orig¬
inally and im¬
CobJeigb
proves
with
age.
Such a
"
long-term equity is SKF, our topic
lor
Financial
American
largest
items
These six
tension.
nervous
a
has grown steadily from
small shop to a wholesale drug
and, during the past 30
it has become one of the
most eminent drug manufacturing
firm;
years,
companies in the world, grossing
around $120 million a year.
The rise of SKF in the past five
years has been quite remarkable—
from 1953 sales of $53 million to
$115V2 million for 1957; and from
a net of $5 million in 1953 to $20V2
million
such
a
for
1957.
To
account
rate of expansion in
for
profit¬
ability, let's take a look first at
the product-mix. •
Twenty years ago SKF was do¬
ing a big wholesale business in a
broad
line
of
drugs
(some
500
items in all) many of them highty
competitive and with correspond¬
ingly low profit margins. In the
late
30's, however, under the
presidency of Mr. C. Mahlon Kline
(president from 1921-1951) a deci¬
sion was made to drastically re¬
duce the line, and to concentrate
on the development and merchan¬
dising
of
trademarked
ethical
drugs,
where
the
market
be less competitive and the
margins
dom
of
more
would
profit
attractive. The wis¬
that
policy decision is
amply demonstrated by the fact
that today there are only 52 prod¬
ucts, and for 1957, net earnings
were
17.8%
of sales.
central
nervous
system
of
homo
ditures
will
around
be
financed
were
there
is
internally,
nothing
and
horizon
the
on
in
indicated for
combination
zine
1957
Darbid,
peptic ulcers, and a
performance, and ac¬
counts in part for the solid de¬
mand for SKF common which has
were:
that
of
and
Combid
called
Compa¬
(smooth
the
mind, and smother the ulcer); and
Sul-Spantab a slowly disintegrat¬
ing sulfanomide tablet. For 1958,
product additions include V-Sorbin
compound to accelerate the
a
absorption
of Vitamin B-12 into
the blood stream; Termaril which,
two-thirds
over
of
the
time
We neglected earlier to mention
that
has
SKF
subsidiary
Eastern
mills
of
wholesale
a
doing
section
A. Voset
owns
business
drug
in
ute
trademarked ethical
drugs
laboratory and manufac¬
turing level is not enough, how¬
ever.
All
these
might
"waste
their fragrance on the desert air"
if
it
not
were
chandising.
for
In
effective
this
mer¬
department,
too, SKF has excelled.
Since doc¬
the
prescribe
decided to
tors
are
drugs, SKF
beam
its
ones
years
sales
who
ago
approach
heavily
the medical profession. Thirtynine years ago the company began
110 more than 5%
earnings of the parent com¬
pany.
There
always
that
is
optimistic
arises,
selling
bias.
financial
for
casts
to
these
have
medical
programs
reached
400,000
a
doctors.
conventions
and
are
believed
to
total
audience
of
Following
along
this line of concentrating on doc¬
tors the company is, this year,
about
* BROKERS * OEAURS * DISTRIBUTORS
against
SKF record
The
forward
motion
is,
allocation
way
products
have
-
We have ob¬
above
-
average
for
phenomenal
research, and
sales results of
the
new
created
thereby.
We
consistently excellent
seen
corporate
management
for
dec¬
ades, highly effective selling and
a
quite remarkable carry-down
percentage of sales to net.
All
SKF has to do to continue to jus¬
tify its billing as a top drawer
pharmaceutical equity is to keep
on developing and
selling as it has
in
the present post.
Maybe 21
times earnings is a full price at
the moment, but how would you
were
to grow
rapidly in the next five years
in the past five?
We
mentioned
in
the
title,
stockholder
tranquility.
On the
record, SKF has so provided ris¬
ing earning power, market price
ed!
dividends
to
as
make
its
for
its
SKF
Thorazine.
has
not
You
don't
you're content¬
missed
a
divi¬
dend for 35 years.
PORTLAND, Oreg.
Exchange
Private leased
'
radiotelefraph
SAN
FRANCISCO
•
LOS
Jones
Foster
&
has
joined
—
ANGELES
•
NEW
YORK
•
CHICAGO
to
.V
•*
:
.
during May and June some Evidence
was
evident, however slight it was.
faltering in
the trend
which
was
attributable
The increase of
36,500 from the week before was not as large
the agency added. In the
of 1957, the total increased by 56,400 to 1,356,800.
the usual rise at this time of the year,
as
like week
Connecticut
Because
close
provided
of what
downs,
the
the
almost
Labor
number
a
third of the latest
Department
drawing
benefits
'
claims
plant
.10,400 in
by
rose
that state.
New
increase.
called temporary
'y; yV'vv
•
compensation
declined by 45,000 to 351,200
in the week ended July 19.
A Labor Department spokesman
pointed out that the drop in new claims indicated the increase in
the number drawing benefits would not last long.
/
for
The
number of workers getting compensation under the
special supplemental scheme rose by 80,900 to 335,100 in the week
ended July 12.
These are idle workers who exhausted their
payments under the old program but qualified for
payments through the recession
second round
a
measure approved by Congress.
the July
19 week, 127,400 new claims were filed under this
The Department said 45,500 of these came from Ohio,
which just carne into the program.
program.
I11 the steel
industry the coming steel price increase
be
may
smaller than had been expected.
"The Iron Age," national metalworking weekly, stated on Wednesday of this week.
It said this week it has learned United
considering a price advance of only $4
products. Earlier indications were that
States Steel Corp.
is
ton on major steel
the price boost would
per
average out to about $5.50 per ton.
The $4 increase would be about two-l'iftbs of what many steel
firms believe to be justified in view of the 26c
ment cost boost since the first of the year,
an hour employ¬
"The Iron Age" declared.
Meanwhile, the steel market has definitely turned the corner
The market improvement had been apparent even
for the better.
the
Mideast
worsened.
crisis
Thus
far
there
is
little
so-
buying, but many steel users are quietly buttressing
their inventories, just in
further
case.
that the mills appear to be playing
price situation "by ear." There is more to the long-awaited
price "clarification" than meets the eye. Steel labor costs are
only one of many factors being taken into account.
It;
commented
the
The
raetalworking weekly reports that the largest steel pro¬
smaller price hike for the reasons that
a contribution toward the light against inflation.
Further, it is aware of customer opposition to anything more than
a
nominal increase unc|er current competitive conditions, and,
lastly, off-stage government and congressional pressure to hold
the price line.
ducer is leaning toward a
it; wants to make
"The Iron Age" speculated that United States Steel could also
thinking of steel labor negotiations in 1959, when present con¬
tracts expire. A less-than-needed increase now could be used as
an argument against another steel wage boost next year.
be
Improvement in the steel order picture has come about
loo much help from the auto companies.
Detroit is
without,
holding back for the most part until its gets into production with
new models.
But steel shipments to automotive are expected to
improve gradually to
It
a
peak in late September or early October.
the past week there has been further
quickening in orders for oil country pipe and linepipe as well as
an
improvement in other products, including hot-rolled bars. A
large linepipe order totaling 490 miles has been placed and will
require about 175,000 tons of steel pipe. Other orders may be
placed later for smaller-diameter gathering lines..
reported
that
scrap
in
steel
scrap
prices is based largely
on
the belief
people that the steel market will continue to improve.
Lunsford
the
staff
of
Marshall,
Southwest
Sixth Avenue at Oak Street.
According to the 1958 Life Insurance Fact Book, ownership'
American family rose 5% to $8,300
At the start of this year, insurance covered 109,000,000
of life insurance of the average
in
1957.
Americans
Herman Raphel Opens
IS Officii Strving Investors
threat
Scrap brokers and dealers are reluctant to sell significant ton¬
nages except at higher prices.
exchanges
circuit to Honolulu
V
the cold war.'
business
a
The upsurge in
(Special to The Financial Chronicle)
B.
Honolulu Stock Exchange • Chicago Board of Trade
and other leading commodity
constant
seasonal increase in unemployment compensation claims
brought the total to 2,625,400 in the week ended July 12, the United
States Department of Labor reported.
of
Joins Foster & Marshall
CO.
Exchange
the
up
factors, but now the looked for advance after Septem¬
ber appears set to begin somewhat earlier and the feeling among
businessmen is more encouraging.
No doubt present world
tensions calling for stepped-up government defense spending and
increased military production to cope with these conditions are
bound to have their effect on a nation's civilian economy.
J
called "scare"
ers
Members
pointed
to seasonal
before
the
shareholders rather poor custom¬
8c
in
upturn
each of those years.
need Thorazine if
New York Stock Exchange • Pacific Coast Stock
Midwest Stock Exchange • American Stock
an
July -witnessed
5 years and a dividend increase in
and
Dean Witter
of
a
its
around
impressive.
We have
120% increase in gross in
a
served
as
v'f Complete Investment Service
has
Herd in the United States
however,
noted
on
direct by mail cultivation of doc¬
of
crisis
Lebanon
will remain intalct in
probably
of net
stock
the
The
In
products.
cream
state
a
world peace, but hopes presently are high that the situation will
be settled peaceably and that the alliance of the western nations
S., and
Co., manufacturer
and
such
peace-loving nations that are in a position to do so, to
strengthen their military defenses and at the same time to strive
to bring their economies into better balance.
of
U.
the
in
those
an
of
itching, however acquired
(except perhaps the seven year high, the question "Is it a buy
here?" Answering such a question
variety, or itching palms!).
is always difficult and requires a
Merely the turning out of su¬ considerable
insulation
at
herent
and the political ramifications in¬
world affairs make it imperative for
These together, however, contrib¬
will
stop
perior
Industry
J
remarkable
carried its market price to a new
amounts to 8.2% of high of 91, about 21 times indi¬
gross.
Over $10 million will be cated 1958 earnings in the order
spent this year mainly in the neu¬ of $4.50 per share. There are 4,rological, cardiovascular and mi¬ 844,000 common shares outstand¬
crobiological fields.
Among the ing (sole capitalization), listed on
newer products of this lab outlay,
N. Y. S. E.
introduced
Index
Auto Production
Business Failures
Current worldwide unrest
mil¬
principally for a new plant
for the British subsidiary, A. J.
White Co. Ltd. This outlay comes
after $22 million of. capital ex¬
penditures, for expanded distribu¬
tion and manufacturing facilities,
in the four year period ended Dec.
3i; 1957. All these improvements
as
UN*fKW*fTI*5
$3,/fe
lion
value the SKF if it
-
and
com¬
which
1957,
tors; in 1948 it started color tele¬
While many
pharmaceutical
companies went all out for sulpha
drugs and antibiotics, SKF con¬
centrated on therapeutics bearing
upon
the mental condition and
of the
together, the stimulants and the here to suggest any need for pub¬
tranquilizers, brought in 70% of lic financing for a long time.
t he 1957 sales total. Thorazine, in
Corporate practice has been to
particular, since its introduction pay out annually roughly 50% of
in .1954, has been the most dra¬ net earnings in cash dividends. In
matic single stimulant of SKF consonance with this policy, cash
profitability.
dividends
have
been
increased
Now the capacity to bring along &very year in the past five: 58%c
highly successful patented spe¬ in 1953, 931/tiC in 1954; $1.75 in
cialty drugs, such as the six above 1955; $2.00 in 1956 and $2.20 in
This
in
itself is
mentioned, is no matter of luck. 1957.
quite a
Smith, Kline & French is the
outgrowth of the early efforts of
one George K. Smith,
a pharma¬
cist who opened shop in the City It depends on reseach; and SKF is
of Brotherly Love, 117 years ago.. one of the most research-minded
Since the time of this pestle-pack¬ companies in the business.
SKF
ing pioneer,
the enterprise he spent $9.4 million on research in
founded
position
by current liabilities of only $25
- down."
million.
For 1958 capital expen¬
Benzedrine,
with
Trade
Food Price
talent in
"quieters
pioneered
scribed
seeks
vestors
SKF
Retail
Commodity Price Index
the years to come.
Compazine and
Dexamyl—tranquilizers of proven
efficacy. Thoraizine is widely pre¬
seg¬
of
ment
and
stimulants
with
a
reservoir of executive
Production
Electric Output
State of Trade
slightly
year,
it
has been consistently good.
sapiens.
Curiously
enough
the
At
the
1957
year
end, current
principal products of SKF today
are
evenly balanced between assets stood at $53 million offset
Dexedrine
day, probably
this
earnings
Steel
Carioadings
pany
stimulants;
de¬
—
livering a dra¬
matic
capital
gain in six
may
Thursday. July 31, 1958
.
The
sales and
a
new
company
mar¬
the watch for
program
should lead to expanded
marches forward to
products and rising profitability.
distinguished ethical drug
this
while
By DR. IRA U. COBLEIGH
A
adding (and training) 200 men to
its professional detail force, bring¬
ing this sales group covering the
medical profession up to a total
of-500. The training of this new
echelon takes time and money and
.
.
Herman Raphel is engaging in a
securities business from offices at
2727 University Avenue.
with
an
aggregate
total
of
$458,000,000,000.
If
life
policies issued by fraternal and assessment groups, savings banks
and the legal reserve companies raised total family ownership of
life insurance to
a
grand total of more than $500,000,000,000 cover-
Continued
on
page
28
Volume 1SS
Number 5764
.
...
The Commercial and Financial Chronicle
(405)
that
Compelling Reasons to Stop
Passenger Deficits Problem
By A. WILFRED MAY
A
GAINS TAX IN THIS MARKET
legislative attack on the
capital gains tax now brewing in
the Congress is most timely and
important. Representative Earl
new
Wilson's
12709,
M
a
last
of the tax
further
sale.
ICC
extent
of
the
valuation
and
for
re-
of 25%
introduction
in
the
at
least equal
problem, Mr. Symes
of
monetary
proceeds,
ing opportunities. Also, in the
reduce
tax
rate
of
and
imum
to
of 25%
rate
a
12V2%,
in
the
over
of
1957
apply
this
collections, to reduction
Wilson
debt.
Represen¬
looks
for
further
support to
a pending national sur¬
conducted by the Institute of
Economics of New York Univer¬
the
and
(an. institution
Alfred
P.
others),
financed
Sloan
which
to show that
by7
Foundation
is
expected
substantial reduc¬
a
tion in the tax rate on
long-term
capital gains would actually result
in a substantial gain in revenues
the
to
Government from this tax
Other
supporting arguments ad¬
thus far by the bill's pro¬
vanced
ponents
include
the
holding until
completely free him
contentions
(1)
estate
from
his capital
on
the
punitive
should
be
appreciably
re¬
duced, investors free to be moti¬
vated by sound investing policies
tax
in lieu of artificial tax considera¬
find
new
substantial
a
which
would
por¬
otherwise
its way into investment in
and small businesses, thereby
providing job opportunities; and
(3)
that
it
unfairly
penalizes
elderly
owners
of
homes
and
,
farms who need to sell and retire
into
smaller quarters.
The Crucial
rigging of the market, and at
the
same
time
bringing to the
Treasury additional tax revenues.
While these arguments are per¬
tinent, it seems to this writer that
they are now far transcended in
importance by the impact of the
tax
the
on
market.
tax
state
of
the
a
Unfortunately,
the
legislative
road will probably be barred to
attainment
lieve, that
a
"Wall
gotten
these
of
worthy
of the body
profess to be¬
capital gain is an ill-
objectives. Too
politics believe,
the
prices
many
or
Street
the
cording to investment
is
recipients
profit," with
getting away
much
too
even
comes
wealthy,
90%
as
the
And
from
some
of
those in the 70 to
who
brackets
tax
the
it is.
as
contrastingly
low
that
feel
25%
levy
"income" is unfairly favorable.
on
In any event, however, efforts like
Congressman Wilson's, backed by
academic university study, are
constructive in at least combatting
raise
future
and
present
the
above the
levy
on
pressures
capital
to
gains
of
ac¬
value
Such economic distortion
particularly
CINCINNATI, Ohio—Gordon G.
Karrick
has
become
with Westheimer &
Walnut
New
Street,
York
and
connected
Company, 322
members
of
Cincinnati
the
Stock
_
^
substantial
cash-in their paper profits.
The
investor
in
arriving
decision whether to sell
which
sizable
a
stock
unrealized
CLEVELAND, Ohio
Bray is
rence
at
a
on
appre¬
Aii
(Special to The Financial Chronicle)
amounts
which they must pay in
capital gains tax if and when they
•>
com¬
now
—
Jack J.
associated with Law¬
Cook & Co.,
1940 East Sixth
members
of the Midwest
Street,
over-all
a
deficit—for
passenger
will wreck
us
BEEN
prepare
the
support
the
bankruptcy—there
are
pelling
20th
reasons why
ficials
build
and
we
deficit
We
have
•
-
situation
IN
OUR
and
all
known
cit problem that have been made
by The National Association of
Railroad and Utility ComhiisSiondoubt, ers- But these studies have received less attention than, they
did,
no
way
railroads
have
deserve in some sections of the
am frank
country—particularly, I
to say,
in the territory served by
my railroad and in States repre¬
sented at this conference.
Now, at last, let's face it to¬
gether: the passenger railroads can
financial
our
no
longer
den
stability,
of
carry
the financial bur¬
passenger
.
and as the economy expands
the decades ahead.
now
sity of interests and good and bad
fortune
has
often
getting together
reforms.
kept
on
We had
group
a
program
a
of
way
of railroads wanted the
em¬
phasis
placed on the reform it
happened to need most. We tried
to
i(
justify this—to the extent that
nun
iiKtifipri-nn
hp
me^are
thP
urnnnrl
bv tadUton
"R.meed
"
properlv
as
in
from
us
of agreeing that'there should be reformsbut by and large each railroad or
used
is wonderful stuff.
I
said
do not
that
mean
commissioners
the
not
professional invalids.
But the
fact does remain that without this
editorial
understanding
never
there
have been public un-
money
we
to
simply do not have the
go on as we are:
My own railroad represents an
investment of $2V2 billion. By size
of investment, we are one of the
derstanding, and without public biggest companies in the nation or
understanding not enough legisla- in the world. If instead of being
tors would be prepared to vote our a railroad we had our $2*/2 billion
way. Fortunately for the people in chemicals or oil or steel or autowork for
who
,
us
and
the
.
,
people
..
,
,
a™L
climate
°
'
mobiles
or something like that, our
net last year would have been over
and the national defense.
Incidentally,
railroad claims
my
credit for the fact that for the
no
past 25 years or so it has always
stood
ready to back any and all
The reason for
our goodness of heart—
WE ANNOUNCE THAT
reform programs.
that is not
the
fact
year
that
we
have every
mr. william f, guss, jr.
You
MANAGER
OF OUR
NOW
INSURANCE
ESTABLISHED
the genuine sym¬
which the Congres¬
was
with
STOCKS
DEPARTMENT
IN
OUR
NEW
YORK
OFFICE
our
story.
76 BEAVER STREET
TO
BETTER
SERVE
OUR
NATIONWIDE
CONNECTIONS
the industry was in a
plight not of its making or of the
recession's making — but in deep
saw
unless
t 66O NORTHWESTERN
BANK
BUILDING
MINNEAPOLIS. MINNESOTA
to
Gregory & Sons
reform
permanent
regulation was
of
started, and at once. In all frank¬
ness, the reform movement is only
starting—and I
Trom
a
Conference
missioners,
W.
talk
Annual
Va.
am
that.
understands
3rd
Direct Private Wire
face
Loss Problem
First,
of
sional committees heard
Bishop & Co.
must
Correcting the Passenger
ach®3 and Pains fre?d before
public: we are businessmen,
could
we
by what I have
have enjoyed seeing
we
and
together.
$100 million. Instead, our net was
changed in time.
pull an industry apart instead
$19 million. At the same time, our
together, nothing gets accomWhat all this adds up to, I
passenger operating deficit for the
plished.
I think our industry is suggest, is this:
year was $57 V2 million.
So here
now
pulling together — and that
The public, and Congress, see at
you have a company making only
this is going to have productive long last that we should have a
$19 million after absorbing a loss
results for us, for transportation chance to serve our customers in
generally, for shippers and pas- a businesslike way — and have
*
Continued on page 24
sen&ers> for the national economy started the process of giving us
to
pathy
Members Mbluest Stock Exchange
it
these
Policy of 1940
trouble that would be
M. H.
the
reduce
service in its
present form.
■
employes, the people we buy
Second, let's face it together: so
from and their employes, the econ¬
lames M. Symes
great amount
omy generally—and the future of long as this problem persists, neiof unity
that
all of these. But up to a few years ther the shipping NOR the travellailioad men have been snowing
jjgQ^ the public would hardly have
9 public can be properly served
this year — at long last.
As you known that from the
press.
Now,
Third, let's face it together: urtknow, some of us have the passen¬
thanks to an aroused press, a lot less we do get this problem solved,
ger problem and some don't. Some
of the public does know it and the industry
cannot do the job
of us have built-in financial han¬
wants something done about it— that a growing economy and the
dicaps and some don't. Some of not to
benefit us as corporations, National Defense require of it.
us are sure at all times of a
pretty but to benefit the
public and emn0w, let's look at these three
good nest-egg of traffic, and some
ployment and business generally, things about passengers that the
aren't. In the past this wide diver¬
progress,
One
•
FIRM
com¬
reduce
our
They
PARTNERSHIP
three
regulatory of¬
must
Be-
on
the close of the war, 13 years ago.
This
has hurt our
service, our
IS
ADMITTED TO
'•
age— and by wreckage I mean
progressive deterioration and even
Another important development
'
i.
of these is the
this
HAS
•
.
.
With Rail's Plight
Masek
has
and
Aside from this danger of wreck¬
Mistaken government treatment
has kept us in deep trouble since
cur¬
Public's Growing Sympathy
e.
it
us
if it keeps up much
longer.*
been getting in the Nation's press.
regulatory problem there is.
name it, and we got it.
Mr. Jos.
of
some
so we have at last a con-
crete foundation to
and
facts
about the
but
Stock Exchange.
the
Still another important development has been the
understanding
getin^o that
are
a
three things for some time; we
jLlst haven't faced them together,
fore we had only the words—the
1 am not unmindful of the spegopd intentions, you might say—of cial studies of the passenger defi-
ing—and
hfelp
But before I
there
to
more
just about wrecked
not
fast.
sensible documents
missions.
But when its tractive effort is used
Lawrence Cook & Co. Adds
the
utility
motive power,
(Special to The Financial Chronicle)
Exchanges.
of
'
a
passenger
the Transportation
?ndiJddunhSs
investors "frozen" into their hold¬
because
of
growing
be
service onto
passenger
and the Cabinet Committee Report
of 1955. "But those two earnest and
indfvid^ah^r^
Joins Westheimer Co.
striking today, at
this advanced stage of a long bull
market, with so many long-term
ings
some
to railroad and
that raUroad
existing 25% ceiling.
social
through its insulating
from appraisal made
criteria.
rich
with
abuse in distorting market move¬
ments
>
presentations5
rent
stock
serious
at
to
get overlooked in the formal and technical
mention.
Actually, the capital gains
constitutes
look
which I will
The Political Obstacles
an
Stock Market Impact
to
tend
important
of
capital,
like
that
ent
duction
of
kind
couple of other
opposition to capital gains tax re¬
risk
would
tions, would rearrange their port¬
folios, thus ameliorating the pres¬
the present tax on longterm capital ' gains
is largely a
levy on capital and not on in¬
come; (2) that it sterilizes billions
tion
I
Usually ma'de
gains.
There is little doubt that if this
the
source.
that
his
tax
source
vey
sity
the
continued
his death will
increase
the
from
national
tative
May
mighty important over-all facts
{ and
tax-take
the
Wiltred
A.
of
ana
constantly
Century transportation.
case
statute,
max¬
point out that he does
achieve
to
measures
of advanced
age,
the tax deters liquidation by rea¬
son
of the
fact that under the
long-term
capital gains
on
from the
other
investor
an
to
schedules,
relation to other available invest¬
would
on
biggest
to
truly public-service
In plain
English, we and
have got to come to grips with
you
reluctantly supports subsidy, and suggests more rail pay and
consolidation of Railroad Express
agency with parcel post
in
or
goes
going
basis.
of the passenger business but, instead, wants.,
business a "business" by tailoring the
product to the market. Calls for reduced commuter
of the profit); such over¬
to exist either in terms
the
onto
to make the
passenger
valuation
next
local service, rates and fares, and
over
is
—
businesslike basis, and thus
more
want to get out
the
Congress,
the
jurisidiction
some
help get
require the help and cooperation of State regulatory com¬
Appreciative of belated but nevertheless better pub¬
lic and political
understanding of rail industry's passenger
number of points corresponding to
the tax liability (now a maximum
must
of your first and very
assignments
missions.
over¬
pushed in the
due
first and biggest assignments—and
to
liability attached to the
The
House this
week
SYMES*
one
justify a sale realistically
according to accepted investment
criteria, a security must be judged
as overpriced
by the full amount
we
Deficit
money-losing proposition of being forced to run many
"nearly empty" trains is said to necessitate transferring to
rents. To
intro¬
y,
JAMES M.
are
,
Well, in the case of big passen¬
ger railroads like mine, one of our
The
ciation has accrued, is confronted
with
important practical deter¬
H.R.
duced
By
How; then,
it? <
use
Coming to Grips With Passenger
President, Pennsylvania Railroad
THE CAPITAL
chance.
going tp
5
sure
by Mr. Symes before the
Railroad
White
MEMBERS
NEW
YORK
STOCK
EXCHANGE
But it is start-
Convention
of
John G Legg & Company
everyone
of
and
Great
Utility Com¬
Sulphur
BALTIMORE
Lakes
Springs,
JULY 29, 1958
NEW YORK
The Commercial and Financial Chronicle
Today's Housing Loans
JAMES E. BENT*
By
Chairman,
(Conn.)
President, Hartford
Loan Association's
and end the
home financing by
Conn., savings and loan banker charges FHA
a monopoly on so-called low down payment
to
place in proper per¬
spective our industry's role in
providing economical financing of
American homes.
last
year
to
one-
four-
family
homes
totaled
about
billion.
Savings and
$107
loan associa¬
tions held $40
billion of this
debt
E.
James
the
Bent
object
stated in the
as
charter of all Federal associations,
Is "to promote thrift by providing
convenient and safe method for
people to
to
and
save
and invest money
provide
for
sound
and
economical
That
by
financing of homes."
have supplied economical
we
home
financing may be illustrated
following data showing
the
gross return on
mortgages and re¬
paid on savings during (he
period 1943-1956:
turn
Keturn
s,
Mortgages
on
Interest
Interest
Dividend
and Fees
Only
ltcturn
Year
%
%
%
1943
5.6
5.6
2.7
5.5
2.5
•'•
■
1944.:..
.
5.5
—
1945—
5.5
5.3
5.4
5.1
2.2
1.947.:——
5.1
4.9
2.3
1948
5.1
4.9'
2.3
1949..—
1950
5.2
4.9
5.0
2.5
5.3
5.0
2.5
1952—
5.3
5.0
1953
5.4
5.0
-
2.4
5.4
1951
...
1954
1956—
is 95%
2.8
risk
2.8
7V2%
5.1
2.9
which
5.2
3.0
Loan
Analysis
Division.
Board, April 30,
Bank
We believe this data represents
equitable relationship between
our borrowing and savings mem¬
an
The difference between the
interest
paid is
received
and
dividends
(1) set aside for
against losses
portfolio
Our original
a
of
the
loan
excess
total loan.
.
1958.
bers.
is
5.1
Operating
Home
by regulation or' by a group in¬
surance arrangement for spread¬
used to
higher category
and the premium for a first class
5.6
Source:
.Federal
Whether it is done
centage loans.
for lower cost homes and
5.6
—
on a
reserves
total mortgage
composed
of
77%
con-
by Mr. Bent before Sub¬
committee
on
Housing of
the House
Banking: and Currency Cojnmittee, Wash¬
ington, D. C., July 10, 1958.
Here Is A
cannot
exceed
15%
of
the
term
and
loan-to-value ratio Was
identical with FHA Sec. 203 loans.
Wc could then make
an
80% loan
and that is the maximum 'we can
make
On
today.
the
bonds
ernment
bonds
Federal
Home-Loan
and
of
Banks
government
seek similar arrangements with
American companies.
We found,
we
however, that the insurance
com¬
panies either could not, or were
generally interested in writing
policies on loans above 80% and
not
we
think
is
a
20%
equity
sufficient
by
insurance
the
of
itself.
Last year we sought authority
for our associations to invest in ,a
private
can
fit
a
be
of
large
volume
which
of
new
housing
service ' corporation
de¬
Special Opportunity for You:
"FOR SALE"
institutions
financial
other
All
a
State chartered savings
loan
associations are given
including
and
14
associations
and
States
-authority
of
assets
of State
We
left
or
to
to
easing of mortgage terms on
by sav¬
field
ital
of
We
limited
is
yield
where
1
invest¬
amounts under Section 203 Hous¬
authorities.
the
dwelling. Despite the post-war in¬
Sub¬
flation in housing the $30,000
is still in the luxury
are
to
to those who can afford this
statutes
institutions
chartered
EVENTS
mean
should
States
Bond
One of the remarkable features
in the post-war pattern of
housing
starts has been the stability of
Denver
Rocky
-
Group IBA 24th an¬
nual summer frolic at the Co¬
lumbine Country Club.
Sept. 18-19, 1958 (Cincinnati,
Ohio)
Municipal Bond Dealers Group
annual outing — cocktail and
dinner party Thursday at Queen
City Club; field day Friday at
Maketewah Country Club.
Sept. 26,
Bond
(Cleveland, Ohio)
of
Cleveland fall
1958
Club
outing at the Cleveland Country
Club.
Sept. 26, 1958 (Rockford, 111.)
Rockford Securities Dealers As¬
sociation
annual
"Fling
-
Ding"
at the Mauh-Nah-Tee-See Coun¬
try Club.
cannot
Sept. 29-Oct. 3, 1958 (Colorado
Springs, Colo.) '
National Security Traders Asso¬
ciation Annual Convention at
the
Broadmoor.
Association of Stock Exchango
Firms
alleviate
Board
of
Governor!
"meeting at Somerset,Hotel.
Nov. 7-8, 1958 (Chicago, 111.)
areas.
this
problem
if
National
Association
of
Invest¬
ment Clubs .8th annual conven¬
tion at the Hotel Sherman.
we
permitted to make limited
equity investments Tin land for
development and sale. We should
also be permitted to make loans
on
the security
of unimproved
property that is to be developed
for home
We
government .insurance or, for that
matter, government assistance.
of
Club
Mountain
were
that any Fed¬
be
involved.
Government.
Field
Aug. 21-22, 1958 (Denver, Colo.)
Our associations could do much
to
Investment
In
housing today is finding ade¬ Oct. 6-7, 1958 (Boston, Mass.)
politan
and
pro-
COMING
soundness
we
FHA
type of housing.
facilities in the area
association is located.
our
the
insurance
of
gram
lenders'
the
opposed to extending the ben¬
efits
on
the
Under
sites.
Removal
do not look upon this program as
Edwin L. Beck
home
class and we
•
quate capital to purchase and de¬
velop sites for home building. The
years
there is no legal or
moral obligation on the part of the
Chronicle, 25 Park Pl. N. Y. 7
question the wisdom of in¬
ing to $30,000 for a single family
make equity investments in hous¬
ing or make any loans on the se¬
curity of unimproved property.
Yet one of the biggest problems
home
by enabling the purchase
of perhaps an additional 100,000
dwellings a year.
United
203
creasing the maximum mortgage
-
Moreover,
or
Amounts,
Housing
Mortgage
Section
the investment. These
factors are, of course, important
to any financial intermediary in¬
vesting the savings of individuals.
come
That does not
Available in New York City-—Write
institutions for
discretion
that
where
markets
interest
and
financing
Congress created the exist¬
funds
amount of money
our
percentage
a
the
supervisory
recommend
by
Maximum
by,
the
cases
these
make
to
limited
is
ments
most
event we
any
financing homes.
authorize
bonds issued
In
In
amendment would
one-half billion dol¬
municipalities and other political
subdivisions.
jurisdiction
approxi¬
obligations
mately half the
the purchase of
/
an
available from
equity investments in housing; 37
-States authorize investments in
State
limitation.
lars annually the
make
may
have
increase
investments.
least
tered
would
believe such
For example,
States, State char¬
their
in at
prbblem grows more, acute as we
rricive out from the larger metro¬
eral
assuming that this com¬
are
recommendation for removal of
the
to diversity
much broader powers
supervised by the Federal Gov¬
ernment, we must look to Con¬
gress for authority to pool private
assets to insure private mortgages.
Commercial & Financial Chronicles, 1914-1952
We
;
.
in
As
Beautifully Bound Set of
c/o
savings accounts.
the
ing Federal housing and home fi¬
nancing systems a quarter century
ago. - It would also expand home
to
large
particularly inter¬
ested in a $10,000 investment. Con¬
sequently, the insurance ceiling is
a block to an indirect investment
of funds
in
mortgages through
through these hearings to consider
ings and loan associations would
constitute the most important step
since
induce*
but the
ciation.
community
conventional loans written
the
main
mittee
system.
in
Our
insurance,
investor is not
each year as a corner¬
of prosperity.
There is no
sound reason why the FHA-VA In addition, our associations have
monopoly on home loans exceed¬ a stake in these communities.
ing 80% should not be broken and
As a pilot program we would
savings and loan associations given like to see the board given au¬
an
opportunity to meet the- de¬ thority, to permit Federal associ¬
mand for low downpayment mort¬
ations
to
make
limited
invest¬
gage loans under the conventional ments in bonds issued to finance
An
funds.
is
ment
and;
buying substantially in the
Phone REctor 2-9570
these
-
home and to the economy
a
(
.
Federal National Mortgage Asso¬
other hand
safely relaxed to the bene¬
the family man purchasing
requires
■
effectively compete yield-wise for
exceeding 20% of assets; in gov¬
'
stone
The system has worked well in
England.
In 1955, our National
League membership directed that
owner
♦Testimony
pri¬
,
90% for thoee in
2.7
•
and
limited
are
on
Housing
of
the
insured
mortgages committee
House
have moved up to 97% and guar¬
Banking
and
Currency
British Building Societies
(com¬
Committee
consider
anteed mortgages to 100%
authorizing
so that
parable to our savings and loan
today FHA and VA have what similar powers for Federally char¬
associations) have had with mort¬
amounts to a complete monopoly tered associations. Diversification
gage guaranties by private insur¬
on
so-called low down payment is, of course, important to invest¬
ance companies.
mortgage loans; but because of ment institutions. But even more
I
Under
the
Building Societies restrictions built into their under¬
important from the standpoint of
Act a building society is permitted
writing operations, such as inter¬ housing is the need to bring more
to
increase the normal loan-toest rate controls and other tech¬
private capital into the develop¬
value ratio if additional security
nical standards, both agencies are ment of community facilities.
We
is provided in one of several per¬
unable to deliver when the hous¬ are falling further and further be¬
mitted forms. -One form of addi¬
ing economy relies on them most. hind in producing schools, streets,
tional security permitted by the
Last year, for example, FHA and water and other facilities that are
Act is a guaranty by an insurance
VA accounted for 25%
of total a necessary part of housing ex¬
company whereby if the lender
home financing while the great pansion. As holders of 37% of the
should sustain any loss on the sale
bulk of the financing—75%—was home mortgage debt we have a
of property following default by
in the conventional column.
vital
interest in community
de¬
the borrower, the insurance com¬
velopment.
We want to be of
pany would refund to the lender
Last Safe Area to Relax Credit
assistance.
that part of the loss which is at¬
The
conventional
home
Our cities and towns, in a large
loan,
tributable to the excess amount
therefore, represents the one last part, must finance these needed
advanced. The loan-to-value ratio
remaining area where credit terms •facilities by borrowing in the cap¬
5.5
1955
is to be able to make higher per¬
the other, the
represented by
VA.
and
associations
.
ceiling presents no
problem to the great majority of
our members. It is an impediment
to the large investors such as the
pension fund trustees. We cannot
:
2.3
194G
.
(2)
savings
Federal
of
powers
loan
by only 3%.
The present
•
Frankly our primary objective
represented by the conven¬
FHA
'
private service corporation is a marily to "first liens upon homes
good" one; and jL the committee or combination of homes aftd busi¬
so
desires, its powers could be ness property." In addition, these
specifically limited to providing associations may make loans on
mortgage guaranties on conven¬ the security of first mortgages on
"other improved real estate" not
tional loans.
/V-rf'
'
ing the risk is not too important.
Either plan
represents a major
step in our objective and the com¬
mittee's obective of bringing home
ownership within the reach of
stantial^ during the period 1943more families. Moreover, our lend¬
1956.
ing experience over the past 20
Mortgage Insurance, Conventional years is strong evidence that a
90% loan surrounded by certain
Loans (II. R. 10637)
Over the past several years we safeguards is entirely in keeping
with
prudent mortgage ; lending
have felt that there should be a
practices.
YA ; YV A'1 Y""' V j'place in our system of mortgage
;
In the early days of 4; Federal
credit for an intermediate position
between self insurance on the one savings and loan associations, our
insurance
ance.
a
approach to this problem was ma¬
terially influenced by the success
business,
our
mortgages;
home mort¬
We do believe the idea of
gages.
pay premiums on insurance to the
Federal Savings and Loan Insur¬
social
38% of sales.
of
tion
debentures secured by
tional loan, and on
ly, we are fi¬
nancing about
The
ventional
hand
about
or
37%. Current¬
by insur¬
such controls.
trustees. Gener¬
Corporation; and (3) used for
operating expenses which, need¬
less to say, have increased sub¬
mortgage debt
outstanding on
savings and IoaiL
are covered
Removal of the limit would,
therefore, increase the contingent
liability of the Insurance Corpora¬
ance
At the end
of
associations
Investment Powers, Federal
private securities. We are, how¬
Savings and Loan Associations
ever, continuing our work toward
creating an interest on the part A; Under Section 5(c) of the Home
of corporate trustees in bonds or Owners' Loan Act, the investment
govern¬
because of legislative restrictions are
unable to deliver when the housing economy relies upon them
most. Points to past 20 years of lending experience to show
that a 90% loan surrounded by certain safeguards is entirely>.
in keeping with prudent mortgage lending practices. Predicts
lowered conventional loan down payments would expand home
buying by perhaps an additional 100,000 dwellings a year..
I want
counts in insured
would
program
-
mortgage loans but
'
this
under
magnify the recurring difficulties
ally speaking, they are noUpartieularly interested in new forms of
have
now
loans
tism of corporate
authorizing easier credit terms on conventional home loans.
and VA
Interest rate or other controls on
experienced A inthe government
mortgage sectorwe would oppose
we ran into difficulties in
the form of an inherent conserva¬
liberalize Federal Savings and
ment's monopoly on low down payment
The Hartford,
of other services to
and loan system. Here
again
Federal Savings and
investment powers
the
the savings
Loan Association
Mr. Bent urges Congress to
to
funds, but with the
the furnishing
Legislation Committee, National League of Insured
Savings Associations, and
1
Thursday, July 31, 1958
.
tap; pension conventionally . financed housing, only a negligible change in the
thought that One reason for this stability in' contingent liability of the Federal
powers
of the corporation conventional financing is its abil¬ Savings and Loan Insurance Cor-|
might be later extended to include ity to change to market conditions. poration. About 97% of all ac-,
primarily
signed
a
.
.
(406)
6
of
Nov.
30-Dec.
on
1958
(Miami
Investment Bankers Association
of
at
America
annual
convention
the Americana Hotel.
Dec. 9, 1958
Limitation
5,
Beach, Fla.)
_
(New York City)
Investment
Association of New
York annual dinner at the Wal¬
Insurance of Accounts
dorf-Astoria.
The removal of the $10,000 ceil¬
ing on savings account insurance Nov. 2-5, 1959 (Boca Raton, Fla.)
National Security Traders Asso¬
would, in our judgment, produce
i
„
a
substantial
increase
available for home
in
funds
financing with
ciation
Annual
Convention
the Boca Baton Club.
at
^
Volume 188
Number 5764
.
The Commercial and Financial Chronicle
..
(407)
New Issues
City
High
School
District
School
•
Los
-
District
Due
September 7, 1959-83, Incl.
ISSUES, AMOUNTS, MATURITIES
Payment and Registration
First
denomination
coupon
of
S
1,000
AND YIELDS OR
$28,000,000
Los
Exemption
under
.
Los
opinion of counsel, interest payable by the Districts upon their bonds is
from all present Federal and State of California Personal Income Taxes.
exempt
existing statutes, regulations and
court
decisions.
...
-
.
Angeles City High School District
;
the
PRICES
(Accrued interest to be added)
(annual) payable September 1, 1959. Coupon bonds in
registerable only as to both principal and interest.
Tax
In
District
1958, Series A
Principal and semi-annual interest (March 1 and September 1) payable at the office of
the Treasurer of Los Angeles County in Los
Angeles, California, or at any of the fiscal
agencies of Los Angeles County in New York, N. Y. or Chicago, Illinois, at the option
of the holder.
College
Angeles County, California
%> Bonds, Election
Dated September 1, 1958
Junior
•
$10,000,000
Angeles City School District
.
.
$2,000,000
Los
■
Angeles City Junior College District
„
Yield
High
Cify
Junior
School
School
College
or
Price
Due
Legality for Investment
$1,120,000
v
ings banks, and
may
be invested in bonds which
eligible
are
as
are
v
1962
2.00
400,000
80,000
1963
2.15
400,000
80,000
1964
2.30
400,000
80,000
1965
400,000
80,000
400,000
80,000 *
1,120,000
400,000
80,000
1,120,000
400,000
80,000-
1,120,000
400,000
80,000
1,120,000
comprise separate issues of three distinct districts. The bonds of
400,000
80,0001
1,120,000
opinion of counsel constitute the legal and binding obliga¬
issuing district and are payable, both principal and interest, from
ad valorem taxes which may
be levied without limitation
r
as to rate or amount
1959
1.00%
.
r
-
2.45
2.60
1966
1967
<
2.75
-■
1968
2.90
1969
-
3.00
1970
3.10
3.15
1971
1,120,000
400,000
80,000
1972
3.20
1,120,000
all of the taxable real property in the issuing District and which, under
laws now in force, may be levied without limitation as to rate or amount
upon
400,000
80,000
1973
3.25
3.30
1974
80,000
400,000
1,120,000
1,120,000
"
400,000
80,000
1975
3.35
1,120,000
all taxable personal property, except certain classes thereof, in the
issuing District.
upon
80,000
1,120,000
each issue in the
the
1.60
400,000
.
'
These bonds
tions of the
1.30
1961
1,120,000
Purpose and Security
1960
80,000
1,120,000
legal investments for sav¬
moneys in California.
80,000
400,000
1,120,000
security for deposits of public
$80,000
400,000
1,120,000
1,120,000
for other funds which
$400,000
1,120,000
We believe these bonds are legal investments hi New York
for trust funds and sav¬
ings banks and in California for savings banks, subject to the legal limitations upon
the amount of the bank's investment, and are likewise
legal investments in California
400,000
80,000
1976
3.40
offered ivhen,
are
well
as
as
as
San Francisco
R. H. Mouiton & Company
San Francisco,
1982
100
1983
100
of Chicago
Angeles
R. W. Pressprich & Co.
Seattle-First National Bank
The First National Bank
William R. Staats & Co.
Dean Witter & Co.
Horablower & Weeks
Calif.
Ladenburg, Thalmann & Co.
Lee Higginson Corporation
Laidlaw & Co.
A. M. Kidder & Co., Inc.
E. F. Hutton S Company
i. Barth & Co.
Reynolds & Co.
:
(Incorporated)
Andrews & Wells, Inc.
Wertheim&Co.
Trust Company of Georgia
Stroud & Company
Incorporated
•
W. E. Hutton & Co.
Kean, Taylor & Co.
-
R. S. Dickson & Company
Carl M. Loeb, Rhoades & Co.
Stone & Youngberg
Fitzpatrick, Sullivan & Co.
Gregory & Sons
Ira Haupt & Co.
Hirsch & Co.
Incorporated
Francis I. duPont & Co.
W. H. Morton & Co.
G. H. Walker & Co.
-
Roosevelt & Cross
National State Bank. New York Hanseatic Corporation
Robert W. Baird & Co., Incorporated
American Securities Corporation
H. E. Work & Co.
Chas. E. Weigold & Co.
L. F. Rothschild & Co.
Incorporated
Newark, N. J.
Incorporated
F. S. Smithers & Co.
Bacon, Stevenson & Co.
•
Coffin & Burr
Incorporated
William Blair & Company
Bacon, Whipple & Co.
John Nuveen & Co.
,
Shearson, Hammill & Co.
'■
-
>
Harris Trust and Savings Bank Guaranty T rust Company Blyth&CoJnc. The First Boston Corporation
Merrill Lynch, Pierce, Fenner & Smith
Equitable Securities Corporation
Schoeilkopf, Hutton & Pomeroy, Inc.
'
100
80,000
80,000
400,000
400,000
of Portland, Oregon
First Western Bank & Trust Co.
1
•
-
1981
80,000
400,000
1,120,000
I
,
Philadelphia National Bank
Clark, Dodge & Co.
Los
C. J. Devine & Co.
.
•
100
of New York
1
V
The
1980
Security-First National Bank American Trust Company California Bank Continental Illinois National Bankand Trust Company Chemical Corn Exchange Bank TheNorthernTrustCompany
Smith, Barney & Co.
Drexel & Co.
80,000
of New York
.
-
100
400,000
1,120,000
Bank of America N.T. & S. A. The First National City Bank The Chase Manhattan Bank Bankers T rust Company
!
3.45
1979
80,000
•
*
iV.
1978
80,000
400,000
1,120,000
and if issued and received by the underwriters
not shown whose names will be furnished on
other underwriters
and subject to approval of legality by Messrs. O'Melveny & Myers, Attorneys,
Los Angeles, California.
request,
80,000
1,120,000
listed below
3.45
400,000
400,000
1,120,000
Legal Opinion
The above bonds
1977
1,120,000
1,120,000
Incorporated
C. F. Childs and
City National Bank & Trust Co.
Company
City National Bank and Trust Company
First Southwest Company
J. C. Bradford & Co.
Ginther & Company
Burns, Corbett & Pickard, Inc.
Kansas City, Mo.
Stein Bros. & Boyce
Stern, Frank, Meyer & Fox
Wood, Gundy & Co., Inc.
The First National Bank
Lawson, Levy, Williams & Stern
Breed &
Blunt Ellis & Simmons
Frantz Hutchinson & Co.
Tilney and Company
July 30, 1958
A circular relating to
Harrison, Inc.
Lyons & Shafto
Alstyne, Noel & Co.
Minneapolis
Wm. E. Pollock & Co., Inc.
The First Cleveland Corporation
.
Hill Richards & Co.
;
Incorporated
McDonnell & Co.
Provident Savings Bank & Trust Company
'
Thornton, Mohr and Farish
Spencer Trask & Co.
Tripp & Co., Inc.
J. R. Williston & Beane
The Illinois
Company
Incorporated
Shuman, Agnew & Co.
Robert Winthrop & Co.
in Nashville
Incorporated
Van
'•
Third National Bank
Federation Bank and Trust Co.
"...
of Saint Paul
of
;J
Irving Lundborg & Co.
Taylor and Company
Northwestern National Bank
Dominick & Dominick
Commerce Trust Company
Field, Richards & Co.
i
Wm. J. Mericka & Co., Inc. i
Kaiman & Company, Inc.
„
Kenower, MacArthur & Co.
Ernst & Company
A. G. Edwards & Sons
Julien Collins & Company
of Chicago
Kansas City, Mo.
Incorporated
*
The National City Bank
1
Seasongood & Mayer
The First National Bank
of
First National Bank of Minneapolis
Memphis
Stern, Lauer & Co.
Stubbs, Watkins and Lombardo, Inc.
of Cleveland
Wachovia Bank and Trust
Company
R. D. White &
Company
these bonds may be obtained from any of the above underwriters, as well as other underwriters not shown whose names
Zahner and
Company
will be furnished on request.
/
3
The Commercial and Financial Chronicle
(408)
The 1958
Dealer-Broker Investment
I
and
tend intereeted parties the following literatures
Letter
No.
rocket fuel uses
including chart of atomic energy and
of various atomic metals—Atomic Develop¬
39
Fund, 1033 Thirtieth Street, N. W., Washington
ment Mutual
after
how
American
favorable
tinue
to
conditions,
crop
produce
—
Monthly investment letter
Canadian
Chemical &
Scotia,
Nova
of
Toronto,
Stock Price Indices
—
Tabulation-
outturn
this
Report — Blair & Co. Incorporated, 20
Street, New York 5, N. Y. Also available is a report
—
Over-the-Counter
for
Growth
—
age
of
Mexico, Beneficial Corporation, Thermo King Corp.
and Grolier Society — George O'Neill & Co., Inc., 30 Broad
Rof«r W. Babson
Stocks
Comparative figures on forty companies
—
—Robert H. Huff &
Co., 210 West Seventh Street, Los Angeles
14, Calif.
Earnings
—
Analysis
—
Nomura Securities
Co., Ltd., 61 Broadway, New York 6, N. Y.
Japanese Stocks
—
Current information
Yamaichi Securities
—
Company of New York, Inc., Ill Broadway, New York 7,
New York.
Market:
What
It
Means
Brochure—Chase Manhattan Bank, 18
to
U.
Business—
S.
Pine Street, New York
15, N. Y.
Over-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield
and
National
of winter wheat is
record
a
market
period —
Quotation Bureau, Inc., 46 Front Street, New York
performance
over
19-year
a
of
high
expected to hit
1,130,000,000
from 1957 and
of
60%
bushels. Although
the indicated spring wheat out¬
turn of around 214,000,000 bushels
is
the
smallest since
second
total
S.
U.
1939,
will be
crop
the
second
largest of record. Despite
the fact that stocks of old wheat
farms
on
recently
low average,
will
militate
rise
against
the
over
1958-
for
also
Seasonal factors
needs.
1959
suffice
than
more
well be¬
were
total wheat supplies
sustained price
a
Mother Nature has favored sev¬
eral of the other
dle East and the Markets.
These
Growth—List of
issue
with high yield
Two Paths of Recession—Review of Canadian economy—Bank
of Montreal, Montreal, Que., Canada.
«*
«*
of
barley
will
—
Analysis
10-year
of
large
average.
on
come
crops
carryovers
above average
in the
Bacon,
Whipple & Co., 335
South La Salle Street, Chicago 3, 111.
Alabama Gas Corporation—Report—Georgeson & Co., 52 Wall
Street, New York 5, N. Y. Also available are reports on Joy
Above-average
Manufacturing Company and Goldfield Consolidated Mines
Co.
Arizona Public Service—Data—Dreyfus & Company, 50 Broadway, New York 4, NN. Y. Also in the same circular are data
on Stone & -Webster and U S.
Plywood.
Blaw-Knox—Data—Schweickhardt & Company, 29 Broadway,
New York 6, N. Y.
California Eastern Aviation, Inc.—Memorandum—Cruttenden,
Podesta & Co., 209 South La Salle Street,-Chicago 4, 111.
Also available is a memorandum on Watson Bros. Transpor¬
dicated
—
of bar¬
case
crop
also
crops are
both
for
hay
in¬
and
Although the oats
be a little below aver¬
beets.
sugar
may
unusually heavy farm stocks
easily ample total supplies.
The flaxseed crop threatens to be
relatively small. Farm stocks of
this item also are sharply under
a year ago and the 10-year aver¬
age. This may augur some string¬
ency in supplies of linseed oil and
linseed meal during the 1958-1959
age,
Equipment—Analysis—du Pont, Homsey & Company, 31
Milk Street, Boston 9, Mass. Also in the same circular are
Continued
on
page
35
Prospects for the nation's
corn
relatively good, but the
outturn, which I forecast at around
3,300,000,000 bushels, may be some¬
under
Weather
last
year's
conditions
harvest
and
time
total.
between
financial institutions
ever,
—
no
there
fear
this
fall
must,
Orradio Industries Inc.
corn
With
to
for
be
the
since farm
season,
the
hog-corn
fall
pig
crop.
beans
will
devotees
is
the
down
be
to
to
cultivation
in
about
July
on
1
only
—
compared with
the 1947-1956 average of 22,611,000 acres. Even though this acre¬
12,402,000
acres
will be intensively cultivated,
the final outturn of cotton
will
far
mestic
and
1958-1959
of
short
do¬
Hence
needs.
export
remained
until
joined
the
investment
While working for Sloss, Mr.
BIyth
met
Roy
L.
Shurtleff,
George C. Leib and Dean Witter
and
in
1914
vestment
Witter
his
they formed
&
Under
BIyth,
Co.
be
glad to know that the 1958 U. S.
Dean
the
firm
bit early in the sea¬
hazard
a
on
guess
production,
but
since
acreage
is at a record
planted
high, another huge crop is prob¬
able,
given
favorable
weather
conditions.
Farm stocks recently
below
well
were
but
the
year-ago
still
were
the
the
record for
there should be
highest
of
third
beginning this Oct. 1.
supply-demand
not i augur
sustained
strength.
year
indicated
does
The
ratio
price
annual
at
of about $13,300,-
rate
in
,
should
do
fairly
throughout
founded, it had capital of less
$10,000 and the personnel, in¬
cluding the founders, numbered
11.
Today the firm has capital
was
than
funds of $33,000,000 and approxi¬
mately 700 employees.
In
addition
his
to
investment
banking activities, Mr. BIyth plays
a
dominant role in the business,
civic
and
political life of San
Francisco
fornia.
and
He is
Crown
the
a
state
Cali¬
of
director of several
among
which
Zellerbach
Hewlett-Packard
ford
director of The Stan¬
a
Research
Stanford
President
Institute,
University,
Opera
of
the
San
Association
cently
named
trustee
a
Vice-
a
Francisco
and
The
He
Chairman
of
Bought
Sold
—
and
Syndicate
Institutional Man.
Olympic Commission
Olympics to be held
Squaw Valley, Calif, in 1960.
solved.
at
The
way
out
is not
yet
clear.
With A. A. Harmet & Co.
Joins York & Co. Staff
(Special to The Financial Chronicle)
CHICAGO, 111.—Junie L. Sinson
(Special to The Financial Chronicle)
SAN
Bruce
FRANCISCO,
A.
Blimi
is
now
Calif.—
affiliated
is
with A. A. Harmet & Co.,
La Salle Street.
Mr.
now
208
South
with York &
Sinson
Street,
Investment Co.
Coast
Co., 235 Montgomery
members of the Pacific
Stock
was
formerly with Barclay
Exchange.
Two With Eastman Dillon
Rejoins Lamson Bros Co.
(Special to The Financial Chronicle)
OMAHA, Neb.—Duane A. Jen¬
sen
(Special to The Financial Chronicle)
SAN
has rejoined Lamson Bros. &
Co., City National Bank Building.
Mr. Jensen has recently been wiili
A. C. Allyn and Company Inc.
DIEGO, Calif.—fDonald R,
Mayne and David P. Murphy have
become
Dillon,
associated
Union
with
Eastman
Securities
415 Laurel Street. Mr.
&
Mayne
PUBLIC RELATIOHS EXECUTIVE
20
Troster, Singer & Co.
Members New York Security Dealers Association
74
Trinity Place, New York 6, N. Y.
HAnover 2-2400
Available
member
garded because of the superior job done in corporate public
Teletype NY 1-376-377-378
.
.
well-
known to institutional buy¬
ers
in
U.
Write
mercial
N. Y.
S.
Box
and
C
and
Chronicle,
.
.
7, N. Y.
to
Recession-caused
Young and able team
cutbacks.
man
Highly
re¬
capable of organizing,
Canada.
723
Com¬
Financial
25
relations.
due
Park
Place,
supervising and coordinating
Commercial
York 7, N. Y.
&
Financial
Co.,
was
formerly with Dean Witter & Co.
Years with WallStreet
firms
the
California
for the winter
AVAILABLE
Experienced
San
was re¬
Gustin-Bacon Mfg.
Collins Radio
are
Corpora¬
Company
and Pacific Gas Transmission Co.
He is also
Francisco Symphony.
whole
today
When the firm
second half.
a
has
prin¬
and
offices
24
of
as
New
most
centers
000,000 —up 22% from the cor¬
responding 1957 figure. There
may be a moderate drop in the
Although U. S. farm¬
in
then, the firm
offices
maintains
tion,
the first half of this year was
an
Since
corporations
Farmers' realized net income in
Mr.
steadily
established
was
the United States.
the
Farm Income Outlook
of
has
established
was
cipal financial
date.
Thus,
no dearth
of this wonder bean in the crop
the
Angeles in 1916 and in 1919
branch
established
to
sold
in size and importance. The
York.
a
Witter
leadership
the
grown
grades of cotton
me
in¬
organization in 1924..
terially
for
the
banking firm of BIyth,
interest and retired from
a
along.
banking
firm of Louis Sloss & Co.
This means that supplies of better
may tighten ma¬
the new season works
& Co.,
coming
to San Francisco in 1909 when he
in Los
It is still
with the
Burr
first branch office
son
Chi¬
H.
the expected lurther cut in stocks.
as
ca¬
in
reer
George
he
—
age
fall
of
where
con¬
8,700,000 bales, and probably will
be cut sharply again a year hence
in view of the very small acreage
ratio
likely to remain favorable, I fore¬
cast a sharp increase in this year's
Baked
Reeves Soundcraft Corp.
appear
adequacy
stocks of this grain recently were
the third highest of record for the
date.
Republic Natural Gas
would
to
as
1958-1959
Current trading favorites
estimated
now
of course, be reckoned with. How¬
For
situation
cotton
firm
well this year, some of their basic
economic
problems remain
un¬
are
what
investment
banking
cago
about
tinuing reduction in the big U. S.
surplus. The Aug. 1 carryover is
ers
crop
started his in-
Cotton and Soybeans
the
Amherst
College in
1
9 0 5,
he
Charles R. BIyth
season.
Corn, Dry Beans, and Rice
Clark
g,raduati n,g
from
ments.
What impresses me most
in
O.
Shortly after
9%. It should suffice
by
BIyth
born
was
domestic and export require¬
assure
tation Co.
Chesapeake Industries Inc.—Analysis—Hunter Securities Cor¬
poration, 52 Broadway, New York 4, N. Y.
outturn
j"
Ashtabula,
rice
to
July
on
Mr.
but would top the small 1957
age,
for
the
figure,
69%
ley and 10% above in the case of
«
—
rye,
the
sizable
heels
rye.:
Laboratories
and
top
Outturns
for instance,
grains.
day
31.
am
soybean
term.
near
and
long term growth possibilities—Bache & Co., 36 Wall Street,
New York 5, N. Y. Also available is an analysis of the Mid¬
j
highlights.
850,000,000
4, N. Y.
Six Percent Plus
Abbott
of
some
above the 1947-1956 average
33%
the
European
Here
Production
bushels—up
Japanese Corporate
comparable
the
Street, New York 4, N. Y. Also available is a detailed an¬
alysis ol Electronic Specialty Co.
{-.
years
record.
are
I
Inc.,
celebrate
his 75th birth¬
18,269,000
acreage
more
Co.,
will
than they did a year
expecting a crop of
around 47,000.000 bags (100 pounds
each). This would be about aver¬
acre¬
in 40
analyses of Electronics Specialty Co., Public Service Co. of
New
Insurance
firm-e£ BIyth
&
year
total
smallest
Brief
planted
ers
the
from
planted
Stocks
to¬
a
equaling that
of any previ¬
ous year—and
the Machine Tool Industry.
Sensible
ago.
prospects
around
be
may
this
of 1958
tal
Smith, Barney & Co., 20 Broad Street, New York 5, N. Y.
Chemical Industry
My first
crop
r
Ethical Drug
investment banking
bags—up 16% from last year, 9%
above
average,
and the highest
production since 1949. U. S. farm¬
less.
survey
indicates
Business—Survey—Bank
Ont., Canada,
New
and
crop
less
—
able is current Foreign Letter.
Five
con¬
and more
more
Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬
on
may
I am amazed
farmers,
given
7, D. C.
View
well-Known fin¬
ancier and head of the nationwide
22% from corresponding 1957
be a moderate drop in second half.
year,
Calif.—
FRANCISCO,
Charles R. BIyth,
ability to produce more
Observes that farmers' first
from
Burnham
Broad
and less.
from less
more
figure and expects there
Year
Atomic
outlook, Mr. Babson remarks
half year net income was up
it it understood that the firm* mentioned will be pleated
to
crop
with wonder about continued farmers'
Recommendations & Literature
;•
previewing 1958 farm
BIyth Has
Two Anniversaries
SAN
In
Thursday, July 31, 1958
.
Charles R.
Crop Outlook
ROGER W. BABSON
By
.
.
a
broad
Chronicle,
program.
25
Park
Box C 717,
Place,
New
Volume 188
Number 5764
.
..
The Commercial and Financial Chronicle
but
and
Apparel Industries
,
1957-58
there and advises
the low point in the
at
general
business
built
decline.
The low in
production was prob¬
reached in April. The low
ably
in
Gross
into
our
which
and
I
volume
modern
discuss
in
•v.-
tainly
'
The
consumer, and
/
the
sports
and
new
housing bill will
of
to
residential starts
this
I
believe
industry
look
at
its
it
to
is
time
take
for
another
ment
in
the
let
ficult to understand the basis for
this in view of the great
oppor¬
tunities that do exist, especially in
have
this
period when novelties are
important and staples are
becoming less and less important.
more
In
Now,
hand
automobile
as *
to
me assure you
in season:
or
not. And since when
rebelled at carrying a
little inventory for customers, if
it could be bought at the right
price with a fair chance- of selling v
it at a better price.
you
.
January, 1957,1 spoke before
the Textile Salesmen's Association
on
the subject of the economic
industry today. But naturally, a great deal
levels, depends on their policies. Let me
nevertheless
this
industry
will close by indicating just a few of
hardly provide much encourage¬ the opportunities which in my
ment in this period discussed in
opinion are a challenge to the
this report.
However, prepara¬ independent converter.
as
one
the opportunities,
they are there.
time, I sometimes wonder whether For example, I don't know when
the textile industry has not de¬
you will find a period when there
liberately embarked on the policy will be much less risk in buying
of low profits. It is
certainly dif¬ selected, grey goods, whether it is
from the present depressed
general business trend,
the
on
all 16 cylinders.
After 33 years, and this is a life¬
own
Modernization and repair position of the converter. At that
volume, which recently has lagged, time I expressed confidence in the
should also improve.
future of the independent con¬
Whiie we expect some better¬ verter. The same conclusion holds
De¬
ters and retailers
9
and mills and fiber producers on
the other, are hitting full blast on
operations and
ask
itself whether they are
sound from the profit viewpoint.
cer¬
greater
a
ing.
the
year.
Passed
•
separates,
contribute
number
Textile-Apparel Low Point
;
of
and the
detail in
latest book, "No Major
pression in Our Lifetime."
in
•
economy,
my
(business,
new
,The
outlook
for
residential
building continues favorable. The
easy supply of mortgage money
Na¬
tional Product
The strong interest in the
casual items jalso continues to gain.
risk-taking.
more
be
The trend toward dressier gar¬
ments continues even though the
textile-apparel indus¬
tries and. converters. Believes low point has been
passed but
does not anticipate a sharp gain in textile prices,
production
and orders-backlog; cautions upward trend
may fall back a
half step before resuming forward direction; and sees
profits
lagging behind volume improvement. Expresses faith that op¬
are
will
year ago.
readily than consumers
upper income brackets.
-V'-
Business economist envisions general business trend for the
of the year as being favorable to the
are
a
the low and middle income groups
have
accepted
it
much
more
Statistical Bureau, Inc., New York City
portunities for converters
volume
better than
silhouette in; women's wear con¬
Volume has increased as
rest
We
sales
or
tinues.
By A. W. ZELOMEK*
President and Economist
their
equal to
For the Rest oi 1958
International
(409)
There
in
are
fabric
many
opportunities
styling.
For example,
many areas of the men's furnish¬
ings market
are deader than they
be
right now, because
nothing is available but the same
should
old fabrics that have been around
now
kets
for
two. These mar¬
definitely looking for
a
year or
are
something new, but no one is of¬
fering it. Or at least, no one is
offering it, with enough confi¬
dence to inspire the buyer to buy.
government
I
spending)
In any case, something is wrongChallenges to the Converter
velop early, and the annual rate
either lack of new styling, or lack
apparel industries and to the con¬ of production in the fourth
The independent converter's op¬
quar¬
of confidence in
verter. I don't anticipate a sharp
sponsorship —
ter will be high, no matter what portunities are related to his func¬
and that creates ai> opportunity
gain in textile prices arid produc¬ happens later. Automobile com¬ tions in the textile
economy. The for
you.
tion, and a marked increase in the pany buying in the period July
only questions we have to answer
backlog of orders. But the textile- through September should be bet¬ are: What these
Now, as to new fabrics and fin¬
chief functions
ishes—or even old fabrics such as
apparel industries have passed ter than last year.
are; and: Will their successful ex¬
their low point, and will move
silk, let me say just one thing.
Other industrial consumers of ecution be better rewarded in this
forward for the rest of the yearMaybe it's attractive to you to
textiles
should
about
maintain coming
period than they have
one
limit your risks as much as pos¬
step at a time; they may even last
year's levels. This includes been at many times in the past? sible. But if
fall back a half step before mov¬
you are going to deal
the shoe industry, bags, electrical
Personally, I believe the most
ing to the next one.
only in the old stand-bys, where
insulation, laundry and dry clean¬ important functions of the con¬ the
The basis for this improvement
profits and losses are limited
ing supplies, etc.
However, de¬ verter can be boiled down to the to fractions of a, cent
a1 yard, the
in textiles is the strong consum¬
mand from industrial users will following:
whole textile industry will be
ers' position, as well as the
pros¬
still lag, as compared with ap¬
(1) Risk taking.
*
handicapped, and so will your own
pect of a moderate recovery in
parel and home furnishings pro¬
(2) Innovation of styling.
business activity as a whole. The
operations. Sure, the old standducers.
(3) New fabric and product de¬ bys are the staples, and you have
supply-demand equation is also
to have them as a base for your
Activity in textile mill prod¬ velopment.
favorable.
j
(4) Sponsorship and marketing operations.
which is
currently
only
At no time during the recession ucts,
But
I believe you
should of new products and new ideas. should put a somewhat bigger
has disposable income shown a slightly above the low,
tend
When I speak of opportunities, percentage of your effort into
upward.
It
is
doubtful
decrease as compared
with the
I do not mean to imply that they new and/or more risky items and
previous year. This is an amazing though, whether producers will
are riskless.
But how can you op¬ ideas. These new things are like
development considering the fact step up production rapidly in view
erate most effectively and most the yeast in the brew. They start
"
that as high as five million have of the small profit margins.;
profitably without taking risks— fermentation. They don't give you
been unemployed. This certainly
Sees Profit Lagging
in buying seasonal goods out of volume right now.
But if you
indicates that the economy of 1958
is quite different from that of I
I certainly wish I could be more season, in styling, in gambling on don't take this risk,. where can
the value of new fabrics and new you expect to find the volume
other periods.
It certainly indi¬ optimistic on the profit prospects
And the
cates that we are less sensitive for the industry. I doubt whether finishes, in making a market by fabrics of next year?
and less dependent on salaries and the industry will show a profit your sponsorship for new products year after?
or new ideas which in your judg¬
wages
in
manufacturing
than equal to the improvement in vol¬
With Chittenden, Podesta
I do not quite understand ment have a good chance for ex¬
hitherto.
If I may characterize ume.
(Special to The Financial Chronicle)
this period, I would say that we the policy of passing on all the panding consumer acceptance.
are
in a service economy rather advantages
you
gain, whether And frankly, I don't think that the
GRAND RAPIDS, Mich —John
textile and apparel industries can
than in a
production economy. through intelligent raw material
Knorr is with Cruttenden, Podesta
be healthy unless knowledge, and
This is a most important change. purchases, better styling and de¬
& Co., McKay Tower.
I question whether the consumer's signing, or more effective sell¬ experience, and contacts with cut¬
goods
industries, in particular,
have
given adequate considera¬
tion to the significance of this
development.
This announcement is not an offer to sell or a solicitation of an offer to buy these securities.
Aside from the expected
in¬
The offering is made only by the Prospectus.
crease
in personal indome, the
consumer's
position is also
strengthened by his record liquid
assets, the fact that he has no ex¬
cessive debt, and the fact that
prices are not excessively high.
As employment gains later in the
year, there will also be an improvement in psychology.
ing the first
quarter, or the
early part of
second
quarter.
'
The
in
low
reached,
weeks
some
The com¬
posite index of
ago.
textile
its
activity
product
within
low
While
the
have
we
last
reached
60
days.
the
seen
low
point in general business activity,
nevertheless there is little indica¬
tion
of
.
marked
a
future.
near
out" at the
business
We
upturn in the
"bottoming
are
present time. The 1958
will
curve
be
saucer-
shaped, reflecting a continuation
in the first quarter of the decline
which began in 1957, a more or
less level trend in the second and
third quarters, and a gradual rise
the fourth. In contrast to the
in
other two
postwar readjustments,
in 1954, the upturn
will be slow in developing and the
in
and
1949
gains during the first six months
after the low point will be less
marked.
two
other
the
to
the textile recovery
should be slightly greater than for
periods,
industry
textiles
ing,
whole. However, in
in general manufactur¬
segments will do better
as a
as
some
than others.
-
.
Excess
capacity and excess pro¬
duction were major contributing
factors in the general economic
trend. We built too many plants,
-
and
produced too much goods, so
a
temporary period of
severe
indigestion.
Last year's
cutback in defense spending, and
the tight credit policy of the Fed¬
we
had
eral Reserve, helped call a halt to
the
the
1955-1957
excesses
rest
of
the
tions for
1959 models should
de¬
"
Otter Tail Power
.
before
expansion
became
$9,000,000
Other
more
even
serious.
The
the
'
contrast
In
.
for
.
textile activity
was
it
is favorable to the textile-
year,
was
reached dur¬
the
envision
case
of
indigestion
was
a
painful one, but we are beginning
get over it. Businessmen have
spending for
new
plant and equipment. More
important from the short-term
viewpoint, there has been a mas¬
sive
liquidation
of
inventories
since the third quarter
of last
to
reduced sharply their
Favorable
addition
In
to
First Mortgage
Factors
favorable
the
Dated August
Company
Bonds, 4%A% Series of 1988
Due August 1,1988
1, 1958
consumer
position, textiles and
apparel during the rest of the year
should be helped by the following:
The carryover of textiles and
Price 100.799% and accrued interest
apparel from the .1957 Fall heavy¬
weight season is the smallest in
recent
history.
T
The
has
exceedingly
severe Winter
consumers' attention
focused
On the positive side, the on the inadequacy of their ward¬
government spending, de¬ robes, and sales in these divisions
fense and otherwise, is now rising; in
August-September should be
The Prospectus may
be obtained in any State in which this announcement
of the undersigned and other dealers as may
is circulatedfrom only such
lawfully offer, these securities in such State.
^
year.
trend of
the
Federal
active
steps
the
crease
Reserve
to
taken
credit, in¬
supply, and
ease
money-
interest
force
has
rates
down:
and
have beep
to stimulate the impor¬
tant home building industry. Even
at the. low point, disposable in¬
special
adopted
remained, above a year ago,
spending has been
come
and
measures
consumer
well
maintained.
seen
in
actual
What
we
operation
have
during
this recession is the practical po¬
tency of the stabilizers which are
'An
address
by
Distributors
New York
Dr.
Zeloraek
Annual
City.
before
Meeting,
-
-
'
'
\
The
retail
open-to-buy for
heavyweight apparel is the largest
r. w.
Stock-sales ratios of wholesalers
retailers
were
low.
at
the end
Even if
we
of
May
include the
the illinois company
.
textile
inventories
mills, total
are
still
stern brothers a co.
mackall a coe
low—much lower than
ago.
Therefore, steady replace¬
buying will be necessary.
Customers'
their
a year
stocks
are
small
and
buying has been restricted,
loewi a co.
'
INCORPORATED
mullaney, wells a company
stifel, nicolaus a company
thomas a company
incorporated
low.
Unfilled orders at the mill level
are
/
fahnestock a co.
INCORPORATED
slightly greater fabric inventories,
particularly in cotton
.
salomon bros. a hutzler
pressprich a co.
william blair a company
in several years.
and
'
halsey, stuart & co. inc.
better than in recent years.
ment
'Textile
•'
allison-williams company
harold e. wood a company
July 24, 1958
patterson, copeland a kendall, inc.
arthur
l. wright a co.,
inc
The Commercial and Financial Chronicle
10
Insurance?
What's Ahead in Life
By CARROL
2VI. SHANKS*
dustry's value -— service to the many things, but one of the most
public, progressiveness, acumen,' important is that it increases ef¬
capacity
to
operate
profitably, ficiency in the field. The indus¬
labor
and
public relationships,1 try can well afford to spend a con¬
outlook—all
Insurance Company
President, Prudential
indices
the
dicate where
that
in¬
business is going.
inventing other
for the
country.
national
the
it is
expanding, and
'economy is
reasonable to expect we will ex¬
of
average
pand with it. In view of these
facts, we are tempted to look for¬
optimistic future—op¬
timistic without qualification
for the insurance industry.
Unfortunately, however, there
are two sides to the coin. On the
ward to an
is
hand
one
industry's
the
picture
of
our
parently endless
a p
critical situa¬
industry, we have, at
not in any
an
most, a symptom, not a disease.
Yet, other once-important indus¬
tries have slipped—some so badly
that
have
they
almost ceased to
them?
exist. What happened to
Course
In
some
of Slippage
cases,
the
There
was
was
the lic—and
past, and the situation will grow
worse
in the future.
With in¬
creased labor costs, a shorter
costs, the financial requirements
of
business
will
multiply, and
skill
will
be
on
needed
more
this
than
ever
mistakes will be reduced.
just no use for buggies, for in¬
The insurance industry is cer¬
growth and expansion—but on the
stance,
after
automobiles came
is
a
comparison of our
tainly faced with some real cost
into the picture. Only a few of
development with the growth of
problems, which can be overcome
the famous old wagon manufac¬
the economy as a whole; and this
only by skilled management. We
turers, however, admitted the fact.
picture is not so bright. We have
not only have the usual cost prob¬
The rest simply stuck to their
done well—but not as well as we
lems but have one problem not
guns and then finally boarded up
should have done. The proportion
shared by other industries: the in¬
their factories when there were no
of the public's income after taxes
surance industry has, on its books,
more customers. This sort of thing
which it devotes to life insurance
millions upon millions of dollars
has remained virtually unchanged happened to manufacturers of a worth
of
policies issued many
number
of other products
who
during the past 15 years. In other
refused to keep pace with chang¬ years ago which, because of un¬
words, we have barely kept pace
anticipated
inflation,
carry; far
with the growth of the economy. ing social and economic changes. less than their share of the cost
Products must change to mqet the
Why?
burden.
In our business a cus¬
needs of people. This
For reasons that I will go into changing
tomer buys a product at a stipu¬
applies to us as well as to all
later, the penalties of falling be¬
lated price and pays for it over a
other enterprises.
hind in a business like ours can
other
lifetime—and there is no way we
Government
disastrous.
be
competi-'
vention and government
tion
like
hand
Damocles
don't
heads.
If
we
effectively,
job
our
of
sword
a
our
over
do
inter¬
there's always the danger that the
government may try to do it for
us.
Reviews
Standing
Industry's
Let's take
a
quick look at what
ing recent years:
In 1957, life insurance sales of all
branches
ordinary, industrial
—
and
group
billion. Ten
f
was
as
$22
—
amounted to
$65
the total
about a third
years ago,
billion,
much.
in
the
U.
S.
to $456 billion. Ten
i
was
it
$201 billion—less than half
much.
as
At
amounted
years ago,
the
end
of
1957,
insurance
company assets were more than
a
products
obsolescent?
raise our premiums once the
original transaction is completed.
try to really new products?
This makes the challenge for us
The remarkable success of the that much
greater. Costs can be a
Family Policy proves that a prod¬ greater long-range threat to us
uct adjusted to the current situa¬ than to other
industries, and will
tion has a ready acceptance.
For require greater skill to find solu¬
my part, I think Variable Annu¬
tions.
ities is another plan that fits our
In viewing what is—or may be
helpful to and popular with
policyholders.
But the sale of
Variable
Annuities
currently is
being blocked, even by some in¬
surance
companies. If there had
been any legal or legislative way
to block the Family Policy, I have
no
doubt
we
time
would
have
had
introducing it, just
a
as
having with Variable An¬
Some day I hope the en¬
tire industry will get hard at work
to develop new and better prod¬
ucts that
combine security with
sales
appeal.
There is all the
we
are
nuities.
room
in
the
world
for
creative
hundred
billion, about twice thinking on this front. / v ~
;
as great as ten years
ago. This
The second
possible cause of
appears
to be a gigantic in¬ any
industry slipping is really a
crease.
It isn't. Nearly 30% of
corollary of the first—the obso¬
the purchasing power of these
lescence of management.
Unfor¬
dollars has simply
been can¬ tunately,
the
tendency, for
celled out by inflation.
These
are
numbers,
no
real
big
management
they
as
measure
of
the
are,
job
that has been done.
In
-
1945,
the
family had
life insurance protection equiv¬
alent to 12 months income, after
taxes. Today this is somewhat
higher: life insurance protects
average
"
*An
address
by Mr. Shanks before
Rutgers
Annua!
Business
Conference,
New Brunswick, New Jersey.
siveness
and
to
lose
drive
its
infects
probably be¬
drive in one
big organization lessens competi¬
and
makes
it
possible for
people to lie down on the job all
along the line.
More than one
industry
that
was
among
the
greatest in the world in its prime
,
now
has
fallen
behind
—ahead
for
the- insurance
indus¬
try, there are two other general
tobies I would like to touch upon:
first, What
cific things
are
concentrate
on
last
one
and
the
in
future in order to
immediate
solidify our po¬
What- will
second,
happen if we don't move ahead at
a satisfactory pace?
Among
problems
the
will meet
in
virtu¬
ally every measurement of an in¬
busi¬
head-on
that
we
In
lot
ing
developing
and
ment is
of
one
competent
top-level
for
manpower
lems,
of securing, hold¬
manage¬
greatest prob¬
our
problem common to all
industry.
However,■> when
one
a
job the
it should be done?
way
businesses,
some
of
elbow
and
For
a
mistakes.
slow catching up
are
taking their toll.
there is
there is
for
room
Inefficiencies
But with us,
margin for failure."
no
«
thing,* the "size and im¬
portance of the insurance indus-^
try, and its commanding place in
one
the economy,
is
made to look
invitation
an open
to demagogues.
Our assets
can
be
dangerous, not * be¬
we have any
tendency to
them, but simply because^
have them.
cause
misuse
we
another
On
front
providing
—
ample coverage for the people of
the country at reasonable rates-—we
could find ourselves wide open
for
government interference. It is
generally supposed that virtually'
everyone should have some sort:
of
protection.
To the extent that
can't
provide it, the govern-;
ment is likely to. Here again is a
we
fruitful political issue that attracts
who would like some¬
thing for nothing, and repels only
everyone
those,
a
pitifully small minority,
are
who
dedicated to the principle
that the government ought to stay
out of competition with private
business.
We
are going to have to
providing some kind
find ways of
of
The problem
for
coverage
who
anyone
can
afford to pay any reasonable pre4
mium
arid
—
fortunately that in¬
cludes the vast majority of people.
The only way to keep the govern¬
ment out of the insurance business
to keep the government froni
going any further into it, because
it is already big business with the
role of
the economy, it becomes obvious government — is to make it un-^
that far more than our own health necessary for the government to
expand its insurance services This
as an industry is at stake. I don't
know that
our
industry is less produces problems for us particu-"'
attractive to good men and women larly in Accident and Health in¬
than other industries; I assume surance, which is difficult at best
that it may appear less exciting to manage, and where precedents
—or
increasingly vital
the insurance industry in
than
the
from
some
it is
a
the
outside, and
fact that insurance compa¬
have
been
in
set
Canada for
England
and
government coverage.
Private coverage is already virtu¬
are not noteworthy
in
both
those
high salaries, | bonuses, and allyimpossible
stock participation plans — the countries in many of these cate*
» - ,
•;
,
latter, of course, being ruled out gories.
in mutual companies because
In closing let me say this. If the
there isn't any stock to participate insurance
industry continues to
nies
generally
for
in.
therefore look
We must
care¬
fully at the incentives which we
are capable
of supplying, and do
the best we can.- The first job is
to make the
insurance industry a
to be progressive, well man¬
aged, broad-gauged, and conscious
of the job that has to be done, we
grow,
should
into the greatest era
move
have
and. satisfying industry to
work for.
This is purely a funcr
experienced and
solidify our position as a free en¬
terprise institution. If we let old
tion 1 of
age
good
even
good
with
We need
than
management,
good
will require
an
good
but
management
outlay of
men
money.
better
—
it
men
have had, on the average,
before, and we will get them
we
ever
we
ment
I!
now.
■
Finally*
we
faced
are
Our
hits
tries.
In
premium
is
varying
a
harder
us
fixed
inflation
in the coming
the
pace.
than
the
with
The fact that
indus¬
place,
for
all
time;
all
compounds
we
are
problems confronting
confidence that
surance.
r
aware
us
;
clear.
certainly
of the
gives
me
will find ways
What we do, not
we
them.
economy
does, will de¬
in life in¬
.v....1
;.
■
con¬
Sterne
our
outstanding business
on
is
course
Inflation
most
first
in for trouble.
are
termine what is ahead
probability that inflation will
tinue at
ever
and bureaucracy creep up on
we
us
only if we, maintain top-grade, to solve
far-sighted, imaginative manage¬ what the
of the spe¬
industry should
the
sition—and
educa¬
our
some
second,
our
cost
Agee Leach to
Admit E. E.
Armstrong
MONTGOMERY, Ala.—On Aug.
7 Ernest E. Armstrong will be ad¬
mitted to partnership in the New
York
Stock
Exchange
member
problems; ^ and third, it creates
policyholder dissatisfaction be¬
(1)
How can we reduce the cause the benefits they receive fall
costs of distribution?
short of what they thought these firm of Sterne, Agee & Leach. He
(2) How do we solve our tax' benefits would provide when the will make his headquarters in the
original policy was taken out. All Montgomery office in the First
problems?
of us in the industry should fight National Bank Building.
(3) How do we assure compe¬
inflation in every
conceivable
tent manpower at the top levels of
way, but should recognize that we
management?
'
years are
these four:
(4) What do
we
do about infla¬
tion?
probably will have to live with it.
I
don't
that
mean
our
destined to be futile.
progres-
often
whole industrv,
cause
the decay of
a
tion
can
resistance in the indus¬
a
to be
hard
At the end of 1957, life insurance
in force
our
economic situation and will prove
has happened in the industry dur¬
!
Are
Is there
—
ness.
front recognizes
The allowable number of
before.
Congressional
tion about the nature of
work
week, continuing inflation, an in¬
creasingly complicated tax struc¬
ture and mounting raw material
management
cause
obsolescence of product.
in
business
of
out
pany
tion—as
to
come
we
our
greater?
are
Penalty for Poor Job
Now
penalty for not doing
Shaak*
We
is
down
it.
Many reasons can be found to ex¬ the sale and servicing of insur¬
plain an industry or a major com¬ ance more efficient and less costly.
The problem of taxation is an¬
pany
slipping,
but
look
deep
The
enough and usually you will find other that causes concern.
Federal Government is now work¬
incompetent, inactive, or laissezv
faire management; a group hog- ing on a tax formula for the in¬
tied to established methods and surance industry, and there is no
without flexibility.
Are we fall¬ certain way of knowing where it
ing Victim to obsolescence of man¬ will fend. The task of setting up
agement? Do our size and pros-1 an equitable: formula for the in¬
perity tend to lead us toward the dustry is not easy. The insurance
which
is
generally
management problems that beset industry
all bureaucracies? This we must thought to be undertaxed, actu¬
avoid at all costs, because no busi¬ ally is more heavily taxed at both
income ness can continue to exist and Federal and State levels than
-
Our
inflation
stopping
What is the
ways
—
M.
to
most important point:
or
—
Cmrrol
Slowing
best
to make
a
current
family. But to¬ prosper simply because it is big- other savings institutions.
One
day's figure is somewhat mis¬ no matter how big it is, it has to complicating factor in arriving at
been striking. Its accumulation of
leading. The rise in insurance be managed intelligently, aggres¬ a workable tax formula for the in¬
assets is remarkably large.
The
coverage
in recent years has sively, and conscientiously, or it surance industry is that the mu¬
percentage of
been partly on a term basis, so will fail.
tual companies have no profits
individuals in
that when we look to premiums
to tax, and accordingly, any tax
the country
instead of face amounts we find
Handling the Exceptional Cost
is a direct charge on policyhold¬
who
a r e
of Inflation
that
the
American
public is
ers
a direct tax on savings — a
covered in
devoting no more of its income
The third major cause of indus¬ price that policyholders must pay
some
or in
to life insurance than was true trial
several—ways
decay has been the inability for thrift. Creating a tax formula
15 years ago. The current pro- of the declining company to han¬ that
applies equitably to mutual
by the pri¬
portion devoted to life insurance dle costs. Costs got out of hand as companies and their policyhold¬
vately - owned
obviously is not high enough to a result of faulty product design, ers, and at the same, time to stock
companies is a
provide adequate protection to outdated production and distribu¬ companies—who, of course, should.
source
of
the average family.
tion methods or because manage¬ and
do
make profits and dis¬
pride to all oi
us
and
an
Why are we not gaining in the ment was simply unable to cope tribute them to stockholders—is
important
economy? Why don't people invest with overhead pressures. The en¬ a most difficult assignment. Cer¬
croachments
of
measure
of
increasing costs tainly the least that is needed in
riore of their money in insurance,
when
the
need
obviously
is have driven more than one com¬ this situation is widespread pub¬
security for
months
18
The growth and development of
life insurance industry has
the
fires.
next
siderable amount of time creating,
industry is slipping and con¬
cerned about the greater threat of inflation to this industry
than to any other, Mr. Shanks reviews what is—or may beahead and discusses what should be done. Warns that the
penalty in falling behind can be disastrous for "government
intervention and government competition hang like a sword
of Damocles over our heads." Details three reasons why infla¬
tion to the insurance industry is a singularly crucial challenge.
Avers it is not futile to fight inflation and, until it is stopped,
suggests recognizing that we probably will have to live with it.
Pondering why the life insurance
!
Thursday, July 31, 1958
...
.
(410)
Problems
Coming Up
Distribution
peculiar to
must
be
Head-On
problems
our
are
not
business.
made in
Progress
simplifying and
reducing the costs of distribution
in virtually every field, because
here is where a large part of the
costs are created and, as a result,
the place where the greatest econ¬
omies
should
somehow
Decentralization
does
be
made.
a
great
Concentration
ing
inflation
on
fight
the job of fight¬
not stop it in
the predictable future, but we can
retard it and some day we may
bring it to
our
a
halt.
the
In
a
times,
event
any
long
way
government
taking short-sighted
difficult
David A. Noyes
that
measures,
will
in
from
in
subse¬
quently add fuel to the inflation
& Co.
(Special to The Financial Chronicle)
may
efforts will go
preventing
Thomas J. Pillion With
is
It won't be.
CHICAGO, 111.—Thomas J. Pil¬
has
lion
become
associated
David A. Noyes & Co., 208
La
Salle
New
Street, members of the
York
Exchanges.
years
with
South
was
and
Midwest
Stock
Mr. Pillion for many
an
Simpson & Co.
officer of Webber-
Volume 188
Number 5764
.
.
.
The Commercial and Firtancial Chronicle
the
1
r
1
.
School of Social
estimates
r-y
■
.
today
During the past 10 years, the
Productive capacity of our nation
hag
grown remarkably
the average rate of growl
Gross Nation.:>•>
;
|
;
_
the United
States
human values. Too fre-
qhently, the objectives of
been advertised or evaluated
in
terms
of
plishments
materialistic
to
Perhaps, I
my
point
ance
have public responsibility in some of
solely, the fields of health, education, and
welfare
accom-
disadvantage
our
illustrate
can
in another way. With the acceptof the basic objectives of
our eco-
Eisenhower
the
bv
Ad-
ministration, the controversies
Then
did in 1929
we
had
we
the
and
programs
we.believe
for
course
a
turn now to such complex issues
as the formulas in Federal, grantexpenditures in-aid to the States, the role of
A review of existing social wel-
fare
shows that, as a nation, it
ik
us.
different task
charting
highly
ad-
motivated 'personnel
appears the States and the Federal Gov-
in the
principle of developing the capacities and creativeness of the individual to the
maximum, in strengthening family
life, and in using a wide variety of
public and private" social welfare
institutions to promote the gencral welfare. ;
emment
who
in juvenile
shall
delinquency,
for extended1 un-
pay
employment insurance benefits
and similar financial and. administrative questions. Increasingly social
policy; formulation
may' in¬
volve knowledge and decisions
;..Vf.
specific issues of great
on
romStexity
but with the great-disadvantage
Despite the gaps and shortcom- and less on those which can be
Pfohlems of adminis- ings in: our programs, it is clear easily shown to involve. exclu-
•;
.
'-tration
had;
to.
be
solved.
We
that
ad-
accepted
the
American people have
the principle that govgained a ernment, business and
voluntary
reasonable degree of competence
agencies should have, as their-goal
know-now
miiusti*ation.
c
in
;
our?
We
grams.
in
financial,
actuarial
planning
..'But today
and
the
of
pro-
have
we
the attainment of
m»ny vested interests; a jigsaw
ni'TTfcrfc* nf manv narta lurifli 1T.AVA
"state of wel-
a
fare» for aU people.
t a
'
T
0
issues.
-
exnlicitlv declare their
^
v
.
J- *
'
Increased Public Expenditures
i
,
.
.
•****'
or'
mit
-
•
t
J1
pluralistic, piecemeal system with
_
sively great matters of ethical
principles which- will- arouse emotional and moral crusades, Thia
may change the whole character
of social action in social welfare
have
economic
.
_
Yll
much
a
; vantage of a relatively, clean slate
land the availability of talented
importance—the growing
recognition of the need for more
-l
in
1935.
or
creased
~'1U
which
on
i
social welfare than
^
.
.
£
>tad
.
^ " coursepragmatic
between
pi mciples and
We face
-
quantitatively and relatively. Looking a
decade ahead, and after cautioning about hazards involved,
Mr. Cohen expects total public and private spendingwdl go
up by $30 to $40"billion, depending. upon rata of-increase of
G.N. P. He states we should strengthenand broaden FederalState grant-in-aid system of health, education and welfare, and
believes future bottleneck will not be money alone hut lack of
\:
trained personnel as well.
*
^
;L
govern-
non-governmental
^sdomnand^skills
1
will increase
this
.
consider
wisdom and skills, of all nt
of
of
.
-
tance
places
Saye t0 both at home and abroad. \
-
latest data that public welfare expendi¬
about 8.6% of G*N. P. for 1955-56 and expects/
tures were
and
abstract:
.
basis of
on
to
:
Noted Michigan University expert concludes total U. S. A.
public and private social welfare spending is larger and more
significant than generally believed and estimates that it reached
about $60 billion.in 1957, or 14% of G. N. P. Prof* Cohen
>
the
relationships between
Work, University of Michigan
t
'vV
arrangements,
roles of the
State and local govern-
mental
of Public Welfare Administration
public
define
come
the
By WILBUR J. COHEN*
Professor
of
3pehts.-T-not we
always an easy task, nomic, political institutions
And when
'
Expen ditures and Programs
? "
must
Federal,
:
'
use
we
Trends in
11
(411)
Social welfare expenditures from
'
ac-
UCVi(UC UWU ■ dC-»
■
m
al Product has
been
<
3%
year
-
i960,
Our
since
during
t' !
;
ropolitah
i
wenare
state
.
(whatever
:
education, mid; welfare amounted•
that might mean). But in the good
pragmatic pattern of
tions to our changing needs that
a°ed and
tne
•
of
mainland,
the
areas,
Ricans
to
influx
the
and the continued tlow
have
on.
01
persons.,..*
Wilbur
Cohen
J.
more:
more
<
.
roads
ioaas,
more
moie
;
*
•
of Social Welfare
created all sorts of social
needs which press for immediate
solution.
We need more schools.
'
of^the dSter
enemv
S
have
c r
the last
decade. If our
*
basic changes in
^ttpecure as mstitutionahza-
and ngidities take hold. Re\ersing what Sir William Beve-
Puerto
.
;» oyer
'
W f
in
.
,
.
to about 2.4% of the grpsk national
In 1929, just before-the
heritage
our
Sd
'
,
oth-' Product.
.
.
advent of the sreat dpnr©^<iifuV thii
n
e^.^t.^reas^1y.tn..a,.socllUV
.
easedt,
about
20% >
in
•
basic
make
a
setbacks, * real
^family
in-.
: kcomes
xne
_
the^ d&abled-thJ'growth oTsub-
year.
Despite
temporary
.
.
number of children
past 10
years it has
4%
„.
product, the growth of
population - especially the
...••
our
the
'been
expanding labor force and:,
national
tional
a
:
Expenditures
Ends
-
Means
and
It
welfare institutions since the turn
a
number of
activities will
an<j relative to our total economy.
in. discussing
Rockefeller Report issued
The
,
m
.
social welfare
for
so-called "controtuscussing trends in sociair-•
xrenas in social Pr?vement, the +ndav revolve less
heds rWeltare programs, the first impor- versmr. issues .toqay reyoive^ less
oeas,
'
hosnital
no&puai
clear, from
of the century,. and the proposals continue to increase both in dollars
being considered for further im-
.
is
As we scan the Srowth of social studies,2 that public expenditures
w
aaw
in April, 1958, .made, a nuQiber* of
^
I .
around ,the fundamental, "princi- recommendations' for changes in
I4"1 laaor to note is the magmof assumntion
social
JnS
^
economy <?on-
!
and
tinues to grow during the
next 10
rate it
years, by at least the same
(
somewhat larger rate
.
J £°re us in determining the c Jqr
-.
of
doctors,
more
we
more
r tude of
nurses,.
"
will have'
Sessions.
I1nyd^wr^?nff^eqc6lmse:,
••V*°Sei
housing. We want
social workers—and
have
we
—
more
teachers,
and
,
facing
'
t
very
^
^
;^:u
..
.
u„.,„
%
because '- while
ire
xoiai
substantially
re-
^
.
•ass.umpiion. or social re
onv
expenditures—puonc
cpmple_x; i s s ti e s
anct
hei/iw
concern
glVCJl.
VV.v
.
WIMi
SinfAa r»nr»bpd nbnilt <tRO HilliAw
^a^®®. 5eached_ about $60 .billion
''
/J
^extensi^^^ ^cbild ^wel- v
haYe^mOre
services;
and
services
for^n
'
"
•-*
•
..
.oYt
some of our health, education-, and
lnr
eludes projections of the public
.sP,9bsityWy.£nd' more, around such- welfare programs? The report
alternative
as
about'incentives
the rela
Continued
■'
jar proposals in
ClulUIlb
111
relation
Wllien
pcisuilb
on
.
^?C" tionship between governmental
our educational, system, our social ^yibes ip thp fields qf health, edu- - a n d non-governmental agencies-,
insuranCe
programs/r. our hcalth O^tmii, and welfare in the United an^ the proper timing, of particu-
enter-" fare
fL" Ij.
to other
2 Veterans'
Benefits
in
the President's
Commission- o^i Veterans"
Oiidixiif
,
.
^
nfliAva
1
~
to
tunity.,
banish many more of
adults' and .'
health needs of both
through the centuries. For
the first time in human history
thiidren." We need more t neighborhood centers,' counseling and
kind
a
great nation will have the maresources,
the wealth in
terial
-
,
1
being, to eliminate hunger, and
scarcity and proverty, to provide
a
decent level of living, for a
ahd
rec-
reational
programs.
This
list
could be expanded at great length.
But more and more we are coming to recognize that while there
people. Life may no longer
be, for abyone, a grim
have
Witco Chemical
to
\ struggle for bare existence.
*
200,000 Shares
:
remains much to do, and there is!
much more than we can do; than
we are doing, we can't do all we
"Our society also will have, or want to de ad at. once. Moreover,?
can
have, .'the knowledge
and money alone ts: not the sole limpower to abolish—to a far greater hmg factor.
Increasingly? it ]na\
extent than ever before—age-old become of taf importance.
The
whole
4
rehabilitation * services,
.
burdens of disease and disability
r
^
Company, Inc.
.i.
Common Stock
(Par Value $5 Per Share)
lack of trained porsopnel. may-be?
*We will have far greater an even more important bottleresource and opportunities than
neck. .Consequently, • we niust,
#ver
before to erase ignorance establish certain social priorities
and to encourage more effectively in determining-what we want to
the intellectual development of and can do first, how we are go-^
many more of our young people.
111 ^ to distribute the costs, how
-t,
we obtain the necessary trained
"I spy our-society will have personnel, and through what inthe resources and the power to do stitutional
means we will try to
these things. But will we Use this achieve our objectives. ' '
and1 pain.
'
-
.
.
Price $22.50 Per Share
^
J j power—and
WiU
it wisely?
use
have the vision to assign
we
the
proper priorities for the investment of the resources available?
WiU
we
take
sufficiently long
a
At both the ' professional and
political levels^ we will have to
give more weight in determining,
priorities to the training of per&0nnel
as
well
as
the
'
view in setting our goals?
are crucial questions.1
1
These
.
'
f
>
-
•
Establishing Social
As
•
,
and
Priorities
attempt to build upon
expand our existing social
we
welfare programs^, an e.ver-present
factor
comes
into
play with in-
*An address by Prof. Cohen before
Conference, on Sounds Welfare*
Chicago, 111.
'
"
•
•
1
"Some Suggested Adjustments in the
S S;
American
Philosophical. Society.
This announcement constitutes
most
offer to sell
nor a
•
.
Smith, Barney & Co.
Blyth & Co., Inc,
evaluate
private arrangements, we must giye attention-to
'f
.,
•
,
we
consider
may
,
July 30, 1958
-I
L
■
I
<
\
^
Goldman, Sachs & Co.
The First Boston
Lehman Brothers
and
When
offer
Corporation
,
Kidder, Peabody & Co.
the many kinds of efforts of m-
enterprises.
an
the undersigned
■
»
private or public quspicies »or
combinations of them. When
f«rev and' commercial insurance
us.
■
.
qp-
families and the
activities
of: voluntary
associa¬
tions, employers, unions* collec¬
tive bargaining,
ther non-profit
associatipna; in health and wel-
solicitation of
legally offer these securities in compliance with the securities laws of such States.
i
i
>
V
•.
'.
'
'
'
'
some
dividuals
an
from the undersigned only in such States
inay be obtained
propriate institutions for dealing
with our needs whether through
we
neither
buy these securities. -The offer is made only by the Prospectus, copies of which
to
.
'
.
White, Weld & Co.
..
3 The Challenge to Amenta, its eco¬
Sqctal Aspects, Doubleday and
Inc., New York, 1968, p. 78.
delinquency
the burdens that-have beset man-
24
Aprii^ilse^pp. tiffiSii s^™BraS&y.
nomic and
-
gage
the
United
States, Findings-and Recommendations of
•
services produced in the
the same broad goals and philoso- of n^tiqn^i income, are nearly twice those
(the gross national product), phy: may have strong differences °
*
-
'nnKic.
+UA
existing expenditures for
purposes
We u9t only want to expand
lllc ^cclylttb
;
^clearly-:
the hew age we are
"In
1.
,
us
these
-
social welfare \PE°g am
expenditures.
'
J services, and to improve -l.... I:.1-■
our pub-
our
'
c
"
Wertbeim & Cow
i
The Commercial and Financial Chronicle
(412)
12
meet winter demands,
The Demand for U.S. Crude Oil
By MINOR S.
Independent Petroleum
Independent oil
Association of America, Tulsa, Okla.
oil
demand outlook for U. S. crude oil
over
recent and current
voluntary
Mr. Jameson, however, ex¬
presses concern over world oil surplus which continues to pose
serious problems and trusts that Federal Government will con¬
sistently encourage domestic industry. Author assumes 1954
import level to arrive at average domestic production figures
of 7,430,000 barrels daily for October 1958 through March
1959, and estimates 7,130,000 barrels daily for same period if
Government continues present voluntary import plan—com¬
pared to crude production rate of about 6,330,000 barrels daily
during June, 1958. Primarily blames increased imports and
inventory stock liquidation corrections for reducing domestic
oil production to 1952 level—despite increased domestic and
export demand of more than 1 million barrels daily.
ther
The matter of fur¬
restrictions on oil imports is
also
under
Breaks Down Required Oil
ever-changing relationships besupply and
demand on
state conservation practices.
This
problem has presented unusual
difficulties'during the past 18
months,: with U. S. crude oil prodilution
duction hpinf? severelv curtailed
being severely curtailed
since February of this year to the
1952 average rate of production.
tween
level^rf six
the
mated in Table II:
The level of imports
1
'
plan was
policies
announCed to date under that plan,
"
k:o
vears
in
the
effect
cession
d i
s
re¬
oil
the
continu¬
of
ance
emer¬
ship¬
gency
ments
exca-
juciiia
ported
i
Minor s. Jameson, Jr.
to
Western
the
outlook
the
for
Committee
the
demand
forecasts
Eu-
rope
during the Suez crisis;
burdensome and wasteful accumu-
While
a
gas
has
is
re-
on
Supplies
Energy
a
that natural
fact
supplied
increasing
and the busi-
an
share of total energy
ness
recession has slowed
These
with
!ng
hmmary
figuies, closely approximates the
crude
current
continues to pose serious and difproblems from the stand-
ficult
supply
and
demand
during
the
petroleum industry, the oil-producing states and the nation con-
eludes
(a)
domestic
tinue
to
be
confronted
with
a
as to future oil and
supplies for our expanding
economy and national security. To
maintain self-sufficiency as to oil
and gas, policies Of the Federal
Government must be consistent in
their objective to encourage domestic exploration and developoil ment of these essential resources
crude
basic question
gas
production, (b) domestic produc- so that adequate supplies will
tion of natural gas liquids, and continue to be available under
(c) imports of crude oil and re- sound state conservation programs,
the consumption of oil products, fined products.
It is significant
it is also a fact that total domestic that the forecasted total supply
Reeves Adds Four
and export demand in 1958 ex- required from all sources of 9,ceeds the demand in 1952 by more 535,000 barrels per day represents
(Special to The Financial Chronicle)
than 1,000,000 barrels daily. The an increase cf more than 1,000,000
BEVERLY H1JL.JL&, Cai.—cloyd
increased use of natural gas and barrels
daily over the current E Canad
Jr
Julius D_ Gilbert,
down
^
the
business
duced
oil
have
recession
demands
below
re-
what
they otherwise would have been,
but this is only a partial explanation of the current situation.
>
There
two
are
principal
that
he
likes
heard
reasons
for
a
1952 rate of crude production during recent months, when
crude
oil
and
refined
®uPPly oi 8,450,000
bairels
daily
f°r the month of June, 1958.
few
from
me
ago
more
radical without Hill's influ¬
the Board of
ence.
Governors de¬
dollars like
cided
that
we
should make
bid
for
-
is
the
correction
inventory
had
the
factor
his small district in real estate and
insurance.
respect of the people in his dis¬
trict, a truly great representative
The club
in
es¬
lawyer, who at the
The
servqd. nine
tliink nothing pf
chartering
going off to Florida
causes a
It
of
a
condition
a
plane
or
Ber¬
week-end of golf
which
lot of social unrest with
a
practically
makes
me
a
Communist.
the
Anyway,
effect
of
reducing
has
the
market for domestic crude oil by
at least 500,000 barrels per day.
In addition to these two principal
l
....
v
,
T
„
tyiRiam J. ONeil and Robert J.
>
deal
has to pay
$750 with
making it $900.
let
.to
was
Well
tax of $150,
a
'
;
'
sir, the real estate
dentists
and
the
doctors
particular
crude oil production since Febru¬
to the level of six
years ago,
by Mr. Jameson before In¬
terstate
Oil
Compact Commission, Salt
Lake City, Utah, June
25, 1958.
of
would
18
63
has
in
years
Congress, It was hard, if not im¬
possible to stampede O'Hara with
false, crusades.
the facts and
He always wanted
was
disturbed
never
by the hysterical cries of' the
cru¬
saders, regardless of their hue.
the
esteem
and
five terms
He
V
men,
who
man
has
A
of
his
colleagues.
•
the
one
came
10 years in
or
to
Congress.
Congress af ter 16
years
in the California State Legislature.
He
was
onee
of' his home
mayor
made
million
dollars out of selling
didn't
know
of
Congressman
a
This is the attitude, of course,
that brought about fascism in Ger¬
I have seen too much of it
in this country.
many.
would
I
like
to
tell
of
Congressmen, men whom
wealthy fish man could not
buy for a dime a dozen, but men
our
the
whom he couldn't buy.
who have to contend with wealthy
fish
give
tude the lie.
atti¬
this
all retiring
at the end of this Congress, dis¬
couraged, I think, because they see
no hope for the Republican
party.
First,
there
is
Dick
terms or 32 years in
Congress at the age of 67.
It is
doubtful if the country has ever
had
a
1957-58
1958-59
(1,000 B/D)
Domestic and Export Demand
Seasonal Reduction in Total
Product Inventories
Total Required
Supply
11 *
9,735
(1,000 B/D)
9,965
,
BOSTON, Mass.
is
Rackemann
Stone
&
—
Co.,
10
William M.
with
now
Hayden,
Office Sq.
Post
With Central States In v.
able and conscientious
(Special to The Financial Chronicle)
MANSFIELD, Ohio—William J.
Ward
is
with
now
Central
With
an
independent income, he
C. W. Geisel Adds
entered World War I and had bat¬
tle
experience. As
a young
(Special to The Financial Chronicle)
lawyer,
LOS
ANGELES, Calif. —James
out of Harvard, he served as pri¬
vate secretary to Governor Gen¬
II.
Ward
eral Forbes of the
C.
W.
served
Philippines.
innumerable
on
cover.
(%)
his
friends
2.3
230
He
commis¬
man
9,535
I
—430
9,235
'
300
3.2
is
now
Geisel
&
and
were
amazed
that
a
639
am
—Required Oil SupplyOctober, 1958-March, 1959
Assuming Imports
Under Present
At 1951 Ratio to
Gov't Program
Crude Production
(1,000 B/D)
7,130
(1,000 B/D )
7,430
Domestic Natural Gas Liquids
855
855
Imports, Crude and Products—
1,550
1,250
9,535
9,535
J. A.
Hogle Adds
(Special to The Financial Chronicle)
LOS
ANGELES, Calif.—Robert
of
J.
A.
Hogle
to
Co.,
&
the
507
West Sixth Street.
Joins E. F. Hutton Staff
(Special to The Financial Chronicle)
LOS
ANGELES, Calif.—Sanford
Wolfe
S.
has
connected
become
with E. F. Hutton &
South
recognized.
not taking the four men
South
Spring Street.
who always spoke in under¬
so
with
affiliated
Co..
Company, 623
Spring Street.
With Oscar F. Kraft
I
(Special to The Financial Chronicle)
have in mind in the order of their
will
Six Months
Domestic Crude Oil
flattered
worth in the
Assuming Imports
Total.
was
,
TABLE II
.
He
statement would be
—500
States
Investment Co., Walpark Building.
servant.
the
Increase
(1,000 B/D)
j
(Special to The Financial Chronicle)
16
more
all
Wiggles-
worth of Massachusetts. He is con¬
cluding
their arrogance
With Hayden, Stone
are
They
and
men
the time.
about four
Congressmen who
Forecast
.
*An address
age of
or
staff
factors, production of natural gas
liquids has increased by roughly
200,000 barrels daily since 1952.
Summarizing the current sit¬
uation, the reduction of domestic
ary
year
big, heavy set, gruff man, he has
nady was formerly with H. Car- fish merchant would never under¬
roll & Co. Mr. Waters for many stand the arduous work this has
years
was with
Adams-Fastnow entailed. It is inconceivable in all
his work that Dick would have
Company,
ever made a demagogic statement
to get publicity. "Time" magazine
TABLE I
Sis Months
Oct.-March
a couple of years ago had him on
Actual
gas
been
burdensome
which
•
O'Hara
be the ranking Republican on the
powerful House Interstate and
Foreign Commerce Committee. A
members
me.
•
,
Now, there is Joe
Minnesota, who next
and
men
muda for
democracy.
our
"
up
tists, real
lawyers.
He has the wholesome
C. Scoville has been added
products
has
million
a
country club fish
my
United States. Natural
approximately
500,000 barrels daily, or 50% as
compared with the 1952 rate. The
principal
made
never
far
been
merchant, but he has prospered in
a
mostly of
wealthy
doctors, den¬
and
He has
have
mem¬
made
tate
would
Sena¬
tors and
gress.
it
Requirements for U. S. crude oil D. Waters, Jr., have become asso- sions which were the aftermath of
In Congress, for
during this forecast period will ciated with Daniel Reeves & Co., World War I.
depend on the production of nat- 398 South Beverly Drive, mem- years he has been next to the
urai gas liquids and on the volume bers of the New York and Pacific ranking Republican on the House
of foreign oil imported into the Coast Stock Exchanges. Mr. Ca¬ Appropriations Committee and the
increased
other
been
never
think
liquids
oil consumption shows an increase production is
expected to supply
of
more
than
1,000,000 barrels about 855,000 barrels daily of the
daily since that year. Imports of 9,535,000 barrels daily required to
have
of him—he has
headlines hunter—and you may
we
have
had
some
very
radical farm legislation.
Take it
a
to
a
way,
production rate
about 6,330,000 barrels per day
committees torecast.
point of both national policy and
The outlook for U. S. petroleum state conservation programs. The
inventories;
it
were
demands compare
estimated
increased 1958-59 winter period is sumU.
S.
productive capacity; in- marized in Table I:
creased production of natural gas
Based on anticipated demands
liquids; and increased importation for petroleum products and estiof foreign oil.
Obviously, all of mated seasonal changes in inthese developments have a bear- ventories,
total required supply
ing on the demand for crude oil during the six-month period Ocand the level of crude production tober, 1958 through March, 1959
at any given time reflects the inis forecasted to average 9,535,000
fluence of such factors.
barrels daily.
Tetal supply inof
lation
fact
play golf, although he can't. Any-
..
six-month period.
for this
the
in
April, 1958 report of the IP A A
Supply and Demand Committee,
staking into consideration develop,
demands;
the
town, Sebastopol, Calif., a man
a
fish, generally thought well of by his
fellow citizens, and justifiably so.
were
in
determined
opposition.
Qf
Their attitude, frequently and vo¬ Always happy natiired, he likes to
during the month oi June, 1958.
cally; expressed,was that Con¬ play golf, shoots in the middle 80's
sihee the preparation of -Although the demand outlook gressmen and Senators were worth and can run a younger man to
tjiat report. In this connection for v s crude oil shows a Sub- a dime a dozen. The fish man, ex¬ Meath going around the course.
U should ,be,noted that the total
stantial increase over recent and
Without seeking the headlines he
pressing a contempt for any man
demand
for
petroleum products
,
t depressed levels of prohas served ably.
V
who couldn't make a million dol¬
dunng the second quarter of this
These are a fair representation
duction> a world surplus of oil lars, said very
articulately that he
on
the
on
for
March, 1959. This outlook is based
the
of
business
sm^rt
„
"
energy
market;
,
.'demand for U. S. crude oil during and Resources Policy, the demand
the;'coming six* months heating for domestic crude oil is estimated
psrioc!,;., October, 1958;, through to average 7,430,000 barrels daily
.
of
natural gas
.
.
„
of
son
I think now of the lovable, good
U. S. crude oil production, as rec- Congressmen and Senators in, to
This brief aTlalysis of recent and ommended in the Februaiy, 1955 a limited extent of 75, for $100 citizen, Congressman Scudder, who
current trends provides a back- report of the President's Cabinet initiation fees whereas anyone else is retiring at the age of TO, after
in-
use
creased
the
continuing
stricted to the 3954 relationship to
ln<>rMfiP
% Increase
ground
_.;„u
under the
Government voluntary
estimated on the basis
present
an
Your correspondent belongs to
Washington country club by rea¬
bers of Con¬
imports
hppn
factors
mnnv
supplies during the corn¬
ing winter period, based on two
assumptions as to imports, is esti¬
„
1952 Production Level
has
Supply
required
nlirv
The reduction of domestic crude
Droduct^rvto
of
1,000,000 barrels
of
Lri
breakdown
U. S. oil
a
months
increase of more than
daily in oil de- Jn bodl import assumptions, conman 's, can be attributed primarily ^deration was given to seasonal
to increased imports and inven- Changes in fuel oil imports. -tory corrections. Willi the excepi
mi
a
ponfinuntion of the
Won of inventories on the West
v
import
Coast which continue to be exces- Gove, nrn^t s
five, further inventory corrections
should no loneer be a factor in the ^
should no longer be a factor in the
7,130,000 barrels daily for the six
market for crude oil in other do- 'A™:?'™ "n'JZuLf"to™"thiniw£
mestic areas during the months
It
despite
important element in pe-
troleum conservation is the effect
.
the
in
consideration
Congress.
The
of the News
By CARLISLE BARGERON
addition,
In
that program.
of
One
program.
imports. of finished products are
not subject to allocations under
depressed levels of production.
Washington
Ahead
this
for
oils
unfinished
and
period have not yet been estab¬
lished
under
the
Government's
official perceives substantially higher
group
From
imports during the period October,
1958 through March of next year.
Allocations for imports of crude
Executive Vice-President
'
Thursday, July 31, 1958
.
but, under
present circumstances it is not
possible to determine the level of
JAMESON, JR.*
.
.
raw
slightest, but now we
Bill Hill, lanky,
boned member from Colorado,
tell
about
retiring at the end of nine terms
or 18 years, at the age of 72.
As
the recent ranking Republican on
the House Agriculture Committee,
Hill has long been a conservative
influence in farm legislation, has
been Secretary of Agriculture
Benson's greatest strength on Cap¬
itol Hill. You probably
have
never
LOS
ANGELES,
Frederick
J.
associated
with
Calif.—
is now
Baumgarten
Oscar F.
Kraft
&
Co., 530 West Sixth Street.
Lloyd Arnold Adds
(Special to The Financial Chronicle)
BEVERLY
ard
F.
HILLS.
Davison
and
,
Cal.—Rich¬
Robert
E.
Simmons have been added to the
staff of Lloyd Arnold & Company,
364
North
Camden Drive.
Volume 188
.
U
'
;
•
Number 5764
*
.
.
The Commercial and Financial Chronicle
.
'-i
,
'
'
U
•
.
(413)
•
be
Management's Nightmare
Burroughs
Corporation, Detroit,
Mich.
cussed
by Mr. Eppert in advising how to cope with manage¬
nightmare—rising costs, inadequate revenue and shrink¬
ing profits. Now, during these sagging times, he declares, is
ment's
operations, install
jobs created from
For
had
months
some
flood
a
recession.
of
We
now
we
comments
have
looked
from the front and from the
and
have
on
the
at
it
back,
sideways.
We
is it
asked,
This
we
expect
downturn,
upturn,
a
orr
in
down
and
others.
printed
"
is
now
r
to
Rar
in
R.
Eppert
picture,
marketing
the spot. And
that
on
rightly so. For the fact that in this
period attention is almost by re¬
flex action turned to marketing is
sign. It is evidence that
professional marketing manage¬
ment is recognized as the key to
business growth.
good
I do not under-estimate the
of
portance
record
may.
im¬
manufacturing. The
be measured in the
continuing increase in American
gross national product. In the 75
years
before World War II we
doubled
output
our
about
once
24 years. Since World War
growing at a rate
every
II
have been
we
which
promises to double output
me add,
this
18 years. And let
every
few
good
The
dose
other
comments
sell"
the
have
I
in
a
add
to
me.
the best authorities agree that
I
it
made
best
were re- ;
own
store
territory.
emphasis I would
say
of
case'
in
now,
With
there is
advance
of
be
can
this potential rise in output
opportunity confronts us—an
opportunity of greater individual
In
an
for the hard sell.
New
Selling
Concept
What, then, is this new concept?
does not replace salesmanship.
On the contrary, it applies it more
effectively.
It * means
selecting
It
salesmen
more
training them
means
carefully. It means
efficiently. It
more
providing prompt
product
service and maintenance. It
means
guiding
theni by research into
opportunities, supporting
by sales promotion, adver¬
tising and public relations. In a
word, it is replacing improvisation
with planning.
market
them
Salesmen
feed
on
enthusiasm.
They must be optimistic. They
are
interested
what
this optimistic confidence we must
mstill into our sales force. Mar¬
tion to its realization. An increase
however,
cannot be completely oriented to
a single and immediate objective.
in
output
While
they
as
we
is
meaningless
market
it,
and
condi¬
except
market
it
profitably. The corollary to mass
production is mass distribution.
The question I propose to ask is, can
will
or
we
do
we
is
what
neces¬
are
sales force to sell
must
be
stimulating the
a product, they
preparing to obsolete it.
While they seek to increase reve¬
they must make certain that
are increasing profits. While
they are satisfying the present
nue,
they
industrial
progress is translated into con¬ wants of customers, they must be
sumer
benefits. That is the cur¬ studying
what
in future years
rent
and
future
challenge
of they might want.
insure
to
sary
that
marketing.
the
In
us
the
is
years
many
have
things
pare
few
past
happened to
for this task. Not
work
of
the
pre¬
least
American
in
size
cannot
we
waste
natural
we
and
afford
of
the
resources,
human,
that
both
inevi¬
tably result from acts of ignorance.
As
the
current
recession,
has
re¬
minded us, we have added
greatly
to our fixed costs and raised our
break-even points so that
drop in revenue
drop in profits,
a
bring
can
a
small
large
or indeed, wipe
altogether.-'j1
them out
We have been
enjoying some of
the most prosperous years of our
history,Some industries have suf¬
fered from the hazards of
change;
but
in general the
economy has
flourished. It is true tlpit general¬
about
the
4
light of
our current
behavior
of
may^ in > the
knowledge be
of
many
our
major in¬
dustries have been less profitable
than before the war. And if you
it
the shelves
on
the
customer
suade
was
of
him
not
to
quite
remember
for selection by
directly to per¬
Perhaps it
or
buy it.
as
but my point is
*An
us
issue
recent
a
of
Business Review.
the
broad
can
document in
the
They
what
scale
our
Harvard
prove
most
own
of
on
us
simple
that
as
that,
we were
too
enter¬
American.
by Mr. Eppert before the
Marketing
Association
Con¬
ference, Harvard
bridge, Mass.
Business
School,.'Cam¬
industry's
the
a
pended
I
on
have
of
business management.
Today,
a
meant
young
that
children
our
should get the
men
and
essen¬
tials of education rather than the
frills, I could not
agree more. And
by the
same
den
schools and colleges with
of
teaching those things
token let
not bur¬
us
our
tasks
which
better
be
taught else¬
those subjects
that can best be learned by ex¬
perience and ; on the job, or at
what.
,V'..
least concurrently with the job.
In the field specifically of busi¬
Marketing Management's Growing
ness education, America has been
Complexity
long the pioneer. It was in this
In small businesses one man can
country that the various segments
fairly easily keep in touch with ; of the
subject matter of business
all operations. In a larger organ¬
were
first, identified as fields of r
ization it is impossible. The
brillif • study. The contribution made by ant amateur
may prosper for a business schools over the past half
while
on
the
basis of l uck y
century in the teaching of: the
hunches. In the end he will go
principles of marketing, account- y
down before the complexity of the
ing, finance, labor, relations, and f
situation., he confronts.
Not the so
forth, has been immense. And;
ability to do everything one's self,
yet something has. been found;
but the power to coordinate and
lacking in this academic discipline.;
plan is now essential in top man¬
After World War II a new de- :
agement personnel.. It is essential
parture was therefore made at the;
especially in marketing manage¬ Harvard
Business
School, i The,
ment. .Insofar as they have as¬
pattern as it had existed up to that j
sumed a place of top management
time was changed. Abandoning to
responsibility,
their
perspective some extent The old categories of
cannot be narrower than the total
marketing,
finance,accounting
organization.
Dominance in the and the
liite, Harvard focused its
competitive struggle will belong
teaching on the process of man¬
to men and organizations who use
agement decision as a whole in
most
effectively the
total
re¬
discussions of real or hypothetical
consumer
mo¬
human
can
where,
including
■■
-
As
the pace
and
well-
of competition in¬
creases, as the complexity of mod¬
em business grows, the search for
business
situations.
Harvard
was
endeavoring to go beyond the
training of specialists to the de¬
velopment of men with both de¬
tailed knowledge and broad per¬
the midst of a technological revo¬
strength against lution which has made us change
higher taxes and our permanent way of life. We are
reserve
effect
of
specialties and at the same time
integrate them, with the need to
plan for the long term, with the
testing which system is the more need of a business leadership that
important element in those creative, which system best an¬ is aware of community and na¬
rising costs is, of course, the costs swers the hopes of millions still tional problems, and indeed can
of research and development. Fig¬
imprisoned by poverty. We are make a constructive contribution
ures
for earlier years are not as
testing which businesses can more to them.
accurate as more recent figures,
The new relationship of business
quickly respond to the opportuni¬
but it has been estimated
to the great issues of our day is
that;
ties being opened up by new tech¬
industry more than doubled its
strikingly exemplified in the inexpenditures for research and de¬ niques. To win these contests we ternational field. Parallel with the
velopment between 1946-1953. It must stretch our capacities to the growth in American political lead¬
An
well have reached $8 billion utmost. This is true of our states¬ ership, American economic affairs
have become world wide. Our ex¬
To an increasing extent,
men.
It is true of business man¬
and development is be¬
port trade last year was greater
coming the motivating force of agement, and certainly of market¬ in value than the total industry
the economic process. In our own ing
management. Marketing of non-farm building. It was as
industry, where remarkable ad¬
great as the sale of all steel mill
management has won a claim to
vances
have been made, growth
products in this country.
Ever
priority in terms of its experience more
or decline is in a real sense keyed
rapidly our industries are
on the firing line.
They will not eating up our reserves of many
to technological innovations.
But
this costs money. It costs millions deserve it fully except by the ef¬ natural resouces, with consequent
may
last year.
research
of dollars. In fact, Burroughs Cor¬
fectiveness of
poration alone has spent over $38
lines planning.
million in the last three years in
the research and development of
commercial products.
2 The
time when all de¬
persuasive selling. This,
stressed, must always
the liberal arts at schools -and
colleges is necessary. If by this is
rising costs.
for
as
for
by
ics,
American
Growth
in
McGraw-Hill
1958.
<
Economy,
1975,
Prospects
prepared
Department of
Econom¬
1965
and
,-
their
behind-the-
increasing dependence on sources
Continued
on
page
an offer to sell nor a solicitation of an offer to buy
of these securities. The offer is made only by the Prospectus.
This announcement is neither
any
July 29, 1958
NEW ISSUE
2,000,000 Shares
Townsend U. S. & International Growth Fund, Inc.
A
A
Special Situation Fund
non-diversified open-end
investment
company
The Fund, which is international in scope, is
not
need
average
or
want current
income but who
with leverage potential.
designed for investors who do
are
willing to take greater than
risks with the hope of obtaining possible capital appreciation.
The Prospectus and public offering prices may
any
change.
was
fields
would be foolish to over-estimate
Thus, market¬ business at all in 1965.
It
is sometimes
said
that we
ing management must be warmly
enthusiastic and colding analyti¬ have lost the risk-taking spirit of
cal, inspiring the sales force with
120 Years of Corporate Earnings, by
pride in the product while prepar¬ Sidney Cottle and Tate
Whitman, Har¬
vard
Business
ing to replace it.
Review, May-June 1958.
There
wider
ever
r
the product
address
Education
men
of
capacity becomes more spective uand judgment."
prises, that volume is no guaran¬ urgent. The pressure for
Thus our. schools and colleges
better,
tee of profits.
It is impressive to even superlative
performance, is have been struggling with the
read the story of the growth in
increasing both in business and in changing needs of business, with
gross
national
product,
but
it the nation as a whole. We are in the need concurrently to develop
Able salesmen
do
not
neces¬
Research
and
development is
sarily make good managers. The the key to future markets. What¬
jobs require a different set of ever the risks involved, we must
qualities. If selling is an art, mar¬ take them in order to stay in the
keting management is a science. competitive race. Sales of new
necessary
into
ment, I refer you to the careful sources of a rounded
study i by Cottle and Whitman in balanced team.
is essential for man¬ chinery and transport equipment
And by 1965, of
those days when distribution agement too, but it is suicide if i n d u s t r i e s.2
meant quite simply sales, whether it obstructs product improvement course, a much larger percentage
of total sales will be products not
in the form of merchandising or .or
the discard
of the
product
on the market today. If we are not
specialty selling. The sales force when obsolete. Persistence is good
received the product from manu¬ too, but it is dangerous if it be¬ developing now some of those new
facturing, and the job was to place comes persistent in opposing products, we may well not be in
Most
Business
say
relations, inter¬
im¬ national politics, and I don't know
Marketing Association. New con¬ The salesmen must make his calls products, we are told, will double
cepts, a new philosophy of mar¬ persistently. He must allow noth¬ from 1955 to 1960, and by 1960
will account for 15% of total sales
keting have been developed to ing to dampen his ardor. He must
meet more complex business con¬ be supremely confident. Belief in in the chemical,
electrical, ma¬
ditions.
would
••
organiza¬ tivation,
of
revenue,
management,
a
tions,
mense
past
no
keting
fulfillment. But there is
doing
all
primarily
in
selling
they have now. And they
bettered if we understand the re¬ are confident that their powers of
wards of growth and are prepared persuasion will close the deal. All
to make the necessary effort.
this is good. It is indeed precisely
rate
recent
of
wish documentation of this state¬
Explains
I
but
somewhat rash; but this much is.
clear. Despite large increases in
the
substitute at any time, and partic¬
ularly
be
interdependence, with advanced physics,
growth
readers, corporate' earnings
indifference
or
of
day in
the
as
may
He
penalty
In the
wrong.
newspapers. And'
whole file of hor-.: izations
my
of
salesroom
general
doubt
management is
a
.•
a
hard
histories
a
-
the
no
the
misunderstand
rrble examples sent in.by
But
whatever
there
to
emphasis
ahti-recession legislation
.
some
' V-.\
cure.
a
"the
on
movement';
up
Our
product, not the bene¬
that
not
Detroit,
r
ment"—mean¬
a-
corresponded
old-fashioned
could
ing, I take it,
crook, whether
needs.
don't
situation
an
move-
the
or
the
increasing
salesmanship
is a highly essential
quality. There
is, in fact,' nothing in the current
.
indeed "a sideways
they
Now
-
the immediate
can
not
fits to him.
a
depression? In
future
by hook
depth.
top management committee is
could perhaps progress
by way of likely to hear discussions which
trial and error. Today, with our involve such diverse subjects as
things
not customersought to shift the
We
was on our
a
or
goods
or
increased
production,
oriented.
customer's
have
recession
often
in
on
benefits.
consumer
grandfathers.
rather
knowledge. We used to think that
The growth in the scale of busi¬ knowledge of
engineering, manu¬
ness
organizations has added to facturing, sales and finance com¬
our
ability to do things, but it has prised the appropriate background
new
translated into
our
be
Rising Costs
products, at better values, aggres¬
sively sold, and believes recession will serve healthy purpose
of improving ourselves so that we solve the current
and future
challenge of marketing by making sure that industrial progress
is
is
more
must
us
cost
cutting equipment,
research and develop for future
markets, increase selling im¬
pact and streamline organization for greater productivity. Sees
new
now
salesman
that yye take fewer
risks,,,
How can we find and train such
they are generally of vaster men? How can
we; ensure they
personally effective, but he will proportions. They could experi¬
have both specific skills and in¬
be hobbled unless
previously the ment from day to day and recover tellectual breadth? What educa¬
right decisions have been made in quickly from a false move. We
tional
background
should
they
research and
development, prod¬ may suffer the damage of a wrong have? What
experience should we
uct
decision for years afterwards. It
planning,
market
analysis,
provide for them? I do not pre¬
sales training,
advertising, and so is not surprising, therefore, that tend to have all the
answers, but
on.
To the personal skills of the management is
consistently look¬ we must find them ever more
individual salesman we must add ing for more and more data to re¬
surely. On the question of educa¬
the depth and breadth of the or¬ duce the possibilities of error. And
tion some say that more emphasis
ganization that stands behind him. the search for certainty is taking
Necessary improvements in creative selling, challenges to sales
and marketing management,
growing need for men of capacity
and improved business education are some of the
subjects dis¬
the time to review
But
The
supported
By RAY R. EPPERT*
President,
primary.
needed.
13
as
may
lawfully offer these securities in such State.
Principal Underwriter
FIF Management Corporation
950
be obtained in
~i
State in which this announcement is circulated from only
such dealers
Broadway, Denver, Colo.
Telephone: AMherst 6-2671
*
On the East Coast, contact
FIF Investing Associates, Inc.
500 Fifth Avenue, New York
36, N. Y.
Telephone: LAckawanna 4-8953
27
The Commercial and Financial Chronicle
14
fessional readers disclaim -any in- ;
i
Thursday, July 31, 1958
.,
-
bow this
-
accomplished, Cleveland adver¬
be concise, accurate and in good taste*
shares from
assets,
which
and corporate
challenges faced presented in a tangible way.
The
of
crux
the problem is
the most ef¬
fective
methods to use
its
to communi¬
other
and
presented
spective.
rity analysts
offi¬
data
technical
The
in
able
mental fifth column Within their
cers
executive
proach
corporate thinking.
the
are
4-LS
vv\
n/wvN
n
_
/MH
n
w\
nl
1. 1
Aimri
_
"l_
1..?
J
_i
_
_
!
i.
.
.
1
P
/"I
_
Hess
announeea.JUiy. 15
Major Problem Cited
problem of
commu¬
FMdley,
should
communicating from. Most corpo¬
rate
officers, with the possible
exception of the president and the
treasurer, are so accustomed to
thinking in terms of divisions, or
feoffs or products that they do not
cee their corporation as a unit.
Furthermore, they often resist
placing emphasis on aspects of
their corporation which
are
of
great interest to the professional
investor because these aspects are
not where the officers, in their
•daily
administration,
place
the
Adverse
v
and
against such
unfavorable
be concealed.
never
1949 and
the
-Minnesota,
1954,
construe-
month. This followed a highly encouraging increase in contracts in<
April. The rise in contracts means/
of course, that the volume of con-;
struction activity will expand in
coming months. /
"Fourth, an upturn in the rate:
he
Hess
ing
Up j-bjs year> despite the general
recession. Since the construction
inaustly is the country's largest
;
emphasis of their own efforts.
They seldom know how to pre¬
sent
their case to the security
ness.
analysts in the language and no¬
menclature of that group.
They
db
not
know
what
impression
as a
than two.
^
n^w u struction exerted a powerful inofficesvftijp™ on the rest of the economy
open
August
V-;.
1130
^
1st
Texas
Bank^producers
been
to
E.
™en
highway
par-
could do to Prombte economic
equipment
the. nation's
labor
force.
to
weeks
that
ago
'increased
ter-
,1957
sign of weak¬ minated
by the recent withdrawal
of all construction activity in
amounted
to
more
than
$66
befor|
D,elor?
,
h
..
construction activity helped boost
ume
was
that
example, the American Iron
tWo
He was
partner in
This association
MQrcUoii
M
Ml" Marsha11 recalled that ear-
and Steel Institute reported about
:
^km§smce
Hess
J935.
in 1955.
of
pace
transportation,
For
engaged,
i." ,.!n.v
155
Wilbur
of materials
supplies
an(i
"d
1
the
"Construction operations ^Ta^- lier in the ye?r the AGC was I4*
ur-ll/ai-e of ereat imoortance to quested to tell what construction
at
Bli,IdiSg- 7-and
Mr. Hess has
i
"Fifth,
" .more
-
interpreted
more
normally accounts for about a;
third of total construction activ-;
ity.
in their proper relation to the en¬
a
finisiief|
steei
shinments
during
tire corporate picture. The records the firm of Charles B. White •&:
May'
The construction industry
show that a proper explanation of Company from 1937 until 1943,
is tbe largest consumer of steel/
adverse nev/s tends to increase in- when he left to serve in the U. S.
;products, and in fact uses more
piuuuLib,
aim
1
cci
u&ca
vest or interest, while omission, Navy. Upon his return from mili¬
jic
minimizing, or concealment of tary duty in 1946, the firm of 'nrlt', m
1
such news erodes confidence in Fridley & Hess was formed, which
ix+ni
Mr. Mai shall said the
the corporation and its officials. became Fridley,Hess & Frederking
are
after
than one-seventh ol the construction is being stepped up
in
^Voss national product and a sim- steadily as the long-range highknowri as Hess il3r ^pr?p0lt!C>n °\
ei?P
way program authorized by Con-:
x
merit, directly and indirectly, the gress in 1956 begins to get into
S h 1 c v Srtif•sustained, high volume of con- full swing."
//; /■/./;
•wm
facts
These latter actions almost always
place,
-
&
^
o
National
How¬
chapter of the na- of residential construction is tak-;
a
}
/production activity, accounting for
j
certain techniques have been
developed which can be used to
present these facts concisely and
AGC of
tion al association.
v
tnat
ocin;M-j
ever,
.
crease
'
Handling Adverse Facts
nication with the investment pub¬
lic is not communicating to—it is
that activity will induring the rest of the year.;
contracts > compiled i
by the F. W. Dodge Corp. totaled'
$3,402,575,000 in May, the highestfigure ever reported for any single
executives
o n
8.
/"As in the Construction
recessions of
James D. Marshall
.j_mter^rsTts.from
of
"Third, contracts for future con-.
'The dollar volume ol construe- years of--reduced- activity in home-A,
t/lw if' tion activity has continued to hold building. Residential construction
mr-iu
\
h»/£.
odds requires a delicate knowl¬
edge of what not to say and how
not to say it, as well as what to
say and how to say it.
One major
i
huumuw,
A
pbsite
corporate
image, which
basically is what the investor
buys.
^:vCy/ • ; "V'
.
struction give strong support to.
the belief of most AGC chapter;.
board of directors of the
which tries to promote itself. Get¬
across
•-
In every cbfpo-*
I
remafa
America, said
at
Duluth,
July
valu- .1
UWH IKVeSIi fllflK
during the rest of,
at least normal in others. -/.i;://,;.
'
H
rise
vol-.
construction
that
will
the year in most areas and
'
professional investors. 5? ^
the firm
ting the truth
ted
Con-
-
Although these executives are They have to talk through a haze
highly experienced and profes¬ of legal restrictions, of poisoned
r
sionally competent when it relates memories from market declines,
to the sale of the company's prod- of suspicion against any company
—
indicated
ume
communications program; the tion industry this year has again
pervading theme or goal must be'been a bulwark of strength to a
conciseness, accuracy/and good i sagging economy and has helped
taste.
/eJ'--'-"''/' '//!/To lead the way to recovery." Mr.
/"--.i■'•/
v < i.r IMarshall told a news conference
/ which preceded a meeting of the
investing
nets, they are sometimes amateurs
when it comes to selling the com-
branches throughout the couritry,
and the preponderance of replies
M i ;n n.,;
/
proper presen- s
a
a
a
ic Survey of construction^activity
its 125 chapters and
tractors /of
...
\
v
*
i
s o c
General
in
telegraph-
America
of
-
among
rate
confident in their ap¬
as
to
adjuncts to
One last word.
•
of
success
to
'
tation of corporate advertisements/;
presenting this
public lies
in knowing
cers, as well
what interests the
as with
the
professional investor and what is
less sophisti¬
Sydney A. Hunt
likely to be misinterpreted by him.
cated invest¬
Any good salesman can tell almost
ing public. Many corporations immediately whether a certain ap¬
today are handicapped in any ap¬ proach will intrigue or antagonize
peal to the investing world by a his customer. Few corporate offi¬
and trust
•'
-
cases, of color and design as
:
;
-
documents
per¬
proper
■
companies in their classifi-;
-The communication analysis also i
the
use, >. in
specific; i
„
compared to its com¬
The secret, of course, is
these items are correlated
minds of secu¬
;
Contractors
early June conducted
The
of
rector
-.As
-
characteristics,
they
will:
distinct; advantage' over :
a
cation.
record
how
highly trained
and
actions of trust officers regarding ?
these
eral
/! Executive Di-
in 1945.,,;
war
"Second, The Associated Gen-
Vrsh&ll, of Wash>; ington, D. C.,
r
industry since the end of
the
JamesD.Mar-
,-
now. ;
ized the
*
1 y \
e
have
petitors.
the
with
t
a c cur a
guided through the emotional re-
attitudes toward executive succes¬
bination of
cate
In¬
sion, corporate research programs,
the company's
labor policy, its
community relations program, and
com-
better time to build than
no
industry,
t>,tion
recognize these char- \
are
recovery.
why construction is expected to reach new record this
and avers there's
year
corporation with- eer-;
If the eorpo- }
acteristics and
fore¬
casts and plans, personnel achieve*
ment records, corporate dividend
philosophy,
interpretive factors
behind sales news, management
world.
ment
rate officers
are
in this category are
cluded
by industrial firms today is how
to sell themselves to the invest¬
cations
tain characteristics.
_
One of the most important
least understood
sagging economy and helping to lead it to
our
predictable reaction against i
most
and stresses that every corporate communi¬
favorable facts;
ing
Associated General Contractors of America official lists indi-'
greater growth. Anticipation of
The recession from
which the
this occupational hazard instills a
country is now emerging provides
manner of thinking regarding the
another striking demonstration of
lesser-known stocks in their port-:
econonl[c Roistering pow:er of
folios which effects a distinct^ al
the
construe-
be done: advises how to handle adverse or un¬
cation program must
more
a
maintains, providing skilled determination of
communicate is made. Mr. Hunt proceeds to show
can
reported
than the corresponding figure in 1957
support view thai this crucially significant indus¬
$8 million
.
growth. They frequently are chal¬
lenged because they did not create;
tising official
4'what" to
High Construction in 1958
construction for first half of 1958 is
try, as in 1949 and 1954, has again been the bulwark support¬
nu¬
even
new
and is cited to
For instance,;
when they
have handled their client's port-,
folios well and created a capital;
readily accepted projection
analysts, trust officers and the
investing public directly can be
to be
but;
subject to
are
lawsuits,
merous
of expeditious and
Achievement
officers
trust
Feinsmith, Inc., Cleveland, Ohio
of industrial firms by security
•
Estimated
nevertheless, they do have strong;
emotional reactions.
Vice-President and Creative Director
Mcldrum and
public's,
sophisticated
less
SYDNEY A. HUNT
By
Forecasts Record
by emotion. But this ac->
tuaily is not so. Their emotional;
reactions are different from they
fluence
Successful Corps sale Relations 1
Willi the hv'Stmenl Community
•
.
(414)
fh
nrovidins
congress
Gongiess,
proviamg
for
tor
;
^pping up highway construction,
*thing else to increase employment.;
T4ie bill
was
subsequently passed,
and already, Mr. Marshall said, it
has given evidence of bearing out
expectations of increased employ-r
.
■no¬
billion, consisting of $48.5 billion
No
Better
Time
to
Build
released
their corporation is making on the
general investing public. Most im¬
portant, they do not understand
the determining factors which in¬
fluence
an
investor to select
one
company from a myriad of com¬
panies operating in the same gen¬
eral field.
:A crucial step
nication
in good commu¬
techniques is the deter¬
mination of what to communicate.
of Mr. Hess
There is
classic example in
one
and the
formation of
jn
new
construction and about $18
Recovery from the recession can
Hess & Company.
publicity story was re„
.
„
.
.btU4/1 1^mai^t/a?cS ar'dbe further speeded, Mr. Marshall
Mr. „
Hess is a member of ..
the work.
The total of $48.5 billion
hv niacin2 current Dublic and
said, by placing current public and
stating that a company Investment Bankers
Association, for new construction represents a
sold some low profit facilities for
private construction projects un- .
priv'atc
un¬
where he is now serving on two recent revision
by the Depart- der contract and
a good price and reinvested in the
executing them
committees.
Among the civic ments of Commerce and Labor
high profit end of a certain opera¬
increased vigor. The AGC >
groups in which he is active are; which
increased
the iieure by
figure dv
tion.
Due to space requirements,
the Chamber of Commerce and the > more than $1
billion from the
it
parts of the story were deleted
Rice Institute Associates.
He is preliminary total of $47.3 billion
that financing is available!
by the papers so that, only the. sale
well known in tennis-circlesj.hav- :announced earlier.
•«
'acnnahio raw materials are
was emphasized. The story looked
ing won various titles in the United
"So .far this year," Mr. Marshall f*
:
like an admission of failure by the
States and Canada in the 1930's. > continued, "the dollar volume of
pvy,^n
nroductive"
management.
Quick follow-up
In recent years,he has devoted construction has kept pace with p
ntr„_for„>
nroflt
mar«ins
ori:
with the entire message in a care¬
much of his time to various types the record rate of last year. The
m
]1
, construction costs will
fully designed advertisement
of youth work, including the Boy total of new construction for the
the ^
where the wording could be eonScouts of America and the Tennis firat six months of 1958, accord- Probably continue to use in tne .
future.
/
trolled, turned the adverse pub¬
Educational Foundation of the »ing to preliminary estimates by
licity into an advantage by point¬
The construction industry itself United States Lawn Tennis Assn. the Departments of Commerce and
ing out management's purpose in
can help further to speed the up- *
Labor, amounted to $22,066,000,the sale,
000, which, is $8 million more than turn, Mr. ^Marshall said, by riiM- Form J. B. Coburn Assoc.
the figure for the first half of ermzmg its plant and equipment, .
Psychological Area
•J. B. Coburn Associates, Inc. has 1057
by insisting on realistic equipment
One of the more difficult seedepreciation schedules for" Fed- !
been formed with offices at 55
which
a
§
^hvi
is°advantageou? to^build
^Dlv
^obiblv pontin^ ^
.
r
Although at first glance this ap¬
pears simple, actually it is ex¬
tremely difficult. Involved is what
corporate officers think the public
image of their company is, what
they wish the public image were,
add finally, determining what the tors of this
communications field
/Expect Record High Contruction
public image actually is.
is that of the
psychological area. Broadway, New York City, to en¬
In 1958
.Determining these three images Here, documented and backed up gage in a securities business. James
T"If construction is to reach a
requires technique and experi- by case histories, are prevalent Cohen
is a principal of the firm.
new
record this year, the gains
•ence.
Once this is done, the cor- and
contradictory attitudes in finAHotn nffinnyo
twnlrirlo/4
tirifU
j
will have to be made in the last
porate officers are provided with nancial and investment circles,
.
.
hva
a
Workable
ceits which
v.
set
of
can
be used
uniform
con¬
step¬
common goal.
as
n«1
•
geographical
The advertisements
tidn
as
is
conceived,
what
should it include?
Certainly
routine
not
balance
Substituted
are
■.
and
Now With Paradise
to
both
are
emotional
classified
and
half.
"(Special to The Financial Chronicle)
tions
an
BEVERLY
,
intel¬
nice
F.
HILLS, Cal.—Bere-
Chinberg
Paradise Securities
lectual appeal. '
only
facts and
figures,
sheet
certain
is
now
Company, 3477
•
Pro-
Co.
"
.
.
,
-
are
,,.
.
that this is
several
....
likely
indica-
.
+
to
.
take
(such
aS
urban
renewal, :
schools, churches,_ hospitals,^ pri-.
va*e residential building,, high-,
wfyp an<^ water and sewer fa- .
and by 'more resistance
at the bargaining
table" to kedp
jn(justry prices down.
place.
"First, if the expected upturn in
with
Brighton Way. Miss.Chinberg was
Separating the emotional from
intellectual entails a
thorough previously with Daniel Reeves &
intangible knowledge of the audience.
There
,
analysis of reactions to various
types of corporate advertisements.
ping stones toward a
Assuming a basic commfunicaformat
.
.
_,
prejudices,
eral taxes, by pushing local prbj-'
ects
f
Now With Dean Witter
-
general economic activity follows ;
(special to the financial chronicle)
.
the- present
leveling-off
construction
should
period,
resume
the
.steady ri3e which has character-
^
STOCKTON, Calil. -—Daniel H.
Farny is now With Dean Witter
Co., 16 North San Joaquin
&
Street.
'
Number 5764
Volume 188
..
.
The Commercial and Financial Chronicle
18
(415)
ket commitments by
N^o-Renaissance in Europe and
Its
citing a pro¬
:r
/
Conclusion
,
understanding that the world' is
posal that is to be made during
The economic renaissance of on the threshold of probably its
July by Bonn of mutual tariff
Europe is a fact,. It is abundantly greatest epoch of growth and excuts of 10% by all of .the nations
clear to any visitor at
the World's pansion.
\
of the European Economic Com¬
challenge Js also clear.
The preparation for this explomunity.
"
,
.
Importance to Oar Future
r
This
By KARL D. PETTIT
Karl D.
1
>,
economic renaissance is
tremendous
Pettit & Co., New York City
7-7",
:
a
e
social and economic
philosophy—*
enterprise has suddenly
become practical, rational — and
even exciting.
•
:
Lessons learned from recent first hand observation of awaken¬
ing economic giant of Europe include the warning for
us
that
V11
have
created.
our
complacency resting
past accomplish¬
on
awakening, however, will
be accompanied by important new
conditions and challenges for the
ments and
intensively plan to participate fully in tomorrow's
world trade or lose out with economic
isolationism that is already dead.
Impressed by increasing
vitality of steadily freer and more liberal economies abroad,
future of competitive
V
i
j
Mr. Pettit relays what this
means
This
-
American
L,
To
indications
revival
,
^The
American Economy
the
These
7.
v
-■
*
The Importance of the Renaissance
to investment managers
v'and investors.
economy.
of
able,
the leaders in the fight for freeassert and prove our
T
trip.
During t h
past
our
e
decade
e n e r
y,'"
g
i
1
a
strength
have
been
.concentrated
military/
.preparation
on
for
potential
a
hot
i
war.
In
same
this
r.
mentioned, as an excellent
.illustration, the recent railway
;; strike in England.
After several
weeks of negotiation a 3 % increase
was
granted, but with a firm
*
agreement that labor would in¬
crease production,
eliminate
"feather bedding," cut expenses,
and co-operate fully with man¬
agement to create an increase in
productivity. .Even invour en¬
lightened and free economic cli¬
mate, labor has not yet evinced
such
understanding
or
offered
such
practical and realistic co1
inventive gen¬
ius and financ
London
.
pe-
d
O
•
.
-
and
most of their
concentrated
gies and strength
on
Holland,
For
Belgium,
exam¬
England
and France have been withdraw¬
my
,..
ligible
11%
are
.
expenditures
direct
our
-
In
Paris
"at
the
time
of
the
positive in regard to the
celeration
,
of
Renaissance
the
over
Communism
conserva-?
away
from
Socialistic
and
—t
Europe the
more
defense, five governments and
,
today
however,
foref atners
are
DIRECT
with
even
for
-■
,
136.0
161.2
,426.0
165.2
/
,;
'
-
-
7
-
2,579
EARNINGS-AN$ RATE
Total Direct Investment
OF
4. Earnings
(Millions)
Rate of
(Million $)
-
Return %
'
Belgium
150:
426
Germany
Italy
-:v|'
__
______
;
;
19
v,;'
-
offering
more
ments.
10.8
19
10.4
164
.
Average 11.8
advanced
more
f
112,5
22
■■■
that
suggests
12.0
53
1,386
This
12.7
'
51 ' <•
....
182
some
EEC
:
i
204
Total E.E.C.
:
.
-
.
: 424
'
Netherlands
France
other
Average 845
RETURN OF U. S. COMPANIES V
r
France
11%. for
more
.
*
766
7
;
INVESTMENT,
'
•
,/
.
-
this
10.7
.
t
rather
export only
we
Total E E C—
national product. Com¬
countries.
ex¬
In
,
the
countries
are
profitable market for American invest¬
'
-
.
;
'
•'
i-
-
•
7..
.
future
with 7the
world
we,
must
grow;
community, and
the calibre of
meet
our
competi¬
January, 1&8, estimates of Federal budget totals for fiscal
tion. Past economic isolationism is
-
,
+
dead.
ending 6 months later shows spending*
Let's look, at the competition in
the near future.
- - 7/*+>/*+£
of
deficit projections
Europe js undergoing a revival
her "esprit, de corps" accom¬
y
economic
objectives — the
push is for high standards of
us.
suits versus a theoretical dream livifig.;
'l
\
;
> Field
Mars-hal Montgomery caned Communism. The trial of a
i By deciding for, a gradual aban¬
States bluntly, "The West has won brand
of >, Marxian
doctrine in donment of traditional boundaries,
the cold war in the military sense
England failed—-the trial of free the
Organization
of
European
—but, survival in the coming ten enterprise in Germany is a bril- Economic
Community is emerging
years will depend on whether/.it Jiant success."
V
:
1
as a giant.
:
'
were
and
revenue
.
wide of their mark.
.7
A joint statement, by Robert B. Anderson, Secretary of the
.
Treasury, and Maurice H. Stans, Director of the Bureau of the
,
panied by general toughening of
their
<»
.
,
,
-
year
.
.
1,076
8.2
•
:
479
9.2
U. S, A—
r
^
,
and >
48.0
9.9
'
past growth of our country
been primarily an internal
one, whereas with other economic
powers the growth has come from
foreign trade.
pare
50.0
Holland
planning intensively for the
our
858
42.9
Belgium & Lux._
competitive future,
has
1,200
23.0
_______
Italy
c; The
of Gross National Prod
.
ofour
43.3
ac¬
periments. Later in the discussion
uct—our biggest business. Russia
emphasized: "after World War
in turn has concentrated on capi¬ II free
enterprise was immediately
tal goods expenditures but recentadopted by . Germany, - then • by
ly has changed emphasis to the Belgium and one by one the other
new Khrushchev line — "We will
natiGns of Europe are falling in
bury you economically"—meaning iine for freedom' and practical re¬
,
than
(*)
;
today's gap be¬
as
These; benefits,
irients
G.N.P. P/Capita
Millions)
52.0
Germany
accompanied by the real danger?
pf complacency on our part as we
tena to emphasize the
accpmplish-
5% of
•
"Gaullist Coup" a French banker
was
«
for
defense costs
t'
France
<
re¬
right to lead.
(1956)
Population
,
Bills S)
i
and their standards of
our
Even
Political
ing and contracting their armies. observing that all
Germany, of course, has had neg- trend is towards
Whereas
tween'
—
living narrows.,'
°Peratl0n
ener¬
preparation
on
for economic survival.
ple,
#
Karl D» Pettit
enemies' alike have
OUf
friends
result
dom and free enterprise must
GROSS NATIONAL PRODUCT
economic
recent
European trip should receive our
giant of Europe
and t0 survive we who have beeq.
and
To the
investor,, it means his
vision must be global with the full
ishing.
The Fabian branch of
has at last stirred and the message socialism, once supported by vast unanimous approval for:
tdus is clear—Wake Up America! r numbers of intellectuals, is graduGreater trade can be developed
This is the vivid
impression I ally melting before the daily re- with
more
advanced
countries
carry with me
suits
of free enterprise.
The (example—England).
from my re¬
philosophy of "something for
t Better relations with our friends
cent European
nothing" is dying. One banker - in will
economic
forward-looking
courageous managers.
Total G.N.P.
witnessed
battles—the competition
cLteiaborr p/cTnTages! win be intense-the rewards high
low
plus
phase may
campaigns will enter their most
!? *h/ehave exciting
and
way
near
be ending/ Then world economic
means
.
shed
must
we
future this preparatory
To the investment
managers, it
constant alert attention to
free
as
participate fully and sive period has been under
new economic revival for some ten years—in the
v*,
victory for American
.
Budget, shows previously estimated and the actual Federal budget.
.
for the fiscal
,
1958.
year
v,
*
.
.
,
,
...
ended
■
r».■
E
awl/riWlOiKifivv
*•
Everywhere during my trip the
Renaissance m Europe
Renaissance in EGrope
Economic
itqs
has
Kaan
dramatically
been
oxriAvrif*
evident:
Talks with bankers, industrialists,
economic leaders;
attitudes of la¬
•bor; political trends; business and
1
_
.
7
*
trade developments.
♦
The
strict
emphasis on educa¬
tion coupled with age old ambiv
tions induces this economic devel-
It is rising like a #ant
It expresses a will to
survive, a desire to m&ke a worthy
contribution, the acceptance of a
challenge for leadership.
opment.
tidal
success
/ enterprise in Germany, a
European Renaissance
.
' indeed, the very
wave.
_
of free
country
„
^
,
the strength and capabilities of
om
Olinn
TO
soon
,
nomic
war.
To
in
year-end
to the preliminary
'
■'■■■'
''"
■
;
.
:
*
re-,
7
"s
.
Receipts
$69.1 billion, and expenditures were $71.9 bil-
were
lion, resulting in
.
a
budget deficit of $2.8' billion.
records
in
deficit of. $0.4 billion had been estimated.
results for fiscal year 1958
The
estimates
as
with results for
and
and
The figures
following table.
and are
1956
are
compared with January
1957
based
on
are
,
preliminary
reports
subject to later revision.
'
'
;
•
v
'/
BUDGET TOTALS
In billions)
t
(Fiscal years.
1958
1957
1956
Jan.
Actual
Est.
Actual
$68.2
$71.0
$72.4
$69.1
66.5
69.4
72.8
71.9
+1.6
+1.6
—0.4
—2.8
Actual
Receipts
Expenditures
•
Surplus (-f) or deficit (—)
.,
The interest and enthusiasm to-
,
SSL*!
implications must be appraised.
competitive instincts of business
Furthermore,
during
the
past
in
Europe.
An industrialist in
;seven months foreign gold with¬
drawals have been unusually large Spain noted that Italy had been
going through a massive remodel¬
'from our vast holdings, and bank¬
ing
of their industrial
system
ers in all European financial cen¬
nave
nn
thp
during the last ^ear and a half'
ters state that Russia
pays o
jn
preparation for the official
nail head" in gold. These acts and
market—
their implications must also be
// . /
common
-weighed.
In g^,e(jen, a high placed iinan1 7
Labor
cjer observed the sincerity with
r
The Marxian doctrines' influ- which the six -O.E.E.C. na,tions
ence on labor is
gradually dimin-^ were approaching their new mar-
J
.
These economic blocks are'for¬
midable and
over
the shorter pe¬
riod
will
and
Dealer-Broker
Addressing Service
As
publishers of "Security Dealers of North As»er¬
we
have a metal stencil for every firm and
listed In this publication,
which puts us In
position to offer you a more up-to-the-minute list
ica,"
bank
a
than
our
every
resource
•of the textile producers* automo-bils
-
mbnufacturers> movie indus¬
try, etc. In the long run, however,
competition and improving stand¬
ards-of living can only lead to a
better life—but in the interim, we
must accelerate our education, ef¬
fort and productivity if we are to
participate fully in the better life
,.we
have had such an important
part in creating.
,
you
can
obtaixjj^eewhere
•
9,000 names In the United
Canada, all arranged alphabetically
Cities.
There are approxifflwfly
States and 900 In
States
by
ingenuity—note the troubles
test
,
shown in the1
new
.
»
In January, a'
.
their
"
the
"
be
example, it is a real shock to steel, we might also add that cur¬
rent reports state they have con¬
projects. One straight thinkers to witness our tracted to
ship 400,000 tons of oil
.banker had just completed under- Congress cutting back some 20%
to the Argentine by the end of
writing a new Dunlop rubber on foreign aid which totals only •thisyear—another indieatioh of a
plant outside of Moscow which $35 annually per capita over the
growing trend, '
will be the latest word in tech- past ten years when this aid has
In world trade our competitors
nology—staffed and built by out- probably
been
the
best buy will have the
important advan¬
standing and capable European America has ever made. As our
tages of rapidly improving per
talent. Many other similar proj- Representatives, Congress too
manhour production (due to our
.ects are in the early stages of must wake up!
; ; * »"/' :*
postwar economic program) and
promotion.
Business
tremendously lower average wage
In France, bankers are thinking
rates.
ing aggressive
January, according
been estimated
$2.8 Billion Budget Deficit
•Inland'
In London, bankers are financ¬
•
'•
.
—
Steel
Co., "Russia may
producing enough steel to
it is high time our own govern- even try to sell some to the United
States."
To this he adds,
"The
ment chahg^ direction, from ha¬ Soviets have as
great a technical
rassment of business and industry
to active promotion and true co¬ knowledge in iron and steel mak¬
;
operation.
Further they should ing as we do."
Unquestionably their giant
understand that the vicious anti- ■?
?American propaganda outside our strides in steel making capacity is
borders may have been induced part of their overall plan for eco¬
KlIOtnAtiOOP
by our own attitudes and acts. For
Finance
ing industrial, potential — steel
production and
electric
power
production
European businesses are sure to
thrive and capture world markets,
30, were less than had
The Soviet Union with its grow¬
,
and her politically
aimed trade aggressiveness is of¬
imnjang, aid in ine appraisa 1 01
the American economic system.
fering help to all our friends and
in such a new political1 climate allies, and according to Edward
L. Ryerson, retired Chairman of
"PtiwAnAnn
June
ports shown in the monthly budget statement for June.
,
.
.
campaign. -
4
last
budget last
*
.
pair win the economic
Both receipts and expenditures for the fiscal year 1958, which
and
*
Addressing charge $7.00 per thousand.
Special N. A. S. D. list (main offices only) arranged
as they appeared In
"Security Dealers." Coot
addressing N A S. D. List, $8.00 per thousand.
Just
for
We can
at
a
also supply the
small additional
list
on
gummed roll labols
charge.
Herbert D. Seiberft & Co., Inc.
Publishers of "Security Dealer* of North
25 Park Place
—
REctor 2-9570
—
America"
New York City
16
The Commercial and Financial Chronicle
(416)
Hammermill's
dends
The stock market's
rally to marked change to the imthe best prices seen in nearly mediate
postwar era when
a year was at
least momen- television was held as the big
tarily halted this week by item and other lines were disprofit-taking but without giv- missed with a shrug. The coling the list much of a setback lapse of the TV bubble deafter its nearly straight-line pressed the issues thoroughly
advance since mid-May.
and their turn to more basic
which
reached in 1956 and
was
again last
of
Some
regarded
attractive since
It marked
pickup
something of a had
the profit-taking
in
cinre
tpmnn
tempo s
nn
ce on
appea ance
sevpral
nrea-
^several occa
to
they haven't
contend with
general
hsted market enthusiasm,
c0pjns
utnewlou^d
newfound
b
but
more
as even
for
Radio,
instance,
has been available at around
1956
peak while
recover
.0"
the worst
but
...
11
.
over
i
the
industrials
to
to
seems
of
most
the
backlog increasing
a
pleased
are
our
good
Gardiner
M.
to report
friend Robert J
of Reynolds -&
Co., New York City, has again
favored
us
with
advertisement
another over-the-counter item
where a new
high for the industrial average was being predicted
widely. The. pickup in selling
tbat has shifted from the disappointing television field to
^he promising technical prod-
own
We
National
opera7
aren't
overly bright at
the moment, continuing the
drab results of last year. Last
year> however, was complicated by a strike, heavy ex-
caiec^
are
this
week
1
served
*
*
-
far.
so
The swift rise of the
far in the fast
climb'
was a re¬
feature
manded
only
the
still avail¬
record
far
year.
tele-
as
today is concerned,
concpntratos on
e wes
coast, and f co or te evisipn
vlslon
et
a
r
ineomT WUh
,
Robert M. Gardiner
Continued
program
Advertising Com-:.
from
will also start
to take hold. The company is
obviously encouraged
over
things.
writer
^rug shares, bolstered
their
w u
nave
a
were
somewhat
backward
garded
more
as
*
-
a
a
however, is re¬
candidate for
liberal dividend action
s^nce ^e 60-cent payment is
expected to be well covered
p
earnings of around $2 a
on a
The
good increase in
company
most
is
cur-
mereer-
d^^ shares and
.
y
and
measure of this stems
from its low dividend payout.
good
The company,
*
is reported to be still search-
The so-called "amusement"
page
is
terse, factual com¬
drilling,
his
exploration, etc. by lessees. Perti¬
examples appear in his re¬
port relative to drilling by Hum¬
ble Oil
(subsidiary of S. O. of
New Jersey) and a mining lease
granted to Anaconda Copper.
In May, 1955 New Mexico and
Arizona granted a lease to the
ing
nent
.
4?
Ihe income ot
mineral-bearing
in 250,000 acres in 10 sep¬
associated
level althoughall its lines
on
$1.29
a
re-
share port good business. The bowl-
and
while
it
to
1,500 to 2,000 more
selling around a 14-times- units than the 7,000 achieved
earnings basis, based on this last year. Orders for school
was
year's estimates, the longer furniture and gymnasium
projections indicated that it equipment are also reported
was still available at a much on the
upgrade,
more
satisfactory eight-times
1959 potential
earnings.
Hammermill and Rayonier
*
*
*
A depressed item that has a
TT
The
.h
it.
-
the lands will be delivered lessee,
the New Mexico and Arizona Co.;
retaining
interest.
one-fourth
a
1957
The
less
•
water Oil
"pursued an orderly and
thorough
exploration
program
through 1956, having drilled 298
test holes, aggregating 137,191 feet
without the discovery of uranium
bearing
ore
in commercial
quan¬
tities."
"During the year (1957) there
considerable activity by vari¬
interests in securing leases on
was
ous
.
.
rendered
its
leased
acreage
and
Northeastern
in
considered to
Black
Mr. Hungerford in his
1957 report
(under
date of March 1, 1958) stated that
Notwithstanding,
State
unleased
all
lands
Mesa
Federal
Arizona,
be in the so-called
Basin.
The
company
approximately 700,000 acres
(in fee and mineral rights) in the
area indicated, and should benefit
from
any
exploration resulting
owns
therefrom."
:
To conclude: At the
annual NZ
stockholders meeting in St. Louis
held
on
last Vice-Presi- •'
June 11
dent R. J. Stone said the company
is
negotiating three oil leases in¬
volving approximately 50,000 acres
in Northeastern
the
Arizona, although
with four
leases
companies have
signed.
not
or
as
five
yet
oil
,
been
No dividends have been paid on
NZ since
ration
in
a
25 cents
a
share decla¬
1953.
Principal income
is grazing land rentals.
Net in¬
come in 1957 was $85,375, equiva-r
lent to 8Vz cents a share.
"reportedly because of no ore in
Mr. Stone, re dividends, pointed
commercial
quantities had been
(Special to Tie Financial Chronicle)
out that it would be advantageous
found as a result of exploration
for the company to hold on to its
GLENDALE, Calif. —Louis E. efforts."
The
writer,
however,
cash resources "in the event of d
Williams Jr
is with Ansear M
understands, that while the Mcchristensen,' Jr., 1417A Kennett Gaha Syndicate quit after an ex¬ major oil or uranium find ori its
Road.
«
:
penditure of around $100,000 for properties."
exploration
it was mainly be¬
Joins H. Carroll
cause
further
financial
outlay
With Dempsey-Tegeler
would involve considerably more
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
than the syndicate cared to put
BEVERLY HILLS,
Cal.—Petter;
GLENDALE, Calif. — Harold up,
but
that
the
exploration
H. Svenkerud has joined the staff Thudium has been added to the undertaken
With A. M. Christensen
position of Raytheon, bit of an alibi for itself, is
firms, in Hammermill Paper which has staff of
the missile-radar work, is in been
showing signs of want- security
and other electronic
Sunray
jointly
The writer, as regards a specu¬
than $400,000 on actual
prospecting and explora¬ lation in NZ stock, realizes that
tion, and up to $400,000 for min¬ to date there hqs been mainly
ing. Also of significance: "New smoke and no fire, but the smoke
Mexico and Arizona has the op¬ in the neighborhood of NZ tracts
tion to participate as a 50% part¬ does appear to be increasing in
ner in the mining of any unit, or
intensity.
So much so that the
to receive royalties based on set¬ writer detects semi-optimism
in
President Hungerfordts report ori
tlement assays."
March 1, 1958. Consider this un¬
Continuing his factual remarks,
President Hungerford in the 1956 usual
paragraph after years of
annual report, stated that Tide¬ just factual reporting:
not
Counties, Arizona, was granted to
[The views expressed in this a syndicate of important financial
article do not necessarily at any
people known as Charles P. Mc-
run
drill¬
into
search,
ing alley pinspotters are still time coincide with those of the Gaha, et al. In New Mexico and
Chronicle."
They are presented Arizona's 1956
projections of 1958 results of in high demand and ship- <crh*™
report it was re¬
as those of the author only.]
corded that
this syndicate sur¬
$2.50 a share seem a bit con- ments this year are expected
servative
a
entered
report, re the foregoing
"As provided for in the
arate areas in all tracts of the says:
company
except the San Juan lease, two oil and gas test wells'
were
drilled during the year,, at
tract. The lease requires the pay¬
ment to the company of a cash no cost to this company, without
bonus of $300,000, and the expen¬ discovery of oil or gas in paying
diture by the lessee, within two quantities. Oil and gas lease with
the same companies continues."
•
years from the date of the lease, of
-
for the first half made earlier
reported that
agreement was
with Sinclair Oil and Gas Co. and
Midcontinent
Oil
Co.,
covering 17,269 acres of
the San Juan, N. M., Tract.
The
lease provides for the drilling of
two test wells, on completion of
which an oil and gras lease cover¬
Co. ing a three-quarters interest in
.
rrn
Tisch
New Mexico and Arizona in the
1956 annual
-
-
Alfred 4F.
2
ing for likely acquisitions on
stocks have lost none of their
top of the several added in
much in the June quarter and
vitality because of the reces- recent years. One of the latest the Tidewater Oil release which
the
half
year
earnings to sion and some, such as Bruns- acquisitions, Coppertone i n expired on May 19, 1957 "was re¬
newed for a period of 18 months
justify its runup. The issue wick Balke Collender, are the sun tan lotion field, is reand that Lessee continues its
was
something of an excep- still considered available at portedly showing sales double exploration, but without discov¬
tion to the general run in that
reasonable
r a t i o s
against those of a year ago and its ery of uranium exide ore in com¬
mercial quantities."
it was still held in
high re- earnings. Brunswick, on other proprietary preparaIn 1954 a uranium mining lease
gard in many circles for con- earnings projections to around tions are also
showing good covering 101,000 acres in the
tinued improvement and the
$6.50 a share for this year, is sales gains, pointing to a rec- Winslow and Holbrook Tracts in
promise of capital gains.
at
a
seven
times earnings ord year overall.
Coconino,
Navajo
and
Apache
-
Company
40 Wall St., New lOl'k 5, N.Y.
ment anent the results of
ores
Drugs Improve
ports
.
mittee
The Security I Like Best
0f its customers well depleted,
IfwlThavea share
sajes
it
ap¬
investment
the inventories
regional market position from
h
t ,v,p
which to profit.
mtaded of the
before
quieting down, showed gains
of more than half again as
result,
a
a
about threeprice it com¬
of the
in
is
The company, as
ar
Capital Gain Prospect
Raytheon, which
at
fourths
emphasis
from the stocks that already had."had a good run to
those that hadn't participated
market
as
dream fadedsharply. The
mar¬
away
cent
sion
able
caution and shifted
A
industry.
iiiuuswy.
stock, however,
*
ket, particularly through this
month, had generated much
so
>ucts
notice/
as
has been encountered
*
CHRON¬
most
all
c/o Fitzgerald &
a 5iriKe'
and the con-
pansion expenses
traction i n its
earnings regood ear
••
able to do better
that the last score of points fales last year were back to eyen when the
general stock
wasn't going to be negotiated the record level attained five market was
faltering. In this
without more resistance than years ago before the televigroup piough, Inc., has been
11
Year
preciative of. this - handsome'
support. •'
/ I
¬
ALFRED TISCH, Chairman
and
to
page
our
Supplement
of the FINANCIAL
ICLE.
half
operations well in the black the outlook since it is compoint where some 80 of the and civilian sales showing mitted to a
three-year mod100
points sheared in last good gains.
ernization and expansion plan Tide Water Associated Oil
fall's selling
had been re¬
*
*
*
that
will
include
doubling covering the exploration and min¬
couped. The vigor of the up¬
ing, if found, for uranium, thorium
Packard Bell Electronics is pulp capacity, among other
turn had cheered the market
spectators
half
a
lor
Book Convention
.
tions
be ting
since the company re-
borts its
carried
We
that
to enhance Hammermill's investment, and it enabled the
m
c
NATIONAL SECURITY TRADERS ASSOCIATION
tendencies
SS'SfeK kS*tnh.'SS
keen forging W
, c.n'did.te'
P "gi^gotag w&tefte S ssivSd™. iTJofor.; efi up;™n f buS,in",'
dividend a month ago
the fall when its cost-cutfavnritpc rp<=tpH
Notes
cut twice which,
Hammermiirs
items in the ..counter market
were
Thursday, July 31, 1958
.
NSTA
year.
electronics
the
were
showing
Market Items
year until the fall selling car¬
ried it below that level.
popu¬
in turn, prompted Hammermill to pare its own payment,
Rayonier itself has been
points for
the industrial ing results considerably,
average worked back into the
Interesting Counter
bracket
of
latter to break out on the topside after holding in a range
operat- of only a bit more than three
In the process
500
lack
larity is its large bundle of
itayonier stock on which divi¬
STREETE
work has lifted their
.
ing to rebound after falling
to less than half of last year's
top price. A good part of
THE MARKET... AND YOU
By WALLACE
.
.
gave every indication
Dempsey-Tegeler & Co., that, colloquially speaking, "Thar
Building
was
gold in them there hills."
of
H.
Carroll
Camden
Drive.
&
Co.,
324
North}
Volume 188
Number 5764
.
The Commercial and Financial Chronicle
.
.
(417)
agreeing to disarmament
Economics of Disarmament
By
The point is
PAUL
which
safe¬
In addition
tion
and productive
men
the
of
countries
acceptance
The
enslaved
the
advantages
the
through disarmament
world
the
possibility of
agreement
should
meeting
heads
a
there
be
a
of
of State,
the
United
ditions
of
Mr.
examine
the
economic
con-
of
mands of the Wesern countries.
sequences
such
o
ment.
be
doubt
ament' in
numbers
For
arms
also
raui
industries. Before the
by
those
such
war
a
change might have initiated a de¬
flationary spiral of first-rate im¬
portance. In existing circumstances
there is no reason why expansion
not
be
resumed
after
a
painful
period of readjustment.
productive capacity released
by the curtailment of aircraft pro¬
The
duction
and
gradually
the
of
various other
be
production of
materials would
war
applied
for
in¬
an
creased
production of capital
goods and consumer goods, for the
benefit
greater
even
the free countries the
countries
slower
and
ynore
that
period
bound
to
painful
in the free countries than in
tries
with
planned
of
be
a
process
coun¬
totalitarian
economies. In the latter countries
productive capacity could
be
re¬
allocated by the central authority.
In
Western
countries,
on
the
other
hand,
of
absorption
the
labor released through a disarma¬
ment agreement would necessarily
be
gradual
a
thing
the
For one
unemploy¬
process.
temporary
ment and the curtailment of
its in
would
reduce
that
mediate
demand
both
for
goods and capital goods,
consumer
so
prof¬
large number of industries
a
there
would
incentive for
be
im¬
no
the
expan¬
sion of civilian production to take
the place of the reduction of arms
production. Indeed, there is
a pos¬
sibility of disarmament being ac¬
companied by a temporary cur¬
tailment
of
the
production
of
civilian
goods, in addition to the
of the production of
curtailment
arms.
economic
an
point
of
view
the
brigade
heads
through
ests
of 4he
This
latter to agree to dis¬
Provided that
armament.
vided
that
not
does
the
plication of the agreement
controlled
than
disarmament
is against the inter¬
-
effectively,
there
would
ap¬
can
and
be
be
pro¬
•
Communist
view
the
free
countries
500,000
affter
reason
for
about
are
con-
16.7%
of
total
earned
S^nna'nnn v°fjPFu0Xiimate1^
a
^.3%. ^u-
was
+G. property
firo
re
aid
ex-
and auto.moJ?11®
along 111 that
theft
came
oraer.
mobile lines
that the autothe worst per-
were
formers.- To bring out the magniof
the
statutory
loss
in
automobile bodily injury, this line
1957
showed earned
premiums
losses
(in-
syndicate
of High School and City
School District Bonds, the group's
3.37%
net interest cost
a
the
to
city,
$226,429,000. The fire line
ported
for
and
earned
the
re-
premiums
$1,327,010,000,
the
where
clauses
insurance
of
surance
4V2%
only
of
below
figure of bodily injury, yet
respective loss ratios
were
16.3%
and
1 While,
1.4%.
'
co-
and;
under-in-'
because
of
failure to keep coverage in step
with the inflation surge in the
1940's.
So far as fire and casualty stocks
are concerned this department still
sees no reason for them to advance'
jn pricet This excepts some of the
specialty companies whose results r
underwritingwisehavebeenfavorpire
iosses
continue higher
and repair work on cars with in-
claims
surance
to
jury
of
the
lated
is
high.
very
a " recent issue
Street Journal" re-
in which
case
a
injured
an
insurance
an
com-
sizable sum, something
$100,000. The jury awarded
for
pany
over
a
him the amount sued
for, but the
judge voided the verdict
excessive.
the
As
verdicts,
"Wall
workman sued
case
verdict
In
the
different
a
of
being
as
second
of
trial
jury gave a
$250,000,
which
was
Jos. Masek Partner
In M. H.
vail the heavy loss trend that set
1955
the
about
comes
the
as
prevail,
sev¬
eral
weeks
ago,
numerous
rate
increases have been granted
by a
number of the states to counter¬
in in
of
final!
pointed out here
as
such
provision
much
course
akle<
It is to be noted
of
some
■» ^ a big mistake to be underinsured, particularly in states
*
amnnn
+#J
of
$2,000,000 of Junior College Dis¬
alone it is more
formed
economic point
an
the
countries
free
to
consideration
group.
should
and
Bishop Go.
ened since
to
released be
be
stead of
for
portable
producing large
with the
able
be
to
in
its
a
in
but
once
Drexel
would
earlier
Soviet
losses
by
&
American
Inc.;
Smith,
Trust
Company;
Company of Chicago;
Co.;
Merrill ■. Lynch,
Co.; William R.
&
Co.; Reynolds & Co.;
Barth & Co., and Ladenburg,
Thalmann
&
Co.
•
Shuman, Agnew Co. Adds
good
very
y'
(Spegial to The Financial Chronicle)
SAN
•
liam J.
with
FRANCISCO, Calif.—Wil¬
Carroll
is
now
connected
Shuman, Agrew & Co., 155
Street, members of the
Sansome
New York and Pacific Coast Stock
Exchanges.
Sutro Adds
difference between the eco¬
/
'
to
nomic
advantages
painful transitional period. gained
by
But, in view of the fact that the countries.
immediate economic gains would should not
•
that would be
Staff
(Special to The Financial Chronicle)
SAN FRANCISCO, Calif.—Leothe
two
groups
of ." nard j. Grassman has been added
The free
countries to the staff of Sutro & Co., 460
;
the 'Montgomery Street, members of
be much greater for the Com¬ relatively moderate economic ad¬ the New York and Pacific Coast
munist countries than for the free vantages they stand to gain into
Stock Exchanges.
be
tempted
by
need
we
operator
car
stiff
with
accidents
recurring
to
Other
car.
the
copied
states
Connecticut de-
parture.
Trust
pany
J. E. Masek
insurance
affecting
C
o m- •
of
New
In
1934
York.
he
joined
Charles A.
Fuller
Company in
Minneapolis to o r g a n i z e their
trading department. During World
War
Mr.
n
Masek
served
in
united States Naval Reserve
officer
factor
A
the
of
Guaranty-'
a
and
accidents
make
motor
needed
have
office
is
faulty driving habits an expensive
pastime in this age of the much
for
two
After
years.
retirement
Fuller's
from
•
the
as an '
the
company earnings may develop in
the near future and ought to be
vestment
Mr.
in-
ment with M. H. Bishop & Co.
it
Mid-East
The
becomes
quire the
and
are
Government
make
periods
ration.
J.
the trading
department of
Chicago
watched.
National Bank;
Trust
Company
San
Witter &
business
19 2 7 with
the
that instituted
as
in
ment
motor vehicle
concerned
career
invest¬
in
not
ruled off the roads for long enough
ment to
Dean
will
Governor of Connecticut,
Francisco; California Bank of Los
Angeles; R. H. Moulton & Com¬
pany; The First National Bank of
Portland,
Oregon;
Seattle-First
National Bank; R. W. Pressprich &
Co.; The Philadelphia National
Bank; Equitable Securities Corpo¬
bene¬
countries,
high prices, taking full advantage
of its monopolistic position.
mense
Co.,
Security-First
a
charging
to
endeavor
Corporation.
Pierce, Fenner & Smith.
be
the rival industries
the
Boston
&
Trust
Staats
ruined
Trust
York;
Bank;
Bank;
by the
...
•
to
ficial to the importing
appear
of New
Exchange
and Savings
Northern
and
position to sell certain goods at a
considerable loss over a prolonged
may
are
Continental Illinois National Bank
country,
well
Guaranty
Corn
First
The
aid
engage
government is
S. A.;
Barney & Co.; C. J. Devine & Co.;
Soviet Union would
Communist
Company; Bank of
T. &
Company
Blyth
heavy; losses on
producers of the free countries.
Considerations of profit do not
arise
lines
of
Harris
inflict
to
offering
alone
the
as
the
The
in cut-throat
competition on a gigantic scale.
By throwing large quantities of
goods at greatly reduced prices
on
certain
markets, the
Soviet
Government would be in a posi¬
tion
far
so
record
Chemical
ex¬
surpluses
of which the
the
his
the
solve the carriers' problems. Prob¬
where
Trust
overlooked. In¬
employing this productive
used
increases
Rate
campaigns such
America N.
capacity for raising the standard
of living of the Soviet people and
their enslaved satellites, it might
be
'•
Bankers Trust
of an economic cold
the productive capacity thus
purposes
war
of
TT
ing New York, where over-all vol¬
probably runs to 15% or 16%
of country-wide premium volume.
ably
members
^
ume
syndicate include: The First Na¬
tional City Bank of New York;
the
possibility that
the Soviet Union will employ for
the
-
■
Other
the free countries.
Nor
two
Bank, .which is serving
co-manager of the consolidated
as
should not
which
forgotten by the negotiators of
be
of
merger
Manhattan
disarmament agreement. This is
a
the
headed by Bank of
the
other
by
Chase
America,
achieve
a
by
groups-^-one
of view for the Soviet Union than
for
a
carriers
$1,390,000,000 and
eluding loss adjustment expenses)
"
to benefit greatly in the long run,
stock
as
cerned, was automobile bodily injury liability. This line accounted
in
000,000
of
other
stand
underwriting
an
bid resulted in
In pointing out the possibility
political safeguards, the political
of such dumping I am not arguing
advantages of a relaxation of in¬
ternational tension would heavily against disarmament. What I think
is important is that Governments
outweigh economic considerations.
and
public opinion in the free
Even from
an
economic point countries should realize the im¬
of
.v./;;/..
-
which
purchased July 29, $40,000,000 of Los Angeles, Cal. 31/2%
School District bonds. For $28,-
even
For this
This
that it
•
Bank of America N. T. & S. A.
v
period.
the free countries.
far
tial, it would help solve
x
Soviet Union and the countries of
mean
:
r
statutory loss to the industry
so
to meet their loss poten-
erage up
has sharply wors¬
MINNEAPOLIS, Minn.—Joseph
then, the increases are,
trict bonds the bid meant a net
first, inadequate in aggregate, and, E. Masek has been admitted to
strength. Much larger productive interest cost of 3.38%.
secondly do not become effective partnership 111 M. H. Bishop &
capacity would be released and
Due Sept. 1, 1959 to 1983, in¬
without a considerable time lag Co., Northwestern Bank Building,
would become available for civil¬
clusive, the bonds are being re- due to policies being still out¬
members of
ian purposes.
.V.'/.S4''/ /
offered at prices to yield from standing at the old lower rates.
the Midwest
1 %
-to
3.50%, according to
Stock Ex¬
Greater Economic Benefit for
It might also be added that some
change. Mr.
Union of Soviet Socialist Republic maturity.
of the more important states have
Masek began
The
offering
syndicate
was
refused increases, an example be¬
the Communist Bloc stand to gain
more
'
Bonds Underwritten
coun¬
1,000,000 without
weakening their relative military
or
men
and
It is therefore evident that from
release
release
could
Otherwise the present state
Los Angeles School
a
important from
Unfortunately
readjustment' is
a
disarma¬
uneasy
serv-
Company, the industry's problems.
of
Communist Bloc
disarm
to
i
con¬
$40 Million Issue of
as
the' relative
ing
mankind.
of
afford
disadvantages of
of the
tude
mean
division, without alter¬
armed strength
of the two camps. This means that
for each
100,000 men to be released for productive purposes in
or
required
the
on
est
genuinely reduce the
world.
productive capacity.
c.iii£>g
f
o
the
and
men
battalion the free
disarm
could
Di.
materials
should
proportion
same
more
each
tries
the
producers
raw
of
of much
en-,
duction,
and
the
effected
Insurance Stocks
The line that brought the
great-
dif¬
equilibrium would bereplaced by a state of uneasy dis¬
equilibrium, with the balance of
gains in favor of the Communist
the demobilization of much larger
a
number of in¬
dustries
de¬
the
by the free countries would
it
would affect
p r o
meet
no
that
gaged in
to
■
Owing to the immense superi¬
ority :bf /the Commupist, Bloc •; in
conventional weapons, its disarm¬
f
agree-1
There
an
can
tj
Khrushchev
that
is
one
Best
r
it is worth while for the Western ;
countries to put up with the eco¬
or
out interest to
the
the
M.
—
thf hrpatr^ °/JTy. Clearly
QiiLSowS
1
re'
suits for 1957 by lines of writings.
Western
for
pay
Alfred
ices,
risk of Communist aggression that
ment.
States
interests
Britain,, it
is to
the
recent release of
a
leadmg insurance statistical
im¬
gain that it is
expect the Soviet
to
disarmament
it is not with-'
.
gain
are ■ so
ference by agreeing to major political concessions.
It is only if
disarmament./Since the Soviet
nomic
Union stands to gain economically
than
to
In
to
to
Government
of
more
stands
that
stands
reasonable
Although it countries, the latter are in a posi¬
to envisage tion to drive a hard bargain in
disarmament ^ respect of the terms of the control
—
Union
advantages
of uneasy equilibrium would be
replaced by a state of uneasy disequilibrium, with the balance
V
of gains in favor of the Communist World."
premature
This Week
that
mensely superior to the economic
"otherwise the present state
be
Soviet
their
of
disarmament.
to
economic
transition
overcome until their
slower, more painful
period is completed; and leave unaltered relative
military strength. In exchange for inherent Soviet Bloc supe¬
rior economic advantage, Dr. Einzig advises we should insist^
on certain
major political concessions, which he specifies, for
■«y ARTHUR B. WALLACE
satellite
condition
countries could not
LONDON, Eng.
Bank and Insurance Stocks
insisting on effective control,'
they should make the reunifica¬
tion of Germany and the libera-;
capacity for swift production of civilian goods and exportable
surplus; provide an economic advantage which the Western
Would
terms'
on
adequately
to
EINZIG
greater amount of
a
not
guard their security.
made that disarmament and demobilization for the
Soviet Bloc would free
do
>
17
of
crisis, if
well re-
and equipextent that will greatly
use
an
increase
may
worse,
men
budget deficit.
our
The
consequent inflation coming out of
such
state
a
be said to
learned
They
affairs
of
mean
can
1947
in
that
during
We
know
and
how
was
budget
and
1945,
that
inflation.
1946
period of
how costly
it
threw
off
led
generally to
higher prices and inflation.
The present Mid-East affair can
become
M.
jn
even
increase
in
Bishop & Co. specializes
northwest
volume
value,
of
(Special to The Financial Chronicle)
and
during
ald
R.
Mayo has joined the staff
of New York Hanseatic
Corp., 110
formerly
with Mitchum, Jones & TempleSutter
Street.
sured.
He
was
ton.
BANK
and
INSURANCE
STOCKS
the
where many property
were
grossly
under-in¬
in¬
deed, is today one of the bad spots
in the industry. If most owners of
personal and real property and
vehicles were to bring their covInadequate
coverage,
(
SAN FRANCISCO, Calif.—Don¬
business.
point
owners
independent
more
period of inflation he delayed to
the
1 n
in
Joins New York Hanseatic
The average person is rather slow
in bringing his coverage up to
current
and
telephone company financing.
costly than
Korea as equipping forces today is
far more costly than it was even
as recently as Korea.
The inflat¬
ing price structure of the post
World War II era brought a slow
r
H.
seculities local to the central
a
never
anything but bad
Korea
our
1950, Mr..
Masek merged the trading depart-
the insurance companies.
to
news
in
business
Laird, Bissell & Meeds
Members New York
Stock Exchange
Members American
Stock Exchange
120
BROADWAY, NEW YORK 5, N. Y.
Telephone:
Bell
BArclay
Teletype—NY
7-3500
1-1248-49
Specialists in Bank Stocks
]
The Commercial and Financial Chronicle
.
.
Thursday, July 31, 1958
.
(418)
18
Needed, Says IBA
Federal School Aid Not
Acting
opposition to
voted upon were
rose
month of relative stability
following* a
14-month
New incoming business
toward
Bond
'
ments
second
Level
High
Some
If
been
has
concern
committee
Education of the
on Labor and
on
Committee
Senate
1958,
Welfare on July 10,
Public
regarding Federal aid for the con¬
struction
of Public Elementary
and Secondary Schools, by Gordon
Director of
Association of
Municipal
Calvert,
Investment Bankers
America, follows:
Bankers Asso¬
Investment
The
supplying
rapidly
are
needed classrooms.
who
un¬
derwrite
that the needed
classrooms are rapidly being pro¬
vided without Federal aid,
all
in
deal
types of secui t i e s
Our
r
.
has
apparent
Enrollments
School
phase
n
classrooms
another of the
and
will
Canada,
Gordon
including
have,
branch
members
their
main
registered
Many
of these
to
1,300
over
offices.
firms
Our
banks.
underwrite
derwriting, distribution, and trad¬
ing of school bonds.
During the first six months of
1958, voters approved about 76.7%
The
Number
Additional
of
Classrooms Needed
Elementary
Public
in
and
Secondary
Schools Has Been Decreasing
Steadily during the Past Five
Years.
The U. S. Department of Health,
Education and Welfare has pre¬
pared
tabulations
number
of
reported
state.
be
These
the
are
showing
additional
to
each
in
tabulations,
most
the
classrooms
needed
reliable
which
estimates
available, demonstrate clearly that
the
number
tary
of
additional
in
needed
rooms
public
class¬
elemen¬
and
secondary schools has
decreasing steadily during
the past five years:
been
In
1952
it
estimated
that
312,000 additional classrooms
were
was
years, be¬
population
as rapidly
recent
been
in
six
has
year
To
1956
it
estimated
of 1957.
June, 1958,
by value of the school
bonds voted
approved,
were
upon
aggregate of about $195,000,000.
(80,000
to
New
(b
Elementary School Additions
>
(c)
idi
Elementary Schools.
_
.
and
79,000
to
replace unsatisfactory facilities).
In
1957
it
estimated
was
of only 5,835,000 stu¬
This
dents.
number
that
means
additional
of
the
classrooms
required to meet the growth in
rollments will be smaller
recent years.
only 140,400 additional classrooms
needed
were
date
to
excess
(63,200 to
accommo¬
enrollment and
77,200
unsatisfactory
facil¬
replace
ities).
continue
in
1952
number of
the
to
needed
accommodate
and
to
five
1957
be
declining sharply,
of
growth
in
combined
in the
is estimated
at
during the
1958-1964 period
to be 15.7%
less than
1952-1958 period.
was
cut
Sold
1957
the
by states
tional
agencies
from
312,000
school
local
and
educa¬
finance
to
con¬
secondary schools aggregated
$2,360,690,000
which
in
over
2,898
issues,
than - the
greater
was
the
(to
of
struction of public elementary and
year.
enrollment
important
fact that the estimated
classrooms
bonds sold
needed
is
the
number of
to
accommo¬
substantial
classrooms
percentage of the
needed
are
group of states.
classrooms
needed
date
enrollment
excess
in
a
Over 36%
to
small
of the
accommo¬
are
in four
(Alabama, California, Geor¬
number
and
Research
our
of
issues
of
school
bonds sold in each state in 1957.
In
the
first
school
of
6
bonds
months
of
1958
this total is not complete
do
sfate
assistance
set
because
not
24,280
2'»8,710,000
Total
53.7
$765,079,000
rooms
school
site
cost
the average
classroom
construction,
of
based on a sample of 23,851 class¬
$31,290
if
$32,070 excluding allas classrooms, or
all-purpose rooms are
counted
as
classrooms.
of
school
financed
rooms
purpose
(demonstrated
years
The
high
a
great
success
lead
with
which
provided without Federal
aid, the decreasing rate of growth
being
record
by
percentage
bond
recent
at
local educational
will
provide
rooms
school
of
elections)
agencies
the
can
other
of
sale
of
obviously be sup¬
additional
funds
sources
in
the
con¬
classrooms.
Since school
bonds
are
Field Of¬
Department
of Com¬
from the Superintendent
merce, or
of
Documents, U. S. Government
Printing Office, Washington 25,
D. C., at an annual subscription
of $4.00, including weekly
supplements: single copy 30 cents.
price
and
class¬
needed
Firmer Business Conditions Seen Evidenced
Northern Trust Co.
Trust
The Northern
Banking
data of betterment.
Economic developments in June
supplied
firmer
additional evidence of
business
conditions,
the
Office of Business
Economics, U.S.
Department
of
Commerce
re¬
ported in the July National In¬
Number
come
its
of
monthly
a
whole, the total volume of activ¬
ity matched the rate of the Jan¬
Fixed invest¬
the heavy
the
of
showed
increase
most of the
week
nificantly
as
about the
remained
duction
earlier
the
in
year,
same
however,
in
The manufacturing
lengthened sig¬
the spring period,
over
this factor also served to
tain
earnings
in
private
sus¬
produc¬
Consumer
Durable
Goods Decline
Arrested
Consumer markets in turn have
reflected
the
personal income.
goods
and
strength
recent
in
Outlays for soft
services
continued
to
edge upward this past spring and
business activ¬
ity.
Consumer buying improved
somewhat in the spring months
and
Federal
purchasing
also
are
in
up.
The OBE review points out that
income, the comprehen¬
sive
monthly indicator of con¬
sumer
purchasing
power,
has
personal
in
advanced
making
the
recent
period,
the decline which
up
peak
between
ployees
ments
The
in
in
million,
April
the
and
oc¬
low,
seasonal
up
number
of
to
allowance
influences,
em¬
establish¬
close
at
low.
slijghtly from
after
a
summer's
mid-winter
nonfarm
June,
was
last
currently at new highs. The
in purchases of consumer
decline
durables, which has constituted
the major area of recent weakness
and
year ago.
buying, appeared to
substantially arrested.
consumer
have
been
Business
equipment
tinue
On
outlays for plant
scheduled to
are
downward
the
other
for
some
time.
residential
construction has been fairly well
maintained in recent months, after
a
somewhat larger than seasonal
fall-off
lion
during the winter period.
nonfarm
an
housing
units in
employment, which has borne the
the
Credit
duties Mr. Duffy
will
be associated with Division "B" of
the
Banking
Department,
which
all states west of the Mis¬
covers
sissippi River except Iowa. Mr.
Duffy joined The Northern Trust
in 1947, being assigned to arid sub¬
period
by the exceptionally high vol¬
ume
of
of
ate
Law
Boston
College,
Boston
School,
and
served
to
moted
Second
the
in
Navy during World War II.
William J. Roth has been
pro¬
Vice-President
and Manager of the bank's
Credit
Department, succeeding Mr.
Duffy. Previously he was a senior
analyst in the department. He is a
graduate of Northwestern Univer¬
sity and served in the Air Corps
during World War II.
Two With
Reynolds & Co.
(Special to The Financial Chronicle)
SAN
Calif.—
Craig and Lloyd E. Jen¬
FRANCISCO,
Lewis D.
kins
are
nolds
&
now
affiliated with Rey¬
Co., 425 Montgomery St.
Sutro Co. Adds Two
June, after seasonal
immediately ahead is also suggest¬
ed
new
starts
in home construction in the
2
In his
annual rate of 1.1 mil¬
for
Factory
of
Department.
hand,
adjustment, the highest rate since
August, 1956. Some improvement
about
Manager
the
in
Previously
Vice-Presi¬
and
con¬
the
50
Second
University, and Loyola University
ward
on
F. Duffy to
sequently heading the investment
research division. He is a gradu¬
tion.
and thus exerted no further down¬
pressure
and
dent
with
June,
was
ment moved lower and
liquidation of business stocks con¬
tinued. The pace of inventory re¬
downturn,
than
more
major industry groups
participating.
work
cyclical
somewhat
a
seasonal
and
"Survey of Current Business."
For
the
second
quarter as
uary-March period.
brunt
Department.
been
had
he
the
announces
Vice-President
Second
July "Survey of Current Business" reviews latest supporting
million below
ordinar¬
—
Company
promotion of Thomas
Private
by
the
of
Promotes Two
reached
the
Current Busi¬
of
available from
is
fices
CHICAGO, 111.
situation.
from
"Survey
ness"
without Federal aid.
from changes in the labor market
proceeds
in
to conclude that state and
us
during the corresponding 6 month
in 1957 aggregated 1,243,967,000.
period
from
several
sales of school bonds and approval
bonds
Conclusion
next
the
for
would appear
profits was
it
decline
ond quarter.
enrollment, the
large classroom construction pro¬
grams presently
under way and
public
This advance has stemmed largely
these bonds will
situation,
the
slowed if not reversed in the sec¬
The
indicates that
This
in
On the basis
firming in the general busi¬
ness
that
does
but
at an
billion,
off $18 billion from the third
of the
cost," all-purpose rooms were
Sales of such bonds
The
$32,070
•
related
and
gymnasiums
and
quarter,
of about $350
lion at annual rates.
2
.—
facilities such as cafeterias, libraries,
not include furnishings.
In determining
not counted as classrooms. If all-purpose
are
included the average cost is reduced to $31,290.
This tabulation of
construction costs includes classroom construction in every state.
includes
Cost"
""'Total
auditoriums
"average
first
the
in
1957 peak; for the same
period corporate profits before tax
fell from $43 billion to $31V2 bil¬
31,790
this
period).
A special analysis in the July
"Survey" points out that national
quarter
42.050
80,138,000
■
curred
struction
of
112,099,000
54
20
8,827
_
_
yet have complete re¬
ports in school bond sales during
we
Georgia)
programs
to
records, aggregating over $1,300,596,000 in 1,579 issues (and
plemented
carrying out vigor¬
continued
new
gia and Michigan). Some of these
states (particularly California and
are
118
2,321
23 851
Secondary Schools-—
Secondary School Addition?-
New
moved
in any
Appendix A, compiled
records of
Department, lists the total amount
to
date excess enrollment was re¬
duced from 80,000 in 1956 to
63,200
in 1957.
ous
sales
'
•
•
(January through June) the sales
Particularly
states
Bonds
In
estimated
the
Construc¬
Record Amount of School
from
replace unsatisfactory fa¬
cilities)
140,400.
A
Classroom
Record
tion Programs are Continuing;
(a)
working stocks.
National Income Leveled Out
was
that the
so
enrollments
elementary and secondary schools
prior
classrooms
excess
$29 080
at
period
year
S2S4.114.000
Average Classroom Cost"—
high levels during
this period, the rate of growth at
the elementary school level will
rate
in
in
Although the rate of
amount of such
Thus,
from
ago.
year
liquidation at book
value has been proceeding at a
uniform rate of roughly one-half
en¬
than
growth in secondary schools will
bonds
that
a
Inventory
annual rate
Cost*
407
4,817
_
Average
Total Cost*
Rooms
the needed classrooms rapidly are
accommodate
enrollment
excess
fourth from
but
All-purpose
10,118
-
Ca>
rooms, was
that
needed
a
up
ship¬
auditoriums and gym¬ income declined further in the
not including fur¬ first quarter but, on the basis of
nishings)
for public elementary incomplete data, leveled out in
and
secondary school
classroom the second.
Clearly reflected in
construction
reported
in
those the first quarter estimates just
questionnaires as completed dur¬ completed is the sharp impact of
ing the period Oct. 1, 1956 through the economic contraction on busi¬
ness earnings.
Sept. 30, 1957:
Total national in¬
nasiums,
period,
public
elementary
and
secondary school enrollments in¬
creased
by
6,918,000
students.
During the next six years, through
1964, the U. S. Office of Education
estimates
an
increase in public
elementary and secondary school
were
was
was
below
libraries,
with about 77.5% by value
approval
of
the
school bonds
voted upon in the first six months
an
the project, such as cafeterias,
years.
put this in terms of numbers
students during the 1952-1958
of
in
pares
At bond elections in
of
cost
approval, which com¬
for
mitted
period 1952-
1958, for example, enrollment in
public elementary and secondary
schools increased by 25.9%. Dur¬
(3)
In
simply
decline.
ments, so that backlogs were low¬
ered
to $46
billion, down one-
come
needed.
159,000 additional classrooms
voters
(including in each case the
site and related facilities
costs
bonds sub¬
by value of the school
enrollments
(1)
the
piled the following information on
average
classroom
construction
true.
No. of
.
un¬
develop,
Testimony has been
Classrooms;
in
large percentage of the
a
proposals.
that
in¬
ing the forthcoming six year pe¬
riod, 1958-1964, the corresponding
increase is estimated by the U. S.
aggregate
Office of Education at only 17.4%
deal
and
school bonds and in the
do
age
increasing
During the
addition
in
offices,
school
be
not
it
as
Calvert
L.
100
commercial
meet
to
coming
the
the
cause
States
about
encouraging to note
of
additional
required
during
er
business in the
should
elections
demonstrate
believed
construction of the proposed
that
creased enrollment will be small¬
securities
United
voters less
De-
number
the
that
or
circles that
about 94%
also
is
It
i
engaged
is
creasing
-
member firms
one
,
Public
(2) The Rate of Growth In
800
over
is
(
Assoc iation
school bonds
trend to reject
a
that would appear to
continued
but
the
May,
the Subcommittee on
It
d
a n
little
in
slightly
presented to school facilities was unnecessary.
billion dollars a month from last
Education of
Department of Health, Education
(c) School Construction Costs
arid Welfare estimates, based on the Senate Committee on Labor
December; atJ the end of May
In October, 1957, we mailed ques¬
stocks of goods were $3
state
reports, that 68,600 class¬ and Public Welfare, that an exam¬
billion
ination of trends in the value of tionnaires on classroom construc¬ under a year ago, with holdings
rooms were completed during the
tion costs and financing to all local of
school
year
1956-1957 and that school bonds voted upon and ap¬
durable-goods producers ac¬
70,800 additional classrooms will proved in bond referendums shows public educational agencies in the counting for the bulk of the de¬
United States with over 300 pupils cline. The most recent reduction
be completed during the 1957-1958 current trends in bond approval
12,000
questionnaires). was mainly
school year.
Record amounts of to be diametrically opposite the (about
in finished
goods,
recent school bond sales (summar¬ trend in bond sales. That is not From the 3,134 replies we com¬ whereas earlier it had centered
S.
U.
the
of
513
No.
Circular
ciation of America is a voluntary ized
below)
assure
that large
unincorporated trade association numbers of additional classrooms
of investment banking firms and
will be constructed in each of the
security deal¬
next several years.
ers
elections.
bond
at
ex¬
the recession has made
receptive to school bond
rejection of school bonds
at bond
pressed in educational
which
approved, aggre¬
These
gating about $162,600,000.
Approval of School Bonds at
Elections Continues at
(b)
ing growth rate of elementary school population, the large
classroom construction programs and the record financing
for classroom construction to be completed in 1959 and 1960.
the Sub¬
past spring.
is substantially higher
OBE's summary notes that the
than the corresponding figures for firming in business activity was
the same month in 1957 when only apparent in manufacturers' sales
about 76%
of the school bonds and new orders.
Factory ship¬
is
figures do not indicate any trend
construction of elementary and secondary
Finds aid is clearly not needed in view of decreas¬
Statement submitted to
supported mortgage financing this
of this .year
required for actual con¬
struction, the classrooms financed
by the record bond sales of the
past 6 months will, in most cases,
be
reported
in the classrooms
completed in 1959 and 1960.
Federal aid for the
schools.
are
year
Bankers Association of
submits state¬
Investment
of
behalf
on
America, Gordon L. Calvert, Municipal Director,
ment to Senate Subcommittee on Education in
This percentage and dollar amount
of school bonds approved in June
before construction con¬
awarded and around 1
sold
ily
tracts
requests for government-
(Special to The Financial Chronicle)
LOS
D.
ANGELES, Calif.—Arthur
Manning and Donald M. Wilson
with Sutro
have become affiliated
&
Co.,
Van
Wilson
Nuys Building. Mr.
previously
with
was
Marache, Dofflemyre & Co.
Number 5764
Volume 188
.
The Commercial and Financial Chronicle
.
.
(419)
19
%
Schumacher
elected
was
direc¬
a
tor, and Mr. W. Bruce Adams
elected
News About Banks
Committee
burg
CONSOLIDATIONS
I
the
the
Manhattan
Bank,
its
moved
Chase
New
Street
79th
York,
Madi¬
and
Branch
Avenue
son
the
end
the
from
northwest to the southwest corner.
its
In
location
new
occupies
of
ment
branch
the ground
20-story apart¬
quarters
floor
the
subsequently joined Bankers
Trust Company in 1950 when the
banking facilities of Title Guar¬
antee were purchased by Bankers.
He joined the Flushing Office in
new
;.;V
The
on
building.
a
He
1.951.
office to be located at
new
97-03
Queens
46th
Boulevard and the
Trust Company
Bankers
is
a
Ftychburg Savings
*
of
The
Bank
Conn.,
three
in
Bowerman,
1956,
of
the
Connecticut
of
official
the
meeting
New
changes
Haven,
•
made
were
staff.
Richard
II.
coporator since July,
a
elected
a Trustee; Allan
Carmichael, a Vice-President
since July, 1948, and a Trustee
since July, 1951, was elected Ex¬
was
R.
ecutive
ald
T.
Vice-President; and Don¬
Jones
elected
was
an
Treasurer
the
to larger
Queens.
Trustee to fill the vacancy caused
made
quarters was
the
by
necessary
steady
The
bank
last
opened a
branch in* 1956 with the
Queens
population growth in the area and
addition
the continued increase in the vol¬
Queens Boulevard.
The
of business at the branch.
ume
The
tinue
officers and staff
same
to
customers
serve
con¬
the
at
office., Associated with Mr. Suter
in the management are Charles
W. Deveney
Assistant
and Walter F. Harrje,
*
•
of
City
announced
York
New
*
National
First
The
*
Bank
July 28
that
Supreme Court Judge Owen
McGivern has 'approved acquisi¬
tion
by the bank of the interest
of Astor
Plaza, Inc., in the site
oc
¬
cupying the entire block, bounded
by Park and Lexington Avenues,
and
53rd
to
Streets.
54th
Pursuant
Judge McGivern's decision, the
now
held by Astor Plaza,
lease
Inc., will be assigned to The First
National City Bank of New York,
which will erect
a
building
on
a
The land is
future date.
owned
by
William
the
now
Waldorf
trusts, represented by City
Bank Farmers Trust Company as
Astor
trustee.
The
bank stated that details of
its building plans
at
a
tion
work
would be issued
been
made
for the bank to obtain possession
of the remaining building on Lex¬
in
Street
Manhattan, was opened
1958. Another office,
May
67th
1,
at
the
Street
Third Avenue and
intersection in Man¬
hattan, will be opened in October.
Mr. Moore, also announced the
appointment of George N, Cederberg to Assistant Treasurer in the
bank's
Division.
Insurance
loan
Cederberg, who
and
general
*
utive
#
and
Woodrow
Bank
New
North
the
New
nierger
Bank
of
bank.
was
ac¬
corpora¬
is
an
National Bank.
Mr.
Vice-President, has
Executive
been
officer of The Connecti¬
an
Savings Bank since July, 1941,
He
elected
was
Vice-Pres¬
ident, July, 1948, a corporator,
July, 1951, and a Trustee on that
date.
same
He is a director of the
*
sale of new stock, the
capital stock of The Se¬
York,
ap¬
the
of
on
two
will
increase
of the
"Chron¬
office
new
the
branches
number
in
Morris
County.
Shareholders
*
of
Camden
Camden,
Company,
N.
J.,
Trust
at
a
special meeting held July 24 ap¬
*
proved the issuance of 50,000 ad
¬
elected Vice-President of Person¬
Kiesling, Chairman of the Board,
nel
the
of
Bank,
New
L.
Barton
has
River
East
Savings
York.
*;!
will
-f
Madden, Chairman of
the Board of Emigrant Industrial
John
announced.
T.
offered
be
shareholders
to
of record July 23 at
$22
share.
the basis
per
It is being offered on
York, an¬ of one share for each 12 shares
presently held, which
nounced that James A. Farrell, of stock
Jr., had been elected to the Board gives the rights held by the share¬
holders
a
definite value.
The
of Trustees of the bank.
Bank,
New
r»
I
The
merce,
Industrial Bank of Com¬
New York, presently op¬
rights, which are negotiable, ex¬
pire Aug. 8.
As
a
result of this sale, $1,100,-
erating 11 branches, has leased 000 will be added to the capital
new banking quarters at 26 Court "accounts of
Camden Trust Com¬
Street, Brooklyn. Michael A. Tro- pany; $250,000 to capital, increas¬
appointed an Assistant Branch
#
*
Company,
Vice-President
dustrial
Bank
of
of
the
Commerce,
sis
sis
the election of
allocated
reserve
of
$6,100,000.
its Board
Merger certificate was issued Actually shareholders' equity ex¬
of
Directors.
Mr. Kirkwood is
approving and making effective, ceeds $17,600,000 — equivalent to
President of F. W. Woolworth Co. as of the close of business
July 11, over
York,
announces
Robert C. Kirkwood to
•
$27
#
*
#
the merger of The
Ifartwiek Na¬
tional Bank, Ilartwick, N. Y. with
Chairman of
common stock of $50,000, into The
the Board of Bankers Trust Com¬
National Commercial
Bank and
pany, New York, announced July
Trust Company of Albany, Al¬
30, the appointment to Manager of
Adolph J. Fortunato. Mr. Fortu- bany, N. Y., with common stock
The merger was
nato will head the bank's newest of $5,532,975.
effected
under the charter and
Queens office to be opened later
title of The National Commercial
this year. It will be located in the
Bank and Trust Company of Al¬
borough's Rego Park section.
Mr.
Fortunato, previously As¬ bany.
$
&
*
sistant
Manager
of the bank's
At the directors' meeting of the
Flushing Office, began his bank¬
Worcester County Trust Company,
ing career with the Title Guar¬
antee and Trust Company in 1946. Worcester, Mass., Mr. E. Weldon
William H. Moore,
First
shares
a
overall
The
increase
of
effect
Camden
will
Trust
be
Bank
Mandan, N. D., increased its
shares
outstanding—:2,000
value $100.)
•
*
Charles
J.
capital
*
new
Broska
has
joined
Ohio,
Manager of the
department, it is
by Willard I. Webb, Jr.,
as
business
announced
President.
In his
capacity, Mr. Broska
wiU have charge of business de¬
velopment and customer relations
new
a
1916,
branch
New
York
h y,
P
have
moved
I
the
head
JJ
Insurance
their
Stocks
De¬
partment,
William
F.
Gliss, Jr., to
.
the New York
office,
wunam F. Gil... Jr.
76
Beaver Street.
Organized
m
JjJ
1931, the Insurance Stocks
partment has become
,
of
De-
of
one
the
stock dividend, the com- most important divisions of
this
mon capital stock of The First Nainvestment firm, which is now
tional Bank ef Virginia, Minn.,
among the largest dealers in inBy
a
t0
surance securities in the country.
inW&« 1™ the Army
Sr^eSti^
The Preston State Bank, Dallas,
inf.urance
will open its new bank
building at 8111 Preston Road,
Dallas, Texas, on Aug. 4.
Tex.,
Davis
elected
were
the
of
dents
Vice-Presi-
Bank
Com"anyTbecoming1 manage?
that Department in
America,
of
j1Ve
whh
_
Calif.,
increased from
was
$300,000 to $400,000, effective July
16.. (Number of shares outstand-
ing—4,000 shares, par value $100.)
*
*
*
$10,083,250,
to 25% of presently outstanding capital stock, was declared by the Board of Directors
of
the
Crocker-Anglo
National
equal
Calif., subject to approval by the shareholders, it was announced by Paul E.
San Francisco,
Bank,
Hoover
will
be
payable
by the issuance of 1,008,325 shares
of the bank's $10 par value stock
and
each
th
securities
Tnvpctm^f
university
lhf
^ysts
th^InS
Pennsylvania
of
t£S
the Johns Hopkins Uni-
flt
y'
The
at
_
New York
office
of
.
John
9* Legg & Company was opened
m 1935 and in recent years under
Cyril M Murphy
establish the firm
has
as
a
helped
leading
dealer in insurance stocks. John
£ Legg & Company believe that
Mr. Gliss presence in the New
York office will enable them to
glve even better service to their
President
dividend
The
...
^NaUonal
the sale of new stock, the
common
capital stock of the Sun insurance
Valey National Bank of Los An- Ste nf
geles,
of
1954
ufl
San Francisco. Calif.
shareholder
of
record
Sept. 11, 1958, will receive one
new
share for each four shares
owned.
The stock dividend will
increase the number of outstandon
fHends . who are located
there or periodically visit that
clty- At the same time analytical
and statistical information on to¬
surance stocks will be available
"lore readily to their nationwide
trading contacts,
many
Joseph W. Sener, Jr. will con¬
tinue the operations of the Insurance Stock Department in the
Baltimore office. Mr. Sener has
been with the firm as a salesman
and insurance stock analyst for
eight years. Mr. Gliss and Mr.
Sener will continue to alternate
increased number of shares after on their many fields trips.
annual dividend rate of $1.20 per
will
share
Oct.
1,
called
&
"
.1
stock from
ijt
of
--
•
,,
f
shares,
S
......
mnn
—
City in charge
of a partner,
Cyril M. Mur-
com¬
County National
Bank and Trust Company, Prairie
Village, Kan., increased its com- V
men
:
in
Johnson
The
the Ohio Citizens Trust Company,
Toledo,
,
of
.
The
Company
-
,
since
capital stock from $100,000
$200,Q00 by a stock dividend,
effective July 15.
(Number of
an
unsecured
tt
&
.
to
Com¬
loan limit to
$1,000,000 and its limit on cer¬
tain secured loans to $2,500,000.
pany's
Legg
olfirv-iAfo
Baltimore, established in 1899, inXfstrPTent bankers and members of
the New York Stock Exchange
with
National
In¬ ing it to $3,250,000; $750,000 to
re¬ surplus, increasing it to $6,750,000;
ports that the new quarters will with the balance of $100,000 going ing shares from 4,033,300 to 5,be extensively
altered and re¬ to undivided profits, which pres- 041,625, and the amount of capimodeled before being occupied by tntly totals a sum in excess of tal stock from $40,333,000 to $50,the branch presently located at $1,400,000.
Also included in the 416,250.
New 32 Court Street.
bank's capital accounts is an un¬
It is expected that the present
vato,
At present Mr.
McHugh is assigned to the bank's
39th Street office at 530 Seventh
Trust
The
C.
...
*
A stock dividend of
Rights to these additional shares
$
John
„
By
if
!j:
America.
given in
five
to
of Iron Bank
Of John G. Legg Go.
ol'
Arthur C. Lawson and Frank L.
opening of the
ditional shares of stock, Robert J.
the branch to which he
is presently assigned.
Mr. McHugh joined Manufac¬
turers Trust Company in 1947. He
Irving
Bank
increased
was
$250,000 to $350,000, effective July 17.
(Number of shares
outstanding — 3,500 shares, par
value $100.)
I;»
been
Avenue,
Avenue.
National
*
Aug. 1, as announced
by Alfred J. Mackin, bank Pres¬
The
Win. Gliss to NY Office
from
when he became Assistant Treas¬
urer.
ident.
stock dividend, the com¬
stock of The Third
a
Mineapolis, Minn.,
par
the
Vice-Pres¬
mon
Carmichael, the newly elect¬
assumed
year> was promoted to Vice-Pres-
and
capital
Northwestern
Associate
ident.
was
plan
July 3 issue
icle," page 18.
assigned to the bank's 18th
Street Office located at 130 Fifth
Manager in 1954.
Bowerman
of
Bank
North
of
the
and
was
F.
Director of the First New Haven
cut
Asbury
and
.V "l/1"''
ident.
*
Mr.
ed
W.
Rummel
fr°Jni
banks under the title of the Com¬
Savings
joined the bank in
1951.
He was appointed an .As¬
sistant Branch Manager in 1956
Mr. Greiner
a
tors.
Company
the
and
America,
Company,
Board.
the
Isleib's
resignation
cepted at the meeting of
business
Trust
and
York
William
by Horace
Chairman of the
Flanigan,
C.
of
A.
was
Stockholders of the Commercial
State
of
§
York, were announced
Horace
of
Trustee
a
By the
sft
erected.
Manu¬
New
as
common
York,
New
*
Trust
lsleib
resignation
at
si:
the
Assistant Secretaries of
the
named
was
*
*
*
consisting of 484,518 shares of $1.0
par value each to $5,445,180 con¬
The new Morris Street Office
sisting of 544,518 shares of the of the First National Iron Bank,
same par value.
Morristown, N. J., will open for
erating departments, as well as a
new branch
of the bank, will be
facturers
Herman
Cashier
duties of a loan officer. In 1956,
ke ^as named an Assistant ViceResident and in February of this
Vice-President, Jerome J.
Senior
Vice-President,
curity National Bank of Trenton,
given N. J„ was increased from $500,000
nAnie?reCl$625,000,
effective
July
18.
approval by the New York State to
Banking Department to increase (Number of shares outstanding—
shares, par value $100.)
its capital stock from $4,845,180, 25,000 shares, par value $25.)
Details
appointments of Daniel C.
and Harold F. McHugh
by
Bowerman
The Federation Bank and Trust
Company,
ing of approximately 41 stories, to
First National City's op¬
as
work
the bank's 57th Street Office.
house
Greiner
Mr.
sistant
*
Zielinkis
„
mercial
The
his
began
cage
years'
banking and credit analyst experience in New York prior to
joining Crocker-Anglo's credit de-
The Public Bank, Detroit, Mich.,
elected Chester J. Meldrum Exec-
$300,000
First New Ilavcn National Bank. to $400,000 by a stock
career with Bankers Trust Com¬
dividend,
Donald T. Jones was employed effective July 18.
(Number of
pany in 1929, joined the Insurance
Division in 1943. Prior to that he by the Connecticut Savings Bank shares outstanding—4,000 shares,
Feb. 17, 1941.
par value $100.)
was engaged in foreign exchange,
Mr.
proved
V
be
of Third Avenue and 46th
ington Avenue by the end of next
month. It is planned that a build¬
§
Queens will
opened
Bankers Trust Company this
year.
The first, on the northwest
but that excava¬
would begin shortly.
have
138-02
by
corner
Irving Manning.
Crane
had
eight
$100,000,000 to $125,000,000,
July 15.
(Number of partment at 1 Sansome Street in
outstanding — 1,250,000 the fall of 1954. Early the followshares, par value $100.)
ing year, he was promoted to As-
mon
M.
in
later date,
Arrangements
at
the
property. The lease carries with
it an option to purchase the land
at
office
new
located
'
office
an
be the third branch to
on
Treasurers.
of
Mr.
shares
By
branch, will be the ninth office of
the company in the Borough of
move
dent
As¬
Suter,
Assistant
and Manager, said that
J.
the department's Eastern Division,
which is headed by Vice-Presi-
*
By a stock dividend The First
National Bank of Chicago, 111., increased its common capital stock
sistant Treasurer.
George
division,
Webb said.
front
:!:
annual
Savings
week
in the bank's commercial
Mr.
effective
At
corporators
the
Fitclv-
Adams
#
CAPITALIZATIONS
,er
bank's
Mr.
was
Advisory
Bank.
Bankers
and
OFFICERS, ETC.
REVISED
the
of
Office.
Trustee of
NEW BRANCHES
NEW
member of the
a
continued
be
on
the
1958.
Board
for
a
Directors
of
meeting
special
shareholders to
has
of
be held on Sept.
consider and vote
proposed stock dividend.
11, to
Crocker-Anglo
National
on
the
With William W. Ravetto
(Special to The Financial Chronicle)
SAN
FRANCISCO,
Calif.—
George W. Fowler is with William
Bank,
Francisco, Calif., Vice-Pres¬
ident James M. Crane has been
w- Bavetto & Co., 63 Post Street.
San
transferred
Street
from
office
the
(San
the bank's Business
1
D. H. Blair to Admit
Sansome
Francisco)
to
Development
D. H. Blair &
Co., 42 Broadway.
_
New York City, members of the
Department
at
Administrative New York Stock Exchange, on
Headquarters, 1 Montgomery St., Aug. 7 will admit Merrill E. Brown
San Francisco.
He will serve in to limited partnership.
The Commercial and
..
-n,
3
from naae
7
-
jj y
^Onilnueu jrui
JV
1
CaIajiIimi*
flvAViylll
^
■
#ft«MH9ViV7
mGICCIIIIQ d wlvWIIi UOmildlfty
9
v."'
^
the new
consiaei
oT
r-K^Jf^Q^Lmnnnies in
f
#
.HneV
con-
denominator of the growth companies within chemicals and electronics. For consistently, through
the years, leading companies in
these two growth industries have
shown superior return on equity,
a high operating profit margin
and a high net profit margin. On
balance these growth industries
have companies with superior
management.
>;
Assuming superior management
as one basic ingredient, the second
ingredient in these growth industries is research and development;
which Du Pont is
are' elastomer
thpv
Hero
el petrochemicals
phpmipnlc
fabric and
ninciwpc
«dea Ky
If management is doing better
Kir
thvoo
than average by these three
standards the chances are good
that this management is superior
management. And superior management is—must be—a common
o.mwuin
the world
operating de-
plpvpn
into
nnvtmpnts
SiinVipH
an
niitpnrndiipl«s
ex-
finishes'
film
chemicals'
nre-mic
on pi ii tiiral
nolv"-
nicments
textile fibers. And each
departments in turn has
chemicals
these
«f
Within
divisions
it
a
m
being
in
companies
fair-sized
v
n
subdivi-
and
the subdivisions in
sufficient to keep
of
oinm—one
itself
*
profitable oDeration
'
■
.
wv
•
.
Kv
electronics9
aSiv iwtroni^
lit
industry^' ^
an
*
actual net per dollar of
sales?
Pont do' Per-
Dn
ppf
the
ci<-iprin(j
—
.
of down to
largest
he
nne
pan
a
•
us
..
n„ TDnnf Pnmnflnv
me uu ruut V/U
I a
.,
„
'
all the phases
chemistry.
to
olaininff
'
Financial Chronicle
.
.
.
Thursday, July 31, 1958
(420)
20
continued and diligent
product you'll be selling won't be as small companies; as growth de— these industries, then, are on the
chemicals and electronics started Searcy, Arkansas. , Companies in
quite what you had thought you'd
seb- Either that, or your customers veloped many became gigantic move; mobility has become one
will be using it in something you corporations with numerous sub- more ingredient in their growth.
never thought of."
. » .sidiary corporations. Whether they
Continued growth often comes were big or small most of them
- True Growth
.
largely through continued change, were incorporated. Individual
Growth companies, then, in the
sparked in part by intelligent, proprietorships, partnerships, and growth industries of chemicals
planned ^K,.r,„n..ir resulting +Kic co-operativesgrowth inseldom at- main electronics becamefAi- a TrQi-.
research T« ♦m»n
in tninerl great
have the United and L'rnwlh cnmnanipc and rescientific discovery. In turn, this tained great growth in the United main growth companies for a varscientific discovery depends instates.
lety of reasons, and these reasons
part upon creative guesswork—a> What is a corporation? Chief have a striking similarity.
certain aspect of foolishness, if Justice Marshall's classic dcfiniThe true growth companies in
you please.
■'/!■ tion was that "a corporation is an chemicals and electronics have
Successful Diversification
Superior management encourages research and research brings
new products; i and with new
products comes diversification,
artificial being, invisible, intangi- been mobile corporations with su^le, and existing only in con- perior management directing comtemplation of the law. Being the prehensive research programs
mere creature of law, it possesses fading toward intelligent, planned
only those properties which the diversification within the framecharter of its creation confers work of a monopoly or a semi-
the most im- monopoly.
.. .. ' " ' V
Other industries that follow
s"™.lar patterns;* are, m all probability, growth, industries. And it
that which is planned.,
persons are considered as the J? probable that futuregiwth m' General Mills is still primarily same, and may act as a simple in- dustries will bring with them the
a miller, but through planned dividual; They enable a corpora- development of more grovvth comdiversification it has been invest- tion to manage its own affairs, and panies which can be identified by
ing up to 12% of its sales-dollar to hdld; property:without:t^
investiga- in chemical and mechanical prod- plexing intricacies, the hazardous feffven ^hods designed to
Growth companies* in chemicals upon it . . . Among
and electronics are often marked portant are immortality, and . . .
by, extreme diversification and the individuality; properties by which
most successful diversification is a perpetual succession of many
And it is a
rapidly
so
iJjg
fi
•
'
-i
spend the highest percentage of
saies on research and develop-
j.
Consider Radio Corporation o
,
^
^
^
AllisTchaTmers^which -It is chiefly for the purpose of needed for growth, there cannot
manufactures farm implements-clothing bodies of men, in succes- be?a true growth industry. In St.
and tractors, also is building sion, . with these qualities and Louis 20 years ago were three
anTh^rammcattons" tronfcs^ai^ am on g'Th^ ones "that actors°.
with
corporations large corporations—large enough
that the stock of each corporaby chemical and electronics today pin setters for bowling alleys as- these means, a perpetual succes- tion was listed on the New York
sidcr Just a lew ot tne divisions
.g fQr appUed research—that is— well
as
making ; tricycles and sion of . individuals are capable of Stock Exchange.
One was . a
into which K.g.a.is aiviaca. tciecorporati0ns are attempting to de- flip-top
cigarette
box-making acting lor the promotion of the shoe company, one was a stove
vision,
radio
ana
pnonogiapn, yelop
new
products and new machines.
i
; particular object, like one im- company, ' one was a chemical
electronic componenis
mciuuing
processes that soon will bring in
Of course, some diversification mortal being." /- r.
: .
company. All were excellent comnif- nrorlmore dollars through increased comes from an effort to offset- It is true that the great growth panics, operated by men of ability.
!fwc nnmmprpinl electronic mod- saiesdeclining profits in a non-growth companies in chemicals and elcc- If 20 years ago it had been necesnet's- and dozens of related deBut even the most advanced market by entering a growth tronics are corporations. When we sary for you to choose which com¬
partment*
growth companies it must be market. Schenley and National think of great chemical compa- pany you would like to have in
1
'
;
.pe hnvn
added, are lagging in BASIC re- Distillers have entered the chem- nies we think of great corpora- your community you might well
than tire averace of
search, a lag recognized many icals and ethical drugs business to tlons such as Allied Chemical, have chosen any one of these comtimes by President Eisenhower in supplement their liquor interests. Dow, Du Pont, Monsanto and panies and have been proud of
Option Thefr average growth has b«s frequent pleading for. more Not all diversification auto- »
been 7%—and more—a year; the scientific
pioneering, which is matically means growth. Some- S'eat electionic
comD-inv has shown true emwth
_
eiecworm.
America—one of the largest
tronic
average
dustry
c
•
.
growth of American
has been around 3%.
Mogt Qf (he dollars
in-
'esearcm
chemical
the
And
laboratories so
that many
discoveries
almost at
are
a
companies
loss as to where
begin in developing the myriad
new
products for commercial
to
of
use.
Chemicals and
tronics are beginning to meet the
they are spending a
challenge;
good
^
xi-rroW. Growth Companies
again that spending for basic Shoe Company - makes candy;
But the big growth of the furesearch by government and uni- Standard Tobacco makes toys; ture may lie in the destinies of
versities—as well as by corpora--Detroit Hardware Company pro- corporations that are smaller and
tions—was becoming increasingly duces orange juice; California not now well known, or in comsmall.
•
Eastern Aviation makes X-ray panies not yet big enough to make
Leaders in chemicals and elec- equipment. Although growth may use of the benefits of incorpora-
varied1 have been the
and so
S^r™a^"dun».
^
ten thousand per
the last seven years.
in
cent
in
many
crown
®
W^a rioze, trie, Westinghouse and InternaWhat is the reason for this difrecent meeting executives who can keep a dozen tional Business Machines.
ference in erowth of three fine
American Asso- balls in the air at once. The -s
A
.
growm 01 ll/ree nne
executives who can
Speakers at a
sponsored by the
electronics industry
cross in the last
S mt«et°in^:
trv—has
are in use. By so
^rhway 01 deserlbmg
its
flniihlorl
atomic reactors. American Machine capabilities,
that
being spent and Foundry produces automatic were invented;:; and
ment
"
.
o1o.rn
,
entire
The
k.c.a.
does
,
the
in
companies
what
Just
share
of
current
$800
k«:ho-
electronics, then,
growth industries. They have
done better than most other indus¬
tries in the past; they are doing
better than most other industries
the
result in such organizations, each tion.
situation must be appraised in-- Corporations are usually best
dividually to determine whether suited to take advantage of growth
true growth is possible. Certainlv. nntnntinis in mu- indnstrv. hut
fSTn'd^MC UnS
conditions. The shoe business and
,s*?ve business do not really;
themselves to benefits of con*
tinued research or constant diver-,
sitication; the chemical industry
thrives 011 research and diversifica j011- Ihe shoe company was in,
3 slabie industry; the stove cornPany was in a cyclical industry;,
the chemical company was in a
are
in the
present; there is reason to
-x
~
search dollar every year on basic
research. Schering will soon es-
..
,
*-
-
r
-
.
growth does not automatically cals and electronics again and
a growth company. But again have proved there are times
nf
...
4U
ral^ 01 growtn.
It is true t
that
we
all
like
that the
believe
than most other
.
.
,
.
. .
.
„ ...
The Salt Institute is attempting to another keyword leading often to of Chicago welded
company may
a
develop basic techniques for using still more growth.
metal bellows after
10,000%
seven years,
but what are the reasons they are
salt at,a vehicle to carry hormones,
Araf,„.ai
«
1
Electric and International Nickel but will you appreciate this
growth industries? If we can find vitamins and other cattle needs to
I>alu
ana.Legal Mflnopoiy —the maker of
growth as the
the answer to that question we beef cattle. Avco is building a.
Another aid to growth in chem-'sa^ ^ could not be done. Cook in their test flights vibrate the
.can,
perhaps, discover for our- scientific center for pure research icals and
electronics has been was small; but it had
dishes on your shelves and shake
selves other growth industries. For in
solid-state1 physics
and
gas monopoly, and often that monop- a special ability in welding that the plaster from the walls of yourif we can isolate the. ingredients
dynamics.
Owens-Illinois has a oly is a by-product of successful the bigger companies did not have, house?
Or will you appreciate
that make chemicals and electronbasic research program into the research.. When a company devel- Cook's success-^ here was one in<ii-vthe
10,000%-growth when you
ics grow, we can search for the chemistry
and
composition
of ops a new product that can not" cation that it was a.likely
must plan, as citizens of Orcutt,
same
ingredients in other indus- glass. Du Pont has been spending be patented a legal monopoly re- date for future growth.
"
; . Calif., are doing, to build your
What
future.
tries growth
that
they
mi
the first monel missile
both General
industries? We know
growth industries,
are
monel metal—had
growth in
provide
ascending rockets
developed
candi-
tries and
other
finding them spot
industries of the
and possible growth inupon
growth
present
dustries of the future.
Ingredients
The
of Growth
vital
most
element
in
an
industry's growth is management,
$70 million a year for basic suits with insured growth within
applied research; since 1950"that area of development for the
Monsanto hasispent more than $85V'company holding the' patent,
million
on
research, both basic Sometimes that monopoly may be
and
applied.
By
1961,
says a
by-product of governmental
McGraw-Hill, chemical industry's.
When a company receives a
new product sales will be 14 cents license
fiom the government al-
over
and
out of each dollar.
•
lowing it to engage in exclusive ing change, in places of living. might result from your personal
legal Within the last decade companies participation in attempts to enter
created
in these two industries have ag- the new space age.
Sfth^r rieveloDment ComDa^ies And while considering whether
for then development. Companies
are interested
lla^e Jn0.ved ®ntire branches of
P J J neighbor contheir business to towns thousands f ^
con
jf miles away. One electronics g0Qed inveshiientBec^sea com!
within
As a result of successful re- °PeraLons m. ft. given area a
a
potential growth industry will search and development growth is ^1011i0P°ly. 1S agam
with
•bring superior growth. By any inevitable. The development
°f dTfin"edTrea ofTevel'oDmenf
standard
the
growth companies one product usually leads
the Ali
;a,
,
devei°Pment
within the growth industries of research worker to another prod- w rnntr^nf
^ miay f
chemicals andl electronics do have uct —and another— and another. ^ con„tro1 of a natural resource,
superior
management. How do Goodrich researchers, seeking va
:oJipany or1 a 2rouP
you determine the competence of suitable substance for use in the possess
a
resource
management9 First
consider the manufacture of tires develonpd a" a monoPoly results unless it is
Only superior management
,
firm recently asked the personnel- good mvestment. Because a comto. decide where they would like* Pany may fit into the general cate^rSfgi^afS^
^ Ul? ^ ^
S" ST^rSnS^tT^ tot
d onginal Standaid Oil Com-, tire division there. Within the 1101 guarantee tnat it will be a
par\y once possessed a near-nat- last few years Raytheon has good investment or a suitable canura monoPoly until the govern- moved a part of its personnel from- didate for community financing.
ment broke up the big Standard Waltham, Massachusetts to Santa,
v
_
w.„ -.
mto many smaller companies—. Barbara, California; Fair child
No Gua^antee There Will
companies that continued to grow, Camera of New York has opened.
^*rowth
but without the aid of possession a center in Los Angeles; Clary During the last five years we
of Most growth companies ; r Multiplier of San Gabriel, Cali- have witnessed thestocks and soa natural monopoly." .
great rise in
in fornia, has .opened a factory in fashion of growth
mo1st of
•
i^turnonequity
management
'of
earn
Howmuch does
on
each
dollar
Secondly
consider
the
operating
profit
marginHow
much
profit has
-management earned over the last
five vears9 Thirdlv
consider the
•net
shareowners equity?
nrofit
nrnfit
has
margin'
How
management
much
brmight
prfducU^ c^rnotr"Plybe
hnt nnnlH hn
used in making tiros
of great use in making sweaters
a
-n
n
f
A Du For£
rr*
•
i
Jan piac^cady*ake
a^ a law
k
+f ^ime y°ur fiber has
T thl mar^et *w? yeafs'
y0U
V-G
? forced andmake
t° the
major
changes,
some
v Growth companies in chemicals, schools underground to keep your
and* electronics are aggressive'children safe from the dangers of
companies. Since they are not en- the missile testing in this.; great
crusted in tradition they tend to growth industry? Perhaps at such
seek out new projects, new de- a time industries with ■ lesser
velopments; they tend to be re- growth will seem more attractive
ceptive to ideas of change, includ- to you than any extra profits that
l\atura^
Volume 188
called
Number 5764
growth
stocks.
.
.
,
in-
establishing a new firm, or for
expanding an established firm, is
Many
by growth; they have bought socalled growth stocks with the idea
of
too
always
often
lost.
Often
the
holding, never selling,
and thereby creating
their fortunes.
Many private " investment
necessary resources. The
clubs started in recent years spe-
.
(421)
capital funds, the opportunity for
vestors have been in fact obsessed
.
I
The Commercial and Financial Chronicle
Selecting a growth company for
community
and
deciding
your
whether to invest in that company
problems that cannot be solved
estab-
Our
are
years
past few
in life that
the
future,
requires
the
The
forecasting
occupation
lows
is
clubs were many competitioa /nor
to
economic hazardous and full of impondergrowth companies- I;growth ".V
ables. But you can, at least, hazard
have
already
mentioned:
MonNor, may I add, is it conducive educated guesses as to what the
santo,
Dow, Du
: Pont, * in
the to sound social growth.
future for an individual company
chemicals, and I.B.M., R.C.A. and
Ciiir
,,
XT
i ■
•
may hold» even
y°ur guess is
biugests Novel Financing I Ian
correct only a part of the time I
Here is where individual and think you will feel certain that
group investors within a com- acquiring the facts
and acting
munity can aid not only their own upon those facts
was worth the
^ommuhity 1^ut the entire nation difficulties entailed.
^ the Sponsorship of growth enFor true growth---in nature, or
These
•
terprises within their community,
:
have
investors
found
man*
in business
or
—
and life as a product, of
growth is the central fact of'all
the universe; Yes* it is the central
fact of all creation,
" '
11
■■■—
'.
an
ment
in,
growth company is
that of an. investor
Presumably, the ,.r
investor in a listed stock can liqui^
date his holdings instantaneously;.
you cannot.V Your commitment is.;,
similar to a marriage: it can some-. :; '
a
greater than
times
•
(
the market until
\
facts.' I
have been presenting
I
wish
to
now
based
express
the form of
this*
Do
an
risk
enterprise unless
any
at the
you
SSiSS
their money may be lost,
The financial jungle is
with
it
noril- within
Wdden dangers
■
.
.
,
.
of the
published July 23, 19o8.
certain
that
the
t0(? ±ast*
.
,
with the profits
the
venture
but
remember,
—
As of the end
no
that
too.
fact
are;;. 'Private
you
prevailed past few
When
dollars.
you
debt—In relation to to-
of
end
dollar
whem
nwth
moraln fr^ th. When
are'
you
of
profit
the
but you
seeking
course,
Chase
the
a
"In
the
"Business
in Brief" adds, "our problem is to
maintain
Man-
a
balance between the
hattan review says, "the absolute growth of debt and the income
tQtal of today>s debt> and of its and equity necessary to support it.
m?j°r components, appears to be As private activity picks up, the
ab'"ty Problem wiU be to restrain the
the other profits t0 sei vice exist
aeo .
growth in government debt to
—the other profits that result from
In considering the question oi
,
room
for a resumption of
growth. These other profits, then, debt growth, "Business in Brief"
may make, an otherwise dubious reports that during the past dec- private financing,
investment a sound investment.' 6 ade total debt has increased 75%"As an objective," the Chase
/
1
as
against; 87%; growth in na-. Manhattan publication concludes,
v • Encouraging Small Industry
. tionak production,
while private
are
seeking
too
hould seek
I
the
encouraged.
be
financial
in the
perils
in
investment
perils
small
that
believe
must
industry
These-
"With
The
of
note
that
those
established
industries
have
,
•
at
firms
new
-
result
equitv
of
the
loan
funds.
inability
to
As
a
obtain
$i.7.2
53.6
1945
266.4
279 3
'
,
'
$107.0.
Source:
"
Celestin A. Durand, Jr., gen¬
A.
Durand
will become limited
& Non-Corp.
216.3
165.4
265.8
207.5
276.6
221.9
with Taylor, Rogers &
105 South La Salle
members
of
the
Tracy, Inc.,
Street, Chicago,
Midwest
Stock
Reynolds Adds to Staff
$72.3
A. L.
(Special to The Financial Chronicle)
Frederick
_
Co., Inc.,. have become associated
Exchange.
L.
U. S. Department of Commerce.
Celestin
31
eral partners
135 5
52.5
Exchange.
and
108.8
37.9
301.7
Stock
July
167.0
48.0
York
New
On
201 6
294.4
-
will become a partner in
AURORA, Illr—-F. D. Schwanz,
& Son, 39 Broad¬
Lewis D. Peace, and. other mem¬
New York City, members of bers of the staff of Schwanz &
29 6
^
Taylor, Rogers, Tracy
(Special to Thb Financial Chronicle);
Durand
24.2
-
Join
1
A.
C.
54.6
300.5
1957—
Aug.
99.5
1954
a
Schwanz, Peace,, Others
C. A. Durand to Admit
53.0
1956
have to be increased
position to-finance the-deficit
fiscal period. The temporary debt
ceiling of $280 billions will be upped and! there- are opinions
around that an attempt will be made to put a, large part of the
increase on a not permanent basis.
in
that the Treasury will be
so
that is expected in the current
89.0
16.6
>
Corporate
20.2
*
292.6
1952_
.
or
Debt Limit Must Be Increased
The debt limit of the Government will
partners.
and Local
$175
195Q_
are
established.
Federal
1940___^__^
'V"The need is primarily for longterm
interest rates.
Individual Corp.
State
end
well.
securities
irrespective of the maturity by the Federal Reserve Banks, there
are
quite a few money market specialists who are bearish-on
Treasury issues, aside from the shortest maturities. They are
of the opinion that with business conditions on the way to im¬
provement, there will be a change in the easy money, policy' of
the monetary authorities in the future and this will mean higher
the
_____
1929
financing reduces the
which
______
Year-
as
Refunding Operation
Even though there will be support for Government
way,
19?9-ei7
x
to the present:
in
— have
dltficulty in obtaining financing for
the expansion of their operations.
There is also a probability that
rate
stnrv
of gross public and private debt (in billions of dollars) from 1929
solid
have
'
r»eht
corporate and tax free markets
George A. Corroon, member of
the New York Stock Exchange, on
,
'
Uebt »tory'
57
The following table gives some of the highlights of the trend
#
period of time and this eventually will bring
conditions, not only in the' Government
Higher Interest Rates Projected
,
growth with price stability."
following table published by Institute of Life Insurance
„
success-
themselves
and
level and struc-
a
in the
maturing and called issues that wanted cash: instead of the- l%s
of Aug. 1, 1958, which meant that the Central Banks had to lend
support to the large undertaking of the Treasury in order to cut
down the attrition. In spite of the efforts of the Federal'Reserve
Banks the cash pay out of $2,770,000,000 was still on the large side.
structive contribution to economic
exception of
public and private debt:
prospects for growth
inadequate
also
debt that will make a con-
July issue of "Money-Matters," shows the highlights of gross
jn
firms
particularly, manufacturing
even
ture
Table of Private-Public Debt
'
this, declaring,part, that "there is ... a growing body of evidence that smallerand medium-sized businesses, and
their
notable
a
times—
•
in
-fully
the
financing of small business. -
special
2V2
pronounced
The recent Rockefeller report takes
-
multiplied
has
debt
of- from $180 billion in 1947 to $455
surrounding billion at the end of 1957.
.
spoke
I
industry.
especially
are
but
.
make(™om 101 a resumption
It is the« opinion
The Federal Reserve Banks in their role as protectors of the
refunding operation of the Treasury have been very heavy pur¬
chasers of the 1%% certificates due Aug. 1, 1958.
The owners of
the Aug. 1, 4% certificates as well as the September 2*4%s and
2%s, in not a few instances were not attracted to the one year
1% % issue, and as result did their own refunding ahead, of time,
with the early 1960 maturities being used by many of them f&r
this operation. In addition, there were many other holders of tHe
development
longer run,"
being followed.
favorable
more
in
years,
such
course
a
few money market followers that there will be a managed
Reserve Banks Bolster
tate the increase in the money
supply necessary to support a renewed advance in business activity.
1957j government debt to-
general;>
gi
community
about
be favorable to
church, when you day js SOmewhat higher than in
schools, when "Y°n-the i920'.s, but below the 116% at
invest in your community chest, the end of 1946.
;
you are seeking
profits
tellectual,
increase
warrant such
a
market
would
economic growth
and stability since it would l'acilirun
in your
result horn
annual
the
one
broad
based upon economic and financial, conditions and
obsessive belief that maturities of the Government
be
an
bond market for
16%."
hattan study says that in the short
in your
invest
now
of not
Looking ahead, the Chase Man-
.
invest
that
a
"bills
debt should be extended irrespective of whether or not conditions
net debt outstanding slowed markedly in 1956 and 1957. And dur-
of
tal;private output and to total inparticipate in any gamble.
debtedness, private debt is lower
But dollar profit is not the only today than in the 1920's.
V '
kind of profit. There are other ^'Government
debt—Equal to 62%
profits — profits that cannot be of gross liationai product at the
in
or
in
the
of
upon
would
resstraint, "Business in Brief" adds,
jn part were responsible for the
only playing the fool's game if you
measured
not
involved in
consider; re- average ratio that has
"sure thing";' since 1900.
you
member there is
will
eco-
be ex-' 1957; total debt amounted to about ing 1958 the growth in total debt'
respect 1-7• times a year's total national —both public and private—may
production,
equivalent
to
the be comparable with that in the
may
and
hazards
financial
every
that
Understand
pected.
end
"Managed Bond Market" to Prevail
Federal Reserve policies of
,.
debt
commensurateTotal
minimum
neutrality
However, it is evident, that the debt management program
ment debt rose 20%, mortgage
then debt expanded 15% and corporate
..ln consiaenpg the first qqesthe hazard to which
Business in Review
exis exposed is reduced amines these criteria;
capital
your
^
i
f,lis"?ebt to° hi«h? Is U Rowing
raising
overall program of not" tight credit.
only" policy of the monetary authorities,
does not seem to indicate any drastic
change in their program
for the management of the money markets, since the bill
holdings
of the Federal Reserve Banks can be decreased, or
increased to
offset purchases or sales of longer-term Government
obligations.
Bank »omic stability—consumer instal-
bank's- publication
new money
say,
of
-The
rise in debt in the past
live years seems to have been
reasonably
well
in
line
with
value your capital you must make
to
going to carry out the refunding and
ury was
and
clearly too rapid for
ski sem-
operations at rates that would be within a pattern: that would: be
consistent with a monetary policy of. ease,, or. as some
,
was
out of
early October.
specialists that heljr would
have to be given to the money
market, and quickly, if the Treas¬
total 1955, the
countless' poses two rhetorical questions: Is debt soared $29 billion
are
Do what j-ou vvilb
.
Short table published
private debt trend.
.,
the
cer¬
more
.
fraughtThe
capital is at hazard. As you
your
,
debt
bi-monthly economic- review 1955
them dircctlv and
warn
l"
1%%
Government
blance of stability to a market which had been, rather
thoroughly
disorganized and was bordering on„the fringes* of disordlinCSe.
It was evident to most
money market
unfrelievably large" growth in total output and total
thiee quarters of a tril- national wealth," the Chase Man11'dollars, according to. the cur- hattan publication says,
,\ss^ ^ Buslness ?n Brief,
It continues, "The increase in
you are pre-
enterprise unless
time
,
nation s
owed by individuals, busiand governments runs to
in
Do not
ask others to risk their money in
same
oi/
,
new
the
refunding operation of the Treasury but it also imparted;
•
debt level and structure that permits
at
-
pared to lose your money.
any
aim
we
growth and price stability.
an
moriev
,.
by Institute of Life Insurance gives highlights of public
^
an
vour
f.i
,
which
into the market and made sizeable
purchases of Government secu¬
rities. This move by the Central Banks, not
only gave aidj to the
capable of servicing existing debt
economy
opinion..
an
but:
is
It
not
and hopes
.economic
opinion --irn,
opinion in
The
admonition and is amount
.facts,
on
nevertheless.
°t 1957. Sees
cash
Federal's New Policy Lauded
_"e"t component has multiplied 2/a tames at
l
* ent*
.
of
cipation certificates due March 24, 1958, takes the Treasury
t
dissolved, but usually
only after agonizing soul-searching, leading to wounds that may
be
amount
realistic management of the public debt became evi¬
dent in the past week when the Federal Reserve Banks
stepped
m
v«ase Manhattan Bank reports nation's total private,, business
and public debt now at three-quarters of a trillion dollars has
increased 75% as against
87% G. N. P. growth in past decade,
..
the
pay out to owners of
the maturing and called issues.
Nonetheless, the attrition of $2,770,000,000 was a< very heavy one.
The $3,500,000,000 of new money borrowed through l1/2% tax anti¬
*
Record $750 Billion Nation's Debt Analyzed
listed stock.
a
down
to
A
in
purchases by the Central Banks of the
tificate pared
had
means
life;
mere
refunding operation of the Treasury was carried out
help from the Federal Reserve Banks, and the
massive
—
word, "growth" does not.The./risks .involved in
backing
open door to unlimited s?me enterprise may be great; the
and never-ending profits.
risks involved in not backing it
Your problem as a citizen of a may be even greater.
community interested in the de;
~
■■
the
insure
The
with considerable
—
in
for Treasury obligations has been
making new
though it is supposed to be receiving support frohi
The Central Banks by making
pur¬
even
of time.
.
that
market
chases of shorts, the intermediates and
long-term Government
obligations had given the market a semblance of,- stabilization in
spite of the liquidation which is still being done
by those that
are not in a
position to hold Governments for an extended period
.
growth of these fine compariies has been interrupted and
with the interruption has come the
awakening. Large capital losses in
these growth stocks are common.
General Electric in the electronics,
Governments
the Federal Reserve Banks.
fine
Now the
on
By JOHN T. CHIPPENDALE, JR.
sidered along with the conclusions
of the mind. And as with
anything
investment
the
of
Reporter
lished firm merges with a larger solely by scientific methods; The
enterprise that can command the feelings of the heart must be con-
have seen a wave of such
cialized in buying growth stocks.- mergers..: Such
; a " condition
is
Typical of the stocks purchased by neither
conducive
to
vigorous
the
21
SAN
W.
the
Robert
Chicca,
L.
Vollmer
staff
of
C.
have
been
added
Reynolds & Co.,
Montgomery Street.
SANTA MARIA,
McCollum,
Scheffler, and Evan
to
425
Maguire Opens
(Special to The Financial Chronicle)
FRANCISCO, Cal.—Julius
L.
Calif.—Albert
Maguire is engaging in a secu¬
rities business from offices
South Lincoln Street.
at: 301
He was for¬
merly with C. A. Botzum Co.
The Commercial and Financial Chronicle
(422)
22
all
of it would continue unabated for
and tax collections reflect the fact.
the bubble on top
time. It has not,
Other
type of financial legerdemain
tain that
Outlays Rising, Too
expenditures are rising too, and bid fair
continue upward for a good while to come. Of course,
other
to
had expected defense outlays to move up, and
complaint on the part of some influential figures in
tions.
Reserve itself
$7 billion and
housing, and other like outlays become almost
a matter of course in such a situation, particularly when
an election is in the offing. Such programs — including
those insidious guarantee and insurance schemes—tend to
glide through to the statute books without attracting more
than passing attention. A good deal of this sort of thing is
now
taking place or threatening to take place. It is a very
real danger to our ultimate welfare, not to say solvency.
It is further to be observed that these
greatly enlarged
requirements of the Treasury have developed at just the
time that the Federal Reserve
authorities
are
in the midst
prolonged and determined effort to force a state of
great ease upon the money market. The Treasury has been
unwilling to pay rates of interest that would attract in¬
vestment funds into its coffers, and the Reserve system
of
a
has
come
to its
rescue
with
a
policy which is designed to
enable the
Treasury to ignore or defy the natural forces of
market place. The net of it all is and will continue to
the
be
that
not
the
savings of the people, but arbitrarily
supply the Treasury with the funds it
created funds will
requires. One cannot, of course, hold the Reserve authori¬
ties too much at fault. Popular demand was such that
they could hardly do otherwise — and the Keynesian
philosophy has now so permeated the thinking of almost
all of us that it could hardly be expected that the Federal
Reserve authorities would remain free of its fallacies.
The result of what is going on is evident enough from
figures now available for all to read. At the middle of
1957, when the recession is generally held to have set in,
weekly reporting member banks held only about $25 bil¬
lion in governments. The latest report shows that they
now hold more than $32
billion, a staggering increase in
the course of a single year. The figure, moreover, is still
rising, and there is every indication that it will continue
to rise for a good while to come. Meanwhile, the Federal
Reserve banks increased their holdings of governments
/ from around $23 billion to well over $25 billion over the
same period of time. It was the
resulting enlargement of
the
the
so
reserves
of member banks that enabled them to absorb
government obligations and still have more free
reserves
by a wider margin than they had a
many
excess
year ago.
\
New Deal Sins Again
This
seems
to
us
to
economic sins of the New Deal
of the worst of the
days. In a very
the process amounts to the
real if not
coining of
Treasury deficits into the currency of the realm. It places
in the hands of various groups funds which do not cor¬
respond to the production of goods and services, and which
.stay out moving from one to another holder, each time
bidding for a limited supply of goods or services. It is the
very essence of inflation. And, incidentally, the course of
consumer prices seem to reflect it. Such a course as this
a
,
one
technical
sense
http://fraser.stlouisfed.org/ A
Federal Reserve Bank of St. Louis
in
call the "de-ccumulation" of inven¬
tories.
That
word which
did
is
hundred
a
dollar
that inventories
means
A-ccumulate.
not
they shrunk.
It
means
They did not take
weight.
on
during periods
high sales and in boom times,
the tendency is for inventories to
from first page
this boom after
1954,
feared
have
observers
might be in for
and
now
This
of
our
that
we
a more severe re¬
prolonged pe¬
underutilizing our man¬
of
riod
some
more
a
our
production capacity
probable.
seems
concern
was
based
on
a
But
dential construction, a step-up in
military and, p.thev; procurement
and public construction, and the
easing of credit.
Of these, probably the easing of
credit has
tant.
the most
been
impor¬
As the supply of loan funds
—relative to the demand—has in¬
the
creased,
Federal
Reserve
Board has cut the rediscount rate
down-swing, has been in propor¬
tion to the height of the preceding
boom.
It now
appears possible,
however, that this diagnosis did
not allow sufficiently for the ele¬
ments of strength and growth in
as
our
dynamic
economy.
It is true that the rate of family
and household formation is down
from 3 V-> % last November to 1%%
of
by 50%.
Further¬
requirements
of
their de¬
posits
have
been
cut.
Openmarket operations have added to
the lending power of banks.
The Federal Reserve is leaning
against the recession wind, and is
now—or
more,
reserve
banks
member
almost
against
certain
to
continue to
the
hands
once
from
have been the stimulation of resi¬
at all levels of business
up
in
and
diagnosis because histori¬
cally the depth of a recession, or
sound
boom
the
of
tide
consumers.
has
turned
to
recession, we tend
to paSs 'through a period of living
off our inventories.
Like Calvin
Coolidge
to
it
said, there is
once
"use it
wear
up,
a
time
it out, make
do."
To go
from a period of $5 billion
inventory A-ccumulation to $5
billion
tutes
DE-ccumulation,
a
have
a
consti¬
shift in the Gross National
Product
of
$10
billion
marked effect
and
can
employ¬
ment in manufacturing, on trans¬
portation and on other sectors of
on
the economy.
:>n
In the first quarter of this year,
inventories declined at an annual
rate of $8 billion, and this rate
probably has been. continued in
most of the quarter
Inventories
are
just ended.
still burdensome
do
in a few lines, but a considerable
substantially, but the birth rate so, unless inflationary tendencies curtailment has occurred. In the
still going strong.
There has reassert themselves. For this rea¬ next few months—on the
average
been no recession in the produc¬ son, businessmen are doing their —we should move from a
period
tion of babies and this industry, best to settle wage contracts which of
DE-ccumulation to a period of
if it may be called such, seems to will not force price increases. In¬ at least
stability. This in itself
rest on a solid foundation. While deed, one of the factors postponing
will result in reemployment.
it is true that unemployment has full recovery is the insistence of
It became obvious last year —
risen, total employment has re¬ organized labor upon increased
when the demand for consumer
mained high, and high wages have wages, greater than any increase
durable
goods
declined, that a
been paid all along.
in productivity and in the face of
number of industries had idle ca¬
For some months prior io last above normal unemployment. The
pacity — either existing or in
May, total income from wages and best way to stimulate buying is
salaries declined, but about that to hold the line on prices and you prospect. As a result of this pic¬
ture, there were scissors applied
time, it began to climb again. And cannot hold prices when wages
to plans for plant expansion. The
in spite of the substantial dip in are going up.
trimming is likely to continue
economic activity, disposable per¬
This shift of credit policy has
well into 1959, but possibly at a
sonal income in the first quarter reduced the cost of credit and has
Vacant housing
of this year was down only $4 bil¬ put the banks under pressure to decreasing rate.
and other space is rising to a cer¬
lion or 1% from its peak annual make investments and
loans
in
tain degree, and repossessions and
rate last year.
order to improve their earnings.
foreclosures have gone up slightly.
Then we find that
increased The prime bank lending rate has
But
government
transfer
payments, been cut from 4*:>% to 3U%. The
On balance, we can say that
such as unemployment compensa¬ prime commercial
paper rate has
tion, social security and veterans' dropped from over 4% last No¬ while not all of the trends are
benefit
payments,
have
offset vember to about 1 q>% recently. favorable, most of them are now
nearly $5 billion of the $8 billion Interest rates on long-term gov¬ on the plus side.
is
i
—
decline in the annual rate of labor
ernment
income.
have declined.
At the moment, it would seem
a further rise in personal in¬
is reasonably certain for the
that
come
Even
and
corporation
though
business
bonds
has
de¬
clined, the
money supply has not
been allowed to run off, as was
true in
the great depression in
It is generally believed that the
expanding factors will be suffi¬
cient to
encoufage
from
ery
the
a
modest
recent
recov¬
shrunken,
level of the economy, but not too
period ahead, due to the expan¬
much should be expected within
sion of unemployment insurance, the 1930s.
If time deposits are the next 60 days.
the increase in pay of Federal included in our definition of the
It is good to note that housing
employees at an annual rate of money supply, the money supply
starts have improved. Machinery
$l3/2
billion — including
postal is now about $9 billion above the
orders
employees, civil service workers
level of
and
the
billion
wage increases for private em¬
ployees who continue to hold jobs.
perity
the
armed
forces
—
and
Because of this
stability of per¬
sonal income, stability of expendi¬
tures has followed. Again, for ex¬
ample, expenditures on services
have risen without
retail sales of
ered
more
a break, while
goods have recov¬
than
half
of
their
moderate decline.
repeat
more than half of the
economic activity has
been due to what the economists
decline
stand at the im¬
The Business Outlook
pains to keep close
in
ture
Inventory Changes
Possibly
build
power
pensions, in aids to agricul¬
expenditures will also rise
by $2 to $21/£ billion or more.
We all know that
than
Reckless increases in old age
stronger — quarter by
State and local govern¬
of
Continued
cession and
In times like these few take the
be
quarter.
depositors would not buy governments if yields satisfac¬
could spend our way out of the recession, few are much
disposed to worry about how much is spent for defense
and not too much about how it is spent — provided it
tabs upon what is being laid out in non-defense areas,
or trouble themselves a great deal if large sums are spent*
currency.
ment
tory to them were available?
plant and equipment investment.
Because
of the proportion of
spent.
will
pressive total of over $60 billion. This upward movement
has been under way for years, but has risen sharply in
recent months. Why should any one suppose that these
spent upon it. It seems to us that that tendency is return¬
ing, if indeed it is not already here in full force. And in
the present state of mind of the nation, compounded of
uneasiness about our defenses and a vague notion that we
is
now
rejoice
cannot
purchased
of this recession. And, as we move
ahead, the demand on the part of
government for goods and services
cer¬
ing the past year savings deposits at commercial banks
have increased some
I
recovery
funds that dur¬
one
and
by a
Nev¬
ertheless, it is one of the factors
which will contribute to an end
are
compiles and publishes,
a
depreciation of the
existence and available to take up
the
immediately ahead. It is in this area that the ordi¬
nary citizen feels most helpless. Defense has come to be
exceedingly complex and technical. There is wide dif¬
ference of expert testimony as to what needs to be done
to keep abreast of other powers, notably Russia, and few
there are who feel competent to judge the merits of these
controversies. It is a fact though that, prior to a few years
a<*o at any rate, a great many had come to judge our
defense effort almost wholly by the amount of money
over
no funds already in
such Treasury obliga¬
The facts, though, belie any such statement. If one
the trouble to study the figures that the Federal
often said
takes
years
does nothing to make
do produce both.
that there
we
is
everyone
public life is now not that'they are doing so. but that they
are not rising fast enough and that current plans do not
call for sufficient increase during the months and even
flationary
sumption of other types of goods, but the advantages of
such a procedure are quite illusory. We can have our guns
and our butter, too, provided we produce them, but this
It
But
than
other
We See It
As
Thursday, July 31, 1958
.
Federal Government spends more
it takes in, the result is in¬
not enable us to produce weapons and do the
things which are necessary for defense purposes
without at the same time consciously reducing our con¬
may or may
Continued, from first page
.
.
It is
a
much of
ernment
good question to ask how
a part the Federal Gov¬
has
played
in
soothing
the fever of this recession.
Government's Role in Recession
The
answer
a
are
on
the
increase.
The
and about $6 Federal Reserve index of
physical
of pros¬ production moved
up slightly in
year ago this month.
May
a
year ago,
above
the
peak
and, probably, in June, after
declining for many months. Em¬
ployment has gained.
The con¬
vorable to recovery and economic struction
industry is
relatively
expansion. It is favorable to busi¬ strong.
ness refinancing at lower interest
These factors,
along with in¬
costs.
Of course, no one would
creasing government expenditures,
argue that monetary policy alone are
quite capable of giving us a
can stop inflation or arrest reces¬
net
expansion in the economy
sion. But readily available credit
after the summer doldrums have
Our
and is
financial
now
system
is sound,
highly liquid and fa¬
is
an indispensable, even if not
sufficient, cause of recovery.
a
been torn
The government, in the
fiscal year of 1959, is expected to
off the calendar.
Examines Agricultural Sector
Fiscal policy for the next year
will also be favorable to economic
Let
me
At
recovery.
the
find
is that
that
now
turn to
National
on
the
agriculture.
Chamber, we
side,
demand
apart from spend over $78 billion, but will consumer spending continues at
stabilizers, such as collect frOm business and indi¬ high levels with food sales run¬
unemployment insurance, the only viduals less than
$70 billion in ning well over a year ago, and
significant steps which govern¬ taxes.
Personally, I cannot be with food merchandisers
the
built-in
ment has taken to put a floor
der the
recessionary
un¬
tendencies,
happy
to
over
recovery
this particular boost
because
when
the
or
setting
holding record high sales vol¬
Our people have plenty of
umes.
Volume 188
Number 5764
.
The Commercial and Financial Chronicle
.
.
(423)
for food and they are buy¬
They are eating well.
money
ing it.
But
ties
exports of farm
of
commodi¬
generally down. Reduced
of wheat are the result
are
exports
larger supplies abroad.
For the
such
price cushions should
vide gradual adjustment so
lead
pro¬
to
as
farmers back to supply and
demand
We
conditions.
believe
and
programs
the
national
farm
farm
economy
exports are should rely in the main on the
of
supply,
demand
and
substantially below last year, plus forces
the\ fact that there has been a technology, which can not be ig¬
or
let-down in mill activity in some nored
circumvented.
This
same
consuming
and
cotton
reason,
oil
better
countries.
shipments
Lower
also
inventory situation
although feed grain
seas,
ments
are
fats
reflect
a
over¬
ship¬
because of dwindled
up
Here
at home, farm commodi¬
plentiful—to say the least.
The prospect is for another good
ties
and
year,
wheat
is
already
threatening to strain the
the
warehouses.
stock
may
level
of
not
the
but
years,
Meat
be
two
they
of
live¬
or
output
three
relatively
are
abundant, and the outlook is for
increase in the hog and cattle
an
population next spring and there¬
after.
■
As
we
prices
on
a
it
see
this
.J-
;■
fall
livestock
decline,, only
seasonal hasis, but if present
\
indications
hold
hog
will
prices
downward
cattle and
good,
show
substantial
adjustments
next
spring and in succeeding months.
Meanwhile, farmers' cost rates
continue at
relatively high levels,
though—for the time being,
anyway—increases have come to
of
Agriculture
and
of
more
is
becoming
more
It
is in¬
system.
It
use
land, labor and capital should
We
see
farmers themselves.
no
out
way
for
the
farm
business except by a series
adjustments that farmers them¬
of
must
make.
These
pricing commodities
include
that
so
will move into markets with
creasing
demand;
production
at
home
to
and
the
abroad
they
an
shaking
levels
maintaining and
in¬
down
markets
will
take;
improving
effi¬
that costs
so
important
be
that
such
adjustments
made gradually so
unwisely
and
to avoid
as
unduly
disrupting
the farm economy.
Affinity
want
day
of
port
National
cultural
brief
a
Chamber
re¬
agri¬
by
on
working
chambers
of
com¬
in
cooperation
At
the
legislative
level,
supplied to the business commu¬
nity in order that policy and pro¬
grams
for
agriculture
may
be
more
realistically understood and
appraised.
level,
At
the
congressional
actively
we
support
grams to promote the
I have
at
mentioned, and in line with
this
tions
pro¬
adjustments
the policies reviewed.
More specifically, we
level
to
organiza¬
realistic
more
controls
and
regula¬
tion, and particularly to reduce
the heavy and competitive hand
of
government in
stitutions.
si-':
of
market
our
in¬
the
changes
farmer
to
Tremendous
have
brought
greater depen¬
industry to sup¬
ply him with the equipment, tools
dence
and
a
urban
on
supplies he requires to func¬
tion
successfully.
It is not exaggerating
to say
that we are fast approaching a
situation
where
about
half
principal
adjust¬
very long ago
farmer raised on
so
he
hay
for
buys oil
tor.
by
to
men
improved
an
their
identical
the
actual
the milk is
farm
the farm.
we
the
on
economic
farm
pursuits.
support
or
For
the
in
other
this
sound
rea¬
humorous touch
may
people with low incomes
be helped or stimulated to
make
the
adjustments
necessary
diminish
in
pressures
ties
Here
only
ment
a
per
of farming today
higher capital invest¬
worker than in most
important industries. These capital
requirements and the increased
volume
of
typical
farmer
greater
business
credit
done
by the
leading
to
are
requirements, both
for short-term needs and for longterm
operations.
The
nizes
lem
National
that
the
today
farm
output
considered
are
factory to farmers in
their
costs.
If
we
and
at
going to
only come
this problem, it can
about by combination of adjust¬
ments in demand, pricing, output
ease
To
extent,
some
at
avoid
least,
A
term
for
cor¬
that
which
An
things exist.
easy
to
way
farm
An
programs.
policies
extensive
in
Sheet:
Addition
of the role of government in agri¬
culture is urgently required.
It
of
should
not
government
prosperity of
be
the
to
guarantee
any
obligation
the
segment of the
to
Blue
Sky Laws: The Ten
Com¬
Bull: The conversation
in
Depreciation:
industry's
senators
The
economic
that
price
of
minimum
exposure
some
protection
may
in emergency periods
of relative farm price decline. But
has enjoyed
company
very
rapid growth, with revenues in¬
creasing from $39 million in 1951
to $101 million in the 12 months
ended March 31,
1958.
Continued
growth
seems likely since the com¬
has forecast saturation gains
space heating as follows:
pany
in
19K8
JfWJi
%
14
6
9
12
27
19
27
48
55
to
those
to
in
other
_
New housing starts in the serv¬
area
are
promising; the pro¬
village of Levittown in
SEC:
appraisal
and
Director:
union
A
certain
of
labor
1959, and in accord with the
Memphis decision it has already
obtained
an
customers
(representing about 95%
Short
of
Consolidated
The
jargon
Olympus.
paid magazine
designed
for
worshippers
men.
Street:
idealists
(1) A community
and altruists;
(2) A
.
Fixed
company was able to earn
about 6% in the 12 months ended
June 30, 1958, but with
higher gas
costs the earnings rate will decline
unless bolstered by higher rates.
The capital set-up as of June
30,
following
recent financing, was
68-14-18, and a heavy sinking fund!
the debentures (taken care of
by depreciation cash) should grad¬
ually increase the equity ratio—
on
which Would also'bfe increased if
equity financing is done later this
year,
Bonds:
contracts:
the
look up and are
Investment
niscient
Load:
The
hungry
holiest
sheep
not fed.
Counselor:
An
(Special to The Financial Chuonicle)
Philip
S.
Hannaford
Creager
&
Street,
is
Calif.—
with
now
Talbot, 519 Cali¬
members
of
the
Pacific Coast Stock Exchange.
don't
sell
Harris
Upham & Co. Adds
(Special to The Financial Chronicle)
STOCKTON, Calif. —James W.
be
new
made
lacking elegance
mutual
funds
and
NASD: A clean life.
A tax-free incre¬
ment; good drawing room stuff.
en¬
pro¬
pipe under
for
New York City. The company ex¬
pects to spend about $127 million
its
on
current
construction
pro¬
of which perhaps $100 mil¬
be spent this year.
may
On
May 28 it sold $25 million mort¬
gage bonds and $15 million pre¬
stock
and
share
earnings, which have risen
steadily from 56c (adjusted for
To
gram
support this expansion
new gas reserves
The
sary.
system
and
$1.46 for the 12 months ended
June 30, 1958. Some of the
in raising net earnings is
uted
30-inch
name
of Joseph Faroll &
way, New York
Co., 29 Broad¬
City, members of
the
York
Stock
changed
to
Exchange,
Schweickart
Co.
R. L. Colburn Branch
VENTURA, Cal.—R. L. Colburn
Company has opened a branch of¬
fice at 132 South California Street
under the management of Samuel
Apple.
original line.
In
the
12 months ended
for
17%
June, the balance
showed a gain
the previous period,
stock
common
over
but the increase in share earnings
was reduced to about 4% because
the
of
10%
stock
dividend
last December and the
shares
of
common
one
stock
paid
million
sold
in
November. Of course, recent earn¬
ings
enjoyed
weather.
the
benefit
cold
of
*
The company is
70%
paying out about
of earnings and the dividend
a
somewhat larger proportion may
tax-free this year.
The stock
has
been
selling
recently
over-
counter around 21 ^ to yield
4.7%.
Cleveland Bond Club
Announces Fall
estimated at 5.2 trillion cf.
reserves
It
now
Club of Cleveland Fall Outing will
held
be
in
areas.
FPC
Louisiana
examiner
Enterprises
Issues 3rd Report
LOS
recommended
an
ap¬
increases
and
no
into
effect since.
nues
are
being
Kraft
Enterprises,
and
(Special to The Financial Chronicle)
Calif. —Ralph
L.
opened offices at
Eton Avenue to engage in a
Phelps, Jr. has
3124
securities business. Mr. Phelps was
previously
with
First
California
Company.
14c
Two With Frank Russell
TACOMA,
Wash. —George
F.
Russell, Jr. and Curtis F. Peterson
The company's last rate increase
the
annual statement
an
of
BERKELEY,
of
with other pipelines.
in
of
Ralph L. Phelps, Opens
by I960.
The company is also
building important storage facili¬
ties in Pennsylvania in cooperation
decided
In re¬
Inc., which makes a novel
amusing announcement.
new
expected to increase only to
was
form
estimated at 2 trillion cf.,
requirements
until 1971, it is estimated.
While
the cost of this off-shore gas will
approximate 23c per mcf. the aver¬
age cost of gas last year was less
than 12c and the average cost is
—
the
behalf
on
proval of the company's contracts
buy this gas from a number of
The
ANGELES, Calif.
arrival of his third
daughter, Tamra, Verner Kraft, of
Oscar F. Kraft & Co., has used
porting
new
including
Early in July
care
Country Club.
Kraft
to
take
Sept. 26, 1958 at The
on
Cleveland
the
hopes to obtain large
reserves
Ouiing
CLEVELAND, Ohio—The Bond
pro¬
fields
gas
along 600 miles of the Texas-Lou¬
isiana
Gulf Coast, with present
should
be
by installing a 36-inch
pipe, as compared with
parallel
the
success
attrib¬
substantial economies
to the
obtained
are neces¬
taps
reserves,
New
a
split-up) in 1952 to $1.36 in 1957
common
some
producers in Louisiana.
now with Harris Upham
Co., 340 East Weber Avenue.
Effective July 30 the firm
t
loops, more
available
&
will
by those who don't buy them.
Paper Profit:
currently
third
a
and
off-shore
om¬
one.
term
With
will
gas
With Hannaford & Talbot
&
A
is
stock may also be sold before the
FRANCISCO,
:
having to
higher costs of gas, has had
impressive record of increasing
an
year-end.
Charges:
Government
,j.
io\j\
The company,
despite
meet
be
Auble is
Gas, telephone,
bills, etc.
Long
and
heavy construction
Hudson
-•••..-> ferred
non-interpretative
power
a
cf.
the
lion
FORDON.
Fordon, Aldinger & Co.
Detroit, Mich.
for this increase.
The
daily capacity
from 953 million cf. to 1,180 bul¬
gram
microcosm of the Middle East.
RALPH
39
gram to increase its
lion
Position: Professional
medicine
Wall
Edison,
company
gaged in
on
A
with
the
Island Lighting.
To Be Schweickart Co.
electric
of
Sale:
Technical
the
of
Theory: A neat picture in
realm
gods
be
agreement
of volume sales)
"wheeling" or rate had been raised three times
transportation of 20-year gas sup¬ in the last two
years, the current
plies purchased in Texas and Lou¬ rate being $1. Last year's dividend
isiana by Virginia Electric Power,
payments were 32% "tax free" and
subscription.
leaders.
member
of bishops.
Dow
The
will
come
expects to increase rates late
in
of
Brooklyn Union Gas—
Consolidated Edison
Philadelphia Electric
able
are
pany
%
8
the
automobile
peculiar
temporary
be needed
at about
Public Service E. & G.
fornia
board
rooms.
who
agriculture,
area
100% load factor.
Long island Lighting-_
SAN
and connoting envy; used by those
—
a
earn
honesty.
including agriculture.
We recognize that because of the
economy
The
direction of
and
mandments.
and
revision
of
about 36c with
lower
gas is
comparable
pursuits.
art.
governmental
lead
to
July 10, 1958.
Bear: A bilious person.
the
mistakes
those
generally
competitors;
government
and
farmers
promotes
equalize opposing
forces; also used to present a fa¬
direct
past
of
are
sold in the New York
strong and dynamic business in
of
of
non
thinking.
subtraction
the
of
mar¬
being extended
now
rewards for their capital and labor
hierarchical
A
that certain
Balance
problem in its present size is the
result
agriculture
and
sine qua
a
Averaging:
house
costs.
and
the idea
satis¬
relation to
are
Assets:
prob¬
demand
of
Report:
vestment;
recog¬
farm
excess
semi-humorous
porate hullaballoo.
cade of
major
is
capacity in
prices that
Chamber
a
amusement:
own
Annual
business
for
follows
industry which I devised
my
living costs.
The
role
farm economy in the
a
Editor, Commercial and Financial
Chronicle:
their
calls
the
by Detroit broker-dealer.
labor
their
is
area
rates
area,
than
Investment Glossary
raise
can
keting
meas¬
exemplified in the Rural De¬
velopment
Program
by
which
ures
glossary of terms used in securi¬
and
Island Lighting.
The
company also serves the Piedmont
District of Georgia and the Caro¬
posed new
For this reason, farmers
becoming increasingly con¬
cerned
with political and
union
which
Long
whether
Glossary of terms used in investment field is presented with
are
operating
and
While the company competes with
other pipelines in the New York
Reader Offers Tongue-in-Cheek
or
else off
Delaware Power &
Light, Public
Service Electric &
Gas, Consoli¬
dated Edison,
Brooklyn Union Gas
Jersey will have gas heating
throughout. Another source of in¬
Today
someone
con¬
to a number of
utility
companies including Philadelphia
Electric, United Gas Improvement,
ice
oats
creamery
consumer.
by
strong and free
million cf. available from
storage.
Gas is sold under
Delaware, Maryland and Virginia.
people to find
of increasing their produc¬
tivity and therefore their incomes
today
pasteurized, packaged
and delivered
their
and
areas.
Daily Capacity was 948 million cf.
in
December, 1957, excluding 136
bond, and the company is not di¬
rectly involved in the Memphis
decision ramifications.
However,
with the rising cost of
gas the com¬
New
for the trac¬
the
to
wagon
a
of
goals,
Valley of Texas
Philadelphia-New Jersey-
New York City
metropolitan
ways
ments in the farm problem is the
LETTER TO THE EDITOR:
the
—
power;
gas
and '
interest
mutual stake in
the dairy farmer
milk and delivered
his
recognition
aims
common
their
Formerly,
packaged
it
the
horse
and
that
at
develop be¬
tween farmers and other business¬
in the Rio Grande
to the
need for many farm
the
"farming" as we once knew it, is
being done off the farm. For ex¬
ample, in the old days—well, not
and
closer to other business¬
in their interest and outlook.
We are at work to
men
pipe line network from Mercedes
to Tidewater sections of the Carolinas and the eastern shore area of
activities.
farmers
Gas Pipe Line
2,815-mile natural gas
a
lines and Virginia. And the
/'
the
operates
tracts
cooperate
pricing policies, to free the farm
business and farmers from gov¬
ernmental
Transcontinental
long-term
with farm
advocate
Transcontinental Gas Pipe Line
Company
our
agricultural work emphasizes edu¬
cation
and
information material
By OWEN ELY
z
organizations and farm lead¬
ership.
-
operation.
Securities
Utility
with
farm
First, on the to modern farming.
creasingly evident that prosperity business
aspects of farming. The
We actively support at the level
and
stability in agriculture de¬ ever
increasing importance
of of national legislation the
general
pend on adopting and following
business principles and practice
approach and thinking of those
well-established business practices
in
farm
operation
is
bringing who are devoting their efforts to
in farm
technical
Public
other business organi¬
work
rural
to give
now
carry
zations, and by practical day-to-
son
Growing Farmer-Businessman
local
and
One
These adjustments will be
pain¬
ful and difficult for some farmers.
For that
reason, we think it is
we
programs
through
be reduced.
can
I
business.
a
economic
be left to the
"v-::
pause.
produc¬
that the choices in the
means
even
a
free
a
ciency of production
today,
will
of
by economic forces work¬
ing through the price mechanism
selves
the
at
past
seams
and
levels
mined
are
crop
the
tion and the general
operation of
the farm business should be deter¬
in
foreign supplies.
that
means
specific
merce
that
This
economy.
23
Fall
have
Hence
1955
of
been
no
collected
put
reve¬
under
have
become
associated with
Inc., Rust Bldg.,
Frank Russell Co.,
as
registered representatives. Both
gradutes of the Harvard Busi-
are
nocc
Qr>hr»nl_
The Commercial and Financial Chronicle
24
.
.
Thursday, July 31, 1958
.
(424)
realize
to
more
Continued from page 5
that rail passen¬
service needs something more
than orders to keep it running.
ger
If it is
Compelling Reasons to Stop
Passenger Deficits Problem
to
be
real and continu¬
often
the
self short
simply to gratify local and
union
will
I
sentences
But there is all
pressures.
from
quote just three
recent
a
in the world, I submit, in <in The New York Herald
use
that
stopping
sort
[of, .imposition'
"Surely 'jtJdqeS wot' make sensfe.fv.C
a n^tioh which is busting'J
growth pi every
a lot of railroads will not survive;
•direction co nfrouted with slow .!
Along with this tailoring
of
—except as bankrupts—and a lot strangulation
by a disintegrating
passenger services goes the neces¬
more
will not grow in strength railroad
system.
A growing
sity
of doing something
about
and service to the public and to
country will have to have expand¬
mail and express.
1 believe the
the economy and to the National
ing, not shrinking, railroad servsolution here is going to be in
Defense. I am not crying "Wolf!"
two parts. One is, of course, ade¬
ice; the latest and best equipment,
I am
only mentioning some¬ not
antiquated stuff rapidly falling
quate mail pay. The other is con¬
solidation of the Railway Express thing thatthe public nriWM
apart. What the country needs is
20th Century transportation."
Agency and Government parcel
;* J
a
ing service, it must run as a
ness and pay its way.
.
busi¬
...
on
us
and
on
stopping it right
I
customers^—and
our
to ha ve
Otherwise
now.
its breeches with
.
service.
You notice I say
"offer¬
ing"-—not "providing." If you saw
the nearly empty and half-empty
trains we run only because some
into
would
not
service
public
true
a
be
a
burden on us?
operate nearly
We
that
a
thousand
editorial
Tribune,. :j
.
.
,
—
trains a day — 235 in
us run
through service, 669 in suburban
them, you would see the differ¬ service, and some specials. Our
Duty to Economy and National
ence between the two words.
We through service is between New post, for the purpose of taking
/ To get that 20th Century transDefense
are
ready ito provide service to York, Philadelphia, Baltimore and advantage of the economies pos¬
]>ortation it will be necessary, of;.
This
brings me to the final
people ?we know *want it and are Washington—and between those sible through the elimination of
course, to invest- billions—all of
willing to pay properly for it. In¬ cities on the East coast and Pitts¬ duplicate service. These two re¬ compelling reason why we .must which we must earn in the years
lace this thing together.- That rea¬
stead, we are- made to offer it in burgh, Cleveland, Detroit, Cincin¬ forms would enable us to avoid
■ahead,
son
is our duty to the National
markets where we know very well nati, St. Louis and Chicago. Our existing heavy losses in handling
We have, too, another duty to
economy and to the NaiionabDeit as not going to be bought, at any suburban service is mostly around both mail and express.
the nation—and that is to be ready
fense.
price. Year in and year out, that Philadelphia and New York. Let's
I have spent a bit longer on this
for war. Due to further
ef
passenger
commissions make
.our
•
thing—except making
a lot of un¬
jobs and giving a few
scattered people the satisfaction of
necessary
making a mass production indus¬
try lose money waiting on them
individually.
The millions lost in this way are
not
the; whole passenger deficit
picture. We also have the inade¬
quate-fare problem, the peak-load
commuter
problem, the sometimes
ridiculous full-crew requirements,
the sometimes confiscatory taxes
and
grade-crossing costs, inade¬
quate mail and express pay, and
We feel
so on.
sure
that the better
public and governmental under¬
standing vof our over-all picture
that
now
solve
prevails
some
of
will
help
these—but
it
us
will
do little to help up stop running
nearly empty trains unless
we
also
hove the help and cooperation of
the State Commissions.
Now,
State
we
railroad
Commissioners
free to act
ways
know
men
are
not
al¬
their business
as
judgment dictates. There are
times selfish politicans and
some¬
selfish
communities
in
lives,
too. Frankly, it is to get you off
that hook that we feel it is. neces¬
sary to give the Interstate Com-'
merce Commission some jurisdic¬
tion over local service, rates and
fares. I doubt jf the Commission
appreciates having that one de¬
posited on its doorstep. But its
our
doorstep is wide—and a local fel¬
low that can be Tight big and noisy
on your front porch will have to
plead his case quietly there.
I
know that businessmen do not like
to
be
relieved
of
responsibility.
But I should think state regulators
would be mighty glad to get out
from under that one, so that they
put your minds on doing
constructive, unpressurized job.
Such a job is needed if a lot of
railroads are not to be pushed
under by their local service prob¬
can
a
three categories
in
the order of mention:
Future Plans of
passenger service and are willing
to pay for it, we have almost a
billion dollars in passenger facili¬
ties and -equipment — which we
could .not -sell and certainly are
not going to throw away.
What
We PQ want is to make
our pas¬
business a BUSINESS—as
anything with a billion dollars
tied up in it has to be. And we
senger
think
a
that the way to
business is to do what
Pennsylvania
and
must
do:
make
any
it
busi¬
tailor the product
my
dispose
than
topics
three
The other two
of much
more
we
I
can
quickly,
though they are every bit as im¬
years to come, we
portant. But I did want to em¬
to
operate a first-rate
phasize something J am sure is
service with adequate frequency
already known — and which we
arid at low fares, between New
must face together.
We can no
York, Philadelphia, Baltimore and
longer bear our passenger defi¬
Washington. The time factor here
cits. We must tailor our service
is not too much of an advantage
to
the
realities.
And
above
to the airlines, and the parking
all, regulatory Commissions must
of automobiles in those cities now
work with us on that job.
The
creates a major obstacle to driv¬
public and political climate
is
ing. The potential of rail travel more and more in favor of this
between those
short haul cities
—and we must do it at long last.
is
therefore
substantial, and
I
Arguing about the accuracy of
think this will be good business
the ICC formula won't help.
We
lor our railroad as far into the
For
many
.
will
eventually have only two or
such trains each night be¬
three
Chicago and the East; and
two between St.'Louis
East.
Of course, Pitts¬
tween
only
one or
and
the
will
burgh
to
the
have
East
have
and
similar
West.
service
We
shall
to
that
know
The
there will
It has to—how else can. our
farms, mines and industry support
and service our growing popula¬
tion?
This means that year after
of air,
ment
war.
well'
as
recession
this
that
as
is
ing.
and
year more
and goods
materials
more raw
will have to move. De¬
spite the growing extent and ca¬
carriage,
we can expect more
help from those forms of trans¬
portation than we got in the last
way
will still be expected
major part of the job—
But
we
to do the
j
and we and you
must never forget
connection, you prob¬
that. In that
ably know that since the close of
the last war, the Russians have
pacity of our highways, waterways
and airways, they cannot possibly
provide all the increase in trans¬
port this is going to require. Rail¬
been working hammer-and-tongs
improving and expanding their
railroads—and since Sputnik we
should have a pretty good idea
what happens when the Russians
roads will still have to do half
work
more
be
of the total job—and it
or
will
hammer-and-tongs
thing.,
.
■
.
f
,W
■
.,
at
any-,
[.
•
r
-
is
doubtful
if
this
ing income totaling $1,124,046,000.
to
But for the
on
had
a
To cut my¬
us
with it.
,
-
long
program
We will not be able
it for hours.
on
compelling reason
as the passenger
deficit problem persists, neither
Continued
the shipping NOR the traveling
public can be adequately served.
I don't want to bother you with
testimony-type data, but here are
some
figures that put the situa¬
tion better than any words 1 can
So
freight cars is 27 years. You know
for through service will pay its what "average" indicates here —
full cost, but certainly with the it means that a lot of our equip¬
reduced train mileage involved, ment is a great
deal older.
It
plus higher fares for the de luxe also indicates, correctly, that we
service, it should subsantially re¬ have nowhere -near the amount
duce existing losses and maintain of new or almost-new equipment
that a railroad that wants to give
a satisfactory service for the pub¬
lic, who do want good rail pas¬ the best service available any¬
should have.
senger service—particularly when where
Why not?
other modes of transport are un¬ Well, let's look at our net railway
able to operate.
operating income figures for the
As
to
commuters, the heavy 10 years 1948 through 1957. In
commuter service in the metro¬ that
10-year period, we had
politan areas in the East should freight service net railway operat¬
be continued.
.
forth
second
this:
is
develop another way of
handling the so-called headend
traffic
(mail and express), and think of.
the
answer
to
that w^ll be,
I
On
our
railroad, the average
think, in expedited freight service age of our passenger cars is 31
—probably "piggyback." ;
years;
the average age of our
It
a
never
same
period,
passenger service
we
also
net rail¬
from
page
11.
...
Trends in Social Welfare
Expenditures and Programs
of
it is estimated that
public expenditures of $33 billion
programs,
in 1957 should increase to between
$62.5
and
$75
billion
by
1967.4
tures
of
the
total.
The private
•
health
one-third
about
or
cornbined
(about
;
r
share is highest for
66% to 70%) and
Omitting education, for the other
the lowest for education and wel¬
two
types of programs it is esti¬
mated that public expenditures of
fare
$20 billion in 1957 should increase
identified
io
penditures such as individual and
family expenditures for medical
between
$38.5 billion and
billion in 1967.
a
Can
we
decade?
$45
involve
attain this goal in the next
I think we can, if we
maintain
panding
.
This will
doubling of dollar expenditures.
These
a
healthy, growing,
economy.
expenditures
and welfare
the
Gross
1957.
ex¬
r
for
health
amounted to 4.6%
National
Depending
Product
upon
of
in
the future
(about 20 to 25%).
Private
.
expenditures
as
direct
may
be
consumer
ex¬
,
and
education;
employer
and
employee contributions for*
retirement,
disability,
and
life
insurance, and philanthropic con¬
tributions
to
private
agencies, i
care
Somewhat
different forces
work in these three
cannot
we
pact
of
areas.
explore here
at
are
While,
the
im¬
these
illustrate
forces,
we
can
the likely dif¬
effects
upon
different
some
of
Gross National Product, the pro¬
operating income deficit of
ferential
jected expenditures for 1967, in
$523,767,000. Because of this pas¬
programs.
the
Rockefeller
Report,
range
senger
deficit, our net railway
Contributions to health, welfare .,
from 6 to 6.6% of Gross National
operating income was scaled down
and pension plans will undoubt¬
Product.
Thus, while public ex¬
to $600,279,000.
Had we not had
edly increase in absolute amounts
this deficit, we would have had, penditures are estimated to double
and
probably relative to Gross
in terms of dollars, the increase
after taxes, $282 million more cash
National Product,
although this,;
is about 40% in relation to the
to use.
will depend upon the extent of;,
Gross
You see of course what a dif¬
National Product.
changes in our social insurance
ference that $282 million would
Total Social Welfare Expenditures programs.
Payments by individ-r
have made. We would have a lot
Let us now look at the situa¬ uals for life insurance, while in¬
less old equipment and a lot more
tion from the standpoint of all creasing in absolute amounts, may';
given a fair return on our in¬ new equipment. We would not be
remain relatively stable in rela¬
social welfare expenditures, pub¬
vestment if it is earned.
facing the huge budget of de¬
tion to increased Gross National;
lic and private.
A true measure
Mass transporation is the great¬ ferred maintenance we now
face,
There
are
conflicting;
of the impact of social welfare Product,
est asset in the development of
accompanied by huge force re¬
forces &t work which may change,
metropolitan centers, and center- ductions. We would have been programs upon individuals and
these trends.
city and other property values are able to take advantage of more the economy involves the combi¬
very closely tied into it.
While technological advances, giving our nation of both public and private
Health Expenditures
;
I am opposed to subsidy, as such,
Unfortunately,
a
patrons the benefit of the better expenditures.
Several long-term trends are
periodic total of both kinds of
it seems to me that something service and lower rates
thereby
most evident in the field of medi¬
expenditures is not available. The
along these lines is going to have made possible.
■
Twentieth Century Fund made an cal care. These may be summa¬
to be worked out — and I am
Well, the $282 million is
way
.
1
♦
.
t
gone
with the wind instead of into the
railroad — and
there's
no
use
mourning it. Nor is there any use
grinding our teeth because a lot
of
those
away
and
millions
were
tossed
waiting for intrastate rate
fare
increases
the
railroad
problems there are a with the passenger problem than should have received, and
operat¬
fairly prominent example of the I have seen for some time. The ing trains almost
nobody. was
Whole problem. Bo, how do we press, the public and most com¬ using -or stations that have
long
think our service can be tailored missioners are coming more and since been
practically deserted—
our
I
tempo¬
rary—and that when it teases.- the
economy is going to.'resume grow¬
do
develop¬
highway and water-
National
the
at
You know
economy.
That is what our railroads had
constantly growing job,
7,
So our responsibility—rand yours' better be doing, too—both for the
future as we can foresee.
be any formula that would apply
—is unmistakable:
the .railroads economy's sake and for the sake •
As to the second category, we with equal accuracy to all rail¬
must grow with the job. As a citi¬ of national survival.
It is in thatexpect to provide a de luxe over¬ roads—or even to all branches of
zen and as a railroad man, this is
interest that we ask you and your
night service—and, to some ex¬ a railroad the size of ours.
one of my very deepest convictions
colleagues all over the country to
tent, day service — between the
—and I have been known to hold let us do this job—and in fact help
Deficits Are Self-Defeating
large cities we serve. I think we
both
happy to say that there is now
very active support of it. In fact,
to the market.
despite recent costly setbacks on
_J don't want to lake a lot of fare and abandonment matters by
tjme about my own railroad. But a couple of our commissions, I
we do operate about one-seventh believe there is more constructive
of the Nation's passenger
trains, thinking going on in connection
ness
of
intended.
charge fares to make us whole
these costs.
The question is:
"Who
is
going to
take these
problems.
losses?"—since obviously the rail¬
I imagine that as I have been
roads cannot keep on taking them.
discussing some have been think¬
There are very active movements
ing: "Be just wants to get out of
now
in several cities to develop
the passenger business, poor fel¬
plans whereby the railroads will
low."
operate the commutation service
Well, our railroad does NOT as agents for the city, or state, or
want to get out of the passenger
both. We will provide the serv¬
business.
We could not if we ices
requested and at fares pre¬
wanted to: aside from our duty
scribed
by them.
We will be
to customers who
really want made whole on our costs and be
lem—and their local rate and fare
one
expect
some¬
times selfish unions and sometimes
those
at
look
look first
Let's
-
sort of thing costs us millions
without really accomplishing any¬
estimate for the year 1950. and a
projection for 1960, and with some
modification
and
broadening in
this approach, I have prepared the
estimate of $60 billion for 1957/
Private expenditures (or more
specifically, all non-public ex¬
penditures) for health, education,,
and welfare are equal to about
one-half of the public expendi4
Ibid.,
p.
68.
rized
as
follows:
,
(1) There has been
in
•
share
the
come
(2)
of
the
increase
national
allocated to medical
in-(
care.
An increasing proportion of
medical
care
costs
is
through insurance
public funds.
,
an
Both
trends
being met;
through
and
;
appear
likely
to
continue in the future.
Total medical cafe
expenditures'
Volume 188
Number 5764
.
The Commercial and Financial Chronicle
.
.
have
quadrupled during the past
the per capita expendi¬
tures have trebled, the proportion
of the
total
spent from public
25
years,
ly recent development in private
is the increase in
philanthropy
corporate
25
(425)
Strengthening
Cooperative
giving
for educational
and general welfare purposes.
To
There
.
the
are
Federal-State
Programs Relating
Social
Welfare
aspects of pub¬
many
funds has
We should give every
a
accelerating the upward trend of
lic policy raised by the
projections
and speculations I have but brief¬
corporate giving in the next dec¬
ade."5
ly
more than doubled, and
larger percentage—closer to 5%
at
the
present time, instead of
in the past—of our national
income goes for medical purposes.
4%
as
Total
medical
expenditures
What
effect
to corporate
giv¬
average about $100 per year for
ing will have on our voluntary
every man, woman and child in institutions
and
agencies merits
the nation.
The total medical bill
is thus about $ IS* billion
country
as
sumer's
while
share
these
in
for the
The
con-,
costs
—
increasing in absolute
amounts
has
been decreasing
the share from pub¬
;
increases.,
Philan¬
—
relatively
lic :
whole*
a
as
sources
throphy
business .provide
and
a
small but slowly increasing share
of the total.
.With
V
..
V
.
'
growing and aging pop¬
a
ulation, and the demand for
more
and better medical
services, these
expenditures will continue to in¬
crease.
Medical expenditures are
increasing
approximately
onehalf
billion
dollars
annually.
It
will not be many years, at the
present rate, until medical expen¬
ditures
exceed
$25 billion an¬
nually.
Insuring
has
care
the
costs
tended
penditures
medical
of
to
increase
two
for
reasons:
ex¬
(1)
by eliminating the financial bar¬
rier
to
medical
and
care
(2)
by
Philanthropic contributions for
health and welfare purposes rep¬
resent about $2 billion of around
$20
billion
and
welfare
of
the
private
10%
of
amount
increased
$400
all
five
million
health
expenditures
proximately
While
or
the
ap¬
total.
expended
fold
from
about
in 1930 to $2
billion
the proportion of
national product has
gross
about
five-tenths
25%.
outlined
outlined
in
my
^
ing
specif ic'here
one
_
namelv
were
thropic
raised
contributions
welfare
would
It
be
thus
about
$3.5
the
a
smaller
R?
1totaled about $3.5
v,
\
\
i
R
l
£r
°\per
? the stand"
£ i°nf
i
(he Federal
its
its
hid
but
1%
total
are very
not
are
important. The
usefulness
useiumess
yet
been
used
whinh
which
to
its
social changes in the
or
provision of medical
are
not
Twenty-five
of
a
the
-
which
care
visible.
now
years
insurance
ago,
the
use
method
controversial
was
issue
in
medical
care.
This/ is no longer
Today, the public whole¬
heartedly accepts the insurance
principle, as do the hospitals and,
to some extent,
the physicians.
Every effort is being macfe to
extend it on a voluntary basis and
to expand it to cover a larger
proportion of people and a larger
proportion of medical costs. Nev¬
ertheless, a substantial proportion
of low-income persons and high-
true.
services
cost
from
excluded
still
are
insurance
It
coverage.
is
doubtful whether existing volun¬
tary arrangements
these
cover
or should
completely.
can
areas
While the exact character and
tent
of
funds is
financing
from
ex¬
public
controversial issue when
a
Now let
look
us
The
siz™educS ImroSL
hQC
has
not
maximum
national
gross
1929,
they
were
product.
system
and
of
health,
welfare which
we
years
spect.
tax laws
or sources
But it will give us
a
pro¬
vocative target to shoot at.
that
assume
tributed
1.6%
from
then
sources,
a
will
be
us
to
lion would be available—or
near¬
ly twice that of in 1955.
There
is
no
question that
amount could be used.
many
this
There
are
social welfare needs which
not being fulfilled for which
voluntary agencies are suitable. Is
it possible to
raise this much
are
money
through existing arrange¬
ments?,.
The
Rockefeller
Report points
out:
"Charitable contributions by in¬
risen to unprece¬
dented levels.
5 See
T h
In
addition,
a
fair-
Karter, "Voluntary
Agency
Expenditures
for
Health
and
Welfare
from
Philanthropic
Contribu¬
tions, 1930-55," Social Security Bulletin,
February 1958.
o
mas
This
in
nroduction
comim*
coming
iar«e^
in
the
in-
an
allowables
increase^ ^2, ^
will
petroleum nroducts
as com-
share
a
in
in
and
could
re-
o£ drills
movements
jng eauinment
Lumber and build-
general revival of business
May, cash items amounted
460,000
while
current
to $13,-
Increase
totaled
$9,711,000.
Net working
capital aggregated $15,394,000, off
from $17,381,000 a year earlier,
of
needs
than $1
more
Of
a
ac-
tivity would aid carloadings.
liabilities
labor
and
material
costs have lowered profit margins',
The transportation ratio in 195?
to
rose
share.
1956
37.2%
and
a
35.3%
in
...
.
year. The higher cogts
wlll he offset to some extent by
higher
rates
improvement
particular interest in Texas
against
further rise is antici-
rier's
and
completion
projects.
modernization
The
of.
car-
in—
program
the
system.
It is not difficult for a securities.
At the end of May, ized traffic control, yard changes
high school sophomore to cata- Missouri Pacific owned 77.8% of and mechanization of maintenance
logue
in
great
detail
various the total of Texas & Pacific shares
explosive population growth
ahead, a substantial dollar in¬
crease in expenditures for
health,
education and welfare will be
quired.
Some
funds will
of
come
the
re¬
additional
directly from the
building
minor
the
nation
our
upon
the
criticisms
without
Federal-State
and
defects
of
Federal-State
system just as
it is possible to do with the insti-
&
Pacific
large
Missouri
are
holdings
of
the
T
Pacific
.
installation of central-
s
company's
operations.
outstanding. This included all of
the preferred stock and 64.3% of
the common.
Only 13,459 addi-
'
' 1
'
Joins Francis I. du Pont,
(Special to The Financial
Chronicle)
marriage, the family, tional shares are needed for an
LOS ANGELES, Calif.—
or the Congress.
But 80% stock interest, the amount
it is much more important to keep necessary for filing consolidated Clarence L. Warren has become
sion, health and welfare funds and
the large picture in mind and to tax returns. Either eventual conconnected with Francis I du Pont
philanthrophy), and a major pro¬
portion from public sources (for recognize that the Federal-State solidation with the Mo Pac. or & c
,st u
Center
,
He
system enables us to seek and find a leasing of the property by the
'
education, health services and so¬
ways
to accomplish broad and latter with a guaranteed dividend previously with E. F. Hutton Se
cial security).
If our gross na¬
important national objectives for is anticipated. As a matter of fact, Company.
tional product grows at 3%
per
the conservation
of
our
human
•
•
-';V
1
: ^
year, it will be about $583 billion
and natural resources with decen■
"
'
~~~
~
~
'
1
in 1967, in which case expendi¬
consumer (for medical care), some
from private sources (private pen¬
tutions
of
democracy
,.
■
of
tures
billion
$90
more
billion — about
than
at
$30
present
—
as
today.
The
Rockefeller
could
increase
we
present
tralized
varying needs and changing cir¬
cumstances.
7
welfare expenditures from
$60 billion to $100 billion without
the proportion of the
national product allocated
"Health, Education and Welfare Pol¬
and
Growth
Expenditures
and
Federal
the
for
General
Economic
Welfare"
in
Expenditure
Policy for Economic
Growth
and
Stability, Joint
Economic
Committee, 85th Congress, Nov. 5, 1957,
919-955.
pp.
8
Sophie
State
Dales, "Federal Grants to
Governments, 1955-56,"
Security Bulletin, June 1957, pp.
R.
Local
arid
Social
11-15.
(Special to The Financial Chronicle)
LOS
ANGELES,
Calif.—Edwin
P. Balmer, Robert A. Johnston and
gross
John
E.
for this purpose.
staff
of
Assuming that this goal is an
attainable objective from an eco¬
the
South
MeGhee
have
joined the
Lester, Ryons & Co., 623
Hope Street, members of
New
York
and
Pacific
Coast
point of view, the major Stock Exchanges.
policy question is how can we
proceed to develop more effec¬
Ingalls Snyder Admit
tively and more promptly the
On Aug. 15 Ingalls & Snyder,
necessary social and fiscal policies
100 Broadway, New York
City,
and modifications of existing ar¬
rangements which will make it members of the New York Stock
possible to reach this objective in Exchange,
will
admit
Marjorie
an evolutionary manner consistent
Riegel Ingalls to limited partner¬
with
other
national
goals and
ship.
values.
nomic
devices
come
to
mind:
principle; broadening of services;
extension of
tion
research, demonstra¬
projects and training of
sonnel; and
more
effective
the grant-in-aid system.
6 P.
51.
per¬
use
of
:
182S
and
19S8
"I have received your friendly letter of the 11th
inst. with the gift volume of Scott's Commentary
on the Bible,
Stereotype Edition. With my sincere
thanks for your kind intention, I must pray you to
consider me as a subscriber for the book and to save
the trouble of
repeated payments enclose
a
check
for the whole
subscription, a general principle of
propriety interdicting my accepance of articles of
value, while I
Three With Lester, Ryons
increasing
Several
.
administrative
responsi¬
bility and wide latitude for ad¬
justment of specific policies to
icies
.
.
.
expansion of the social insurance
dividuals have
with $3.50
Pared
in
crease
off 58.3%, amounting to only
share
Detier
reduced and there has been
during the period, but net income
a common
better
inventories have been
corresponding months of 1957.
ing supply materials traffic
Even with the drop in
earnings, probably will increase withf
responsibility and with the carrier continues in a good additional home
construction, and
latitude for adjustment of financial
position. At the end of a
able to meet the rapidly changing
and expanding social and econom-
social
con¬
be
ic
in
all philanthropic
total of $11.3 bil¬
to
rL
In order to fill existing gaps
and to meet the needs created by
1967,
product of $707 billion for 1967
(based on a 5% growth rate) and
likelv
Depreciation charges should exexpenditures, have not weakened the States but ceed 1958 equipment maturities
have strengthened them and
public and private, for a decade
pre- by more than $1,000,000 adding to
ahead is a perilous attempt and served the Federal-State
system the cash flow, and total tax defermost likely to be wrong in retro¬ in this
country. We will not be rals this year should amount to
In
while
1.2%,
with only moder-
and
72 cents
corn-
6
ate cuts being made in enninment
was
in
earnings
^Kei§ht traffic. Was off
9j% lntthf
hal£ fr0.nl a year
ag0
but traffic comparisons ares
weie oown less inan
gioss revenues,
believed
oeiieved earnings, in com
™nths will.show .some im.
^
for all social welfare
same
1930 and 1947 they reached 1.6%.
If we
assume
a
gross
national
p
is
•
achieve essential national
objeclives which decentralized adminwide
our
Report indicates a needed increase
sively at the area of philanthropic of $30 to $42 billion in public
contributions.5 Total religious and expenditures alone.
If our gross
philanthropic contributions were national product increases at a
$5.9 billion in 1955, or 1.5% of 5% annual rate to $707 billion in
the
.
n
Dp-
transportation costs,
cooperative Federal income taxes were lower
Federal-State
changes in
inten¬
more
recession
istrative
would make the total expenditure
of
$90 billion about 14%—the
Philanthropic Contributions
business
repairs
grant-in-aid
social welfare expenditures in the
future
unless
there
are
some
approached from the standpoint would come to about 15% of the
of
"principle," the most likely gross national product.
With a
new approach to the problem may
gross national product growing at
4% annually, we could reach a
pragmatically develop as a result
of the special health needs and total product of $642 billion, which
costs of the aged.
and also the petroleum industry.The railroad owns 105,196 shares
of TXL Oil which has speculative
oil possibilities.;
{
'
die cuts Deing maae in equipment months. Oil
notentialities
potentialities.
education
total
general
.
a cutback in
allowables
and
the
production
merger report haa
by Missouri Pacific
directors and the subject is expected to be discussed at the
August meeting of the directors.; >
Progress
continues
to
look:
bright for continued industrial ex-,
pansion of the service territory
grant- spite a
in-aid mechanism is a
great social vvay maintenance oiitlavs operatinvention which has demonstrated
ing Wenses were downtess than
health
of
th.is yeaV despite the drop
111
earmn§s during theJ early
months of this year- Last year the
road paid a total of $8 in dividends, including a year-end extra
of $2 a common share. \; ;
;
Revenues in the first five
months of this year fell 9.9% under the like 1957 months. This
economy, or was caused by
Budget, they
philan- have developed over many
likely to in this country enables
share
11
ri®
nT frhln -f J, 1 highways, airwV? aai] ????
rvii
Hiutnrf
Texas & Pacific is expected, to a preliminary
contjnu^ ?ts regular dividend pay- been received
cooperative
billion.
are
.
'
of
contributions, or an increase many details to special circumadding the overhead costs of pro¬
in philanthrophy, as incomes rise. stances. We should
strengthen and
viding the voluntary
insurance
bioaden this system
rather than
protection. As voluntary insur¬
Total Social Welfare Expenditures weaken or dismantle it as has
ance
coverage
continues to in¬
for 1967
been suggested m some
quarters,
crease, these two factors will con¬
To present overall projections
tinue to operate unless there are
Federal
grants
to the
States
economic
Texas & Pacific Railroad
ments
svstem
Ln7c ffwV
Federal-State
philan¬
the
that
appears
tbrop contributions
even
of
for
purposes,
grant-in-aid
Federal
in¬
1%—about
from
eral
large but
national product of $707
gross
and
of
If about five-tenths
billion
be
have
the
creased from about four-tenths to
a
I
in
the
social
welfare field in detail elsewhere?
has
1955,
of
incompletely
paper.
careful reflection and review.
very
in
and
this
significant shift recommendations
a
from individual
impetus to
Joins
McDonald, Holman
(Special to The Financial
BEVERLY HILLS,
mond
L.
affiliated
man
&
Drive.
Sodersten
with
Chronicle)
Calif.—Ray¬
has
become
McDonald,
Hol¬
Co., Inc., 214 North Canon
Mr.
Sodersten
was
ously with J. Logan & Co.
previ¬
am in the public service.
glad to possess the Book, not only as a
very useful work, but as a creditable specimen of
our
Country's progress in the Arts, and of the en¬
couragement afforded among us to the enterprise
of those who apply the most important of them all
to promote the cause of morality and religion.
"I am with a cordial return of your kind feelings,
"I
vour
am
friend and fellow citizen.
"JOHN
QUINCY ADAMS."
Letter dated March 14, 1825, from
of the United States to W. W.
the President
Woodward, Esq., of
Philadelphia.
It is
quite possible,
President Adams
ago
was
and
even
entirely probable, that
century and
a
quarter
or more
in action than
public servants of today who have been
no
numerous
a
more
pure
in heart
or
being overwhelmed with all sorts of harm¬
gifts from wellwishers.
It is probably idle in any event to wish for a
return of the simple rules of conduct governing
such things in 1825—but better standards than now
exist should 'somehow be formulated and givenare
less
effect.
26
The Commercial and Financial Chronicle
(426)
no
Continued from first page
behaved
have
experiencing not a mild con-
were
cession.
Only
settlements
in all 36
crease
cluding
June the hours worked by there
wage
and
salary employees cents
wage
no
gave
36
in¬
these
of
one
an
ately large reductions in outlays
The be-
havior of businessmen would have,
into
contraction
mild
the
it
had
recession
serious
a
not been for the stabilizing influ-
income.
of steady personal
ence
different
Quite
the
from
justified in concluding
^hat wage increases in a mild re-
in
recession
states consists of various instil u-
tions, policies, practices, and attitudes that play a part in making
June
rubber
the
1957
^
or about 3.1%. As pointed
out above, the proportion of large
increases (13 cents an hour or
more) js srnaller this year than
a
•
contraction
in the main be¬
were
IV
lated steps initiated by Congress,
not
The Reasons for the Rise in
by the executive. The Eisen¬
should
be
thankful that steady personal
in-
hower
Administration
Hourly Earnings
To
prevented the government's
come
of a minimum of
exposing
the country
policy
from
to
.
,
.
llt
s
t
of different kinds of workers
em-
it
It is true mat reductions
that
employment have been largely
pioyea.
ployed.
How Steady Has Personal Income
Been. During the Recession?
JTust how
CAtc""rwxcr
tast^uweral
of
concentrated in the durable goods
industries
where
earnings
hourlv
d^ades
fphnly^Vneratirm
found
have
nnt
Cer?
■
ago one would
the
American
wage system
pusitun^ up mopg}orl labor The characterine cnaiacter
change in the relative numbers
a
n
<
f he
in
rise
the
mand for labor,
1957,
high
the
of
quarter
1958, the
low
quarter
recession, the annual rate
duction dropped by $19.8
or
4.4%, but
personal
(February,
the
1958),'
personal income
was
j
the
of
of pro-
billion,
income
in
drop
$5.7 billion
a
average hourly
there have been
trate "layoffs" among
the
less
skilled and, therefore, lower paid
There has been some
year, or 1.6%. Ever since February
workers.
personal income has been rising,
was $5.4 billion a year
above February, and just a shade
increase
In June, it
ui
The Reasons for the Steadiness of
iLom^
^
Why_ has personal income
mamed
re*
steady? Various influ*
so
have
ences
contributed
to
the
result. Personal interest and divi-
dend
payments
have
*
unchanged and
among
construction,
Potation, where, three-fourths to
me
xaci,
inat
uie
season-
.remained
as
high
there have
been many thousands of acrossthe-board increases either nego-
in
February, 1958 (the low month for
personal income) as in August,
responsible)
prices
247
raised
received
the
index
of
hv farmprc frnm
by farmers from
in August to
(1910*14=100)
264 in
May and raised agricultural
from
income
$15.5 billion
last
August to $16.3
February and $17.4
June.
Transfer
sions,
payments
tion, veterans benefits)
from
$21.5
billion
a
August to
ary
109,
or
—,
-
5.2%
the
of
—
of
13
cents
in
(pen¬
cases
in the first half of
year
in
bv
y
to
far
r
thp
the
.
in
cases
24.2% of the
of per?01??1
1958; in
in the first half
Of
considerable
interest
or
is
the
covering 152
in
wid
in a lu^ffc mid-western
large
1 luu-wesiem
These comp;
These companies are small
q
mediuin sized
concerns
have
escaped
see
d
employees
outside
dropDed bv nearlv
and
onlv
aerienitnre
huf
waae
ich there was no increase) was
an increase of 7.03 cents per hour.
Llarv Dementiadddl0n' 21 of the settlements
a
little
dicating
of
nf
fi 1 <7
about
a
than
included escalator clauses^adjusthm.ri-ir iJ-L',~ in^ wa^es.
changes m the conTtvUxraln August sumerout of the
a,,J ? cases pric„e,,md^- fn °aly 10
ween
mru-e
ri«e
%.
q i w
in
152,
or
6.6%,
j
anri^there-
little, net
effect
of
spending
be
no
on
the
in
doubt that in
individual cases the necessity of making larger :payroll out4
lays has forced fairly prompt cuts
in other forms of spending. But
*>uj,
ui «
that
in
waeo
that wage in-
the
iu'T'VC
on me low
™ume
the
nn
was
has
to
seem
only a negligible; in*
since last August in hourly
earnings. On the other hand, in
been
ate serious financial
$2.14
to
in¬
outlays
investment
4%
^
expected j
than in 1957- -the
^
the present, one, wage increases
August
lagt
$2 (J6
April,
in
iaDoi qosis m ine iu.m
■
result
in 1958 are estimated at
4% below 1957, but hourly
earnings increased from $1.90 last
August !o $2.01 in April.
J
'
grams
only
rc The drastic cuts in inventories
problems for have been largely concentrated
index
the
,^'1
the
of
prices of finished goods
Fmninvprs
nn
in
.
,
heloed
are
mS! L in^reases
labor
Vpr
°f hgh
The encouiage- the fac
ment which the government gives quite e:xtc s
Vm°n members.
in
nrioes
hv
P
that
^
to
costs
^
a
larae
e s
.
|
sensitivity
to
to
(12)
union
mo
fivxAn/Hrirt
orid
be*
inventories
tween August and May,-$2.7 bilr
lion, or more than five-sixths, was
in the inventories of durabie goods
jnanufactoers. manufacturing nonr
But wages in rosq
durable goods
the same
as in durable
goods manufacturing — in each
case by 6 cents an hour (exclusive
of overtime) between August and
April.-*
When wage advances pro-
UioVion
of
value
book
the
in;
billion
manufacturers'
to collective bargaining increases part oi the labor force receives ,/w^
the sensitivity of non-union wages an inciease about once a year.
ing
•
^
w
Convinc*
evidence that wage increases
•
during the recession have been a
AT+CAT—
_
;
•
•
el
union duce higher spending and offset- major influence in forcing curtail*illustrated ting prjce increases, wage in- ;ment of investment programs,
recession by the wage .rrpasps do not. limit themselves linniriotinn
mvDntAricc
.->ntc
creases do not limit themselves liquidation of inventories, or cuts
given
by
non-union
„
increases
by producing unemployment and
thTl^Hnt
that
not
crease
-from
n
Pl^rs . in passing on me i
of non-union employees are sen- pass on
sitive to changes in wages among m the
innl.flnooc
do
good (railroads and'atitomobiles). In pulp and paper, whe^e
investment £ outlays in 1958 aire
the electrical machinery industry
where hourly earnings increased
"V*
«
wholeTate
during me
prospects
profit
be
;
,,
union
Hence' the Process by which ns-
Loc
waaes
f +ni
the
in
n^1 rvwLW to?n
were going
d
dustiy
up
steel
on
^
m-
T
1v
July 1.
(4) The unions expect a wage
increase for their members about
every year.
In order to achieve
[n
forms
other
of
non-payrotl
serious cost-price squeeze, spending. The conclusion is that
a
most
wage
increases. tended
to
ing wages generate larger 111- nmit the drop in total volume of
comes' larger" expenditures, higher spending in the economy,
i—,—
..
.
.
iab0r costs, and higher prices can
go
on
indefinitely..,
vh
.
The Need for More Study
,10>.
the A
^ ^ Although
American Wage
,
„s„yste,?i,,°S ;® a
this result unions either negoti-
„
.
The
American
of the
System
wage
system
is
ate one-year agreements or nego- ^ the wage increases are not obviously one of the most importhat and under such c
----- ^.,.age?ments Wlth self -limiting no individual em- tant features of the economy—-but
'
■
a?.
^.-d1 over
em-
the^Hentton n'f PloyinS a
33,683 employeconomic commentators
at ipasf
ces, or an average of about 220
I have failed to
it mentinnpi'
??P aee8,
settlements were
It is the iSe in the IS pI
%
* la th,e.first Jalf Pf ^58.
ings of wage and ^1^ workers"
°f fnnge ?ea?flts' the
Between August and F^irnarv the Pifa
(av?ra?e °f the wage
hou^^o^ bv wag^ anH^alarv fS l (mcludmg the cases in
to
.
or
om
of 1957.
important
•m0St imP°rtant city.
il
an
—oa
made
30.8% of the
Companies
mnef
most
v.
trans-
—
hour
were
tiTAi'.,
In-
cases.
-
creases
more
increased
Thppp;a
There can
outlays) in the
p
in
fnwase xoiai spcnai g
f
fu~T4. ?hp
nienibership increases the free
}°„ union wages. The
of non-union wages
01 non-union wages
increase wage cnanges has been
eranted.
granted. In the rase of 2.112 setIn the case of 2,112 set
tlements made in the first half of
1957 no increase was granted in
$23^.8 billion ininFebru- report of settlements
$26.0 billion
June,
June. rnmnnnipa
and
But
stances, or 6.7%, was no
in
compensa-
.....
.
year
billion
unemployment
_
a
billion
'
and
addition,
tiated by unions or unilaterally
granted by employers. A survey
(by the Bureau of National Af1957 (the high month).
Shortages fairs) of 1,457 negotiated settleof crops and animals (for which ments made in the first half of
the
weather
has
hp*»n
lnru<aiv
weather
has
been
largely 1958 showed that in nnlv 97 in1958 showed that in only 97 inwere
x
mining,
•
In
in¬
thd
many
to
Jn
7-2% in Ma^»
their^^i^er^to dangerous which most completely reflect lis2nd 6'8%+. m
wage rates ^mDeUtiSn frmn^^0^-union'«^ labor costs. 4 This index-in?ave contlnued to rise- There competition from non union preaged frQm n8 6 lagt August to
have been millions of individual
^gjunioii membership is suffi 121.0-in May. ;
increases based on merit or senlority.
t
.s
economy9
also great concentration of union compensate for the tendency of
membership
in
manufacturing, p1011^
es
0d.trpn increases
where about two-thirds of the in physical productivity. Even in
workers are organized, and , in periods of mild recession, sucn as
men.
ally adjusted unemployment rate
increased from 4.3% last August
in
Pemmil
employment
P
^
of
in
that
recession wage increases'
volume^
the
res^of ^mployerAend^o
Membership in unions is concen- >«nce.
maln> however, the rise
In the
apiic
£^
of
technical
^
liquidation
cre«ses which do not toice sub- being cut 35% below 1957, there
scribed m the following way:
But
trated among craftsmen, operaoffsetting influences of unknown tives, service workers, and nonmagnitude.
In
general,
enter- agricultural workers,
of; whom
prises have attempted to avoid about half are union members,
earnings.
"I
-
evidence
having
fore,
thn
i»
^
.
are
of to bring down
.
of.,vage increases is to raise the and paper, iron and steel) or
total amount of spending (payroll where the short-term market and
istics o£ the American wage sys- P}us..„nol]:.Payro11
~TIZ
0
community
today and the way. m which
^
ll ?PeVatesJ31f conveniently de- . (10) The_ fact
t
income been during the recession?
Between
the
third
quarter
of
boom, and the first quarter
i
_
employers (in the latter event cuts in investment .spending, havf
to produce substantial drops in been in Industries Where, outlays
the non-payroll expenditures of in recent years were particularly
the immediate effect large, (non-ferrous metals, pulp
well above the average for
(1) About 34% of the non-pronon-agricultural employment as fessional
and.
non - supervisory
a whole.
The lay-offs in the du- employees in American industry
the rable goods industries would tend are members of trade r unions,
steady has personal
total
the
wage increases as a .whole d<
wage increases as a .whole do not
seem to have been the principal
n^nev^vae^s'oSe -to force immediate increases in determinant of decisions eithe*
Sln^te rf^heTnericfrwage the employer's selling prices or with respect to investment prosvsfSm hnve chanced ereatlv in to cause financial troubles for grams or inventories. The largest
hoprl7 earnings between August
and June undoubtedly represents
hardships.
grave
extent
some
^«1
..
payroll expenditures,
if the
serious
as
U
present
country were wage and salary payments at* money wages what they are. Jast 'r
recession, the tributable to higher hourly earn- These institutions, practices, and
^
(9) The short-run demand for
Federal Government went to the ings was more than twice the in- attitudes are not a "system'' in
labor is determined largely by
other extreme—it took the posi- crease attributable to the rise in the sense that they are all part
on
the volume of orders on hand
tion that there was no need for transfer payments and nearly 58% of some general plan: they are
rather than by changes in: the
vigorous anti-recession measures, larger than the combined increase a system in the sense that they ™"er ™an Dy cnanges jn me
in interact nnon each other and that level
of wages. Hence, unless
Hence, unless
lite steps eventually taken by* the in
transfer
payments
and
in
unrm
nthAi-nnH that level of wages.
thevall nlav I role in determin- wa^ increases are large enough
Federal
Government
to
retard agricultural incomes.
acting
facing
J?
«
ord-breaking
ventories
The wage system of the United b0ur,
adding
was
raise
to
omy?
If enterprises have'larger
payrolls
because Ihey
do
not;
promptly cut their labor forces in
proportion. to the rise in wage
rates, must they not spend so
much less on other things?
Are
not the fairly large cuts in
investment programs and the rec-',.
o
be- hourly earnings
tend
volume of spending in the econ-
face of unemployment rates of 6
workers negotiated the largest in¬
hourly earnings of wage or 7% is a challenging fact that crease since 1946 in the tire in¬
an£| salary workers remained un- demands
explanation. The ex- dustry—an increase of nearly 6%.
changed between August, 1957, planation is to be found in the In 1958, with about 25,000 of the
1 Qfl AfiA
1
-5
an<j June, 1958, wage and salary American wage system,
union's 180,000 members laid off
payments would have dropped by
v
and with many others working
billion a year instead of by
v
only part time, the union got an
$5 5
billion.
Thus
the
rise
in
The American Wage System
increase of only eight cents an
been and
one
cession
(8) Wage increases conceded by
employers reflect business conditions.
For example,
before the
jjad
between^ August
by June
has
businessmen
Programs
Is
business.
climng
hour.
;
and the Cutback of Investment
keeping good relations
men.
Hence, employ¬
willing to concede wage
increases even in periods of de-
no
the behavior of tiie Federal Gov- about $10.1 billion a year to wage
ernment. While businessmen were and salary income. The addition to
haviorof
strikes
moder* earnings of about 4.5%.
rates and there have been
converted
avoiding
are
ers
The tendency for wages to contra9tion, but a serious recession, dropped by 6.5%, but wage and
a
result,
inventories have salary income decreased by only tinue to rise in the face of a fallbeen cut
at record - breaking 2.3%, indicating a rise in hourly ing demand for labor and in the
plant and equipment.
of
their
with
Ab
on
During the Recession Upon
the Liquidation of Inventories
of
and
settlement in which
increase) was 6.54
the
was
both
sirous
(in¬
settlements
The Effect of Wage Increases
(7) Employers are strongly de¬
The weighted average in¬
crease.
country and
the
if
as
bottom of the re¬
1958—at the
of
VI
36 were negoti-
settlements,
ated
American Wage System:
Its Effect Upon Economy
Of these under the American wage system
during recent years has been exduring the first four months ceedingly low.
Thursday. July 31, 1958
.
increase given.
wage
152
.
.
can
be
confident
Ta^sesannual wage reopening,promptly
of
his
End completely
*
.
to pass on increases in labor costs
fact that the demands jn the form of higher prices,
for labor may be contracting and - Hence, each employer has an in^at unemployment may be grow- centive to offer considerable remg is not legalded^by unions as-sistance to wage increases, and
a good reason for foregoing the, employers do resist union deannual wage increase.
mands. The greater the proposed
(6) Unions have been guided increase, the greater the resistin seeking increases in money" ance he can afford to offer. At
wages mainly by the desire to the same time, most employers,
get as much as they can without even in slack times, are willing
involving their members in to offer some concessions in order
strikes.
Time
lost
from
strikes
to
keep
peace.
one
that
has
been
little
studied
and that is not yet well understood. In particular, the limits and
the conditions under which the
wage system produces its present
results are not known. One suspects that the operation of the
wage system is much affected by
the balance of power between employers and employees. If this
balance and if the .wage changes
by the wage system
substantially different, the
produced
were
effect of these wage changes up *n
the economy would be markedly
Volume 188
Number 5764
.
The Commercial and Financial Chronicle
.
.
(427)
different.
be
true
of
Certainly
it
appears
to
27
Continued from page 13
the
that the stabilizing effect
wage system in periods of
mild recession stems from the fact
that
the
increases
enough
to
standing
In
of
periods
of
's
large
the
credit
business con¬ of supply abroad. And above and
;.- ;% beyond these direct connections,
many
•V
cerns.
not
are
jeopardize
severe
there
recession
„
to
is
the urgent political need
bind
together the nations of
increases
(if
unions
the free world with the
strong ties
strong enough to get them)
of trade.
Less trade means more
would probably be disastrous. At
trouble, the President has said.
any rate, the wage system under
This is time domestically.
It is
present conditions appears to be
the
same
were
'
important influence for
bility 5in ' periods
of
mild
moderate contraction
true also
sta¬
im¬
an
portant
tion
of
cause
in
and
trade.
In
creeping, inflaJust
our
own
company
sought to build
our
Division
idea
the
on
have
we
International
that
we
are
.
as
not
American
an
much
so
as
an
the American wage system must1 international concern, giving pro¬
bear
considerable ' responsibility motion from country to country
for; the inflationary; problems of according to talent; and ability.
the
country- in 1956' and most of
so it is entitled to credit for!
1957,
its contribution to the
incomes, * spending,
in
ment
half
late
of
1957
1958
stability of
and
employ¬
the
and
when
first
business
was
rapidly reducing investment ex¬
penditures and when the Federal
Government
willing
unable
was
to * make
or
can :
needs
omy
making
powerful
a
for
slow
a
wages in' times
of
Detroit,
of
econ¬
influence
increase,
recession.
in
The
tendency of the American w;rge
system to produce creeping infla¬
tion in good times is more than
will
one
accents
hear
from
the
plants
Michigan,
that
in
continent
that
the f
Whether
in-
are
we
operations
integration
specialties
the
on
equally
including the
domestic
of
the
to
export
States.
speaking
and
and
countries,
many
to
also have plants in
we
Scotland,
as
Plymouth,
export
England,
United
na¬
employment in periods of mild
or
tions
of 1
home
comprehensive
a
to
At $22.50
:
|The
first
Share
a
public
offering
;
of
securities of Witco Chemical
Co.,
Inc. was made
yesterday (July, 30)
by-an underwriting group man¬
aged jointly by Smith, Barney &
Co., and Goldman,- Sachs
Co.
The offering- consists
of 200,000
shares of
150,000
common
shares
nancing
by
50,p00 shares
stock, of which
represent'
the
fi¬
new
and
company
a sale by a number
shareholdersof part of their
Witco
holdings. The stock
was
from
both
at
concepts. In
-se¬
issuance
of
The company is engaged in
$4,000,000 construction and
pansion program, of which
a
ex¬
the
major project is the construction
in Chicago of a phthalic
anhydride
plant with an annual production
capacity of
some 20,000,000 pounds
costing approximately $3,500,-
and
000. The remainder of the
program
involves
expansion
of
Witco's
plant at V Lawrenceville,
asphalt
111,., and
miscellaneous
mehts
other
at
plants.
improveThe
com¬
currently' operates eight
plants in the United States and
one
in Canada.- and an .uncon¬
pany
solidated
subsidiary
operates
plant in England.
a
...
a
1920, Witco pro¬
diversified line of chemi¬
cals,
including synthetic deter¬
gents, metallic stearate and other
metallic
salts,
em
ulsifiers,
business
world
in
of the
general, in
relation to the rest of society
the world.
From
all
I
said
have
its,
and
the
task
of
will
you
in
management
period ahead will be
even
the
greater
than in the past. But what of the
recession?
current
back
destroy
Will
this
hopes?
our
day goes by
a
when
set¬
Hardly
are
we
not
the future?
asked, how do.
you see
prediction for 1958
is
your
1959?
and
First, let
to
me
rapidly, and
grow
table
study
mism.
with
say
rate
has
opti¬
that the
product grows at
annually, which
the
rate
of
postwar
of
been
growth,
4%
then
we
to
economy
expect the
the fantastic
can
reach
level of $642 billion
those
this
national
gross
the
every repu¬
confirms
Indeed, supposing
in 1967—and
1957 dollars. That means
are
increase of 32%
in 10 years.
important point.
To, produce at this level in 1967
we
will
can
only increase 13%. No crystal
ball
have
labor
a
that
force
required to arrive at this
particular figure for the simple
reason
that
everyone
who
is
working or could be working in
was
1967. is
presently alive. More spe¬
cifically, the increase in 1959 of
the labor pool over that of 1957
will be 2.9%;; in 1960, 4.3%. Not
the
get
increase
of
more
21.8 /o
1957, The problem in fact is
over
not
will .we
1970
going
in
to
the
be
a
shorter work
foreseeable
amounted to
$11,761,000.-
Now Is
should
do
the Time
(Special to Ths Fin ancial Chronicle)
BEACH,
Maclndoe
staff
of
has
added
Dempsey-Tegeler
Farmers
and
Building.
He
to
&
Merchants
was
the
formerly
Co.,
Bank
with
Walston & Co., Inc.
anti-recession
look
,
;
55? 1S s° mufh common will he bow out. Of course, he"
otrv thaf
g°0<i
I psycho1- wiu state that this looks like a "
you wonder why certain good prospective client but the "
en
™
completely
°wn
disregard
what
other
salesman
who
there
was
,innatf
intelligence first should use different tactics--'
J; Jiave
them, or the certainly (he infers) he could do a
It fkLv y
e learned better job if he had the opporoL!?, walk of
mothers knee.
As in tunity but "magnanimously he
every
secret
weapon.
for
a
need
no
to
As
a
of
growth will
be
no
their
do
can
than
more
other, group to create jobs by
introducing new products, by sell¬
ing aggressively, and by offering
any
better values. The
the
of
old
new remedy is
dynamic power
selling.
one—the
creative
We have in recent years heard
lot about sales training. What
a
training is needed, where it is to
be done, what means should be
used, and so on. But one crucial
of
aspect
sales
be
fortunate
able to
give
that
we
not
were
this
total sales force
cur
experience.
war,
total production has been fol¬
lowing
a
4% annual growth trend.
But this is
only
two years now
sagging
been
and
trend. For over
the pace has been
a
we
out-distanced
growth
by
But
be less
sales
our
competent be¬
this aspect of sales training? It
is the experience of selling in a
period
of
declining demand. The
of
our
people
have
only increasing sales, ris¬
ing revenue, developing demand.
known
Their records
have
been
made
have actually
in
Western
in
times of sales acceptance; they are
being tested in times of sales
now
resistance.
I
and
sales
that
you
that
confidence
I
have
salesmen
management will
through
this
greater
confidence
period
with experience
of hard
sales.
tivated
by
product
or
—
with
that
are
mo¬
that
our
we
belief
service
our
the
comes
the experience
Unless
the
come
is
neces¬
well get out
of the marketing field. Success in
selling is ^success in persuading
then
sary,
we may as
the customer
a
service.
that
In
we
times
can
of
do
him
boom
we
perhaps can take advantage of the
pleasure that the customer takes
in spending. In times like these
must convince him of his need
When the
buy.
look
back
on
the
time
comes
present
to
reces¬
sion, it will, I believe, be seen as
a
healthy influence in that it
promoted efficiency and stimu¬
lated renewed efforts.
We are, as
has
rate
of
Europe.
customers
who
are
in
by their bragging, and
verbosity. I am going to tell
about some of these unfortunate fellows I have
met, and a
few
of
them
composites
have
of
actually
several
been
of
these
characters. They would have acted
the same
fice
on
Broadway, in
of-
an
shop, as they do in Wall
Street—-just empty barrels who
or
make
a
lot of noise.
a
Don't
Our
the
Ask
Me—Ell
first
operator
lines
sounder
for
the
we
can
now
build
times
give
strength to busi¬
new
and also to the nation.
ness,
(Special to The Financial Chronicle)
SANTA ANA,
H.
has
.Piper
K.
L.
Calif.
become
Provost
&
Marvin
affiliated
Company,
Broadway. He was for¬
merly with McCormick & Com¬
With Graham & King
(Special to The Financial Chronicle)
BOSTON,
Thibault
Graham
Street.
you
should
you
»
had only lis-
tened to him and bought "Sawed
off Pipe Common" at
20, after he
had obtained information direct
from his pal who was,a Salesman
for the company, who was out
with one of the Second Vice-Pres-
idents
and
"Sawed-Off"
who
learned
'
-
that
going to merge
Pete," Instead of
.going into that slow moving dog
with
was
"Pop-Up
years—"how
can
make
you
bhy
there
are
boys
still
taking
tomers.
of his
care
He
own
cus-
has
suggestions for
criticizes the firm's
he
advertising, stationery,
everyone;
and the
arrangement of the office. Before
anyone can say a
word in
meeting he takes
the
floor.
knows all the
answers.
he
one
has
made
another
in
he
count
others
dling
the
in
mistake
first
He
;
fortunately
—
not too many like "these-
around
the
in
invest¬
/;
v-
•
,
V
•_
„
'
(
,
bless¬
a
-
-
,
J"
„
'.i
With Dempsey-Tegeler
>
(Special 16 The Financial Chronicle)
ac¬
criticize
the
way they are han¬
customers, and also
accounts if they have
own
He parades
the
(and
.LOS
ANGELES, Calif.—Erwin
joined the Staff
Dempsey-Tegeler & Co., 210
E. Schoellhorn hhs
of
West Seventh Street.
of
but
himself.
not want this
it
well)
as
fellow to talk with
If he had the
op-
portunity to do so he would be
busily engaged in tooting his own
horn by undermining the sugges¬
S.
Richards & Co., 621 South Spring
Street, members of the Pacific
.
Coast Stock Exchange. He was
previously with Rogers & Co.
L—
that, and the other.
He wouldn't
simple ques¬
tions, furnish quotes, and leave
policy to me when I came back
to my desk.
No, Mr. "Know-Itbe content to answer
would
done
me a
that
and
away
tell
that
me
the
and
to
not
I
can
fire
him
was
was wrong.
exaggerated case,
it never happened
quote such extreme
the spot.
on
The
In
days,
firms there
are
may
from
there
are
Many
eancera can
victories today.
ha cured
whan detected early
and
treated promptly. 1fyflafteO
to the
key to tills victor*
Thar# arc seven
ettnale
Vigilance in heeding them
floor
day to take care of inquiries from
who
tome
the research laboratory. But
could mean
telephone
or
victory over
earn
for you.
when salesmen and cus¬
representatives are given a
tomer
will
which might mean canoe*
Customer Grabber
many
Final victory
•fair cancer
was
an
although
me,
had
I
way
handling the account
is
he
great favor while I
f.Vmieiial bleeding erdiiChais*
t. A lump or
thickening 1ft II*
a
tocest or elsewhere. 3. A eofC
day Mr. "Customer Grabber" will
Ihot daoa not heal. 4. Change IB
ho we I or bladder habit*
into
walk
the
office.
On
such
be at his desk early and if he sees
someone
that he might engage in
he
will
be
right
conversation
there.
tive
Even though this prospec¬
client may have met one of
other
salesmen
the
be¬
fore (when he had a floor day)
our
boy will be right in there
pitching. Only after he has tried
his best
to
overwhelm
day
Mr.
Pros¬
Mass.—Constance L. pect with his market savvy, his
joined the staff of pleasant personality, and his vast
King, Inc., 16 Court fund of investment wisdom will
he then
inquire if there
was
any
*
ANGELES, Calif.—George
Roderick is now -with Hill
tions I have made and telling my
customer that they should do this,
All"
,<
LOS
would
I
of my customers while I was
away from my desk for a day or
vacation.
(Special to The Financial ChroiJIcle)
to
any
a
Now With Hill Richards
his knowledge
lack
everyone
This
,
•
their
them.
on
goes
ing.
after
own
to
it
so
ment business and that is
Although
handling his
is
And
sales
a
has
&
done.. If
what
to do
the
pany.
have
you
money that Way, now I ask you?"
people
Joins K. L. Provost
,
always tell
representative or
salesman who doesn't have
enough
upturn. By the power of
creative
selling, backed up by
integrated
marketing
planning,
we
can
and will in these urgent
that the second guessers are
only
confined to the customers.
You *
should meet the fellow who will
/
been
is
said, dieting.
We instances of egomania from the
have gone into training and noth¬
experiences of others. If such a
ing but good can come of it. On fellow were in
my employ,
I'd
someone
<
*bat you -bo,ug" ",at„ h*| °'n£>
paying
dividends
tot
50
Tell Ton
big time
customer's
their
assure
can
evdry
their
you
training
has un¬
fortunately been omitted. We may
with
means
of
taken
.
high rate
a
few
gested, business
325 North
by
stay on the job.
Eventually
they burn themselves out, but unioi
tunately they also hurt quite a
recent report on the economy sug¬
the
automatic. It is true that since the
Calif —Walter
been
with
to Improve
The continuation of
LONG
important
is
4
and
do
.
Dempsey-Tegeler Adds
the Most Noise
...
There
question rather is, are we
going to be able to do what we
can
1958
American
measurers.
The
labor force that will be available;
30,
of
future.
totaled $39,944,488 and in the four
April
t
o s
to
Now this is the
months
ended
capacities
management,
we
an
week
1957
ergy, and
be
Empty Barrel Makes
whpTtn1^^ t* befstuway t0 learn other salesman who might have
ne^tfn dn\i?iJlWJLtch sre,fe! met the prospective customer beHn
thaIL ^
y 1fhould not fore he did- Then, and only then,
en¬
majority
have concluded that I believe that
sive domestic distributor of carbon
black produced by an associated
in
omy is not built in. It must
continually generated by the
is
management and
considerable
sales
selling impact. The
dynamism of the American econ¬
business
specialized rubber chemicals, and
a
broad
line
of
asphalts
and
asphalti'c compounds. It is exclu¬
net
to
of the lack of it. What then
until
Its
time
our
cause
plasiicizers, stabilizers, polyesters,
company.
develop
going to
are
is the
may
•
P'ounded. in
duces
and
we
Now
force
the 150,000 shares will be used
by all emphasis that I believe the
Witco for general corporate pur-, American
economy will continue
poses.
research
1965.
the
lecting and promoting men, therelore, we find we must look for
those who have a comprehensive
understanding of the problems of
What
priced at $22.50 per share.
proceeds
broader
ever
of
Net
corporation
a
abroad, our problems re¬
that we stretch our minds
or
quire
Witco Chemical Slock
products
various"
of
compensated, by its tendency ; to marketing plan, or whether wc
limit the drop in spending and in* are speaking of the total opera¬
moderate contraction.
to
those
variety ' m
a
various
by : which" it is staffed..
have
take- world. But
system
should
of the fact that the
time
An
for
is
■
We
wage
account
organization
or
productivity. Now
Cornerl
By JOHN BUTTON
operations, to install
equipment, and to
streamline
need in
to
,
%
Attempts to improve the Ameri¬
our
cutting
greater
is the time
now
and
particularly
,
marketing management.
;;To my own industry this situa¬
human endeavor would
follow office procedure and
Thus, our general manager itj tion is a special challenge. We are
you will occasionally come across
turn
the prospect
Sweden is a Dutchman; our man-. ; preparing to
back to the
respond to it. We are men m the
investment business
salesman who had filed
aging director in the United King* developing products that will most who so
originally
completely disregard the on him
'
dom is a Canadian; in
Belgium, a certainly contribute to the pro¬ every-day rules of
human
beFrenchman, and so on; And on a! duction of more goods at less cost. havior that
you wonder how their
The Second Guesser
walk through the executive offices ' And we
propose to sell them hard. employer
allows them to continue
Don't imagine for one instant
of our International Division in For there is ho
question what the to
in¬ tionalities
significant
in its spending. -
creases
un¬
review
cost
increase
*
or
an
periods of "boom.
of world
Surely then,
f. Hoaracness or cough.
I. Indh
geetion of difficulty In twalloto
In*
Change in
If your
a warter moln
elgnat fasts longer than
two weeks, go to your doctor to
toefft If It
means cancer.
AMEftlOff
CAMCKh
si o
oiaimwr
•OCTITv
|
I
Ja
The Commercial and Financial Chronicle
(428)
28
Continued
Opens
Fund Sales Office
jrorn
W. E. Hutton
Co., members
York Stock Exchange,
©n
Monday, Aug. 4, will open a
branch office whose activities will
be devoted to the sale of mutual
of the New
sales attaineu a
office, situated in mid-
Manhattan at 10 East 44th
Street, will offer investors finan¬
planning services which the
believes are unique in the
securities business.
The aim of
firm
Car
phases of personal money man¬
agement,
including
budgeting,
savings and investments, and the
use of mutual funds as an invest¬
ment will be stressed.
Four trucks were idle the
department and headed its na¬
tional mutual funds sales organi¬
sation.
Mr.
Launer,
who
has
assisted many people in the for¬
mation of investment programs
will direct a staff of registered
representatives specializing in this
type of service.
W. E. Hutton &
the
figure
11-20, 1957.
The
valuation
-
Raymond Colvin Joins
Calif.—Ray¬
Pacific Coast Secu¬
rities Company, 240 Montgomery
Street. Mr. Colvin was formerly
with
ciated
with Frank
Knowlton & Co. and
past conducted his own
Investment business in San Fran¬
in
the
cisco.
■
Two With Merrill
Lynch
(Special to The Financial Chronicle)
Oreg.—Laurie R.
Miller and Betty H. Tirre have
Joined the staff of Merrill Lynch,
Pierce, Fenner & Smith, Executive
PORTLAND,
non
Street.
on American homes reached a record
April 1st. The mortgage debt increased
in the first 1953 quarter.
.
ST.
PAUL, Minn.
Joins William Milius
Last week's
21,798 trucks were assembled.
1 :
e ;
1
■'VVl'
Last week the agency reported there were 16,385 trucks made
in the United States. This compared with 16,187 in the previous
week and 21,798 a year ago.
<
% •
,
William
B.
Milius
South Meramec.
Martin
was
with
In
and
Co.,
the past
101
Mr.
GREENSBORO, N. C.—G. Locke
Whisnant has become connected
with Smith, Clanton &
Company,
Southeastern
Building.
With Eastman Dillon
(Special to The Financial Chronicle)
CLEVELAND, Ohio—Murray C.
Kephart is now with Eastman Dil¬
lon, Union Securities & Co., Na¬
tional City East Sixth
Building.
Mr. Kephart was previously with
Cunningham, Gunn & Carey, Inc.
39%
Production
of stocks.
above
and
new
orders
was
were
23.3%
5.3%
above; shipments 12.9%
the previous week and
above
above the like week in 1957.
2.8%
Business
Failures in June
Low
Following
a
normal seasonal
tinued down 6% in June to
$61,000,000, boosted entirely by
excess of $100,000.
at
an
a
Five-Month
V
failures
decline, business
con¬
1,260, the lowest level in five months.
rebounded from the May decline to
However, dollar liabilities
Concerns failed
Touched
Level
a
rising number of casualties in
apparent annual rate of 57 per 10,000
100 per
buying. They were influenced solely by conditions
industry, low steel stocks and a desire to get started
a
world
turer who had been
a
few carloads
war.
it is unlikely that steel will be hard to
But fear of
a
a
restricting his sheet supplier to shipments of
month announced that he wanted all his orders
once.
He guessed that more drums would be needed
beleaguered allies.
our
in
two
may
for recovery
factors: (1) Arabs
oil
country goods are enhanced
cut oil pipelines, necessitating
increases in American, Canadian and Venezuelan
production to
supply Europe, and (2) The Texas Railroad Commission raised
the limit on producing days from 9 to 11 a
month, starting in
August.
Texas bankers are revising policies.
They will lend
money
to drilling contractors.
they release their second quarter earnings, steelmakers
to stress the need for higher prices.
Most observers
think United States Steel
Corp. is waiting for a stronger market
before announcing increases. The
unexpected events in the Mideast
could speed the price decision.
Last week,
half
for
a
steelmaking continued its steady
point.
Furnaces
Production
were
was
recovery
from
operated at 566% of capacity,
about 1,512,000 net tons of steel
ingots and castings.
Scrap prices were up the fourth week in a row. "Steel's"
composite on the prime grade rose to $37.67, up another $1. Mill
buying is lagging, but a pickup in demand is expected net month
as Detroit enters the steel
market, concludes this trade weekly.
The
American
operating
rate
of
Iron
steel
and
Steel
Institute
companies will
announced
*98.7%
average
that
of
the
steel
5aK%CnAyA /or Uie. we*k beffimiin£ July 28, 1958, equivalent
to
1,586,900 tons of ingot and steel castings (based on
average weekly
production for 1947-49) as compared with an actual
rate of *96.2%
of capacity, and 1,546,000
tons a week ago.
o
10,000 in 1933.
wholesaling mortality held
While
shortage may cause some
consumers
to step up their ordering.
The possible result is a
widespread reversal of inventory policy, "Steel" pointed out.
In one case, at least, increased demand for steel could be
traced directly to the Mideast situation. An oil drum manufac¬
up
(Special to The Financial Chronicle)
19, 1958, were 3.5% above production, according to the
National Lumber Trade Barometer. In the same period new or¬
ders were 14.5% above production. Unfilled orders amounted to
July
1959 models.
the July 4 setback.
Smith, Clanton Adds
Shipments Were 3.5% Above Output in the
Weck Ended July 19, 1958
>
their
Fusz-Schmelzle
Co.
Lumber
Lumber shipments of 487 reporting mills in the week ended
continue
CLAYTON, Mo.—Glennon John
Martin has joined the staff of
car
weck by 470 units while truck output rose by 198 vehicles during
the week.
In the corresponding week last year 119,857 cars and
As
(Special to The Financial Chronicle)
in¬
previous week's output, states
.\V\ ,
v;
output increased above that of the previous
on
more
'
and trucks amounted to 102,388 units, or an
in
by
Roger K.
Winges is with Juran & Moody,
Inc., 93 East Sixth Street.
cars
of 668 units above that of the
carbuilders'
Prospects
—
output totaled 86,003 units and compared with
(revised) in the previous week.
The past week's produc¬
ear
listed businesses, edging up from May and from the previous June,
but remaining well below the rate of 69 in pre-war 1939 and the
to airlift oil to
(Special to The Financial Chronicle)
on, Friday
•
"Ward's."
industry this week steel demand is rebounding,
aided mostly by automotive orders and to a lesser degree by the
Mideast crisis, "Steel" magazine reported.
The metalworking weekly stated that initial orders from
Detroit have been no bigger than last year's, ranging from 4,000
to 5,000 tons, but they are more than welcome.
Chrysler Corp. and the Fisher Body, Buick, Oldsmobile and
Pontiac Divisions of General Motors Corp. are
buying.
Ford
Motor Co. will start ordering soon. About 20% of the tonnage is
for August delivery, the rest for September.
As they shake loose some substantial orders for cold-rolled
/ilieets, bars and stainless strip, automakers will also issue release
dates to their parts suppliers.
They will soon be ordering steel
for frames, springs and stampings, continues this trade magazine.
Although trouble in the Mideast flared up a few days before
automakers began ordering steel, it has nothing to do with the
delivered at
With Juran & Moody
.
tion total of
Operations Scheduled This Week to Rise to
58.8% of Ingot Capacity
Barring
(Special to The Financial Chronicle)
3,000,000th vehicle of the calendar year 1958
,
crease
mortgage debt
get in the near future.
SPRINGFIELD, Mass.—Richard
H. Liebman has joined the staff
of Jay C. Roberts & Co., 18 Ver¬
last.
85.533
In the steel
Building.
With Jay C. Roberts
cities, in¬
of $109,100,000,000
Steel
SAN FRANCISCO,
building permits issued in 217
duce its
Last week's
The Federal Home Loan Bank board is authority for the state¬
$1,700,000,000
mond W. Colvin has become asso¬
:
v
$55,200,493 of the similar month last year by 1.8%.
cinnati, and has 12 other offices
in various cities.
Above
revenue
.
ment that the
18.5%
Automotive production for the week ended July 25, 1958,
according to "Ward's Automotive Reports," saw the industry pro¬
autos sold July
cluding New York, set another record in June, Dun & Bradstreet,
reports. - The aggregate was $701,211,612, up 8.4% over the
previous all-time high of $647,007,924 in May. The level was
28.9% higher than the $543,893,626 of June 1957.
'New York City building permits for June fell 52.6% from
the
all-time high of $118,626,434 in May,
but exceeded the
total
(Special to The Financial Chronicle)
of
the'145,000
•
-
Street,
Pacific Coast Sees.
than
inc.
Co., founded in
1886, has main offices at 14 Wall
New York, and in Cin¬
lower
27.7%
was
Climbed
Automotive Industry Turned Out Its 3,000,000th Vehicle
Of Year 1958 Last Week
10-day period of July 11-20 totaled 104,800 units, a boost of 8.9%
over the initial
10 days of the month of 96,300 units. However,
managed
Week
Preceding Period Which Was Affected by the
responding week in 1956.
suburban Detroit, is down a week for inventory.
"Ward's" also said new car sales in the United States for the
who
Loadings in Latest
cars, a decrease of 161,542 cars, or 21.7% below the corresponding
1957 weck, and a decrease of 66,675 cars, or IC.3% below the cor¬
past week, according to this trade
They were White, Freightliner, Diamond T and Divco.
The first three are off because of annual vacations.
Divco, in
by Herbert Launer
joined the firm recently af¬
ter nine years with Bache & Co.
For the last three years he had
managed that firm's mutual funds
be
expected to conclude current model making this week,
are
weekly production
freight lor the week ended July 19, 1958,
90,675 cars or 18.5% above the preceding week, which was
affected by the second week of the coal miners' annual vaqatiqn.
Loadings for the week ended July 19, 1958, totaled 581,817
General Motors fac¬
journal.
Hutton's new office will
E.
W.
tories
average
were
added that several additional
"Ward's"
on
power
Loadings of
along with American Motors.
to
is based
Miners Annual Vacation
Chrysler-Imperial in Detroit and Studebaker-Packard in South
last. Buick and De Soto ended
production earlier this year.
available
weekly production
126.6%.
amount
The
Bend halted their lines on Friday
investors
at the new unit will include in¬
formation and advice on various
Services
the actual
ago,
or
of electric energy distributed by the electric
industry for the week ended Saturday, July 26,
1958, was estimated at 12,319,000.000 kwh., according to the Edi¬
son
Electric Institute.
Output last week recorded the fourth
straight week of gains.
For the week ended July 26, 1953, output increased by 62,000,000 kwh. above that of the previous week, and 76,000,000 kwh.
over that of the comparable 1957 week and an increase of
1,024,000.000 kwh. above that cf the week ended July 28, 1956.
The
!:(.mbly of 85,533 cars and 16,187 trucks, noted the statistical publication, despite model run closcouts by three manufacturers,
Dodge wound up 1958 model operations in Detroit Thursday, while
will
be to offer what the underwriting
and brokerage firm terms "financial programming in depth."
E. Hutton office
year
1947-1949.
light and
Through the same date a year ago the count was 4,454,200.
Production was expected to parallel the previous week's as-
cial
'
Thursday, July 31, 1958
Electric Output Climbed for the Fourth Straight Week
in 1957.
industry last week United States car and
truck manufacturers produced their 3,000,000th vehicle of calendar
year 1958 on Friday last, "Ward's Automotive Reports" disclosed.
This trade weekly noted that with the past week's estimated
output of 86,003 passenger cars and 16,385 trucks, the 1958 total
at the end of the latest work week will reach 3,012,937
units.
town
the new W.
for
automotive
In the
A
*Index of production
Industry
ing 121,000,000 insured Americans, life insurance
1,376,000 tons.
placed at 2,033,000 tons,
was
record 867,000,000,000 ne'w coverage
fund shares.
The new
duction
4
page
The Slate of Trade and
Hutton &
E.
W
..
.
/
°lltput for the weck beginning July 28, 1958
is equal to about
58.8% of the utilization of the Jan. 1, 1958 annual capacity of
140,742,570 net tons compared with actual production of 57.3% the
week before.
For the like week
in all other functions declined.
even
with May, casualties
Construction fell to
an
11-month
low and retailing continued down to the smallest total so
far this
In fact, eating and drinking places were the only retailers
to show a rise from May.
In manufacturing, month-to-month
trends varied; failures in the heavy industries declined from May
but increased in food, textiles, leather, paper and printing.
Although casualties generally ranged 16% above last year in
number and 19% in liability size, considerable improvement was
noted in construction and in the lumber and building materials
trades where noticeably fewer concerns failed than in June a
year.
year ago.
Nearly all geographic regions reported lower casualties in June
May, but six of nine showed increases from the compa¬
month of last year.
The business toll in the East North
than in
rable
Central States climbed 50%
Atlantic
States
39%.
sharp in the large cities
York,
Philadelphia,
suffered
cerns
above
Increases
as
a
from
and in the Middle
year ago
1957
levels
were
twice
in the non-metropolitan districts.
Detroit, Cleveland,
Milwaukee and Seattle
considerably heavier casualties. In contrast, fewer
succumbed in three regions:
Commercial
and
•
Moderately Lower Last Week
industrial
failures
declined
to
264
month
ago
the rate
was
85.7% and
pro¬
in
the
week ended July 24 from 279 in the
preceding week, Dun & BradWhile casualties remained above tho 228
year ago, they dipped below the 274 in 1956.
For the
first time in five weeks, fewer businesses failed than in the com¬
parable week of pre-war 1939, when 291 were recorded.
Failures involving liabilities of $5,000 or more decreased to
223 from 241 but exceeded the 195 of this size last year. In con¬
trast, small casualties under $5,000 edged to 41 from 38 in the
previous week and 33 in the similar week of 1957. Liabilities ran
above $100,000 for 18 of the failures as compared with 32 in the
previous week.
The manufacturing toll fell to 45 from 61 a week ago, while
milder dips brought wholesaling down to 17 from 23 and com¬
mercial service to 21 from 24. On the other hand, retail casualties
rose slightly to 139 from 131 and construction to 42 from 40. More
concerns succumbed than last year in all industry and trade groups
except manufacturing.
street, Inc.,
occurring a
reports.
major
casualties as
The week-to-week decline centered in four of the nine
a
con¬
the East South Central, West
South Central and Pacific States.
Business Failures Turned
as
New
geographic
regions.
The
Pacific
States,
with
62
Volume 188
Number 5764
.
The Commercial and Financial Chronicle
..
29
(429)
against 85 in the previous week, accounted for most of the down¬
turn, while Middle Atlantic failures dipped to 91 from 92 and
East
North
Central
to
41
from
47.
In
contrast, slight increases
from last week prevailed in five regions.
Mortality exceeded the
1957 level in all regions except the South Central
and Pacific
States.
The sharpest upswings from a
year ago occurred in the
Middle Atlantic and New England Regions.
Wholesale
Food
Price
Index
Turned
wholesale
Attendance at furniture
showings in Southern
better than expected and orders for
upholstered
Fractionally
case
LOS
year
a 1 i f.—Mark
Davids, general partner of Lester,
Ryons & Co., has been elected a
ago.
governer of the Investment Bank-
There
food
price index, compiled by Dun & Bradstreet, Inc., slipped fractionally last week. It declined 0.5% to
$6.62 on July 22 from $6.65 a week earlier, but it was 4.3%
higher
than the $6.35 of the corresponding date a
year ago.
.
Higher in wholesale price the past week were barley, bellies,
eggs, raisins and prunes.
Commodities showing declines were
flour, wheat, rye, oats, beef, hams, lard, sugar; tea; cocoa, steers
and hogs.
•
0
ANGELES, C
a
exceeded that of
a
week earlier.
tion of Amer¬
ica for
ited, while interest in dairy products and fresh
week earlier.
a
•
term,
cording to
year
'
■-
,
meat
■
.
.
index
represents the sum total of the price per pound
foodstuffs and meats in general use and its chief function
is to show the general trend of food prices at the wholesale
level.
Wholesale
Commodity Price Index Registered Moderate
Declines in the Latest Week
The
general commodity price level fell moderately the
week, reflecting lower prices
The Dun &
rayon.
inddx
and
declined
to
lard, steers, lambs, rubber and
daily wholesale commodity price
July 28 from 279.95 a week earlier
on
Bradstreet
277.87
on
a
;
Following
the
in
spurt
prices
during
the preceding week
grain prices declined
somewhat last week.
Although wheat prices held steady at the
beginning of the week, they declined at the end of the period as
trading dipped. The buying of corn, oats and rice slid down
when
the
slightly
Mid-East
and
Wholesalers
crisis
occurred,
most
prices were below those of the preceding week.
reported appreciable declines in soybeans futures
prices.
Reports of favorable conditions for winter wheat harvesting
discouraged the buying of flour the previous week and prices fell
moderately. There was a cancellation of the scheduled buying
of 30,000 tons by Ceylon during the week.
Tlrer«.'Was
in
ing
a
noticeable decline
in
sugar
transactions result¬
slight decline in prices. Coffee prices were steady as
.trading equaled that of the prior week. Although cocoa purchases
picked up at the end of the week, prices were down somewhat.
.
a
Offerings of steers in Chicago were noticeably below those of
prior week. Trading fell moderately and steer prices were
■
the
down somewhat.
price 'decline.
with
Interest in lambs slackened resulting in a slight
were close to those of a week earlier
Hog receipts
^trading steady.
week.
Volume
Hog prices
in lard decreased
fractionally during the
prices showed appreciable
rose
and
losses.
Cotton prices on the New York Cotton Exchange moved down
continuously during the week, reflecting reports of favorable
weather
tension
conditions
in
in
Middle
the
over-all
but
Federal
trading
most
growing
East.
fell
There
below
areas
were
that
of
a
and
some
Retail
week
promotions and
Franklin, Sec¬
retary-Treas¬
four weeks ended July 19,
1958, an
For the period Jan. 1, 1958 to
registered above that of
the
passenger cars,
earlier.
more
Wednesday of last week
1
mond H. Mcintosh has become
in demand
'
t
expanded
Housewives again stepped up their buying of cold cuts, baked
goods, soft drinks and ice cream the past week. There were sub¬
stantial gains in purchases of canned goods, frozen foods and fresh
produce, while interest in fresh meat, butter, eggs and cheese
was
week earlier.
rise
last
week
wholesale
buying of men's
and women's Fall apparel occurred. Buyers were primarily inter¬
ested in women's sweaters, skirts, dresses and coats.
Volume in
men's Fall suits and dress shirts mounted substantially. Interest
in children's back-to-school merchandise
expanded, with principal
in boys' sports jackets and slacks and girls' dresses and
sportswear. Some wholesalers reported appreciable gains in re¬
orders for summer apparel.
gains
A marked rise occurred
during the week in trading in indus¬
trial fabrics and man-made fibers.
rn
it*
„nnn
'
Lester, Ryons & Co.
of the
bers
New
formation
formation
are
mem-
York Stock
Mr- Davids is also
Ex¬
Vice-Presi-
a
dent of the Bond Club of Los An.
,
Sother
wh0
0£
California
are now
^he
IBA members
serving
National
as governors
Association
in-
Street, members of the New York
dent, Bingham, Walter & Hurry,
and Pacific Coast Stock
Inc->
>
Co.,
&
Two
With H. Hentz Co.
460
Montgomery elude Curtis H. Bingham, PresiExchanges.
BOSTON,
BEVERLY
HILLS, Calif.—EuSchulman is now with H.
gene
Hentz
&
Co.,
9680
Santa Monica
Boulevard.
..
T
.
Mass.
c,
—
Charles
Angeles;
B.
nis- H.
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
Los
Harkins, Vice-President, Blyth &
Co., Inc., San Francisco; and Den¬
Join Estabrook
McCarthy, Vice-President
Manager, The First Boston
and
Edward
P.
Corporation, San Francisco.
.
Almy a d Stedman Buttuck, Jr.,
Fahey Clark Branch
have joined the staff of Estabrook
&
Co., 15 State Street.
•
'
CINCINNATI,
Ohio—Fahey,
Clark & Co. has opened a branch
the
Union
Central
Building
in
the
under
Then and Now!
J.
Open New Branch
"President Eisenhower and other administration
leaders have been
trying America's patience with
a
dangerous wait-and-see philosophy. As the down¬
turn began last summer, cheerful statements about
a
'rolling readjustment' ema¬
nated from the
BEVERLY
HILLS, Cal.—Stern,
Frank, Meyer & Fox has opened
see
what
the
at
9675
Santa
man¬
agement of Aaron R. Eshman.
.
.
administration.
January, as unemployment
figures climbed higher, the pat
But
office
branch
a
Monica Boulevard under the
Walston Branch
In
reassurance
management of Carter
McCloy.
became 'Wait and
happens in March.'
rolling readjustment
PRESCOTT,
Co., Inc., has
office
at
under the
Ariz.—Walston &
opened a branch
Curley Street
East
119
direction of Charles R.
Baird, Jr.
shot up
ary.
700,000 in Febru¬
As March failed to produce
upturn, more patience was
requested, with the explanation
an
S. H.
that
Ruttenberg
only
show what
"We have waited. We have
S'fi
SPRINGFIELD, Mo.—The firm
name of Moody Investment Com¬
pany,
Woodruff
Building,
haa
been changed to Moody Securities
Company.
April figures could
happened in March.
Harold C. Richard
There
was a
noticeable gain in
-
Harold C. Richard passed away
seen.
"We have seen unemployment rise
50% since December.
i'fi
Now Moody Sees.
1.1 million in January
and another
more
than
*
July
28
the
at
Richard,
age
of
73.
Mr.
had been in the
banking businesasince 1907, was a special partner
who
investment
and
in C. B. Richard & Co.
an
Two With Wachob-Bender
(Special to The Financial Chronicle)
OMAHA, Neb.
Carlson
now
immediate effect.
"The
right kind of tax cuts can provide that rapid
stimulating effect on the economy."—Stanley H.
Ruttenberg, Director of Research, AFL-CIO.
more including insistence upon
help for the unemployed and enlarged pub¬
lic works—reveal the thinking of Mr. Ruttenberg
last spring when these views were presented to a
joint congressional subcommittee.
more
It is
that
now
Mr.
midsummer
—
and
we
should suppose
Ruttenberg would like the privilege of
editing his copy if that were possible after its
publication.
and
—
Frank
»
Lawrence A.
P. Marks
are
with Wachob-Bender Corpo¬
ration, 3624 Farnam Street.
Joins Sutro Staff
(Special to The Financial Chronicle)
SAN
This—and much
in
business
Executive Vice-
Co., and be¬
general partner of Lester,
a
?y?nli
in 1951.
Byrnes and Richard R. Jen-
stimulus with
a
banking
was
Inc., Russ Building. Mr. Mcintosh
was formerly a Vice-President of
King, Merritt & Co., Inc.
dresses, sports¬
year ago.
noticeable
came
mn&s have<become affiliated with
as-
of
A
He
1925.
President of Lester &
SAN FRANCISCO, Calif.—John
"Unemployment will remain very high—in rela¬
tion to any period in the last 15 years. Personal
incomes are falling and personal consumption ex¬
penditures are declining. These problems are here
right now. They call for immediate action, a quick
unchanged from
in
*
w
again the past
week with volume comfortably over a year ago.
Interest in
refrigerators, dishwashers and automatic laundry equipment re¬
mained at the level of the prior week. Furniture stores reported
appreciable gains in purchases of metal tables, chairs and bedding.
The call for linens, draperies and floor coverings equalled that
a
investment
the
lurched downward. Joblessness
beachwear and fashion accessories. Over-all volume notice¬
ably exceeded that of a year ago. There was a moderate rise from
a week earlier in sales of Fall
dresses, suits and coats. Extensive
reduced-price sales promotions encouraged the buying of men's
lightweight suits, summer sports shirts and walking shorts. Volume
in children's merchandise was sustained at a high level.
fans
Davids,
graduate of
University,
started
in
Sutro
hot weather
wear,
and
Mr.
sociated with H. L. Jamieson Co.,
trade in the period ended
1% to 5% higher than a year ago,
Best-sellers in women's apparel were summer
air conditioners
Dec.
1958.
a
Stanford
v
(Speoial to The Financial Chronicle)
,Q
FRANCISCO, Calif.—Ray-
United
Atlantic -f 4 to +8; Middle Atlantic +2 to +6; East North Central
and Mountain +1 to +5; East South Central, West South Central
and Pacific Coast —2 to +2 and West North Central —4 to 0%.
of
1,
the past week
year ago.
Two With Sutro Co. '
(Special to Tiie Financial Chronicle)
SAN
according to spot estimates collected by Dun & Bradstreet, Inc.
Regional estimates varied from the comparable 1957 levels by the
following percentages: New England States +5 to +9%; South
Sales
become®
effective
was reported.
July 19, 1958 an increase of 1% was
corresponding period in 1957.
With H. L. Jamieson Co.
but volume remained noticeably below
was
The
Group.
term
increase of 6%
Raymond H. Mcintosh
last year,, scattered reports show.
The total dollar volume of retail
on
For the four
were
the
California
change with 14 branches in prin¬
cipal Southern California cities.
consumer buying of summer
apparel, outdoor furniture
conditioners, boosting total retail sales moderately over a
ago.
There was a slight gain from the prior week in the
new
a
of
urer
According to the Federal Reserve Board's index, department
store sales in,New Xor(k City for the
weekly period ended July 19,
1958 advanced 6% above that of the like
period last year. In the
preceding week, July 12, 1958, a gain of 7% was reported. For the
and air
call for
taken from
Mark Davids
Iratle^ sales volume in New York City
stimulated
year
as
ended
July 19,
In the preceding
Summer sports apparel and outdoor furniture
and helped to increase the over-all volume.
Trade Volume Last Week Showed Gains of 1 to 5%
Above a Year Ago
sales
week
lessening of
scattered orders,
98,000 bales, unchanged from the prior week. For the
through July 22 exports amounted to 5,601,000
bales, compared with 7,426,000 bales during the comparable
period last season. Stocks of cotton now owned by the Govern¬
ment were estimated at about 426,000 bales by the New York
Cotton Exchange.
clearance
for the
the
season
Extensive
country-wide basis
a
3% to 6% higher than in the like period
was
at
current
on
Board's index
today
Harvey J.
by
weeks ended July
19, 1958, a gain of 1% was recorded. For the
period Jan. 1, 1958 to July 19, 1958, a decrease of 2% was
reported
below that of 1957.^ V"
~
~"
• .
States exports of cotton in the week ended last Tuesday was esti¬
mated
Reserve
1958, rose 2% above the like period last year.
week, July 12, 1958, an increase of 5% was reported.
past
noticeably below the 294.40 of the comparable date
was
year ago.
.
Department store sales
the
raw
an
made
close to
was
>■■■'
•
ac¬
announcement
.
The
of 31
three
a
.
Food buyers stepped up their
purchases of canned goods, fresh
produce, frozen juice concentrates and picnic food specialties last
week. Volume in rice rose
again, and wholesale stocks were lim¬
that of
Associa¬
ers
slight rise in re-orders for air conditioners and fans and the
call for refrigerators and automatic
laundry equipment somewhat
was
.
a
Gov. of I. B. A.
was
merchandise,
goods and bedding equalled those of
markets
Mark Davids Elected
The buying of
housewares lagged at the Western Home Goods Market
opening
in San Francisco with
slight year-to-year declines evident.
Lower in Latest Week
The
transactions in print cloths and
broadcloths, but volume in other
cotton gray goods lagged.
Although interest in carpet wool climbed
appreciably in Boston and Philadelphia, sales of woolens and wor¬
steds, were unchanged from a week earlier.
JOSE,
Herzenberg
of
Sutro
&
Calif. —Albert
P.
has joined the staff
Co., 55 North First
Street.
Foster Marshall Adds
(Special
tO| The Financial Chronicle)
PORTLAND, Oreg.—George C.
Drougas is now with Foster &
Marshall, Southwest Sixth Avenue
at Oak Street.
j
The Commercial and Financial Chronicle
30
,
.
.
Thursday, July 31, 1958
.
(430)
* INDICATES
Securities Now in Registration
Co., Atlanta, Ga.
(par SI)
to be offered for subscription by common stockholders
at the rate of three new shares for each two shares held
of record June 30, 1958. Price—$6.25 per share to share¬
holders, and $7.50 for any unsubscribed shares.
Pro¬
ceeds—For working capital and general corporate pur¬
poses. Underwriter—None.
<
Share. ProceedSrWTo reduce its present short-term
iixdebtedness and to procure production and test equip¬
ment. Ubderwriter-r-None.
per
■
^ Allyn & Bacon, Inc.
July 22 (letter of notification) 42,346 shares of common
stock, (par: $1) to be offered for subscription by stock¬
holders on the basis of one new share for each eight
shares now held. Price—$6.35 per share. Proceeds—For
working capital. Office—41 Mount Vernon
Mass. Underwriter—None.
St., Boston,
(N.
Y.)
American Durox Corp., Englewood, Colo.
May 1 filed 2,500,000 shares of common stock (par $1).
Price—$2 per share. Proce$dsr--For construction of new
plant and establishment of the business at Tampa, Fla.,
including payment of the balance due on a plant site.
Underwriter—I. A. I. Securities Corp., 3385 S. Bannock
Street, Fuglewood, Colo.
American Mutual Investment Co., inc.
Dec. 17 filed 490,000 shares of capital stock,
Price—$10.20
per share. Proceeds—For investment in first trust notes,
second trust notes and construction loans. Company may
develop shopping centers and build or purchase office
buildings. Office — 900 Woodward Bldg., Washington,
D.
C.
Underwriter
—
Sheldon
None.
Highland Drive, Silver Spring, McL. is
Magazine,
1201
President.
1c American Petrofiiia, lac., New York
July 29 filed $6,950,000 of 5*,£% subordinated convertible
debentures due Jan. I, 1973, of which $5,000,0001 prin¬
cipal amount are<to be offered for account of Atlas Corp.,
and. $1,950,000 principal amount are to be offered in
exchange for a like amount of, 5%% subordinated con¬
vertible notes issued June 30, 1958. Price—Tu be sup¬
plied by amendment. Underwriters—White, Weld & Co.,
Blyth & Co., Inc. and Hemphill, Noyes & Co., all of New
of
members
to
capital.
working
;
(letter of notification) 775 shares of common
($100 per share). Proceeds—For a
new building; remodeling on farm buildings and working
capital Office — 2506 South 105th Ave., Omaha, Neb.
stock.
•
•
the
Under-
July 21
Price—At par
Underwriter—None.
;
'
Bankers
—
>
Anderson Electric Corp.
-
berg, Inc., Birmingham, Ala.
Anita Cobre U. S. A., Ine.,f Phoenix, Ariz.
Sept. 30 filed 85,000 shares of
par
common
ronto
To
★ Berkshire Gas Co.
July 16 (letter of notification)
Office—Toronto, Canada.
selling stockholders.
I
•
Un¬
der writer—N one.
18,461 shares of common
stock (par $10) to be offered for subscription' by stock¬
holders of record July 29,-1958 on the basis of one new
~
Carrtone
Metairiel
Inc.,
Laboratories,
(New
Orleans), La.
July 2 filed 600,000 shares of common stock (par 10
cents). Price—$5 per share. ' Proceeds—For expansion,
working capital and other corporate purposes. Under¬
share for each 6.5 shares held (with an oversubscription
privilege); rights to expire Aug. 21, 1958. Price—$14.75
share. Proceeds—To repay short-term notes. -Office
—20 Elm St., Pittsfield, Mass. Underwriter—None.Vper
writer—None.
«
:*
*r
■:._
•
Bitlups
Eastern
(8/4-5)
Petroleum Co.
Cinemark II
;
A* Black, Si vails & Bryson,
Productions, Inc.
June 30 (letter of
May 29 filed $2,500,000 of 7% debentures due July 1,
1993, and 650,000 shares of common stock (par $1) to be
offered for sale in, units, each consisting of $1,000 of
debentures and 20 common Shares. Price — $1,000 per
unit. Proceeds—To acquire all of the assets of Orlando
Fuel Oil Co., Inc., Florida Service Corp., Billups. Petro¬
leum Co. of Georgia, Inc., Billups Petroleum Co. of N. C.,
Tnc, Billups Petroleum Co. of S. C., Inc., Florida Friend
Oil Co., Inc., and Your Friend Oil Co., lnc^ Office—
Jacksonville, Fla.
Underwriter — The Johnson, Lane,
Space Corp., Savannah, Ga.
notification) 300,000 shares Of common
stock .(par 10 cents).
For working capital..
Santa
Price—$1 per share. ' Proceeds—
— 937 Acequia Madre
Rd.,
Office
Underwriter—Watson & Co., Santa- Fe,
Fe, N. M.
n. m.
•
CGS Laboratories
(8/8)
Inc.
July 11 filed 60,000 shares of common stock (par ,S1).
Price
To be supplied by amendment. Proceeds — To
—
short-term bank loans, for construction and work¬
ing capital.
Office—Ridgefield, Conn.
Underwriter—
Harden, Stone & Co., New York.
J";,
repay
Inc.
Commerce Oil Refining Corn.
r f
-
^
July 24 (letter of notification) 125,000 units of interest
Dec.
in Employees Purchase Plan at $1 per unit/ and 8,000
shares of $1 par common stock which will be .purchased
in the open market in connection With the plan. Office
Sept. I, 1968, $20,000,00 of subordinated debentures due
Oct. 1, 1.968 and 3,000,000 shares
common stock to be
—7506 E„ 12th.
of stock and $100 of debentures
St, Kansas City, Mo,
132,000? sharest of 6% serial preferred stock
Price—To be supplied by amendment.-Pro¬
conjunction with proposed merger
of company and Signature Loan Conine.
Stockholders
of Budget Finance will vote on proposal Aug. 5, 1958
Underwriter — Shearson, Hammill & Co., New York
Offering—Expected late in September.
-y
first
$25,000,000 of
due
bonds
mortgage
bonds and 48 sharei
nine shares
stock.
Price—To be supplied 8y amei^upent; Proceeds — To
construct refinery. Underwriter—Lehman Brothers, New
York.
Offering—Indefinite.
($10 par);
ceeds—To be used in
filed
16
offered in units as follows: $1,0% of
-
June 10 filed
Consolidated Cuban Petroleum Corp.
-
.
<■
_
July 1 filed 419,000.outstanding shares of common stock
(par
20
price
on
cents). Price—Related to the current market
the American Stock Exchange. Proceeds—To
selling stockholders. 'Underwriter—None.
»T—
stock. Price—At,
Underwriter—Selected Se¬
NEW ISSUE CALENDAR
* Apache Oil Corp., Minneapolis, Minn.
♦July 38 filed 94,766 shares of common stock (par $2.50)
to
be offered for subscription by stockholders at the rate
of one new share for each four shares held.
Price—To
be supplied by amendment. Proceeds — For working
capital. Underwriter—Piper, Jaffray & Hop wood, Min¬
neapolis, Minn.
August 4
|
(par $1)
being offered for subscription by holders of
stock at the rate of
five shares held
one
new
Augusts
July 7, 1958; rights to expire about
Sept. 22, 1958. Price—$14 per share. Proceeds—To pay
off an equivalent portion of the company's current bank
loans which, at May 15, 1958, amounted to,
$8,450,060.
(Bids
Typograph Co
1
Common
(Offering to stockholders—sto be underwritten by Shearson,
(Bids
Arizona Color Film Processing Laboratories
July H filed 500,006 shares of common stock (par $1).
A rccissiQn Qffer is being made with respect to stock
Offered beginning April &, 1958 to residents of the State
of Arizona. Price—$2 per Share. Proceeds—For land,
building and equipment, and working capital. Office—
Scottsdale, Ariz. Underwriter—None.
* Arnokf Altex Aluminum Co., Miami, Fla. (8/18)
July 28 filed 300,000 shares of 35 cents cumulative con¬
vertible preferred stock (Par $4). Price—To be
supplied
by amendment. Proceeds—$1,150,000 is to be used for
CGS
Laboratories
assignment of accounts receivable and warehouse
re¬
Associated Grocers, Inc., Seattle Wash.
June 30 filed 4,788 shares of common capital stock (par
$56) and $1,500,000 of 5% subordinated registered deben¬
ture notes, second series, and $606,006 of 5% coupon
•
CDT);.
$2,160,000
-
"yj
(MoDqn&id, Hoimaa & Co..
Haratiue
Gas &
Oil
(Herbert
Perry
Houston Corp.
tno.) $400,000
;
&
r
:
.
#
Inc.)
Power
v
/
(Bids,
noon
(Bids
Consumers
'■
_
Bonds
(Gr»ttenden,
Podesta
Sachs
& Co. and
'
invited)
$17,000,000
[
;
,
r|
(Tuesday)
Bonds
Co.______—_—
(Bids to be hivited) $40,000,000
'
r
Preferred
___
Mountain States Telephone &
'
;
Jaffray &
Telegraph
~
Preferred
to
stockholders—no
Bell
underwriting)
,_.CowmoJi
$70,09^,100 I
Telephone Co.__—Debentures
(Bids to be invited) $110,090,000
!
=
'
-
9
Common
Piper,
100.000-, shares
(Monday):
Co.„„*-„w.M-*,'--,r--Bonds
Consumers Power Co.J_.__.
Southwestern
$1,200,000
Pillsbury Mills, Inc..
(Goldman,
be
Co.
..
(Monday)
Co.)
■
•
(Bids.to be invited) $20,000,000
Debentures
&
'
September 30 (Tuesday)
11:30 a.in,. EDI) $45,000,000
Arnold Altex Aluminum Co
to
Power
r
,T,
EDT),. $20,000,000
August 28
;
September 23
(Offering
l
f :
?
'
August 13 (Wednesday)
(Bids
:
(Wednesday)
September 25
$299,950
Consolidated Natural Gas
_
(Bids *11 a.m. EDT > $8,000,000
.
Gulf States Utilities
Debs. & Common
Co.
.
Pennsylvania Power Co._____i_._—/-i.-.l-Bonds
(Blyth <S$ Co., lac.;. Lehman Brothers; Allen & Co; and
Sch^rff & Jones, Inc.) 361.880 units
j"
Montana
$50,000,000
(Bids to U invited) $4O,00Q00e
Common
Go.,
;
°
"
c'4
•"
>
Co.*
to be invited)
August 27
;
.Bonds
...
?
(Monday)
25
Co.^.Debens. ?
r.
(Tuesday)
—Debentures
New England Telephone & Telegraph
;
August 18
EDT>- $60,000,000
August 28 (Tuesdny)
Common
(Bids npon ISDT) %?Q,000,QOO
Co._—;—_—Bonds
/ Southern/California Edison Co.___—
(Monday)
Utah Power & Light Co—
a.m.
August
Common
*
"
"
Management Co.____
11
•/.
$2,340,000
(Rassco Israel Corp.) $^1,000,000
;,
(Bids
Inc. J J-.—-
August 31
invited ►
be
■
(Wednesday)
(Hayden, Stone & Co.) 60,000 shares
repayment of funds borrowed, from James Talcott, Inc.,
ceipts; $40,000 for the purchase of additional equipment;
and the balance for general corporate purposes. Underwriter—Cruttenden, Podesta & Co., Chicago, 111.
noon
Augusts
to
Rassco Financial Corp
Minneapolis & St. Louis Ry.-,^-Equip. Trust Ctfs.
Bankers
Underwriter—None., Statement, effective July 7.
(Bids
Public Service Electric & Gas
(Tuesday)
)
,v
-
—Equip. Trust Ctfs.
Norfolk & Western Ry.
Ludlow
share for each
on
Co.™J~Com.
& Debs.
(The JohnsOB, Lane, Space Corp.), $2,500,000:
outstand¬
common
August 20; (Wednesday)
(Monday)
Billups Eastern Petroleum
Hammill:&Co.) 106,156 shares
,Ardon Farms Co., Los Angeles, Calif.
June 4 filed 172,162 shares of common stock
on
Campbell Chibougamau Mines Ltd.
10 filed 606,667 Shares of capital.stock (par $1),
of which 506,667 were issued in connection with the- ac¬
quisition of all the assets of Yorcan Exploration Ltd.
(latter proposes to distribute said shares ratably to it«
stockholders of record Dec. 16, 1957). The remaining
($3.76 per Share). Proceeds—For investment in sub- -
sidiary and working capital.
curities, Inc., Phoenix, Ariz.
ing
an -ag¬
of
Budget Finance Pkn, J,o«iMge|esf Calif.
--
(letter of notification) 14,700 shares of class B
common stock (par $1).
Price—$12 per share^ Proceeds
—To go to selling stockholders.
Office — 706 N. 44tb
Street, Birmingham, Ala. Underwriters — Cruttenden,
Podesta
Co., Chicago, 111.; and Odess, Martin & Herz-
(par $1).
conversion of
upon
100,000 shares are Id be sold/for- the account Of the Estate
A. M. Callings Henderson on the American and .To¬
Stock Exchanges.
Price—At market. Proceeds—
Louis¬
ville, Ky.
,
Dec. 23
issuable
March
Price—At
Co.,
Bond
are
partnership, which notes were assumed by the
Dec. 31, 1957. - The notes are convertible at
any time after July 1, 1958, until the maturity or prior
redemption of the notes at a conversion price of $4 per
share.
Underwriter—None,; //, - •_ • - "
($100 per share). Proceeds—For general corporate
Underwriter
shares
company
-
stock.
.
limited
a
Co., Inc., New York.
common
Burr, Inc., Boston, Mass.;1
gregate principal amount of $923,500 of 10-year 8%, con¬
vertible subordinated income notes of the Calidyne Co.,
filed
Bankers Southern, Inc,
April 14 filed 8,934 shares of
~
par
These
,
Management Corp. (8/11)
400,000 shares of common stock (par 25
cents.) Price—$1 pet share^ Proceeds—To reduce out¬
standing indebtedness and for working capital.; OfficeHouston, Texas. Underwriter — McDonald, Holman &
—
ISSUE
Calidyne Co., Inc., Winchester, Mass.
June.4 filed 230,875 shares of common;stock
Bankers
10
Bay Gas Co.
writer—Coffin &
125,000 shares are to be offered publicly and
133,740 shares to employees pursuant to stock purchase
options. Price—To public, $6 per share. Proceeds—For
expansion and other corporate purposes. Office — At¬
•
REVISED
privilege); rights to expire on Aug. 6, 1958. Price—
($25 per share). Proceeds — To pay unsecured
notes.
Office—25 lyanough Rd., Hyannis, Mass. Under¬
At
of which
Underwriter—None.
ITEMS
tion
Fidelity Life Insurance Co*
Feb. 28 filed 258,740 shares of common stock (par $1),
lanta, Ga.
Buzzards
PREVIOUS
July 8 (letter of notification) 11,936 shares of 6% prior
preferred stock being offered to preferred stockholders
of record July 22, 1958 on the basis of two new shares
for each five shares outstanding (with an oversubscrip¬
Bankers
purposes.
Fetj. 28 filed 500,000 shares of common stock (par 20d).
Price—To be supplied by amendment. Proceeds — To
discharge current liabilities and to drill ten wells. Underwriters—»TQ be named by amendment.
For
it Baldwin Laboratories, Inc.
par
American-Caribbean Oil Co.
offered
be
—
writer—None.'
Feb.
t
To
Proceeds
association.
315,000 shares of common stock
* Aircraft Armaments, Inc., Cockeysville, Md.
July 16 (letter of notification) 70,000 shares of common
stock (par $1) to be offered for subscription by stock¬
holders of record July 10, 1958 (with an oversubscription
privilege). Transferable subscription warrants will be
issued at the rate of %th of a warrant for each share
now held.
Warrants expire Aug. 29, 1958. Price—$2.50
debentures.
bearer
Acme United Life Insurance
June 30 filed
ADDITIONS
SINCE
Hopwood)-
-
October 22
(Tuesday)
.
.
:
_
v ^ ••
Cincinnati & Suburban Bell Telephone Co.__Deb«.'
(Bids to be received*.) $25,000,000
Volume 188
Number 5764
.
The Commercial and Financial Chronicle
.
.
(431)
Consolidated Natural Gas Co.
(8/13)
July 18 filed $45,000,000 of debentures due Aug. 1, 1983.
Proceeds—For
bank
construction and to repay short-term
Underwriters—To be determined by com¬
loans.
new
petitive bidding. Probable bidders: Halsey, Stuart & Co.;
White, Weld & Co. and Paine, Webber, Jackson & Curtis
(jointly); Morgan Stanley & Co. and First Boston Corp.
(jointly). Bids—To be received up to 11:30 a.m. (EDT)
on
Aug. 13 at Room 3000, 30 Rockefeller Plaza, New
York
N. Y.
20,
•
Continental Mining & Oil Corp.
Dec. 9 (letter of notification) 250,000 shares of common
stock (par 10 cents). Price — $1 per share. Proceeds —
For mining expenses. Office—1500 Massachusetts Ave¬
N. W., Washington, D. C. Underwriter—E. L, Wolfe
Associates, 1511 K St., N. W., Washington, D. C. Offering
—Currently being made.
:
nue,
/ Cooperative Grange League Federation
Exchange, Inc.
JTune 20 filed $400,000 of 4% subordinated
debentures,
10,000 shares of 4% cumulative preferred stock (par
*$100) and 200,000 shares of common stock (par $5).,
? Price—At
par. Proceeds—To be added to working cap¬
ital.
Office—Ithaca, N. Y.
Cotter
stock-and
common
—For
cago
shares
of
non-cumulative
Research
Fund,
filed
100,000 shares
Price—At market.
cent).
Underwriter
Louis.
of
Proceeds—For
Counselors
—
Inc., St. Louis, Mo.
stock, (par one
capital
Research
investment
Sales
Corp.;
St
March
31
filed 767,838 units of
voting trust certificates,
each certificate representing the
ownership of one share
of common stock
(par one-half cent) in each of 24
Cuban
companies. Price — To be supplied by amend¬
Proceeds—For capital expenditures, exploration
costs and other corporate purposes. Underwriter—None.
ment.
^Curtis
(S.)
(8/13)
& Son, Inc., Sandy Hook, Conn.
July 18
(letter of notification) 5,000 shares of common
stock (par $10) to be offered for subscription
by stock¬
holders at the rate of five
of
record
-
new
shares for each 17 shares
Aug.
12, 1958. Price—$19 per share to
public, > $20 per share.
Proceeds—To
finance additional building, machinery,
equipment; and
for working capital.
Underwriter—Smith, Ramsay & Co.,
-Inc., Bridgeport, Conn.
stockholders;
-
to
Daybreak Uranium, Inc., Opportunity, Wash.
Jan. 29 filed 1,156,774 shares of common stock
(par 10
cents), of which 630,000 shares are to be offered for ac¬
count of company and 526,774 shares for selling stockholders.
Price—At market.
Proceeds—For exploration
and drilling costs and other corporate purposes.
writer—Herrin Co., Seattle, Wash.
Under¬
Underwriters—Lehman Brothers and Allen &
Co., both
of New York/
.
Derson Mines
Ltd.
I
filled 350,000 shares of common stock. Price—$1
share. Proceeds—For new equipment, repayment of
loan, acquisition of properties under option, and other
June 5
per
corporate purposes.
porium, Pa.
Office—Toronto, Canada, and Em¬
Underwriter—None.
Laboratories, Inc.
June 10 (letter of notification) 43,336 shares of common
stock (par $1) to be offered to stockholders on the basis
for each
share
one
business
10 shares
held until
the close of
June
20, 1958. Price—$1.10 per share. Pro¬
the general fund of the company. Office—
on
ceeds—For
W. Adams Blvd., Culver City, Calif.
Underwriter
—Lloyd Arnold & Co., Beverly Hills, Calif.
5837
Dixon Chemical
Dec. 24 filed
offered
be
the
rate
of
one
be
and
N
New York.
be
f
Feb.
20
par
expense
tion.
new
common
by
share
for
stock (par $1) to
common
each
stockholders at
four
shares
held
supplied by amendment.
Proceeds—Foi
general corporate purposes
Office —
rnderwritcr—P
W
Brooks
&
Co
Tnc
Offering—Indefinitely postponed. Statement
Other financing may be arranged.
withdrawn.
Ethodont
At
Research, Inc.
for subscription
Price—To
Clifton,
&
165,625 shaies of
expansion
may
Laboratories,
filed
($5
300.000
Berkeley, Calit.
shares
of
common
stock
Price—
share)
Proceeds—To cover operating
during »he /'pvelopment period of the corpora¬
per
Underwriter—None.
June 2 (letter of notification)
(par five cents)
ceeds—For
way,
*j
ommon
filed
indebtedness issued in payment for
improvements on
homes and secured by mortgages or other liens
upon the
improved properties. Underwriter—None.
26
cents).
filed
470,000
shares of
Price—$3 per share.
working capital.
be
named
stock
(par
by amendment.
Sol Gold¬
March
26
filed
tional
Inventory and accounts receivable, for research
development and tor other general corporate our
and
Office—Brooklyn, N. Y. Underwriters—Statement
to be amended.
working
Port & Terminal Co.
1,500.000 shares of
common
(par $5) of
Duro-Consolidated,
common
issued upon conversion of Duro's
convertible
which may be
$200,000 subordinated
debentures, series of 1956.
* Industrial Minerals Corp., Washington, D. C.
July 24 filed 600,000 shares of common stock
(par One
cent). Price—$1 per share. Proceeds—To
develop and
operate graphite and mica properties in Alabama. Un¬
&
Co.
Washington, D. C.,
and
Carr-Rigdom
&
Co.,
best efforts basis.
on a
Industro Transistor Corp. (N.
Y.)
Feb. 28 filed 150,000 shares of common
stock (par 10
cents). Price—To be related to the market price. Pro-
working capital and to enlarge research and
levelopment department. Underwriter
S. D. Fuller 8c
Co., New York. Offering—Being held in abeyance.
* Insurance Exchange Corp., Walla Walla, Wash.
July 25 (letter of notification) 25,000 shares of common
stock (par $10).
Price—$20 per share. Proceeds—For
general corporate purposes. Underwriter—None.
Insured Accounts
Fund, Inc., Boston, Mass.^
May 12 filed 5,000 shares of common stock.
Price—$5,000
per share. Proceeds—For investment. Business—To in¬
vest
efforts basis.
General Aniline A Film
Corp., New York
Jan. 14, 1957 filed 426,988 shares of common A stock
(no
par) and 1,537,500 shares of common B stock (par $1)
Proceeds—To the Attorney General of the United States
Underwriter—To be determined by competitive
bidding
Probable bidders: Blyth & Co., Inc., and The First Bos¬
ton
Corp.
(jointly), Kuhn, Loeb & Co.; Lehman
Brothers, and Glore, Forgan & Co. (jointly). Bids—Had
been scheduled to be received up to 3:45
p.m. (EDT) od
May 13 at Room 654, 101 Indiana Ave., N. W., Washing¬
ton 25, D. C., but bidding has been postponed.
primarily in share accounts insured by the Federal
Savings and Loan Insurance Corp., in savings and loan
associations throughout the country.
Underwriter—None.
Ben H. Hazen is President.
International Opportunity Life Insurance Co.
June 2 filed 5,000,000 shares of
common
stock
(par $1).
Price—$5
per share. Proceeds—For working capital and
other corporate purposes.
Office—Denver, Colo. Under¬
writer—Columbine Securities Corp., Denver, Colo.
* Investors Realty Mortgage & Financial Corp. *
24 filed $250,000 of investors income certificates
July
(6%
10-year maturities)
and 125,000 shares of class A
Price—The certificates will be offered in
various denominations at 100% per
stock.
common
certificate, and the
$2 per share. Proceeds—For
purpose of owning, buying and selling, and other¬
wise dealing in real
estate, or matters pertaining to real
class
A
stock
common
at
the
estate
and
which
the
the
improvement
company will
Underwriter—None.
thereof,
operate.
in
the
areas
in
Office—Aiken, S. C.
v
General
Devices, Inc., Princeton, N. 4.
(letter of notification) 40,000 shares of com¬
stock (par $1) to be offered for
subscription by
March 31
mon
stockholders
for
each
at
the
shares
100
shares to public.
rate
of
approximately 18.5 shares
April 15; unsubscribed
per share. Proceeds—For
held about
Price—$3.50
Georgia Casualty A Bursty Co., Atlanta, Ga.
May 6 filed 450,000 shares of common stock (par $1)
Price—$6 per share. Proceeds — For general corporate
purposes. Underwriter—Buckley Enterprises, Inc.
Glassheat
Corp.
(letter of notification) 150,000 shares of class A
stock (par 10 cents). Price—$2 per share. Preseeds—For
general corporate purposes.
Office—1 E
Feb. 12
common
35th
Street, New York 16, N. Y. Underwriter—James
Anthony Securities Corp., 37 Wall St., New York 5, N. Y
Guardian In&uranc* Corp.
Baltimore, Md.
•
Aug. 16, 1957, filed 300,000 shares of common stock, of
which 200,000 shares are to be publicly offered and the
remaining 100,000 shares reserved for issuance upon ex¬
ercise of warrants which
warrant
and/or
to
organizers,
directors.
are
to be sold at 25 cents
incorporators,
Price—$10
per
management,
Proceeds—For
per share.
working capital and general corporate purposes. Under¬
•
Haratine Gas & Oil
Co., Inc.
(8/12-13)
June
23 (letter of notification) 199,900 shares of com¬
stock (par five cents). Price—$1.50 per share. Pro¬
ceeds—For development of oil and gas properties. Office
mon
—24181
Effingham Blvd., Euclid 17, Ohio. Underwriter
—Herbert Perry & Co., Inc., New York, N. Y.
Hoagland & Dodge Drilling Co., Inc.
stock. Price—$10
per share.
Proceeds—To be used in part for the ex¬
ploration of mines and development and operation of
mines and in payment of indebtedness. Office—Tucson,
June 12 filed 27,000 shares of capital
Ariz.
Underwriter—None.
Houston Corp.
(8/12)
July 3 filed $36,188,000 of subordinated debentures due
Aug. 1, 1968, and 1,809,400 shares of common stock (par
$1) to be offered in units of $100 principal amount of
debentures and five shares of stock.
Proceeds
Price—To be sup¬
Together with other
funds, will be used to purchase the notes and common
stock of Coastal Transmission
mon
of
stock of Houston
Jacksonville
Fla.
Underwriter—None.
^ Kalvar Corp., New Orleans, La.
V
July 28 (letter of notification) 15,000 shares of common
stock (par two cents) to be offered for subscription by
stockholders
of record Aug. 15, 1958 on the
share for each five shares held; rights
to expire on Aug. 25, 1958. Price—$20 per share. Pro¬
common
basis of
one
new
ceeds—To retire bank
for
working capital.
Orleans 25, La.
loans, to invest in fixed assets and
Office—909 South Broad St., New
Underwriter—Howard, Weil, Labouisse,
Friedrichs & Co.,
New Orleans, La.
Laclede Gas Co.
June
filed
18
$10,000,000 of first mortgage bonds due
Proceeds—To
1983.
refund 4%%
first mortgage bonds
Underwriter—To be determined
due
1982.
tive
bidding.
by competi¬
Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Blyth & Co., Inc.; Lehman
Brother^ Merrill Lynch, Pierce, Fenner & Smith and
Reinholdt & Gardner (jointly); Eastman Dillon, Union
Securities & Co.; Stone & Webster Securities Corp. Bids
—Had been expected to be received up to 11 a.m. (EDT)
on July 8, but offering has been postponed indefinitely.
Probable
bidders:
Laughlin Alloy Steel Co., Inc., Las Vegas, Nev.
June
13 filed
$500,000 of 6% unsecured convertible de¬
bentures due June
30,1968 and 150,000 shares of common
cents). These securities are to be offered
units, each consisting of $100 of debentures and
30 common shares. Price—$100 per unit. Proceeds—To¬
gether with the $175,000 mortgage loan of the American
Brake Shoe Co., will be used to meet expenditures in
acquiring latter company's South San Francisco foundry
and for working capital. Underwriter—Sam Watson Co.,
Inc., Little Rock, Ark.
'/ j
stock (par 10
In 5,000
,
Leader-Cleveland Realty Associates, N. Y.
•
by amendment.
^Jacksonville Capri Associates Ltd.,
Jacksonville, Fla.
July 23 filed $325,000 of limited partnership interests.
Price—$5,000 per unit. Proceeds—For the purpose of
acquiring and operating the Capri Motel in Jacksonville,
Underwriter
—None.
—
Corp., the notes and
com¬
Texas Gas & Oil Corp., and 80%
Gas
Corp. common stock, and the bal¬
working capital and used for gen¬
Underwriters — Blyth & Co.,
Inc., Lehman Brothers and Allen & Co., all of New
York, and Scharff & Jones, Inc., of New Orleans, La.
eral
Opportunity, Spokane, Wash. Underwriter—Penna-
luna & Co., Spokane, Wash.
Pierce
May 23 filed 2,138,500 shares of common stock (par $1).
Price—To be supplied
by amendment.
Proceeds—To
pay some $174,000 of outstanding indebtedness and to
complete phase one of the port development plan, at a
cost of $1,425,248, and the balance will be
added to
working capital. Office—Fort Pierce, Fla. Underwriter
—Atwill & Co., Inc., of Miami
Beach, Fla., on a best
ance
Price—15 cents per share
Pro¬
capital.
Office—E.
12707
Valley-
stock
common
Inc., and for the shares of Duro
—
Laboratories, Inc.
150,000 shares of capital stock (par 10
cents). Price—$2.50 per share. Proceeds—For sales pro¬
motion of company's
products, working capital, addi¬
poses.
outstanding
6hares of
reeds—For
berg is President.
Forest
Corp.
Hussman Refrigerator
Co., St. Louis, Mo.
June 27 filed 31,584 shares of common
stock (par $5) to
be offered in
exchange for the issued and
SB
Proceeds—For exploration
Office — Portland, Ore
and
Underwriter—To
(to be supplied by amendment) will be issued in
the acquisition of
outstanding common
stock of Jacksonville Gas
both of
common
381,273 class A share held. (The
connection with
derwriters—Dearborn
Fluorspar Corp. of Amorlca
Dec.
for each
to subscribe with respect to 133,850
outstanding
class A shares has been waived.)
Furthermore, $511^500
of debentures and an
unspecified amount of common
shares
slock
Co., Inc., Clifton, N. J.
$1,000,000 of 12% notes, payable nine
months after date of issue in units of
$100 or In mul¬
tiples thereof. Price—100% of principal amount. Pro¬
ceeds—To be used solely for purchase of notes and other
7
times
approximately 1.5 shares
right
First Backers
April
stock held and
New
(par $1)
(subsequently amended to 300,000 shares). Price—$7 per
share.
Proceeds—For expansion and other
corporate
purposes.
Office—Richmond, Va. Underwriter—Willis,
Kenny & Ayres, Inc., Richmond, Va.
plied
Evergreen Gas & Oil Co.
stock
450,000
common
of class A stock for each
writer—None.
Diketan
of
Wall St.,
expansion, equipment and working capital.
Delhi-Taylor Oil Corp., Dallas, Texas
July 15 filed 575,869 depositary units for the class A
stock of the Houston Corp., to be offered for subscription
by the holders of common stock of Delhi-Taylor of rec¬
ord May 23, 1958 on a l-for-10 basis (with an oversub¬
scription privilege). Each depositary unit will represent
(a) the beneficial ownership of one share of class A
stock of the Houston Corp. and (b) an irrevocable option
to purchase 8,945/10,OOOths of one
additional share of
class A stock of Houston during a two-year period com¬
mencing on Aug. 15, 1959, or such earlier date as may
be determined.
Price—To be supplied by amendment.
*
/
80
share of
Pro¬
-Fidelity Bankers Life Insurance Corp.
March 7 filed
Fort
Havana, Cuba
held
—
standing common, on the basis of 1.51
common
share.
Robert H. Green is President.
Cuban-Venezuelan Oil Voting Trusts,
,
Office
per
York, N. Y. Underwriter—Dumont Securities Corp., New
York, N. Y.
pre¬
($100 per share). Proceeds
working capital. Office—365 East Illinois St., Chi¬
11, 111. Underwriter—None.
5
(par 10 cents).- Price—50 cents
ceeds—To make loans, etc.
Price—At par
stock.
Counselors
Feb.
750
stock
work
&
Co., Chicago, III.
(letter of notification) 1,500 shares of class A
July 25
ferred
Underwriter—None.
Federal Commercial Corp.
May 21 (letter of notification) 300,000 shares of
31
will be added to
July 16 filed $1,280,000 of participations in partnership
interests.
Price—$10,000 per participation. Proceeds—
To purchase the Leader Building in Cleveland, Ohio.
Underwriter—None.
Life
Insurance
March 28 filed
Securities Corp.
1,000,000 shares of capital stock (par $1).
Price—$5 per share. Proceeds—To acquire stock control
)f "young, aggressive and expanding life and other inmrance companies and
related companies and then to
>perate such companies as subsidiaries."
Maine Corp.. Portland
Me.
Underwriter—
First
corporate purposes.
Houston
Corp,
July 3 filed 818,333 shares of
common stock and 575.869
shares of class A stock to be offered to holders of out¬
Longren Aircraft Co., Inc.
June 18 (letter of notification^
**4 onn charge of onmmon
(par $1). Price—From 80 cents to $1.40 per share.
Proceeds—To go to selling stockholders. Office—24791
stock
Continued
on
page
32
22
The Commercial and Financial Chronicle
(432)
Continued from page
Crenshaw Blvd., Torrance,
Beeves & Co., Beverly
Office—1406
31.
Underwriter—Daniel
Calif.
Hills, Calif.
limited partnership interests in
Price—$5,000 per unit. Proceeds—To pur¬
hotel/ Underwriter—Tenney Associates, Inc., New
this companv.
.
Boulder, Colo.
Boulder, Colo.
National Gypsum Co.
25 filed 298,000 shares
offered in exchange for
4- Lord Elgin Hotel Corp., N. Y. C.
York.
St.,
June
July 29 filed 81,655,000
chase
•
Pearl
Securities Co.,
Western
Underwriter-
Typograph Co., Chicago, III. (8/7)
Julv 11 filed 106,156 shares of common stock (par $10)
to be offered for subscriotion by common stockholders
of record about Aug. 6. 1958. on the basis of one new
chare for each two shares held; rights to expire on Aug.
20. 1958. Price—To be supplied by amendment. Proceeds
—For working capital. Business—Composing room equip¬
ment and printing machinery and equipment. Under¬
writer—Shearson, Hammill & Co., New York.
Magna investment & Development Corp.
May 26 filed 56',000 shares of common stock and $500,000
ef 6% convertible debentures. Price—For debentures, at
f>ar (in $1,000 units); and for common stock, $4.50 per
share. Proceeds—For contractual obligations, for work¬
ing capital, and other general corporate purposes. Busi¬
ness
To engage primarily in the development and
operation of various properties, including shopping cen¬
ters. Office—Salt Lake City, Utah. Underwriter—J. A.
Bogle & Co., Salt Lake City, Utah.
Statement to be
•amended. Offering—Expected in latter part of August.
—
Baltimore, Md.
June 11 filed $25,000,000 of sinking fund debentures, due
JTuly 1, 1978. Proceeds — Working capital and general
corporate purposes. Frice-^-To be supplied by amend¬
ment^UUnderwriter—Smith, Barney & Co., N. Y. Offer¬
Martin Co.,
ing, which was expected on July 2,
Issue to remain in registration.
has been postponed.
of common stock to be
all but not less than 90% of the
outstanding shares of common stock of American En¬
caustic Tiling Co. Inc., in the ratio of one share of
National Gypsum common for each 2-4/10ths of Amer¬
ican Encaustic common.
National Gypsum shall have
right, at its election, to accept less than 90% but in
no event less than 81% of the American Encaustic com¬
mon. Statement effective July 17.
24
of
(letter of notification) 5,000 shares of 6%
preferred stock (par $50) and 5,000 shares
common
stock (par $1) to be offered in
units of
one
chare of preferred and one share of common stock.
Price
Proceeds—For working capital. Office—
—$60 per unit.
4383 Bandini Blvd., Los Angeles, Calif.
Bone.
Underwriter—
•
Michigan Gas Utilities Co.
July 9 filed 33,438 shares of common stock (par $5)
t>eing offered for subscription by common stockholders
«>f record July 28, 1958, on the basis of one new share
for each 10 shares held: rights to expire on Aug. 14.
Brice
$17 per share. Proceeds — Together with other
funds, will be used for repayment of bank loans and for
—
construction
purposes.
Underwriter—G.
H.
Walker
New York,
Co., Kansas
July 14 filed 725,000 shares of
stockholders at the rate of
common
each
share
debenture
one
new
share for
held; unsubscribed shares to be offered to
holders
and to others.
Price—$8
working capital.
Office—27
St., Binghamton, N. Y. Underwriter—None.
Proceeds—For
share.
Chenango
per
Potomac Plastic Co.
v-:'"'
ic New Haven Clock & Watch Co.
lege); rights to expire on Aug. 8, 1958. Price—At par
($1 per share). Proceeds—For general corporate pur¬
poses. Underwriter—L. D. Sherman & Co., New York.
North Carolina Telephone Co.
.
stock
notification) 207,143 shares of
stock to be offered to
of
one
common
common
stockholders at the ratio
share for each six shares held. Price—At par
($1
share). Proceeds—To pay off obligations and for
telephone plant construction. Underwriter—None.
per
O. T. C.
Enterprises Inc.
(letter of notification) 23,200 shares of com¬
(par $1). Price—$5 per share. Pro¬
ceeds—For completion of plant plans; land; construc¬
tion and operating expenses.
Office—2502 N. Calvert
St., Baltimore 18, Md.
Underwriter—Burnett & Co.,
Sparks, Md.
March 6
class B stock
Oil
Inc., Salt Lake City, Utah
April 4 filed 597,640 shares of common stock (par $1)
to be offered for subscription by common stockholders
of record March 24, 1958 at the rate of W\ new shares
for each share then held. Employees may purchase 50,000 shares of unsubscribed stock. Price—To stockholders,
$1.75 per share; and to public, $2 per share. Proceeds—
For mining, development and exploration
costs, and for
working capital and other corporate purposes. Under¬
writers—Harrison S. Brothers &
both of Salt Lake
Oil
&
(par $1).
Brice—$2 per share. Proceeds—For construction of plant
end for working capital. Underwriter—Investment
Sales,
(letter of notification) $57,500 of 6% subordi¬
57,500 shares of class A
common stock (par one cent)
to be offered in units of
500 shares of stock and $500 of debentures. Price—$1,000
per unit.
Proceeds — For equipment and working cap¬
nated convertible debentures and
ital.
Office—1550 Rockville Pike, Rockville, Md. Under¬
writer—Whitney & Co., Inc., "Washington, D. C.
•••.-„•
Prairie Fibreboard Ltd.
Feb. 28 filed 210,000 shares of common stock
(par $1.50)
be offered for sale to residents of Canada in the Prov¬
inces
of Manitoba, Saskatchewan and Alberta and to
July 23 (letter of notification) 300,000 shares of common
stock being offered for subscription by common stock¬
holders of record July 29, 1958 at rate of one new share
for each share owned (with an oversubscription privi¬
June 19 (letter of
■;
March 31
to
Houston, Tex.
Co., and Whitney & Co.,
City, Utah.
Mineral
Operations, Inc., Tulsa, Okla.
April 14 filed 200,000 shares of common stock. Price—
$2.50 per share. Proceeds—For payment of loans, various
—To acquire and operate mining claims and oil and
gas
equipment, and a reserve for future operations. Business
City, Mo.
common
Tool Co.
(letter of notification) 150,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—To
pay loan; to acquire fishing tools for leasing; and for
working capital. Office—931 San Jacinto Bldg., Houston,
Tex. Underwriter—T. J. Campbell Investment Co., Inc.,
&
Co., of St. Louis, Mo. and New York and Kidder, Pea%>ody & Co. and Stone & Webster Securities Corp., both
Mid-West Durex
Nedow Oil
Mav 5
mon
Mayfair Markets
March
Policy Advancing Corp.
25 (letter of notification) 30,250 shares of com¬
stock (par $5) to be offered for subscription by-
March
,
Ludlow
cumulative
Thursday, July 31, 1958
.
mon
the
•
.
.
properties. Underwriter—Universal Securities Co., En¬
terprise Building, Tulsa, Okla.
residents of the United States "only in the State of North
Dakota." Price — $2.50 per share. Proceeds —For con¬
struction
purpose.
Office
—
Saskatoon,
-
Saskatchewan,
Canada. Underwriter—Allied Securities Ltd., Saskatoon,
Canada.
Private Enterprise, Inc., Wichita, Kansas :
May 5 filed 125,000 shares of common stock. Price—$10
per share.
Proceeds — To be used to organize, or re¬
organize and then operate companies in foreign nations,:
principally, but not exclusively, in the Far East, Near
East and Africa.
Underwriter-^-None.
.
★ Public Service Electric & Gas Co. (8/20) //,
July 24 filed $60,000,000 of first and refunding mortgage
bonds due Aug. 1, 1988. Proceeds—To be added to the
general funds of the company, and will be used by it
for its general corporate purposes, including payment
before maturity of $10,000,000 principal amount of un¬
secured short-term bank loans made to the company on
June 30, 1958, and payment of a portion of the cost of
its current construction program.
Underwriter
—
To be
determined
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Kuhn,
Loeb & Co. and Lehman Brothers (jointly). Bids—Ex¬
pected to be received up to 11 a.m. (EDT) on Aug. 20.
Rapid-American Corp., New York
19 filed $1,504,000 of 7% sinking fund debentures,
together w7ith 105,000 shares of com¬
mon stock
(par $1). Proceeds—The debentures are al¬
ready outstanding having been issued in payment of
47,000 shares of common stock of Butler Brothers which
were acquired by Rapid American from 19 persons, in¬
cluding three directors of the corporation. The deben¬
tures are being registered against the possibility that
they may be sold by present owners. Of the 105,000
common shares, 75,000 are issuable under the company's
Restricted Stock Option Plan for officers and key em¬
ployees, and 30,000 under the Employees' Stock Pur¬
chase Plan.
Underwriter—None. ":r■
V-*-CJune
due Nov. 15, 1967,
Rassco
Financial Corp.
(8/20)
Inc., Miami, Fla.
July 29 filed 102,566 shares of common stock (par $1).
Price
To be supplied by amendment.
Proceeds—To
selling stockholders. Underwriter—R. S. Dickson & Co.,
June 26 filed $1,000,000 of 15-year 6% series A sinking
fund debentures due 1973, to be offered in denominations
Inc., Charlotte, N. C.
—Rassco
Paradox Production Corp., Salt Lake
City, Utah
April 18 filed 767,818 shares of common stock (par $1),
basis. '
of which 100,000 shares are to be offered
by the company
in exchange for oil and gas properties and
3,000 for serv¬
June 26 filed 1,998,716 shares of common stock (par $1).
Of this stock, 1,174,716 shares are to be sold on behalf of *
the company and 824,000 shares for the account of cer¬
tain selling stockholders. The company proposes to offer
writer—To be determined by competitive bidding. Prob¬
ices; the remaining 664,818 shares are to be offered to
the public. Price—To be supplied by amendment. Pro¬
ceeds—To selling stockholders.
Underwriter—Market
Securities, Inc., Salt Lake City, Utah. Statement effec¬
able bidders:
tive Jnne 5.
Price—To be supplied by amendment. Proceeds—To pay
off demand note, to pay other indebtedness, and the bal¬
Inc., 532 E. Alameda Ave.f Denver 9, Colo.
^Modern Community Developers, Inc.,
Princeton, N. J.
May 27 filed 15,000 shares of common stock. Price—
$100 per share. Proceeds—For working capital and gen¬
eral corporate purposes.
Underwriter—None.
Montana Power Co. (8/12)
July 1 filed $20,000,000 of first mortgage bonds due 1988.
Broceeds
Together with other funds, to be used to
repay $15,500,000 in bank loans and to carry on the
company's construction program through 1959. Under¬
—
Merrill
Halsey, Stuart & Co. Inc.; Lehman Bros.;
Lynch, Pierce, Fenner & Smith, and Stone &
Webster Securities Corp. (jointly); White, Weld &
Co.;
Eastman Dillon, Union Securities & Co.; Kidder Pea-
fcody & Co., Smith, Barney & Co. and Blyth & Co., Inc.
{jointly). Bids — Expected to be received up to noon
<EDT) on Aug. 12.
I
Montana Power Co.
July 1 filed 100,000 shares of common stock (no par).
The stock will be offered only to bona fide residents
of Montana.
Price—To be related to the current market
price on the New York Stock Exchange. Proceeds—To¬
gether with other funds, to carry on the company's conctruction program through 1959. Underwriter—None.
Motel Co. of Roanoke,
Inc.,
Roanoke, Va.
Nov. 18,1957 (letter of notification)
60,000 shares of com¬
mon stock (par 40
cents). Price—$5 per share. Proceeds—.
For purchase of land, construction and
working capital.
Underwriter—Southeastern Securities Corp., New York.
Motion
Picture
Investors
Inc.
common stock
(par $1).
Proceeds—For investment. Of¬
fice—1000 Power & Light
Bldg., Kansas City, Mo. Un¬
derwriter—None.
per
—
Peckman Plan
Fund, Inc., Pasadena, Calif.
May 19 filed 20,000 shares of
Price—At
market.
stock (par $1),
investment. Under¬
common
Proceeds—For
share.
-
of $500 and $1,000.
Price—At par. Proceeds—For work¬
ing capital and general corporate purposes. Underwriter
Israel Corp., New York, on a "best efforts"
•
Pecos
Valley Land Co., Carlsbad, N. Mex.
March 13 filed 2,000,000 shares of common stock
(par
10 cents), of which 300,000 shares are to be offered for
sale by the company and 1,700,000 shares
by the present
holders thereof.
Price—$1 per share. Proceeds—From
sale of the 300,000 shares, to be used to
pay 6% mortgage
notes and interest and to pay back tax claims, and inter¬
est due
&
on
the note to Mr. Harroun.
Co., Dallas, Texas.
Underwriter—Wiles
Statement effective July 21.
•"
Richwell
Petroleum
Ltd., Alberta, Canada
the 1,174,716 shares for subscription by its shareholders
one new share for each three shares held.
at the rate of
ance
if
any
will be added
writer—Pacific
writer—Investors Investments Corp., Pasadena, Calif.
Riddle
to
Securities Ltd.,
working capital. Under¬
Vancouver, Canada.
Airlines, Inc., Miami, Fla.
May
15 filed 750,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—For working capital. Underwriter—James H. Price &
Co., Inc., of Coral Gables, Fla., for 250,000 shares; balance
on
"best efforts" basis.
Robosonic
June
12
filed
Price—$3
per
National Industries Corp., N. Y.
500,000 shares of common stock, class B.
share. Proceeds—To manufacture on a
contract basis
an automatic telephone answering instru¬
ment; the enlargement of the research and development
Peerless Weighing & Vending Machine
Corp.
June 27 (letter of notification) a maximum of
25,000
shares of common stock (par $1) to be offered to minor¬
facilities of the company; patent and patent
ity stockholders
None.
on
the basis of
one
new
share for each
four shares held.
Any unsubscribed shares will be pur¬
by Rock-Ola Mfg. Corp. Warrants expire 20 days
from date of issuance. Price—$4.25 per share. Proceeds
—For working capital. Office—800 N. Kedzie
Ave., Chi¬
cago 51, 111. Underwriter—None.
chased
July 11 filed 200,000 shares of
Brice—$10.75
• One-Hour Valet,
•
applications;
public relations, and for working capital. Underwriter—
,
Rocky Mountain Quarter Racing Association
Oct. 31, 1957 (letter of notification) 300,000 shares ol
common stock.
Price—At par ($1 per share). Proceeds
—To
Colo.
repay
outstanding indebtedness. Office—Littleton,
B, Ford Co., Windover Road,
Underwriter—R.
Memphis, T&nn.
Sponsor—Ira Haupt
Peoples Life Insurance Co.
July 1 filed 41,823 shares of the company's outstanding
common stock
(par $5). Price—$42.25 per share. Pro¬
ceeds
To selling stockholders. Office
Washington,
D. C. Underwriter—None. Statement effective
July 23.
Regis Paper Co., New York
July 8 filed 118,746 shares of common stock (par $5)
to be offered in exchange for outstanding shares of capi¬
Beryl & Mining Corp., Estes Park, Colo.
May 16 (letter of notification) 2,916,000 shares of non¬
Peruvian Oils & Minerals Ltd.,
Toronto, Canada
July 11 filed 200,000 shares of capital stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
Growers Container.
working capital. Underwriter—Doolittle & Co., Buffalo,
N. Y., and Davidson Securities
Ltd., Toronto, Canada.
June 2 filed 70,000 shares of 5^% cumulative convert¬
ible preferred stock. Price — At par ($10 per share).
'
<
Municipal Investment Trust Fund, Inc. (N. Y.) '
May 9, 1957 filed 5,000 units of undivided interests in
Municipal Investment Trust Fund, Series A. Price—At
market. Proceeds—For investment.
& Co., New York.
National
assessable
common
stock (par one cent).
Price—10 cents
share. Proceeds—For mining expenses. Underwriter
—Birkenmayer & Co., Denver, Colo.
per
National Educators Finance Corp.
(letter of notification) 50,000 shares of common
4Stock. Price—At par (50 cents per share). Proceeds—
June 4
4To train and
cut
the
projected
to
implement and carry
plan of development and operation.
procure
persons
—
—
it Pillsbury Mills, Inc. (8/18)
July 29 filed 100,000 shares of common stock (par $25).
Price—To be supplied by amendment.
Proceeds—For
capital expenditures. Underwriters—Goldman, Sachs &
Co., New York, and Piper, Jaffray & Hopwood, Minne¬
apolis, Minn.
;
St.
tal stock of Growers Container
the basis of
one
Corp., Salinas, Calif., on
St. Regis share for 18 shares of stock of
Underwriter—None.
Imnerial Corp.. San
Diego, Calif.
Proceeds—To retire $550,000 of promissory notes. Under¬
writer—J. A. Hogle & Co., Salt Lake City, Utah. Offer¬
ing—Postponed indefinitely.
Scholz Homes,, Inc.
July 25 (letter of notification) 31,500 shares of
stock
(par $1)
to
be
issued
upon
common
exercise of options.
Volume 188
Number 5764
...
The Commercial and Financial Chronicle
Price—The
option price to all optionees except Donald
(the market price at July 30,
1957); the option price to Mr. Scholz must be at least
110% of the market price, or $7 per share. Proceeds—
For working capital. Office—2001 North Westwood Ave.,
Toledo 7, Ohio. Underwriter—None.
J. Scholz is $6 per share
Standard Oil Co.
Trans-Eastern Petroleum Inc.
Feb.
mon
27
(letter of notification) 7,500 shares of commoE
(par $1) to be offered pro-rata to stockholders oe
stock
the basis of
3»
(433)
one
share for
new
10 shares owned.
stock at the rate of
one
new
share for each three*
The record date is to be supplied by amend¬
shares held.
Price—At par ($5 per share). Proceeds—To bd>
applied to the payment of $700,000 of short-term bank
loans incurred in carrying forward the company's con¬
ment.
Priot
—$4 per share. Proceeds—For drilling for oil and ga*
Office—203 N. Main Street, Coudersport, Pa.
Under¬
struction
and
conversion program.
Underwriter—None.
writer—None.
(Calif.)
Western Industrial Shares, Inc., Denver, Colo.
July 16 filed 1,000,000 shares of common stock (par 2S
cents). Price—$5 per share. Proceeds—For investment.
Underwriter
Andersen, Randolph & Co., Inc., 65 So.
Main St., Salt Lake City, Utah.
"
.
June 4 filed $150,000,000 of sinking fund debentures due
July 1, 1983. Price—To be supplied by amendment. Pro¬
ceeds—To refinance a bank obligation of $50,000,000 due
this year to provide additional capital for the company'*
overall program.
Underwriters—Blyth & Co., Inc., and
Dean Witter & Co., both of San Francisco, Calif., anc
New York, N. Y. Offering—Postponed from June 25 by
the company "due to market conditions." Issue to re¬
main in registration.
State Life, Health & Accident Insurance Co.
July 9 (letter of notification) 50,000 shares of common
stock (par $1).
Price—$5 per share. Proceeds—To be
in stocks
invested
bonds
and
and
to
acquire other life
insurance companies. Address—P. O. Box 678.
Gulfport,
Miss. Underwriter—Gates, Carter & Co., Gulfport, Miss.
Strategic Minerals Corp. of America, Dallas, Tex
March 31 filed $2,000,000 of first lien mortgage 6% bond)
and 975,000 shares of common stock (par 10 cents). Prict
—For bonds, 95% of princmal amount; and for stock $:•
per share. Proceeds-~To erect and operate one or mort
chemical processing plants using the Bruce - William*
Process to beneficiate manganese ores.
UnderwriterSouthwest Shares, Inc.. Austin, Texas.
Sugarbush Valley Corp., Warren, Vt.
June 25 filed $392,800 of 20-year 6% subordinated de¬
bentures and 12.766 shares of common stock to be of¬
fered
units
in
consisting
$800
principal amount of
Price
$1,200 per
payment of short-term bank loan
and working capital. Underwriter—None.
of
debentures and 26 shares of stock.
—
Proceeds—For
unit.
Systron Corp., Concord, Calif.
10 (letter of notification) 24,475 shares of capital
stock (par $5) to be offered to stockholders on the basis
June
of
one
share for each share held
—$12.25
per
share.
June 10, 1958.
Price
Proceeds—For working capital. Un¬
on
derwriter—None.-
Twentieth
/c
Century Investors, Inc., Kansas City,
Mo.
June 20 filed 2 000,000 shares of common stock (par $1)
Price—At maii-et.
Proceeds—For investment. Under-
—
writer—Stowers & Co., Kansas City, Mo.
Western Pacific Mining Co., Inc.
May 26 filed 564,000 shares of common stock. Price—A*
par ($1 per share). Proceeds—For capital expenditures*
and exploration costs. Office—Santa Paula, Calif.
Un¬
Twentieth Century Investors Plan, Kansas City,
Mo.
June 20 filed $10,000,000 of plans for the accumulation
of shares of Twentieth Century
Investors, Inc. Price—At
market.
Proceeds
—
Stowers & Co., Kansas
For
investment.
derwriter—N one.
Underwriter—
Westland Oil Co., Minot, N. Dak.
April 17 filed 7,799 shares of capital stock to be offered
for subscription by stockholders of record March 24 all
City, Mo.
★ United Asbestos Corp., Ltd., Montreal, Canada
July 29 filed 225,000 shares of capital stock (par $1) to
be issued upon exercise of options exercisable at $4 per
share.
Proceeds—To pay outstanding liabilities, to in¬
crease working capital and for general
corporate pur¬
poses. Underwriter—None.
rate of one new share for each four shares held arid on®
additional
None.
Tennessee Gas Transmission Co.
(par $5)
being offered in exchange for common stock of Middle
States Petroleum Corp. at the rate of 45 shares of Ten¬
nessee
Gas
common
The
for each 100 shares of Middle States
offer is assured as over 80%
of Middle Stales common stock has been deposited. The
common.
exchange
offer
expires Aug. 8.
Co., Inc., New York.
Statement
—
Houston
Texas.
Underwriter
Price—$4
investment
Universal
Oil
Thomas Paint Products Co.
May 26 (letter of notification). 1,250 shares of common
stock (par $10) and $37,500 of 6% serial subordinated
debentures series 1958, to be offered in units of one
share of stock and $50 principal amount of debenture*
to be offered to stockholders on the basis of one unit for
each two shares of stock owned (500 of the shares are
being offered to the President of the company). Price—
$60 per unit. Proceeds—For working capital. Office—
543 Whitehall St., S. W., Atlanta, Ga.
Underwriter—
with particular emphasis on those engaged
mining gold. The trust may also invest to a certain
extent in gold bullion. Underwriter—Dillon, Read & Cow
South Africa,
Inc., New York.
Recovery Corp., Chicago, III.
None.
^Universal Securities, Inc.
July 22 (letter of notification) 1,500 shares of preferred
class A stock (par 50.
cents).
Price—Of preferred, at par ($100 per share);
of common, $7.50 per share.
Proceeds — For working
capital. Office—405 North Third St., Bismarck, N. D.
stock and 20,000 shares of common
Jan. 23 it
-
Underwriters
Austria
Timeplan Finance Corp.
March 25 (letter of notification) 27,272 shares of 70-cent
cumulative preferred stock (par $5) and 27,272 share*
of
common
of
one
stock
(par 10 cents) to be offered in unit*
Price—$11 per unit
For working capital.
Office — 111 E. Main
share to each class of stock.
Proceeds
—
St., Morristown, Tenn. Underwriter—Valley Securitie*
Corp., Morristown. Tenn.
Tip Top Oil & Gas Co., Salt Lake City, Utah
April 15 filed 220,000 shares of common stock, of which
200,000 shares are to be publicly offered. Price—$5 per
share. Proceeds—To drill two new wells and for general
Underwriter — Andersen-Randolph
& Co., Inc., Salt Lake City, Utah.
corporate purposes.
Trans-America
Uranium
Mining Corp.
Nov. 6, 1957 filed 3,000,000 shares of common stock (pai
one mill). Price—25 cents per share. Proceeds—For land
acquisition, exploratory work, working capital, reserves
and other corporate purposes. Underwriter—None. Al¬
E. Owens of Waterloo.
Ia.,
is President.
Trans-Cuba Oil Co., Havana, Cuba
March 28 filed 6,000,000 shares of common
stock (par 50
cents) being offered for subscription by holders of out¬
standing shares of capital stock and holders of bearei
shares, in the ratio of one additional share for each share
so held or represented by bearer shares of record May
28, 1958; rights to expire on Aug. 1, 1958.
Price — 50c
per share.
Proceeds—For general corporate purposes
including exploration and drilling expenses and capita)
expenditures. Underwriter—None.
Utah Minerals Co.
Utah Oil Co. of New
York, Inc.
May 6 (letter of notification) 300,000 shares of capital
stock. Price — At par ($1 per share). Proceeds — For
development of oil and gas lands. Office—574 Jefferson
Ave., Rochester 11, N. Y. Underwriter—Frank P. Hunt
& Co., Inc., Rochester, N. Y.
Utah Power & Light Co.
ing—Expected in October or
(8/11)
$20,000,000 of first mortgage bonds due
1988.
Proceeds—To redeem $15,000,000 of first mort¬
gage bonds, 5V4% series due 1987, to repay $4,000,000 of
bank borrowings, and the balance together with further
borrowings under a bank agreement and cash generated
in
the business will be used to carry forward the con¬
of the company and its subsidiaries
amounting to approximately $43,000,000 for the period
1958-1960. Underwriter—To be determined by competi¬
struction
tive
program
bidding.
Probable
bidders:
Halsey,
Stuart
& Co.
Inc.; First Boston Corp. and Blyth & Co. Inc. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp.
(jointly); Salomon Brothers & Hutzler; Kidder, Peabody
& Co.; Eastman Dillon, Union Securities & Co., and
Smith, Barney & Co. (jointly); Lehman Brothers and
Bear, Stearns & Co. (jointly). Bids—Expected to be re¬
ceived in Room 2033, 2 Rector Street, New York, N. Y.t
up to noon (EDT) on Aug. 11, 1958.
Western Carolina
Telephone Co., Weaverville,
N. Cor.
June
6
fered
for
89,391 shares of common stock to be of¬
subscription by holders of outstanding com¬
filed
Under¬
Offer¬
Electric & Power Co.
July 14 it was announced company contemplates mar¬
keting between $5,000,000 and $7,000,000 securities ia
the Fall of 1958. Neither the exact date of the offering
nor the nature of the securities to be offered has beea
determined.? Decision on these two points will probably
not be reached until
held
(par $10).
of
of
or
early September.
special meeting
amendment to the c6rtiissue of 200,000'
preferred stock:
Convertible into common stock at the rat®
share. Proceeds—To retire outstanding note®
of the company at a
incorporation authorizing an
of 5% cumulative convertible
of
shares
mid-August
Hadley Corp.
June 25, approved an
on
ficate
$2.86 per
a subsidiary in the amount of $768,000.
Central
Louisiana
Electric
March 28 it was announced that
program
debt
and
Co., Inc.
the company's financing
for the year 1958 anticipates the sale of botk
equity securities (probably preferred stock)
aggregating approximately $5,000,000.
be placed privately.
filed
26
Co., New York.
early November.
writer—May be Kuhn, Loeb &
The shareholders
(letter of notification) 900,000 shares of com¬
Price—At par (10 cents per share). Proceed*
—For mining expenses. Office—305 Main St., Park City
Utah.
Underwriter—Walter Sondrup & Co., Salt Lake
City, Utah.
stock.
June
projects and other improvements.
electric power
Central
April 11
mon
(Republic of)
July 15 it was announced that the country contemplate®
the issuance and sale of $30,000,000 bonds. Proceeds—For
California
Portland, Ora.
April 30,1957 filed 1,250,000 shares of common stock(par
16 cents).
Price—To be supplied by amendment (exoeeted to be $1 per share). Proceeds—For exploration
purposes.
Underwriter—To be named by amendment.
Graham Albert Griswold of Portland; Ore., is Pres¬
Salomon Bros. & Hutzler and Lehman
—
Brothers, both of New York.
Underwriter—None.
Uranium Corp. of America,
sell
determined).
reported company plans to issue and
was
additional debentures (amount not yet
some
ident.
^- Time Saver Markets, Inc.
July 14 (letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share). Proceeds—To own
and operate a general food market. Office—633 S. Kenmore Ave., Los Angeles, Calif.
Underwriter—None.
Investment Co.
Associates
Price
—$4 per share. Proceeds—For exploration and develop¬
ment of properties, and the balance for other corporate
purposes. Underwriter—None.
i
as aa
of the
company
in
Underwriter-
June 4 filed 37,500 shares of class A common stock.
Abilene, Texas
April 30 filed 2,000,000 shares of capital stock (par 25
cents). Price—To be supplied by amendment. Proceeds
—To selling stockholder. Underwriter—Thomson Kernaghan & Co., Ltd., Toronto, Canada. To be offered in
Canada only.
plans addi¬
Investment Company Act of 1940.
and supplies and for working capital and other corporat*
Office—Salt Lake City, Utah.
Amos Treat & Co., Inc., of New York.
Co.
announced that the company
was
closed-end type under tha
Business—The trust*
incorporated under the laws of the Union of Africa, ha®
been organized to provide a medium for investment in
the common shares of companies engaged in business ia
-
effective June 23.
purposes.
-
American-South African Investment Co.
(par $1)
share. Proceeds—To purchase equipment
per
Steel
June 13 filed for permission to become registered
United States Telemail Service, Inc.
Feb
17 filed 375,000 shares of common stock
Dealer-Manager—Dillon, Read &
Texas Calgary Co.,
fred
Office
.
ing capital and inventories. Underwriters—Blyth & Co^,
Inc. and Merrill Lynch, Pierce, Fenner &
^mith.
stock (par on*
Price—$1 per share. Proceeds—For plant rental
etc.; to retire corporate notes; for core drilling; for
working capital; and for other exploration and develop
work
ia
tional financing this year, in the form of common stock,
preferred stock, or a combination of the two, including
bank loans.
Proceeds—For expansion program, work¬
eent).
ment
;
March 21 it
Underwriter—None.
Congress.
holdings
of
Prospective Offerings
United States Sulphur Corp.
Oct. 8 filed 1,500,000 shares of common
—$25 per share. Proceeds—For investment. Underwriter
—Equitable Securities Corp., Nashville, Tenn. OfferingHeld up pending passing of necessary legislation by
such
,
Acme
July 21 (letter of notification) 490 share of capital stock
(no par). Price—$70 per share. Proceeds—For purchase
equipment.
of
divisible
an
underlying shares of United Accumulative Fund.
of additional rental
holders
balance
shares
System, Inc.
April 2 (letter of notification) 72,035 shares of common
stock (par $1) of which 10,000 are to be offered to stock¬
holders at $2 per share and the remaining 62,035 share®
are to be publicly offered at $3 each.
Proceeds — For
general corporate purposes.
Office—151 Adell Avenue*
Yonkers, N. Y. Underwriter — Edwin Jefferson, 3fl>
Broadway, New York 6, N. Y.
,ic United Rent-Alls, Inc., Lincoln, Neb.
Tax Exempt Bond Fund, Inc., Washington, D. C
June 20, 1957 filed 40,000 shares of common stock/Price
June 2 filed 1,084,054 shares of common stock
offered
indeterminate number of the underlying shares of United
Accumulative Fund and $2,500,000 of Periodic Invest¬
ment Plans with insurance and an indeterminate num¬
ber of
of
Wilier Color Television
additional $15,000,000
an
be
None.
President.
Investment Plans without insurance and
the
for
number
each $1,000 of debentures then held. Price — $60 per
share.
Proceeds—For working capital.
Underwriter—
-^ United Funds, Inc., Kansas City, Mo.
of Periodic
share
the
by four; also
outstanding 5% subordinated
debentures of record March 24 at rate of five shares for
to
United Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5)
Price — $10 per share. Proceeds — For acquisition ol
operating properties, real and/or personal, includinf
office furniture, fixtures, equipment and office space, by
lease or purchase.
Office — Wilmington, Del. Under¬
writer—None.
Myrl L. McKee of Portland, Ore., i*
July 28 filed (by amendment)
of
excess
Both issues may
Cincinnati & Suburban Bell Telephone
Co.
July 7 it
ized
having
(10/21)
was
sale
the
a
announced that the directors have author¬
of not exceeding $25,000,000 debenture®
maturity of not more than 35 years. Proceed®
received from American Telephone*
—To repay advances
29% of the outstanding
Underwriter — To b®
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Glore*
Forgan & Co. and Eastman Dillon, Union Securities &
Co. (jointly). Bids—Expected to be received on or about
&
Telegraph Co. which owns
common
Oct.
stock
of the
company.
21.
Consumers
Power Co.
(9/23)
July 17 it was announced that the company plans to issue
than $40,000,000 of first mtge. bond®
due 1988. Proceeds—For expansion and improvement of
and' sell not more
service
facilities.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.; White, Weld & Co. and
Continued
on page
34
The Commercial and Financial Chronicle
<4M> *
M
Continued from page
33
& Co. (jointly); The First Boston Corp. and
Harriman Ripley & Co. Inc. (jointly). Bids—To be re¬
ceived on Sept. 23.
^
^
Consumers Power
issue
Pro¬
improvement of service facili¬
ties.
Underwriter—May be determined by competitive
bidding. Probable bidders: Morgan Stanley & Co.; The
First Boston Corp. and Harriman Ripley & Co. (jointly);
ceeds—For expansion and
White, Weld & Co. and Shields & Co. (jointly).
Bids-
Expected to be received on Sept. 23.
Equitable Gas Co.
July 18 it was announced that the company expects later
in the year to issue and sell additional securities, prob¬
ably preferred stock, to secure approximately $5,000,000
of additional funds. Proceeds—Together with $7,000,000
private sale of 4%% bonds, to repay short-term
bank loans and for construction program. Underwriter!
from
—May be The First Boston Corp.; Kidder, Peabody &
Co.; Merrill Lynch, Pierce, Fenner & Smith; and White,
Weld & Co., all of New York.
1
General Public Utilities Corp.
7 stockholders
approved
a
plan authorizing the
directors in connection with an offering of common stock
to
stockholders, also to offer certain shares on the same
to employees, including officers, of System com¬
panies. Clearing Agent—Merrill Lynch, Pierce, Fenner
terms
&
Smith, New York.
•
Grace Line
Inc.
Great Atlantic & Pacific Tea Co.
Feb. 19 it was reported a secondary offering of common
Voting stock is expected in near future. Underwritersr
May include: Blyth & Co., Inc.; Carl M. Loeb, Rhoades
Co.; Hemphjttl, Noyes & Co.; Smith, Barney & Co.;
and Merrill Lynch* Pierce, Fenner & Smith.
&
Gulf
of
Interstate
new
August
Co.
announced
was
Oil
$2,000,000 and
ing of
a
company (formerly known as
Co.) intends to obtain a minimum
maximum of $5,000,000 via an offer¬
shares of
September.
or
common
stock
to
1988.
sell
and
Proceeds
stockholders in
Proceeds —For working capital.
llrGulf States Utilities Co. (9/15)
July 28 it was announced that the
issue
company
plans
to
$17,000,000 of first mortgage bonds due
—
Will
be
used
to
retire
its
presently
outstanding $17,000,000 issue of 4%% bonds due 1987.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman
Brothers; Mbrrill Lynch, Pierce, Fenner & Smith and
White Weld & Co. (jointly); Stone & Webster Securities
Corp.; and Salomon Bros. & Hutzler and Eastman Dillon,
Union Securities & Co.
On
Bids—Expected to be received
,
12, George H. Buck, President, said
that
com¬
pany plans to sell some $7,000,000 in
new securities by
mortgage bonds
financing was made
privately. In event of competitive bidding for bonds or
debentures, bidders may include: Halsey, Stuart & Co.
7?c:; J*!e Eirst Boston Corp. and White, Weld & Co.
(jointly); Stone & Webster Securities Corp.; Blyth &
Co., Inc.; Drexel & Co. and Dean Witter & Co.
(jointly).
The First Boston
Corp. and White, Weld & Co. (jointly)
the end of this year in the form of first
and preferred stock. Recent bond
common
stock
financing.
There
Purred stock presently outstanding.
is
Private sale
30,000 shares ($3,000,000) of preferred is planned.
no
of
Kansas Gas & Electric Co.
March 31, G. W.
Evans, Chairman, announced that com¬
pany plans to sell some bonds
originally scheduled for
mid-year,
late 1958
but which
or
Pacific
;
Jan. 8 it
^ Laboratory for Electronics, Inc.
July 3, Henry W. Harding, President, announced that
the directors are currently considering refinancing $790,000 of outstanding notes ($658,750 held by a principal
stockholder and $131,250 by a bank) on a more perma¬
nent basis.
This may be done through equity or convertible debenture financing. Office—75 Pitts St., Bos-
sale
may
now
be
deferred
until
early 1959.
Proceeds—About $8,000,000 for
construction program. Underwriter—To
be determined
»y
competitive
bidding.
Probable bidders:
Halsey,
Stuart & Co. Inc.;
Kidder, Peabody & Co., and Merrill
Pl£rC?' Fe^n.?,r &TTS4mith (jointly);
Lehman
Brothers, Eastman Dillon, Union Securities & Co. and
Stone & Webster Securities
Corp. (jointly); Glore, Forgan & Co., and Goldman Sachs & Co.
(jointly).
Kansas Power & Light Co.
Feb. 14 it was announced
company plans to issue and
sell $10,000,000 of first
mortgage bonds due 1988. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive
bidding. Probable
bidders:
Halsny, Stuart & Co. Inc.; The First Boston Corp.; Glore
Forgan & Co.; Harriman Ripley & Co. Inc.; White, Weld
& Co.; Blyth & Co., Inc.; Equitable
Securities Corp.
plans sale of an
preferred stock in
Telephone & Telegraph Co.
reported company plans $300,600,000 capi¬
was
outlay program.
1958 and
1959
Panama
(Republic of)
Proceeds—For construction program
,
July 14 it
announced a public offering is expected
approximately $26,000,000 external bonds. .Proceeds—
To redeem certain outstanding debt and for Panama's
_
was
of
Inc., Fairfield, Calif.
announced this newly organized invest¬
27 it was
road
feeder
Underwriter—Lehman
program.
New York.
-
.
,
Brothers,
,
company
Proceeds—For investment.
Pennsylvania Power Co. (8 27)
July 22 it was announced that the company
on July 21
filed applications with the Pennsylvania P. U. Commis¬
sion and the SEC proposing to issue and sell $8,000,000
r
of 30-year first mortgage bonds.
announced it plans to issue on or
$3,200,000 of first preferred mort¬
gage bonds.
May be placed privately. Proceeds — To
repay bank loans and for working capital.
28, company
before Dec. 31, 1958
like
was
Fenner & Smith and Dean Witter & Co.
—To be received
after Aug. 26,
(jointly). Bids
1958, as market
conditions appear favorable, but not later than Dec.
St.
16.
Minneapolis & St. Louis Ry.
market
(8/5)
authorizing
April 7 it
to
plans to issue and
'
'
7
'
announced by the company that it pla
additional bonds
Proceeds
—
was
Edison Co.
(announced that the
(8/25)
company
contemplate
issue and sale of
$50,000,000 of first and refunding mort
Proceeds—For construction program. Un¬
bonds.
gage
derwriter—To
be
determined by competitive biddingHalsey, Stuart & Co. Inc.; Kuhn, Loe
Co.; First Boston Corp., and Dean Witter & Co. (joint
ly); Blyth & Co., Inc. Bids—Expected to be received o
Probable bidders:
& Tele. Co.
&
Aug. 25.
Southern Colorado
May
temporary loans made to finance the
company's expansion program. Underwriter—None.
stockholders
9
shares
Stone
(8/26)
of
&
Power Co.
authorized
additional
a.n
100,00
preferred stock (par $50).
Underwriters—
Webster Securities Corp. and Paine, Webber-
Jackson & Curtis.
announced company plans to issue and
Southwestern Bell Telephone Co.
July 10 it
;
was
(9/30)
announced Missouri Public Service Com¬
mission authorized the company to issue
$110,000,000 >o
To refund outstanding
issue. Underwriter — To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.
be determined by competitive bidding. Probable bidders:
35-year debentures.
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Mor¬
gan Stanley & Co. Bids — Expected to be received on
Aug. 26.
Electric and Gas Co.
announced that
program.
by competi¬
Electric & Gas Co.
Southern California
Proceeds—To repay
was
was
some
July 3 it
(9/30)
July 29 it was announced company plans to offer to its
stockholders of record Sept. 26, 1958 the rigths to sub¬
scribe on or before Oct. 24, 1958 for 700,961 additional
shares of capital stock on the basis of one new share
for each five shares held. Price—At par ($100 per share).
New York State
construction
determined
during the latter part o
Together with bank loans, to b
$16,000,000 construction program. Bonds nia
be placed privately through Kidder, Peabody & Co.
$24,000,000 of government insured bonds secured by
a first preferred ship mortgage on the liners S. S. Brasil
and S. S. Argentina.
Underwriters—Kuhn, Loeb & Co.
and Lehman Brothers, both of New York. Offering—Ex¬
pected this Summer.
-V
v/;
March 7 it
sell
the year.
used for
Lines, Inc.
sell $40,000,000 of debentures. Proceeds—To redeem a
like amount of 4^% bonds due 1961. Underwriter—To
be
'
South Carolina
sell
was
to
Halsey, Stuart & Co, Inc.*
Smith, Barney & Co., Glore, Forgan & Co. and Blair
(jointly); White, Weld & Co.; Equitable Secu¬
rities Corp. Last preferred financing was done privately.
of this year or in early 1959. Underwriter
by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.;
Merrill Lynch, Pierce, Fenner & Smith and Kidder,
Peabody & Co., Inc., (jointly); and Blair & Co., Inc.
New England Telephone & Telegraph Co.
for
and
bonds
& Co. Inc.
determined
April 11 it
loans
tive bidding. Probable bidders:
the latter part
* Mountain State Tele.
bank
Underwriter—For
Utilities Co.
announced company
that the compauj plan* to
preferred stock "sometime
or
stockholders
on
May 21 voted on
increase in bonded indebtedness of $6,
an
short-term
reported the company plans to issue and
undetermined amount of first mortgage bonds in
was
The
500,000, and an increase in preferred stock from 25,000
shares to 50,000 shares. Proceeds — For repayment of
was
Moore-McCormack
announced
was
$6,500,000 in bonds
summer."
this
(CDT)
on Aug. 5 for the purchase from it of $2,100,000 of series
B equipment trust certificates due annually on Aug. 26
from 1959 to 1973.
Probable bidders: Halsey, Stuart &
Co. Inc.; Salomon Bros. & Hutzler.
March 24 it
Joseph Light & Power Co.
April 15 it
Bids will be received by the company up to noon
be
soon
as
bonds,
Proceeds—To build pipe line system to
an
a
}ast October:
body & Co.; Equitable Securities Corp., and Shields &
(jointly); Lehman Brothers; Merrill Lynch, Pierce,
announced
unsecured notes and common stock.
cost about $111,- 7
000,000.
Underwriters — Stone & Webster Securities ;
Corp. and White Weld & Co., both of New York.
•
mortgage
Proceeds—To refund
mortgage bonds sold
Co.
that this subsidiary of
Tennessee Gas Transmission Co. has applied to the Fed¬
eral Power Commission for permission to issue first
it
24
of first
amount
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kidder, Pea¬
Midwestern Gas Transmission Co.
March
—To
and
($137,000,000 in 1958). Underwriter-rTo be determine^ by competitive bidding. Probable bid¬
ders— Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
rdans to offer to bona fide residents of
California 10,00 shares of capital stock (par $1). Price
—$10 per shar,*, less an underwriting discount of 8l/2%.
sell
company
bonds
in
Master Fund,
ment
of
tal
ton, Mass.
Jan.
.reported
amount
part of this year or early 1959. Underwriter
For bonds to be determined by competitive bid¬
Proceeds
^Standard Oil Co.
approximately $7,500,000
—
(Indiana)
was announced company has under considera
long-term financing through a public offering of ap
July 30 it
agement intends to negotiate
Hackensack Water Co.
underwrote last
■
was
ding. Probable bidders—The First Boston Corp. and
Halsey,Stuart & Co. Inc. (jointly); Blyth & Co., Inc.; (2)
For preferred stock: Blyth & Co., Inc. " ? '
"
\ f"
Keystone Custodian
present
it
from additional financing will be required for construc¬
tion expenditures for the balance of this year. The man¬
Sept. 15.
March
York.
March 24 it
in year.
Gulf Interstate
the
Underwriter—Lehman Brothers, New
■..
jv.;:
Fund, Series B-l.
Montana-Dakota
plans to issue approximately $18,000,000 of
government insured bonds secured by first preferred
ship mortgages on the new "Santa Rosa" and "Santa
Paula." The financing will comprise two issues of $9,000,000 each. Underwriters—Merrill Lynch, Pierce, Fen¬
ner and Smith; Paine, Webber, Jackson & Curtis; Smith,
Barney & Co.; White, Weld & Co.; and F. Eberstadt &
Co., all of New York. Offerings—"Santa Rosa" offering
expected in August; and "Santa Paula" offering later
Company
June 5 it
of
continuation
a
Thursday, July 31, 1958
latter
—(1)
Bond Fund
announced that this proposed fund will
March
reported that company plans to issue
$11,000,000 of first mortgage bonds later this year. No de¬
cision as yet has been made as to the procedure the com¬
pany will follow.
Proceeds—For repayment of shortterm notes and loans and for construction program.
Underwriter — If determined by competitive bidding,
probable bidders may be Halsey, Stuart & Co. Inc.;
Merrill Lynch, Pierce, Fenner & Smith, and White,
Weld & Co. (jointly); Blyth & Co., Inc.; The First Boston
Corp.; Lehman Brothers.
April
the
Midland Enterprises, Inc.
Gas Service Co.
was
be
20
undetermined
Keystone Tax-Exempt
July 14 it was
Co. (9/23)
July 17 it was announced that the company plans to
and sell not more than 200,000 shares of pfd. stock.
March 24 it
March
Hilliard & Son.
Blyth & Co., Inc. and J. J. B.
.
Pacific Gas & Electric Co.
Kentucky Utilities Co.
16 company stated it will sell bonds and/or com¬
mon
stock in the last quarter of 1958.
Underwriters—
June
Shields
...
proximately $200,000,000 of debentures. Proceeds—Prob
ably for expansion, working capital and other corporate
purposes.
Underwriter — Morgan Stanley & Co., New
York. Offering—Expected in the early Fall.
line of credit with
a new
tion
a
of banks and expects to sell equity securities later
this year or in early 1959, depending upon prevailing
market conditions. Underwriter—For any common stock:
group
*
The First Boston Corp., New York.
Standard Oil Co.
Norfolk & Western Ry.
July 2 it
(8/20)
Bids are expected to be received by the company on
Aug. 20 for the purchase from it of $2,340,000 of series
D equipment trust certificates. Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
North Carolina
construction.
Refining Co. stock.
10 it
Illinois
Gas Co.
*
announced company
will sell this Sep¬
$20,000,000 mortgage bonds providing new gas
supply from Northern Natural Gas Co. is approved by
Federal Power Commission. In event this project has to
be deferred, company will likely issue $10,000,000 bonds
later in the year.
Company's 5-year construction pro¬
gram calls for $90,000,000 outlay.
Underwriter—To be
determined hy competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; First Boston Corp.; Glore,
Forgan & Co.; Blyth & Co., Inc.
was
tember
★ Pacific Automation Products, Inc.
July 28 it was reported that the company plans early
registration of about 125,000 shares of common stock.
Underwriter — William R. Staats & Co., Los Angeles,
Calif. Offering—Expected around Sept. 15.
,
Thiokol Chemical Co.
it
July 21
'
additional
was
reported that the company plans .some
Underwriter—Kidder, Peabody &
financing.
Co., New York.
Union Electric Co., St. Louis,
March 28
Northern
June
registration of approximately 10,850,000 shares of capital
(par $7), now authorized but unissued. The com¬
pany contemplates issuing approximately five shares of
Standard stock for each four shares of Humble Oil. &
Underwriter—Kidder, Peabody & Co., New
York.
(New Jersey)
announced that the company plans early
stock
Natural Gas Co.
July 21 it was reported that the company plans early
registration of about $$,000,000 in new securities/prob¬
ably debentures and common stock to be offered in units.
Proceeds — For repayment of bank loans and for new
was
it
was
announced
Mo.
plans to. market
in the latter part of
1959. Proceedsr—For
company
about $30,000,000 of common stock
this year or in the first quarter of
construction program.
Venezuela
.
(Government of)
July 1 the Government announced that Kuhn, Loeb &
Co. and
Kidder, Peabody & Co., both of New York, have
as financial advisors to develop a financial
been selected
for the country. As a first step in the. pro¬
short-term credit is being negotiated between the
government in cooperation with the two investment
banking firms and a syndicate of commercial banks in
the United States, Canada and the United Kingdom.
The three institution which are to head this syndicate
program
gram a
.
The First National City
York, and Bank of America National Trust
Savings Association. The Chase Manhattan Bank will
are
The Chase Manhattan Bank,
Bank of New
&
Volume 188
Number 5764
.
The Commercial and Financial Chronicle
.
.
35
(435)
A
the fiscal agent
be.
for the credit. The amount of the
financing involved is in the neighborhood of $250,000,000. The purpose is to restore government balances
which have been reduced by the repayment of excessive
short term obligations previously incurred.
Wisconsin
&
Power
Peabody & Co. and Salomon Bros. & Hutzler (jointly);
First Boston Corp.
Offering—Not expected until
late in 1958 or early in 1959.
*
new
Wisconsin Public Service Corp.
was announced company
plans to sell about
$12,500,000 of new securities in the last half of the cur¬
rent
year.
The type of securities has not yet been
March 17 it
was announced that company plans to issut
$10,000,000 of first mortgage bonds. Proceeds—
and sell
decided
To retire bank loans and for construction program. Un¬
derwriter —» To be determined by competitive bidding
Haisey, Stuart" & Co. Incg Smith
Barney & Co. and Robert W. Baird & Co., Inc. (jointly)
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly): White, Weld & Co., Kidder
the
ury's
tions
had
coat-tails
each
time
up
the
it
the
if
At
opera¬
rate,
sticks
its
got
recently
its intention
ing
government
an
well
corporate new issue
held up better
mar-
market
to be headed into the
ears
At
of
egments of the
of
virtually
investment
of
pace
as
slowed
call
for
down
mar-
capital
new
in
breach
the
they
were
to
the
abruptly.
not
been
in
big
The
vestor
Tiany
have
cases
sponsoring
ided
From
held
until
out
the
syndicates have decharges loose.
all indications it appears
hat the
current
is
Bros.
&
Hutzler
American
substantially below the
original offering price.
This
case
is
of
These
especially
true
in
the
public utility obligations.
issues
are
being quoted at
a
point to
utilities,
new
away
from
the
Southern
4*/>s
Railway Co.'s
the exception, in the
are
auction group, ruling at almost
a
point premium in the bid side.
;
quoted
Oil
Co.
Co.
for
debentures early in the Fall.
And Southern California Edison
has
started
the
Co.
machinery
offering,
looking toward the
through competitive
next
Bids
will
be
asked
still
tive
of
number
a
for
is to reimburse treasuries
funds
already spent.
And
as
CGS
share
Underwriters
offering
August prob¬
Laboratories Inc., is due
shares
scheduled
"rights."
on
debt issue is Min¬
Louis Railway's
St.
trust
certificates
roster for
now
m
the
Tuesday bidding.
With Thomas
Hughes
(Special to Tiib Financial Chronicle)
is
Ohio—Josep^^.
with Thomas J.
now
Hughes & Co., First National Bank
go down in the
60,000
Typograph
shares
CINCINNATI,
records,
marking the trough in the new
offer
common
Ludlow
106,156
has
McGlinn
Slim Pickings.
The first week in
the
one
unit.
$2.1 million offering of equipment
late
month.
ably will
per
The only
neapolis &
bidding, of
$50 million of first and refunding
substantial fraction
above the initial price.
Evidently industry still feels
stock.
(In¬
diana) which is contemplating the
raising of something like $200
million through public
offering of
a
Need for Capital
Price—$2
both of Nashville, Tenn.
Latest to make known such in¬
bonds.
And U. S. Steel's 4% debentures
are
& Co.,
Corp
tentions is Standard
around four points in several in¬
Getting
expected in units of
—Clark, Landstreet & Kirkpatrick, Inc. and W. N. Estes
(jointly)
Securities
are
of
to
common
Building.
He was formerly with
Ellis & Company.
Greene & Ladd Adds
(Special to The Financial Chronicle)
DAYTON, Ohio
Mack
is
Third
with
—
James M.
Greene
National
members of the
Bank
&
Ladd,
Building,
New York Stock
Exchange.
of
underwritings. Where these
to market via the competi¬
came
speculative fringe which
temper of the in¬
best illustrated by
experience
recent
turn their
to
and
market is
course,
Ruling at Discounts
hurry
soak up recent offerings, and in
any
Co.,
rants, which
and one-half warrant.
market, two of them equities.
Certainly "institutional investors
ave
&
tune
$1.1 billion of bonds while the
!
o
★ Wizard Boats of Tennessee, Inc.
July 28 it was reported that the company plans an. offer¬
ing of 150,000 shares of common stock and 75,000 war¬
com-
was completing its latest
need for raising additional
issue market for the current
year.
capital
refinancing chore, seems to have
Certainly there is nothing at the
in a large
way despite all the talk
withdrawn from the firing line at'
moment to foreshadow
any
least for the time being. Many of slowing down in expenditures
change in the picture.
Treasurys touched lows for the for new plant, modernization and
Three lonely issues are slated
year this week.
new
equipment. Some of it, of for
all
et it is just as well perhaps that
he
going to "bale"
appears
by
Treasury
Considering the rather unsatisbehavior
was
it
determined
rate the Federal, which
any
stood
sum-
doldrums at last.
"actory
out,
as
mistaken.
sual, from a volume standpoint,
'uring the month just ending apner
bills,
as
them
than
-
of support¬
through the purchase of bonds
which
Salomon
and
Federal., stances.
the
nounced
The
be
discounts ranging from
speculators
that
which
Reserve,
et
Co.
into selling.
these
Underwriter—To
Loeb
Treas¬
any
market
runs
impression
the
&
Kuhn,
of
realized.
head
And
rities
considerably larger than
was
been
the
:
refinancing
recent
on.-
petitivqjbidding. Probable bidders: (1) For any bonds—
Halsey, Stuart & Conine.; White Weld & Co.; The First
Boston Corp.; Kidder, Peabody &
Co.; Merrill Lynch
Pierce, Fenner & Smith; Eastman Dillon, Union Secu¬
,•
Probable, bidders:
rode
|
March 4 it
Co.
Light
(jointly). (2) For any preferred stock—Merrill Lynch,
Pierce, Fenner & Smith; Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities &
Co., (jointly); Leh¬
man
Brothers; Kuhn, Loeb & Co. and A. C. Allyn & Co.
Inc. (jointly); The First Boston Corp.;
White, Weld 4k
Co.; Kidder, Peabody & Co
The
bidding
process
the
FOR HARD TO FIND
current
QUOTATIONS
SUBSCRIBE TO OUR MONTHLY
ontinued
from
8
page
Dealer-Broker Investment
BANK A QUOTATION
Recommendations & Literature
RECORD
brief
analyses
of
Penn
Dixie
Cement,
Virginian
Railway
PMleo Corp.
and
Eastern Gas & Fuel Associates—Data—Herbert E. Stern &
52
Wall
WE GIVE
Co.,
Street, New York 5, N. Y.
Hanover Bank of New
York—Bulletin—Laird, Bissell & Meeds,
Broadway, New York 5, N. Y.
International Telephone & Telegraph
Co.—Analysis—Harris,
Upham & Co., 120 Broadway* New York 5, N. Y.
J-V-M Microwave Company—Bulletin—Stanley Heller & Co.,
STOCK EXCHANGE QUOTATIONS
120
„
30 Pine
AMERICAN STOCK EXCHANGE
DETROIT STOCK
EXCHANGE
NEW YORK STOCK
PITTSBURGH STOCK EXCHANGE
Petrochemicals
Canada
of
Ltd.
—
Analysis
—
Analysis — Reynolds & Co., 120
Broadway, New Yark 5, N. Y. Also available are compara¬
Oil Stocks.
—
GENERAL
Street, New York 5, N. Y.
Also available
are
&
available is
Electronics
Co.,
a
14
Corporation
Wall
Stret,
memorandum
on
—
New
Memorandum
Raytheon Manufacturing Co.
Wall Street, New York 5, N. Y.
Peabody
<
-
&
•
PUBLIC UTILITY STOCKS
•
RAILROAD BONDS
FEDERAL LAND
•
RAILROAD STOCKS
FOREIGN GOVERNMENT BONDS
•
REAL ESTATE BONDS
INDUSTRIAL BONDS
•
REAL ESTATE STOCKS
INDUSTRIAL AND MISCELLANEOUS STOCKS
—
Co.—Memorandum—Kidder,
PUBLIC UTILITY BONOS
EQUIPMENT TRUSTS (RR.)
Woodcock, Hess, Moyer &
Co., 123 South Broad Street, Philadelphia 9, Pa.
Purina
DOMESTIC
•
EXCHANGE SEATS
Analysis — Shcarson,
5, N. Y.
Also
York
Corp.—Analysis—John R. Boland. & Co.,
Incorporated, 30 Broad Street, New York 4, N. Y.
—
MUNICIPAL BONDSCANADIAN
CANADIAN
Precision Transformer
Quaker Oats Co.
•
DOMESTIC
memo¬
randa on Allied Mils Inc. and Thatcher Glass Manufacturing.
Bell
QUOTATIONS
BANKS AND TRUST COMPANIES-
^Laboratory for Electronics, Inc.—Analysis—H. Hcntz & Co., 72
Hammill
EXCHANGE-BONDS
Associates, 32 Broadway, New York 4, N. Y.
Corporation
tive figures on
17
PHILADELPHIA-BALTIMORE STOCK
MIDWEST STOCK EXCHANGE
John H. Maher
Ralston
EXCHANGE
Street, New York 5, N. Y.
Johns Manville
.Packard
PACIFIC COAST STOCK EXCHANGE
EXCHANGE
Lake
Jefferson
Wall
NEW YORK STOCK EXCHANGE-STOCKS
BOSTON STOCK
•
BANK
BONDS
INSURANCE STOCKS
Co.,
UNITED STATES GOVERNMENT
SECURITIES
•
INVESTING COMPANIES SECURITIES
UNITED STATES TERRITORIAL BONDS
;
Republic Steel Corp.—Report—Thomson & McKinnon, 11 Wall
Street,
New
Pennsait
York
Chemicals
5,
N.
Also
Y.
Corp.
and
an
William
II.
Rorervlnc.—Analysis—Loewi & Co. Incorporated,
Street, Milwaukee 2, Wis. Also available is
analysis of Wisconsin Power & Light Company.
225" East
an
L|d., Nehi Corporation, and Pepsi Cola Co.
•
CALL LOAN BATES
•
•
DOW, JONES STOCK AVERAGES
•
SECURITIES CALLED FOR REDEMPTION
•
Industry with particular reference to Canada Dry Corpora¬
tion, Coca Cola Corporation, Coca Cola Bottling Co. of New
York, Drewrys
OTHER STATISTICAL INFORMATION
available is a report on
analysis of the Beverage
FOREIGN EXCHANGE
•
TIME LOAN RATES
•
MONEY MARKET
•
VOLUME OF TRADING
Mason
Russell
Industries Limited
Buletin
Ross, Knowles & Co.
Ltd., 25 Adelaide Street, West, Toronto; Canada.
Safeway Stores, Incorporated — Analysis — Laird, Bissell &
Meeds, 120 Broadway, New York 5, N. Y.
-
—
Safway Steel Products, Inc.
207
—
—
Report
—
Equipment Company
Analysis — Stewart-EubanksMeyerson & Co., 216 Montgomery Street, San Francisco 4,
.
C®
WILLIAM B. DANA CO.
25 PARK PLACE
NEW YORK
7, N. Y.
wish
subscribe
•
Milwaukee Company,
East Michigan
Street, Milwaukee 2, Wis.
South Porto Rico Sugar Co.—Analysis—Peter P. McDermott &
Co., 42 Broadway, New York 4, N. Y.
Victor
PRIME BANKERS' ACCEPTANCES
—
SUBSCRIBE
TODAY
I
for
D
one
to
year
to
the
Bank
&
for the sum of $45.
Name
Calif,
Westinghouse Electric Corp.
—
Memorandum
—
Address
Green, Ellis &
Anderson, 61 Broadway, New York 6, N. Y.
Wilson & Co.—Memorandum—McCormick
http://fraser.stlouisfed.org/
Salle Street, Chicago 4, 111.
Federal Reserve Bank of St. Louis
.
-
& Co., 231
South La
|
City-
Zone
.
State.
Quotation
36
The Commercial and Financial Chronicle
(436)
Selected Anier. Slis.
Eaton & Howard
Over
Howard
&
Eaton
released
assets of $101,215,167, a new asset
high in the fund's 27-year history.
Charles
F.
of
Wellington Reports
$105 Million Assets
Eaton.
Jr., Chairman
of the fund's trustees, told share¬
holders that
the sharp
increase
of $20 million was clue in part to
sales
Selected
to
shareholders, reports
25,000
over
By ROBERT R. RICH
Fund
Stock
report,
shares
new
which
were
million
shows
June
on
7%
that
common
the fund
of
78.5%
30, 1958, a reduction of
the beginning of the
since
an
Wellington
all-time high of
June 30, an in¬
million during the
past six months, it was reported
by Walter L. Morgan, President,
in a semi-annual report sent to
crease
totaled
at
the
of
assets
were
$710
Report
Among
the
\
eliminated
Total
Fund
month
than in any similar sixperiod.
Asset value per
share increased 11% from $18.14
at Dec. 31, 1957, to $20.2.9 on June
.30, 1958.
Ameri¬
can Smelting & Refining, Atlantic
City Electric Company, Ohio Oil
Company, St. Regis Paper Com¬
pany, and U. S. Foil Company "B."
ended June 30, 1958, were:
Cain in First Half
greater
stocks
Up in
First Half-Year
$100,000,000
semi-annual
Assets
Mutual Funds
Stock Fund Assets
on
of $105
were:
stocks
period
common
this
during
Southern California Edison
Company, Pacific Gas & Electric
Continental Oil Com¬
pany, Beckman Instruments, Inc.,
Company,
Hercules Powder
and
Company.
principal additions
were:
Royal
shareholders.
Dutch Petroleum Company, Con¬
About
half
this
increase
re¬
tainer Corporation, A m e r i c a n
sulted
from
the
higher market Telephone and Telegraph Com¬
value of the fund's investments
pany,
General Motors Corpora¬
and the other half from record
tion, and Sears Roebuck Com¬
purchases of Wellington shares pany.
by
investors.
The
number
of
Among the principal reductions
Wellington shareholders (located of common stocks were: General
in every state and many parts of Electric
Company,
Consolidated
Among
of
the
stocks
common
American
Shares,
a
fund, reports
total
net
of $70,209,511 on June 30,
mutual
assets
an
increase
of
$59,805,980
of
17.6%
Dec.
at
assets
over
31,
.
.
Boeing,
.
Thursday, July 31, 1958
4,000
CBS
"A"
and
"B",
Ex-Cell-O, 2,200 Federated
Department Stores, 1,500 General
Finance, 3,000 International Min¬
2,000
erals,
5,500 Louisiana Land
&
Exploration, 10,100 North Ameri¬
can
Aviation,
4,500
Northern
Indiana Public Service, 16,200 Pan
American, 5,000 Parke Davis, 3,000
Trane, 3,000 Youngstown Sheet &
Tube.
1957.
It eliminated from the portfolio
Allied Chemical, Aluminum Ltd.,
shares, as well as total
Amerada, American Airlines,
net
assets, reached
new
highs. Combustion
Engineering,
Con¬
Outstanding shares at June 30 of tinental
Oil, Douglas, Masonite,
8,536,574 compare with 8,001,847 National
Cash,
Rohm &
Haas,
at Dec. 31 and 7,609,962 a year
Skelly, Superior Oil, Thompson
ago.
Products, Zenith.
Reductions in
At
June
30
common
stocks prior stock holdings include sales of
represented 94.6% of assets, cor¬ 4,400 Allegheny Ludlum, 2,000 Alporate bonds and short-term notes lis-Chalmers, 5,000 American
1.3%,
U.
S.
Governments
and Metal Climax, 8,100 Associates In¬
cash 4.1%. The largest holdings in
vestment, 5,440 Babcock & Wilcox,
common
stocks were oil
15.2%, 5,000 Bristol-Myers, 8,000 Chry¬
electric utility 11.4%, steel 9.7%,
sler, 2,000 Food Machinery, 3,000
electrical & electronics 5.2%, rail¬
Ford,
1,500 Goodyear,
3,500
road 5%.
Hercules Powder, 5,630 Jones &
Edward
P.
Rubin,
President, Laughlin, 5,800 Merck, 2,500 Ohio
reports to shareholders: "Numer¬ Edison, 10,000 Socony Mobil Oil,
ous
e n c 0 u jya g i ,n, g
.economic 2,000 Tennessee Gas Transmission.
Number of shareholders
and out¬
standing
Balance of fund was in
Governments, short-term
notes, and cash. Largest common
Stock holdings by industries were
oil (15%), power and light (9%),
also reached a new Natural
Gas
insurance (8%), chemical (5%), the world)
Company,
Texas 'straws' currently give substance
high of 248,000.
and natural gas (4%).
Companj', Merck and Company, to the hope that the business
During the same period the net Inc., and Beneficial Finance Com¬
recession may have approximatedChanges in investment holdings
asset value
of each
Wellington pany.
'
^
'
or
during the second quarter include
passed its low point
we
share
increased
from
$11.56 to
new
seem
to
be passing out
purchases
in
Fiberboard
of the
$12.61, a gain of 9.1%.
Paper Prod.,
Ohio Oil, Pacific
period of hopeful forecast into one
The net assets
of Istel Fund
Commenting
on
Wellington's
of improving factual development. increased to
Lighting, and Sprague Electric.
$12,210,896 as of June
investment program, Mr. Morgan
Additions to present holdings in¬
With business indicators giv¬ 30
compared
to
$9,878,000
for
year.
U.
S.
.
Is lei Fund Records
_
.
Net Asset
.
.
High
Parker Sees Next
clude
British
American
Oil
and
Parke-Davis. Eliminated from the
portfolio
American
were
Can,
Conn. General Life Insurance and
Cerber
Products.
A
decrease
in
holdings also took place in Conti¬
nental Can, Corning Glass Works,
Dresser Industries, Florida Power
& Light and U. S. Steel.
Eaton & Howard Balanced Fund
.semi-annual
report released to
shareholders shows assets
26,900
stated
that
the
at
end
of
the fund had about 63%
diversified in 136
sources
stocks
The
in
June,
of its
common
different
28
balance
industries.
the
was
of
fund
Boon Generated
in
Chairman
of
During the first six months, the
fund moderately increased its in¬
which
for
trade.
corporate bond holdings.
fund, while 13% was in¬
in preferred stocks,
14%
corporate bonds, and 13% in
vested
in
U.
S.
notes
Governments,
and
cash.
stockholders
oil
(17%),
by
industries
power
insurance
were
and light (12%),
(5%), banking
(3%).
steel
and
short-term
Largest common
(4.5%),
selected
to
Staff
W.
ANGELES,
Calif.—James
Whiting has been added
staff
cf
to the
Wedbush
and
Company,
Playa del Rey. He
was
previously
with
Fairman
&
Co.
steel
were
was
made in
oil stocks
and
attractive
A
further
of
parts,
companies,
considered
values.
that
long-
increase
leading international
and
moderate
a
reduc¬
tion in domestic producers.
"The
principal
reductions
in¬
the
drug, electric and of¬
fice equipment stocks that seemed
to
(Special to The Financial Chronicle)
LOS
automobile
and
paper,
stocks
common
term
cluded
Wedbush Adds
in
have
discounted
near-term
earnings prospects. Some electric
utility stocks that had advanced
sold
were
because
their
yields
considered too low and part
of the proceeds invested in other
utilities considered better values.
These
changes resulted in
in
the
electric
a
re¬
utility
group."
Among the Wellington Fund's
new investments in common
incorporated
for
stocks
Investors
FUTURE
INCOME?
the
belief
during
the
second
anticipates there
periods of
the
been due to defense
spending and
years, the boom
well
stock' values. But
next
ten
in world trade due to the
In
regard to a trade war the
Chairman believes that the U. S.
will
have
to
step
up
undeveloped countries
I he
rest
believes
of
the
Free
foreign
its
aid
well
as
World.
policy
to
is
as
He
gov¬
erned
will
six
months
the
by necessity and the public
demand it.
Concerning
the
Mideast
crisis,
Mr. Parker added that this inter¬
ruption points
up
the need for in¬
creased trade even more
In
may
enthusiasm with respect to
as
the
on
business
term
near
believes there is
war.
...
be tempo¬
uncertainty as
rary
the
encouragement.
score
of
outlook, it
for
reason
much
That
population
decade
is
should
expected.
also
witness
industrial fruition of the huge re¬
search
expenditures
of
recent
The company's investment
policies are based upon the con¬
years.
afford."
the
but
holdings in the Middle East total
about 3Va%
cludes that
to 4%>.
a
Thus
ne
con¬
shut-down of Middle
East oil would tend to
help their
investments.
Incorporated Investors has added
to
its
portfolio
investments
in
the number of
Atomic Fd.
mutual fund
invested in
li«t of securities
stocks
the
that
near-term
limited
are
long-term
in
risks
relation
in
to
opportunities they
Reports
Investment Income
I.
Steers, Jr. shows
investment
In the last three months Selected
American added these
new
stocks
pharmaceuticals,
insurance com¬ Porcupine, 3,000 RCA, 5,000
panies, coal and forest product Royal Dutch. Increases in prior
companies. Reductions were made stock holdings include 5,000 Ab¬
in
railroads,
although
certain bott Laboratories, 2,400 Anaconda,
railroad investments are still be¬ 6,400
Bendix
Aviation,
4,000
ing held since they are classified
as
special situations.
of
increase of
10 V2 % for
Highlights of the report include
prediction that the conquest of
space will depend on nu¬
clear propulsion.
An astronautic
chart is featured
showing the
a
outer
—
range
of current missile
probable
systems
of
ranges
and
income
a
ing intergalactic
space.
The fund's management reports
that
in
and
of
on
June 30, 1958 investments
companies engaged in missile
rocket
its
work
comprised
The
report
contains
showing the results of
investment
of
$10,000
a
an
on
the
in
ing
June
30,
1953.
Total
on
FRANKLIN
years
Keptone
Keystone Fund
CUSTODIAN
.Incorporated
for
CURRENT
Income Fund
Custodian Funds
of Canada, Ltd.
FUNDS
,
*
who>>.
•W.
curront
1.
,arO«
income
■»•!' k.
ob.oin.d
Covering all classes of
lecunties, each Fund with
•pacific
investment
A
a
purpose
For RESERVES, INCOME
•r
A prospectus
on
Prospectus from
investment dealer.
Boston, Mass.
ican
TLe
50
local investment dealer
FRANKLIN CUSTODIAN FUNDS, INC.
64 Wall Street, New York
5y N. Y.
or
mation
Keystone Company of Boston
Congress Street
seeking
industry.
Please send me, without
The Parker Corporation
200 Berkeley Street
about this series of Mutual Funds
CAPITAL GROWTH in the
expanding Canadian Economy
your
now
possible growth and income through investment in Amer¬
each
fund is available from
your
possible GROWTH
Find out
fully managed
Company'
seeking long-term
'
Mutual Investment
Boston 9, Mem.
obligation, the Prospectus and other infor-
concerning the Franklin Custodian Funds.
I
I
NAME.
[
ADDRESS-
1
rrrv
7HNP
chart
initial
Jan.
1,
1954 for thfc 4V2-year period end¬
Get the facts
ahead.
40%
total assets.
capital
of
future
nuclear propulsion systems reach¬
to its
portfolio: 7,000 shares C.I.T.,
7,100 Container Corp., 5,000 Deere,
1,000
Freeport
Sulphur,
5,000
Homestake, 5,000 Kennecott,
5,000
Lockheed, 2,000 Mclntyre
an
income
the year just ended.
and
selected for
growth
possible
shares
Gain of 10% in
tttokliM 1925
A
INCOME?
in
415,166 from 383,394 six months
'long-term
The
upward
of
surge
oil
investments
increase
The annual report of
Atomic
we are primarily
Development Mutual Fund, Inc.
interested, is coming closer. 1960
is only 18 months away—it begins just released by Chairman Merle
Thorpe, Jr. and President Newton
a decade in
which a new
viction
gas
prior.
to
$29.81
as
for
six
months
An added record was the
$25.76
future,' in which
strongly.
Incorporated Investors has ap¬
proximately 22% of its assets in
and
against
half, this management
has
ten
The net assets per
increased
earlier.
fourth quarter of last year.
world
last
31, 1957.
share
to
stocks
his
the
Dec.
have risen from their levels of the
eye on
sharp
were
duction
NVfSTING
they
not
that
of
cold
made
has
of
years
boom
will be
also
Parker
that
this
may
mild, with repeated evi¬
inflationary risks, it is
surprising that stock prices
dence
in
preferred stocks and
government bonds and reduced its
"Since the first of the year,"
$180,210,593, an increase of
Mr. Morgan continued, "the fund
$18 million since Jan. 1, 1958.
increased its investment in some
Asset value per share increased
»% from $19.67 at Dec. 31, 1957, bank and telephone common
stocks offering good yields from
to $21.58 on June 30, 1958.
dividends amply covered by esti¬
Report shows that on June 30,
mated earnings. An increase was
1958, common stocks totaled
60%
is
It
A.
that
recession
II
prove
Investors
record
evidence
Postwar
benefit from
a
should
of
the
the
keeping
are
over
of
William
Incorporated
stated
in
tentative
third
By World Trade
good grade preferred stocks, cor¬
porate
bonds and governments.
vestment
...
ing
re¬
STATF
value
Volume 188
Number 5764
.
The Commercial and Financial Chronicle
.
.
(437)
with
all
would
the
distributions
have
latter
New
grown
reinvested
to
$14,686
date.
securities purchased
March 31, 1958 were:
Tinto Mining Co.
since
$25,000 The
Rio
Ltd.,
on
5%
debentures
of Canada,
'63
without
was
established
and
currently
61
months
ago,
At New
types.
Gas Industries Fd. Of
Reflects Oil and
debentures '76; and $300,000 Merritt Chapman & Scott, 4x/2% con¬
Natural Gas Rise
vertible
subordinated
deben-
'75.
...
Important
share
additions
in¬
cluded 5,300 International Miner¬
als & Chemical Co.; 4,400 Bab-
•The
"new
look"
in
seen
the
rapidly
improving
and
oil
Assets Climb
Net Assets Gain
High
New
Putnam Fund of
reports for the quarter
share
per
from
industry $11.42 to $12.09.
The
total
905,974
March 31,
on
number of shares
market
value
of
all
number
of
1958.
Both
outstanding and
shareholders
reached
natural gas industry combined to
the fund's investments on June 30 new highs as of June
increase the per share net asset
30, 1958.
exceeded cost by
Co.; 6,300 Ameri¬
$29,228,600, com¬ Fidelity Fund now has nearly 70,value of Gas Industries Fund 13%
can Machine & Foundry
Co.; 6,800 over the
pared with $22,643,600 at the end 000 shareholders, an increase of
net asset value at the
Combustion
of
the
Engineering,
last
Inc.; end of the
quarter. - Common 12% over a year ago.
fiscal year, March 31,
11,800 Vitro Corp. of America.
stocks
Net asset value as of June
represented
60% of the
.
eliminated
June
in
30 quarter were: 16,600 Homestake
and
on
23%
Dec.
over
the net asset value
31, 1957.
James H. Orr, President of Gas
fund's total investment, compared
with 61% on March 31.
Mining Co.; 13,200 Rico Argentine
Industries
Mining Co.
\
25%
Reported by
Washington Mutual
fund
now
of
cess
increase
In
has
of
fund
he
stocks
investments
which
has
and
an
25%.
that
5,000
over
holds
ex¬
is
announced
now
shareholders
mon
in
assets
approximately
addition,
the
total
$12 million,
71
com¬
in
its portfolio.
All
of this fund are re¬
strong
improved trend has set in. One of
cession in good fashion.
the most
confidence has remained high and
tangible signs of this, he
said, is the increase in allowable
production in the state of Texas.
He then stated that the
corporate
made
managements
strong
a
dividend
growing face
demand for natural gas is nation¬
in
effort
h
to
a v e
sustain
rates.
Undoubtedly we
further disappointments
some
this
Consumer
direction
wide, and that major expansion is and
earnings
planned for this year and next
pected vigor.
by the gas industry.
tude
of
unless
business
with
recover
unex¬
toward
During the past quarter, the maintaining dividend stability has
following major portfolio changes undoubtedly enhanced the invest¬
were made by the fund: new com¬
ment quality of common stocks in
mitments
were
Ashland Oil & Re¬
fining, Central Illinois Electric &
Gas,
Kern
County
Land,
and
the minds of investors."
New
the
stock additions to
common
fund
-
of Di¬
nated debentures.
of
1he
Advisory Board:
Robert C. Baker, Banium L. Colton,
Leo
Goodwin,
Robert
P.
Smith, William T. Vandoren, Dr.
Charles S. White, Roger J. Whiteford and Davis Weir.
The
New
Per
share
net
England
from
$18.92
asset
value
Fund
of
increased
Dec.
Vice-Presidents—James H. Lemon
and
tribution
on
figure
equivalent
elected: James M. Johnston, Chair¬
man
of the Board and President;
J.
D.
on
Needham; Executive
Bernard
J.
Nees;
Treasurer, Harvey B. Gram, Jr.,
and Assistant Secretary and As¬
gain per
period. The
sistant
was
Secretary,
Treasurer, Ralph S. Rich¬
I. P. C. Sales Gain
Sets
Jan.
30.
The
latter
higher
Quarterly
value
of
the
Fund
Net
Planning Corporation
the first three months of this year.
unrealized
portfolio
appreciation
securities
in
increased
44.4%
increase in the
active
I.
over
the
C.
number
contractual
total
12
a
of
plans
months
ago.
I. P. C. plans in force on June 30
49,388,
compared
1958
to
$1,771,000;
and
net
30,
1958,
the
assets
of
investment
this
trust
fully
were
K. Howie have become associated
with Shields &
Company, 44 Wall
Street, New York City, members
of the New York Stock
Mr.
Rizzuti
in
the
Exchange.
One of the nation's largest mu¬
tual fund retail organizations, the
of
has
more
had
an
overall
de¬
research
as
Woolrych & Currier Add
of the 1953 first quarter.
firm
value
set
$28.41
volume
than $232,000,000 since it
June
on
30,
1957
was
share.
per
assets
share
per
stock
92.6%
on
investments
of the fund's
June
on
30,
compared with 85.5%
1957.
1958,
on
as
Dec. 31,
today
and
in
Most
of
President*
mid-year
his
the gain in
investment
Randolph noted, re¬
appreciation in the
market value of Tri-Continental's
assets,
Mr.
sulted
from
stantially less than in the corre¬
sponding period of 1957.
The
chairman
rate
of
pointed
exercise
securities amounted to 1.1%
pared with 6.0% on Dec.
com¬
31, 1957.
the
At
lowest
June
in
the
warrants
just ended
three
over
30, there
in
wa9
years.
6,850,293
outstanding; and
shares
common
that
out
of
the three months
Net cash and U. S. Government
were
the remaining warrants numbered
Massachusetts Life
1,164,012.
Fund Net Assets
share
Mid-year
assets
per
common
outstanding increased to
$41.30 from $38.38 at March 31
and $36.42
at the beginning o!
1958, according to Mr. Randolph.
Show 18.1% Gain
Massachusetts Life Fund as of
June 30, 1958, has reached a new
Assets per common
share, assum¬
ing the exercise of all warrants,
to
$37.12 at June 30 from
three months earlier and
high of $40,194,089 in net assets,
Lawrence A. Sykes, President of
rose
the
$32.82 at Dec. 31, 1957. This was
a
gain of about 13% for the six
trustee,
In
announced.
making his semi-annual
port
to
shareholders,
noted that despite
Mr.
re¬
$34.63
months.
Sykes
Net
investment
income
general busi¬
a
totaled
$5,324,664 for the first half of
recession, the fund has con¬
1958.
The chairman
stated that
tinued the steady growth it has
this was an increase from $4,947,enjoyed since it was first offered
194 in the same period of 1957 and
to the public in 1949. The fund's
ness
net
assets
as
of June
marked
30, 1958, in¬
creased 18.1% since Dec.
with
a
new
record
of
31, 1957
2,073,458
shares outstanding. The net asset
value as of June 30 was
$19.38 as
compared
with
$17.57
of Dec.
as
31, and increase of 10.3%.
the
first
time
that
investment income for the
half
year
New
funds
net
initial
exceeded
$5
million.
received
for
common
stock issued upon the exercise
of
warrants were the major factor
in this gain. Mr. Randolph pointed
(Special to The Financial Chronicle)
a
Additions
to
the
portfolio
Carriers
of
assets
defensive
in
were
Gen¬
&
issues,
balanced
by an
stocks
of
a
growth
or
Steel,
preferred and common sockhold-
Carrier,
General
Motors,
Cities
Service,
Halliburton Oil
Well
Cementing, Idaho Power Co.,
Maryland Casualty Co., Merck,
Niagara Mohawk Power, North¬
ern
Natural
Gas, Pacific Gas &
Sinclair Oil and Texas
Co.
Eliminations
from
the
port¬
folio include National Lead, Rayonier and
Thompson Products.
has
become
affiliated
Fidelity
"As
the
second
half
of
a
as
stock
assets
for
at
investments
77.6%
June
of
the
gain
no
was
the
in
market
change
period."
further
chairman
The
stated,
"second
mon
quarter changes in com¬
stock investments continued
Continued
on
1958
page
Affiliated
signs that the downward trend of
business
Because
uncertainties
effect
of
be
may
as
the
slowing, if not
of remaining
Fund
to the cumulative
business
decline
on
and dividends of many
corporations, he added, Carriers
earnings
&
General
"feels
ing
power
such
nities
to
take
adjustments
as
may
A Common Stock Investment Fund
reserve
are
income
buy¬
advantage
of
and opportu¬
before the
occur
SAN DIEGO, Calif.—Frank C. upward trend in business and cor¬
Gregson III is now affiliated with porate earnings is clearly estab¬
Woolrych & Currier, 233 A Street. lished."
objectives of this Fund
possible
long-term
capital and
growth for its shareholders.
Investment
is prudent to
it
continue to maintain
Prospectus
upon
request
Lord, Abbett & Co.
New York
—
Chicago
—
in
policy during
gets under way," Mr. Bullock re¬
halting."
ac¬
investment
30, up from
beginning of
from
There
Inc., Hanna Building.
ported to the corporation's share¬
holders, "there are encouraging
of
the
the
year.
Mr. Randolph
explained,
"this increased in the proportion
of common stock holdings resulted
at
over-all investment
With Livingston Williams
exericse
of
consequence
warrants.
value.
said,
the
holdings.
on
quarter of 1955, was maintained
even
though payment was made
on 2,661,769, or 64%, more shares
primarily
Building.
The 30the common
in
the
first
quarterly rate
stock,
established
75.1%
CLEVELAND, Ohio—Walter W.
Watkins
with John S. Green & Co.,
$5,193,366.
cent
Common
In these cate¬
(Special to The Financial Chronicle)
stocks of com¬
CLEVELAND, Ohio — Frank M.
petroleum
and
Hill, Jr. has become connected
chemical industries were the larg¬
with Livingston, Williams & Co.,
est
he
in
totaling
ers
counted
With John S. Green & Co.
cyclical character.
gories,
panies
maintained
During the first six months, TriContinental
paid
dividends
to
in¬
equal amount in
common
expected to be
throughout 1958.
clude Abbott Laboratories, Armco
(Special to The Financial Chronicle)
Hugh
Bullock,
President,
pointed out that almost one-half
the
Company, incorporated in
'; ;S'
Electric,
Total net assets on June 30 were
of
with partment, and Mr. Howie
34,190 at the end of last year's registered representative.
like period and 45,774 at the close
totaled
$23.27 at Dec. 31, 1957,
gain of more than 15%. Net as¬
eral
managed
P.
1958 from
of
According to I. P." C. President
invested 59% in common stocks
Waiter Benedick, the firm's 2,600
vs.
53% six months ago; 14% in
mutual fund representatives regis¬
preferred stock vs. 15%; and 27%
tered a second quarter volume of
in bonds, notes and cash vs. 32%.
$20,560,529, compared with $16,304,225 during the previous 1958
Two With Shields & Co.
period, and $20,067,705 for the
Walter L. Rizzuti and Ronald
period ended June 30 a year ago.
disclosed
Corporation,
30, 1957.
record quar¬ capital gains realized from sales
of portfolio securities during the
terly sales for the period ended
June 30, 26% higher than during period totalled $177,000. 0n June
also
General
of
closed-end investment company
by $960,000 in the first six months
Benedick
&
share
per
managed by Calvin Bullock Ltd.,
increased to $26.87 on June 30,
June 30, 1958, than
a
year earlier on June 30, 1957,
despite the drastic stock market
the
net
1818.
value
asset
Carriers
a
on
of America reported
Mr.
Net
a
to an 8.4%
share for the six-months'
regained.
Record
Investors
is
Common
amounted to
surance
Policy
$16,945,383
(before deducting
principal amount of debentures)
decline in the second half of
1957, compared with $14,926,614 on Dec.
not all of which has since been 31, 1957 and $17,808,448 on June
ard.
$12
com¬
Chairman
reported
Massachusetts
England Fund Cautious Invest.
Value Increased
31, 1957, to
$20.31 on June 30, 1958, and to
$20.52 after adjusting for a
21
cents per share capital gain dis¬
were re¬
with
share
per
dolph,
letter to stockholders.
versified
New
following officers
pared
$13.11
increase of $21,457,389 from
out, however, that new funds were
Life Fund, a di¬
put
to work in
1957 promptly
management-type trust, upon receipt and that the rate of
is supervised and
managed by the gain in income recorded in the
Massachusetts Hospital Life In¬ first six months
thus cannot be
AdhcrCS tO
rectors reappointed the following
members
was
However, the atti¬
managements
during the quarter in¬
Standard Oil of California.
quired by its charter to be se¬
cluded:
10,000 shares American
Additions to existing holdings
lected from
the
List
of
Legal
Photocopy Equipment Co., 30,000
Investments for Trust Funds in were Gulf Interstate, Laclede Gas, Walter E. Heller Co., 2,200 Kel¬
the District of Columbia.
Royal
Dutch
Petroleum, San logg Co., and 12,000 Southern Pa¬
The shareholders approved re¬ Jacinto, Socony Mobil Oil, Stand¬ cific Co.
newal of the investment advisory ard Oil (New Jersey), and TXL
Eliminations
included:
15,000
contract
with
Capital Research Oil.
shares Alleghany
Ludlum Steel
and Management Company of Los
Decreases in commitments were Corp., 22,000 Cities Service Co.,
Angeles and the business manage¬ made in Anderson-Prichard
Oil, 12,000 Crown Zellerbach Corp.,
ment
contract
with
Johnson, Colorado Interstate Gas, Sham¬ 11,000 General Telephone Corp.,
Lemon & Co.
rock Oil and Gas, Stone & Web¬ 6,500 Kennecott Copper
Corp., 7,-=
Directors reelected for the en¬ ster, and
Martin
Sunray Mid-Continent 500
Co.,
11,000
Phelps
suing year were as follows: James Oil.
Dodge Corp., and 29,300 Texas
M.
Johnston, James H. Lemon,
Eliminated from the portfolio Utilities Co.
George
E.
Allen,
Jonathan
B. were Washington
Water
Power
^
•
0
^
j
Lovelace, and Robert B. Swope.
and Commonwealth Oil Refining
C.aiTierS & Gdieral
convertible
Following the Annual Meeting 6%
junior
subordiof Shareholders the Board
1958,
an
March 31, 1958, both after
capital investment holdings. New fund*
commenting on present busi*
ness
conditions, George Putnam, gains distribution of 40 cents a totaling $2,292,691 received in the
Chairman of the Trustees, said, "It share paid Feb. 10, 1958, and com¬ first six months for
that
the
129,093 shares
oversupply
and
price
pared with $11.72 per share as of of common
seems to us that business is com¬
stock issued upon the
weaknesses in the oil industry
ap¬
Dec. 31, 1957.
exercise of warrants, were sub¬
ing through its worst postwar re¬
pear to be past, and that a
President James M. Johnston of
Washington
Mutual
Investors
Fund reported to shareholders at
their annual meeting that their
30,
30,
March 31 and $38,152,815 from the
start of the year, Francis F. Ran¬
In
Fund, stated in the
Fund's current Quarterly
Report
Total Asset Gain of
High
George
cock & Wilcox
Securities
to
Fidelity Fund quarterly report
Investment assets of Tri-ConBoston
as
of June
30, 1958, shows total tinental Corporation, the nation2*
ended June 30, 1958 increases in net
assets of
$279,011,423. This is largest diversified closed-end in¬
total net assets from $142,345,000 to an
increase
of - approximately vestment
company, climbed to a
a new high of
$153,270,000 and in 11.6% over net assets of
$249,- new high of $341,565,957 at Jun^
net
asset value
continued growth of the
the
Tri-Coiitineiital
Fidelity Fund
Reports 11.6%
$153,000,000
The
warrants; $125,000 American Elec¬
tronics,
Inc.,
5j/4%
convertible
tures
Putnam Fd. Assets
services
nearly
60,000 shareholder accounts of all
37
Atlanta
—
Los Angelea
39
38
(438)
The following statistical tabulations
Indications of Current
Business
latest week
Activity
week
Latest
Aug.
or
Previous
Week
AMERICAN IRON AND STEEL INSTITUTE:
Indicated Steel operations (per cent capacity)
month ended
Week
3
month available.
or
Month
(net
51.0
79.4
3
§1,586,000
'1,546,000
1,376,000
2,033,000
oil
and
condensate
output—dally
6,528,385
6,439,435
6,345,385
July 18
117,450,000
7,607,000
7,522,000
—-July 18
27,509,000
27,808,000
26,469,000
Crude
to
runs
stills—daily average (bbls.)
Gasoline output (bbls.)
Kerosene output (bbls.)
-•
.
(bbls.
average
fuel oil
Distillate
OF
Kerosene
1,804,000
1,508,000
11,266,000
11,807,000
11,317,000
6,944,000
6,575,000
182,169,000
187,973,000
23,738,000
(bbls.)
at
oil (bbls.)
18
25,631,000
25,040,000
at———:——™———-July 18
113,483,000
109,507,000
99,883,000
129,798,000
oil
at
67,199,000
66,155,000
63,596,000
48,314,000
—July 18
29,627,000
CROP
Revenue freight
ENGINEERING
CIVIL
CONSTRUCTION
-—July 19
—
581,817
491,142
627,677
743,359
of cars)—July 19
451,056
404,208
529,767
569,841
U.
Public
and
tUi
Jujy 2<*
24
Bituminous coal
Pennsylvania
S.
BUREAU
and
STORE
COMPOSITE
100
AND
INDUSTRIAL)
RUN
-
-
tZinc
(delivered)
Zinc
(East St.
Straits
7,640,000
"1,370,000
8,915,000
9,796,000
466,000
76,000
544,000
435,000
110
116
117
12,257,000
11,757,000
12,243,000
July 22
'■
279
Z 335
5.967c
5.967c
5.967c
$66.49
38.17
$37.50
$35.17
28.100c
25.175c
24.875c
24.875c
24.500c
23.925c
at
at—
Early
(100
11.000c
11.000c
11.500c
11.300c
23
10.500c
10.000c
10.000c
24.000c
25.000c
Grapes
95.875c
y
^___
—July 29
-July 29
94.750c
95.16
92.54
V
(12
•
States)
states)
(tons)
95.77
99.04
94.12
96.07
92.20
88.13
88.27
85.46
Percentage
of
91.19
91.62
96.69
97.78
98.73
99.36
(tons)
3.01
3.16
AVERAGE
ROUND-LOT
,
=
4.04
:
3.99
ACCOUNT
OF
3.62
on
4.13
4.04
4.00
4.55
4.54
4.30
4.42
4.01
3.96
3.89
Other sales
sales
Total
Other transactions initiated off the floor—
purchases
Short
sales
3.84
3.83
3.79
4.24
402.8
400.6
,398.0
427.3
253,065
249,882
"
255,488
83
48
88
447,215
366,756
round-lot transactions
Total purchases
Short sales
110.31
110.25
109.85
133,774
270,117
;
Personal
Total
264,778
Less
REAL
,
■
Customers'
Dollar value
1,688,870
397,700
234,570
1,324,530
1,008,240
Mutual
1,722,230
1,242,810
1,279,360
265,500
481,540
——
44,500
39,130
414,510
332,190
299,070
459,010
371,320
233,060
531,670
419,094
of
586,250
123,970
567,660
737.655
611,006
691,630
902,715
2,007,364
V
165,060
2,815,800
,
2,394,375
2,996,265
330,320
1,200,171
$55,372,289
Other
894,184
4,469
6,599
7,679
9,709
896,217
$38,883,018
1,074,959
$45,238,603
$50,269,197
294,410
889,715
<
$45,994,118
5
387,660
one-half
,fi!ore; ^In^udes
cent
a
pound.
345Z950
331,080
378,400
387^660
S.
1K240
405,740
_
516,370
$8,897^66
20,225,883
$90,019,083
29,123,149
4,406,151
110,586,783
24,716,998
$1:6,716,189
106,406,076
*73,966,381
fixed charges
4,753.563
-
r
28,519,448
110,17^3
20,567,700
4,180,707
3,983,499
3,984,904
4,295,012
:
24,535,949
equipment)
50,181.644
mo,701.003
49,752.858
1,279,766
47,762,795
27,998,33?
30,108,721
8,352,214
7.86
1,968.876
—
income
-
60,127,337
1
i
.«
15,102,391
/
-
71,671,369
38,070,820
.
common
24,537,760
1.818,626
—
".
i—
U.
1.90
-
350
789,380
10,237,690
10,855,130
814,810
13,169,780
403,490
13,206,140
13,959,160
9,260,960
14.020,950
9,664,450
119.3
-July 22
94.1
$73,296,450
*95.4
112.4
96.2
June
of
30
( 000's
omitted):
'
•
;
"112.7
112.8
112.9
face
at any
amount
time
that
be
may
115.2
96.3
125.7
125.2
126.0
119.1
118.0
on
-
-
-
- --
.
.
public, debt
obligations not
annual
capacity
of
140 742 57a
.
.
$280,000,000
$278,000,000
<•*
275,652,540
101,220
96,756
107,137
Total gross public debt and guaranteed
obligations
1—
Deduct—other outstanding public debt obli¬
$276,444,438
$275,749,296
$270,634,309
430,998
431,923
445,988
$276,013,439
$275,317,373
$270,188,321
3,986,560
4,682,626
7,811,678
'
owned
by
total
outstanding—
of obligations, issuable
under above authority-:————_—,—
UNITED
face
amount
STATES
GROSS- DEBT DIRECT
GUARANTEED— <000's omitted):
of
June
General
r
$270,444,438
balance
,9,749.102
debt
Computed
$266,695,336
annual
rate
—
;
.
30
funds
•-
AND
$275,749,296
,
.6,129,890
on
Net
270,527,171
;
the
*
Balance
125.5
tons
;
....
$280,000,000
276,343,217
As
new
'
„
outstanding
—
1—
106.1
113.8
§Based
$15,813,200
.
,
Total
93.4
-July 22
-July 22
runs.
$86,297,500
—_—J.
GOVT. STATUTORY DEBT LIMITATION
.—As
Grand
*119.3
*<
S. A.—Month of June:
purchase!
Treasury
-July 22
crude
_
64,880,900
Guaranteed
617,440
OP
877,000 barrels of foreign
$2,043,941
$44,004,297
gations not subject to debt limitation
tPrlme Western Zinc sold
$1,866,073
20,876,603
Total gross
j,,iv
andfoodsZ
357,151
194,240
-July 22
Monthly Investment Plan.
;
Outstanding—
y
-July
foods
343,811
.
345,950
t
Qc
OF
r
1,185,966
U.
juiv
Ail commodities
other than farm
206,070
363,308
TREASURY MARKET TRANSACTIONS IN DI¬
RECT; AND GUARANTEED SECURITIES
sama—
Meats
94,463
269,856
—
stocks—
preferred stock
Ratio of income to fixed charges
,
"ZZ
357,498
,103,394
v
1,195,675
shares.
All commodity
Farm products
Processed
institutions
On
1,177,427
1,082,638
294,410
DEPT.
115,540
345,058
,-i—
deductions-
Net
$61,855,993
902,816
July
S.
$797,509
108,334
385,076
$2,022,283
banks
lending
Income after
Net
U.
$704,551
105.521
Income available for fixed charges—
On
July
327.5
278,217
savings
Dividend appropriations:
—bJuly
—
$786,767
—
-
$49,733,718
6.8
326.0
BANK
income
Total income
-
1,999,929
1,078,923
21 £
omitted):
Other
1,669,609
2,847,560
601,890
;
6.7
-
NON-FARM
LOAN
(000's
Miscellaneous deductions from income—
568,990
-July
WHOLESALE PRICES, NEW
SERIES
LABOR — (1947-49 =
100):
Commodity Group-
25.7.
.
327.1
fyYS. (Interstate Commerce Commission)—
ikonth of March:
railway operating income—
u
:—
f
1,381,840
2,278,570
-July
July
-
51.1
31.2
6.8
Net
524,059
2,693,604
7.8
51.4
26.1
.
Total
78,050
446,009
430,450
979,005
7,7
SELECTED INCOME ITEMS OF U. S. CLASS I
480,800
1,758,986
2,189,436
$45,019,661
Other sales
Total sales
IN
HOME
April
Depreciation (way & structures
Federal income taxes
TOTAL ROUND-LOT STOCK
SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK
TRANSACTIONS
FOR ACCOUNT OF
MEMBERS (SHARES):
Total round-iot
Short sales
—
of
33.0
39:5
-
218,450
573,064
132,430
478,576
Round-lot purchases by dealersNumber
S,
.
■'f
31.8
215,360
—_juiv
Other sales
income™
»
in¬
-
17,700
278,770
y
i.
U.
Miscellaneous
Tlll„
Round-lot sales by dealers—
Number of shares—Total
sales
Short sales
special
62.7
40.6
'
51.6
^
for
Insurance companies
Banks and trust companies
EXCHANGE COMMISSION:
purchases)—t
~
payments
contribution
102.4
34.3
31.8
_____
dividends-
Individuals
1,282,590
400,520
1,296,400
1,696,920
(customers'
other sales
and
FINANCING
OF
'
7.7
income
income
238.3
t 63.4
34.4
-
•
94.7
63.5
Savings and loan associations
,
Odd-lot purchases
by dealers (customers' sales)—
Number of orders—customers'
total sales____
Customers' short sales
rental
nonagricultural
ESTATE
?
-
*.
$343.2
'■-if 233.2
95.1
.
—
277,720
Tnlv
—
and
interest
employees'
1,748,010
1,001,640
_july
SECURITIES
233.9
—
surance
Total
J$343.1
$344.3
—
40.9
transfer
1,322,770
STOCK TRANSACTIONS FOR ODD-LOT
ACCOUNT OF ODDLOT DEALERS AND
SPECIALISTS ON N. Y. STOCK
^^,X^?AN,GE
£29,151,000
'
AREAS
juiy
sales
£18,152,000
COMMERCE)—Month
income
labor
'BOARD—Month
July
Odd-lot sales by dealers
Number of shares
Dollar value
£39,365,000
UNITED STATES
L__
Government
-
Other sales
OF
Other
110.27
V
July
for account of members—
—
145
BRITAIN
indastries
f
464,699
191,439
juiy
juiy
.
Total
Service
87
451,865
262,002
juiv
-
sales
Total
GREAT
Wage and salary receipts, total—;
Commodity, producing industries
Distributing industries
1
1'
.—
Other sales
Total
IN
of April (in billions):
personal income
4.21
,
juiy
July
Total purchases
145
127
1
LTD.—Month of June___
Total
4.75
4.33
{
4.26
4.56
4.33
:'r
July
July
floor—
the
(DEPARTMENT
4.02
3.81
MEM-
______—
Other transactions initiated
Total
4.29
3.70 '
3.87
20,300
;
ISSUES
BANK
PERSONAL INCOME IN THE
3.67
•
July
sales
CAPITAL
MIDLAND
•
July 19
July 19
BEES, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which
registered—
Total purchases
July
Short sales
July
Other sales
Total
NEW
92.50
July 25
FOR
128
130
June:
of
..
—
Proprietors
100
TRANSACTIONS
—
92.93
OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949
190
89.92
July 19
July 19
—
240
118
INDUSTRIAL PRODUCTION—BOARD OF GOV¬
ERNORS
OF
THE
FEDERAL
RESERVE
'
3.08
4.06
July 29
at end of period
174
117
.
„
July 29
activity
2.599
177
Unadjusted
98.57
—-July 29
—
62.335
31,676
2,704
130
SVSTEM—1947-49—JOO—Month
Seasonally adjusted
87.99
July29
MOODY'S COMMODITY INDEX
118.548
74,487
28,338
*
!___
102.13
95.92
--—July 29
Group
40.135
28,068
•
I——_
(tons)
95.47
3.71
;
-
123,920
._
_______
98.09
4.10
—
6,750
15.497
52,218
74,889
100.81
■> 3.86
Unfilled orders
7,332
14,549
L
91.77
*
NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons)
Production (tons)
1,660.553
.t—_■
.
(bushels)—
96.23
July 29
u
18.053
.
95.47
-.
July 29
"""~ZZ~~ZZZZZ_Z
9,047
32,209
1,688,559
-
(tons).
——
AVERAGES:
Average corporate
9,574
86.48
91.19
,
4,408
30,104
10,459
94.17
July 29
,
6,790
3,904
27,145
V
17,542
93.36
July 29
Group
Group™.
Utilities Group
3,904
35,449
94.56
Railroad
f
■
4.780
26,901
98.25
Group
3,270
4,780
—;
100.65
Raflroad~Group~ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ—IIIIJuly 29
Public Utilities
4,832
15,^71
2,360
(tons)
(3
11,313
69,092.
22,0(57
„
(bushels)
Cherries
•
18,269
1
.___
crop
'
5,001
bags)_
(bushels)
Apricots
95.250c
121.402
-
"
_
63,339
"22,160 *'
< tons)
(pounds)
Peaches
Pears
94.500c
24.000c
10.500c
io.oooc
10.500c
10.000c
-
26,528
25,754
43,130
114,246 *
summer
24.000c
10.500c
23
23
435,695
31,804
10,607
pound
Hops (pounds)
Apples, commercial
13.800c
July 29
Public
423,175
1.
'•
Sugarcane for sugar and seed
Sugar beets (tons)
14.000c
10.800c
200.221
1,308.360
-
46.977
f—_
.
39,680
198,778
1,255,244
.,
summer
Late
26.700c
10.800c
23
July 23
Aaa
Industrials
,.
bags)
timothy
spring
spring
Late
.
28.525c
-
July
July
July
July
Louis) at
YIELD DAILY
U. S. Government Bonds
14,985
•
-
.
and
947.102
31,386
lespedeza (tons)
;
dry edible (tons)—
Winter
$53.83
July 23
MOODY'S BOND
■
■
v
dry field (bags)
;
Potatoes (hundredweight)—j
$66.40
July 23
corporate
Industrials
239.901
Peas,
5.967c
$66.49
July 23
MOODY'S BOND PRICES DAILY AVERAGES:
U. 8. Government Bonds
Average
707.201
201,869
;
Sweetpotatoes ' (hundredweight)
at
York)
1.270,565
1,068,696
___.
pound
3,402.832
1,343,490
(tons).__
alfalfa (tons)
Tobacco
at
(New
3,311,249
1,129,727
213,763
—_____
(tons)
(Cleaned)
228
$66.49
July 22
v
«
'
_
wild
Hay,
177,700,000
$978,925,090
REPORTING
thousands):
(bushels)
clover
Early
(primary pig. 99% ) at
tin
all
Hay,
108
12,319,000
—July 22
(in
(bushels)
(100
Hay,
&
—
1
(bushels)....
Hay,
h
264
CROP
—
-
DEPT. OF AGRICULTURE—
spring (bushels)___
(bushels)
(bushels) t _i
_:-™
Hay,
July 24
au—
247,295,000
___$!,351,506,000 $1,440,600,000
all
Flaxseed
(E. & M. J. QUOTATIONS):
Louis)
Aluminum
Rye
PRICES:
—
247,806,000
between
________
(bushels)
Rice
copper—
Domestic refinery
Export refinery at
(New York) at
(St.
46,238,000
July 19
—
Lead
Lead
233,782,000
122,862,000
Oats,
Beans
(per lb.)
Pig iron (per gross ton)
Scrap steel (per gross ton)
Electrolytic
all
Barley
280,020,000
233,969,000
July 2G
—
kwh.)
Finished steel
METAL PRICES
356,831,000
183,379,000
130,371,000
July 19
__
AGE
$393,636,000
113,616,000
126,297,000
313,750,000
INDEX—FEDERAL RESERVE
AVERAGE
jfcJFAILURES (COMMERCIAL
BRADSTREET, INC.
IRON
77,863,000
$483,128,000
INSTITUTE:
Electric output (in 000
15,111,000
43,264,000
21,459,000
Other
$733,043,000
419,293,000
July 19
(tons)—
SALES
SYSTEM—1947-49
EDISON ELECTRIC
S.
(bushels)
(bushels)
■i.-."' All spring
(bushels)
OF MINES):
lignite (tons)
an thru cite
DEPARTMENT
224,914,000
July 24
,
(U.
152,643,000
302,777,000
—
municipal
Federal
COAL OUTPUT
$455,420,000
July 24
—
construction
State
U.
Durum
construction—.
129,732,000
shipped
______
of July
as
and
Winter
ENGINEERING
construction
S.
Private
______
Wheat,
'
NEWS-RECORD:
Total
355,238,000
_____
PRODUCTION
Crop
Corn,
.
loaded (number of cars)
501,593,000
15,709,000
121,327,000
countries
BOARD
ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight received from connections (no.
$219,798,000
396,429,000
credits
goods stored
foreign
Total
Distillate fuel
(bbls.)
$290,197,000
20,043,000
305,206,000
178,267,000
Residual
fuel
$282,070,000
374,988,000
Z
~_Z
;
7,539,000
179,707,000
on
Ago
Z—ZZZZ-Z
exchange
Based
Year
Month
BANK
.
warehouse
Dollar
1,717,000
Previous
OUT¬
s
shipments
Domestic
12,048,000
6,891,000
lines—
July 18
of that dates
are as
30:
'
Domestic
6,947,215
7.749,000
July 18
Stocks at refineries, bulk terminals, in transit, in pipe
Finished and unfinished gasoline (bbls.) at
ACCEPTANCES
NEW YORK—As of June
Imports
Exports
-July 18
July 18
*
DOLLAR
STANDING—FEDERAL RESERVE
26,701,000
1,851,000
—
(bbls.)
(bbls.)
output
pil output
fuel
Residual
.
of quotations,
cases
either for tlte
are
Month
BANKERS'
of
gallons each)—
in
or,
Ago
Ago
AMERICAN PETROLEUM INSTITUTE:
42
production and other figures for th*
cover
Latest
"57.3
Aug.
Thursday, July 31, 195|
.
Year
£58.8
tons)
.
.
Dates shown in first column
that date,
on
July 18
Equivalent to—
Steel ingots and castings
Crude
'
The Commercial and Financial Chronicle
^__
2.638Ti
$269,619,406
2.658^
$270,634,309
_
5,589,952
$265,044.35?
2.730'*
]
'
Volume 188
Number 5764
.
w
The Commercial and Financial Chronicle
..
.
.
:'T
-j. -Yr, Hi .Sfcl-fc
(439)
Continued from
page
about
36% of National Investors'
17,337 shareholders are using the
37
fund's
Mutual Funds
•
to
faVor
equities
of
companies
whose business seemed
be
resistant
likely to
-
:
;
;
Dynamics
S
■
'
Corporation; 18,00p
shares of Colorado Interstate Gas
to
general cyclical Company; and 7,500 shares Of Olih
influences and to produce favor¬ i Mathieson Chemical Corporation.
able opportunities for long-term Principal
decreases in holdings
growth.
Consideration also was were 36,100 shares Of
Columbus
given
to
common
stocks
that and Southern Ohio Electric Com¬
seemed to be depressed in relation
pany,
0 longer term prospects and to
provide an opportunity for par-
Lead
icipation in cyclical business
covery."
■
.
re¬
New holdings added to the port-
olio
orporation; 16,900 American
Company; and 13,400 Brisol-Myers Company. Holdings inhide
Continental Baking
by 26,700 shares; Suneam C o r p o r a t i o n, by 20,800
hares; Winn-Dixie Stores, Inc.,
were
25,000
ipe
-
9,400
shares;
Foundry
&
shares;
United
States
by
Company,
Boeing
Airplane
mpany, by 17,000 shares; United
ircraft
Corporation, by 12,000
hares; At tan-tic City Electric
mpany, by 5,000 shares; Houson Lightings & Power Company,
y
1,100 shares and American
ores Company, by 1,000 shares.
Investment positions were elimthrough the sale of 103,000
nated
hares
for
building up their holdings by
plowing back dividends and dis¬
tributions into additional shares
and
making regular or occasional
purchases with new funds. Shares
worth
a
covered
counts
total of
the
by
now
$17,529,181
in
6,216
were
Plan
ac¬
use.
New investment positions were
10,000 shares; Hooker Chemical,
by 7,000 shares; Oklahoma Gas &
Electric, by 6,500 shares; Rohr
Aircraft, by 5,200 shares; Domin¬
ion Stores, Ltd., by 4,525
shares;
American Electric Power, by 4,300
shares; Middle South Utilities, by
2,500 shares, and Atlantic City
Electric, by 1,200 shares. The
fund's position in General Dynam¬
ics was eliminated by the sale of
10,000 shares. Decreases in port¬
folio holdings were 11,100 shares
of Republic Natural Gas and
7,300
Net Asset Value
Per
of
Outboard
Marine
Cor-
share
value
asset
of
exchange of 15,000 shares of Sea¬ shares of National Lead.
board
Oil
Texas
for
15,000
Company.
creased
Holdings
United
were
shares
of
the
Board
and
President.
mid-year asset value
with $9.19 at March 31.
Net
assets
of
Mr.
Calit—
pany,
Miss
300
Montgomery
Calderhead
Street,
formerly
was
with Stephenson, Leydecker & Co.
DIVIDEND NOTICES
-
Q3G3O0K)
Aircraft, by
AMERICAN ELECTRIC
A cash dividend of
Ninety cents
(901) per share on the outstanding
capital stock ofthisCorporation has
Up
POWER COMPANY, Im.
Na¬
—
—re
■
,HC-
,^HU,ACHWH«
Dividend No. I*4
A.
114
j
..
Dwidend
No^
■
of Fifty
Common
been declared, payable Sept. 2,1958
stockholders of record
to
194th Consecutive Cosh Dividend
Common Stock
on
r
\ centi
($.40)
share
per
the
BIRNY MASON, JR.
Vice-President and Secretary
A regular quarterly dividend of forty
t
at
close of business August 1,1958.
on
die
UNION CARBIDE CORPORATION
Common capital stock of the Company
issued and outstanding in the hands of the
public has been declared payable Sep*
The
temper 10,1958, to the holders of record
at
1958'
compared
M
B.
/
Brooklvn,
the
earlier.'■
year
FRANCISCO,
Ethel M. Calderhead has
Joined
the staff of First California Com¬
DIVIDEND NOTICES
DIVIDEND NOTICES
22-year old
mutual fund stood at $73,215,288
at June 30, up $11,281,761 from
the
$61,933,527 reported a half
ration; 25,000 shares of General
(Special to The Fimrncial ChaonicueJ
SAN
in¬
tional Investors Corp., the growth
stock fund of the Broad Street
Group of mutual funds, increased
to $10.07 at June 30, up 16.8%
from «the $8.62 at the start of the
year, it was reported- today by
Francis R. Randolph, Chairman of
With First California
,
established through the purchase
of 5,000 shares of Polaroid and the
National Investors
ompany,
y
Plan
50,000 Hooker Chemical
were
reased
11,800 shares of National
Company, 10,800 shares of
Socony Mobil Oil Company, Inc.,
4,000 shares of Brooklyn ..Union
Gas Company and 1,500 shares of
Schering Corporation.
Accumulation
the close of business August 11,1958.
President
LOEB,
N. Y.
W.J. ROSE, Secretory
Notional
Jbly 30,1958.
Distillers
and
DIVIDEND NOTICE
>",'C:\5;.'
Randolph brought out that
Chemical
aDAMs
DIVIDEND NOTICES
Corporation
CO Ml'A NY
DIVIDEND
Common Stock,
POWER COMPANV INC.
STOCK EXCHANGE
A
Preferred Dividend No. 210
S RECTOR ST..
Copy of the
Semi-Annuai Report
Common Dividend No. 200
oh
will be mailed upon request
quarterly dividend of 75£ per share (13^%) on the
Preferred Stock for the quarter ending September 30,1958
and a dividend of 30£ per share on the Common Stock
have been declared. Both dividends are payable October
the
Common
Stock
■
«
.
Sep¬
on
August IV* 1958.
The transfer books wilt not dose*
PAUL G JAMESON
i
C Treaswrer
July 24,1*58. ' °-j?'
for
payment September 10. 1958
the shareholders of record
at
the close of business August
11, 1958.
48 Wall Street
mwesm ce*aewme»
H. W. Balgooyen,
Room 912
5, 1958. The
New York 5, N.
Executive Vice President
and
Y.
TENNESSEE
Secretary
July 25, 1958.
CORPORATION
Louis T. Hindenlang
July 23,1958
on
to
A
1, 1958 to holders of record September
stock transfer books will remain open.
of record
NEW YORK 6. N. Yi
Company, at a meeting held
this day, declared a quarterly
dividend of 25 cents per share
30, 1958
payable
tember 2, 1958, tn stockholders
The Board of Directors of the
June
quarterly dividend of
a
25c P«r share on the outstanding
AMERICAN A FOREIGN
LISTED ON THE NEW YORK
COMPANY
>
clared
INVESTMENT COMPANY
BANK NOTE
NOTICE
The Board of Directors hat de¬
A CLOSED-END DIVERSIFIED
AMERICAN
Secretary and Treasurer
July 22,1958
dividend of
A
fifty'five
share was
declared payable September
24, 1958, to stockholders of
(55c)
GOODALL
RUBBER
COMPANY
cents
record
COMMON
at
per
the close of busi'
September 11, 1958.
ness
DIVIDEND
John G. Grbbnbuaoh
Treasurer.
Y.
The Board of Directors has declared a quarterly dividend of
6l Broadway
New York 6,
$.125 per share on all Common Stock outstanding payable
August 15,1958 to stockholders of record at the close of
business August 1,1958.
H. G. DUSCH
July 23, 1958
Secretary & Treasurer
i
••••
.»*
.rf
75th
REGULAR DIVIDEND
RICHFIELD OIL CORPORATION
«
♦
| The directors, on July 15, declared
| o regular quarterly dividend (No.
75) of thirty-three (33) cents per
shore
dividend notice
*
dividend of seventy-five cents
per share
212th COMMON DIVIDEND
A
regular dividend of One Dollar ($1.00)
been declared upon
Tobacco Company,
to
per
-
share has
e
the Common Stock of The American
payable in cash
stockholders of record
on
September 2, 1958,
at the close of
business August
8, 1958. Checks will be mailed.
July 29, 1958
©a. r. Co.
-
!
regular quarterly
on
Norman F. Simmonds
Secretary
a
•
Harry L. Hilyard
Vice President and Treasurer
LOS ANGELES
its
common
stock, pay¬
Cumulative Preferred Stock,
Series A, at 28ftth cents per shore,
and the
quarterly dividend (No.
13) on the 514 per cent Cumula¬
tive Convertible Second Preferred
'
Stock, Series of 1955, ot 41%th
[
;
cents per shore, each will be poid
on
September 1 to shareholders of
record August 7.
LEWIS LACY, Secretory
July 15, 1958
SUNRAY MID-CONTINENT
Cit (feqtoqr
CALIFORNIA
•
"••••••»#####oooo»*,Ml
September 15 to shareholders
of record August 7. The quarterly
dividend (No. 13) on the 4 'A per
cent
stock of the
Corporation for the third quarter of 1958, payable
Sept.
15, 1958 to stockholders of record Aug. 15, 1958.
♦
on
able
♦
The Board of Directors has declared the
•
39
SUNRAY MDG. TULSA, OKLAHOMA
40
Chronicle
The Commercial and Financial
(440)
Thursday, July 31, 1958
...
BUSINESS BUZZ
•
from the Nation's
>
WASHINGTON, D. C.
may
little
in
saying:
as
that there is
obvious
is
capital
a
of
lines.
The common stock of the
12 trunklines are now selling
the
at
in the dark
selling
were
$3 billion spread over the next
few years.
Of this total about
Need
airliner
about $2.5 million.
The largest jet* transport will
cost more than $6 million.
today
costs
The
question
paramount
to¬
new
coming off the airplane factory
assembly lines, is: Where is the
money coming from to finance
this tremendous equipment rev¬
olution? The answer is not sim¬
.
In
.
Company,
New York
raise.
*
-
tion
Air
*
the
-
of
Vice-President
The
the
Association of
America, Stanley Gewirtz, says
.
Transport
committed
sum
for
After citing
I ion of the four
new
equipment is even more impor¬
tant when it is compared with
the present book value of air¬
earning power
that
lines'
flight equipment totaling
billion dollars.
Air
Transport Association is a trade
organization of the n a t i o n's
scheduled airlines, and is based
in
merce,
decided
let
to
handle our investments
because of your careful analysis of the market, your
cautious method of purchase, and because my wife
likes your dimples!''
you
Utah
Law
airlines
have
jets and
the
The
facts
shrink
its
to
down for
ing
He
quotes
little
will
two
bank
York
investment
The
James
first
P.
will
in
considers
much
funds
was
future
to
Also the
necessary
the
time.
faster and
more
Mail
often.
doubt that the
on
the
econ¬
Thus
far
more
been
-
than
jet
pure
ordered
by
Maps: Full Color raised relief map
of the United States, 21" x 29"—
or
being added to the
must be
cracks.
Mr. Whitlock explained to the
1
that the J-57 type jet
750
use
gallons of
demin-
water
the
crease
the
engine
is
engine
to
necessary
flow
mass
restore
to
in¬
through
some
of
Turbine engine
than piston
more
horsepower
from
high
temperatures. The water will be
is above
when the temperature
20 degrees.
Equipment will be needed for
demineralizing
local
water;
storage must
be
in
stainless
steel, plastic or glass-lined tanks
and pipes.
Turbine
engine
noise
prob¬
Once
(
Therefore, because the structure
airtight, it must be airconditioned or mechanically
ventilated.
"All
ramp personnel must be
enclosed during engine opera¬
tions," he said, "at
a given gate
position and blast fences will be
required to protect the adjacent
gate
positions.
Personnel re¬
quired on the ramp during en¬
gine operation must be pro¬
tected by ear muffs or better."
Meanwhile
the
rising number of air
which
carried
49
airports.
The
plane
exhaust
velocity will have to be reck¬
million
in
1960,
with.
oned
The
also
presents
ard.
engine
intake
There
a
personnel
haz¬
are 110 propellers or
signal to serve as a warn¬
ing. The planes will carry about
visual
a
few
more and
Need Airtight
On the
some
less.
Structure
question of noise, Mr.
Whitlock said the jet sound is
not
harmful
during short or
ever-,
passengers.
million
the
cents;
"Ham¬
Kit," giving
graphic explanation of weather
terms
and aid in predicting
trends,
$1.00;! Exploration of
Space chart, $1.00 — Hammond
Map Company, Maplewood, N.! J.
150 ' tons, as
much
as
compared
Depreciation Problem
George Terborgh—Machinery' &
Allied Products Institute, 1200
18th Street, N. W., Washington,
6, D. C. (paper) $1.00 (quantity
prices on request).
Taxation in Australia—-Vol. IV in
"World Tax Series" by Harvard
Law
School—Little, Brown and
Company, Boston.
U. S. Participation in the U. N.
78
,
larger piston-engine
planes
in operation.
npw
The
sume
early
models
about 2,000
will
con¬
gallons of fuel
hour as compared with 400
gallons for the present large
piston engine planes.-< •
per
portation department, T. Carl
Wedel; said among, other things
that the solution to the airiirie's
New Airport Facilities
In
the symposium
World Bank: What it is,
What it
does, How it works—Pamphlet
in
—International
1965 and 118 million by 1970.
construction
by
;
Foreign. Commerce Committee,
MarVin
Senate
Interstate
Whitlock,
Bank
and
for
Re¬
Development,
1818 H
[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"
owns
ton
"
Joins Smith, La Hue
views.]
(Special to The Financial Chronicle)
;
(Special to The Financial Chronicle)
ST.
With Donald C. Sloan
Street, N. W., Washing¬
25, D. C.
son
PAUL, Minn.—Arthur Pear¬
has joined the staff of
La Hue &
Smith,
Co., Pioneer Building,
PORTLAND, Oreg.—Stephen G.
McNeil is with Donald C. Sloan &
Co., Cascade Building.
TRADING MARKETS
American Cement
Botany Mills
Wurlitzer Co. Com.
/Fashion Park
-
Indian Head Mills
United States Envelope*
Morgan Engineering
National Co.
Cormac Photocopy
Corp*
LEANER & CO.
Investment Securities
conducted
;
the
-
Report by the President to the
Congress for the Year 1957 —
Superintendent of Documents,
U. S. Government Printing Of¬
fice,
Washington
25,
D.
C,
(paper) 75 cents.
as
with
tons for the
50
Weather
Tax
Fully loaded at takeoff,
will weigh
j some
world,
mond's
-
1 liners.
lit
glance for leading countries of
a
66
pas¬
will carry
93 million
160 passengers. Some will trans¬
port
Aero¬
an
The CAA says, that the airlines,
1957,
at-the
Civil
nautics Board forecast
in
arise
and all pos¬
passengers
sible
sengers
will
struc¬
must be
various
lems
the
inside
ture, it will reverberate readily.
glance facts, figures
state, 50 cents:
a
about each
World Infograph, giving data
clouds that range to 30,000 feet.
Fuel;will amount to 40% of the
total weight of the( new air-
uncertainties."
problems of financing their jet
equipment cdepends' on
their
ability 7 to - increase their egai ty
capital. It is, therefore, a must
An addi¬
prop-jet
are
but the structure
airtight. The sound will
penetrate through the smallest :
passen¬
loading facilities, fuel and
Equipment cur¬
rently used for aviation gasoline
cannot be economically adapted.
Senators
exposure
the is sound,
ger
turbo-jet
175
The cruising altitude of the
planes will be 35,000 feet, top¬
ping • the
high-flying
cirrus
The First National City Bank's
Vice-President in * the
trans¬
in
not
fleet.
bank
eligible borrower has to com¬
pete successfully with industries
and. companies with more im¬
pressive historical records and
less
reckoned
minutes.
have
aircraft
greater im¬
service its obligations.
half
the scheduled airlines.
and
than
collateral
the
carrier's demonstrated ability to
the
than
American-made
aircraft
portance
earn
will
of this country w ill be sub
255
Mitchell, Vice-Presi¬
of
world
tional
officials
"A commercial
ade¬
in the jet age.
seems no
1 stanlial.
dent in charge of Aviation de¬
partment at Chase Manhattan
who said:
the
impact of the jets
omy
in the
quoted
be
half
move
There
>
authorities.
one
new
water storage.
necessary
more
size
but
ocean
Senate Committee document two
New
be
can
Shippers
will have
their goods
moved
across the country or across the
sit
talk about borrow¬
a
money.
are
present
Time
t
airlines
1961
craft
new
the banks are in the business of
the
by
quately financed.
In tracing the economics, the
ATA official pointed out that
lending money. Therefore, he
chid, let's see what their reac¬
that
jets will,
basic aircraft, providing
the
hours,
when
These will include
thrust suffers
that
and
;
estimated
States
Offices, etc.—U. S. Department
Interior, Bureau of Mines,
Washington, D. C. (paper).
but
is
irritating and some would con¬
sider it painful.
Minimum
terminal structure will deflect
necessarily call for a series
changes in airport facilities.
of
the thrust loss.
be
tration.
is
new
intermittent
Airlines,
airliners
will
the
ate School of Business Adminis¬
tion
points out that the
The
:
—
of
etc.
American
of
will
v r:
United
the
from
giving at
dent
30% of all traffic will be flying
the Harvard University Gradu¬
Reaction of Bankers
have
By the end of next year the
jet
on
School,
airlines
National Impact
on
former lecturer of the Univer¬
of
.1
costs.
planning has printed a 100page report, including a section
by Mr. Gewirtz on airline eco¬
nomics in the new age.
He is
sity
the
with ever-mounting
been faced
age
a
from
from
60
Hudson
Street,
13, N. Y.—on request.
$4.95; U. S. Infograph, a gadget
eralized water for each takeoff.
Committee
developments
financing
securities or
of
Meantime,
symposium of prog¬
a
and
sale
loans will be all but impossible.
Interstate and Foreign Com¬
ress
face the fact
or
attractive
the
in the District of Columbia.
Senate
men,
Senate report that
airlines must increase their
the
one-half
The
the
In
\ said
opinMr. Gerwitz
the expert
Depart¬
Government Foreign Service
"We've
But for common
scription there must be a real
promise of growth in earning
power for the equity
.
."
Advertising
.Monthly inventory of informa¬
stocks to receive successful sub¬
Progress Report Issued
—
Promotion
International Coal Trade
.
equity capital.
Advertising
Sales
Telegrams in
ment, Western Union Telegraph
opinion the financing of
the airline jet should be done
through substantial amounts of
of money to
Reproduce
and
my
ple, because $2.5 billion Is a lot
.
to
Your
Administration, but retains a
limited partnership in his old
investment firm, Hayden, Stone
and Co. Said Mr. Tully: "Much
as I love aviation, as an inves¬
tor, I wouldn't touch airline se¬
curities with a 10-foot pole.
as
East 36th Street, New York
16, N. Y.—-$1.00.
IIow
Business
of
School
Graduate
the time for the initial
super
speed
craft
start
day,
m
report on financing
was
Arthur H. Tully, Jr., who is as¬
sociated
with the
Harvard
air
the
in
own
12
quoted
person
the
-
of borrower on,
premises under cus¬
tody of a warehouse company —
American Bankers Association,
;
fourth
inventories
their
Equity Capital
The
security of the pledge of
receipts representing
the
at
155% of their book value."
billion will represent new
aircraft. Twenty years ago the
most modern transport could be
bought for $125,000. The largest
$2.5
.
Survey of
warehouse
book value while
days of the industry
—1947—they
—
bankers
64% of their
investment of about
commercial
Warehousing
experience and practice among
in making loans upon
the air¬
from
flight
The scheduled airlines have a
$2 per year...
per copy;
..
Field
"It
Superin¬
Govern-
.ment Printing Office, Washing¬
ton 25, D. C. (paper) 20 cents
for counsel.
don
—
tendent of Documents,
Kidder, Peabody & Co.
He quoted Mr. Gor¬
of
ner
Economic Advisers
Gordon, senior part¬
H.
—
Prepared for the Joint Economic
Committee by the Council of
said he went to
Gewirtz
Mr.
Albert
hours, and American Airlines
may have inaugurated its
maiden jet flights between New
York and Los Angeles in about
four hours and 28 minutes.
committed
Economic Indicators July 1958
to fi¬
jet
age.
than six
more
roll up
power
the transition into the
nance
lantic Ocean from New York to
London
earning
strong
a
Pan American Air¬
be spanning the At¬
year
ways
A l/li
that the airline industry
The
—
J
/lltU
Capital
jet commercial air age, which is
going to create a mighty impact
in air travel in this country, is
almost here. Before the end of
this
A
Interpretation*
Behind-the
•
•
10 Post Office
and
Vice-Presi-
Square, Boston 9, Mass.
Telephone
Teletype
HUbbard 2-1990
BS 60
@FedFRASER